WASHINGTON, Jan. 31, 2017 /PRNewswire/ -- Danaher
Corporation (NYSE: DHR) today announced results for the fourth
quarter and full year 2016. All results in this release reflect
only continuing operations unless otherwise noted. For the quarter
ended December 31, 2016, net earnings
were $747.0 million, or $1.07 per diluted share which represents a 42.5%
year-over-year increase.
Non-GAAP adjusted diluted net earnings per share was
$1.05 per share, which reflects the
adjustments identified in the attached reconciliation schedule.
This represents a 15.5% increase over the comparable 2015 amount.
For the fourth quarter 2016, revenues increased 6.0% year-over-year
to $4.6 billion, with core revenue
growth of 3.5% (non-GAAP).
For the full year 2016, net earnings were $2.2 billion, or $3.08 per diluted share which represents a 24.5%
year-over-year increase. Non-GAAP adjusted diluted net earnings per
share was $3.61 per share, which
reflects the adjustments identified in the attached reconciliation
schedule. This represents a 21.0% increase over the
comparable 2015 amount. Revenues for the full year 2016 increased
17.0% to $16.9 billion, with core
revenue growth of 3.0% (non-GAAP). The Company generated
strong operating cash flow of $3.1
billion for the full year 2016.
For the first quarter 2017, the Company anticipates that diluted
net earnings per share will be in the range of $0.64 to $0.67. Non-GAAP adjusted diluted net
earnings per share is expected to be $0.82
to $0.85, reflecting the adjustments identified on the
attached reconciliation schedule.
For the full year 2017, the Company anticipates diluted net
earnings per share to be $3.13 to
$3.23. The Company continues to expect its non-GAAP
adjusted diluted net earnings per share to be in the range of
$3.85 to $3.95, reflecting the
adjustments identified on the attached reconciliation schedule.
Thomas P. Joyce, Jr., President
and Chief Executive Officer, stated, "We are very pleased with our
strong fourth quarter results, capping off a transformative year
for Danaher. In 2016, the team delivered double-digit earnings
growth, meaningful margin expansion, and strong free cash flow. We
also executed on a number of strategically significant acquisitions
during the year, including Cepheid and Phenomenex."
Joyce added, "We believe that the strength of our portfolio,
combined with the power of DBS, provides the foundation for
enhancing our growth trajectory and delivering long-term
outperformance."
Danaher will discuss its results during its quarterly investor
conference call today starting at 7:30 a.m.
ET. The call and an accompanying slide presentation will be
webcast on the "Investors" section of Danaher's website,
www.danaher.com, under the subheading "Events & Presentations."
A replay of the webcast will be available in the same section of
Danaher's website shortly after the conclusion of the presentation
and will remain available until the next quarterly earnings
call.
The conference call can be accessed by dialing (800) 344-6698
within the U.S. or by dialing (785) 830-7979 outside the U.S. a few
minutes before the 7:30 a.m. ET start
and telling the operator that you are dialing in for Danaher's
investor conference call (access code 4628756). A replay of the
conference call will be available shortly after the conclusion of
the call and until Tuesday, February 7,
2017. You can access the replay dial-in information on the
"Investors" section of Danaher's website under the subheading
"Events & Presentations." In addition, presentation materials
relating to Danaher's results have been posted to the "Investors"
section of Danaher's website under the subheading "Financial
Reports & Earnings."
ABOUT DANAHER
Danaher is a global science and technology innovator committed
to helping its customers solve complex challenges and improving
quality of life around the world. Its family of world class brands
has leadership positions in some of the most demanding and
attractive industries, including health care, environmental and
industrial. With more than 20 operating companies, Danaher's
globally diverse team of over 62,000 associates is united by a
common culture and operating system, the Danaher Business System.
For more information, please visit www.danaher.com.
NON-GAAP MEASURES
In addition to the financial measures prepared in accordance
with generally accepted accounting principles (GAAP), this earnings
release also contains non-GAAP financial measures. Calculations of
these measures, the reasons why we believe these measures provide
useful information to investors, a reconciliation of these measures
to the most directly comparable GAAP measures and other information
relating to these non-GAAP measures are included in the
supplemental reconciliation schedule attached.
