ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 59-1995548 | |
(State of Incorporation) | (I.R.S. Employer Identification number) | |
2200 Pennsylvania Avenue, N.W., Suite 800W Washington, D.C. | 20037-1701 | |
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer | ý | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ | |||
Emerging growth company | ¨ |
Page | ||
PART I - | FINANCIAL INFORMATION | |
PART II - | OTHER INFORMATION | |
June 30, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and equivalents | $ | 726.4 | $ | 963.7 | |||
Trade accounts receivable, net | 3,214.8 | 3,186.1 | |||||
Inventories: | |||||||
Finished goods | 958.4 | 884.4 | |||||
Work in process | 290.5 | 299.4 | |||||
Raw materials | 542.8 | 525.6 | |||||
Total inventories | 1,791.7 | 1,709.4 | |||||
Prepaid expenses and other current assets | 523.7 | 805.9 | |||||
Total current assets | 6,256.6 | 6,665.1 | |||||
Property, plant and equipment, net of accumulated depreciation of $2,226.0 and $1,963.3, respectively | 2,422.8 | 2,354.0 | |||||
Other long-term assets | 693.9 | 631.3 | |||||
Goodwill | 24,523.6 | 23,826.9 | |||||
Other intangible assets, net | 11,749.9 | 11,818.0 | |||||
Total assets | $ | 45,646.8 | $ | 45,295.3 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Notes payable and current portion of long-term debt | $ | 169.5 | $ | 2,594.8 | |||
Trade accounts payable | 1,427.0 | 1,485.0 | |||||
Accrued expenses and other liabilities | 2,606.1 | 2,794.2 | |||||
Total current liabilities | 4,202.6 | 6,874.0 | |||||
Other long-term liabilities | 5,426.5 | 5,670.3 | |||||
Long-term debt | 11,422.5 | 9,674.2 | |||||
Stockholders’ equity: | |||||||
Common stock - $0.01 par value, 2.0 billion shares authorized; 810.4 and 807.7 issued; 694.7 and 692.2 outstanding, respectively | 8.1 | 8.1 | |||||
Additional paid-in capital | 5,424.1 | 5,312.9 | |||||
Retained earnings | 21,572.3 | 20,703.5 | |||||
Accumulated other comprehensive income (loss) | (2,414.5 | ) | (3,021.7 | ) | |||
Total Danaher stockholders’ equity | 24,590.0 | 23,002.8 | |||||
Noncontrolling interests | 5.2 | 74.0 | |||||
Total stockholders’ equity | 24,595.2 | 23,076.8 | |||||
Total liabilities and stockholders’ equity | $ | 45,646.8 | $ | 45,295.3 |
Three-Month Period Ended | Six-Month Period Ended | |||||||||||||||
June 30, 2017 | July 1, 2016 | June 30, 2017 | July 1, 2016 | |||||||||||||
Sales | $ | 4,510.1 | $ | 4,241.9 | $ | 8,715.8 | $ | 8,166.0 | ||||||||
Cost of sales | (2,027.8 | ) | (1,860.6 | ) | (3,899.2 | ) | (3,617.4 | ) | ||||||||
Gross profit | 2,482.3 | 2,381.3 | 4,816.6 | 4,548.6 | ||||||||||||
Operating costs: | ||||||||||||||||
Selling, general and administrative expenses | (1,515.3 | ) | (1,431.3 | ) | (2,958.3 | ) | (2,759.4 | ) | ||||||||
Research and development expenses | (283.3 | ) | (239.9 | ) | (550.7 | ) | (466.0 | ) | ||||||||
Operating profit | 683.7 | 710.1 | 1,307.6 | 1,323.2 | ||||||||||||
Nonoperating income (expense): | ||||||||||||||||
Other income | — | — | — | 223.4 | ||||||||||||
Interest expense | (40.7 | ) | (55.5 | ) | (81.0 | ) | (108.4 | ) | ||||||||
Interest income | 1.8 | — | 3.4 | — | ||||||||||||
Earnings from continuing operations before income taxes | 644.8 | 654.6 | 1,230.0 | 1,438.2 | ||||||||||||
Income taxes | (87.5 | ) | (236.6 | ) | (188.9 | ) | (434.4 | ) | ||||||||
Net earnings from continuing operations | 557.3 | 418.0 | 1,041.1 | 1,003.8 | ||||||||||||
Earnings from discontinued operations, net of income taxes | — | 238.7 | 22.3 | 411.3 | ||||||||||||
Net earnings | $ | 557.3 | $ | 656.7 | $ | 1,063.4 | $ | 1,415.1 | ||||||||
Net earnings per share from continuing operations: | ||||||||||||||||
Basic | $ | 0.80 | $ | 0.60 | $ | 1.50 | $ | 1.46 | ||||||||
Diluted | $ | 0.79 | $ | 0.60 | $ | 1.48 | $ | 1.44 | ||||||||
Net earnings per share from discontinued operations: | ||||||||||||||||
Basic | $ | — | $ | 0.35 | $ | 0.03 | $ | 0.60 | ||||||||
Diluted | $ | — | $ | 0.34 | $ | 0.03 | $ | 0.59 | ||||||||
Net earnings per share: | ||||||||||||||||
Basic | $ | 0.80 | $ | 0.95 | $ | 1.53 | $ | 2.05 | * | |||||||
Diluted | $ | 0.79 | $ | 0.94 | $ | 1.51 | $ | 2.03 | ||||||||
Average common stock and common equivalent shares outstanding: | ||||||||||||||||
Basic | 695.4 | 690.9 | 694.9 | 689.8 | ||||||||||||
Diluted | 705.4 | 698.9 | 705.5 | 698.0 |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||
June 30, 2017 | July 1, 2016 | June 30, 2017 | July 1, 2016 | ||||||||||||
Net earnings | $ | 557.3 | $ | 656.7 | $ | 1,063.4 | $ | 1,415.1 | |||||||
Other comprehensive income (loss), net of income taxes: | |||||||||||||||
Foreign currency translation adjustments | 274.9 | (161.9 | ) | 579.2 | 39.2 | ||||||||||
Pension and postretirement plan benefit adjustments | 4.9 | 5.8 | 9.8 | 11.1 | |||||||||||
Unrealized gain (loss) on available-for-sale securities adjustments | 10.9 | 1.4 | 18.2 | (130.3 | ) | ||||||||||
Total other comprehensive income (loss), net of income taxes | 290.7 | (154.7 | ) | 607.2 | (80.0 | ) | |||||||||
Comprehensive income | $ | 848.0 | $ | 502.0 | $ | 1,670.6 | $ | 1,335.1 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | ||||||||||||||||||
Shares | Amount | |||||||||||||||||||||
Balance, December 31, 2016 | 807.7 | $ | 8.1 | $ | 5,312.9 | $ | 20,703.5 | $ | (3,021.7 | ) | $ | 74.0 | ||||||||||
Net earnings for the period | — | — | — | 1,063.4 | — | — | ||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 607.2 | — | ||||||||||||||||
Dividends declared | — | — | — | (194.6 | ) | — | — | |||||||||||||||
Common stock-based award activity | 2.7 | — | 112.3 | — | — | — | ||||||||||||||||
Common stock issued in connection with LYONs’ conversions, including tax benefit | — | — | 0.1 | — | — | — | ||||||||||||||||
Change in noncontrolling interests | — | — | (1.2 | ) | — | — | (68.8 | ) | ||||||||||||||
Balance, June 30, 2017 | 810.4 | $ | 8.1 | $ | 5,424.1 | $ | 21,572.3 | $ | (2,414.5 | ) | $ | 5.2 |
Six-Month Period Ended | |||||||
June 30, 2017 | July 1, 2016 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 1,063.4 | $ | 1,415.1 | |||
Less: earnings from discontinued operations, net of income taxes | 22.3 | 411.3 | |||||
Net earnings from continuing operations | 1,041.1 | 1,003.8 | |||||
Noncash items: | |||||||
Depreciation | 282.4 | 261.9 | |||||
Amortization | 326.4 | 283.4 | |||||
Stock-based compensation expense | 71.4 | 64.9 | |||||
Restructuring and impairment charges | 49.3 | — | |||||
Pretax gain on sale of investments | — | (223.4 | ) | ||||
Change in trade accounts receivable, net | 72.1 | (61.5 | ) | ||||
Change in inventories | (45.4 | ) | (104.9 | ) | |||
Change in trade accounts payable | (104.1 | ) | (42.7 | ) | |||
Change in prepaid expenses and other assets | 186.2 | 104.2 | |||||
Change in accrued expenses and other liabilities | (308.7 | ) | 302.8 | ||||
Total operating cash provided by continuing operations | 1,570.7 | 1,588.5 | |||||
Total operating cash provided by discontinued operations | — | 466.1 | |||||
Net cash provided by operating activities | 1,570.7 | 2,054.6 | |||||
Cash flows from investing activities: | |||||||
Cash paid for acquisitions | (93.9 | ) | (92.7 | ) | |||
Payments for additions to property, plant and equipment | (306.5 | ) | (273.5 | ) | |||
Proceeds from sales of property, plant and equipment | 30.0 | 5.2 | |||||
Proceeds from sale of investments | — | 264.8 | |||||
All other investing activities | (2.5 | ) | — | ||||
Total investing cash used in continuing operations | (372.9 | ) | (96.2 | ) | |||
Total investing cash used in discontinued operations | — | (69.7 | ) | ||||
Net cash used in investing activities | (372.9 | ) | (165.9 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from the issuance of common stock | 35.8 | 144.8 | |||||
Payment of dividends | (183.9 | ) | (202.8 | ) | |||
Payment for purchase of noncontrolling interests | (64.4 | ) | — | ||||
Net repayments of borrowings (maturities of 90 days or less) | (2,387.5 | ) | (1,178.0 | ) | |||
Proceeds from borrowings (maturities longer than 90 days) | 1,684.0 | 3,240.9 | |||||
Repayments of borrowings (maturities longer than 90 days) | (562.4 | ) | (504.1 | ) | |||
All other financing activities | (37.3 | ) | (26.7 | ) | |||
Net cash (used in) provided by financing activities | (1,515.7 | ) | 1,474.1 | ||||
Effect of exchange rate changes on cash and equivalents | 80.6 | (56.0 | ) | ||||
Net change in cash and equivalents | (237.3 | ) | 3,306.8 | ||||
Beginning balance of cash and equivalents | 963.7 | 790.8 | |||||
Ending balance of cash and equivalents | $ | 726.4 | $ | 4,097.6 | |||
Supplemental disclosures: | |||||||
Cash interest payments | $ | 58.4 | $ | 102.0 | |||
Cash income tax payments | 266.3 | 233.1 |
Foreign Currency Translation Adjustments | Pension & Postretirement Plan Benefit Adjustments | Unrealized Gain (Loss) on Available-For-Sale Securities Adjustments | Total | ||||||||||||
For the Three-Month Period Ended June 30, 2017: | |||||||||||||||
Balance, March 31, 2017 | $ | (2,093.9 | ) | $ | (637.3 | ) | $ | 26.0 | $ | (2,705.2 | ) | ||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||
Increase | 274.9 | — | 17.4 | 292.3 | |||||||||||
Income tax impact | — | — | (6.5 | ) | (6.5 | ) | |||||||||
Other comprehensive income (loss) before reclassifications, net of income taxes | 274.9 | — | 10.9 | 285.8 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | |||||||||||||||
Increase | — | 7.6 | (a) | — | 7.6 | ||||||||||
Income tax impact | — | (2.7 | ) | — | (2.7 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | — | 4.9 | — | 4.9 | |||||||||||
Net current period other comprehensive income (loss), net of income taxes | 274.9 | 4.9 | 10.9 | 290.7 | |||||||||||
Balance, June 30, 2017 | $ | (1,819.0 | ) | $ | (632.4 | ) | $ | 36.9 | $ | (2,414.5 | ) |
Foreign Currency Translation Adjustments | Pension & Postretirement Plan Benefit Adjustments | Unrealized Gain (Loss) on Available-For-Sale Securities Adjustments | Total | ||||||||||||
For the Three-Month Period Ended July 1, 2016: | |||||||||||||||
Balance, April 1, 2016 | $ | (1,596.3 | ) | $ | (642.0 | ) | $ | 1.8 | $ | (2,236.5 | ) | ||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||
(Decrease) increase | (161.9 | ) | — | 2.3 | (159.6 | ) | |||||||||
Income tax impact | — | — | (0.9 | ) | (0.9 | ) | |||||||||
Other comprehensive income (loss) before reclassifications, net of income taxes | (161.9 | ) | — | 1.4 | (160.5 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | |||||||||||||||
Increase | — | 8.6 | (a) | — | 8.6 | ||||||||||
Income tax impact | — | (2.8 | ) | — | (2.8 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | — | 5.8 | — | 5.8 | |||||||||||
Net current period other comprehensive income (loss), net of income taxes | (161.9 | ) | 5.8 | 1.4 | (154.7 | ) | |||||||||
Balance, July 1, 2016 | $ | (1,758.2 | ) | $ | (636.2 | ) | $ | 3.2 | $ | (2,391.2 | ) | ||||
For the Six-Month Period Ended June 30, 2017: | |||||||||||||||
Balance, December 31, 2016 | $ | (2,398.2 | ) | $ | (642.2 | ) | $ | 18.7 | $ | (3,021.7 | ) | ||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||
Increase | 579.2 | — | 29.1 | 608.3 | |||||||||||
Income tax impact | — | — | (10.9 | ) | (10.9 | ) | |||||||||
Other comprehensive income (loss) before reclassifications, net of income taxes | 579.2 | — | 18.2 | 597.4 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | |||||||||||||||
Increase | — | 15.2 | (a) | — | 15.2 | ||||||||||
Income tax impact | — | (5.4 | ) | — | (5.4 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | — | 9.8 | — | 9.8 | |||||||||||
Net current period other comprehensive income (loss), net of income taxes | 579.2 | 9.8 | 18.2 | 607.2 | |||||||||||
Balance, June 30, 2017 | $ | (1,819.0 | ) | $ | (632.4 | ) | $ | 36.9 | $ | (2,414.5 | ) | ||||
For the Six-Month Period Ended July 1, 2016: | |||||||||||||||
Balance, December 31, 2015 | $ | (1,797.4 | ) | $ | (647.3 | ) | $ | 133.5 | $ | (2,311.2 | ) | ||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||
Increase | 39.2 | — | 14.9 | 54.1 | |||||||||||
Income tax impact | — | — | (5.6 | ) | (5.6 | ) | |||||||||
Other comprehensive income (loss) before reclassifications, net of income taxes | 39.2 | — | 9.3 | 48.5 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | |||||||||||||||
Increase (decrease) | — | 16.4 | (a) | (223.4 | ) | (b) | (207.0 | ) | |||||||
Income tax impact | — | (5.3 | ) | 83.8 | 78.5 | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | — | 11.1 | (139.6 | ) | (128.5 | ) | |||||||||
Net current period other comprehensive income (loss), net of income taxes | 39.2 | 11.1 | (130.3 | ) | (80.0 | ) | |||||||||
Balance, July 1, 2016 | $ | (1,758.2 | ) | $ | (636.2 | ) | $ | 3.2 | $ | (2,391.2 | ) |
Trade accounts receivable | $ | 8.6 | |
Inventories | 12.4 | ||
Property, plant and equipment | 0.9 | ||
Goodwill | 70.9 | ||
Other intangible assets, primarily customer relationships, trade names and technology | 27.8 | ||
Trade accounts payable | (4.0 | ) | |
Other assets and liabilities, net | (22.2 | ) | |
Assumed debt | (0.5 | ) | |
Net cash consideration | $ | 93.9 |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||
June 30, 2017 | July 1, 2016 | June 30, 2017 | July 1, 2016 | ||||||||||||
Sales | $ | 4,517.8 | $ | 4,436.5 | $ | 8,740.0 | $ | 8,555.6 | |||||||
Net earnings from continuing operations | 557.3 | 383.0 | 1,041.4 | 919.3 | |||||||||||
Diluted net earnings per share from continuing operations | 0.79 | 0.55 | 1.48 | 1.32 |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||
July 1, 2016 | June 30, 2017 | July 1, 2016 | |||||||||
Sales | $ | 1,555.1 | $ | — | $ | 3,029.8 | |||||
Cost of sales | (787.0 | ) | — | (1,566.4 | ) | ||||||
Selling, general and administrative expenses | (347.0 | ) | — | (679.6 | ) | ||||||
Research and development expenses | (96.7 | ) | — | (190.4 | ) | ||||||
Interest expense | (10.9 | ) | — | (19.7 | ) | ||||||
Earnings from discontinued operations before income taxes | 313.5 | — | 573.7 | ||||||||
Income taxes | (74.8 | ) | 22.3 | (162.4 | ) | ||||||
Earnings from discontinued operations, net of income taxes | $ | 238.7 | $ | 22.3 | $ | 411.3 |
Balance, December 31, 2016 | $ | 23,826.9 | |
Attributable to 2017 acquisitions | 70.9 | ||
Adjustments due to finalization of purchase price allocations | (54.1 | ) | |
Foreign currency translation and other | 679.9 | ||
Balance, June 30, 2017 | $ | 24,523.6 |
June 30, 2017 | December 31, 2016 | ||||||
Life Sciences | $ | 11,991.1 | $ | 11,610.3 | |||
Diagnostics | 7,006.8 | 6,903.0 | |||||
Dental | 3,304.9 | 3,215.6 | |||||
Environmental & Applied Solutions | 2,220.8 | 2,098.0 | |||||
Total | $ | 24,523.6 | $ | 23,826.9 |
Quoted Prices in Active Market (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
June 30, 2017: | |||||||||||||||
Assets: | |||||||||||||||
Available-for-sale securities | $ | 146.2 | $ | 49.2 | $ | — | $ | 195.4 | |||||||
Liabilities: | |||||||||||||||
Deferred compensation plans | — | 55.6 | — | 55.6 | |||||||||||
December 31, 2016: | |||||||||||||||
Assets: | |||||||||||||||
Available-for-sale securities | $ | 117.8 | $ | 52.3 | $ | — | $ | 170.1 | |||||||
Liabilities: | |||||||||||||||
Deferred compensation plans | — | 52.2 | — | 52.2 |
June 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Assets: | |||||||||||||||
Available-for-sale securities | $ | 195.4 | $ | 195.4 | $ | 170.1 | $ | 170.1 | |||||||
Liabilities: | |||||||||||||||
Notes payable and current portion of long-term debt | 169.5 | 169.5 | 2,594.8 | 2,594.8 | |||||||||||
Long-term debt | 11,422.5 | 11,860.8 | 9,674.2 | 10,095.1 |
June 30, 2017 | December 31, 2016 | ||||||
U.S. dollar-denominated commercial paper | $ | 332.2 | $ | 2,733.5 | |||
Euro-denominated commercial paper (€3.0 billion and €3.0 billion, respectively) | 3,361.8 | 3,127.6 | |||||
Floating rate senior unsecured notes due 2017 (€500.0 million aggregate principal amount) (the “2017 Euronotes”) | — | 526.0 | |||||
0.0% senior unsecured bonds due 2017 (CHF 100.0 million aggregate principal amount) (the “2017 CHF Bonds”) | 104.1 | 98.0 | |||||
1.65% senior unsecured notes due 2018 | 498.7 | 498.1 | |||||
1.0% senior unsecured notes due 2019 (€600.0 million aggregate principal amount) (the “2019 Euronotes”) | 682.6 | 628.6 | |||||
2.4% senior unsecured notes due 2020 | 497.3 | 496.8 | |||||
5.0% senior unsecured notes due 2020 | 398.6 | 402.6 | |||||
Zero-coupon Liquid Yield Option Notes (LYONs) due 2021 | 68.9 | 68.1 | |||||
0.352% senior unsecured notes due 2021 (¥30.0 billion aggregate principal amount) (the “2021 Yen Notes”) | 265.7 | 255.6 | |||||
1.7% senior unsecured notes due 2022 (€800.0 million aggregate principal amount) (the “2022 Euronotes”) | 908.1 | 836.5 | |||||
Floating rate senior unsecured notes due 2022 (€250.0 million aggregate principal amount) (the “Floating Rate 2022 Euronotes”) | 284.3 | — | |||||
0.5% senior unsecured bonds due 2023 (CHF 540.0 million aggregate principal amount) (the “2023 CHF Bonds”) | 564.8 | 532.3 | |||||
2.5% senior unsecured notes due 2025 (€800.0 million aggregate principal amount) (the “2025 Euronotes”) | 908.3 | 836.8 | |||||
3.35% senior unsecured notes due 2025 | 496.1 | 495.8 | |||||
0.3% senior unsecured notes due 2027 (¥30.8 billion aggregate principal amount) (the “2027 Yen Notes”) | 272.5 | — | |||||
1.2% senior unsecured notes due 2027 (€600.0 million aggregate principal amount) (the “2027 Euronotes”) | 678.6 | — | |||||
1.125% senior unsecured bonds due 2028 (CHF 110.0 million aggregate principal amount) (the “2028 CHF Bonds”) | 115.4 | 108.8 | |||||
0.65% senior unsecured notes due 2032 (¥53.2 billion aggregate principal amount) (the “2032 Yen Notes”) | 470.6 | — | |||||
4.375% senior unsecured notes due 2045 | 499.3 | 499.3 | |||||
Other | 184.1 | 124.6 | |||||
Total debt | 11,592.0 | 12,269.0 | |||||
Less: currently payable | 169.5 | 2,594.8 | |||||
Long-term debt | $ | 11,422.5 | $ | 9,674.2 |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||
June 30, 2017 | July 1, 2016 | June 30, 2017 | July 1, 2016 | ||||||||||||
U.S. Pension Benefits: | |||||||||||||||
Service cost | $ | 1.9 | $ | 2.3 | $ | 3.8 | $ | 4.6 | |||||||
Interest cost | 21.0 | 22.7 | 42.0 | 45.4 | |||||||||||
Expected return on plan assets | (32.9 | ) | (33.3 | ) | (65.8 | ) | (66.6 | ) | |||||||
Amortization of actuarial loss | 6.6 | 6.0 | 13.2 | 12.0 | |||||||||||
Curtailment gain recognized | — | — | — | (0.7 | ) | ||||||||||
Net periodic pension cost | $ | (3.4 | ) | $ | (2.3 | ) | $ | (6.8 | ) | $ | (5.3 | ) | |||
Non-U.S. Pension Benefits: | |||||||||||||||
Service cost | $ | 7.9 | $ | 9.1 | $ | 15.6 | $ | 17.9 | |||||||
Interest cost | 6.5 | 8.8 | 12.8 | 17.4 | |||||||||||
Expected return on plan assets | (10.5 | ) | (10.5 | ) | (20.7 | ) | (20.9 | ) | |||||||
Amortization of actuarial loss | 1.9 | 1.9 | 3.8 | 3.9 | |||||||||||
Amortization of prior service credit | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.2 | ) | |||||||
Net periodic pension cost | $ | 5.7 | $ | 9.2 | $ | 11.3 | $ | 18.1 |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||
June 30, 2017 | July 1, 2016 | June 30, 2017 | July 1, 2016 | ||||||||||||
Service cost | $ | 0.2 | $ | 0.2 | $ | 0.4 | $ | 0.4 | |||||||
Interest cost | 1.3 | 1.4 | 2.6 | 2.8 | |||||||||||
Amortization of actuarial loss | — | 0.1 | — | 0.2 | |||||||||||
Amortization of prior service credit | (0.8 | ) | (0.8 | ) | (1.6 | ) | (1.6 | ) | |||||||
Net periodic benefit cost | $ | 0.7 | $ | 0.9 | $ | 1.4 | $ | 1.8 |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||
June 30, 2017 | July 1, 2016 | June 30, 2017 | July 1, 2016 | ||||||||||||
Restricted stock units (“RSUs”)/performance stock units (“PSUs”): | |||||||||||||||
Pretax compensation expense | $ | 24.1 | $ | 24.0 | $ | 45.7 | $ | 43.9 | |||||||
Income tax benefit | (7.4 | ) | (7.2 | ) | (14.1 | ) | (12.9 | ) | |||||||
RSU/PSU expense, net of income taxes | 16.7 | 16.8 | 31.6 | 31.0 | |||||||||||
Stock options: | |||||||||||||||
Pretax compensation expense | 13.7 | 11.3 | 25.7 | 21.0 | |||||||||||
Income tax benefit | (4.4 | ) | (3.5 | ) | (8.2 | ) | (6.5 | ) | |||||||
Stock option expense, net of income taxes | 9.3 | 7.8 | 17.5 | 14.5 | |||||||||||
Total stock-based compensation: | |||||||||||||||
Pretax compensation expense | 37.8 | 35.3 | 71.4 | 64.9 | |||||||||||
Income tax benefit | (11.8 | ) | (10.7 | ) | (22.3 | ) | (19.4 | ) | |||||||
Total stock-based compensation expense, net of income taxes | $ | 26.0 | $ | 24.6 | $ | 49.1 | $ | 45.5 |
Cost of sales | $ | 20.7 | |
Selling, general and administrative expenses | 55.2 | ||
Total | $ | 75.9 |
Balance, December 31, 2016 | $ | 75.8 | |
Accruals for warranties issued during the period | 24.4 | ||
Settlements made | (26.8 | ) | |
Additions due to acquisitions | 1.2 | ||
Effect of foreign currency translation | 2.3 | ||
Balance, June 30, 2017 | $ | 76.9 |
Net Earnings from Continuing Operations (Numerator) | Shares (Denominator) | Per Share Amount | ||||||||
For the Three-Month Period Ended June 30, 2017: | ||||||||||
Basic EPS | $ | 557.3 | 695.4 | $ | 0.80 | |||||
Adjustment for interest on convertible debentures | 0.5 | — | ||||||||
Incremental shares from assumed exercise of dilutive options and vesting of dilutive RSUs and PSUs | — | 7.1 | ||||||||
Incremental shares from assumed conversion of the convertible debentures | — | 2.9 | ||||||||
Diluted EPS | $ | 557.8 | 705.4 | $ | 0.79 | |||||
For the Three-Month Period Ended July 1, 2016: | ||||||||||
Basic EPS | $ | 418.0 | 690.9 | $ | 0.60 | |||||
Adjustment for interest on convertible debentures | 0.5 | — | ||||||||
Incremental shares from assumed exercise of dilutive options and vesting of dilutive RSUs and PSUs | — | 5.7 | ||||||||
Incremental shares from assumed conversion of the convertible debentures | — | 2.3 | ||||||||
Diluted EPS | $ | 418.5 | 698.9 | $ | 0.60 | |||||
For the Six-Month Period Ended June 30, 2017: | ||||||||||
Basic EPS | $ | 1,041.1 | 694.9 | $ | 1.50 | |||||
Adjustment for interest on convertible debentures | 1.0 | — | ||||||||
Incremental shares from assumed exercise of dilutive options and vesting of dilutive RSUs and PSUs | — | 7.7 | ||||||||
Incremental shares from assumed conversion of the convertible debentures | — | 2.9 | ||||||||
Diluted EPS | $ | 1,042.1 | 705.5 | $ | 1.48 | |||||
