Company: DHR
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000313616-25-000043
Chunk: 29

Company: DANAHER CORP /DE/
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 29
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Ls.  Nonrecurring revenue includes sales of equipment, point in time software licenses and STLs.  OTLs and STLs are included in the above revenue amounts.  For the years ended December 31, 2024, 2023 and 2022, lease revenue was $402 million, $410 million and $419 million, respectively.Remaining Performance ObligationsRemaining performance obligations represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year which are fully or partially unsatisfied at the end of the period.  Remaining performance obligations include noncancelable purchase orders, the non-lease portion of minimum purchase commitments under long-term consumable supply arrangements, extended warranty and service and other long-term contracts.  These remaining performance obligations do not include revenue from contracts with customers with an original term of one year or less, revenue from long-term consumable supply arrangements with no minimum purchase requirements or revenue expected from purchases made in excess of the minimum purchase requirements or revenue from equipment leased to customers.  While the remaining performance obligation disclosure is similar in concept to backlog, the definition of remaining performance obligations excludes leases and contracts that provide the customer with the right to cancel or terminate for convenience with no substantial penalty, even if historical experience indicates the likelihood of cancellation or termination is remote.  Additionally, the Company has elected to exclude contracts with customers with an original term of one year or less from remaining performance obligations while these contracts are included within backlog.As of December 31, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $4.3 billion.  The Company expects to recognize revenue on approximately 47% of the remaining performance obligations over the next 12 months, 27% over the subsequent 12 months, and the remainder recognized thereafter.Contract BalancesThe timing of revenue recognition, billings and cash collections results in billed trade accounts receivable, unbilled receivables (“contract assets”) and deferred revenue, customer deposits and billings in excess of revenue recognized (“contract liabilities”) on the Consolidated Balance Sheets.  In addition, the Company defers certain costs incurred to obtain a contract (“contract costs”).  Contract assets, liabilities and costs are reported on the accompanying Consolidated Balance Sheets on a contract-by-contract basis.  The balances of contract assets and contract costs as of December 31, 2024 and 2023 were not significant and are classified as other current assets and other long-term assets in the Consolidated Balance Sheets.