Danaher Corp. (DHR)

Danaher’s income tax expense represents the tax liability for the current year, the tax benefit or expense for the net change in deferred tax liabilities and assets during the year, as well as reserves for unrecognized tax benefits and return to provision adjustments. Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted rates expected to be in effect during the year in which the differences reverse. Deferred tax assets generally represent items that can be used as a tax deduction or credit in Danaher’s tax return in future years for which the tax benefit has already been reflected on Danaher’s Consolidated Statements of Earnings. Danaher establishes valuation allowances for its deferred tax assets if it is more likely than not that some or all of the deferred tax asset will not be realized. Deferred tax liabilities generally represent items that have already been taken as a deduction on Danaher’s tax return but have not yet been recognized as an expense in Danaher’s Consolidated Statements of Earnings. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income tax expense in the period that includes the enactment date. Danaher provides for unrecognized tax benefits when, based upon the technical merits, it is “more likely than not” that an uncertain tax position will not be sustained upon examination. Judgment is required in evaluating tax positions and determining income tax provisions. Danaher re-evaluates the technical merits of its tax positions and may recognize an uncertain tax benefit in certain circumstances, including when: (1) a tax audit is completed; (2) applicable tax laws change, including a tax case ruling or legislative guidance; or (3) the applicable statute of limitations expires. Danaher recognizes potential accrued interest and penalties associated with unrecognized tax positions in income tax expense.

Source: 10-K (filing date: 2019-02-21).

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

US$ in thousands

	12 months ended	Dec 31, 2018		Dec 31, 2017		Dec 31, 2016		Dec 31, 2015		Dec 31, 2014
	Federal U.S.
	Non-U.S.
	State and local
	Current
	Federal U.S.
	Non-U.S.
	State and local
	Deferred
	Income tax provision

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

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

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Statutory federal income tax rate
	State income taxes, net of federal income tax benefit
	Foreign rate differential
	Resolution and expiration of statutes of limitation of uncertain tax positions
	Permanent foreign exchange losses
	Research credits, uncertain tax positions and other
	Effective income tax rate, before TCJA
	TCJA, revaluation of U.S. deferred income taxes
	TCJA, Transition Tax
	Effective income tax rate

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

Danaher Corp., components of deferred tax assets and liabilities

US$ in thousands

		Dec 31, 2018		Dec 31, 2017		Dec 31, 2016		Dec 31, 2015		Dec 31, 2014
	Allowance for doubtful accounts
	Inventories
	Pension and postretirement benefits
	Environmental and regulatory compliance
	Other accruals and prepayments
	Stock-based compensation expense
	Tax credit and loss carryforwards
	Deferred tax assets, before valuation allowances
	Valuation allowances
	Deferred tax assets
	Property, plant and equipment
	Insurance, including self-insurance
	Basis difference in LYONs
	Goodwill and other intangibles
	Unrealized gains on marketable securities
	Deferred tax liabilities
	Net deferred tax asset (liability)

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

Danaher Corp., adjustments to financial data

US$ in thousands

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Adjustment to Total Liabilities
	Total liabilities (as reported)
	Less: Noncurrent deferred tax liabilities, net
	Total liabilities (adjusted)
	Adjustment to Total Danaher Stockholders’ Equity
	Total Danaher stockholders’ equity (as reported)
	Less: Net deferred tax assets (liabilities)
	Total Danaher stockholders’ equity (adjusted)
	Adjustment to Net Earnings
	Net earnings (as reported)
	Add: Deferred income tax expense (benefit)
	Net earnings (adjusted)

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

Danaher Corp., Financial Data: Reported vs. Adjusted

Danaher Corp., adjusted ratios

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Net Profit Margin
	Reported net profit margin
	Adjusted net profit margin
	Financial Leverage
	Reported financial leverage
	Adjusted financial leverage
	Return on Equity (ROE)
	Reported ROE
	Adjusted ROE
	Return on Assets (ROA)
	Reported ROA
	Adjusted ROA

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

Danaher Corp., Ratios: Reported vs. Adjusted

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	As Reported
	Selected Financial Data (US$ in thousands)
	Net earnings
	Sales
	Ratio
	Net profit margin1
	Adjusted for Deferred Taxes
	Selected Financial Data (US$ in thousands)
	Adjusted net earnings
	Sales
	Ratio
	Adjusted net profit margin2

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

2018 Calculations

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	As Reported
	Selected Financial Data (US$ in thousands)
	Total assets
	Total Danaher stockholders’ equity
	Ratio
	Financial leverage1
	Adjusted for Deferred Taxes
	Selected Financial Data (US$ in thousands)
	Total assets
	Adjusted total Danaher stockholders’ equity
	Ratio
	Adjusted financial leverage2

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

2018 Calculations

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	As Reported
	Selected Financial Data (US$ in thousands)
	Net earnings
	Total Danaher stockholders’ equity
	Ratio
	ROE1
	Adjusted for Deferred Taxes
	Selected Financial Data (US$ in thousands)
	Adjusted net earnings
	Adjusted total Danaher stockholders’ equity
	Ratio
	Adjusted ROE2

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

2018 Calculations

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	As Reported
	Selected Financial Data (US$ in thousands)
	Net earnings
	Total assets
	Ratio
	ROA1
	Adjusted for Deferred Taxes
	Selected Financial Data (US$ in thousands)
	Adjusted net earnings
	Total assets
	Ratio
	Adjusted ROA2

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

2018 Calculations