For the Six-Month Period Ended July 1, 2016: | ||||||||||
Basic EPS | $ | 1,003.8 | 689.8 | $ | 1.46 | |||||
Adjustment for interest on convertible debentures | 0.9 | — | ||||||||
Incremental shares from assumed exercise of dilutive options and vesting of dilutive RSUs and PSUs | — | 5.9 | ||||||||
Incremental shares from assumed conversion of the convertible debentures | — | 2.3 | ||||||||
Diluted EPS | $ | 1,004.7 | 698.0 | $ | 1.44 |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||
June 30, 2017 | July 1, 2016 | June 30, 2017 | July 1, 2016 | ||||||||||||
Sales: | |||||||||||||||
Life Sciences | $ | 1,384.3 | $ | 1,328.3 | $ | 2,692.4 | $ | 2,586.4 | |||||||
Diagnostics | 1,440.0 | 1,257.6 | 2,767.3 | 2,393.8 | |||||||||||
Dental | 702.6 | 714.6 | 1,358.1 | 1,370.5 | |||||||||||
Environmental & Applied Solutions | 983.2 | 941.4 | 1,898.0 | 1,815.3 | |||||||||||
Total | $ | 4,510.1 | $ | 4,241.9 | $ | 8,715.8 | $ | 8,166.0 | |||||||
Operating profit: | |||||||||||||||
Life Sciences | $ | 221.6 | $ | 192.2 | $ | 433.2 | $ | 369.4 | |||||||
Diagnostics | 157.6 | 232.2 | 312.2 | 412.4 | |||||||||||
Dental | 109.8 | 109.2 | 199.2 | 204.3 | |||||||||||
Environmental & Applied Solutions | 235.2 | 218.3 | 443.2 | 416.7 | |||||||||||
Other | (40.5 | ) | (41.8 | ) | (80.2 | ) | (79.6 | ) | |||||||
Total | $ | 683.7 | $ | 710.1 | $ | 1,307.6 | $ | 1,323.2 |
• | Information Relating to Forward-Looking Statements |
• | Overview |
• | Results of Operations |
• | Liquidity and Capital Resources |
• | Conditions in the global economy, the markets we serve and the financial markets may adversely affect our business and financial statements. |
• | Our growth could suffer if the markets into which we sell our products and services (references to products and services in this report also include software) decline, do not grow as anticipated or experience cyclicality. |
• | We face intense competition and if we are unable to compete effectively, we may experience decreased demand and decreased market share. Even if we compete effectively, we may be required to reduce prices for our products and services. |
• | Our growth depends in part on the timely development and commercialization, and customer acceptance, of new and enhanced products and services based on technological innovation. |
• | Our reputation, ability to do business and financial statements may be impaired by improper conduct by any of our employees, agents or business partners. |
• | Certain of our businesses are subject to extensive regulation by the U.S. Food and Drug Administration and by comparable agencies of other countries, as well as laws regulating fraud and abuse in the health care industry and the privacy and security of health information. Failure to comply with those regulations could adversely affect our reputation and financial statements. |
• | The health care industry and related industries that we serve have undergone, and are in the process of undergoing, significant changes in an effort to reduce costs, which could adversely affect our financial statements. |
• | Any inability to consummate acquisitions at our historical rate and at appropriate prices could negatively impact our growth rate and stock price. |
• | Our acquisition of businesses (including our recent acquisitions of Pall and Cepheid), joint ventures and strategic relationships could negatively impact our financial statements. |
• | The indemnification provisions of acquisition agreements by which we have acquired companies may not fully protect us and as a result we may face unexpected liabilities. |
• | Divestitures and other dispositions could negatively impact our business, and contingent liabilities from businesses that we have disposed could adversely affect our financial statements. |
• | We could incur significant liability if the 2016 spin-off of Fortive or the 2015 split-off of our communications business is determined to be a taxable transaction. |
• | Potential indemnification liabilities related to the 2016 spin-off of Fortive and the 2015 split-off of our communications business could materially and adversely affect our business and financial statements. |
• | A significant disruption in, or breach in security of, our information technology systems or violation of data privacy laws could adversely affect our business, reputation and financial statements. |
• | Our operations, products and services expose us to the risk of environmental, health and safety liabilities, costs and violations that could adversely affect our reputation and financial statements. |
• | Our businesses are subject to extensive regulation; failure to comply with those regulations could adversely affect our financial statements and our business, including our reputation. |
• | Our restructuring actions could have long-term adverse effects on our business. |
• | We may be required to recognize impairment charges for our goodwill and other intangible assets. |
• | Foreign currency exchange rates may adversely affect our financial statements. |
• | Changes in our tax rates or exposure to additional income tax liabilities or assessments could affect our profitability. In addition, audits by tax authorities could result in additional tax payments for prior periods. |
• | Changes in tax law relating to multinational corporations could adversely affect our tax position. |
• | We are subject to a variety of litigation and other legal and regulatory proceedings in the course of our business that could adversely affect our business and financial statements. |
• | If we do not or cannot adequately protect our intellectual property, or if third-parties infringe our intellectual property rights, we may suffer competitive injury or expend significant resources enforcing our rights. |
• | Third parties may claim that we are infringing or misappropriating their intellectual property rights and we could suffer significant litigation expenses, losses or licensing expenses or be prevented from selling products or services. |
• | The United States government has certain rights to use and disclose some of the intellectual property that we license and could exclusively license it to a third-party if we fail to achieve practical application of the intellectual property. |
• | Defects and unanticipated use or inadequate disclosure with respect to our products or services could adversely affect our business, reputation and financial statements. |
• | The manufacture of many of our products is a highly exacting and complex process, and if we directly or indirectly encounter problems manufacturing products, our reputation, business and financial statements could suffer. |
• | Our indebtedness may limit our operations and our use of our cash flow, and any failure to comply with the covenants that apply to our indebtedness could adversely affect our liquidity and financial statements. |
• | Adverse changes in our relationships with, or the financial condition, performance, purchasing patterns or inventory levels of, key distributors and other channel partners could adversely affect our financial statements. |
• | Certain of our businesses rely on relationships with collaborative partners and other third-parties for development, supply and marketing of certain products and potential products, and such collaborative partners or other third-parties could fail to perform sufficiently. |
• | Our financial results are subject to fluctuations in the cost and availability of commodities that we use in our operations. |
• | If we cannot adjust our manufacturing capacity or the purchases required for our manufacturing activities to reflect changes in market conditions and customer demand, our profitability may suffer. In addition, our reliance upon sole or limited sources of supply for certain materials, components and services could cause production interruptions, delays and inefficiencies. |
• | Changes in laws or governmental regulations may reduce demand for our products or services or increase our expenses. |
• | Work stoppages, union and works council campaigns and other labor disputes could adversely impact our productivity and results of operations. |
• | International economic, political, legal, compliance, trade and business factors could negatively affect our financial statements. |
• | The results of the European Union membership referendum in the United Kingdom and their formal notice of withdrawal from the European Union could adversely affect customer demand, our relationships with customers and suppliers and our business and financial statements. |
• | If we suffer loss to our facilities, supply chains, distribution systems or information technology systems due to catastrophe or other events, our operations could be seriously harmed. |
• | Our defined benefit pension plans are subject to financial market risks that could adversely affect our financial statements. |
• | sales from acquired businesses and |
• | the impact of currency translation. |
• | the period-to-period change in revenue (excluding sales from acquired businesses) and |
• | the period-to-period change in revenue (excluding sales from acquired businesses) after applying current period foreign exchange rates to the prior year period. |
% Change Three-Month Period Ended June 30, 2017 vs. Comparable 2016 Period | % Change Six- Month Period Ended June 30, 2017 vs. Comparable 2016 Period | ||||
Total sales growth | 6.5 | % | 6.5 | % |
% Change Three-Month Period Ended June 30, 2017 vs. Comparable 2016 Period | % Change Six- Month Period Ended June 30, 2017 vs. Comparable 2016 Period | ||||
Existing businesses (core sales) | 2.0 | % | 2.5 | % | |
Acquisitions and other | 6.0 | % | 5.5 | % | |
Currency exchange rates | (1.5 | )% | (1.5 | )% | |
Total | 6.5 | % | 6.5 | % |
• | Higher 2017 sales volumes from existing businesses and incremental year-over-year cost savings associated with the ongoing restructuring actions and continuing productivity improvement initiatives taken in 2016, net of incremental year-over-year costs associated with various new product development, sales, service and marketing growth investments, and the impact of the stronger U.S. dollar in 2017 - 70 basis points |
• | Restructuring, impairment and other related charges related to discontinuing a product line in the second quarter of 2017 related to the Diagnostic segment - 170 basis points |
• | The incremental net dilutive effect in 2017 of acquired businesses - 50 basis points |
• | Higher 2017 sales volumes from existing businesses and incremental year-over-year cost savings associated with the ongoing restructuring actions and continuing productivity improvement initiatives taken in 2016, net of incremental year-over-year costs associated with various new product development, sales, service and marketing growth investments, and the impact of the stronger U.S. dollar in 2017 - 30 basis points |
• | Restructuring, impairment and other related charges related to discontinuing a product line in the second quarter of 2017 related to the Diagnostic segment - 85 basis points |
• | The incremental net dilutive effect in 2017 of acquired businesses - 65 basis points |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||
June 30, 2017 | July 1, 2016 | June 30, 2017 | July 1, 2016 | ||||||||||||
Life Sciences | $ | 1,384.3 | $ | 1,328.3 | $ | 2,692.4 | $ | 2,586.4 | |||||||
Diagnostics | 1,440.0 | 1,257.6 | 2,767.3 | 2,393.8 | |||||||||||
Dental | 702.6 | 714.6 | 1,358.1 | 1,370.5 | |||||||||||
Environmental & Applied Solutions | 983.2 | 941.4 | 1,898.0 | 1,815.3 | |||||||||||
Total | $ | 4,510.1 | $ | 4,241.9 | $ | 8,715.8 | $ | 8,166.0 |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||
($ in millions) | June 30, 2017 | July 1, 2016 | June 30, 2017 | July 1, 2016 | |||||||||||
Sales | $ | 1,384.3 | $ | 1,328.3 | $ | 2,692.4 | $ | 2,586.4 | |||||||
Operating profit | 221.6 | 192.2 | 433.2 | 369.4 | |||||||||||
Depreciation | 29.0 | 30.1 | 59.1 | 62.2 | |||||||||||
Amortization | 76.4 | 75.3 | 153.0 | 147.2 | |||||||||||
Operating profit as a % of sales | 16.0 | % | 14.5 | % | 16.1 | % | 14.3 | % | |||||||
Depreciation as a % of sales | 2.1 | % | 2.3 | % | 2.2 | % | 2.4 | % | |||||||
Amortization as a % of sales | 5.5 | % | 5.7 | % | 5.7 | % | 5.7 | % |
% Change Three-Month Period Ended June 30, 2017 vs. Comparable 2016 Period | % Change Six- Month Period Ended June 30, 2017 vs. Comparable 2016 Period | ||||
Total sales growth | 4.0 | % | 4.0 | % |
% Change Three-Month Period Ended June 30, 2017 vs. Comparable 2016 Period | % Change Six- Month Period Ended June 30, 2017 vs. Comparable 2016 Period | ||||
Existing businesses (core sales) | 3.5 | % | 3.5 | % | |
Acquisitions and other | 2.5 | % | 2.0 | % | |
Currency exchange rates | (2.0 | )% | (1.5 | )% | |
Total | 4.0 | % | 4.0 | % |
• | Higher 2017 sales volumes from existing businesses and incremental year-over-year cost savings associated with the ongoing restructuring actions and continuing productivity improvement initiatives taken in 2016, net of incremental year-over-year costs associated with various new product development, sales and marketing growth investments in 2017 and the impact of the stronger U.S. dollar in 2017 - 120 basis points |
• | The incremental net accretive effect in 2017 of acquired businesses and intersegment product line transfers - 30 basis points |
• | Higher 2017 sales volumes from existing businesses and incremental year-over-year cost savings associated with the ongoing restructuring actions and continuing productivity improvement initiatives taken in 2016, net of incremental year-over-year costs associated with various new product development, sales and marketing growth investments in 2017 and the impact of the stronger U.S. dollar in 2017 - 145 basis points |
• | The incremental net accretive effect in 2017 of acquired businesses and intersegment product line transfers - 35 basis points |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||
($ in millions) | June 30, 2017 | July 1, 2016 | June 30, 2017 | July 1, 2016 | |||||||||||
Sales | $ | 1,440.0 | $ | 1,257.6 | $ | 2,767.3 | $ | 2,393.8 | |||||||
Operating profit | 157.6 | 232.2 | 312.2 | 412.4 | |||||||||||
Depreciation | 91.6 | 81.9 | 179.2 | 157.1 | |||||||||||
Amortization | 49.9 | 34.3 | 106.0 | 67.9 | |||||||||||
Operating profit as a % of sales | 10.9 | % | 18.5 | % | 11.3 | % | 17.2 | % | |||||||
Depreciation as a % of sales | 6.4 | % | 6.5 | % | 6.5 | % | 6.6 | % | |||||||
Amortization as a % of sales | 3.5 | % | 2.7 | % | 3.8 | % | 2.8 | % |
% Change Three-Month Period Ended June 30, 2017 vs. Comparable 2016 Period | % Change Six- Month Period Ended June 30, 2017 vs. Comparable 2016 Period | ||||
Total sales growth | 14.5 | % | 15.5 | % |
% Change Three-Month Period Ended June 30, 2017 vs. Comparable 2016 Period | % Change Six- Month Period Ended June 30, 2017 vs. Comparable 2016 Period | ||||
Existing businesses (core sales) | 2.5 | % | 2.5 | % | |
Acquisitions and other | 13.5 | % | 14.5 | % | |
Currency exchange rates | (1.5 | )% | (1.5 | )% | |
Total | 14.5 | % | 15.5 | % |
• | Restructuring, impairment and other related charges related to discontinuing a product line in the second quarter of 2017 - 530 basis points |
• | The incremental net dilutive effect in 2017 of acquired businesses - 205 basis points |
• | Incremental year-over-year costs associated with various new product development, sales, service and marketing growth investments, and the impact of the stronger U.S. dollar in 2017, net of higher 2017 sales volumes from existing businesses and incremental year-over-year cost savings associated with the ongoing restructuring actions and continuing productivity improvement initiatives taken in 2016 - 25 basis points |
• | Restructuring, impairment and other related charges related to discontinuing a product line in the second quarter of 2017 - 275 basis points |
• | The incremental net dilutive effect in 2017 of acquired businesses - 195 basis points |
• | Incremental year-over-year costs associated with various new product development, sales, service and marketing growth investments, and the impact of the stronger U.S. dollar in 2017, net of higher 2017 sales volumes from existing businesses and incremental year-over-year cost savings associated with the ongoing restructuring actions and continuing productivity improvement initiatives taken in 2016 - 120 basis points |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||
($ in millions) | June 30, 2017 | July 1, 2016 | June 30, 2017 | July 1, 2016 | |||||||||||
Sales | $ | 702.6 | $ | 714.6 | $ | 1,358.1 | $ | 1,370.5 | |||||||
Operating profit | 109.8 | 109.2 | 199.2 | 204.3 | |||||||||||
Depreciation | 10.2 | 10.9 | 20.4 | 21.8 | |||||||||||
Amortization | 20.2 | 21.3 | 40.2 | 42.8 | |||||||||||
Operating profit as a % of sales | 15.6 | % | 15.3 | % | 14.7 | % | 14.9 | % | |||||||
Depreciation as a % of sales | 1.5 | % | 1.5 | % | 1.5 | % | 1.6 | % | |||||||
Amortization as a % of sales | 2.9 | % | 3.0 | % | 3.0 | % | 3.1 | % |
% Change Three-Month Period Ended June 30, 2017 vs. Comparable 2016 Period | % Change Six- Month Period Ended June 30, 2017 vs. Comparable 2016 Period | ||||
Total sales growth | (1.5 | )% | (1.0 | )% |
% Change Three-Month Period Ended June 30, 2017 vs. Comparable 2016 Period | % Change Six- Month Period Ended June 30, 2017 vs. Comparable 2016 Period | ||||
Existing businesses (core sales) | (1.0 | )% | (0.5 | )% | |
Acquisitions and other | — | % | — | % | |
Currency exchange rates | (0.5 | )% | (0.5 | )% | |
Total | (1.5 | )% | (1.0 | )% |
• | Incremental year-over-year cost savings associated with the ongoing restructuring actions and continuing productivity improvement initiatives taken in 2016, net of incremental year-over-year costs associated with various new product development, sales and marketing growth investments, price decreases, the impact of the stronger U.S. dollar in 2017 and unfavorable product mix due to lower sales of dental consumables in 2017 - 50 basis points |
• | The incremental net dilutive effect in 2017 of acquired businesses - 20 basis points |
• | Incremental year-over-year costs associated with various new product development, sales and marketing growth investments, the impact of the stronger U.S. dollar in 2017 and unfavorable product mix due to lower sales of dental consumables in 2017, net of incremental year-over-year cost savings associated with the ongoing restructuring actions and continuing productivity improvement initiatives taken in 2016 - 15 basis points |
• | The incremental net dilutive effect in 2017 of acquired businesses - 5 basis points |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||
($ in millions) | June 30, 2017 | July 1, 2016 | June 30, 2017 | July 1, 2016 | |||||||||||
Sales | $ | 983.2 | $ | 941.4 | $ | 1,898.0 | $ | 1,815.3 | |||||||
Operating profit | 235.2 | 218.3 | 443.2 | 416.7 | |||||||||||
Depreciation | 10.4 | 8.5 | 20.3 | 17.3 | |||||||||||
Amortization | 13.8 | 13.3 | 27.2 | 25.5 | |||||||||||
Operating profit as a % of sales | 23.9 | % | 23.2 | % | 23.4 | % | 23.0 | % | |||||||
Depreciation as a % of sales | 1.1 | % | 0.9 | % | 1.1 | % | 1.0 | % | |||||||
Amortization as a % of sales | 1.4 | % | 1.4 | % | 1.4 | % | 1.4 | % |
% Change Three-Month Period Ended June 30, 2017 vs. Comparable 2016 Period | % Change Six- Month Period Ended June 30, 2017 vs. Comparable 2016 Period | ||||
Total sales growth | 4.5 | % | 4.5 | % |
% Change Three-Month Period Ended June 30, 2017 vs. Comparable 2016 Period | % Change Six- Month Period Ended June 30, 2017 vs. Comparable 2016 Period | ||||
Existing businesses (core sales) | 3.0 | % | 3.5 | % | |
Acquisitions and other | 3.0 | % | 2.0 | % | |
Currency exchange rates | (1.5 | )% | (1.0 | )% | |
Total | 4.5 | % | 4.5 | % |
• | Higher 2017 sales volumes from existing businesses, incremental year-over-year cost savings associated with the ongoing restructuring actions and continuing productivity improvement initiatives taken in 2016 and improved pricing, net of incremental year-over-year costs associated with various new product development, sales and marketing growth investments and the impact of the stronger U.S. dollar in 2017 - 120 basis points |
• | The incremental net dilutive effect in 2017 of acquired businesses and intersegment product line transfers - 50 basis points |
• | Higher 2017 sales volumes from existing businesses, incremental year-over-year cost savings associated with the ongoing restructuring actions and continuing productivity improvement initiatives taken in 2016 and improved pricing, net of incremental year-over-year costs associated with various new product development, sales and marketing growth investments and the impact of the stronger U.S. dollar in 2017 - 90 basis points |
• | The incremental net dilutive effect in 2017 of acquired businesses and intersegment product line transfers - 50 basis points |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||
($ in millions) | June 30, 2017 | July 1, 2016 | June 30, 2017 | July 1, 2016 | |||||||||||
Sales | $ | 4,510.1 | $ | 4,241.9 | $ | 8,715.8 | $ | 8,166.0 | |||||||
Cost of sales | (2,027.8 | ) | (1,860.6 | ) | (3,899.2 | ) | (3,617.4 | ) | |||||||
Gross profit | $ | 2,482.3 | $ | 2,381.3 | $ | 4,816.6 | $ | 4,548.6 | |||||||
Gross profit margin | 55.0 | % | 56.1 | % | 55.3 | % | 55.7 | % |
Three-Month Period Ended | Six-Month Period Ended | ||||||||||||||
($ in millions) | June 30, 2017 | July 1, 2016 | June 30, 2017 | July 1, 2016 | |||||||||||
Sales | $ | 4,510.1 | $ | 4,241.9 | $ | 8,715.8 | $ | 8,166.0 | |||||||
Selling, general and administrative (“SG&A”) expenses | 1,515.3 | 1,431.3 | 2,958.3 | 2,759.4 | |||||||||||
Research and development (“R&D”) expenses | 283.3 | 239.9 | 550.7 | 466.0 | |||||||||||
SG&A as a % of sales | 33.6 | % | 33.7 | % | 33.9 | % | 33.8 | % | |||||||
R&D as a % of sales | 6.3 | % | 5.7 | % | 6.3 | % | 5.7 | % |
• | The 2017 expected rate includes the anticipated discrete income tax benefits from excess tax deductions related to the Company’s stock compensation programs, which are now reflected as a reduction in tax expense (refer to Note 1 to the accompanying Consolidated Condensed Financial Statements for additional information related to this change in accounting guidance), though the actual benefits will depend on the Company’s stock price and stock option exercise patterns. |
