Danaher(US:DHR)2025-02-20 21:18Financial Performance - Total sales for 2024 were $23,875 million, a slight decrease of 0.06% compared to $23,890 million in 2023[318]. - Gross profit for 2024 was $14,206 million, up from $14,034 million in 2023, reflecting a gross margin improvement[318]. - Operating profit decreased to $4,863 million in 2024 from $5,202 million in 2023, a decline of 6.5%[318]. - Net earnings from continuing operations for 2024 were $3,899 million, down 7.6% from $4,221 million in 2023[318]. - Basic net earnings per common share from continuing operations were $5.33 in 2024, compared to $5.70 in 2023, a decrease of 6.5%[318]. - Comprehensive income for 2024 was $2,429 million, down from $4,914 million in 2023, reflecting a decline of 50.6%[322]. - Total revenue for the year ended December 31, 2024, was $23.875 billion, with recurring revenue contributing $19.366 billion[384]. - North America generated $10.295 billion in total revenue for 2024, while high-growth markets contributed $6.870 billion[384]. - The unaudited pro forma sales for 2024 and 2023 were $23.933 billion and $24.427 billion, respectively, with net earnings from continuing operations of $3.892 billion and $4.138 billion[370]. - The diluted net earnings per common share from continuing operations for 2024 and 2023 were $5.28 and $5.54, respectively[370]. Assets and Liabilities - As of December 31, 2024, the total assets of the Company were $77,542 million, a decrease from $84,488 million in 2023[315]. - The Company's cash and equivalents decreased to $2,078 million in 2024 from $5,864 million in 2023[315]. - The Company reported total current liabilities of $6,798 million in 2024, down from $8,274 million in 2023, indicating a reduction of approximately 17.9%[315]. - The Company's long-term debt decreased to $15,500 million in 2024 from $16,707 million in 2023, a decline of approximately 7.2%[315]. - The total stockholders' equity decreased to $49,550 million in 2024 from $53,490 million in 2023, a decrease of approximately 7.3%[315]. - As of December 31, 2024, the Company reported total inventories of $2,330 million, a decrease from $2,594 million in 2023[336]. - The Company’s net property, plant, and equipment increased to $4,990 million in 2024 from $4,553 million in 2023[338]. - The Company’s total financing receivables were $141 million and $133 million as of December 31, 2024, and 2023, respectively[335]. - The identifiable assets for the Biotechnology segment decreased from $37.421 billion in 2023 to $34.605 billion in 2024[393]. - As of December 31, 2024, total debt amounted to $16,005 million, a decrease from $18,402 million in 2023, with long-term debt at $15,500 million[429]. Cash Flow and Investments - Total cash provided by operating activities was $6,688 million in 2024, slightly up from $6,490 million in 2023[327]. - Cash used in investing activities from continuing operations was $1,981 million in 2024, significantly lower than $7,048 million in 2023[327]. - The Company made minority investments totaling $331 million, $172 million, and $523 million in equity method investments and non-marketable equity securities in 2024, 2023, and 2022, respectively[339]. - The Company acquired three businesses in 2024 for a total cash consideration of $558 million, recording $305 million of goodwill related to these acquisitions[366]. - On December 6, 2023, the Company acquired Abcam plc for approximately $5.6 billion, generating revenues of about £362 million in 2022, and recorded $3.9 billion of goodwill from this acquisition[367]. - The Company repurchased common stock totaling $5,979 million in 2024, compared to no repurchases in 2023[327]. - During the year ended December 31, 2024, the Company repurchased approximately 20.0 million shares of common stock for approximately $5.2 billion as part of the Completed Repurchase Program[483]. - The New Repurchase Program, approved on July 22, 2024, allows for the repurchase of up to 20 million shares, with 16.5 million shares remaining available as of December 31, 2024[484]. - In January 2025, the Company repurchased 4.5 million shares for approximately $1.1 billion under the New Repurchase Program[484]. Taxation - The provision for income taxes from continuing operations for 2024 was $747 million, compared to $823 million in 2023[396]. - The effective income tax rate for 2024 is 16.1%, a slight decrease from 16.3% in 2023, and significantly lower than 11.4% in 2022[398][400]. - The company made income tax payments of approximately $1.3 billion in 2024, down from $1.8 billion in both 2023 and 2022[399]. - As of December 31, 2024, gross unrecognized tax benefits totaled