WASHINGTON, Jan. 30, 2018 /PRNewswire/ -- Danaher
Corporation (NYSE: DHR) today announced results for the fourth
quarter and full year 2017. For the quarter ended December 31, 2017, net earnings were $856.6 million, or $1.21 per diluted share which represents a 13.0%
year-over-year increase.
Non-GAAP adjusted diluted net earnings per share for the quarter
ended December 31, 2017 were
$1.19. This represents a 13.5%
increase over the comparable 2016 period. For the fourth quarter
2017, revenues increased 11.0% year-over-year to $5.1 billion, with non-GAAP core revenue growth
of 5.5%.
For the full year 2017, net earnings were $2.5 billion, or $3.50 per diluted share which represents a 13.5%
year-over-year increase. Non-GAAP adjusted diluted net earnings per
share for 2017 was $4.03 per share,
which represents an 11.5% increase over the comparable 2016 amount.
Revenues for the full year 2017 increased 8.5% to $18.3 billion, with non-GAAP core revenue growth
of 3.5%. The Company generated strong operating cash flow of
$3.5 billion for the full year
2017.
For the first quarter of 2018, the Company anticipates that
diluted net earnings per share will be in the range of $0.71 to $0.74 and
non-GAAP adjusted diluted net earnings per share will be in the
range of $0.90 to $0.93.
For the full year 2018, the Company anticipates that diluted net
earnings per share will be in the range of $3.50 to $3.60. The
Company continues to expect its 2018 non-GAAP adjusted diluted net
earnings per share to be in the range of $4.25 to $4.35.
Thomas P. Joyce, Jr., President
and Chief Executive Officer, stated, "We are very pleased with our
strong fourth quarter results. The team delivered 5.5% core revenue
growth, solid margin expansion, and double-digit adjusted earnings
per share growth. As we reflect back, 2017 was a year of
accelerating revenue growth, solid margin improvement, continued
growth investment, and great performance at our more recently
acquired larger businesses. In addition, mid-teens growth in free
cash flow helps position us for more significant capital deployment
in 2018."
Joyce continued, "As we look ahead, we believe that the strength
of our portfolio, combined with the power of the Danaher Business
System, provide us with the foundation for long-term shareholder
value creation."
Danaher will discuss its results during its quarterly investor
conference call today starting at 8:00 a.m.
ET. The call and an accompanying slide presentation
will be webcast on the "Investors" section of Danaher's website,
www.danaher.com, under the subheading "Events & Presentations."
A replay of the webcast will be available in the same section of
Danaher's website shortly after the conclusion of the presentation
and will remain available until the next quarterly earnings
call.
The conference call can be accessed by dialing 800-239-9838
within the U.S. or by dialing +1-323-794-2551 outside the U.S. a
few minutes before the 8:00 a.m. ET
start and telling the operator that you are dialing in for
Danaher's investor conference call (access code 9928573). A
replay of the conference call will be available shortly after the
conclusion of the call and until February
4, 2018. You can access the replay dial-in information
on the "Investors" section of Danaher's website under the
subheading "Events & Presentations." In addition, presentation
materials relating to Danaher's results have been posted to the
"Investors" section of Danaher's website under the subheading
"Quarterly Earnings."
All results in this release reflect only continuing operations
unless otherwise noted.
ABOUT DANAHER
Danaher is a global science and technology innovator committed
to helping its customers solve complex challenges and improving
quality of life around the world. Its family of world class
brands has leadership positions in some of the most demanding and
attractive industries, including health care, environmental and
industrial. With more than 20 operating companies, Danaher's
globally diverse team of approximately 67,000 associates is united
by a common culture and operating system, the Danaher Business
System. For more information, please visit
www.danaher.com.
NON-GAAP MEASURES
In addition to the financial measures prepared in accordance
with generally accepted accounting principles (GAAP), this earnings
release also contains non-GAAP financial measures.
Calculations of these measures, the reasons why we believe these
measures provide useful information to investors, a reconciliation
of these measures to the most directly comparable GAAP measures and
other information relating to these non-GAAP measures are included
in the supplemental reconciliation schedule attached.
FORWARD-LOOKING STATEMENTS
Statements in this release that are not strictly historical,
including the statements regarding the Company's anticipated
financial performance for the first quarter and full year 2018, the
Company's opportunities and positioning for 2018 and beyond and any
other statements regarding events or developments that we believe
or anticipate will or may occur in the future are "forward-looking"
statements within the meaning of the federal securities laws.