• | The actual mix of earnings by jurisdiction could fluctuate from the Company’s projection. |
• | The tax effects of other discrete items, including accruals related to tax contingencies, the resolution of worldwide tax matters, tax audit settlements, statute of limitations expirations and changes in tax regulations, are reflected in the period in which they occur. |
• | Any future legislative changes or potential tax reform in the United States or other jurisdictions. |
Six-Month Period Ended | |||||||
($ in millions) | June 30, 2017 | July 1, 2016 | |||||
Total operating cash flows provided by continuing operations | $ | 1,570.7 | $ | 1,588.5 | |||
Cash paid for acquisitions | $ | (93.9 | ) | $ | (92.7 | ) | |
Payments for additions to property, plant and equipment | (306.5 | ) | (273.5 | ) | |||
Proceeds from sales of property, plant and equipment | 30.0 | 5.2 | |||||
Proceeds from sale of investments | — | 264.8 | |||||
All other investing activities | (2.5 | ) | — | ||||
Total investing cash used in discontinued operations | — | (69.7 | ) | ||||
Net cash used in investing activities | $ | (372.9 | ) | $ | (165.9 | ) | |
Proceeds from the issuance of common stock | $ | 35.8 | $ | 144.8 | |||
Payment of dividends | (183.9 | ) | (202.8 | ) | |||
Payment for purchase of noncontrolling interests | (64.4 | ) | — | ||||
Net repayments of borrowings (maturities of 90 days or less) | (2,387.5 | ) | (1,178.0 | ) | |||
Proceeds from borrowings (maturities longer than 90 days) | 1,684.0 | 3,240.9 | |||||
Repayments of borrowings (maturities longer than 90 days) | (562.4 | ) | (504.1 | ) | |||
All other financing activities | (37.3 | ) | (26.7 | ) | |||
Net cash (used in) provided by financing activities | $ | (1,515.7 | ) | $ | 1,474.1 |
• | Operating cash flows from continuing operations decreased $18 million, or approximately 1%, during the first six months of 2017 as compared to the first six months of 2016, due to increased cash used for income tax and certain employee benefit payments, partially offset by lower cash used for funding accounts receivable, inventories and accounts payable compared to the prior years. |
• | The Company also used cash generated from operations as well as the proceeds from the long-term borrowings noted below to reduce net outstanding borrowings with maturities of 90 days or less, primarily commercial paper borrowings, by approximately $2.4 billion. |
• | In May 2017, the Company received net proceeds, after offering expenses, of approximately ¥83.6 billion (approximately $744 million based on currency exchange rates as of the date of the pricing of the notes) from the issuance of yen-denominated notes (refer to Note 6 of the accompanying Consolidated Condensed Financial Statements), and used the net proceeds from the offering to repay certain commercial paper borrowings. |
• | In June 2017, the Company received net proceeds, after underwriting discounts and commissions and offering expenses, of approximately €843 million (approximately $940 million based on currency exchange rates as of the date of the pricing of the notes) from the issuance of euro-denominated notes and used the net proceeds from the offering to repay the €500 million floating rate senior unsecured notes which matured on June 30, 2017 as well as to repay commercial paper borrowings. |
• | As of June 30, 2017, the Company held $726 million of cash and cash equivalents. |
• | 2017 operating cash flows reflected an increase in net earnings from continuing operations for the first six months of 2017 as compared to the comparable period in 2016, as the increase in net earnings from continuing operations offset the gain from the sale of marketable equity securities in 2016. The cash flow impact of the gain from the sale of marketable equity securities is reflected in the investing activities section of the accompanying Consolidated Condensed Statement of Cash Flows, and therefore, does not contribute to operating cash flows. |
• | Net earnings from continuing operations for the first six months of 2017 reflected an increase of $64 million of depreciation and amortization expense as compared to the comparable period of 2016. Amortization expense primarily relates to the amortization of intangible assets acquired in connection with acquisitions and increased due to the impact of recently acquired businesses, particularly Cepheid. Depreciation expense relates to both the Company’s manufacturing and operating facilities as well as instrumentation leased to customers under operating-type lease arrangements and increased due primarily to the impact of recently acquired businesses, particularly Cepheid. Depreciation and amortization are noncash expenses that decrease earnings without a corresponding impact to operating cash flows. |
• | The aggregate of trade accounts receivable, inventories and trade accounts payable used $77 million in operating cash flows during the first six months of 2017, compared to $209 million of operating cash flows used in the comparable period of 2016. The amount of cash flow generated from or used by the aggregate of trade accounts receivable, inventories and trade accounts payable depends upon how effectively the Company manages the cash conversion cycle, which effectively represents the number of days that elapse from the day it pays for the purchase of raw materials and components to the collection of cash from its customers and can be significantly impacted by the timing of collections and payments in a period. |
• | The aggregate of prepaid expenses and other assets and accrued expenses and other liabilities used $123 million of operating cash flows during the first six months of 2017, compared to $407 million provided in the comparable period of 2016. This use of operational cash flow in the first six months of 2017 resulted primarily from the timing of cash payments for income taxes compared to the timing of recording the related income tax provisions, various employee-related liabilities and customer funding during the first six months of 2017, compared to the comparable period of 2016. |
(a) | Exhibits: |
3.1 | ||
3.2 | ||
4.1 | ||
4.2 | ||
10.1 | ||
10.2 | ||
10.3 | ||
10.4 | ||
10.5 | ||
10.6 | ||
10.7 | ||
11.1 | ||
12.1 | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101.INS | XBRL Instance Document ** | |
101.SCH | XBRL Taxonomy Extension Schema Document ** | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document ** | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document ** | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document ** | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document ** |
* | Indicates management contract or compensatory plan, contract or arrangement. |
** | Attached as Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Condensed Balance Sheets as of June 30, 2017 and December 31, 2016, (ii) Consolidated |
DANAHER CORPORATION | |||
Date: | July 19, 2017 | By: | /s/ Daniel L. Comas |
Daniel L. Comas | |||
Executive Vice President and Chief Financial Officer | |||
Date: | July 19, 2017 | By: | /s/ Robert S. Lutz |
Robert S. Lutz | |||
Senior Vice President and Chief Accounting Officer |
1. | Purpose of the Plan. Danaher Corporation, a Delaware corporation, wishes to recruit and retain Employees and Directors. To further these objectives, the Company established the Danaher Corporation 2007 Stock Incentive Plan, which is hereby renamed the Danaher Corporation 2007 Omnibus Incentive Plan. Under the Plan, the Company may make grants of Options, Stock Appreciation Rights, Restricted Stock Units (including Performance Stock Units), Other Stock-Based Awards and Cash-Based Awards. The Company may also make direct grants of Common Stock in the form of Restricted Stock Grants to Participants as a bonus or other incentive or grant such stock in lieu of Company obligations to pay cash under other plans or compensatory arrangements, including any deferred compensation plans. |
2. | Definitions. As used herein, the following definitions shall apply: |
(i) | If the Common Stock is traded on the New York Stock Exchange or other national securities exchange, the closing sale price on that date or, if the given date is not a trading day, the closing sale price for the immediately preceding trading day; or |
(ii) | If the Common Stock is not traded on the New York Stock Exchange or other national securities exchange, the Fair Market Value thereof shall be determined in good faith by the Administrator and in compliance with Code Section 409A. |
(i) | committed fraud, misappropriation, embezzlement, willful misconduct or gross negligence with respect to the Company or any Subsidiary thereof, or any other action in willful disregard of the interests of the Company or any Subsidiary thereof; |
(ii) | been convicted of, or pled guilty or no contest to, (i) a felony, (ii) any misdemeanor (other than a traffic violation) with respect to his/her employment, or (iii) any other crime or activity that would impair his/her ability to perform his/her duties or impair the business reputation of the Company or any Subsidiary; |
(iii) | refused or willfully failed to adequately perform any duties assigned to him/her; or |
(iv) | refused or willfully failed to comply with standards, policies or procedures of the Company or any Subsidiary thereof, including without limitation the Company’s Standards of Conduct as amended from time to time. |
3. | Eligibility. All Employees, Consultants, and Directors are eligible for Awards under this Plan. Eligible Employees, Consultants, and Directors become Optionees or Recipients when the Administrator grants them, respectively, an Option or one of the other Awards under this Plan. |
4. | Administration of the Plan. |
(a) | The Administrator. The Administrator of the Plan is the Compensation Committee of the Board, unless the Board specifies another committee. The Board may also act under the Plan as though it were the Administrator. The Administrator is responsible for the general operation and administration of the Plan and for carrying out its provisions and has full discretion in interpreting and administering the provisions of the Plan. Subject to the express provisions of the Plan, the Administrator may exercise such powers and authority of the Board as the Administrator may find necessary or appropriate to carry out its functions. The Administrator may delegate its functions to Employees (other than the power to grant awards to Directors, Section 16 Persons or Covered Employees), to the extent permitted under applicable Delaware corporate law. |
(b) | Code Section 162(m) and Rule 16b-3 Compliance. The Administrator may, but is not required to, grant Awards that are intended to qualify as performance based compensation exempt from the deductibility limitations of Code Section 162(m). However, grants of Awards to Covered Employees intended to qualify as performance based compensation under Code Section 162(m) shall be made and certified only by a Committee (or a subcommittee of the Committee) consisting solely of two or more “outside directors” (as such term is defined under Code Section 162(m)). Awards to Section 16 Persons shall be made only by a Committee (or a subcommittee of the Committee) consisting solely of two or more non-employee Directors in accordance with Rule 16b-3 under the Exchange Act. |
(c) | Powers of the Administrator. The Administrator’s powers will include, but not be limited to, the power to: construe and interpret the terms of the Plan and Awards granted pursuant to the Plan (including the power to remedy any ambiguity, inconsistency, or omission); amend, waive, or extend any provision or limitation of any Award (except as expressly limited by the terms of the Plan), which shall include without limitation the power to accelerate or waive any vesting condition; in order to fulfill the purposes of the Plan and without amending the Plan, to vary the terms of or modify Awards to Participants who are foreign nationals or employed outside of the United States in order to recognize differences in local law, tax policies or customs; and to adopt such procedures as are necessary or appropriate to carry out the foregoing. |
(d) | Granting of Awards. Subject to the terms of the Plan, the Administrator will, in its sole discretion, determine the Optionees and the Recipients of other Awards and will determine either initially or subsequent to the grant of the relevant Award: |
(i) | the terms of such Awards; |
(ii) | the schedule for exercisability and nonforfeitability, including any requirements that the Participant or the Company satisfy performance criteria or Performance Objectives, and the acceleration or waiver of the exercisability or nonforfeitability of the Awards (for the avoidance of doubt, the Administrator shall have discretion to accelerate or waive the vesting of all or a portion of any performance-based vesting conditions or Performance Objectives); |
(iii) | the time and conditions for expiration of the Awards; and |
(iv) | the form of payment due upon exercise or grant of Awards. |
(e) | Substitutions. The Administrator may also grant Awards in conversion or replacement of or substitution for options or other equity awards or interests held by individuals who become Employees of the Company or of an Eligible Subsidiary as a result of the Company’s acquiring or merging with the individual’s employer. If necessary to conform the Awards to the awards or interests for which they are substitutes, the Administrator may grant substitute Awards under terms and conditions that vary from those the Plan otherwise requires. Notwithstanding anything in the foregoing to the contrary, any Award to any Participant who is a U.S. taxpayer will be adjusted appropriately pursuant to Code Section 409A. |
(f) | Repricing Prohibition. Other than as provided under Section 15 below and except in connection with a Substantial Corporate Change, merger, acquisition, spinoff, or other similar corporate transaction, the Administrator may not (1) reduce the Exercise Price of any outstanding Option or SAR, (2) cancel an |
(g) | Effect of Administrator’s Decision. The Administrator’s determinations under the Plan need not be uniform and need not consider whether actual or potential Participants are similarly situated. All decisions, determinations and interpretations of the Administrator shall be final and binding on all holders of any Award. |
(h) | Time Limit for Participant Claims. Any claim under the Plan or any Award must be commenced by a Participant within twelve (12) months of the earliest date on which the Participant’s claim first arises, or the Participant’s cause of action accrues, or such claim will be deemed waived by the Participant. |
5. | Stock Subject to the Plan. |
(a) | Share Limits; Shares Available. Except as adjusted below in the event of a Substantial Corporate Change (as defined in Section 16(a)) or as provided under Section 15, the aggregate number of shares of Common Stock that may be issued pursuant to Awards granted under the Plan shall be 126,846,408 shares (the “Maximum Share Limit”). The Common Stock may come from treasury shares, authorized but unissued shares, or previously issued shares that the Company reacquires, including shares it purchases on the open market. Each share of Common Stock subject to an Option or SAR counts against the Maximum Share Limit as one share of Common Stock; each share of Common Stock subject to any Award other than an Option or SAR that is granted on or prior to February 28, 2017 counts against the Maximum Share Limit as one share of Common Stock; and each share of Common Stock subject to any Award other than an Option or SAR that is granted after February 28, 2017 counts against the Maximum Share Limit as 3.56 shares of Common Stock. If after February 28, 2017 any Award expires, is canceled, forfeited, cash-settled, exchanged or assumed by a third party or terminates for any other reason, in each case without a distribution of shares of Common Stock to the Participant, each share of Common Stock available under that Award is added back to the Maximum Share Limit as: one share of Common Stock if such share of Common Stock was subject to an Option or SAR; and 3.56 shares of Common Stock if such share of Common Stock was subject to any Award other than an Option or SAR. Notwithstanding the foregoing, the following shares of Common Stock shall not again become available for Awards or increase the number of shares available for grant under this Section 5(a): (1) shares of Common Stock tendered by the Participant or withheld by the Company in payment of the purchase price of an Option or SAR, (2) shares of Common Stock tendered by the Participant or withheld by the Company to satisfy any tax withholding obligation under this Plan, (3) shares of Common Stock repurchased by the Company with proceeds received from the exercise of an Option, and (4) shares of Common Stock subject to a SAR that are not issued in connection with the stock settlement of that SAR upon its exercise. For the avoidance of doubt, the fungible share counting set forth in this Section 5(a) shall apply solely with respect to determining the counting of shares of Common Stock against the Maximum Share Limit and shall not apply with respect to the counting of shares under the individual share limits set forth in Section 5(b). Shares of Common Stock issued to convert, replace or adjust outstanding options or other equity-compensation awards in connection with a merger or acquisition, as permitted by NYSE Listed Company Manual Section 303A.08 or any successor provision, shall not reduce the number of shares available for issuance under the Plan. |
(b) | Code Section 162(m) Limitations on Awards. The aggregate number of shares of Common Stock subject to Options or SARs that may be granted under this Plan during any one calendar year to any one Participant shall not exceed 1,000,000; the aggregate number of shares of Common Stock subject to any other type of Award that is intended to be “qualified performance-based compensation” under Code Section 162(m) and that may be granted under this Plan during any one calendar year to any one Participant shall not exceed 500,000; and the aggregate amount of cash subject to any Cash-Based Award that may be granted under this Plan during any one calendar year to any one Participant (other than Directors, for whom the cash limit set forth in Section 5(f) shall apply) shall not exceed ten million dollars ($10,000,000). Each of the foregoing separate limitations shall be subject to adjustment under Section 15, and each of the foregoing separate limits for any one Participant shall be doubled in the initial year of hire. To the extent required by Code Section 162(m), if any Award which is intended to comply with Code Section 162(m) is canceled, the canceled Award shall continue to count against the maximum number of shares of Common Stock or the maximum amount of cash, as applicable, with respect to which an Award may be granted in any one calendar year pursuant to the foregoing limitations. |
(c) | Minimum Vesting Conditions. Notwithstanding anything to the contrary in this Plan, all Awards approved under the Plan after May 9, 2017 (other than Cash-Based Awards) shall be subject to a vesting period or performance period, as applicable, of at least one year following the Date of Grant; provided, however, that (1) up to five percent (5%) of the Maximum Share Limit under this Plan may be issued without regard to the foregoing minimum vesting period, (2) the foregoing minimum vesting period shall not apply in the event of death, Disability, Retirement or other terminations of employment or service, and (3) the Administrator may waive the restrictions set forth in this sentence in its sole discretion in the event of a Substantial Corporate Change. |
(d) | Stockholder Rights. Except for Restricted Stock Grants and except as the Administrator otherwise specifies (including without limitation in the terms of any Award agreement approved by the Administrator), the Participant will have no rights of a stockholder with respect to the shares of Common Stock subject to an Award except to the extent that the Company has issued certificates for, or otherwise confirmed ownership of, such shares upon the exercise or, as applicable, the grant or nonforfeitability, of an Award. Except as the Administrator otherwise specifies (including without limitation in the terms of any Award agreement approved by the Administrator) or as contemplated under Section 15, no adjustment will be made for a dividend or other right for which the record date precedes the date of exercise or nonforfeitability, as applicable. |
(e) | Fractional Shares. The Company will not issue fractional shares of Common Stock pursuant to the exercise or vesting of an Award. Any fractional share will be rounded up and issued to the Participant in a whole share; provided that to the extent rounding a fractional share up would result in the imposition of either (i) individual tax and penalty interest charges imposed under Code Section 409A or (ii) adverse tax consequences to a Participant located outside of the United States, the fractional share will be rounded down without the payment of any consideration in respect of such fractional share. |
(f) | Director Limits. The maximum number of shares subject to Awards granted during a single fiscal year to any Director, taken together with such Director’s cash fees with respect to the fiscal year (whether such cash fees are paid currently or deferred under the Non-Employee Directors’ Deferred Compensation Plan), shall not exceed $800,000 in total value (calculating the value of any such Awards based on the grant date fair value of such Awards for financial reporting purposes). The foregoing limit shall be increased to $1,300,000 for any Director who serves as Chairman or Vice-Chairman (or similar role) of the Board. |
