Company: DHR
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000313616-25-000043
Chunk: 72

Company: DANAHER CORP /DE/
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 72
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 groups for option valuation and attribution purposes based upon distinctive patterns of forfeiture rates and option holding periods, as indicated by the ranges set forth in the table above for the risk-free interest rate and the expected years until exercise.The amount of stock-based compensation expense recognized during a period is also based on the portion of the awards that are ultimately expected to vest.  The Company estimates pre-vesting forfeitures at the time of grant by analyzing historical data and revises those estimates in subsequent periods if actual forfeitures differ from those estimates.  Ultimately, the total expense recognized over the vesting period will equal the fair value of awards that actually vest.

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The following summarizes the components of the Company’s continuing operations stock-based compensation expense for the years ended December 31 ($ in millions): 202420232022RSUs/PSUs:Pretax compensation expense$159 $173 $172 Income tax benefit(33)(38)(36)RSU/PSU expense, net of income taxes126 135 136 Stock options:Pretax compensation expense129 133 123 Income tax benefit(26)(27)(25)Stock option expense, net of income taxes103 106 98 Total stock-based compensation:Pretax compensation expense288 306 295 Income tax benefit(59)(65)(61)Total stock-based compensation expense, net of income taxes$229 $241 $234 Stock-based compensation has been recognized as a component of selling, general and administrative expenses in the accompanying Consolidated Statements of Earnings.  As of December 31, 2024, $144 million of total unrecognized compensation cost related to RSUs/PSUs is expected to be recognized over a weighted average period of approximately two years.  As of December 31, 2024, $174 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted average period of approximately two years.  Future compensation amounts will be adjusted for any changes in estimated forfeitures.The following summarizes option activity under the Company’s stock plans (in millions, except weighted exercise price and number of years):OptionsWeighted Average Exercise PriceWeighted Average Remaining Contractual Term (in years)Aggregate Intrinsic ValueOutstanding as of January 1, 202217.5 $112.91 Granted 2.6 236.68 Exercised (1.8)77.27 Cancelled/forfeited (0.7)184.80 Outstanding