There are a number of important factors that could cause actual
results, developments and business decisions to differ materially
from those suggested or indicated by such forward-looking
statements and you should not place undue reliance on any such
forward-looking statements. These factors include, among
other things, deterioration of or instability in the economy, the
markets we serve and the financial markets, contractions or growth
rates and cyclicality of markets we serve, competition, our ability
to develop and successfully market new products and technologies
and expand into new markets, the potential for improper conduct by
our employees, agents or business partners, our compliance with
applicable laws and regulations (including regulations relating to
medical devices and the health care industry), our ability to
effectively address cost reductions and other changes in the health
care industry, our ability to successfully identify, consummate and
integrate appropriate acquisitions and successfully complete
divestitures and other dispositions, our ability to integrate the
recent acquisitions of Pall Corporation and Cepheid and achieve the
anticipated benefits of such transactions, contingent liabilities
relating to acquisitions and divestitures (including tax-related
and other contingent liabilities relating to the distributions of
each of Fortive Corporation and our communications business),
security breaches or other disruptions of our information
technology systems or violations of data privacy laws, the impact
of our restructuring activities on our ability to grow, risks
relating to potential impairment of goodwill and other intangible
assets, currency exchange rates, tax audits and changes in our tax
rate and income tax liabilities, changes in tax laws applicable to
multinational companies, litigation and other contingent
liabilities including intellectual property and environmental,
health and safety matters, the rights of the United States government to use, disclose
and license certain intellectual property we license if we fail to
commercialize it, risks relating to product, service or software
defects, product liability and recalls, risks relating to product
manufacturing, the impact of our debt obligations on our operations
and liquidity, our relationships with and the performance of our
channel partners, uncertainties relating to collaboration
arrangements with third parties, commodity costs and surcharges,
our ability to adjust purchases and manufacturing capacity to
reflect market conditions, reliance on sole sources of supply, the
impact of deregulation on demand for our products and services,
labor matters, international economic, political, legal, compliance
and business factors (including the impact of the UK's decision to
leave the EU), disruptions relating to man-made and natural
disasters, and pension plan costs. Additional information
regarding the factors that may cause actual results to differ
materially from these forward-looking statements is available in
our SEC filings, including our 2016 Annual Report on Form 10-K and
Quarterly Report on Form 10-Q for the third quarter of 2017.
These forward-looking statements speak only as of the date of this
release and except to the extent required by applicable law, the
Company does not assume any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events and developments or otherwise.
DANAHER
CORPORATION
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
Adjusted Diluted
Net Earnings Per Share from Continuing Operations
|
|
|
Three-Month Period
Ended
|
|
Year
Ended
|
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
|
Diluted Net
Earnings Per Share from Continuing
Operations (GAAP)
|
$
|
1.21
|
|
|
$
|
1.07
|
|
|
$
|
3.50
|
|
|
$
|
3.08
|
|
|
Pretax amortization
of acquisition-related intangible assets A
|
0.24
|
|
|
0.22
|
|
|
0.94
|
|
|
0.83
|
|
|
Pretax gains on
resolution of acquisition-related matters B,C
|
(0.02)
|
|
B
|
—
|
|
|
(0.02)
|
|
B
|
(0.02)
|
|
C
|
Pretax gain on sales
of investments D,E
|
(0.10)
|
|
D
|
—
|
|
|
(0.10)
|
|
D
|
(0.32)
|
|
E
|
Pretax restructuring,
