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SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended
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Dec. 31, 2022
SIGNIFICANT ACCOUNTING POLICIES |
Summarized activity in the allowance for doubtful accounts | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(millions) | ​ | 2022 |  | 2021 |  | 2020
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Beginning balance | ​ | ​ | $52.8 | ​ | ​ | ​ | $68.4 | ​ | ​ | ​ | $38.8
Adoption of new standard | ​ | ​ | - | ​ | ​ | ​ | - | ​ | ​ | ​ | 4.3
Bad debt expense | ​ |  | 38.1 | ​ | ​ |  | 15.0 | ​ | ​ |  | 57.7
Write-offs | ​ |  | (21.1) | ​ | ​ |  | (27.4) | ​ | ​ |  | (31.6)
Other (a) | ​ |  | 2.1 | ​ | ​ |  | (3.2) | ​ | ​ |  | (0.8)
Ending balance | ​ | ​ | $71.9 | ​ | ​ | ​ | $52.8 | ​ | ​ | ​ | $68.4
​
(a) | Other amounts are primarily the effects of changes in currency translations and acquired balances.
​
Changes in the carrying amount of goodwill | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Global | ​ | Global | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Global | ​ | Institutional | ​ | Healthcare & | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(millions) |  | Industrial |  | & Specialty |  | Life Sciences | ​ | Other |  | Total | ​ |
December 31, 2020 | ​ | ​ | $4,287.9 | ​ | ​ | $564.1 | ​ | ​ | $909.8 | ​ | ​ | $245.1 | ​ | ​ | $6,006.9 | ​ | ​
Current year business combinations (a) | ​ |  | 6.9 | ​ | ​ | 17.2 | ​ | ​ | 2,123.2 | ​ | ​ | - | ​ | ​ | 2,147.3 | ​ | ​
Prior year business combinations (b) | ​ | ​ | (0.9) | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (0.9) | ​ | ​
Effect of foreign currency translation | ​ |  | (23.8) | ​ | ​ | (4.8) | ​ | ​ | (58.8) | ​ | ​ | (2.0) | ​ | ​ | (89.4) | ​ | ​
December 31, 2021 | ​ | ​ | $4,270.1 | ​ | ​ | $576.5 | ​ | ​ | $2,974.2 | ​ | ​ | $243.1 | ​ | ​ | $8,063.9 | ​ | ​
Prior year business combinations (b) | ​ | ​ | 0.4 | ​ | ​ | - | ​ | ​ | 253.4 | ​ | ​ | - | ​ | ​ | 253.8 | ​ | ​
Effect of foreign currency translation | ​ | ​ | (188.7) | ​ | ​ | (8.9) | ​ | ​ | (102.2) | ​ | ​ | (5.2) | ​ | ​ | (305.0) | ​ | ​
December 31, 2022 | ​ | ​ | $4,081.8 | ​ | ​ | $567.6 | ​ | ​ | $3,125.4 | ​ | ​ | $237.9 | ​ | ​ | $8,012.7 | ​ | ​
​
(a) | Represents goodwill associated with current year acquistions. For 2021, approximately $2,209 million of goodwill related to businesses acquired is expected to be tax deductible related to the acquisitions of Purolite and National Wiper Alliance, Inc. (refer to Footnote 4 for additional information).
