Sales
$ 5,743
$ 5,912
$ 11,539
$ 11,861
Cost of sales
(2,315)
(2,594)
(4,624)
(4,881)
Gross profit
3,428
3,318
6,915
6,980
Operating costs:
Selling, general and administrative expenses
(1,869)
(1,794)
(3,676)
(3,566)
Research and development expenses
(391)
(361)
(759)
(734)
Operating profit
1,168
1,163
2,480
2,680
Nonoperating income (expense):
Other income (expense), net
(59)
(15)
(95)
9
Interest expense
(65)
(65)
(130)
(131)
Interest income
39
59
99
107
Earnings before income taxes
1,083
1,142
2,354
2,665
Income taxes
(176)
(222)
(359)
(505)
Net earnings from continuing operations
907
920
1,995
2,160
Earnings from discontinued operations, net of income taxes
—
186
—
396
Net earnings
907
1,106
1,995
2,556
Mandatory convertible preferred stock dividends
—
—
—
(21)
Net earnings attributable to common stockholders
$ 907
$ 1,106
$ 1,995
$ 2,535
Net earnings per common share from continuing operations:
Basic
$ 1.23
$ 1.25
$ 2.70
$ 2.92
Diluted
$ 1.22
$ 1.24
$ 2.68
$ 2.89
Net earnings per common share from discontinued operations:
Basic
$ —
$ 0.25
$ —
$ 0.54
Diluted
$ —
$ 0.25
$ —
$ 0.53
Net earnings per common share:
Basic
$ 1.23
$ 1.50
$ 2.70
$ 3.46
Diluted
$ 1.22
$ 1.49
$ 2.68
$ 3.42
Average common stock and common equivalent shares outstanding:
Basic
737.6
737.3
739.1
733.4
Diluted
742.4
744.7
745.5
740.2
Net earnings per common share amounts for the relevant three-month periods do not add to the six-month period amount due to rounding. |
This information is presented for reference only. A complete copy of Danaher's Form 10-Q financial statements is available on the Company's website ( www.danaher.com ).
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Amortization of acquisition-related intangible assets | 0.54 | 0.50 | 1.09 | 1.00 | |||
Fair value net (gains) losses on investments | 0.08 | 0.02 | 0.13 | (0.01) | |||
Acquisition-related items | — | — | 0.03 | — | |||
Impairments | — | 0.06 | — | 0.06 | |||
Tax effect of the above adjustments | (0.11) | (0.11) | (0.23) | (0.19) | |||
Discrete tax adjustments | (0.01) | 0.03 | (0.06) | 0.03 | |||
Rounding | — | (0.01) | (0.01) | — | |||
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| For the six-month period ended June 30, 2023, each of the per share amounts above have been calculated assuming the Mandatory Convertible Preferred Stock ("MCPS") had been converted into shares of common stock prior to their conversion on April 17, 2023. Net earnings from continuing operations per diluted common share for the relevant three-month periods may not add to the year-to-date amounts due to rounding. |
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| Amortization of acquisition-related intangible assets in the following historical periods ($ in millions) (only the pretax amounts set forth below are reflected in the amortization line item above): |
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Pretax | $ 402 | $ 372 | $ 809 | $ 744 | |||
After-tax | 331 | 304 | 667 | 608 |
| Net (gains) losses on the Company's equity and limited partnership investments recorded in the following historical periods ($ in millions) (only the pretax amounts set forth below are reflected in the fair value net (gains) losses on investments line above): |
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Pretax | $ 59 | $ 17 | $ 96 | $ (5) | |||
After-tax | 45 | 13 | 73 | (4) |
| Costs incurred for the fair value adjustment to inventory related to the acquisition of Abcam plc for the six-month period ended June 28, 2024 ($25 million pretax as reported in this line item, $19 million after-tax). |
| Impairment charges related to technology and other assets in the Biotechnology segment recorded in the three and six-month periods ended June 30, 2023 ($42 million pretax as reported in this line item, $32 million after-tax). |
| This line item reflects the aggregate tax effect of all nontax adjustments reflected in the preceding line items of the table. In addition, the footnotes above indicate the after-tax amount of each individual adjustment item. Danaher estimates the tax effect of each adjustment item by applying Danaher's overall estimated effective tax rate to the pretax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. The MCPS dividends are not tax deductible and therefore the tax effect of the adjustments does not include any tax impact of the MCPS dividends. |
| Discrete tax adjustments and other tax-related adjustments for the three-month period ended June 28, 2024, include the impact of net discrete tax benefits of $9 million due principally to excess tax benefits from stock-based compensation. Discrete tax adjustments and other tax-related adjustments for the six-month period ended June 28, 2024, include net discrete tax benefits of $45 million related primarily to excess tax benefits from stock-based compensation, release of reserves for uncertain tax positions due to the expiration of statutes of limitation and changes in estimates associated with prior period uncertain tax positions. Discrete tax adjustments and other tax-related adjustments for the three-month period ended June 30, 2023, include the impact of a net