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SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended
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Dec. 31, 2020
SIGNIFICANT ACCOUNTING POLICIES |
Summarized activity in the allowance for doubtful accounts | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(millions) | ​ | 2020 |  | 2019 |  | 2018
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Beginning balance | ​ | ​ | $55.5 | ​ | ​ | ​ | $52.4 | ​ | ​ | ​ | $64.8
Adoption of new standard | ​ | ​ | 4.3 | ​ | ​ | ​ | - | ​ | ​ | ​ | -
Bad debt expense (a) | ​ |  | 57.7 | ​ | ​ |  | 21.5 | ​ | ​ |  | 13.7
Write-offs | ​ |  | (31.6) | ​ | ​ |  | (19.1) | ​ | ​ |  | (19.7)
Other (b) | ​ |  | (1.6) | ​ | ​ |  | 0.7 | ​ | ​ |  | (6.4)
Ending balance | ​ | ​ | $84.3 | ​ | ​ | ​ | $55.5 | ​ | ​ | ​ | $52.4
​
(a) | B ad debt expense in 2020 reflects the impact of deteriorations and increased uncertainty in the macroeconomic outlook, primarily the Institutional customer base, as a result of the COVID-19 pandemic.
(b) | Other amounts are primarily the effects of changes in currency translations and the impact of allowance for returns and credits.
​
Changes in the carrying amount of goodwill | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Global | ​ | Global | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Global | ​ | Institutional | ​ | Healthcare & | ​ | Global | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(millions) |  | Industrial |  | & Specialty |  | Life Sciences | ​ | Energy | ​ | Other |  | Total | ​ |
December 31, 2018 | ​ | ​ | $2,730.8 | ​ | ​ | $1,015.3 | ​ | ​ | $- | ​ | ​ | $1,442.7 | ​ | ​ | $205.3 | ​ | ​ | $5,394.1 | ​ | ​
Segment change (a) | ​ | ​ | 1,230.8 | ​ | ​ | (597.5) | ​ | ​ | 775.3 | ​ | ​ | (1,442.7) | ​ | ​ | 34.1 | ​ | ​ | - | ​ | ​
December 31, 2018 revised | ​ | ​ | $3,961.6 | ​ | ​ | $417.8 | ​ | ​ | $775.3 | ​ | ​ | $- | ​ | ​ | $239.4 | ​ | ​ | $5,394.1 | ​ | ​
Current year business combinations (b) | ​ |  | - | ​ | ​ | 135.3 | ​ | ​ | 99.0 | ​ | ​ | ​ | ​ | ​ | 0.7 | ​ | ​ | 235.0 | ​ | ​
Prior year business combinations (c) | ​ | ​ | (0.2) | ​ | ​ | - | ​ | ​ | - | ​ | ​ | ​ | ​ | ​ | - | ​ | ​ | (0.2) | ​ | ​
Effect of foreign currency translation | ​ |  | (37.7) | ​ | ​ | (4.9) | ​ | ​ | (14.9) | ​ | ​ | ​ | ​ | ​ | (2.3) | ​ | ​ | (59.8) | ​ | ​
December 31, 2019 | ​ | ​ | $3,923.7 | ​ | ​ | $548.2 | ​ | ​ | $859.4 | ​ | ​ | $- | ​ | ​ | $237.8 | ​ | ​ | $5,569.1 | ​ | ​
Current year business combinations (b) | ​ | ​ | 275.7 | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 275.7 | ​ | ​
Prior year business combinations (c) | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 0.6 | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 0.6 | ​ | ​
Dispositions | ​ | ​ | (47.6) | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (47.6) | ​ | ​
Effect of foreign currency translation | ​ | ​ | 136.1 | ​ | ​ | 15.9 | ​ | ​ | 49.8 | ​ | ​ | - | ​ | ​ | 7.3 | ​ | ​ | 209.1 | ​ | ​
December 31, 2020 | ​ | ​ | $4,287.9 | ​ | ​ | $564.1 | ​ | ​ | $909.8 | ​ | ​ | $- | ​ | ​ | $245.1 | ​ | ​ | $6,006.9 | ​ | ​
​
(a) | Relates to reclassifications made as a result of changes in reportable segments during the first quarter of 2020. The ChampionX business was previously recorded in the Global Energy reportable segment and has been reported as discontinued operations. The goodwill that was previously assigned to the Global Energy reportable segment, which was also an operating segment and reporting unit, was reassigned to ChampionX and the Downstream operating segment, which both became separate reporting units during the first quarter of 2020, based on a relative fair value allocation. The Downstream operating segment is now aggregated into the Global Industrial reportable segment. In addition, the Company established the Global Healthcare & Life Sciences reportable segment during the first quarter of 2020 which is comprised of the Healthcare and Life Sciences operating segments, which were previously included in the Global Institutional and Global Industrial reportable segments, respectively. These were, and continue to be reporting units, therefore goodwill did not need to be reassigned as a result of the changes in segments. The Company also renamed the Global Institutional reportable segment to the Global Institutional & Specialty reportable segment. Refer to Note 19 for further information.
