Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Danaher Corp., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Federal U.S.	559)	271)	183)	(321)	454)
Non-U.S.	1,271)	1,229)	1,134)	580)	800)
State and local	197)	142)	163)	72)	35)
Current	2,027)	1,642)	1,480)	331)	1,288)
Federal U.S.	(737)	(331)	(156)	530)	(297)
Non-U.S.	(338)	(159)	(23)	(16)	(128)
State and local	(129)	(69)	(50)	4)	10)
Deferred	(1,204)	(559)	(229)	518)	(415)
Income tax provision	823)	1,083)	1,251)	849)	873)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Danaher Corp. current increased from 2021 to 2022 and from 2022 to 2023.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Danaher Corp. deferred decreased from 2021 to 2022 and from 2022 to 2023.
Income tax provision	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Danaher Corp. income tax provision decreased from 2021 to 2022 and from 2022 to 2023.

Danaher Corp., effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Statutory federal income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
State income taxes, net of federal income tax benefit	1.20%	1.30%	1.10%	1.10%	0.80%
Non-U.S. rate differential	-3.40%	-2.80%	-2.00%	-1.60%	-1.40%
Resolution and expiration of statutes of limitation of uncertain tax positions	-0.40%	-0.20%	-3.00%	-0.70%	-2.10%
Realignment of businesses	0.60%	-4.90%	0.00%	0.00%	0.00%
Research credits	-1.60%	0.00%	0.00%	0.00%	0.00%
Foreign-derived intangible income, uncertain tax positions and other	-0.80%	-0.80%	0.50%	0.70%	9.30%
Excess tax benefits from stock-based compensation	-0.30%	-0.50%	-1.10%	-1.60%	-1.20%
Effective income tax rate	16.30%	13.10%	16.50%	18.90%	26.40%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Danaher Corp. effective income tax rate decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Danaher Corp., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Allowance for doubtful accounts	18)	17)	19)	24)	19)
Inventories	120)	118)	93)	99)	73)
Pension and postretirement benefits	25)	17)	105)	259)	231)
Environmental and regulatory compliance	37)	39)	38)	27)	22)
Other accruals and prepayments	574)	406)	299)	341)	195)
Stock-based compensation expense	115)	105)	76)	68)	69)
Operating lease liabilities	252)	238)	252)	215)	194)
Research and development expense	441)	243)	49)	—)	—)
Tax credit and loss carryforwards	557)	479)	544)	569)	703)
Deferred tax assets, before valuation allowances	2,139)	1,662)	1,475)	1,602)	1,506)
Valuation allowances	(234)	(236)	(242)	(264)	(261)
Deferred tax assets	1,905)	1,426)	1,233)	1,338)	1,245)
Property, plant and equipment	(125)	(92)	(79)	(50)	(114)
Insurance, including self-insurance	(315)	(803)	(520)	(713)	(272)
Basis difference in LYONs	—)	—)	—)	(11)	(14)
Operating lease ROU assets	(228)	(219)	(235)	(204)	(186)
Goodwill and other intangibles	(3,429)	(3,270)	(3,962)	(3,814)	(2,312)
Deferred tax liabilities	(4,097)	(4,384)	(4,796)	(4,792)	(2,897)
Net deferred tax asset (liability)	(2,192)	(2,958)	(3,563)	(3,454)	(1,652)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax assets, before valuation allowances	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Danaher Corp. deferred tax assets, before valuation allowances increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Danaher Corp. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Danaher Corp. net deferred tax asset (liability) increased from 2021 to 2022 and from 2022 to 2023.

Danaher Corp., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Liabilities
Total liabilities (as reported)	30,998)	34,260)	38,007)	36,384)	31,800)
Less: Noncurrent deferred tax liabilities, net	2,192)	2,958)	3,563)	3,454)	1,652)
Total liabilities (adjusted)	28,806)	31,302)	34,444)	32,930)	30,148)
Adjustment to Total Danaher Stockholders’ Equity
Total Danaher stockholders’ equity (as reported)	53,486)	50,082)	45,167)	39,766)	30,271)
Less: Net deferred tax assets (liabilities)	(2,192)	(2,958)	(3,563)	(3,454)	(1,652)
Total Danaher stockholders’ equity (adjusted)	55,678)	53,040)	48,730)	43,220)	31,923)
Adjustment to Net Earnings
Net earnings (as reported)	4,764)	7,209)	6,433)	3,646)	3,008)
Add: Deferred income tax expense (benefit)	(1,204)	(559)	(229)	518)	(415)
Net earnings (adjusted)	3,560)	6,650)	6,204)	4,164)	2,593)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Danaher Corp., Financial Data: Reported vs. Adjusted

