Company: DHR
Filing Date: 2025-03-26
Form Type: ARS
Source: 0000313616-25-000085
Chunk: 170

Company: DANAHER CORP /DE/
Filing Date: 2025-03-26
Form: ARS
Chunk 170
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 years until exercise), in addition to considering the vesting period and contractual term of the option, the Company analyzes and considers actual historical exercise experience for previously granted options. The Company stratifies its employee population into multiple 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. 94

The following summarizes the components of the Company’s continuing operations stock-based compensation expense for the years ended December 31 ($ in millions): 2024 2023 2022 RSUs/PSUs: Pretax compensation expense $ 159 $ 173 $ 172 Income tax benefit (33) (38) (36) RSU/PSU expense, net of income taxes 126 135 136 Stock options: Pretax compensation expense 129 133 123 Income tax benefit (26) (27) (25) Stock option expense, net of income taxes 103 106 98 Total stock-based compensation: Pretax compensation expense 288 306 295 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): Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding as of January 1, 2022