impairment and other related charges
recorded in the second quarter of 2017 F
|
—
|
|
|
—
|
|
|
0.11
|
|
|
—
|
|
|
Pretax charge for
early extinguishment of borrowings G
|
—
|
|
|
—
|
|
|
—
|
|
|
0.26
|
|
|
Pretax
acquisition-related transaction costs deemed
significant, change in control payments and restructuring
costs and fair value adjustments to inventory and deferred
revenue H
|
—
|
|
|
0.12
|
|
|
—
|
|
|
0.12
|
|
|
Tax effect of all
adjustments reflected above I
|
(0.01)
|
|
|
(0.09)
|
|
|
(0.19)
|
|
|
(0.21)
|
|
|
Discrete tax
adjustments and other tax-related adjustments
J,K
|
(0.13)
|
|
J
|
(0.27)
|
|
K
|
(0.21)
|
|
J
|
(0.13)
|
|
K
|
Adjusted Diluted
Net Earnings Per Share from
Continuing Operations (Non-GAAP)
|
$
|
1.19
|
|
|
$
|
1.05
|
|
|
$
|
4.03
|
|
|
$
|
3.61
|
|
|
Forecasted
Adjusted Diluted Net Earnings Per Share from Continuing
Operations
|
|
|
Three-Month Period
Ending
March 30, 2018
|
|
Year
Ending
December 31,
2018
|
|
Low
End
|
|
High
End
|
|
Low
End
|
|
High
End
|
Forecasted Diluted
Net Earnings Per Share from
Continuing Operations (GAAP)
|
$
|
0.71
|
|
|
$
|
0.74
|
|
|
$
|
3.50
|
|
|
$
|
3.60
|
|
Anticipated pretax
amortization of acquisition-related intangible assets
A
|
0.24
|
|
|
0.24
|
|
|
0.95
|
|
|
0.95
|
|
Tax effect of all
adjustments reflected above I
|
(0.05)
|
|
|
(0.05)
|
|
|
(0.20)
|
|
|
(0.20)
|
|
Forecasted
Adjusted Diluted Net Earnings Per Share from
Continuing Operations (Non-GAAP) 1
|
$
|
0.90
|
|
|
$
|
0.93
|
|
|
$
|
4.25
|
|
|
$
|
4.35
|
|
1
|
The forward-looking
estimates set forth above do not reflect future gains and charges
that are inherently difficult to predict and estimate due to their
unknown timing, effect and/or significance, such as certain future
gains or losses on the sale of investments, acquisition or
divestiture-related gains or charges and discrete tax
items.
|
Revenue
Performance
|
|
|
Three-Month
Period
Ended December 31,
2017 vs. Comparable
2016 Period
|
|
Year Ended
December 31, 2017
vs. Comparable 2016
Period
|
Total Revenue
Growth from Continuing Operations (GAAP)
|
11.0
|
%
|
|
8.5
|
%
|
Less the impact
of:
|
|
|
|
Acquisitions and
other
|
(2.5)
|
%
|
|
(4.5)
|
%
|
Currency exchange
rates
|
(3.0)
|
%
|
|
(0.5)
|
%
|
Core Revenue
Growth from Continuing Operations (Non-GAAP)
2
|
5.5
|
%
|
|
3.5
|
%
|
2
|
We use the term "core
revenue" to refer to GAAP revenue from continuing operations
excluding (1) sales from acquired businesses recorded prior to the
first anniversary of the acquisition less the amount of sales
attributable to divested businesses or product lines not considered
discontinued operations ("acquisition sales") and (2) the impact of
currency translation. The portion of GAAP revenue from
continuing operations attributable to currency translation is
calculated as the difference between (a) the period-to-period
change in revenue (excluding acquisition sales) and (b) the
period-to-period change in revenue (excluding acquisition sales)
after applying current period foreign exchange rates to the prior
year period. We use the term "core revenue growth" to refer
to the measure of comparing current period core revenue with the
corresponding period of the prior year.
|
DANAHER
CORPORATION
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
|
(continued)
|
|
A
|
Amortization of
acquisition-related intangible assets in the following historical
and forecasted periods ($ in millions) (only the pretax amounts set
forth below are reflected in the amortization line item
above):
|
|
|
|
|
|
|
|
|
|
Forecasted
|
|
Three-Month Period
Ended
|
|
Year
Ended
|
|
Three-Month
Period Ending
|
|
Year
Ending
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
|
March 30,
2018
|
|
December 31,
2018
|
Pretax
|
$
|
167.7
|
|
|
$
|
156.5
|
|
|
$
|
660.5
|
|
|
$
|
583.1
|
|
|
$
|
170.1
|
|
|
$
|
679.9
|
|
After-tax
|
132.5
|
|
|
123.9
|
|
|
523.5
|
|
|
449.7
|
|
|
134.4
|
|
|
537.1
|
|
B
|
Net gains on
resolution of acquisition-related matters in the Life Sciences and
Diagnostics segments ($11 million pretax as presented in this line
item, $8 million after-tax) for the three-month period and year
ended December 31, 2017.
