Company: DHR
Filing Date: 2025-03-26
Form Type: ARS
Source: 0000313616-25-000085
Chunk: 132

Company: DANAHER CORP /DE/
Filing Date: 2025-03-26
Form: ARS
Chunk 132
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 other intangibles (3,300) (3,429) Total deferred tax liability (4,083) (4,097) Net deferred tax liability $ (1,791) $ (2,192) The Company evaluates the future realizability of tax credits and loss carryforwards considering the anticipated future earnings of the Company’s subsidiaries as well as tax planning strategies in the associated jurisdictions. Deferred taxes associated with U.S. entities consist of net deferred tax liabilities of $337 million and $832 million as of December 31, 2024 and 2023, respectively. Deferred taxes associated with non-U.S. entities consist of net deferred tax liabilities of approximately $1.5 billion and $1.4 billion as of December 31, 2024 and 2023, respectively. During 2024, the Company’s valuation allowance decreased by $2 million due to the utilization of tax attributes which were previously not realizable, partially offset by increases related to acquisitions and certain tax benefits recognized in 2024 that are not expected to be realized. As of December 31, 2024, the total amount of the basis difference in investments indefinitely reinvested outside the United States for which deferred taxes have not been provided is approximately $14.2 billion. The income taxes applicable to repatriating such earnings are not readily determinable. As of December 31, 2024, the Company had no plans which would subject these basis differences to income taxes in the United States or elsewhere. The Tax Cuts and Jobs Act (“TCJA”) imposes tax on U.S. shareholders for global intangible low-taxed income (“GILTI”) earned by certain non-U.S. subsidiaries. The Company has elected the period cost method for its accounting for GILTI. 74

The effective income tax rate from continuing operations for the years ended December 31 varies from the U.S. statutory federal income tax rate as follows: Percentage of Pretax Earnings 2024 2023 2022 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) in tax rate resulting from: State income taxes (net of federal income tax benefit) 0.8 % 1.2 % 1.2 % Non-U.S. rate differential (2.9) % (3.4) % (3.4) % Resolution and expiration of statutes of limitation of uncertain tax positions (0.6) % (0.4)