approximately $1.2 billion, consistent with the previous year[401]. - The company recognized net tax expenses from potential interest and penalties of approximately $40 million in 2024, compared to $32 million in 2023 and $14 million in 2022[401]. - The company expects a potential reduction of unrecognized tax benefits by approximately $305 million within 12 months due to resolution of worldwide tax matters[406]. - Tax benefits from rulings and tax holiday arrangements in Puerto Rico and Singapore amounted to $33 million, $83 million, and $71 million for 2024, 2023, and 2022, respectively[407]. Debt and Financing - The Company replaced its existing $5.0 billion unsecured revolving credit facility with a new facility expiring on August 11, 2028, which includes an expansion option of up to $2.5 billion[430]. - The weighted average annual interest rate for borrowings under the euro-denominated commercial paper programs was 3.3% as of December 31, 2024, with a remaining maturity of approximately 34 days[435]. - The Company had $965 million classified as long-term debt under euro-denominated commercial paper programs, despite being scheduled to mature within one year, due to the intent and ability to refinance[435]. - The Credit Facility requires maintaining a Consolidated Leverage Ratio of 0.65 to 1.00 or less, with no borrowings outstanding as of December 31, 2024[433]. - The Company expects to limit borrowings under the Credit Facility to ensure sufficient capacity to repay outstanding commercial paper as it matures[431]. - Debt discounts, premiums, and related costs totaled $96 million as of December 31, 2024, down from $107 million in 2023[429]. - The Company has unconditionally guaranteed the obligations of its subsidiaries under the Credit Facility, which is available for liquidity support and general corporate purposes[434]. - The company may redeem certain notes prior to maturity by paying the principal amount plus accrued interest, with specific conditions for redemption based on adverse changes in tax laws[437]. - A change of control triggering event allows holders of certain notes to require the Company to repurchase them at a price equal to 101% of the principal amount plus accrued interest[438]. Environmental and Legal Matters - The Company has recorded a reserve of $175 million for environmental matters, of which $150 million are noncurrent, reflecting the best estimate of costs to be incurred[479]. - The Company actively pursues insurance recoveries for environmental liability claims but does not recognize any recoveries until realized[480]. - The Company has been identified as a potentially responsible party for certain environmental cleanup sites, which may lead to additional costs[477]. - The Company maintains various insurance coverages, but these may be insufficient to cover all potential losses from litigation and environmental claims[474]. Pension and Employee Benefits - The funded status of the U.S. pension plan improved to $211 million in 2024 from $31 million in 2023, primarily due to increases in discount rates[453]. - The fair value of plan assets for the U.S. pension plan increased to $1.914 billion in 2024 from $1.889 billion in 2023[453]. - Projected benefit obligation for U.S. pension benefits decreased from $92 million in 2023 to $85 million in 2024, while non-U.S. pension benefits decreased from $977 million to $865 million[454]. - The discount rate for U.S. pension benefits increased from 5.1% in 2023 to 5.6% in 2024, while the rate for non-U.S. pension benefits remained at 3.5%[456]. - The expected long-term return on U.S. defined benefit pension plan assets is maintained at 6.8% for 2025, reflecting the asset allocation strategy[461]. - The company expects cash contributions of approximately $8 million for U.S. defined benefit pension plans and $35 million for non-U.S. plans in 2025[469]. - Total expected benefit payments for U.S. pension plans in 2025 are projected to be $170 million, with total payments across all plans amounting to $239 million[470]. - Unrecognized actuarial losses for pension plans as of December 31, 2024, amount to approximately $399 million, which will impact future net periodic pension costs[459]. - The company’s expenses for all defined benefit and defined contribution pension plans totaled $282 million in 2024, up from $219 million in 2023[471]. - The medical trend rate for postretirement benefits increased from 5.9% in 2023 to 7.7% in 2024, gradually decreasing to an ultimate rate of 4.0% by 2049[456]. - The fair value of total pension plan assets as of December 31, 2024, is reported at $2,693 million, slightly down from $2,704 million in 2023[464].