(b) | For 2020, the goodwill related to businesses acquired is not tax deductible. For 2019, $49.4 of the goodwill related to businesses acquired is expected to be tax deductible.
(c) | Represents purchase price allocation adjustments for acquisitions deemed preliminary as of the end of the prior year.
​
Weighted-average useful life by type of asset | ​ The weighted-average useful life by type of amortizable asset at December 31, 2020 is as follows: ​ (years)
​ | ​ | ​
Customer relationships |  | 14
Trademarks |  | 14
Patents |  | 15
Other technology |  | 7
​
Future estimated amortization expenses | ​
​ | ​ | ​ | ​
(millions) | ​ | ​ | ​
2018 | ​ | $ 193 | ​
2019 |  | 206 | ​
2020 |  | 219 |
2021 |  | 223 | ​
2022 |  | 219 | ​
2023 |  | 214 | ​
2024 |  | 207 | ​
2025 |  | 200 | ​
Computations of the basic and diluted EPS | ​ The computations of the basic and diluted earnings attributable to Ecolab per share amounts were as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(millions, except per share) | ​ | 2020 | ​ | 2019 | ​ | 2018
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income from continuing operations attributable to Ecolab | ​ | ​ | $967.4 | ​ | ​ | ​ | $1,425.6 | ​ | ​ | ​ | $1,250.3
Net (loss) income from discontinued operations | ​ | ​ | (2,172.5) | ​ | ​ | ​ | 133.3 | ​ | ​ | ​ | 178.8
Net (loss) income attributable to Ecolab | ​ | ​ | ($1,205.1) | ​ | ​ | ​ | $1,558.9 | ​ | ​ | ​ | $1,429.1
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Weighted-average common shares outstanding | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Basic |  |  | 287.0 | ​ | ​ |  | 288.1 | ​ | ​ |  | 288.6
Effect of dilutive stock options and units |  |  | 3.3 | ​ | ​ |  | 4.4 | ​ | ​ | ​ | 4.2
Diluted |  |  | 290.3 | ​ | ​ |  | 292.5 | ​ | ​ |  | 292.8
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Earnings (loss) attributable to Ecolab per common share | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Basic EPS | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Continuing operations | ​ | ​ | $ 3.37 | ​ | ​ | ​ | $ 4.95 | ​ | ​ | ​ | $ 4.33
Discontinued operations | ​ | ​ | ($ 7.57) | ​ | ​ | ​ | $ 0.46 | ​ | ​ | ​ | $ 0.62
Earnings (loss) attributable to Ecolab | ​ | ​ | ($ 4.20) | ​ | ​ | ​ | $ 5.41 | ​ | ​ | ​ | $ 4.95
Diluted EPS | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Continuing operations | ​ | ​ | $ 3.33 | ​ | ​ | ​ | $ 4.87 | ​ | ​ | ​ | $ 4.27
Discontinued operations | ​ | ​ | ($ 7.48) | ​ | ​ | ​ | $ 0.46 | ​ | ​ | ​ | $ 0.61
Earnings (loss) attributable to Ecolab | ​ | ​ | ($ 4.15) | ​ | ​ | ​ | $ 5.33 | ​ | ​ | ​ | $ 4.88
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Anti-dilutive securities excluded from the computation of diluted EPS |  |  | 1.9 | ​ | ​ |  | 1.1 | ​ | ​ |  | 2.9
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Amounts do not necessarily sum due to rounding. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​
Other significant accounting policies | ​
​ | ​ | ​
Policy | ​ | Note
Fair value measurements |  | 8
Derivatives and hedging transactions |  | 9
Share-based compensation |  | 12
Research and development expenditures | ​ | 15
Legal contingencies |  | 16
Pension and post-retirement benefit plans | ​ | 17
Reportable segments | ​ | 19
​ ​
Schedule of new accounting pronouncements | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Standards that are not yet adopted: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | ​ |  | Required |  | ​ |
​ | ​ | Date of | ​ | ​ | ​ | Date of | ​ | Effect on the | ​
Standard |  | Issuance | ​ | Description |  | Adoption |  | Financial Statements | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes | ​ | December 2019 | ​ | Simplifies the accounting for income taxes by removing certain exceptions to the general principles related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and recognition of deferred tax liabilities for outside basis differences. The new standard also simplifies the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the basis of goodwill. | ​ | January 1, 2021 | ​ | The adoption of this standard will not have a significant impact on the Company's financial statements. | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
