Dover(US:DOV)2025-02-14 21:24Goodwill and Acquisitions - The company's consolidated goodwill balance was $4.906 billion as of December 31, 2024[309]. - Management performs an annual goodwill impairment test in the fourth quarter, assessing fair value against carrying amounts[309]. - Significant assumptions in the fair value analysis include estimated future cash flows, revenue growth rates, EBITDA margins, and discount rates[309]. - No impairment of goodwill was required for the years ended December 31, 2024, 2023, or 2022, indicating stable asset valuations[339]. - The Company uses an income-based valuation method for goodwill impairment testing, with no impairment losses recognized for the years ended December 31, 2024, 2023, or 2022[340]. - The Company recorded goodwill of $187,923 and intangible assets of $194,100 from the acquisition of Marshall Excelsior Company, enhancing flow control capabilities[387]. - The Company recorded goodwill of $25,132 and intangible assets of $26,309 from the acquisition of Transchem Group, expanding chemical product offerings[389]. - The company acquired eight businesses in 2024 for a total consideration of $674,005, enhancing operations in Clean Energy & Fueling, Engineered Products, Imaging & Identification, and Pumps and Process Solutions segments[386]. - The company recorded measurement period adjustments in 2024, increasing goodwill by $227 related to the FW Murphy acquisition[399]. - Total goodwill for all 2023 acquisitions amounted to $227,761, with $224,771 being deductible for income tax purposes[403]. Financial Performance - Revenue for 2024 reached $7,745,909 thousand, a slight increase of 0.8% compared to $7,684,476 thousand in 2023[314]. - Gross profit improved to $2,958,621 thousand in 2024, up 3.2% from $2,867,544 thousand in 2023[314]. - Net earnings surged to $2,697,126 thousand in 2024, a significant increase of 154.1% from $1,056,828 thousand in 2023[316]. - Earnings per share from continuing operations increased to $10.16 (basic) in 2024, compared to $6.75 in 2023, reflecting a growth of 50.7%[314]. - Comprehensive earnings for 2024 were $2,607,216 thousand, compared to $1,085,185 thousand in 2023, indicating a growth of 140.0%[316]. - The company reported a gain on dispositions of $597,798 thousand in 2024, which was not present in 2023[314]. Cash Flow and Assets - Total current assets rose to $4,484,497 thousand in 2024, up from $3,390,235 thousand in 2023, marking a 32.3% increase[318]. - Cash and cash equivalents significantly increased to $1,844,877 thousand in 2024, compared to $398,561 thousand in 2023, representing a growth of 362.5%[318]. - Total assets reached $12,509,160 thousand in 2024, an increase of 10.2% from $11,348,513 thousand in 2023[318]. - Long-term debt decreased to $2,529,346 thousand in 2024 from $2,991,759 thousand in 2023, a reduction of 15.4%[318]. - Cash provided by operating activities for 2024 was $1,087,833, a decrease from $1,219,546 in 2023[322]. - The company reported a net cash used in investing activities of $26,983 in 2024, a significant improvement from $717,715 in 2023[322]. - Total cash and cash equivalents at the end of 2024 were $1,844,877, up from $415,861 in 2023[322]. Taxation - The total income tax expense for 2024 was $357,048, significantly higher than $179,136 in 2023[473]. - The effective tax rate for 2024 was 20.3%, an increase from 16.0% in 2023[475]. - The company recorded a net deferred tax liability of $235,634 as of December 31, 2024[475]. - The total gross deferred tax assets were $542,652, with a valuation allowance of $198,082[475]. - The company had $263,742 of deferred tax assets related to non-U.S. tax loss carryforwards as of December 31, 2024[477]. Internal Controls and Audit - The effectiveness of internal control over financial reporting was assessed as effective as of December 31, 2024[297]. - The company maintained effective internal control over financial reporting based on COSO criteria[302]. - The audit of the consolidated financial statements was conducted in accordance with PCAOB standards[304]. Market Risks and Forward-Looking Statements - Risks affecting forward-looking statements include economic conditions, supply chain constraints, and competitive pressures[7]. - The company has no obligation to publicly update forward-looking statements except as required by law[7]. - The report includes a comprehensive analysis of market risks related to financial instruments[289]. Research and Development - Research and development costs amounted to $149,601 in 2024, $139,058 in 2023, and $151,351 in 2022, representing 1.9% of revenue in 2024 and 2022, and 1.8% in 2023[358]. Other Financial Metrics - The allowance for credit losses decreased to $28,794 in 2024 from $30,679 in 2023, with a provision for expected credit losses of $5,329[432]. - The company incurred restructuring expenses totaling $69,810 thousand in 2024, significantly higher than the $49,901 thousand recorded in 2023, marking an increase of approximately 39.9%[447]. - The total long-term debt decreased to $2,928,757 thousand as of December 31, 2024, from $2,991,759 thousand in 2023, a reduction of approximately 2.1%[452]. - The interest coverage ratio of consolidated EBITDA to consolidated net interest expense was 42.5 to 1 as of December 31, 2024, indicating strong financial health and compliance with covenants[456].