(g) | Dividends and Dividend Equivalents. The Recipient of an Award other than an Option or SAR may, if so determined by the Administrator, be entitled to receive cash, stock or other property dividends declared on shares of Common Stock, or amounts equivalent thereto (“Dividend Equivalents”), with respect to the number of shares of Common Stock covered by the Award, as determined by the Administrator in its sole discretion and set forth in the applicable Award agreement. The Administrator may provide that any Dividend Equivalents shall be deemed to have been reinvested in additional shares of Common Stock or otherwise reinvested. Any dividends or Dividend Equivalents with respect to any such Award shall be subject to the same restrictions and risks of forfeiture (including any service-based or performance-based vesting conditions) as the underlying Award. |
6. | Terms and Conditions of Options. |
(a) | General. Options granted to Employees, Consultants, and Directors are not intended to qualify as Incentive Stock Options. Subject to Section 4, the Administrator may set whatever conditions it considers appropriate for the Options, including time-based and/or performance-based vesting conditions. |
(b) | Exercise Price. The Administrator will determine the Exercise Price under each Option and may set the Exercise Price without regard to the Exercise Price of any other Options granted at the same or any other time. The Exercise Price per share for the Options may not be less than 100% of the Fair Market Value of a share of Common Stock on the Date of Grant, except in the event of an Option substitution as contemplated by Section 4(e) above, or as provided under Section 15 below. The Company may use the consideration it receives from the Optionee for general corporate purposes. |
(c) | Exercisability. The Administrator will determine the times and conditions for exercise of each Option but may not extend the period for exercise of an Option beyond the tenth anniversary of its Date of Grant. Options will become exercisable at such times and in such manner as the Administrator determines (either initially or subsequent to the grant of the relevant Award); provided, however, that the Administrator may, on |
(d) | Method of Exercise; Method of Payment. To exercise any exercisable portion of an Option, the Optionee must: |
(i) | Deliver a written notice of exercise to the Secretary of the Company (or to whomever the Administrator designates), in a form complying with any rules the Administrator may issue and specifying the number of shares of Common Stock underlying the portion of the Option the Optionee is exercising; |
(ii) | Pay the full Exercise Price by cashier’s or certified check or wire transfer of immediately available funds for the shares of Common Stock with respect to which the Option is being exercised, unless the Administrator consents to another form of payment (which could include the use of Common Stock); and |
(iii) | Deliver to the Secretary of the Company (or to whomever the Administrator designates) such representations and documents as the Administrator, in its sole discretion, may consider necessary or advisable. |
(e) | Term. No one may exercise an Option more than ten years after its Date of Grant. |
(f) | Automatic Exercise of Certain Expiring Options. Notwithstanding any other provision of this Plan or any Award agreement (other than this Section), on the last trading day on which all or a portion of an outstanding Option may be exercised, if as of the close of trading on such day the then Fair Market Value of a share of Common Stock exceeds the per share Exercise Price of the Option by at least $.01 (such expiring portion of an Option that is so in-the-money, an “Auto-Exercise Eligible Option”), the Optionee shall be deemed to have automatically exercised such Auto-Exercise Eligible Option (to the extent it has not previously been exercised, forfeited or terminated) as of the close of trading in accordance with the provisions of this Section. In the event of an automatic exercise pursuant to this Section, the Company shall reduce the number of shares of Common Stock issued to the Optionee upon such Optionee’s automatic exercise of the Auto-Exercise Eligible Option in an amount necessary to satisfy (1) the Optionee’s Exercise Price obligation for the Auto-Exercise Eligible Option, and (2) the minimum amount of tax required to be withheld in connection with the automatic exercise (or such other rate that will not cause adverse accounting consequences for the Company) unless the Administrator deems that a different method of satisfying such withholding obligations is practicable and advisable, in each case based on the Fair Market Value of the Common Stock as of the close of trading on the date of exercise. In accordance with procedures established by the Administrator, an Optionee may notify the Company’s record-keeper in writing in advance that he or she does not wish for the Auto-Exercise Eligible Option to be exercised. This Section shall not apply to any Option to the extent that |
7. | Terms and Conditions of Stock Appreciation Rights. |
(a) | General. A SAR represents the right to receive a payment, in cash, shares of Common Stock or both (as determined by the Administrator), equal to the excess of the Fair Market Value on the date the SAR is exercised over the SAR’s Exercise Price, if any. |
(b) | Exercise Price. Subject to Section 4, the Administrator will establish in its sole discretion the Exercise Price of a SAR and all other applicable terms and conditions, including time-based and/or performance-based vesting conditions. The Exercise Price for the SAR may not be less than 100% of the Fair Market Value of a share of Common Stock on the Date of Grant, except in the event of a SAR substitution as contemplated by Section 4(e) above, or as provided under Section 15 below. |
(c) | Exercisability. The Administrator will determine the times and conditions for exercise of each SAR but may not extend the period for exercise of a SAR beyond the tenth anniversary of its Date of Grant. SARs will become exercisable at such times and in such manner as the Administrator determines (either initially or subsequent to the grant of the relevant Award); provided, however, that the Administrator may, on such terms and conditions as it determines appropriate, accelerate the time at which the Participant may exercise any portion of a SAR. |
(d) | Term. No one may exercise a SAR more than ten years after its Date of Grant. |
8. | Terms and Conditions of Restricted Stock Grants. |
(a) | General. A Restricted Stock Grant is a direct grant of Common Stock, subject to restrictions and vesting conditions, including time-based vesting conditions and/or the attainment of performance-based vesting conditions or Performance Objectives. The Company shall issue the shares to each Recipient of a Restricted Stock Grant either (i) in certificate form or (ii) in book entry form, registered in the name of the Recipient, with legends or notations, as applicable, referring to the terms, conditions, and restrictions applicable to the Award; provided that the Company may require that any stock certificates evidencing Restricted Stock Grants be held in the custody of the Company or its agent until the restrictions thereon shall have lapsed, and that, as a condition of any Restricted Stock Grant, the Participant shall have delivered a stock power, endorsed in blank, relating to the shares of Common Stock covered by such Award. |
(b) | Purchase Price. The Administrator may satisfy any Delaware corporate law requirements regarding adequate consideration for Restricted Stock Grants by (i) issuing Common Stock held as treasury stock or repurchased on the open market or (ii) charging the Recipients at least the par value for the shares of Common Stock covered by the Restricted Stock Grant. |
(c) | Lapse of Restrictions. The shares of Common Stock underlying such Restricted Stock Grants will become nonforfeitable at such times and in such manner as the Administrator determines (either initially or subsequent to the grant of the relevant Award); provided, however, the Administrator may, on such terms and conditions as it determines appropriate, accelerate the time at which restrictions or other conditions on such Restricted Stock Grants will lapse. Unless otherwise specified by the Administrator or by the Committee described in Section 4(b) of the Plan, any performance-based vesting conditions or Performance Objectives must be satisfied, if at all, on or prior to the tenth anniversary of the Date of Grant. |
(d) | Rights as a Stockholder. A Recipient who is awarded a Restricted Stock Grant under the Plan shall have the same voting, dividend and other rights as the Company’s other stockholders. After the lapse of the restrictions without forfeiture in respect of the Restricted Stock Grant, the Company shall remove any legends or notations referring to the terms, conditions and restrictions on such shares of Common Stock and, if certificated, deliver to the Participant the certificate or certificates evidencing the number of such shares of Common Stock. |
9. | Terms and Conditions of Restricted Stock Units. |
(a) | General. RSUs shall be credited as a bookkeeping entry in the name of the Participant in an account maintained by the Company. No shares of Common Stock are actually issued to the Participant in respect of RSUs on the Date of Grant. Shares of Common Stock shall be issuable to the Participant only upon the lapse |
(b) | Purchase Price. The Administrator may satisfy any Delaware corporate law requirements regarding adequate consideration for RSUs by (i) issuing Common Stock held as treasury stock or repurchased on the open market or (ii) charging the Recipients at least the par value for the shares of Common Stock covered by the RSUs. |
(c) | Lapse of Restrictions. RSUs will vest and the underlying shares of Common Stock will become nonforfeitable at such times and in such manner as the Administrator determines (either initially or subsequent to the grant of the relevant Award); provided, however, that the Administrator may, on such terms and conditions as it determines appropriate, accelerate the time at which restrictions or other conditions on such RSUs will lapse. Unless otherwise specified by the Administrator, any performance-based vesting conditions or Performance Objectives must be satisfied, if at all, on or prior to the tenth anniversary of the Date of Grant. |
(d) | Rights as a Stockholder. Except as the Administrator otherwise specifies (including without limitation in the terms of any Award agreement approved by the Administrator), a Recipient who is awarded RSUs under the Plan shall possess no incidents of ownership with respect to the underlying shares of Common Stock. |
(e) | Post-Vesting Holding Period for Performance Stock Units. Unless the Administrator determines otherwise prior to the grant of the relevant Award, and except as otherwise provided in Section 11 below, payment of any Performance Stock Unit (including those subject to the Normal and Early Retirement provisions of Section 11) that vests pursuant to its terms shall be deferred until the fifth anniversary (the “Fifth Anniversary”) of the beginning of the Performance Period applicable to such Performance Stock Unit (the “Commencement Date”); provided, however, if such payment date would subject the Participant to liability under Section 16 of the Exchange Act, any such deferred payment shall be made on a date selected by the Administrator in its sole discretion which may be as early as thirty (30) days prior to the Fifth Anniversary or at a later date within the same calendar year or, if later, by the 15th day of the third calendar month following the Fifth Anniversary. |
10. | Terms and Conditions of Other Stock-Based Awards and Cash-Based Awards. |
(a) | The Administrator may grant Other Stock-Based Awards that are denominated in, valued in whole or in part by reference to, or otherwise based on or related to, Common Stock. The purchase, exercise, exchange or conversion of Other Stock-Based Awards and all other terms and conditions applicable to such Awards will be determined by the Administrator in its sole discretion. |
(b) | The Administrator may grant Cash-Based Awards, each of which may be expressed in dollars or may be based on a formula that is consistent with the provisions of the Plan. The terms and conditions applicable to Cash-Based Awards will be determined by the Administrator in its sole discretion. |
11. | Termination of Employment. Unless the Administrator determines otherwise (either initially or subsequent to the grant of the relevant Award), the following rules shall govern the vesting, exercisability and term of outstanding Awards held by a Participant in the event of termination of such Participant’s employment, where termination of employment means the time when the active employer-employee or other active service-providing relationship between the Participant and the Company or an Eligible Subsidiary ends for any reason, including Retirement; provided that notwithstanding anything in this Plan to the contrary, unless otherwise determined by the Administrator, this Section 11 shall not apply to Cash-Based Awards and any reference in this Section 11 to an “Award” shall be deemed to be a reference to all Awards other than Cash-Based Awards. For purposes of Awards granted under this Plan, the Administrator shall have sole discretion to determine whether a Participant has ceased to be actively employed by (or, in the case of a Consultant or Director, has ceased actively providing services to) the Company or Eligible Subsidiary, and the effective date on which such active employment (or active service-providing relationship) terminated. For the avoidance of doubt, a Participant’s active employer-employee or other active service-providing relationship shall not be extended by any notice period mandated under local law (e.g., active employment shall not include a period of “garden leave”, paid administrative leave or similar period pursuant to local law), and in the event of a Participant’s termination of employment (whether or not in breach of local labor laws), Participant’s right to exercise any Option or SAR after termination of employment, if any, shall be measured by the date of termination of active employment or service and shall not be extended by any notice period mandated under local law. Unless the Administrator provides otherwise (either initially or subsequent to the grant of the relevant Award) (1) termination of employment will include instances in which a common law employee is terminated and immediately rehired as an independent contractor, and |
(a) | General. Upon termination of employment for any reason other than death, Early Retirement or (except with respect to RSUs granted prior to the Retirement Provision Transition Date) Normal Retirement, unless contrary to applicable law and unless otherwise provided by the Administrator either initially or subsequent to the grant of the relevant Award, all unvested portions of any outstanding Awards shall be immediately forfeited without consideration. Except as set forth in subsections (b) - (i) below, the Participant shall have a period of ninety (90) days, commencing with the first date the Participant is no longer actively employed, to exercise the vested portion of any outstanding Options or SARs, subject to the term of the Option or SAR; provided, however, that if the exercise of an Option or SAR following termination of employment (to the extent such post-termination exercise is permitted under this Section 11(a)) is not covered by an effective registration statement on file with the U.S. Securities and Exchange Commission, then the Option or SAR shall terminate upon the later of (1) thirty (30) days after such exercise becomes covered by an effective registration statement, (2) in the event that a sale of shares of Common Stock received upon exercise of an Option or SAR would subject the Participant to liability under Section 16(b) of the Exchange Act, thirty (30) days after the last date on which such sale would result in liability, or (3) the end of the original post-termination exercise period; provided, however, that in no event may an Option or SAR be exercised after the expiration of the term of the Award. |
(b) | Normal Retirement. Upon termination of employment by reason of the Participant’s Normal Retirement, unless contrary to applicable law and unless otherwise provided by the Administrator either initially or subsequent to the grant of the relevant Award (1) with respect to all Options or SARs held by the Participant for at least six (6) months prior to the Normal Retirement date, subject to the term of the Award unvested Options will continue to vest and, together with any Options that are vested as of the Optionee’s Normal Retirement date, shall remain outstanding and (once vested) may be exercised until the fifth anniversary of the Normal Retirement date (or if earlier, the expiration date of the Option), (2) with respect to each Tranche of RSUs (other than PSUs) with a Date of Grant on or after the Retirement Provision Transition Date that is unvested as of the Normal Retirement date, such Tranche will vest as of the time-based vesting date for such Tranche, but if and only if any Performance Objective applicable to such Tranche is satisfied on or prior to such time-based vesting date, (3) a pro-rata portion of unvested Performance Stock Units held by the Participant as of the Normal Retirement date (i.e. based on the ratio of (x) the number of full or partial months worked by the Participant in the applicable Performance Period prior to the Participant’s Normal Retirement date to (y) the total number of months in the applicable Performance Period) shall continue to vest subject to actual performance to be measured as of the end of the Performance Period, and (4) all unvested portions of any other outstanding Awards (including without limitation Restricted Stock Grants) shall be immediately forfeited without consideration. If the Date of Grant of an Option does not precede the Optionee’s Normal Retirement date by at least six (6) months, the post-termination exercise period with respect to such Option shall be governed by the other provisions of this Section 11, as applicable. |
(c) | Early Retirement. Solely with respect to Awards with a Date of Grant on or after the Retirement Provision Transition Date, upon termination of employment by reason of the Participant’s Early Retirement, unless contrary to applicable law and unless otherwise provided by the Administrator either initially or subsequent to the grant of the relevant Award (1) subject to the term of the Award a pro-rata portion of any Tranche of unvested Options or SARs held by the Participant for at least six (6) months prior to the Early Retirement date (i.e. based on the ratio of (x) the number of full or partial months worked by the Participant from the Date of Grant to the Early Retirement date to (y) the total number of months in the original time-based vesting schedule of the particular Tranche) will continue to vest and, together with any Options and SARs that are vested as of the Participant’s Early Retirement, shall remain outstanding and (once vested) may be exercised until the fifth anniversary of the Early Retirement date (or if earlier, the expiration date of the Award), (2) a pro-rata portion of any Tranche of RSUs (other than PSUs) that is unvested as of the Early Retirement date (i.e. based on the ratio of (x) the number of full or partial months worked by the Participant from the Date of Grant to the Early Retirement date to (y) the total number of months in the original time-based vesting schedule of the Tranche) will vest as of the time-based vesting date for such Tranche, but if and only if any Performance Objective applicable to such Tranche is satisfied on or prior to such time-based vesting date, (3) a pro-rata portion of the unvested Performance Stock Units held by the Participant as of the Early Retirement date (i.e. based on the ratio of (x) the number of full or partial months worked by the Participant in the applicable Performance Period prior to the Participant’s Early Retirement date to (y) the |
(d) | Other Conditions Applicable to Continued Vesting Upon Retirement. To be eligible for the Retirement treatment described above, if required by the Company or an Eligible Subsidiary the Participant must execute the appropriate form of Company post-employment restrictive covenant agreement. |
(e) | Death. |
(i) | Options/SARs. Upon termination of employment by reason of the Participant’s death, unless contrary to applicable law and unless otherwise provided by the Administrator either initially or subsequent to the grant of the relevant Award, all unexpired Options and SARs will become fully exercisable and, subject to the term of the Option or SAR, may be exercised for a period of twelve months thereafter by the personal representative of the Participant’s estate or any other person to whom the Option or SAR is transferred under a will or under the applicable laws of descent and distribution. |
(ii) | RSUs (Other Than PSUs) and Restricted Stock. Upon termination of employment by reason of the Participant’s death, unless contrary to applicable law and unless otherwise provided by the Administrator either initially or subsequent to the grant of the relevant Award, a portion of the outstanding RSUs (other than PSUs) and Restricted Stock Grants shall become vested which will be determined as follows. With respect to each Tranche, upon the Participant’s death, a pro rata amount of the RSUs (other than PSUs) or the Restricted Stock Grant will vest based on the number of complete twelve-month periods between the Date of Grant and the date of death (provided that any partial twelve-month period between the Date of Grant and the date of death shall also be considered a complete twelve-month period for purposes of this pro-ration methodology), divided by the total number of twelve-month periods in the original time-based vesting schedule of the Tranche. Notwithstanding anything in the Plan to the contrary, unless otherwise provided by the Administrator, this acceleration of the vesting will also apply to any RSUs (other than PSUs) or Restricted Stock Grants the Committee has designated as covered by Performance Objectives for purposes of complying with Code Section 162(m). |