FORWARD-LOOKING STATEMENTS
Statements in this release that are not strictly historical,
including the statements regarding the Company's anticipated
financial performance for the first quarter and full year 2017, the
Company's future prospects and any other statements regarding
events or developments that we believe or anticipate will or may
occur in the future are "forward-looking" statements within the
meaning of the federal securities laws. There are a number of
important factors that could cause actual results, developments and
business decisions to differ materially from those suggested or
indicated by such forward-looking statements and you should not
place undue reliance on any such forward-looking statements. These
factors include, among other things, deterioration of or
instability in the economy, the markets we serve and the financial
markets, the impact of our restructuring activities on our ability
to grow, contractions or growth rates and cyclicality of markets we
serve, competition, our ability to develop and successfully market
new products and technologies and expand into new markets, the
potential for improper conduct by our employees, agents or business
partners, our ability to successfully identify, consummate and
integrate appropriate acquisitions and successfully complete
divestitures and other dispositions, our ability to integrate the
recent acquisitions of Pall Corporation and Cepheid and achieve the
anticipated benefits of such transactions, contingent liabilities
relating to acquisitions and divestitures (including tax-related
and other contingent liabilities relating to the distributions of
each of Fortive Corporation and our communications business), our
compliance with applicable laws and regulations (including
regulations relating to medical devices and the health care
industry) and changes in applicable laws and regulations, our
ability to effectively address cost reductions and other changes in
the health care industry, risks relating to potential impairment of
goodwill and other intangible assets, currency exchange rates, tax
audits and changes in our tax rate and income tax liabilities,
litigation and other contingent liabilities including intellectual
property and environmental, health and safety matters, risks
relating to product, service or software defects, product liability
and recalls, risks relating to product manufacturing, the impact of
our debt obligations on our operations and liquidity, our
relationships with and the performance of our channel partners,
commodity costs and surcharges, our ability to adjust purchases and
manufacturing capacity to reflect market conditions, reliance on
sole sources of supply, labor matters, international economic,
political, legal, compliance and business factors (including the
impact of the UK referendum to leave the EU), disruptions relating
to man-made and natural disasters, security breaches or other
disruptions of our information technology systems and pension plan
costs. Additional information regarding the factors that may cause
actual results to differ materially from these forward-looking
statements is available in our SEC filings, including our 2015
Annual Report on Form 10-K and Quarterly Report on Form 10-Q for
the third quarter of 2016. These forward-looking statements speak
only as of the date of this release and the Company does not assume
any obligation to update or revise any forward-looking statement,
whether as a result of new information, future events and
developments or otherwise.
DANAHER
CORPORATION
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
Adjusted Diluted
Net Earnings Per Share from Continuing Operations
|
|
|
Three Month Period
Ended
|
|
Year
Ended
|
|
|
