Company: DHR
Filing Date: 2025-07-22
Form Type: 10-Q
Source: 0000313616-25-000153
Chunk: 153

Company: DANAHER CORP /DE/
Filing Date: 2025-07-22
Form: 10-Q
Item: Item 2
Chunk 153
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 intangible asset amortization, depreciation and stock compensation expense, net of a year-over-year decrease in amortization of an acquisition-related inventory step-up and a 2025 pretax gain on the sale of a product line.  Depreciation expense relates to the Company’s manufacturing and operating facilities as well as instrumentation leased to customers under OTL arrangements.  Depreciation, amortization, impairments and stock compensation are noncash expenses that decrease earnings without a corresponding impact to operating cash flows.  Unrealized investment gains/losses impact net earnings without immediately impacting cash flows as the cash flow impact from investments occurs when the invested capital is returned to the Company.

•The aggregate of trade accounts receivable, inventories and trade accounts payable used $225 million in operating cash flows during the first six months of 2025, compared to $334 million of operating cash flows provided in the comparable period of 2024.  The amount of cash flow generated from or used by the aggregate of trade accounts receivable, inventories and trade accounts payable depends upon how effectively the Company manages the cash conversion cycle, which effectively represents the number of days that elapse from the day it pays for the purchase of raw materials and components to the collection of cash from its customers and can be significantly impacted by the timing of collections and payments in a period. 

•The aggregate of prepaid expenses and other assets, deferred income taxes and accrued expenses and other liabilities used $573 million of operating cash flows during the first six months of 2025, compared to $607 million of operating cash flows used in the comparable period of 2024.  The timing of cash income tax payments and customer funding, net of normal operations drove the majority of this change.

Investing Activities

Cash flows relating to investing activities consist primarily of cash used for acquisitions and capital expenditures, including instruments leased to customers, cash used for investments and cash proceeds from divestitures of businesses or assets.

Net cash used in investing activities decreased $181 million in the six-month period ended June 27, 2025 compared to the comparable period of 2024, primarily as a result of a decrease in cash paid for capital expenditures and cash used for purchases of investments.  In addition, during the six-month periods ended June 27, 2025 and June 28, 2024 the Company invested $50 million and $127 million, respectively, in non-marketable equity securities and partnerships. 

Though the relative significance of particular categories of capital investment can change from period to period,