Company: DHR
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000313616-25-000043
Chunk: 30

Company: DANAHER CORP /DE/
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 30
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 The balance of contract costs are generally amortized into earnings on a straight-line basis (which is consistent with the transfer of control for the related goods or services).  Amortization expense related to these costs for the years ended December 31, 2024 and 2023 was also not significant.  The costs to obtain a contract where the amortization period for the related asset is one year or less are expensed as incurred and recorded within selling, general and administrative expenses in the accompanying Consolidated Statements of Earnings.The Company often receives cash payments from customers in advance of the Company’s performance resulting in contract liabilities that are classified as either current or long-term in the Consolidated Balance Sheets based on the timing of when the Company expects to recognize revenue.  As of December 31, 2024 and 2023, contract liabilities were approximately $1.5 billion and $1.7 billion, respectively, and are included within accrued expenses and other liabilities and other long-term liabilities in the accompanying Consolidated Balance Sheets.  The decrease in the contract liability balance during the year ended December 31, 2024 was primarily a result of amounts recognized as revenue and the impact of foreign currency, partially offset by cash payments received in advance of satisfying performance obligations.  Revenue recognized during the years ended December 31, 2024 and 2023 that was included in the opening contract liability balance each year was approximately $1.3 billion.

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NOTE 6.  SEGMENT INFORMATION 

The Company operates and reports its results in three separate business segments consisting of the Biotechnology, Life Sciences and Diagnostics segments.  Operating profit represents total revenues less operating expenses, excluding nonoperating income and expense, interest and income taxes.  The identifiable assets by segment are those used in each segment’s operations.  Intersegment amounts are not significant and are eliminated to arrive at consolidated totals.  The Company’s President and Chief Executive Officer is the chief operating decision maker (“CODM”).  The CODM uses segment sales and operating profit to allocate resources (including employees and financial or capital resources), to assess the performance of the segments and in the determination of the compensation for certain employees for each segment predominantly in the annual budget process.  The CODM reviews forecast-to-actual variances in segment sales and operating profit on a monthly basis when making decisions about allocating capital and personnel to the segments. The table below reconciles segment sales to segment operating profit with the expense categories presented reflecting the expenses that the Company has determined to be significant segment expenses