December
31,
2016
|
|
December
31,
2015
|
|
December
31,
2016
|
|
December
31,
2015
|
|
Diluted Net
Earnings Per Share from
Continuing
Operations (GAAP)
|
$
|
1.07
|
|
|
$
|
0.75
|
|
|
$
|
3.08
|
|
|
$
|
2.47
|
|
|
Pretax amortization
of acquisition-related
intangible assets
A
|
0.22
|
|
A
|
0.20
|
|
A
|
0.83
|
|
A
|
0.56
|
|
A
|
Pretax charge for
early extinguishment of
borrowings
B
|
—
|
|
|
—
|
|
|
0.26
|
|
B
|
—
|
|
|
Pretax gains on
resolution of acquisition-related
matters
C
|
—
|
|
|
—
|
|
|
(0.02)
|
|
C
|
—
|
|
|
Pretax gain on sales
of investments D,E
|
—
|
|
|
—
|
|
|
(0.32)
|
|
E
|
(0.02)
|
|
D
|
Pretax
acquisition-related transaction costs deemed
significant, change
in control payments and
restructuring costs
and fair value adjustments to
inventory and
deferred revenue F,G
|
0.12
|
|
G
|
0.09
|
|
F
|
0.12
|
|
G
|
0.21
|
|
F
|
Tax effect of all
adjustments reflected above H
|
(0.09)
|
|
H
|
(0.07)
|
|
H
|
(0.21)
|
|
H
|
(0.16)
|
|
H
|
Discrete tax
adjustments and other tax-related
adjustments
I,J
|
(0.27)
|
|
J
|
(0.06)
|
|
I
|
(0.13)
|
|
J
|
(0.08)
|
|
I
|
Adjusted Diluted
Net Earnings Per Share from
Continuing
Operations (Non-GAAP)
|
$
|
1.05
|
|
|
$
|
0.91
|
|
|
$
|
3.61
|
|
|
$
|
2.98
|
|
|
Forecasted
Adjusted Diluted Net Earnings Per Share from Continuing
Operations
|
|
|
Three Month Period
Ending
March 31, 2017
|
|
Year
Ending
December 31,
2017
|
|
|
Low
End
|
|
High
End
|
|
Low
End
|
|
High
End
|
|
Forecasted Diluted
Net Earnings Per Share from
Continuing
Operations (GAAP)
|
$
|
0.64
|
|
|
$
|
0.67
|
|
|
$
|
3.13
|
|
|
$
|
3.23
|
|
|
Anticipated pretax
amortization of acquisition-
related intangible
assets A
|
0.23
|
|
A
|
0.23
|
|
A
|
0.92
|
|
A
|
0.92
|
|
A
|
Tax effect of all
adjustments reflected above H
|
(0.05)
|
|
H
|
(0.05)
|
|
H
|
(0.20)
|
|
H
|
(0.20)
|
|
H
|
Forecasted
Adjusted Diluted Net Earnings Per
Share from
Continuing Operations (Non-GAAP)
1
|
$
|
0.82
|
|
|
$
|
0.85
|
|
|
$
|
3.85
|
|
|
$
|
3.95
|
|
|
|
|
1
|
The forward-looking
estimates set forth above do not reflect future gains and charges
that are inherently difficult to predict and estimate due to their
unknown timing, effect and/or significance, such as certain future
gains or losses on the sale of investments, acquisition or
divestiture-related gains or charges and discrete tax
items.
|
Core Revenue
Growth
|
|
|
|
|
|
Three Month Period
Ended
December 31, 2016
vs.
Comparable 2015
Period
|
|
Year
Ended
December 31, 2016
vs.
Comparable 2015
Period
|
Total Revenue
Growth from Continuing Operations (GAAP)
|
6.0
|
%
|
|
17.0
|
%
|
|
|
|
|
Components of Revenue
Growth
|
|
|
|
Core (non-GAAP)
2
|
3.5
|
%
|
|
3.0
|
%
|
Acquisitions
(non-GAAP)
|
4.0
|
%
|
|
15.0
|
%
|
Impact of currency
translation (non-GAAP)
|
(1.5)
|
%
|
|
(1.0)
|
%
|
Total Revenue Growth
from Continuing Operations (GAAP)
|
6.0
|
%
|
|
17.0
|
%
|
|
2
|
We use the term "core
revenue" to refer to GAAP revenue from continuing operations
excluding (1) sales from acquired businesses recorded prior to the
first anniversary of the acquisition less the amount of sales
attributable to divested businesses or product lines not considered
discontinued operations ("acquisition sales") and (2) the impact of
currency translation. The portion of GAAP revenue from
continuing operations attributable to currency translation is
calculated as the difference between (a) the period-to-period
change in revenue (excluding acquisition sales) and (b) the
period-to-period change in revenue (excluding acquisition sales)
after applying current period foreign exchange rates to the prior
year period. We use the term "core revenue growth" to refer
to the measure of comparing current period core revenue with the
corresponding period of the prior year.