(b) | 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, 2022 were as follows: ​ (years)
​ | ​ | ​
Customer relationships |  | 15
Patents |  | 14
Trademarks |  | 13
Other technology |  | 12
​
Future estimated amortization expenses | ​
​ | ​ | ​ | ​
(millions) | ​ | ​ | ​
2020 | ​ | $219 | ​
2021 |  | 239 | ​
2022 |  | 320 |
2023 |  | 299 | ​
2024 |  | 291 | ​
2025 |  | 285 | ​
2026 |  | 271 | ​
2027 |  | 146 | ​
​
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) | ​ | 2022 | ​ | 2021 | ​ | 2020
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income from continuing operations attributable to Ecolab | ​ | ​ | $1,091.7 | ​ | ​ | ​ | $1,129.9 | ​ | ​ | ​ | $967.4
Net loss from discontinued operations, net of tax | ​ | ​ | - | ​ | ​ | ​ | - | ​ | ​ | ​ | (2,172.5)
Net income (loss) attributable to Ecolab | ​ | ​ | $1,091.7 | ​ | ​ | ​ | $1,129.9 | ​ | ​ | ​ | ($1,205.1)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Weighted-average common shares outstanding | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Basic |  |  | 285.2 | ​ | ​ |  | 286.3 | ​ | ​ |  | 287.0
Effect of dilutive stock options and units |  |  | 1.4 | ​ | ​ |  | 2.8 | ​ | ​ | ​ | 3.3
Diluted |  |  | 286.6 | ​ | ​ |  | 289.1 | ​ | ​ |  | 290.3
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Earnings (loss) attributable to Ecolab per common share | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Basic EPS | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Continuing operations | ​ | ​ | $3.83 | ​ | ​ | ​ | $3.95 | ​ | ​ | ​ | $3.37
Discontinued operations | ​ | ​ | $- | ​ | ​ | ​ | $- | ​ | ​ | ​ | ($7.57)
Earnings (loss) attributable to Ecolab | ​ | ​ | $3.83 | ​ | ​ | ​ | $3.95 | ​ | ​ | ​ | ($4.20)
Diluted EPS | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Continuing operations | ​ | ​ | $3.81 | ​ | ​ | ​ | $3.91 | ​ | ​ | ​ | $3.33
Discontinued operations | ​ | ​ | $- | ​ | ​ | ​ | $- | ​ | ​ | ​ | ($7.48)
Earnings (loss) attributable to Ecolab | ​ | ​ | $3.81 | ​ | ​ | ​ | $3.91 | ​ | ​ | ​ | ($4.15)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Anti-dilutive securities excluded from the computation of diluted EPS |  |  | 3.9 | ​ | ​ |  | 1.9 | ​ | ​ |  | 1.9
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
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 | New Accounting Pronouncements ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Standards That Are Not Yet Adopted:
​ |  | ​ |  | ​ |  | Required |  | ​ |
​ | ​ | Date of | ​ | ​ | ​ | Date of | ​ | Effect on the | ​
Standard |  | Issuance | ​ | Description |  | Adoption |  | Financial Statements | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
ASU 2021-08 - Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers | ​ | October 2021 | ​ | Update to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. | ​ | January 1, 2023. | ​ | The Company is currently evaluating any potential future impacts on the Company's financial statements, any such changes would be prospective. | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Standards That Were Adopted:
​ |  | Date of |  | ​ |  | Date of |  | Effect on the
Standard |  | Issuance | ​ | Description |  | Adoption |  | Financial Statements
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
ASU 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ASU 2021-01 - Reference Rate Reform (Topic 848): Scope ASU 2022-06 - Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 | ​ | March 2020 | ​ | Certain LIBOR rates, widely used reference rates for pricing financial products, were 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 the options and expedients expire on December 31, 2024. | ​ | The Company evaluated contracts whose terms previously included references to LIBOR or one of its equivalents and identified two contracts requiring modifications of the interest rate provisions included therein. The Company applied certain of the expedients included in ASC 848 allowing the Company to account for the contract modifications prospectively. There were no financial statement impacts at the time of modification.
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
ASU 2021 -10 - Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance | ​ | November 2021 | ​ | Update to increase the transparency of government assistance including annual disclosure of the types of assistance accounted for under a grant or contribution method of accounting, an entity’s accounting for the assistance, and the effect of the assistance on an entity’s financial statements. | ​ | Annual period beginning January 1, 2022. | ​ | The adoption of this standard did not have a significant impact on the Company's financial statements.
​

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