|
C
|
Gains on resolution
of acquisition-related matters ($18 million pretax as presented in
this line item, $14 million after-tax) for the year ended December
31, 2016.
|
D
|
Gain on sales of
investments in the three-month period and year ended December 31,
2017 ($73 million pretax as presented in this line item, $46
million after-tax).
|
E
|
Gain on sales of
investments in the year ended December 31, 2016 ($223 million
pretax as presented in this line item, $140 million
after-tax).
|
F
|
During the year ended
December 31, 2017, the Company recorded $76 million of pretax
restructuring, impairment and other related charges ($51 million
after-tax) primarily related to the Company's strategic decision to
discontinue a molecular diagnostic product line in its Diagnostics
segment. As a result, the Company incurred noncash charges
for the impairment of certain technology-related intangibles as
well as related inventory and plant, property and equipment with no
further use totaling $49 million. In addition, the Company
incurred cash restructuring costs primarily related to employee
severance and related charges totaling $27 million. This is
addressed in more detail in the "Statement Regarding Non-GAAP
Measures."
|
G
|
Charge for early
extinguishment of borrowings ($179 million pretax as presented in
this line item, $112 million after-tax) incurred in the third
quarter of 2016.
|
H
|
Acquisition-related
transaction costs deemed significant ($12 million pretax as
presented in this line item, $9 million after-tax), change in
control payments and restructuring costs ($49 million pretax as
presented in this line item, $30 million after-tax), and fair value
adjustments to inventory and deferred revenue ($23 million pretax
as presented in this line item, $14 million after-tax), in each
case related to the acquisitions of Cepheid and Phenomenex and
incurred in the three-month period and year ended December 31,
2016. The Company deems acquisition-related transaction costs
incurred in a given period to be significant (generally relating to
the Company's larger acquisitions) if it determines that such costs
exceed the range of acquisition-related transaction costs typical
for Danaher in a given period.
|
I
|
This line item
reflects the aggregate tax effect of all nontax adjustments
reflected in the table above. In addition, the footnotes
above indicate the after-tax amount of each individual adjustment
item. Danaher estimates the tax effect of the adjustment
items identified in the reconciliation schedule above by applying
Danaher's overall estimated effective tax rate to the pretax
amount, unless the nature of the item and/or the tax jurisdiction
in which the item has been recorded requires application of a
specific tax rate or tax treatment, in which case the tax effect of
such item is estimated by applying such specific tax rate or tax
treatment.
|
J
|
Discrete tax
adjustments and other tax-related adjustments for the three-month
period and year ended December 31, 2017 include:
|
($ in
millions)
|
Three-Month
Period
Ended December 31,
2017
|
|
Year Ended
December 31, 2017
|
Discrete income tax
gains, primarily related to expiration of statute of limitations
1
|
$
|
94
|
|
|
$
|
129
|
|
Impact of ASU No.
2016-09, Compensation—Stock Compensation
2
|
—
|
|
|
16
|
|
Remeasurement of
deferred tax assets and liabilities as a result of the Tax Cuts and
Jobs Act of
2017 3
|
1,219
|
|
|
1,219
|
|
Transition tax on
deemed repatriation of foreign earnings as a result of the Tax Cuts
and Jobs Act
of 2017 4
|
(1,218)
|
|
|
(1,218)
|
|
|
$
|
95
|
|
|
$
|
146
|
|
|
Represents (1)
discrete income tax gains, primarily related to expiration of
statute of limitations ($94 million in the three-month period ended
December 31, 2017 and $129 million in the year ended December 31,
2017), (2) equity compensation-related excess tax benefits ($16
million in the year ended December 31, 2017), (3) remeasurement of
deferred tax assets and liabilities, net related to enactment of
the Tax Cuts and Jobs Act ($1.2 billion gain in the three-month
period and year ended December 31, 2017), and (4) transition tax on
deemed repatriation of foreign earnings in connection with
enactment of the Tax Cuts and Jobs Act ($1.2 billion provision in
the three-month period and year ended December 31,
2017).
|
|
On January 1, 2017,
Danaher adopted the updated accounting guidance required by ASU No.