|
DANAHER
CORPORATION
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
|
(continued)
|
|
A
Amortization of acquisition-related intangible assets in the
following historical and forecasted periods ($ in millions) (only
the pretax
amounts set forth below are reflected in the amortization line item
above):
|
|
|
|
|
|
|
|
|
|
|
Forecasted
|
|
Three Month Period
Ended
|
|
Year
Ended
|
|
Three
Month
Period
Ending
|
|
Year
Ending
|
|
December
31,
2016
|
|
December
31,
2015
|
|
December
31,
2016
|
|
December
31,
2015
|
|
March 31,
2017
|
|
December
31,
2017
|
Pretax
|
$
|
156.5
|
|
|
$
|
137.4
|
|
|
$
|
583.1
|
|
|
$
|
396.8
|
|
|
$
|
162.2
|
|
|
$
|
649.3
|
|
After-tax
|
123.9
|
|
|
107.2
|
|
|
449.7
|
|
|
313.4
|
|
|
127.3
|
|
|
509.7
|
|
|
B
|
Charge for early
extinguishment of borrowings ($179 million pretax as presented in
this line item, $112 million after-tax) incurred in the third
quarter of 2016. The Company did not incur any charges
related to the early extinguishment of borrowings in any other
quarter of 2016 or in 2015, and therefore no such elimination item
is reflected in the calculation of Adjusted Diluted Net Earnings
Per Share From Continuing Operations for any other period
presented.
|
|
|
C
|
Gains on resolution
of acquisition-related matters ($18 million pretax is presented in
this line item, $14 million after-tax) for the year ended December
31, 2016.
|
|
|
D
|
Gain on sales of
investments in the year ended December 31, 2015 ($12 million pretax
as presented in this line item, $8 million after-tax).
|
|
|
E
|
Gain on sales of
investments in the year ended December 31, 2016 ($223 million
pretax as presented in this line item, $140 million
after-tax).
|
|
|
F
|
Fair value
adjustments to inventory and deferred revenue, net of the impact of
freezing pension benefits, in each case related to the acquisition
of Pall Corporation and incurred in the three month period ended
December 31, 2015 ($60 million pretax as presented in this line
item, $48 million after-tax); acquisition-related transaction costs
deemed significant ($21 million pretax as presented in this line
item, $16 million after-tax), change in control payments, and fair
value adjustments to inventory and deferred revenue, net of the
impact of freezing pension benefits, in each case related primarily
to the acquisition of Pall Corporation and incurred in the year
ended December 31, 2015 ($127 million pretax as presented in this
line item, $99 million after-tax). The Company deems
acquisition-related transaction costs incurred in a given period to
be significant (generally relating to the Company's larger
acquisitions) if it determines that such costs exceed the range of
acquisition-related transaction costs typical for the Company in a
given period.
|
|
|
G
|
Acquisition-related
transaction costs deemed significant ($12 million pretax as
presented in this line item, $9 million after-tax), change in
control payments and restructuring costs ($49 million pretax as
presented in this line item, $30 million after-tax), and fair value
adjustments to inventory and deferred revenue ($23 million pretax
as presented in this line item, $14 million after-tax), in each
case related primarily to the acquisition of Cepheid and incurred
in the three months and year ended December 31, 2016.
|
|
|
H
|
This line item
reflects the aggregate tax effect of all nontax adjustments
reflected in the table above. In addition, the footnotes
above indicate the after-tax amount of each individual adjustment
item. Danaher estimates the tax effect of the adjustment
items identified in the reconciliation schedule above by applying
Danaher's overall estimated effective tax rate to the pretax
amount, unless the nature of the item and/or the tax jurisdiction
in which the item has been recorded requires application of a
specific tax rate or tax treatment, in which case the tax effect of
such item is estimated by applying such specific tax rate or tax
treatment.
|
|
|
I
|
Discrete income tax
gains net of discrete income tax charges incurred in the three
months ($41 million) and the year ($58 million) ended December 31,
2015.
|
|
|
J
|
Discrete income tax
gains net of discrete income tax charges incurred in the three
months ended December 31, 2016 ($190 million). Discrete
income tax gains net of discrete income tax charges and Fortive
Corporation separation-related tax costs related to repatriation of
earnings and legal entity realignments incurred in the year ended
December 31, 2016 ($91 million).
|
Statement Regarding Non-GAAP Measures
Each of the non-GAAP measures set forth above should be
considered in addition to, and not as a replacement for or superior
to, the comparable GAAP measure, and may not be comparable to
similarly titled measures reported by other companies.