(iii) | PSUs. |
(1) | Upon termination of employment by reason of the Participant’s death prior to the conclusion of the Performance Period applicable to an award of PSUs, unless contrary to applicable law and unless otherwise provided by the Administrator either initially or subsequent to the grant of the relevant Award, the Participant’s estate will become vested in the portion of the Award determined by multiplying (1) the target amount of PSUs (and related Dividend Equivalent rights) subject to such Award, times (2) the quotient of the number of complete twelve-month periods between and including the Commencement Date and the date of death (provided that any partial twelve-month period between and including the Commencement Date and the date of death shall also be considered a complete twelve-month period for purposes of this pro-ration methodology), divided by the total number of twelve-month periods in the Performance Period. Unless otherwise provided by the Administrator, this acceleration of the vesting will also apply to any PSUs the Committee has designated as covered by Performance Objectives for purposes of complying with Code Section 162(m). With respect to any PSUs that vest pursuant to this Section, the underlying Common Stock (and related Dividend Equivalent rights) will be paid to the Participant’s estate as soon as reasonably practicable (but in any event within 90 days) following Participant’s death. |
(2) | Upon termination of employment by reason of the Participant’s death following the conclusion of the Performance Period but prior to the date the Common Stock (and related Dividend Equivalent rights) underlying vested PSUs are issued and paid, unless contrary to applicable law and unless otherwise provided by the Administrator either initially or |
(3) | For avoidance of doubt, in all other situations, if a Participant dies after the Participant’s employment terminates but prior to the date the Common Stock (and related Dividend Equivalent rights) underlying vested PSUs are issued and paid, the underlying Common Stock (and related Dividend Equivalent rights) will be paid to Participant’s estate as soon as reasonably practicable (but in any event within 90 days) following the fifth anniversary of the Commencement Date. |
(iv) | With respect to any Award other than an Option, SAR, RSU or Restricted Stock Grant, all unvested portions of the Award shall be immediately forfeited without consideration, unless otherwise provided by the Administrator. |
(f) | Disability. Upon termination of employment by reason of the Participant’s Disability, unless contrary to applicable law and unless otherwise provided by the Administrator either initially or subsequent to the grant of the relevant Award, all unvested portions of any outstanding Awards shall be immediately forfeited without consideration. The vested portion of any Option or SAR will remain outstanding and, subject to the term of the Option or SAR, may be exercised by the Participant at any time until the first anniversary of the Participant’s termination of employment for Disability. |
(g) | Gross Misconduct. Upon termination of employment by reason of the Participant’s Gross Misconduct as determined by the Administrator, the Administrator in its sole discretion may provide that all, or any portion specified by the Administrator, of the Participant’s (1) unexercised Options and SARs, (2) unvested RSUs, (3) unvested Restricted Stock Grants and (4) unvested Other Stock-Based Awards and Cash-Based Awards granted under the Plan, shall terminate and be forfeited immediately without consideration. Without limiting the foregoing provision, a Participant’s termination of employment shall be deemed to be a termination of employment by reason of the Participant’s Gross Misconduct if, after the Participant’s employment has terminated, facts and circumstances are discovered or confirmed that would have justified a termination for Gross Misconduct. |
(h) | Post-Termination Covenants. Notwithstanding any other provision in the Plan, to the extent any Award may remain outstanding under the terms of the Plan after termination of the Participant’s employment or service-providing relationship, the Award will nevertheless expire as of the date that the Participant violates any covenant not to compete or any other post-termination covenant (including without limitation any nonsolicitation, nonpiracy of employees, nondisclosure, nondisparagement, works-made-for-hire or similar covenants) in effect between the Company and/or any Subsidiary thereof, on the one hand, and the Participant on the other hand, as determined by the Administrator. |
(i) | Leave of Absence. To the extent approved by the Administrator (either specifically or pursuant to rules adopted by the Administrator), the active employer-employee or other active service-providing relationship between the Participant and the Company or an Eligible Subsidiary shall not be considered interrupted in the case of: (i) sick leave; (ii) military leave; or (iii) any other leave of absence. For the avoidance of doubt, the Administrator, in its sole discretion, may determine that a Participant’s leave of absence to complete a course of study will not constitute termination of employment for purposes of the Plan. Further, during any approved leave of absence, the Administrator shall have sole discretion to provide (either specifically or pursuant to rules adopted by the Administrator) that the vesting of any Awards held by the Participant shall be frozen as of the first day of the leave (or as of any subsequent day during such leave, as applicable), and shall not resume until and unless the Participant returns to active employment or service prior to the expiration of the term (if any) of the Awards, subject to any requirements of applicable laws or contract. The Administrator, in its sole discretion, will determine all questions of whether particular terminations or leaves of absence are terminations of active employment or service. |
12. | Award Agreements. The Administrator will communicate the material terms and conditions of an Award to the Participant in any form it deems appropriate, which may include the use of an Award agreement that the Administrator may require the Participant to sign. In the discretion of the Administrator an Award agreement and any provision for acceptance of an Award may be made in electronic format. Notwithstanding the foregoing, the Award agreements may contain special provisions for Participants located outside the United States and any Award agreement provision that |
13. | Award Holder. During the Participant’s lifetime and except as provided under Section 21 below, only the Participant or his/her duly appointed guardian may exercise or hold an Award. After the Participant’s death, the personal representative of his or her estate or any other person authorized under a will or under the laws of descent and distribution may exercise any then exercisable portion of an Award or hold any then nonforfeitable portion of any Award. If someone other than the original Participant seeks to exercise or hold any portion of an Award, the Administrator may request such proof as it may consider necessary or appropriate of the person’s right to exercise or hold the Award. |
14. | Performance Rules. |
(a) | General. Subject to the terms of the Plan, the Committee will have the authority to establish and administer performance-based grant and/or vesting conditions and Performance Objectives with respect to such Awards as it considers appropriate, which Performance Objectives must be satisfied, as determined by the Committee, before the Participant receives or retains an Award or before the Award becomes nonforfeitable. Where such Awards are granted to Covered Employees, such Awards are intended to be subject to the requirements of Code Section 162(m) and conform with all provisions of Code Section 162(m) to the extent necessary to allow the Company to claim a Federal income tax deduction for the Awards as “qualified performance based compensation.” However, the Committee retains the sole discretion to grant Awards that do not so qualify and to determine the terms and conditions of such Awards including any performance-based vesting conditions that shall apply to such Awards. Notwithstanding satisfaction of applicable Performance Objectives, the number of shares of Common Stock, the amount of cash or the other benefits received under an Award that are otherwise earned upon satisfaction of such Performance Objectives may be reduced by the Committee (but not increased) on the basis of such further considerations that the Committee in its sole discretion shall determine. No Award subject to Code Section 162(m) shall be paid or vest, as applicable, unless and until the date that the Committee has certified, in the manner prescribed by Code Section 162(m), the extent to which the Performance Objectives for the Performance Period have been attained and has made its decisions regarding the extent, if any, of a reduction of such Award. |
(b) | Performance Objectives. Performance Objectives will be based exclusively on any one of, or a combination of, the following performance-based measures determined based on the Company and its Subsidiaries on a group-wide basis or on the basis of Subsidiary, platform, division, operating unit and/or other business unit results (subject to the Committee’s exercise of negative discretion): (i) earnings per share (on a fully diluted or other basis), (ii) stock price targets or stock price maintenance, (iii) total shareholder return, (iv) return on capital, return on invested capital or return on equity; (v) pretax or after tax net income, (vi) working capital, (vii) earnings before interest and taxes, (viii) earnings before interest, taxes, depreciation, and amortization (EBITDA), (ix) operating income, (x) free cash flow, (xi) operating cash flow, (xii) revenue or core revenue, (xiii) gross profit margin, operating profit margin, gross or operating margin improvement or core operating margin improvement, or (xiv) strategic business criteria, consisting of one or more objectives based on meeting specified revenue, market penetration, market share or geographic business expansion goals, cost targets, or objective goals relating to acquisitions, divestitures, innovation or product/service vitality. |
15. | Adjustments upon Changes in Capital Stock. Subject to any required action by the Company (which it shall promptly take) or its stockholders, and subject to the provisions of applicable corporate law, if the outstanding shares of Common Stock increase or decrease or change into or are exchanged for a different number or kind of security by reason of any recapitalization, reclassification, stock split, reverse stock split, combination of shares, exchange of shares, stock dividend, or other distribution payable in capital stock, or some other increase or decrease in the Common Stock occurs without the Company’s receiving consideration, the Administrator shall make an equitable adjustment as the Administrator in its sole discretion deems to be appropriate to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan to: (a) the number and kind of shares of Common Stock, other securities or property underlying, or the amount of cash subject to, each outstanding Award; (b) the Exercise Price or purchase price of any outstanding Award and applicable performance conditions relating to any outstanding Award; (c) the Maximum Share Limit; and (d) the number of shares of Common Stock specified as the annual per-Participant limitation under Section 5(b). |
16. | Substantial Corporate Change. |
(a) | Definition. A Substantial Corporate Change means the consummation of: |
(i) | the dissolution or liquidation of the Company; |
(ii) | any transaction or series of transactions in which any person or entity or group of persons or entities is or becomes the owner, directly or indirectly, of voting securities of the Company (not including any securities acquired directly from the Company or any affiliate thereof) representing more than 50% of the combined voting power of the Company’s then outstanding securities; |
(iii) | a change in the composition of the Board such that individuals who were serving on the Board as of May 9, 2017, together with any new member of the Board (other than a member of the Board whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s stockholders was approved or recommended by a vote of at least a majority of the members of the Board then still in office who either were members of the Board on May 9, 2017 or whose appointment, election or nomination for election was previously so approved or recommended, cease for any reason to constitute a majority of the number of the members of the Board then serving; |
(iv) | a merger, consolidation, or reorganization of the Company with one or more corporations, limited liability companies, partnerships or other entities, other than a merger, consolidation or reorganization which would result in the voting securities of the Company outstanding immediately prior to such event continuing to have both (A) more than 50% of the combined voting power of the voting securities of the ultimate parent entity resulting from such merger, consolidation, or reorganization (and such voting power among the holders thereof is in substantially the same proportion as the voting power of such Company voting securities among the holders thereof immediately prior to such transaction), and (B) the power to elect at least a majority of the board of directors or other governing body of the ultimate parent entity resulting from such merger, consolidation, or reorganization; or |
(v) | the sale of all or substantially all of the assets of the Company to another person or entity. |
(b) | Treatment of Awards. Upon a Substantial Corporate Change, either (1) the Board will provide for the assumption or continuation of outstanding Awards, or the substitution for such Awards of any options or grants covering the stock or securities of a successor employer corporation, or a parent or subsidiary of such successor, with appropriate adjustments as to the number and kind of shares of stock and prices, in which event such Awards will continue in the manner and under the terms so provided, or (2) if any outstanding such Award is not so assumed, continued or substituted for, then any forfeitable portions of the Awards will terminate and the Administrator in its sole discretion may: |
(i) | provide that Optionees or holders of SARs will have the right, at such time before the consummation of the transaction causing such termination as the Board reasonably designates, to exercise any unexercised portions of an Option or SAR, whether or not they had previously become exercisable; and/or |
(ii) | for any Awards, cause the Company, or agree to allow the successor, to cancel each Award after payment to the Participant of (A) an amount in cash, cash equivalents, or successor equity interests substantially equal to the Fair Market Value of the shares of Common Stock subject to the Award as determined by reference to the transaction (minus, for Options and SARs, the Exercise Price for the shares covered by the Option or SAR (and for any Awards, where the Board or the Administrator determines it is appropriate, any required tax withholdings)), or (B) an amount in cash or cash equivalents equal to the cash value of the Award with respect to Cash-Based Awards. |
17. | Employees Outside the United States. To comply with the laws in other countries in which the Company or any of its Subsidiaries operates or has Employees, the Administrator, in its sole discretion, shall have the power and authority to: |
(a) | determine which Subsidiaries shall be covered by the Plan; |
(b) | determine which Employees outside the United States are eligible to participate in the Plan; |
(c) | either initially or by amendment, modify the terms and conditions of any Award granted to any Employee outside the United States; |
(d) | either initially or by amendment, establish sub-plans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable; and |
(e) | either initially or by amendment, take any action that it deems advisable to obtain approval or comply with any applicable government regulatory exemptions or approvals. |
18. | Legal Compliance. The granting of Awards, the issuance of shares of Common Stock and the payment of cash under the Plan shall be subject to compliance with all applicable requirements imposed by federal, state, local and foreign securities laws and other laws, rules, and regulations, and by any applicable regulatory agencies or stock exchanges. The Company shall have no obligation to pay cash, issue shares of Common Stock issuable under the Plan or deliver evidence of title for shares of Common Stock issued under the Plan prior to obtaining any approvals from governmental agencies that the Company determines are necessary, and completion of any registration or other qualification of the shares of Common Stock under any applicable national or foreign law or ruling of any governmental body that the Company determines to be necessary. To that end, the Company may require the Participant to take any reasonable action to comply with such requirements before issuing such shares of Common Stock or paying cash. No provision in the Plan or action taken under it authorizes any action that is otherwise prohibited by federal, state, local or foreign laws, rules, or regulations, or by any applicable regulatory agencies or stock exchanges. |
19. | Purchase for Investment and Other Restrictions. Unless a registration statement under the Securities Act covers the shares of Common Stock a Participant receives under an Award, the Administrator may require, at the time of such grant and/or exercise and/or lapse of restrictions, that the Participant agree in writing to acquire such shares for investment and not for public resale or distribution, unless and until the shares subject to the Award are registered under the Securities Act. Unless the shares of Common Stock are registered under the Securities Act, the Participant must acknowledge: |
(a) | that the shares of Common Stock received under the Award are not so registered; |
(b) | that the Participant may not sell or otherwise transfer the shares of Common Stock unless the shares have been registered under the Securities Act in connection with the sale or transfer thereof, or counsel satisfactory to the Company has issued an opinion satisfactory to the Company that the sale or other transfer of such shares is exempt from registration under the Securities Act; and |
(c) | such sale or transfer complies with all other applicable laws, rules, and regulations, including all applicable federal, state, local and foreign securities laws, rules and regulations. |
20. | Tax Withholding. Each Participant shall, no later than the date as of which the value of an Award first becomes includible in the gross income of the Participant for purposes of applicable taxes, pay to the Company, or make arrangements satisfactory to the Administrator regarding payment of, all applicable taxes required by applicable law to |
21. | Transfers, Assignments or Pledges. Unless the Administrator otherwise approves in advance in writing or as set forth below, an Award may not be assigned, pledged, or otherwise transferred in any way, whether by operation of law or otherwise or through any legal or equitable proceedings (including bankruptcy), by the Participant to any person, except by will or by operation of applicable laws of descent and distribution. If necessary to comply with Rule 16b-3 under the Exchange Act, the Participant may not transfer or pledge shares of Common Stock acquired under an Award until at least six months have elapsed from (but excluding) the Date of Grant, unless the Administrator approves otherwise in advance in writing. The Administrator may, in its sole discretion, expressly provide that a Participant may transfer his or her Award (other than a Cash-Based Award), without receiving consideration, to (a) members of the Participant’s immediate family, children, grandchildren, or spouse, (b) a trust in which the Participant and/or such family members collectively have more than 50% of the beneficial interest, or (c) any other entity in which the Participant and/or such family members own more than 50% of the voting interests. |
22. | Amendment or Termination of Plan and Awards. The Board may amend, suspend, or terminate the Plan at any time, without the consent of the Participants or their beneficiaries; provided, however, that no amendment may have a material adverse effect on any Participant or beneficiary with respect to any previously declared Award, unless the Participant’s or beneficiary’s consent is obtained. Except as required by law or by Section 16 above in the event of a Substantial Corporate Change, the Administrator may not, without the Participant’s or beneficiary’s consent, modify the terms and conditions of an Award so as to have a material adverse effect on the Participant or beneficiary. Notwithstanding the foregoing to the contrary, the Board reserves the right, to the extent it deems necessary or advisable in its sole discretion, to unilaterally modify the Plan and any Awards made thereunder to ensure all Awards and Award agreements provided to Participants who are U.S. taxpayers are made in such a manner that either qualifies for exemption from or complies with Code Section 409A including, but not limited to, the ability to increase the exercise or purchase price of an Award (without the consent of the Participant) to the Fair Market Value on the date the Award was granted; provided, however that the Company makes no representations that the Plan or any Awards will be exempt from or comply with Code Section 409A and makes no undertaking to preclude Code Section 409A from applying to the Plan or any Award made thereunder. |
