Company: DHR
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000313616-25-000043
Chunk: 199

Company: DANAHER CORP /DE/
Filing Date: 2025-02-20
Form: 10-K
Item: Item 5
Chunk 199
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 on a combination of various financial and qualitative factors that may affect customers’ ability to pay, including customers’ financial condition, collateral, debt-servicing ability, past payment experience and credit bureau information.  In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific reserve is recorded against amounts due to reduce the recognized receivable to the amount reasonably expected to be collected.  Additions to the allowances for doubtful accounts are charged to current period earnings and amounts determined to be uncollectible are charged directly against the allowances.  If any previously-written off amounts are subsequently recovered, the amounts will increase the allowances.  If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional reserves would be required.  The Company does not believe that trade accounts receivable represents significant concentrations of credit risk because 

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of the diversified portfolio of individual customers and geographical areas.  The Company’s allowance for doubtful accounts as of December 31, 2024 reflects the Company’s best estimate of the expected future losses for its accounts receivables; however, these estimates may change and future actual losses may differ from the Company’s estimates.  The Company will continue to monitor economic conditions and will revise the estimates of the expected future losses for accounts receivable as necessary.  The Company recorded $37 million, $43 million and $20 million of expense associated with doubtful accounts related to continuing operations for the years ended December 31, 2024, 2023 and 2022, respectively. Included in the Company’s trade accounts receivable and other long-term assets as of December 31, 2024 and 2023 are $141 million and $133 million of net aggregate financing receivables, respectively.  All financing receivables are evaluated for impairment based on individual customer credit profiles.Inventories—Inventories include the costs of material, labor and overhead.  Inventories are stated at the lower of cost and net realizable value primarily using the first-in, first-out method. The classes of inventory as of December 31 are summarized as follows ($ in millions):20242023Finished goods$1,145 $1,282 Work in process465 459 Raw materials720 853 Total$2,330 $2,594 Prepaid Expenses and Other Current Assets—Prepaid expenses and other current assets primarily result from advance payments to vendors for goods and services and are capitalized until the