Management believes that these measures provide useful information
to investors by offering additional ways of viewing Danaher
Corporation's ("Danaher" or the "Company") results that, when
reconciled to the corresponding GAAP measure, help our investors
to:
- (with respect to the non-GAAP profitability measures)
understand the long-term profitability trends of our business and
compare our profitability to prior and future periods and to our
peers; and
- (with respect to the non-GAAP revenue measures) identify
underlying growth trends in our business and compare our revenue
performance with prior and future periods and to our peers.
The items excluded from the non-GAAP profitability and revenue
measures set forth above have been excluded for the following
reasons:
- (with respect to the non-GAAP profitability measures) we
exclude the amortization of acquisition-related intangible assets
because the amount and timing of such charges are significantly
impacted by the timing, size, number and nature of the acquisitions
we consummate. While we have a history of significant acquisition
activity we do not acquire businesses on a predictable cycle, and
the amount of an acquisition's purchase price allocated to
intangible assets and related amortization term are unique to each
acquisition and can vary significantly from acquisition to
acquisition. Exclusion of this amortization expense facilitates
more consistent comparisons of operating results over time between
our newly acquired and long-held businesses, and with both
acquisitive and non-acquisitive peer companies. We believe however
that it is important for investors to understand that such
intangible assets contribute to revenue generation and that
intangible asset amortization related to past acquisitions will
recur in future periods until such intangible assets have been
fully amortized. With respect to the other items excluded from the
non-GAAP profitability measures, we exclude these items because
they are of a nature and/or size that occur with inconsistent
frequency, occur for reasons that may be unrelated to Danaher's
commercial performance during the period and/or we believe are not
indicative of Danaher's ongoing operating costs or gains in a given
period. With respect to each of the items excluded from the
non-GAAP profitability measures, we believe that such items may
obscure underlying business trends and make comparisons of
long-term performance difficult.
- (with respect to the non-GAAP revenue measures) (1) we exclude
the impact of currency translation because it is not under
management's control, is subject to volatility and can obscure
underlying business trends, and (2) we exclude the effect of
acquisitions and divested product lines because the nature, size
and number of such transactions can vary dramatically from period
to period and between us and our peers, which we believe may
obscure underlying business trends and make comparisons of
long-term performance difficult.
DANAHER
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS (unaudited)
|
($ and shares in
millions, except per share amount)
|
|
|
As of December
31
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and
equivalents
|
$
|
963.7
|
|
|
$
|
790.8
|
|
Trade accounts
receivable, less allowance for doubtful accounts of $102.4 and
$88.3,
respectively
|
3,186.1
|
|
|
2,985.1
|
|
Inventories
|
1,709.4
|
|
|
1,573.1
|
|
Prepaid expenses and
other current assets
|
805.9
|
|
|
889.5
|
|
Current assets,
discontinued operations
|
—
|
|
|
1,598.2
|
|
Total current
assets
|
6,665.1
|
|
|
7,836.7
|
|
Property, plant and
equipment, net
|
2,354.0
|
|
|
2,302.7
|
|
Other
assets
|
631.3
|
|
|
845.3
|
|
Goodwill
|
23,826.9
|
|
|
21,014.9
|
|
Other intangible
assets, net
|
11,818.0
|
|
|
10,545.3
|
|
Other assets,
discontinued operations
|
—
|
|
|
5,677.3
|
|
Total
assets
|
$
|
45,295.3
|
|
|
$
|
48,222.2
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Notes payable and
current portion of long-term debt
|
$
|
2,594.8
|
|
|
$
|
845.2
|
|
Trade accounts
payable
|
1,485.0
|
|
|
1,391.9
|
|
Accrued expenses and
other liabilities
|
2,794.2
|
|
|
2,609.4
|
|
Current liabilities,
discontinued operations
|
—
|
|
|
1,323.9
|
|
Total current
liabilities
|
6,874.0
|
|
|
6,170.4
|
|
Other long-term
liabilities
|
5,670.3
|
|
|
5,750.0
|
|
Long-term
debt
|
9,674.2
|
|
|
12,025.2
|
|
Long-term
liabilities, discontinued operations
|
—
|
|
|
512.6
|
|
Stockholders'
equity:
|
|
|
|
Common stock - $0.01
par value, 2.0 billion shares authorized; 807.7 and 801.6
issued;
692.2 and 686.8
outstanding, respectively
|
8.1
|
|
|
8.0
|
|
Additional paid-in
capital
|
5,312.9
|
|
|
4,981.2
|
|
Retained
earnings
|
20,703.5
|
|
|
21,012.3
|
|
Accumulated other
comprehensive income (loss)
|
(3,021.7)
|
|
|
(2,311.2)
|
|
Total Danaher
stockholders' equity
|
23,002.8
|
|
|
23,690.3
|
|
Noncontrolling
interests
|
74.0
|
|
|
73.7
|
|
Total stockholders'
equity
|
23,076.8
|
|
|
23,764.0
|
|
Total liabilities and
stockholders' equity
|
$
|
45,295.3
|
|
|
$
|
48,222.2
|
|
|
This information is
presented for reference only. Final audited financial
statements will include footnotes, which should be referenced when
available, to more fully understand the contents of this
information.