23. | Privileges of Stock Ownership. No Participant and no beneficiary or other person claiming under or through such Participant will have any right, title, or interest in or to any shares of Common Stock allocated or reserved under the Plan or subject to any Award except as to such shares of Common Stock, if any, that have been issued to such Participant. |
24. | Effect on Other Plans. None of the grant, vesting, exercise or payment of any Award under this Plan shall constitute compensation or otherwise result in the accrual or receipt of additional payments or benefits under any pension, bonus, severance, or other plan, program, agreement or arrangement maintained or contributed to by the Company, its Subsidiaries or any affiliates unless such other plan, program, agreement or arrangement expressly and unambiguously so provides in a writing executed by a duly authorized representative of the Company. |
25. | Limitations on Liability. Notwithstanding any other provisions of the Plan, no individual acting as a director, employee, or agent of the Company or any of its Subsidiaries shall be liable to any Participant, former Participant, spouse, beneficiary, or any other person or entity for any claim, loss, liability, or expense incurred in connection with the Plan, nor shall such individual be personally liable because of any contract or other instrument he or she executes in such other capacity. No member of the Board or of the Committee will be liable for any action or determination (including, but limited to, any decision not to act) made in good faith with respect to the Plan or any Award under the |
26. | No Employment Contract. Nothing contained in this Plan constitutes an employment contract between the Company and any Participant. The Plan does not give any Participant any right to be retained in the Company’s employ, nor does it enlarge or diminish the Company’s right to terminate the Participant’s employment. |
27. | Governing Law; Venue; Waiver of Jury Trial. The laws of the State of Delaware (other than its choice of law provisions) govern this Plan and its interpretation. Any dispute that arises with respect to this Plan or any Award granted under this Plan shall be conducted in the courts of New Castle County in the State of Delaware, or the United States Federal court for the District of Delaware, and no other courts; and each Participant waives, to the fullest extent permitted by law, any objection that the laying of the venue of any legal or equitable proceedings related to, concerning or arising from such dispute which is brought in any such court is improper or that such proceedings have been brought in an inconvenient forum. IN ADDITION, TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTICIPANT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING WITH RESPECT TO THIS PLAN OR ANY AWARD GRANTED UNDER THIS PLAN. |
28. | Duration of Plan. The Plan as it is proposed to be amended and restated shall become effective upon its approval by Company shareholders and except as otherwise expressly provided herein or by the Administrator shall govern all Awards previously or subsequently granted hereunder. Unless the Board extends the Plan’s term, the Administrator may not grant Awards under the Plan after May 9, 2027. The Plan will then continue to govern unexercised and unexpired Awards. |
29. | Recoupment. Any Award granted under the Plan on or after March 15, 2009 is subject to the terms of the Danaher Corporation Recoupment Policy in the form approved by the Compensation Committee of Danaher’s Board of Directors from time to time (including any successor thereto) and to the terms required by applicable law. |
30. | Section 409A Requirements. The Plan as well as payments and benefits under the Plan are intended to be exempt from or, to the extent subject thereto, to comply with, Code Section 409A, and, accordingly, to the maximum extent permitted, the Plan shall be interpreted in accordance therewith. Notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Code Section 409A, a Participant shall not be considered to have terminated employment or service with the Company for purposes of the Plan and no payment shall be due to the Participant under the Plan or any Award until the Participant would be considered to have incurred a “separation from service” from the Company and its affiliates within the meaning of Code Section 409A. Any payments described in the Plan that are due within the “short-term deferral period” as defined in Code Section 409A shall not be treated as deferred compensation unless applicable law requires otherwise. Notwithstanding anything to the contrary in the Plan, to the extent that any Awards (or any other amounts payable under any plan, program or arrangement of the Company or any of its affiliates) are payable upon a separation from service and such payment would result in the imposition of any individual tax and penalty interest charges imposed under Code Section 409A, the settlement and payment of such awards (or other amounts) shall instead be made on the first business day after the date that is six (6) months following such separation from service (or death, if earlier). Each amount to be paid or benefit to be provided under this Plan shall be construed as a separate identified payment for purposes of Code Section 409A. The Company makes no representation that any or all of the payments or benefits described in this Plan will be exempt from or comply with Code Section 409A and makes no undertaking to preclude Code Section 409A from applying to any such payment. The Participant shall be solely responsible for the payment of any taxes and penalties incurred under Code Section 409A. |
I. | NOTICE OF STOCK OPTION GRANT |
II. | AGREEMENT |
OPTIONEE | DANAHER CORPORATION | |
Signature | Signature | |
Print Name | Print Name | |
Title | ||
Residence Address |
I. | GRANT NOTICE |
Time-Based Vesting Criteria | The time-based vesting criteria will be satisfied with respect to 100% of the shares underlying the RSUs on the earlier of (1) the first anniversary of the Date of Grant, or (2) the date of, and immediately prior to, the next annual meeting of shareholders of the Company following the Date of Grant. |
II. | AGREEMENT |
PARTICIPANT | DANAHER CORPORATION | |
Signature | Signature | |
Print Name | Print Name | |
Title | ||
Residence Address |
I. | NOTICE OF STOCK OPTION GRANT |
II. | AGREEMENT |
OPTIONEE | DANAHER CORPORATION | |
Signature | Signature | |
Print Name | Print Name | |
Title | ||
Residence Address |
a) | The starting date of the offer will be the Date of Grant (as defined in the Agreement), and this offer conforms to General Ruling No. 336 of the Chilean Superintendence of Securities and Insurance; |
b) | The offer deals with securities not registered in the Registry of Securities or in the Registry of Foreign Securities of the Chilean Superintendence of Securities and Insurance, and therefore such securities are not subject to its oversight; |
c) | The issuer is not obligated to provide public information in Chile regarding the foreign securities, as such securities are not registered with the Chilean Superintendence of Securities and Insurance; and |
d) | The foreign securities shall not be subject to public offering as long as they are not registered with the corresponding registry of securities in Chile. |
a) | La fecha de inicio de la oferta será el de la fecha de otorgamiento (o “Grant Date”, según este término se define en el documento denominado “Agreement”) y esta oferta se acoge a la norma de Carácter General N° 336 de la Superintendencia de Valores y Seguros chilena; |
b) | La oferta versa sobre valores no inscritos en el Registro de Valores o en el Registro de Valores Extranjeros que lleva la Superintendencia de Valores y Seguros chilena, por lo que tales valores no están sujetos a la fiscalización de ésta; |
c) | Por tratar de valores no inscritos en la Superintendencia de valores y Seguros Chilena no existe la obligación por parte del emisor de entregar en Chile información pública respecto de esos valores; y |
d) | Esos valores no podrán ser objeto de oferta pública mientras no sean inscritos en el registro de valores correspondiente. |
1.Purposes for processing of the Personal Data | 1. Цели обработки Персональных данных | ||
1.1. | Granting to the Optionee restricted share units or rights to purchase shares of common stock. | 1.1. | Предоставление Субъектам персональных данных ограниченных прав на акции (Option) или прав покупки обыкновенных акций. |
1.2. | Compliance with the effective Russian Federation laws; | 1.2. | Соблюдение действующего законодательства Российской Федерации; |
2.The Optionee hereby grants consent to processing of the personal data listed below | 2.Субъект персональных данных настоящим дает согласие на обработку перечисленных ниже персональных данных | ||
2.1. | Last name, first name, patronymic, year, month, date and place of birth, gender, age, address, citizenship, information on education, contact details (home address(es), direct office, home and mobile telephone numbers, e-mail address, etc.), photographs; | 2.1. | Фамилия, имя, отчество, год, месяц, дата и место рождения, пол, возраст, адрес, гражданство, сведения об образовании, контактная информация (домашний(е) адрес(а), номера прямого офисного, домашнего и мобильного телефонов, адрес электронной почты и др.), фотографии; |
2.2. | Information contained in personal identification documents (including passport details), tax identification number and number of the State Pension Insurance Certificate, including photocopies of passports, visas, work permits, drivers licenses, other personal documents; | 2.2. | Сведения, содержащиеся в документах, удостоверяющих личность, в том числе паспортные данные, ИНН и номер страхового свидетельства государственного пенсионного страхования, в том числе фотокопии паспортов, виз, разрешений на работу, водительских удостоверений, других личных документов; |
2.3. | Information on employment, including the list of duties, information on the current and former employers, information on promotions, disciplinary sanctions, transfer to other position / work, etc.; | 2.3. | Информация о трудовой деятельности, включая должностные обязанности, информация о текущем и прежних работодателях, сведения о повышениях, дисциплинарных взысканиях, переводах на другую должность/работу, и т.д.; |
2.4. | Information on the Optionee’s salary amount, information on salary changes, on participation in employer benefit plans and programs, on bonuses paid, etc.; | 2.4. | Информация о размере заработной платы Субъекта персональных данных, данные об изменении заработной платы, об участии в премиальных системах и программах Работодателя, информация о выплаченных премиях, и т.д.; |
2.5. | Information on work time, including hours scheduled for work per week and hours actually worked; | 2.5. | Сведения о рабочем времени, включая нормальную продолжительность рабочего времени в неделю и количество фактически отработанного рабочего времени; |
2.6. | Information on potential membership of certain categories of employees having rights for guarantees and benefits in accordance with the Russian Federation Labor Code and other effective legislation; | 2.6. | Сведения о принадлежности к определенным категориям работников, которым предоставляются гарантии и льготы в соответствии с Трудовым кодексом Российской Федерации и иным действующим законодательством; |
2.7. | Information on the Optionee’s tax status (exempt, tax resident status, etc.); | 2.7. | Информация о налоговом статусе Субъекта персональных данных (освобождение от уплаты налогов, является ли налоговым резидентом и т.д.); |
2.8. | Information on shares of Common Stock or directorships held by the Optionee, details of all awards or any other entitlement to shares of Common Stock awarded, cancelled, exercised, vested, unvested or outstanding; | 2.8. | Информация об обыкновенных акциях или членстве в совете директоров Субъекта персональных данных, обо всех программах вознаграждения или иных правах на получение обыкновенных акций, которые были предоставлены, аннулированы, исполнены, погашены, непогашены или подлежат выплате. |
2.9. | Any other information, which may become necessary to the Company in connection with the purposes specified in Clause 2 above. | 2.9. | Любые иные данные, которые могут потребоваться Операторам в связи с осуществлением целей, указанных в п. 3 выше. |
the “Personal Data” | далее – «Персональные данные» | ||
3.1.The Optionee hereby consents to performing the following operations with the Personal Data: | 3.1.Субъект персональных данных настоящим дает согласие на совершение с Персональными данными перечисленных ниже действий: | ||
3.1.1 | processing of the Personal Data, including collection, systematization, accumulation, storage, verification (renewal, modification), use, dissemination (including transfer), impersonalizing, blockage, destruction; | 3.1.1. | обработка Персональных данных, включая сбор, систематизацию, накопление, хранение, уточнение (обновление, изменение), использование, распространение (в том числе передача), обезличивание, блокирование, уничтожение персональных данных; |
3.1.2 | transborder transfer of the Personal Data to îperators located on the territory of foreign states. The Optionee hereby confirms that he was notified of the fact that the recipients of the Personal Data may be located in foreign states that do not ensure adequate protection of rights of personal data subjects; | 3.1.2. | трансграничная передача Персональных данных операторам на территории любых иностранных государств. Субъект персональных данных настоящим подтверждает, что он был уведомлен о том, что получатели Персональных данных могут находиться в иностранных государствах, не обеспечивающих адекватной защиты прав субъектов персональных данных; |
3.1.3 | including Personal Data into generally accessible sources of personal data (including directories, address books and other), placing Personal Data on the Company’s web-sites on the Internet. | 3.1.3. | включение Персональных данных в общедоступные источники персональных данных (в том числе справочники, адресные книги и т.п.), размещение Персональных данных на сайтах Операторов в сети Интернет. |
3.2.General description of the data processing methods used by the Company | 3.2.Общее описание используемых Оператором(ами) способов обработки персональных данных | ||
3.2.1.When processing the Personal Data, the Company undertakes the necessary organizational and technical measures for protecting the Personal Data from unlawful or accidental access to them, from destruction, change, blockage, copying, dissemination of Personal Data, as well as from other unlawful actions. | 3.2.1. При обработке Персональных данных Операторы принимают необходимые организационные и технические меры для защиты Персональных данных от неправомерного или случайного доступа к ним, уничтожения, изменения, блокирования, копирования, распространения Персональных данных, а также от иных неправомерных действий. | ||
3.2.2.Processing of the Personal Data by the Company shall be performed using the data processing methods that ensure confidentiality of the Personal Data, except where: (1) Personal Data is impersonalized; and (2) in relation to publicly available Personal Data; and in compliance with the established requirements to ensuring the security of personal data, the requirements to the tangible media of biometric personal data and to the technologies for storage of such data outside personal data information systems in accordance with the effective legislation. | 3.2.2. Обработка Персональных данных Операторами осуществляется при помощи способов, обеспечивающих конфиденциальность таких данных, за исключением следующих случаев: (1) в случае обезличивания Персональных данных; (2) в отношении общедоступных Персональных данных; и при соблюдении установленных требований к обеспечению безопасности персональных данных, требований к материальным носителям биометрических персональных данных и технологиям хранения таких данных вне информационных систем персональных данных в соответствии с действующим законодательством. | ||
4.Term, revocation procedure | 4. Срок, порядок отзыва |
This Statement of Consent is valid for an indefinite term. The Optionee may revoke this consent by sending to Company a written notice at least ninety (90) days in advance of the proposed consent revocation date. The Optionee agrees that during the specified notice period the Company is not obliged to cease processing of personal data or to destroy the personal data of The Optionee. | Настоящее согласие действует в течение неопределенного срока. Субъект персональных данных может отозвать настоящее согласие путем направления Оператору(ам) письменного(ых) уведомления(ий) не менее чем за 90 (девяносто) дней до предполагаемой даты отзыва настоящего согласия. Субъект персональных данных соглашается на то, что в течение указанного срока Оператор(ы) не обязан(ы) прекращать обработку персональных данных и уничтожать персональные данные Субъекта персональных данных. |
i. | a copy of the Company's most recent annual report (i.e., Form 10-K) is available at: https://investors.danaher.com/sec-filings; |
ii. | a copy of the Plan is attached as an exhibit to the Company’s annual report (i.e., Form 10-K) available at https://investors.danaher.com/sec-filings; and |
iii. | a copy of the Plan Prospectus is available at www.fidelity.com. |
I. | NOTICE OF GRANT |
Time-Based Vesting Criteria | The time-based vesting criteria will be satisfied with respect to [_________]% of the shares underlying the RSUs on each of the [_________] anniversaries of the Date of Grant. |
II. | AGREEMENT |
PARTICIPANT | DANAHER CORPORATION | |
Signature | Signature | |
Print Name | Print Name | |
Title | ||
Residence Address |
a) | The starting date of the offer will be the Date of Grant (as defined in the Agreement), and this offer conforms to General Ruling No. 336 of the Chilean Superintendence of Securities and Insurance; |
b) | The offer deals with securities not registered in the Registry of Securities or in the Registry of Foreign Securities of the Chilean Superintendence of Securities and Insurance, and therefore such securities are not subject to its oversight; |
c) | The issuer is not obligated to provide public information in Chile regarding the foreign securities, as such securities are not registered with the Chilean Superintendence of Securities and Insurance; and |
d) | The foreign securities shall not be subject to public offering as long as they are not registered with the corresponding registry of securities in Chile. |
a) | La fecha de inicio de la oferta será el de la fecha de otorgamiento (o “Date of Grant”, según este término se define en el documento denominado “Agreement”) y esta oferta se acoge a la norma de Carácter General N° 336 de la Superintendencia de Valores y Seguros Chilena; |
b) | La oferta versa sobre valores no inscritos en el Registro de Valores o en el Registro de Valores Extranjeros que lleva la Superintendencia de Valores y Seguros Chilena, por lo que tales valores no están sujetos a la fiscalización de ésta; |
c) | Por tratar de valores no inscritos en la Superintendencia de valores y Seguros Chilena no existe la obligación por parte del emisor de entregar en Chile información pública respecto de esos valores; y |
d) | Esos valores no podrán ser objeto de oferta pública mientras no sean inscritos en el registro de valores correspondiente. |
1.Purposes for processing of the Personal Data | 1. Цели обработки Персональных данных | ||
1.1. | Granting to the Participant restricted share units or rights to purchase shares of common stock. | 1.1. | Предоставление Субъектам персональных данных ограниченных прав на акции (RSU) или прав покупки обыкновенных акций. |
1.2. | Compliance with the effective Russian Federation laws; | 1.2. | Соблюдение действующего законодательства Российской Федерации; |
2.The Participant hereby grants consent to processing of the personal data listed below | 2. Субъект персональных данных настоящим дает согласие на обработку перечисленных ниже персональных данных | ||
2.1. | Last name, first name, patronymic, year, month, date and place of birth, gender, age, address, citizenship, information on education, contact details (home address(es), direct office, home and mobile telephone numbers, e-mail address, etc.), photographs; | 2.1. | Фамилия, имя, отчество, год, месяц, дата и место рождения, пол, возраст, адрес, гражданство, сведения об образовании, контактная информация (домашний(е) адрес(а), номера прямого офисного, домашнего и мобильного телефонов, адрес электронной почты и др.), фотографии; |
2.2. | Information contained in personal identification documents (including passport details), tax identification number and number of the State Pension Insurance Certificate, including photocopies of passports, visas, work permits, drivers licenses, other personal documents; | 2.2. | Сведения, содержащиеся в документах, удостоверяющих личность, в том числе паспортные данные, ИНН и номер страхового свидетельства государственного пенсионного страхования, в том числе фотокопии паспортов, виз, разрешений на работу, водительских удостоверений, других личных документов; |
2.3. | Information on employment, including the list of duties, information on the current and former employers, information on promotions, disciplinary sanctions, transfer to other position / work, etc.; | 2.3. | Информация о трудовой деятельности, включая должностные обязанности, информация о текущем и прежних работодателях, сведения о повышениях, дисциплинарных взысканиях, переводах на другую должность/работу, и т.д.; |
2.4. | Information on the Participant’s salary amount, information on salary changes, on participation in employer benefit plans and programs, on bonuses paid, etc.; | 2.4. | Информация о размере заработной платы Субъекта персональных данных, данные об изменении заработной платы, об участии в премиальных системах и программах Работодателя, информация о выплаченных премиях, и т.д.; |
2.5. | Information on work time, including hours scheduled for work per week and hours actually worked; | 2.5. | Сведения о рабочем времени, включая нормальную продолжительность рабочего времени в неделю и количество фактически отработанного рабочего времени; |
