Company: DHR
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000313616-25-000043
Chunk: 38

Company: DANAHER CORP /DE/
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 38
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 to the Company’s financial statements, including cash flows and the effective tax rate.  As the settlement with the IRS was specific to the audit period, the settlement does not preclude the IRS from proposing similar adjustments to the Company’s self-insurance programs with respect to periods after 2018.  Management believes the positions the Company has taken in its U.S. tax returns are in accordance with the relevant tax laws. Tax authorities in Denmark have issued tax assessments related to interest accrued by certain of the Company’s subsidiaries for the years 2004 through 2015, totaling approximately DKK 2.1 billion including applicable accrued interest (approximately $288 million based on the exchange rate as of December 31, 2024). Management believes the positions the Company has taken in Denmark are in accordance with the relevant tax laws and is actively defending them under appeal to the Danish National Tax Tribunal.  The Company intends on pursuing this matter to the Danish High Court and Danish Supreme Court should the current appeal be unsuccessful.  While the ultimate resolution is uncertain and may take years to resolve, taking into account the provisions and payments the Company has previously made related to these assessments to mitigate further interest accrual claims, the Company does not expect the resolution of this matter to have a future material adverse impact on the Company’s financial statements, including its cash flow and effective tax rate.

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Management estimates that it is reasonably possible that the amount of unrecognized tax benefits may be reduced by approximately $305 million within 12 months as a result of resolution of worldwide tax matters, net of payments for tax audit settlements and/or statute of limitations expirations.  This includes future resolution of uncertain tax positions related to discontinued operations that may result in additional charges or credits to earnings from discontinued operations in the accompanying Consolidated Statements of Earnings (refer to Note 3).The Company operates in various non-U.S. jurisdictions where income tax incentives and rulings have been granted for specific periods of time.  In Puerto Rico and Singapore, the Company has various tax rulings and tax holiday arrangements which reduce the overall effective tax rate of the Company.  The various rulings and tax holidays expire between 2025 and 2027.  As of December 31, 2024, the Company had satisfied the conditions enumerated in these agreements.  Included in the accompanying Consolidated Financial Statements are tax benefits of $33 million, $83 million and $71 million (or $0.04, $0.11 and $0.10 per diluted common share) for 2024,