|
DANAHER
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF EARNINGS (unaudited)
|
($ and shares in
millions, except per share amounts)
|
|
|
|
|
|
|
Three Month Period
Ended
December
31
|
|
Year Ended
December 31
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Sales
|
$
|
4,584.3
|
|
|
$
|
4,323.0
|
|
|
$
|
16,882.4
|
|
|
$
|
14,433.7
|
|
Cost of
sales
|
(2,084.3)
|
|
|
(2,065.8)
|
|
|
(7,547.8)
|
|
|
(6,662.6)
|
|
Gross
profit
|
2,500.0
|
|
|
2,257.2
|
|
|
9,334.6
|
|
|
7,771.1
|
|
Operating
costs:
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
(1,503.4)
|
|
|
(1,369.5)
|
|
|
(5,608.6)
|
|
|
(4,747.5)
|
|
Research and
development expenses
|
(268.0)
|
|
|
(236.1)
|
|
|
(975.1)
|
|
|
(861.4)
|
|
Operating
profit
|
728.6
|
|
|
651.6
|
|
|
2,750.9
|
|
|
2,162.2
|
|
Nonoperating income
(expense):
|
|
|
|
|
|
|
|
Other
income
|
—
|
|
|
—
|
|
|
223.4
|
|
|
12.4
|
|
Loss on early
extinguishment of borrowings
|
—
|
|
|
—
|
|
|
(178.8)
|
|
|
—
|
|
Interest
expense
|
(32.3)
|
|
|
(50.7)
|
|
|
(184.4)
|
|
|
(139.8)
|
|
Interest
income
|
0.1
|
|
|
—
|
|
|
0.2
|
|
|
4.6
|
|
Earnings from
continuing operations before income
taxes
|
696.4
|
|
|
600.9
|
|
|
2,611.3
|
|
|
2,039.4
|
|
Income
taxes
|
50.6
|
|
|
(79.9)
|
|
|
(457.9)
|
|
|
(292.7)
|
|
Net earnings from
continuing operations
|
747.0
|
|
|
521.0
|
|
|
2,153.4
|
|
|
1,746.7
|
|
Earnings from
discontinued operations, net of income
taxes
|
—
|
|
|
167.6
|
|
|
400.3
|
|
|
1,610.7
|
|
Net
earnings
|
$
|
747.0
|
|
|
$
|
688.6
|
|
|
$
|
2,553.7
|
|
|
$
|
3,357.4
|
|
Net earnings per
share from continuing operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
1.08
|
|
|
$
|
0.76
|
|
|
$
|
3.12
|
|
|
$
|
2.50
|
|
Diluted
|
$
|
1.07
|
|
|
$
|
0.75
|
|
|
$
|
3.08
|
|
|
$
|
2.47
|
|
Net earnings per
share from discontinued operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
—
|
|
|
$
|
0.24
|
|
|
$
|
0.58
|
|
|
$
|
2.31
|
|
Diluted
|
$
|
—
|
|
|
$
|
0.24
|
|
|
$
|
0.57
|
|
|
$
|
2.27
|
|
Net earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
1.08
|
|
|
$
|
1.00
|
|
|
$
|
3.69
|
|
*
|
$
|
4.81
|
|
Diluted
|
$
|
1.07
|
|
|
$
|
0.99
|
|
|
$
|
3.65
|
|
|
$
|
4.74
|
|
Average common stock
and common equivalent shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
693.0
|
|
|
687.4
|
|
|
691.2
|
|
|
698.1
|
|
Diluted
|
701.9
|
|
|
697.1
|
|
|
699.8
|
|
|
708.5
|
|
|
* Net earnings per
share amount does not add due to rounding.
