Company: DHR
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000313616-25-000043
Chunk: 15

Company: DANAHER CORP /DE/
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 15
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 returns, customer allowances and rebates are estimated based on historical experience and known trends.  For extended warranty and service, control transfers to the customer over the term of the arrangement and revenue is recognized based upon the period of time elapsed under the arrangement.  Revenue for other long-term contracts is generally recognized based upon the cost-to-cost measure of progress, provided that the Company meets the criteria associated with transferring control of the good or service over time.Certain of the Company’s revenues relate to operating-type lease (“OTL”) arrangements.  Leases are outside the scope of ASC 606 and are therefore accounted for in accordance with ASC 842, Leases.  Equipment lease revenue for OTL agreements is recognized on a straight-line basis over the life of the lease, and the cost of customer-leased equipment is recorded within property, plant and equipment in the accompanying Consolidated Balance Sheets and depreciated over the equipment’s estimated useful life.  Depreciation expense associated with the leased equipment under OTL arrangements is reflected in cost of sales in the accompanying Consolidated Statements of Earnings.  The OTLs are generally not cancellable until after an initial term and may or may not require the customer to purchase a minimum number of consumables or tests throughout the contract term.  The Company also enters into sales-type lease (“STL”) arrangements with customers which result in earlier recognition of equipment lease revenue as compared to an OTL.

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For a contract with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation on a relative standalone selling price basis using the Company’s best estimate of the standalone selling price of each distinct product or service in the contract.  The primary method used to estimate standalone selling price is the price observed in standalone sales to customers.  Allocation of the transaction price is determined at the contracts’ inception. Shipping and Handling—Shipping and handling costs are included as a component of cost of sales.  Revenue derived from shipping and handling costs billed to customers is included in sales.Advertising—Advertising costs are expensed as incurred.Research and Development—The Company conducts research and development activities for the purpose of developing new products, enhancing the functionality, effectiveness, ease of use and reliability of the Company’s existing products and expanding the applications for which uses of the Company’s products are appropriate.  Research and development costs are expensed as incurred.Contract Termination—The Company has certain contractual relationships with distributors who sell the Company’s products.  During the year ended December 31, 2024 the Company terminated