ASU 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting | ​ | March 2020 | ​ | LIBOR, a widely used reference rate for pricing financial products is scheduled to be discontinued on December 31, 2021. This standard provides optional expedients and exceptions if certain criteria are met when accounting for contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. | ​ | Application of guidance is optional until December 31, 2022 and varies based on expedient elected. | ​ | The Company has not elected any expedients to date and is currently evaluating any potential future impacts on the Company's financial statements. | ​
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Standards that were adopted: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Date of |  | ​ |  | Date of |  | Effect on the
Standard |  | Issuance | ​ | Description |  | Adoption |  | Financial Statements
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
ASU 2018-15 - Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) | ​ | August 2018 | ​ | Aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments require an entity (customer) in a hosting arrangement that is a service contract to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. | ​ | January 1, 2020 | ​ | The Company adopted the prospective transition method. Adoption of this guidance did not have a material impact on the Company's financial statements.
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
ASU 2018-14 - Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans | ​ | August 2018 | ​ | Modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This includes, but is not limited to, the removal of the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, and the addition of a requirement to disclose the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates. | ​ | January 1, 2020 | ​ | Adoption of the standard did not impact the Company's consolidated balance sheet or income statement. Annual disclosure requirements have been updated to align with the new standard, and changes in disclosure was not material.
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
ASU 2017-04 - Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment | ​ | January 2017 | ​ | Simplifies subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. | ​ | January 1, 2020 | ​ | The new standard changes the manner of how goodwill impairment losses are measured when the carrying amount of a reporting unit exceeds its fair value. Adoption of this standard impacted the financial statements to the extent the carrying amount of any of the Company's reporting units exceeds their fair values during future goodwill assessments.
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Credit Losses ASUs: ASU 2019-11 - Codification Improvements to Topic 326, Financial Instruments - Credit Losses ASU 2019-05 - Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief ASU 2018-19 - Codification Improvements to Topic 326, Financial Instruments - Credit Losses ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ​ |  | Various |  | Addresses the recognition, measurement, presentation and disclosure of credit losses on trade and reinsurance receivables, loans, debt securities, net investments in leases, off-balance-sheet credit exposures and certain other instruments. Amends guidance on reporting credit losses from an incurred model to an expected model for assets held at amortized cost, such as accounts receivable, loans and held-to-maturity debt securities. Additional disclosures will also be required. | ​ | January 1, 2020 |  | The Company adopted the standard for expected credit losses using the modified retrospective approach. The effects of adoption were reflected as a $4.3 million reduction to retained earnings as of January 1, 2020 and did not materially impact the Company's consolidated balance sheet, income statement or cash flows.
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No other new accounting pronouncement issued or effective has had or is expected to have a material impact on the Company’s consolidated financial statements.

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