Company: DHR
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000313616-25-000043
Chunk: 289

Company: DANAHER CORP /DE/
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 289
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 the termination of a commercial arrangement - 60 basis points

•2024 impairment charge related to a trade name, net of a 2023 impairment charge related to a technology-based intangible asset - 20 basis points

COST OF SALES AND GROSS PROFIT

 Year Ended December 31($ in millions)202420232022Sales$23,875 $23,890 $26,643 Cost of sales(9,669)(9,856)(10,455)Gross profit$14,206 $14,034 $16,188 Gross profit margin59.5 %58.7 %60.8 %

The year-over-year decrease in cost of sales during 2024 as compared with 2023 was due primarily to the impact of lower year-over-year sales volumes and $87 million of charges incurred in the second quarter of 2023, primarily related to inventory in the Biotechnology segment.  The decrease in cost of sales was partially offset by an acquisition-related charge of $25 million incurred in 2024 associated with the fair value adjustment to inventory recorded in connection with the acquisition of Abcam.

The year-over-year increase in gross profit margin during 2024 as compared with 2023 was favorably impacted by the 2023 inventory charges referenced above, the net positive impact from the gross profit margin of recent acquisitions, and incremental year-over-year cost savings associated with productivity improvement actions, net of the impact of product mix and an acquisition-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