Company: DHR
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000313616-25-000043
Chunk: 163

Company: DANAHER CORP /DE/
Filing Date: 2025-02-20
Form: 10-K
Item: Item 5
Chunk 163
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2024 Sales Compared to 2023

Total sales were flat on a year-over-year basis in 2024 as sales from acquired businesses, which increased reported sales by 2.0%, were largely offset by a 1.5% decrease in core sales resulting from the factors discussed below by segment.  The impact of changes in currency exchange rates decreased reported sales by 0.5% on a year-over-year basis in 2024 primarily due to the impact of the strengthening of the U.S. dollar against most other major currencies in 2024.  Price increases contributed 1.0% to sales growth on a year-over-year basis and are reflected as a component of core sales decline above.

Operating Profit Performance

Operating profit margins decreased 140 basis points from 21.8% for the year ended December 31, 2023 to 20.4% for the year ended December 31, 2024.  The following factors impacted year-over-year operating profit margin comparisons.

2024 vs. 2023 operating profit margin comparisons were unfavorably impacted by:

•The incremental dilutive effect in 2024 of acquired businesses - 85 basis points

•2024 impairment charges related to a trade name in each of the Life Sciences and Diagnostics segments, net of 2023 impairment charges related to technology-based intangible assets in the Diagnostics segment and technology-based intangible assets and other assets in the Biotechnology segment.  Refer to Note 10 to the accompanying Consolidated Financial Statements for additional information regarding the impairments - 75 basis points

•Full year 2024 loss on the termination of a commercial arrangement in the Diagnostics segment - 25 basis points

•2023 gain from the resolution of a litigation contingency in the Life Sciences segment - 5 basis points

2024 vs. 2023 operating profit margin comparisons were favorably impacted by:

•Acquisition-related transaction costs deemed significant, settlement of pre-acquisition share-based payment awards and fair value adjustments to inventory in 2023, net of acquisition-related fair value adjustment to inventory in 2024, in each case related to the acquisition of Abcam plc (“Abcam”) - 30 basis points

•Increased leverage and productivity in the Company’s operational and administrative cost structure, net of lower 2024 core sales and the impact of product mix - 20 basis points

37

Business Segments

Sales by business segment for the years ended December 31 are as follows ($ in millions):

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