2016-09, Compensation—Stock Compensation, which requires
income statement recognition of all excess tax benefits and
deficiencies related to equity compensation. We exclude from
Adjusted Diluted Net EPS any excess tax benefits that exceed the
levels we believe are representative of historical
experience. In the first quarter of 2017, we anticipated $10
million of equity compensation-related excess tax benefits and
realized $26 million of excess tax benefits, and therefore we have
excluded $16 million of these benefits in the calculation of
Adjusted Diluted Net Earnings per Share. In the second, third
and fourth quarters of 2017, realized equity compensation-related
excess tax benefits approximated the anticipated benefit and no
adjustments were required.
|
K
|
Discrete income tax
gains net of discrete income tax charges incurred in the
three-month period ended December 31, 2016 ($190 million).
Discrete income tax gains net of discrete income tax charges and
Fortive separation-related tax costs related to repatriation of
earnings and legal entity realignments incurred in the year ended
December 31, 2016 ($91 million).
|
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
to:
- with respect to Adjusted Diluted Net EPS, understand the
long-term profitability trends of our business and compare our
profitability to prior and future periods and to our peers;
and
- with respect to core revenue, identify underlying growth trends
in our business and compare our revenue performance with prior and
future periods and to our peers.
Management uses these non-GAAP measures to measure the Company's
operating and financial performance, and uses a non-GAAP measure
similar to Adjusted Diluted Net EPS 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:
- With respect to Adjusted Diluted Net EPS:
-
- We exclude the amortization of acquisition-related intangible
assets because the amount and timing of such charges are
significantly impacted by the timing, size, number and nature of
the acquisitions we consummate. While we have a history of
significant acquisition activity, we do not acquire businesses on a
predictable cycle, and the amount of an acquisition's purchase
price allocated to intangible assets and related amortization term
are unique to each acquisition and can vary significantly from
acquisition to acquisition. Exclusion of this amortization
expense facilitates more consistent comparisons of operating
results over time between our newly acquired and long-held
businesses, and with both acquisitive and non-acquisitive peer
companies. We believe however that it is important for
investors to understand that such intangible assets contribute to
revenue generation and that intangible asset amortization related
to past acquisitions will recur in future periods until such
intangible assets have been fully amortized.
- We exclude costs incurred pursuant to discrete restructuring
plans that are fundamentally different (in terms of the size,
strategic nature and planning requirements, as well as the
inconsistent frequency, of such plans) from the ongoing
productivity improvements that result from application of the
Danaher Business System. Because these restructuring plans
are incremental to the core activities that arise in the ordinary
course of our business and we believe are not indicative of
Danaher's ongoing operating costs in a given period, we exclude
these costs from the calculation of Adjusted Diluted Net EPS to
facilitate a more consistent comparison of operating results over
time.
- With respect to the other items excluded from Adjusted Diluted
Net EPS, we exclude these items because they are of a nature and/or
size that occur with inconsistent frequency, occur for reasons that
may be unrelated to Danaher's commercial performance during the
period and/or we believe are not indicative of Danaher's ongoing
operating costs or gains in a given period; we believe that such
items may obscure underlying business trends and make comparisons
of long-term performance difficult.
- With respect to core revenue, (1) we exclude the impact of
currency translation because it is not under management's control,
is subject to volatility and can obscure underlying business
trends, and (2) we exclude the effect of acquisitions and divested
product lines because the timing, size, number and nature of such
transactions can vary significantly from period-to-period and
between us and our peers, which we believe may obscure underlying
business trends and make comparisons of long-term performance
difficult.
