Danaher(US:DHR)2023-02-21 16:00Financial Performance - Total sales for 2022 reached $31,471 million, an increase of 6.9% from $29,453 million in 2021[371]. - Gross profit for 2022 was $18,949 million, up from $17,952 million in 2021, reflecting a gross margin improvement[371]. - Operating profit increased to $8,688 million in 2022, compared to $7,465 million in 2021, representing a growth of 16.4%[371]. - Net earnings from continuing operations for 2022 were $7,209 million, a rise of 13.6% from $6,347 million in 2021[371]. - Basic net earnings per common share from continuing operations were $9.80 in 2022, compared to $8.65 in 2021, marking a 13.3% increase[371]. - Total revenue for the year ended December 31, 2022, was $31.471 billion, an increase from $29.453 billion in 2021, representing a growth of approximately 6.9%[5]. - Recurring revenue for 2022 was $23.717 billion, up from $21.795 billion in 2021, indicating a growth of about 8.8%[5]. - Nonrecurring revenue for 2022 was $7.754 billion, down from $7.658 billion in 2021, reflecting a decrease of approximately 1.3%[5]. - The company reported a total operating profit of $8,688 million in 2022, up 16.4% from $7,465 million in 2021[447]. Assets and Liabilities - Total current assets as of December 31, 2022, amounted to $15,883 million, up from $11,648 million in 2021, indicating a growth of 36.5%[369]. - Total liabilities decreased to $34,260 million in 2022 from $38,007 million in 2021, a reduction of 9.2%[369]. - Total stockholders' equity increased to $50,090 million in 2022, compared to $45,177 million in 2021, reflecting an increase of 10.5%[369]. - The balance of retained earnings at the end of the period was $39,205 million, up from $32,827 million at the beginning of the period, indicating a growth of approximately 19%[376]. - The balance of additional paid-in capital at the end of the period was $12,072 million, up from $10,090 million, reflecting an increase of approximately 20%[376]. - The Company’s total debt was $19,677 million as of December 31, 2022, a decrease from $22,176 million in 2021, representing a reduction of approximately 11.3%[502]. - Total accrued expenses and other liabilities amounted to $5,502 million in current liabilities and $6,785 million in noncurrent liabilities as of December 31, 2022, compared to $5,563 million and $7,699 million in 2021, respectively[500]. Cash Flow and Investments - Total operating cash provided by continuing operations was $8,519 million, compared to $8,358 million in the previous year, reflecting a year-over-year increase of 2%[378]. - The company reported a net cash used in investing activities for continuing operations of $(2,234) million, a significant decrease from $(12,987) million in 2021[378]. - The ending balance of cash and equivalents increased to $5,995 million from $2,586 million in the previous year, marking a substantial improvement[378]. - The Company made minority investments in equity method investments and non-marketable equity securities totaling $523 million in 2022, down from $934 million in 2021[392]. Research and Development - Research and development expenses for 2022 were $1,745 million, slightly up from $1,742 million in 2021, indicating a stable investment in innovation[371]. - Research and medical products sales reached $26,642 million in 2022, an increase of 7.4% from $24,802 million in 2021[450]. - Research and development costs are expensed as incurred, reflecting the Company's commitment to developing new products and enhancing existing ones[397]. Taxation - The Company reported gross unrecognized tax benefits related to uncertain tax positions of approximately $1.1 billion as of December 31, 2022[366]. - The effective income tax rate for 2022 was 13.1%, down from 16.5% in 2021[455]. - The Company recognized approximately $14 million of net tax expense from potential interest and penalties during 2022, compared to a net tax benefit of $182 million in 2021[460]. - The Company made income tax payments of approximately $1.8 billion, $1.7 billion, and $1.1 billion in 2022, 2021, and 2020, respectively[457]. Acquisitions - In 2022, the Company acquired 10 businesses for a total consideration of $637 million, with an aggregate annual sales of approximately $91 million at the time of acquisition[414]. - The Company recorded approximately $427 million of goodwill related to the acquisitions made in 2022[414]. - The Aldevron Acquisition in 2021 was for approximately $9.6 billion, with Aldevron generating revenues of approximately $300 million in 2020[415]. - The Cytiva Acquisition in 2020 was for approximately $20.7 billion, with the business generating revenues of approximately $3.3 billion from five acquired businesses[417][419]. Segment Performance - The Diagnostics segment provides critical instruments and services for disease diagnosis, contributing significantly to the company's revenue growth[380]. - Operating profit for the Diagnostics segment rose to $3,436 million in 2022, up 48.6% from $2,313 million in 2021[447]. - The Company operates in four segments: Biotechnology, Life Sciences, Diagnostics, and Environmental & Applied Solutions, with no changes in the latter two segments[446]. Pension and Benefits - The U.S. pension benefit obligation at the end of 2022 was $1,913 million, down from $2,532 million in 2021, while the non-U.S. pension benefit obligation decreased from $1,944 million in 2021 to $1,272 million in 2022[531]. - The funded status of the U.S. pension plan was $(56) million in 2022, compared to $(229) million in 2021, indicating an improvement in the plan's financial health[531]. - The Company recognized net periodic pension benefit costs of $40 million in 2022, compared to $32 million in 2021, reflecting changes in service and interest costs[537]. Other Financial Information - The Company recorded an impairment of $91 million related to an equity method investment during 2022, reflected in unrealized investment gains (losses)[472]. - The Company recorded tax benefits of $72 million, $59 million, and $43 million from tax rulings and holidays for 2022, 2021, and 2020, respectively[467]. - The Company recorded a depreciation expense of $738 million for the year, compared to $718 million in 2021[378].