|
|
This information is
presented for reference only. Final audited financial
statements will include footnotes, which should be referenced when
available, to more fully understand the contents of this
information.
|
DANAHER
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (unaudited)
|
($ and shares in
millions)
|
|
|
Year Ended
December 31
|
|
2016
|
|
2015
|
Cash flows from
operating activities:
|
|
|
|
Net
earnings
|
$
|
2,553.7
|
|
|
$
|
3,357.4
|
|
Less: earnings from
discontinued operations, net of income taxes
|
400.3
|
|
|
1,610.7
|
|
Net earnings from
continuing operations
|
2,153.4
|
|
|
1,746.7
|
|
Noncash
items:
|
|
|
|
Depreciation
|
545.0
|
|
|
484.0
|
|
Amortization
|
583.1
|
|
|
396.8
|
|
Stock-based
compensation expense
|
129.8
|
|
|
103.8
|
|
Pretax loss on early
extinguishment of borrowings
|
178.8
|
|
|
—
|
|
Pretax gain on sales
of investments
|
(223.4)
|
|
|
(12.4)
|
|
Change in deferred
income taxes
|
(383.9)
|
|
|
(184.2)
|
|
Change in trade
accounts receivable, net
|
(183.1)
|
|
|
0.8
|
|
Change in
inventories
|
9.4
|
|
|
146.5
|
|
Change in trade
accounts payable
|
78.1
|
|
|
50.3
|
|
Change in prepaid
expenses and other assets
|
(62.4)
|
|
|
(68.9)
|
|
Change in accrued
expenses and other liabilities
|
262.7
|
|
|
168.8
|
|
Total operating cash
provided by continuing operations
|
3,087.5
|
|
|
2,832.2
|
|
Total operating cash
provided by discontinued operations
|
434.3
|
|
|
969.6
|
|
Net cash provided by
operating activities
|
3,521.8
|
|
|
3,801.8
|
|
Cash flows from
investing activities:
|
|
|
|
Cash paid for
acquisitions
|
(4,880.1)
|
|
|
(14,247.8)
|
|
Payments for
additions to property, plant and equipment
|
(589.6)
|
|
|
(512.9)
|
|
Payments for
purchases of investments
|
—
|
|
|
(87.1)
|
|
Proceeds from sales
of investments
|
264.8
|
|
|
43.0
|
|
All other investing
activities
|
31.7
|
|
|
66.3
|
|
Total investing cash
used in continuing operations
|
(5,173.2)
|
|
|
(14,738.5)
|
|
Total investing cash
used in discontinued operations
|
(69.8)
|
|
|
(212.5)
|
|
Net cash used in
investing activities
|
(5,243.0)
|
|
|
(14,951.0)
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from the
issuance of common stock
|
164.5
|
|
|
249.0
|
|
Payment of
dividends
|
(399.8)
|
|
|
(354.1)
|
|
Make-whole premiums
to redeem borrowings prior to maturity
|
(188.1)
|
|
|
—
|
|
Net proceeds from
borrowings (maturities of 90 days or less)
|
2,218.1
|
|
|
3,511.2
|
|
Proceeds from
borrowings (maturities longer than 90 days)
|
3,240.9
|
|
|
5,682.9
|
|
Repayments of
borrowings (maturities longer than 90 days)
|
(2,480.6)
|
|
|
(35.5)
|
|
All other financing
activities
|
(27.0)
|
|
|
(3.3)
|
|
Total financing cash
provided by continuing operations
|
2,528.0
|
|
|
9,050.2
|
|
Cash distributions to
Fortive, net
|
(485.3)
|
|
|
—
|
|
Net cash provided by
financing activities
|
2,042.7
|
|
|
9,050.2
|
|
Effect of exchange
rate changes on cash and equivalents
|
(148.6)
|
|
|
(115.8)
|
|
Net change in cash
and equivalents
|
172.9
|
|
|
(2,214.8)
|
|
Beginning balance of
cash and equivalents
|
790.8
|
|
|
3,005.6
|
|
Ending balance of
cash and equivalents
|
$
|
963.7
|
|
|
$
|
790.8
|
|
|
|
|
|
Supplemental
disclosure:
|
|
|
|
Shares redeemed
through the distribution of the communications business (26.0
shares held as Treasury
shares)
|
$
|
—
|
|
|
$
|
2,291.7
|
|
Distribution of
noncash net assets to Fortive Corporation
|
(1,983.6)
|
|
|
—
|
|
|
This information is
presented for reference only. Final audited financial
statements will include footnotes, which should be referenced when
available, to more fully understand the contents of this
information.