DANAHER
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS (unaudited)
|
($ and shares in
millions, except per share amount)
|
|
|
As of December
31
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and
equivalents
|
$
|
630.3
|
|
|
$
|
963.7
|
|
Trade accounts
receivable, less allowance for doubtful accounts of $116.1 and
$102.4,
respectively
|
3,521.8
|
|
|
3,186.1
|
|
Inventories
|
1,840.8
|
|
|
1,709.4
|
|
Prepaid
expenses and other current assets
|
857.1
|
|
|
805.9
|
|
Total current
assets
|
6,850.0
|
|
|
6,665.1
|
|
Property, plant and
equipment, net
|
2,454.6
|
|
|
2,354.0
|
|
Other
assets
|
538.3
|
|
|
631.3
|
|
Goodwill
|
25,138.6
|
|
|
23,826.9
|
|
Other intangible
assets, net
|
11,667.1
|
|
|
11,818.0
|
|
Total
assets
|
$
|
46,648.6
|
|
|
$
|
45,295.3
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Notes payable
and current portion of long-term debt
|
$
|
194.7
|
|
|
$
|
2,594.8
|
|
Trade accounts
payable
|
1,509.9
|
|
|
1,485.0
|
|
Accrued
expenses and other liabilities
|
3,087.7
|
|
|
2,794.2
|
|
Total current
liabilities
|
4,792.3
|
|
|
6,874.0
|
|
Other long-term
liabilities
|
5,161.1
|
|
|
5,670.3
|
|
Long-term
debt
|
10,327.4
|
|
|
9,674.2
|
|
Stockholders'
equity:
|
|
|
|
Common stock -
$0.01 par value, 2.0 billion shares authorized; 812.5 and 807.7
issued;
696.6 and 692.2 outstanding, respectively
|
8.1
|
|
|
8.1
|
|
Additional
paid-in capital
|
5,538.2
|
|
|
5,312.9
|
|
Retained
earnings
|
22,806.1
|
|
|
20,703.5
|
|
Accumulated
other comprehensive income (loss)
|
(1,994.2)
|
|
|
(3,021.7)
|
|
Total Danaher
stockholders' equity
|
26,358.2
|
|
|
23,002.8
|
|
Noncontrolling
interests
|
9.6
|
|
|
74.0
|
|
Total stockholders'
equity
|
26,367.8
|
|
|
23,076.8
|
|
Total liabilities and
stockholders' equity
|
$
|
46,648.6
|
|
|
$
|
45,295.3
|
|
|
This information is
presented for reference only. Final audited financial
statements will include footnotes, which should be referenced when
available, to more fully understand the contents of this
information.
|
DANAHER
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF EARNINGS (unaudited)
|
($ and shares in
millions, except per share amounts)
|
|
|
Three-Month Period
Ended
December 31
|
|
Year Ended
December 31
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Sales
|
$
|
5,085.7
|
|
|
$
|
4,584.3
|
|
|
$
|
18,329.7
|
|
|
$
|
16,882.4
|
|
|
Cost of
sales
|
(2,246.6)
|
|
|
(2,084.3)
|
|
|
(8,137.2)
|
|
|
(7,547.8)
|
|
|
Gross
profit
|
2,839.1
|
|
|
2,500.0
|
|
|
10,192.5
|
|
|
9,334.6
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
(1,594.1)
|
|
|
(1,503.4)
|
|
|
(6,042.5)
|
|
|
(5,608.6)
|
|
|
Research and
development expenses
|
(298.9)
|
|
|
(268.0)
|
|
|
(1,128.8)
|
|
|
(975.1)
|
|
|
Operating
profit
|
946.1
|
|
|
728.6
|
|
|
3,021.2
|
|
|
2,750.9
|
|
|
Nonoperating income
(expense):
|
|
|
|
|
|
|
|
|
Other
income
|
72.8
|
|
|
—
|
|
|
72.8
|
|
|
223.4
|
|
|
Loss on early
extinguishment of borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
(178.8)
|
|
|
Interest
expense
|
(41.8)
|
|
|
(32.3)
|
|
|
(162.7)
|
|
|
(184.4)
|
|
|
Interest
income
|
1.9
|
|
|
0.1
|
|
|
7.5
|
|
|
0.2
|
|
|
Earnings from
continuing operations before income taxes
|
979.0
|
|
|
696.4
|
|
|
2,938.8
|
|
|
2,611.3
|
|
|
Income
taxes
|
(122.4)
|
|
|
50.6
|
|
|
(469.0)
|
|
|
(457.9)
|
|
|
Net earnings from
continuing operations
|
856.6
|
|
|
747.0
|
|
|
2,469.8
|
|
|
2,153.4
|
|
|
Earnings from
discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
22.3
|
|
|
400.3
|
|
|
Net
earnings
|
$
|
856.6
|
|
|
$
|
747.0
|
|
|
$
|
2,492.1
|
|
|
$
|
2,553.7
|
|
|
Net earnings per
share from continuing operations:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.23
|
|
|
$
|
1.08
|
|
|
$
|
3.55
|
|
|
$
|
3.12
|
|
|
Diluted
|
$
|
1.21
|
|
|
$
|
1.07
|
|
|
$
|
3.50
|
|
|
$
|
3.08
|
|
|
Net earnings per
share from discontinued operations:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.03
|
|
|
$
|
0.58
|
|
|
Diluted
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.03
|
|
|
$
|
0.57
|
|
|
Net earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.23
|
|
|
$
|
1.08
|
|
|
$
|
3.58
|
|
|
$
|
3.69
|
|
*
|
Diluted
|
$
|
1.21
|
|
|
$
|
1.07
|
|
|
$
|
3.53
|
|
|
$
|
3.65
|
|
|
Average common stock
and common equivalent shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
697.2
|
|
|
693.0
|
|
|
695.8
|
|
|
691.2
|
|
|
Diluted
|
707.6
|
|
|
701.9
|
|
|
706.1
|
|
|
699.8
|
|
|
|
* Net earnings
per share amount does not add due to rounding.