2.6. | Information on potential membership of certain categories of employees having rights for guarantees and benefits in accordance with the Russian Federation Labor Code and other effective legislation; | 2.6. | Сведения о принадлежности к определенным категориям работников, которым предоставляются гарантии и льготы в соответствии с Трудовым кодексом Российской Федерации и иным действующим законодательством; |
2.7. | Information on the Participant’s tax status (exempt, tax resident status, etc.); | 2.7. | Информация о налоговом статусе Субъекта персональных данных (освобождение от уплаты налогов, является ли налоговым резидентом и т.д.); |
2.8. | Information on shares of Common Stock or directorships held by the Participant, details of all awards or any other entitlement to shares of Common Stock awarded, cancelled, exercised, vested, unvested or outstanding; | 2.8. | Информация об обыкновенных акциях или членстве в совете директоров Субъекта персональных данных, обо всех программах вознаграждения или иных правах на получение обыкновенных акций, которые были предоставлены, аннулированы, исполнены, погашены, непогашены или подлежат выплате. |
2.9. | Any other information, which may become necessary to the Company in connection with the purposes specified in Clause 2 above. | 2.9. | Любые иные данные, которые могут потребоваться Операторам в связи с осуществлением целей, указанных в п. 3 выше. |
the “Personal Data” | далее – «Персональные данные» | ||
3.1.The Participant hereby consents to performing the following operations with the Personal Data: | 3.1.Субъект персональных данных настоящим дает согласие на совершение с Персональными данными перечисленных ниже действий: | ||
3.1.1. | processing of the Personal Data, including collection, systematization, accumulation, storage, verification (renewal, modification), use, dissemination (including transfer), impersonalizing, blockage, destruction; | 3.1.1. | обработка Персональных данных, включая сбор, систематизацию, накопление, хранение, уточнение (обновление, изменение), использование, распространение (в том числе передача), обезличивание, блокирование, уничтожение персональных данных; |
3.1.2. | transborder transfer of the Personal Data to îperators located on the territory of foreign states. The Participant hereby confirms that he was notified of the fact that the recipients of the Personal Data may be located in foreign states that do not ensure adequate protection of rights of personal data subjects; | 3.1.2. | трансграничная передача Персональных данных операторам на территории любых иностранных государств. Субъект персональных данных настоящим подтверждает, что он был уведомлен о том, что получатели Персональных данных могут находиться в иностранных государствах, не обеспечивающих адекватной защиты прав субъектов персональных данных; |
3.1.3. | including Personal Data into generally accessible sources of personal data (including directories, address books and other), placing Personal Data on the Company's web-sites on the Internet. | 3.1.3. | включение Персональных данных в общедоступные источники персональных данных (в том числе справочники, адресные книги и т.п.), размещение Персональных данных на сайтах Операторов в сети Интернет. |
3.2.General description of the data processing methods used by the Company | 3.2. Общее описание используемых Оператором(ами) способов обработки персональных данных | ||
3.2.1.When processing the Personal Data, the Company undertakes the necessary organizational and technical measures for protecting the Personal Data from unlawful or accidental access to them, from destruction, change, blockage, copying, dissemination of Personal Data, as well as from other unlawful actions. | 3.2.1. При обработке Персональных данных Операторы принимают необходимые организационные и технические меры для защиты Персональных данных от неправомерного или случайного доступа к ним, уничтожения, изменения, блокирования, копирования, распространения Персональных данных, а также от иных неправомерных действий. | ||
3.2.2.Processing of the Personal Data by the Company shall be performed using the data processing methods that ensure confidentiality of the Personal Data, except where: (1) Personal Data is impersonalized; and (2) in relation to publicly available Personal Data; and in compliance with the established requirements to ensuring the security of personal data, the requirements to the tangible media of biometric personal data and to the technologies for storage of such data outside personal data information systems in accordance with the effective legislation. | 3.2.2. Обработка Персональных данных Операторами осуществляется при помощи способов, обеспечивающих конфиденциальность таких данных, за исключением следующих случаев: (1) в случае обезличивания Персональных данных; (2) в отношении общедоступных Персональных данных; и при соблюдении установленных требований к обеспечению безопасности персональных данных, требований к материальным носителям биометрических персональных данных и технологиям хранения таких данных вне информационных систем персональных данных в соответствии с действующим законодательством. | ||
4.Term, revocation procedure | 4.Срок, порядок отзыва | ||
This Statement of Consent is valid for an indefinite term. The Participant may revoke this consent by sending to Company a written notice at least ninety (90) days in advance of the proposed consent revocation date. The Participant agrees that during the specified notice period the Company is not obliged to cease processing of Personal Data or destroy the Personal Data of the Participant. | Настоящее согласие действует в течение неопределенного срока. Субъект персональных данных может отозвать настоящее согласие путем направления Оператору(ам) письменного(ых) уведомления(ий) не менее чем за 90 (девяносто) дней до предполагаемой даты отзыва настоящего согласия. Субъект персональных данных соглашается на то, что в течение указанного срока Оператор(ы) не обязан(ы) прекращать обработку персональных данных и уничтожать персональные данные Субъекта персональных данных. |
i. | a copy of the Company's most recent annual report (i.e., Form 10-K) is available at: https://investors.danaher.com/sec-filings; |
ii. | a copy of the Plan is attached as an exhibit to the Company’s annual report (i.e., Form 10-K) available at https://investors.danaher.com/sec-filings; and |
iii. | a copy of the Plan Prospectus is available at www.fidelity.com. |
I. | NOTICE OF GRANT |
Vesting Conditions: | Per this Agreement (including Addendum A) |
II. | AGREEMENT |
PARTICIPANT | DANAHER CORPORATION | |
Signature | Signature | |
Print Name | Print Name | |
Title | ||
Residence Address |
TSR Percentile Rank | Percentage of Target PSUs That Will Vest on Vesting Date |
75th percentile and above | 200% |
55th percentile | 100% |
35th percentile | 50% |
Below 35th percentile | 0% |
(a) | if the Company’s TSR for the Performance Period is positive, in no event shall less than twenty-five percent (25%) of the Target PSUs vest; and |
(b) | if the Company’s TSR for the Performance Period is negative, in no event shall more than one hundred percent (100%) of the Target PSUs vest. |
• | “Beginning Price” means, with respect to the Company and any other Comparison Group member, the average of the closing market prices of such company’s common stock on the principal exchange on which such stock is traded for the twenty (20) consecutive trading days ending with the last trading day before the beginning of the Performance Period. For the purpose of determining Beginning Price, the value of dividends and other distributions shall be determined by treating them as reinvested in additional shares of stock at the closing market price on the ex-dividend date. |
• | “Comparison Group” means the Company and each other company included in the Standard & Poor’s 500 index on the first day of the Performance Period and, except as provided below, the common stock (or similar equity security) of which is continually listed or traded on a national securities exchange from the first day of the Performance Period through the last trading day of the Performance Period. In the event a member of the Comparison Group files for bankruptcy or liquidates due to an insolvency, such company shall continue to be treated as a Comparison Group member, and such company’s Ending Price will be treated as $0 if the common stock (or similar equity security) of such company is no longer listed or traded on a national securities exchange on the last trading day of the Performance Period (and if multiple members of the Comparison Group file for bankruptcy or liquidate due to an insolvency, such members shall be ranked in order of when such bankruptcy or liquidation occurs, with earlier bankruptcies/ liquidations ranking lower than later bankruptcies/liquidations). In the event of a formation of a new parent company by a Comparison Group member, substantially all of the assets and liabilities of which consist immediately after the transaction of the equity interests in the original Comparison Group member or the assets and liabilities of such Comparison Group member immediately prior to the transaction, such new parent company shall be substituted for the Comparison Group member to the extent (and for such period of time) as its common stock (or similar equity securities) are listed or traded on a national securities exchange but the common stock (or similar equity securities) of the original Comparison Group member are not. In the event of a merger or other business combination of two Comparison Group members (including, without limitation, the acquisition of one Comparison Group member, or all or substantially all of its assets, by another Comparison Group member), the surviving, resulting or successor entity, as the case may be, shall continue to be treated as a member of the Comparison Group, provided that the common stock (or similar equity security) of such entity is listed or traded on a national securities exchange through the last trading day of the Performance Period. With respect to the preceding two sentences, the applicable stock prices shall be equitably and proportionately adjusted to the extent (if any) necessary to preserve the intended incentives of the awards and mitigate the impact of the transaction. |
• | “Ending Price” means, with respect to the Company and any other Comparison Group member, the average of the |
• | “Performance Period” means the Performance Period specified in the Grant Notice. |
• | “Target PSUs” means the target number of PSUs subject to the Award as specified in the Grant Notice. |
• | “TSR” shall be determined with respect to the Company and any other Comparison Group member by dividing: (a) the sum of (i) the difference obtained by subtracting the applicable Beginning Price from the applicable Ending Price plus (ii) all dividends and other distributions on the respective shares with an ex-dividend date that falls during the Performance Period by (b) the applicable Beginning Price. Any non-cash distributions shall be valued at fair market value. For the purpose of determining TSR, the value of dividends and other distributions shall be determined by treating them as reinvested in additional shares of stock at the closing market price on the date of distribution. |
• | “TSR Percentile Rank” means the percentile ranking of the Company’s TSR among the TSRs for the Comparison Group members for the Performance Period. TSR Percentile Rank is determined by ordering the Comparison Group members (plus the Company if the Company is not one of the Comparison Group members) from highest to lowest based on TSR for the relevant Performance Period and counting down from the company with the highest TSR (ranked first) to the Company’s position on the list. If two companies are ranked equally, the ranking of the next company shall account for the tie, so that if one company is ranked first, and two companies are tied for second, the next company is ranked fourth. In determining the Company’s TSR Percentile Rank for the Performance Period, in the event that the Company’s TSR for the Performance Period is equal to the TSR(s) of one or more other Comparison Group members for that same period, the Company’s TSR Percentile Rank ranking will be determined by ranking the Company’s TSR for that period as being greater than such other Comparison Group members. After this ranking, the TSR Percentile Rank will be calculated using the following formula, rounded to the nearest whole percentile by application of regular rounding: |
TSR Percentile Rank = | (N - R) | * 100 |
N |
Six-Month Period Ended | Year Ended December 31 | ||||||||||||||||||||||
June 30, 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||
Fixed charges: | |||||||||||||||||||||||
Gross interest expense | $ | 81.0 | $ | 204.1 | $ | 162.8 | $ | 119.1 | $ | 141.2 | $ | 152.6 | |||||||||||
Interest element of rental expense | 3.8 | 10.0 | 14.0 | 12.9 | 12.7 | 12.3 | |||||||||||||||||
Interest on unrecognized tax benefits | — | — | — | — | — | — | |||||||||||||||||
Total fixed charges | $ | 84.8 | $ | 214.1 | $ | 176.8 | $ | 132.0 | $ | 153.9 | $ | 164.9 | |||||||||||
Earnings available for fixed charges: | |||||||||||||||||||||||
Earnings from continuing operations (excluding earnings from equity investees) before income taxes plus distributed income of equity investees | $ | 1,230.0 | $ | 2,611.3 | $ | 2,039.4 | $ | 2,086.2 | $ | 2,249.4 | $ | 1,664.0 | |||||||||||
Add fixed charges | 84.8 | 214.1 | 176.8 | 132.0 | 153.9 | 164.9 | |||||||||||||||||
Interest on unrecognized tax benefits | — | — | — | — | — | — | |||||||||||||||||
Total earnings available for fixed charges | $ | 1,314.8 | $ | 2,825.4 | $ | 2,216.2 | $ | 2,218.2 | $ | 2,403.3 | $ | 1,828.9 | |||||||||||
Ratio of earnings to fixed charges | 15.5 | 13.2 | 12.5 | 16.8 | 15.6 | 11.1 | |||||||||||||||||
NOTE: These ratios include Danaher Corporation and its consolidated subsidiaries. The ratio of earnings to fixed charges was computed by dividing earnings by fixed charges for the periods indicated, where “earnings” consist of (1) earnings from continuing operations (excluding earnings from equity investees) before income taxes plus distributed income of equity investees; plus (2) fixed charges, and “fixed charges” consist of (A) interest, whether expensed or capitalized, on all indebtedness, (B) amortization of premiums, discounts and capitalized expenses related to indebtedness, and (C) an interest component representing the estimated portion of rental expense that management believes is attributable to interest. Interest on unrecognized tax benefits is included in the tax provision in the Company's Consolidated Statements of Earnings and is excluded from the computation of fixed charges. |
1. | I have reviewed this Quarterly Report on Form 10-Q of Danaher Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | July 19, 2017 | By: | /s/ Thomas P. Joyce, Jr. |
Thomas P. Joyce, Jr. | |||
President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Danaher Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | July 19, 2017 | By: | /s/ Daniel L. Comas |
Daniel L. Comas | |||
Executive Vice President and Chief Financial Officer |
Date: | July 19, 2017 | By: | /s/ Thomas P. Joyce, Jr. |
Thomas P. Joyce, Jr. | |||
President and Chief Executive Officer |
Date: | July 19, 2017 | By: | /s/ Daniel L. Comas |
Daniel L. Comas | |||
Executive Vice President and Chief Financial Officer |
Document And Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jul. 14, 2017 |
|
Document And Entity Information [Abstract] | ||
Document type | 10-Q | |
Amendment flag | false | |
Document period end date | Jun. 30, 2017 | |
Document fiscal year focus | 2017 | |
Document fiscal period focus | Q2 | |
Trading symbol | dhr | |
Entity registrant name | DANAHER CORP /DE/ | |
Entity central index key | 0000313616 | |
Current fiscal year end date | --12-31 | |
Entity filer category | Large Accelerated Filer | |
Entity common stock, shares outstanding | 694,689,883 |
Consolidated Condensed Statements Of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jul. 01, 2016 |
Jun. 30, 2017 |
Jul. 01, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 557.3 | $ 656.7 | $ 1,063.4 | $ 1,415.1 |
Other comprehensive income (loss), net of income taxes: | ||||
Foreign currency translation adjustments | 274.9 | (161.9) | 579.2 | 39.2 |
Pension and postretirement plan benefit adjustments | 4.9 | 5.8 | 9.8 | 11.1 |
Unrealized gain (loss) on available-for-sale securities adjustments | 10.9 | 1.4 | 18.2 | (130.3) |
Total other comprehensive income (loss), net of income taxes | 290.7 | (154.7) | 607.2 | (80.0) |
Comprehensive income | $ 848.0 | $ 502.0 | $ 1,670.6 | $ 1,335.1 |
Consolidated Condensed Statement Of Stockholders' Equity - 6 months ended Jun. 30, 2017 - USD ($) shares in Millions, $ in Millions |
Total |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Noncontrolling Interests |
---|---|---|---|---|---|---|
Beginning balance, shares at Dec. 31, 2016 | 807.7 | |||||
Beginning balance, amount at Dec. 31, 2016 | $ 23,076.8 | $ 8.1 | $ 5,312.9 | $ 20,703.5 | $ (3,021.7) | $ 74.0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings for the period | 1,063.4 | 1,063.4 | ||||
Other comprehensive income (loss) | 607.2 | 607.2 | ||||
Dividends declared | (194.6) | |||||
Common stock-based award activity, shares | 2.7 | |||||
Common stock-based award activity, amount | $ 0.0 | 112.3 | ||||
Common stock issued in connection with LYONs’ conversions, including tax benefit, shares | 0.0 | |||||
Common stock issued in connection with LYONs’ conversions, including tax benefit, amount | $ 0.0 | 0.1 | ||||
Change in noncontrolling interests | (1.2) | (68.8) | ||||
Ending balance, shares at Jun. 30, 2017 | 810.4 | |||||
Ending balance, amount at Jun. 30, 2017 | $ 24,595.2 | $ 8.1 | $ 5,424.1 | $ 21,572.3 | $ (2,414.5) | $ 5.2 |
Consolidated Condensed Statements Of Cash Flows - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jul. 01, 2016 |
|
Cash flows from operating activities: | ||
Net earnings | $ 1,063.4 | $ 1,415.1 |
Less: earnings from discontinued operations, net of income taxes | (22.3) | (411.3) |
Net earnings from continuing operations | 1,041.1 | 1,003.8 |
Noncash items: | ||
Depreciation | 282.4 | 261.9 |
Amortization | 326.4 | 283.4 |
Stock-based compensation expense | 71.4 | 64.9 |
Restructuring and impairment charges | 49.3 | 0.0 |
Pretax gain on sale of investments | 0.0 | (223.4) |
Change in trade accounts receivable, net | 72.1 | (61.5) |
Change in inventories | (45.4) | (104.9) |
Change in trade accounts payable | (104.1) | (42.7) |
Change in prepaid expenses and other assets | 186.2 | 104.2 |
Change in accrued expenses and other liabilities | (308.7) | 302.8 |
Total operating cash provided by continuing operations | 1,570.7 | 1,588.5 |
Total operating cash provided by discontinued operations | 0.0 | 466.1 |
Net cash provided by operating activities | 1,570.7 | 2,054.6 |
Cash flows from investing activities: | ||
Cash paid for acquisitions | (93.9) | (92.7) |
Payments for additions to property, plant and equipment | (306.5) | (273.5) |
Proceeds from sales of property, plant and equipment | 30.0 | 5.2 |
Proceeds from sale of investments | 0.0 | 264.8 |
All other investing activities | (2.5) | 0.0 |
Total investing cash used in continuing operations | (372.9) | (96.2) |
Total investing cash used in discontinued operations | 0.0 | (69.7) |
Net cash used in investing activities | (372.9) | (165.9) |
Cash flows from financing activities: | ||
Proceeds from the issuance of common stock | 35.8 | 144.8 |
Payment of dividends | (183.9) | (202.8) |
Payment for purchase of noncontrolling interests | (64.4) | 0.0 |
Net repayments of borrowings (maturities of 90 days or less) | (2,387.5) | (1,178.0) |
Proceeds from borrowings (maturities longer than 90 days) | 1,684.0 | 3,240.9 |
Repayments of borrowings (maturities longer than 90 days) | (562.4) | (504.1) |
All other financing activities | (37.3) | (26.7) |
Net cash (used in) provided by financing activities | (1,515.7) | 1,474.1 |
Effect of exchange rate changes on cash and equivalents | 80.6 | (56.0) |
Net change in cash and equivalents | (237.3) | 3,306.8 |
Beginning balance of cash and equivalents | 963.7 | 790.8 |
Ending balance of cash and equivalents | 726.4 | 4,097.6 |
Supplemental disclosures: | ||
Cash interest payments | 58.4 | 102.0 |
Cash income tax payments | $ 266.3 | $ 233.1 |
General |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General | GENERAL The consolidated condensed financial statements included herein have been prepared by Danaher Corporation (“Danaher” or the “Company”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. In this quarterly report, the terms “Danaher” or the “Company” refer to Danaher Corporation, Danaher Corporation and its consolidated subsidiaries or the consolidated subsidiaries of Danaher Corporation, as the context requires. Unless otherwise indicated, all amounts in this quarterly report refer to continuing operations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations; however, the Company believes that the disclosures are adequate to make the information presented not misleading. The consolidated condensed financial statements included herein should be read in conjunction with the financial statements as of and for the year ended December 31, 2016 and the Notes thereto included in the Company’s Current Report on Form 8-K filed on June 19, 2017 and the 2016 Annual Report on Form 10-K filed on February 22, 2017 (collectively, the “2016 Annual Report”). In the opinion of the Company, the accompanying financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position of the Company as of June 30, 2017 and December 31, 2016, its results of operations for the three and six-month periods ended June 30, 2017 and July 1, 2016 and its cash flows for each of the six-month periods then ended. Accumulated Other Comprehensive Income (Loss)—The changes in accumulated other comprehensive income (loss) by component are summarized below ($ in millions). Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries.