|
DANAHER
CORPORATION AND SUBSIDIARIES
|
SEGMENT
INFORMATION (unaudited)
|
($ in
millions)
|
|
|
Three Months Ended
December 31
|
|
Year Ended
December 31
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Sales:
|
|
|
|
|
|
|
|
Life
Sciences
|
$
|
1,454.1
|
|
|
$
|
1,374.1
|
|
|
$
|
5,365.9
|
|
|
$
|
3,314.6
|
|
Diagnostics
|
1,431.8
|
|
|
1,287.5
|
|
|
5,038.3
|
|
|
4,832.5
|
|
Dental
|
739.3
|
|
|
734.6
|
|
|
2,785.4
|
|
|
2,736.8
|
|
Environmental &
Applied Solutions
|
959.1
|
|
|
926.8
|
|
|
3,692.8
|
|
|
3,549.8
|
|
Total
|
$
|
4,584.3
|
|
|
$
|
4,323.0
|
|
|
$
|
16,882.4
|
|
|
$
|
14,433.7
|
|
|
|
|
|
|
|
|
|
Operating
Profit:
|
|
|
|
|
|
|
|
Life
Sciences
|
$
|
244.8
|
|
|
$
|
132.6
|
|
|
$
|
818.9
|
|
|
$
|
329.2
|
|
Diagnostics
|
180.1
|
|
|
235.9
|
|
|
786.4
|
|
|
746.2
|
|
Dental
|
113.8
|
|
|
116.2
|
|
|
419.4
|
|
|
370.4
|
|
Environmental &
Applied Solutions
|
229.9
|
|
|
205.0
|
|
|
870.0
|
|
|
866.6
|
|
Other
|
(40.0)
|
|
|
(38.1)
|
|
|
(143.8)
|
|
|
(150.2)
|
|
Total
|
$
|
728.6
|
|
|
$
|
651.6
|
|
|
$
|
2,750.9
|
|
|
$
|
2,162.2
|
|
|
|
|
|
|
|
|
|
Operating
Margins:
|
|
|
|
|
|
|
|
Life
Sciences
|
16.8
|
%
|
|
9.7
|
%
|
|
15.3
|
%
|
|
9.9
|
%
|
Diagnostics
|
12.6
|
%
|
|
18.3
|
%
|
|
15.6
|
%
|
|
15.4
|
%
|
Dental
|
15.4
|
%
|
|
15.8
|
%
|
|
15.1
|
%
|
|
13.5
|
%
|
Environmental &
Applied Solutions
|
24.0
|
%
|
|
22.1
|
%
|
|
23.6
|
%
|
|
24.4
|
%
|
Total
|
15.9
|
%
|
|
15.1
|
%
|
|
16.3
|
%
|
|
15.0
|
%
|
|
This information is
presented for reference only. Final audited financial
statements will include footnotes, which should be referenced when
available, to more fully understand the contents of this
information.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/danaher-reports-fourth-quarter-and-full-year-2016-results-300399215.html
SOURCE Danaher Corporation