|
This information is
presented for reference only. Final audited financial
statements will include footnotes, which should be referenced when
available, to more fully understand the contents of this
information.
|
DANAHER
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (unaudited)
|
($ and shares in
millions)
|
|
|
Year Ended
December 31
|
|
2017
|
|
2016
|
Cash flows from
operating activities:
|
|
|
|
Net
earnings
|
$
|
2,492.1
|
|
|
$
|
2,553.7
|
|
Less: earnings
from discontinued operations, net of income taxes
|
22.3
|
|
|
400.3
|
|
Net earnings
from continuing operations
|
2,469.8
|
|
|
2,153.4
|
|
Noncash
items:
|
|
|
|
Depreciation
|
577.8
|
|
|
545.0
|
|
Amortization
|
660.5
|
|
|
583.1
|
|
Stock-based
compensation expense
|
139.4
|
|
|
129.8
|
|
Restructuring
and impairment charges
|
56.1
|
|
|
12.0
|
|
Pretax loss on
early extinguishment of borrowings
|
—
|
|
|
178.8
|
|
Pretax gain on
sales of investments
|
(72.8)
|
|
|
(223.4)
|
|
Change in
deferred income taxes
|
(426.9)
|
|
|
(383.9)
|
|
Change in trade
accounts receivable, net
|
(161.4)
|
|
|
(183.1)
|
|
Change in
inventories
|
(27.4)
|
|
|
9.4
|
|
Change in trade
accounts payable
|
(54.4)
|
|
|
78.1
|
|
Change in
prepaid expenses and other assets
|
4.4
|
|
|
(62.4)
|
|
Change in
accrued expenses and other liabilities
|
312.7
|
|
|
250.7
|
|
Total operating cash
provided by continuing operations
|
3,477.8
|
|
|
3,087.5
|
|
Total operating
cash provided by discontinued operations
|
—
|
|
|
434.3
|
|
Net cash provided by
operating activities
|
3,477.8
|
|
|
3,521.8
|
|
Cash flows from
investing activities:
|
|
|
|
Cash paid for
acquisitions
|
(385.8)
|
|
|
(4,880.1)
|
|
Payments for
additions to property, plant and equipment
|
(619.6)
|
|
|
(589.6)
|
|
Proceeds from
sales of property, plant and equipment
|
32.6
|
|
|
9.8
|
|
Proceeds from
sales of investments
|
137.9
|
|
|
264.8
|
|
All other
investing activities
|
(8.5)
|
|
|
21.9
|
|
Total investing cash
used in continuing operations
|
(843.4)
|
|
|
(5,173.2)
|
|
Total investing
cash used in discontinued operations
|
—
|
|
|
(69.8)
|
|
Net cash used in
investing activities
|
(843.4)
|
|
|
(5,243.0)
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
the issuance of common stock
|
68.8
|
|
|
164.5
|
|
Payment of
dividends
|
(378.3)
|
|
|
(399.8)
|
|
Payment for
purchase of noncontrolling interest
|
(64.4)
|
|
|
—
|
|
Make-whole
premiums to redeem borrowings prior to maturity
|
—
|
|
|
(188.1)
|
|
Net (repayments
of) proceeds from borrowings (maturities of 90 days or
less)
|
(3,778.5)
|
|
|
2,218.1
|
|
Proceeds from
borrowings (maturities longer than 90 days)
|
1,782.1
|
|
|
3,240.9
|
|
Repayments of
borrowings (maturities longer than 90 days)
|
(668.4)
|
|
|
(2,480.6)
|
|
All other
financing activities
|
(59.8)
|
|
|
(27.0)
|
|
Total financing cash
provided by (used in) continuing operations
|
(3,098.5)
|
|
|
2,528.0
|
|
Cash
distributions to Fortive Corporation, net
|
—
|
|
|
(485.3)
|
|
Net cash provided by
(used in) financing activities
|
(3,098.5)
|
|
|
2,042.7
|
|
Effect of exchange
rate changes on cash and equivalents
|
130.7
|
|
|
(148.6)
|
|
Net change in cash
and equivalents
|
(333.4)
|
|
|
172.9
|
|
Beginning balance of
cash and equivalents
|
963.7
|
|
|
790.8
|
|
Ending balance of
cash and equivalents
|
$
|
630.3
|
|
|
$
|
963.7
|
|
|
|
|
|
Supplemental
disclosure:
|
|
|
|
Distribution of
noncash net assets to Fortive Corporation
|
—
|
|
|
(1,983.6)
|
|
|
This information is
presented for reference only. Final audited financial
statements will include footnotes, which should be referenced when
available, to more fully understand the contents of this
information.