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Danaher Corp., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	19.94%	22.91%	21.84%	16.36%	16.80%
Adjusted net profit margin	14.90%	21.13%	21.06%	18.69%	14.48%
Financial Leverage
Reported financial leverage	1.58	1.68	1.84	1.92	2.05
Adjusted financial leverage	1.52	1.59	1.71	1.76	1.94
Return on Equity (ROE)
Reported ROE	8.91%	14.39%	14.24%	9.17%	9.94%
Adjusted ROE	6.39%	12.54%	12.73%	9.63%	8.12%
Return on Assets (ROA)
Reported ROA	5.64%	8.55%	7.73%	4.79%	4.85%
Adjusted ROA	4.21%	7.88%	7.46%	5.47%	4.18%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Danaher Corp. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Danaher Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Danaher Corp. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Danaher Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Danaher Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	4,764)	7,209)	6,433)	3,646)	3,008)
Sales	23,890)	31,471)	29,453)	22,284)	17,911)
Profitability Ratio
Net profit margin¹	19.94%	22.91%	21.84%	16.36%	16.80%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	3,560)	6,650)	6,204)	4,164)	2,593)
Sales	23,890)	31,471)	29,453)	22,284)	17,911)
Profitability Ratio
Adjusted net profit margin²	14.90%	21.13%	21.06%	18.69%	14.48%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net earnings ÷ Sales
= 100 × 4,764 ÷ 23,890 = 19.94%

² Adjusted net profit margin = 100 × Adjusted net earnings ÷ Sales
= 100 × 3,560 ÷ 23,890 = 14.90%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Danaher Corp. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	84,488)	84,350)	83,184)	76,161)	62,082)
Total Danaher stockholders’ equity	53,486)	50,082)	45,167)	39,766)	30,271)
Solvency Ratio
Financial leverage¹	1.58	1.68	1.84	1.92	2.05
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Total assets	84,488)	84,350)	83,184)	76,161)	62,082)
Adjusted total Danaher stockholders’ equity	55,678)	53,040)	48,730)	43,220)	31,923)
Solvency Ratio
Adjusted financial leverage²	1.52	1.59	1.71	1.76	1.94

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total Danaher stockholders’ equity
= 84,488 ÷ 53,486 = 1.58

² Adjusted financial leverage = Total assets ÷ Adjusted total Danaher stockholders’ equity
= 84,488 ÷ 55,678 = 1.52

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Danaher Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	4,764)	7,209)	6,433)	3,646)	3,008)
Total Danaher stockholders’ equity	53,486)	50,082)	45,167)	39,766)	30,271)
Profitability Ratio
ROE¹	8.91%	14.39%	14.24%	9.17%	9.94%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	3,560)	6,650)	6,204)	4,164)	2,593)
Adjusted total Danaher stockholders’ equity	55,678)	53,040)	48,730)	43,220)	31,923)
Profitability Ratio
Adjusted ROE²	6.39%	12.54%	12.73%	9.63%	8.12%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net earnings ÷ Total Danaher stockholders’ equity
= 100 × 4,764 ÷ 53,486 = 8.91%

² Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted total Danaher stockholders’ equity
= 100 × 3,560 ÷ 55,678 = 6.39%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Danaher Corp. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	4,764)	7,209)	6,433)	3,646)	3,008)
Total assets	84,488)	84,350)	83,184)	76,161)	62,082)
Profitability Ratio
ROA¹	5.64%	8.55%	7.73%	4.79%	4.85%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	3,560)	6,650)	6,204)	4,164)	2,593)
Total assets	84,488)	84,350)	83,184)	76,161)	62,082)
Profitability Ratio
Adjusted ROA²	4.21%	7.88%	7.46%	5.47%	4.18%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 4,764 ÷ 84,488 = 5.64%

² Adjusted ROA = 100 × Adjusted net earnings ÷ Total assets
= 100 × 3,560 ÷ 84,488 = 4.21%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Danaher Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Danaher Corp. (NYSE:DHR)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Adjustments to Financial Statements: Removal of Deferred Taxes

Danaher Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Danaher Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)