Danaher Reports Fourth Quarter and Full Year 2017 Results

 

 
[30-January-2018]
 
 

WASHINGTON, Jan. 30, 2018 /PRNewswire/ -- Danaher (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,            December 31,          December 31,           December 31,
                                                                                                 2017                     2016                   2017                    2016
                                                                                                 ----                     ----                   ----                    ----

    Diluted Net Earnings Per Share from Continuing                                                       $1.21                                          $1.07                      $3.50    $3.08
    Operations (GAAP)

    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                                      -                               -                                 0.11            -
    recorded in the second quarter of 2017 F

    Pretax charge for early extinguishment of borrowings G                                          -                               -                                    -        0.26

    Pretax acquisition-related transaction costs deemed                                             -                            0.12                                     -        0.12
    significant, change in control payments and restructuring
    costs and fair value adjustments to inventory and deferred
    revenue H

    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                                                         $1.19                                          $1.05                      $4.03    $3.61
    Continuing Operations (Non-GAAP)

 

    Forecasted Adjusted Diluted Net Earnings Per Share from Continuing Operations
    -----------------------------------------------------------------------------


                                                                                   Three-Month Period Ending                   Year Ending
                                                                                         March 30, 2018
                                                                                                                            December 31, 2018

                                                                                  Low End             High End         Low End             High End
                                                                                  -------             --------         -------             --------

    Forecasted Diluted Net Earnings Per Share from                                            $0.71                                 $0.74                 $3.50  $3.60
    Continuing Operations (GAAP)

    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                                   $0.90                                 $0.93                 $4.25  $4.35
    Continuing Operations (Non-GAAP) (1)

 
    (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       Year Ended
                                                                  Ended December 31,   December 31, 2017
                                                                  2017 vs. Comparable vs. Comparable 2016
                                                                      2016 Period            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            Year Ending
                                                                                                   Period Ending
                                                                                                   -------------

              December 31,             December 31,        December 31,            December 31,            March 30, 2018           December 31,
                      2017                      2016                 2017                     2016                                              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         Year Ended
                                                                                                       Ended December 31,     December 31, 2017
                                                                                                                     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                1,219                          1,219
    2017 (3)

    Transition tax on deemed repatriation of foreign earnings as a result of the Tax Cuts and Jobs Act            (1,218)                       (1,218)
    of 2017 4


                                                                                                                          $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,                                                                                                               3,521.8                               3,186.1
     respectively

     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;                                                                                                                  8.1                                   8.1
     696.6 and 692.2 outstanding, respectively

     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                                Year Ended December 31
                                                                                                                                                  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                                Year Ended December 31
                                                                                                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

 
 
Company Codes: NYSE:DHR
 

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