|
DANAHER
CORPORATION AND SUBSIDIARIES
|
SEGMENT
INFORMATION (unaudited)
|
($ in
millions)
|
|
|
Three-Month Period
Ended
December 31
|
|
Year Ended
December 31
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Sales:
|
|
|
|
|
|
|
|
Life
Sciences
|
$
|
1,625.1
|
|
|
$
|
1,454.1
|
|
|
$
|
5,710.1
|
|
|
$
|
5,365.9
|
|
Diagnostics
|
1,623.9
|
|
|
1,431.8
|
|
|
5,839.9
|
|
|
5,038.3
|
|
Dental
|
758.8
|
|
|
739.3
|
|
|
2,810.9
|
|
|
2,785.4
|
|
Environmental &
Applied Solutions
|
1,077.9
|
|
|
959.1
|
|
|
3,968.8
|
|
|
3,692.8
|
|
Total
|
$
|
5,085.7
|
|
|
$
|
4,584.3
|
|
|
$
|
18,329.7
|
|
|
$
|
16,882.4
|
|
|
|
|
|
|
|
|
|
Operating
Profit:
|
|
|
|
|
|
|
|
Life
Sciences
|
$
|
324.3
|
|
|
$
|
244.8
|
|
|
$
|
1,004.3
|
|
|
$
|
818.9
|
|
Diagnostics
|
316.7
|
|
|
180.1
|
|
|
871.6
|
|
|
786.4
|
|
Dental
|
99.3
|
|
|
113.8
|
|
|
400.7
|
|
|
419.4
|
|
Environmental &
Applied Solutions
|
248.6
|
|
|
229.9
|
|
|
914.6
|
|
|
870.0
|
|
Other
|
(42.8)
|
|
|
(40.0)
|
|
|
(170.0)
|
|
|
(143.8)
|
|
Total
|
$
|
946.1
|
|
|
$
|
728.6
|
|
|
$
|
3,021.2
|
|
|
$
|
2,750.9
|
|
|
|
|
|
|
|
|
|
Operating
Margins:
|
|
|
|
|
|
|
|
Life
Sciences
|
20.0
|
%
|
|
16.8
|
%
|
|
17.6
|
%
|
|
15.3
|
%
|
Diagnostics
|
19.5
|
%
|
|
12.6
|
%
|
|
14.9
|
%
|
|
15.6
|
%
|
Dental
|
13.1
|
%
|
|
15.4
|
%
|
|
14.3
|
%
|
|
15.1
|
%
|
Environmental &
Applied Solutions
|
23.1
|
%
|
|
24.0
|
%
|
|
23.0
|
%
|
|
23.6
|
%
|
Total
|
18.6
|
%
|
|
15.9
|
%
|
|
16.5
|
%
|
|
16.3
|
%
|
|
This information is
presented for reference only. Final audited financial
statements will include footnotes, which should be referenced when
available, to more fully understand the contents of this
information.
|
View original
content:http://www.prnewswire.com/news-releases/danaher-reports-fourth-quarter-and-full-year-2017-results-300589934.html
SOURCE Danaher Corporation