Company: DHR
Filing Date: 2025-03-26
Form Type: ARS
Source: 0000313616-25-000085
Chunk: 80

Company: DANAHER CORP /DE/
Filing Date: 2025-03-26
Form: ARS
Chunk 80
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 Ended December 31 ($ in millions) 2024 2023 2022 Sales $ 23,875 $ 23,890 $ 26,643 Cost of sales (9,669) (9,856) (10,455) Gross profit $ 14,206 $ 14,034 $ 16,188 Gross profit margin 59.5 % 58.7 % 60.8 % The year-over-year decrease in cost of sales during 2024 as compared with 2023 was due primarily to the impact of lower year-over-year sales volumes and $87 million of charges incurred in the second quarter of 2023, primarily related to inventory in the Biotechnology segment. The decrease in cost of sales was partially offset by an acquisition-related charge of $25 million incurred in 2024 associated with the fair value adjustment to inventory recorded in connection with the acquisition of Abcam. The year-over-year increase in gross profit margin during 2024 as compared with 2023 was favorably impacted by the 2023 inventory charges referenced above, the net positive impact from the gross profit margin of recent acquisitions, and incremental year-over-year cost savings associated with productivity improvement actions, net of the impact of product mix and an acquisition-related charge in 2024. OPERATING EXPENSES Year Ended December 31 ($ in millions) 2024 2023 2022 Sales $ 23,875 $ 23,890 $ 26,643 Selling, general and administrative (“SG&A”) expenses (7,759) (7,329) (7,124) Research and development (“R&D”) expenses (1,584) (1,503) (1,528) SG&A as a % of sales 32.5 % 30.7 % 26.7 % R&D as a % of sales 6.6 % 6.3 % 5.7 % SG&A expenses as a percentage of sales increased 180 basis points on a year-over-year basis for 2024 compared with 2023. The year-over-year increase was primarily driven by $265 million of intangible asset impairment charges recorded in 2024 and the impact of recent acquisitions, including the associated amortization expenses, and the 2024 loss on the termination of a commercial arrangement of $56 million. These increases were partially offset by acquisition-related costs for the acquisition of Abcam of $87 million and intangible asset impairment charges of $64 million in 2023. Refer to