discrete tax loss of $19 million due principally to tax costs related to the separation of the Environmental & Applied Solutions business, tax costs related to legal and operational actions taken to realign certain businesses and changes in estimates associated with prior period uncertain tax positions, partially offset by interest on prior year tax refunds. Discrete tax adjustments and other tax-related adjustments for the six-month period ended June 30, 2023, include the impact of a net discrete tax loss of $19 million due principally to tax costs related to the separation of the Environmental & Applied Solutions business, tax costs related to legal and operational actions taken to realign certain businesses and changes in estimates associated with prior period uncertain tax positions, partially offset by excess tax benefits from stock-based compensation and interest on prior year tax refunds. |
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Average common stock and common equivalent shares outstanding - diluted (GAAP) | 742.4 | 744.7 | 745.5 | 740.2 | |||
Converted shares | — | — | — | 5.1 | |||
Adjusted average common stock and common equivalent shares outstanding - diluted (non-GAAP) | 742.4 | 744.7 | 745.5 | 745.3 |
| The impact of the MCPS calculated under the if-converted method was dilutive for the three-month period ended June 30, 2023, and as such 1.5 million shares underlying the MCPS were included in the calculation of diluted EPS in the three-month period. The impact of the MCPS calculated under the if-converted method was anti-dilutive for the six-month period ended June 30, 2023, and as such, 5.1 million shares underlying the MCPS were excluded from the calculation of diluted EPS and the related MCPS dividends of $21 million were included in the calculation of net earnings for diluted EPS. There were no MCPS dividends declared in the second quarter of 2023 prior to their conversion. As of April 17, 2023, all outstanding shares of the MCPS converted into 8.6 million shares of the Company's common stock. |
| The number of converted shares assumes the conversion of all MCPS and issuance of the underlying shares applying the "if-converted" method of accounting and using the actual conversion rates as of June 30, 2023. |
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Total sales (decline) growth (GAAP) | (3.0) % | (9.0) % | (1.5) % | 1.5 % | |||
Impact of: | |||||||
Acquisitions | (2.0) % | — % | (6.0) % | — % | |||
Currency exchange rates | 1.5 % | 2.0 % | 2.0 % | 1.5 % | |||
Core sales (decline) growth (non-GAAP) | (3.5) % | (7.0) % | (5.5) % | 3.0 % |
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Total sales (decline) growth (GAAP) | (2.5) % | (13.5) % | 0.5 % | 4.0 % | |||
Impact of: | |||||||
Acquisitions/divestitures | (2.0) % | — % | (6.5) % | — % | |||
Currency exchange rates | 1.0 % | 1.5 % | 1.5 % | 1.0 % | |||
Core sales (decline) growth (non-GAAP) | (3.5) % | (12.0) % | (4.5) % | 5.0 % |
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Core sales decline (non-GAAP) | -Low-single digit | -Low-single digit |
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Net cash provided by operating activities from continuing operations (GAAP) | $ 1,417 | $ 1,646 | |||
Total cash used in investing activities from continuing operations (GAAP) | $ (360) | $ (421) | |||
Total cash used in financing activities from continuing operations (GAAP) | $ (5,715) | $ (208) | |||
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Net cash provided by operating activities from continuing operations (GAAP) | $ 1,417 | $ 1,646 | ~ (14.0) % | ||
Less: payments for additions to property, plant & equipment (capital expenditures) from continuing operations (GAAP) | (287) | (329) | |||
Plus: proceeds from sales of property, plant & equipment (capital disposals) from continuing operations (GAAP) | 1 | 2 | |||
Free cash flow from continuing operations (non-GAAP) | $ 1,131 | $ 1,319 | ~ (14.5) % |
We define free cash flow from continuing operations as operating cash flows from continuing operations, less payments for additions to property, plant and equipment from continuing operations ("capital expenditures") plus the proceeds from sales of plant, property and equipment from continuing operations ("capital disposals"). |
Statement Regarding Non-GAAP Measures
Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. Management believes that these measures provide useful information to investors by offering additional ways of viewing Danaher Corporation's ("Danaher" or the "Company") results that, when reconciled to the corresponding GAAP measure, help our investors:
Management uses the non-GAAP measures referenced above to measure the Company's operating and financial performance, and uses core sales and non-GAAP measures similar to Adjusted Diluted Net Earnings Per Common Share from Continuing Operations and the FCF Measure in the Company's executive compensation program.
The items excluded from the non-GAAP measures set forth above have been excluded for the following reasons:
SOURCE Danaher Corporation
COMMENTS
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