Danaher Corp. (DHR)

Investments over which Danaher has a significant influence but not a controlling interest, are accounted for using the equity method of accounting which requires Danaher to record its initial investment at cost and adjust the balance each period for Danaher’s share of the investee’s income or loss and dividends paid. Danaher also invests in innovative start-up companies where Danaher has neither control of nor significant influence over the investee. Beginning in 2018 with the adoption of Accounting Standards Update (“ASU”) No. 2016-01, Danaher measures these non-marketable equity securities at fair value and recognizes changes in fair value in net earnings. For securities without readily available fair values, Danaher has elected the measurement alternative to record these investments at cost and to adjust for impairments and observable price changes with a same or similar security from the same issuer within net earnings (the “Fair Value Alternative”). Additionally, Danaher is a limited partner in a partnership that invests in start-up companies. While the partnership records these investments at fair value, Danaher’s investment in the partnership is accounted for under the equity method of accounting. Danaher made minority investments in non-marketable equity securities and equity method investments totaling $149 million in 2018. No significant realized or unrealized gains or losses were recorded in 2018 with respect to these investments.

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

Danaher Corp., adjustment to Net Earnings

USD $ in thousands

	12 months ended	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Net earnings (as reported)
	Add: Unrealized gain (loss) on available-for-sale securities
	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., 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
	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 (USD $ in thousands)
	Net earnings
	Sales
	Ratio
	Net profit margin1
	Adjusted: Mark to Market Available-for-sale Securities
	Selected Financial Data (USD $ 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 (USD $ in thousands)
	Net earnings
	Total Danaher stockholders’ equity
	Ratio
	ROE1
	Adjusted: Mark to Market Available-for-sale Securities
	Selected Financial Data (USD $ in thousands)
	Adjusted net earnings
	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 (USD $ in thousands)
	Net earnings
	Total assets
	Ratio
	ROA1
	Adjusted: Mark to Market Available-for-sale Securities
	Selected Financial Data (USD $ 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