Company: DHR
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000313616-25-000043
Chunk: 169

Company: DANAHER CORP /DE/
Filing Date: 2025-02-20
Form: 10-K
Item: Item 5
Chunk 169
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-related charge in 2024.

OPERATING EXPENSES

 Year Ended December 31($ in millions)202420232022Sales$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 sales32.5 %30.7 %26.7 %R&D as a % of sales6.6 %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 Note 10 to the accompanying Consolidated Financial Statements for additional information regarding the impairments.

R&D expenses (consisting principally of internal and contract engineering personnel costs) as a percentage of sales increased in 2024 as compared with 2023, primarily due to increased spending on R&D activities, including the impact of recent acquisitions.  

NONOPERATING INCOME (EXPENSE) 

Nonoperating income (expense) consists primarily of net unrealized and realized gains and losses resulting from changes in the fair value of the Company’s investments in equity securities and investments in partnerships, the non-service cost components of net periodic benefit costs, gains on the sale of product lines and impairments of equity method investments.  Refer to Note 8 to the Consolidated Financial Statements. 

41

INTEREST COSTS

Interest expense of $278 million for 2024 was $8 million lower than in 2023, due to lower balances on borrowings in 2024 compared to 2023, partially offset by higher average interest rates on the Company’s commercial paper borrowings.  Interest income of $117 million for 2024 was $186 million lower than in 2023, due to lower average cash balances in 2024 primarily as a result of the use