(a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost. Refer to Note 7 for additional details.
(a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost. Refer to Note 7 for additional details. (b) Included in other income in the accompanying Consolidated Condensed Statement of Earnings. Refer to Note 10 for additional details. New Accounting Standards—In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which provided clarity on which changes to the terms or conditions of share-based payment awards require an entity to apply the modification accounting provisions required in Topic 718. The standard is effective for all entities for annual periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company does not expect the adoption of this ASU will have a material impact on its consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires employers to disaggregate the service cost component from other components of net periodic benefit costs and to disclose the amounts of net periodic benefit costs that are included in each income statement line item. The standard requires employers to report the service cost component in the same line item as other compensation costs and to report the other components of net periodic benefit costs (which include interest costs, expected return on plan assets, amortization of prior service cost or credits and actuarial gains and losses) separately and outside a subtotal of operating income. The income statement guidance requires application on a retrospective basis. The ASU is effective for public entities for annual periods beginning after December 15, 2017, including interim periods, with early adoption permitted. Management has not yet completed its assessment of the impact of the new standard on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The ASU is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted. Management has not yet completed its assessment of the impact of the new standard on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718), simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, classification of certain items on the statement of cash flows and accounting for forfeitures. The Company has adopted this standard effective January 1, 2017. The ASU requires that the difference between the actual tax benefit realized upon exercise or vesting, as applicable, and the tax benefit recorded based on the fair value of the stock award at the time of grant (the “excess tax benefits”) be reflected as a reduction of the current period provision for income taxes with any shortfall recorded as an increase in the tax provision rather than as a component of changes to additional paid-in capital. The ASU also requires the excess tax benefit realized be reflected as operating cash flow rather than a financing cash flow. For the three and six-month periods ended June 30, 2017, the provision for income taxes from continuing operations was reduced and operating cash flow from continuing operations was increased by $7 million and $33 million, respectively, reflecting the impact of adopting this standard. Had this ASU been adopted at January 1, 2016, the provision for income taxes from continuing operations would have been reduced and operating cash flow from continuing operations would have been increased by $12 million and $26 million from the amounts reported for the three and six-month periods ended July 1, 2016, respectively. The actual benefit to be realized in future periods is inherently uncertain and will vary based on the price of the Company’s common stock as well as the timing of and relative value realized for future share-based transactions. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset and a lease liability for all leases with terms greater than 12 months. The standard also requires disclosures by lessees and lessors about the amount, timing and uncertainty of cash flows arising from leases. The accounting applied by a lessor is largely unchanged from that applied under the current standard. The standard must be adopted using a modified retrospective transition approach and provides for certain practical expedients. The ASU is effective for public entities for fiscal years beginning after December 15, 2018, with early adoption permitted. Management has not yet completed its assessment of the impact of the new standard on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes nearly all existing revenue recognition guidance. The core principle of Topic 606 is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date of the standard by one year which results in the new standard being effective for the Company at the beginning of its first quarter of fiscal year 2018. In addition, during March, April, May and December 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, respectively, which clarified the guidance on certain items such as reporting revenue as a principal versus agent, identifying performance obligations, accounting for intellectual property licenses, assessing collectability, presentation of sales taxes, impairment testing for contract costs and disclosure of performance obligations. The Company plans to adopt the new standard on January 1, 2018 and expects the impact of the new standard on the amount and timing of revenue recognition to be insignificant. The new standard will require certain costs, primarily commissions on contracts greater than one year in duration, to be capitalized rather than expensed currently. The new standard will also require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows from customer contracts, including judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The Company expects to use the modified retrospective method of adoption, reflecting the cumulative effect of initially applying the new standard to revenue recognition in the first quarter of 2018. |
Acquisitions |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | ACQUISITIONS For a description of the Company’s acquisition activity for the year ended December 31, 2016 reference is made to the financial statements as of and for the year ended December 31, 2016 and Note 2 thereto included in the Company’s 2016 Annual Report. The Company continually evaluates potential acquisitions that either strategically fit with the Company’s existing portfolio or expand the Company’s portfolio into a new and attractive business area. The Company has completed a number of acquisitions that have been accounted for as purchases and have resulted in the recognition of goodwill in the Company’s financial statements. This goodwill arises because the purchase prices for these businesses reflect a number of factors including the future earnings and cash flow potential of these businesses, the multiple to earnings, cash flow and other factors at which similar businesses have been purchased by other acquirers, the competitive nature of the processes by which the Company acquired the businesses, avoidance of the time and costs which would be required (and the associated risks that would be encountered) to enhance the Company’s existing product offerings to key target markets and enter into new and profitable businesses, anticipated opportunities for synergies from the elimination of redundant facilities and staffing and use of each party’s respective, existing commercial infrastructure to cost-effectively expand sales of the other party’s products and services, and the complementary strategic fit and resulting synergies these businesses bring to existing operations. The Company makes an initial allocation of the purchase price at the date of acquisition based upon its understanding of the fair value of the acquired assets and assumed liabilities. The Company obtains this information during due diligence and through other sources. In the months after closing, as the Company obtains additional information about these assets and liabilities, including through tangible and intangible asset appraisals, and learns more about the newly acquired business, it is able to refine the estimates of fair value and more accurately allocate the purchase price. Only items identified as of the acquisition date are considered for subsequent adjustment. The Company is continuing to evaluate certain pre-acquisition contingencies associated with certain of its 2017 and 2016 acquisitions and is also in the process of obtaining valuations of certain property, plant, and equipment, acquired intangible assets and certain acquisition-related liabilities in connection with these acquisitions. The Company will make appropriate adjustments to the purchase price allocation prior to completion of the measurement period, as required. During the first six months of 2017, the Company acquired three businesses for total consideration of $94 million in cash, net of cash acquired. The businesses acquired complement existing units of the Life Sciences and Environmental & Applied Solutions segments. The aggregate annual sales of these three businesses at the time of their respective acquisitions, in each case based on the company’s revenues for its last completed fiscal year prior to the acquisition, were approximately $65 million. The Company preliminarily recorded an aggregate of $71 million of goodwill related to these acquisitions. The following summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for all acquisitions consummated during the six-month period ended June 30, 2017 ($ in millions):
Acquisition of Noncontrolling Interest In the first quarter of 2017, Danaher acquired the remaining noncontrolling interest associated with one of its prior business combinations for consideration of $64 million. Danaher recorded the increase in ownership interests as a transaction within stockholders’ equity. As a result of this transaction, noncontrolling interests were reduced by $63 million reflecting the carrying value of the interest with the $1 million difference charged to additional paid-in capital. Pro Forma Financial Information The unaudited pro forma information for the periods set forth below gives effect to the 2017 and 2016 acquisitions as if they had occurred as of January 1, 2016. The pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been achieved had the acquisitions been consummated as of that time ($ in millions, except per share amounts):
In the six-month period ended July 1, 2016, unaudited pro forma earnings set forth above were adjusted to include the $23 million pretax impact of nonrecurring acquisition date fair value adjustments to inventory and deferred revenue primarily related to the 2016 acquisition of Cepheid. |
Discontinued Operations |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | DISCONTINUED OPERATIONS Fortive Corporation Separation On July 2, 2016 (the “Distribution Date”), Danaher completed the separation (the “Separation”) of Fortive Corporation (“Fortive”). For additional details on the Separation reference is made to the financial statements as of and for the year ended December 31, 2016 and Note 3 thereto included in the Company’s 2016 Annual Report. The accounting requirements for reporting the Separation of Fortive as a discontinued operation were met when the Separation was completed. Accordingly, the accompanying consolidated condensed financial statements for all periods presented reflect this business as a discontinued operation. In connection with the Separation, Danaher and Fortive entered into various agreements to effect the Separation and provide a framework for their relationship after the Separation, including a transition services agreement, an employee matters agreement, a tax matters agreement, an intellectual property matters agreement and a Danaher Business System (“DBS”) license agreement. These agreements provide for the allocation between Danaher and Fortive of assets, employees, liabilities and obligations (including investments, property and employee benefits and tax-related assets and liabilities) attributable to periods prior to, at and after Fortive’s separation from Danaher and govern certain relationships between Danaher and Fortive after the Separation. In addition, Danaher is party to various commercial agreements with Fortive entities. The amounts billed for transition services provided under the above agreements as well as commercial sales and purchases to and from Fortive were not material to the Company’s results of operations for the three or six-month periods ended June 30, 2017. In the six-month period ended June 30, 2017, Danaher recorded a $22 million income tax benefit related to the release of previously provided reserves associated with uncertain tax positions on certain Danaher tax returns which were jointly filed with Fortive entities. These reserves were released due to the expiration of statutes of limitations for those returns. All Fortive entity-related balances were included in the income tax benefit related to discontinued operations. The key components of income from discontinued operations for the three-month period ended July 1, 2016 and the six-month periods ended June 30, 2017 and July 1, 2016 were as follows ($ in millions):
|
Goodwill |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | GOODWILL The following is a rollforward of the Company’s goodwill ($ in millions):
The carrying value of goodwill by segment is summarized as follows ($ in millions):
The Company has not identified any “triggering” events which indicate a potential impairment of goodwill in the six-month period ended June 30, 2017. |
Fair Value Measurements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS Accounting standards define fair value based on an exit price model, establish a framework for measuring fair value where the Company’s assets and liabilities are required to be carried at fair value and provide for certain disclosures related to the valuation methods used within a valuation hierarchy as established within the accounting standards. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, or other observable characteristics for the asset or liability, including interest rates, yield curves and credit risks, or inputs that are derived principally from, or corroborated by, observable market data through correlation. Level 3 inputs are unobservable inputs based on the Company’s assumptions. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. A summary of financial assets and liabilities that are measured at fair value on a recurring basis were as follows ($ in millions):
Available-for-sale securities, which are included in other long-term assets in the accompanying Consolidated Condensed Balance Sheets, are either measured at fair value using quoted market prices in an active market or if they are not traded on an active market are valued at quoted prices reported by investment brokers and dealers based on the underlying terms of the security and comparison to similar securities traded on an active market. The Company has established nonqualified deferred compensation programs that permit officers, directors and certain management employees to defer a portion of their compensation, on a pretax basis, until at or after their termination of employment (or board service, as applicable). All amounts deferred under such plans are unfunded, unsecured obligations of the Company and are presented as a component of the Company’s compensation and benefits accrual included in other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets. Participants may choose among alternative earning rates for the amounts they defer, which are primarily based on investment options within the Company’s 401(k) program (except that the earnings rates for amounts deferred by the Company’s directors and amounts contributed unilaterally by the Company are entirely based on changes in the value of the Company’s common stock). Changes in the deferred compensation liability under these programs are recognized based on changes in the fair value of the participants’ accounts, which are based on the applicable earnings rates. Fair Value of Financial Instruments The carrying amounts and fair values of the Company’s financial instruments were as follows ($ in millions):
As of June 30, 2017 and December 31, 2016, available-for-sale securities were categorized as Level 1 and Level 2, as indicated above, and short and long-term borrowings were categorized as Level 1. The fair value of long-term borrowings was based on quoted market prices. The difference between the fair value and the carrying amounts of long-term borrowings (other than the Company’s Liquid Yield Option Notes due 2021 (the “LYONs”)) is attributable to changes in market interest rates and/or the Company’s credit ratings subsequent to the incurrence of the borrowing. In the case of the LYONs, differences in the fair value from the carrying value are attributable to changes in the price of the Company’s common stock due to the LYONs’ conversion features. The fair values of borrowings with original maturities of one year or less, as well as cash and cash equivalents, trade accounts receivable, net and trade accounts payable approximate their carrying amounts due to the short-term maturities of these instruments. |
Financing |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing | FINANCING As of June 30, 2017, the Company was in compliance with all of its debt covenants. The components of the Company’s debt were as follows ($ in millions):
For additional details regarding the Company’s debt financing, reference is made to Note 9 of the Company’s financial statements as of and for the year ended December 31, 2016 included in the Company’s 2016 Annual Report. The Company satisfies any short-term liquidity needs that are not met through operating cash flow and available cash primarily through issuances of commercial paper under its U.S. dollar and euro-denominated commercial paper programs. Credit support for the commercial paper programs is generally provided by the Company’s $4.0 billion unsecured, multi-year revolving credit facility with a syndicate of banks that expires on July 10, 2020 (the “Credit Facility”), which can also be used for working capital and other general corporate purposes. In October 2016, the Company expanded its borrowing capacity by entering into a $3.0 billion 364-day unsecured revolving credit facility with a syndicate of banks that expires on October 23, 2017 (the “364-Day Facility” and together with the Credit Facility, the “Credit Facilities”), to provide additional liquidity support for issuances under the Company’s U.S. dollar and euro-denominated commercial paper programs. Effective April 21, 2017, the Company reduced the commitment amount under the 364-Day Facility from $3.0 billion to $2.3 billion, and effective June 23, 2017, the Company further reduced the commitment amount under the facility to $1.0 billion, as permitted by the facility. As of June 30, 2017, no borrowings were outstanding under the Credit Facilities, and the Company was in compliance with all covenants under the facility. In addition to the Credit Facilities, the Company has also entered into reimbursement agreements with various commercial banks to support the issuance of letters of credit. As of June 30, 2017, borrowings outstanding under the Company’s U.S. dollar and euro-denominated commercial paper programs had a weighted average annual interest rate of negative 0.2% and a weighted average remaining maturity of approximately 55 days. The Company has classified approximately $3.7 billion of its borrowings outstanding under the commercial paper programs as of June 30, 2017 as long-term debt in the accompanying Consolidated Condensed Balance Sheet as the Company had the intent and ability, as supported by availability under the Credit Facility, to refinance these borrowings for at least one year from the balance sheet date. Debt discounts, premiums and debt issuance costs totaled $29 million and $25 million as of June 30, 2017 and December 31, 2016, respectively, and have been netted against the aggregate principal amounts of the related debt in the components of debt table above. 2017 Long-Term Debt Issuances On May 11, 2017, DH Japan Finance S.A. (“Danaher Japan”), a wholly-owned finance subsidiary of the Company, completed the private placement of ¥30.8 billion aggregate principal amount of 0.3% senior unsecured notes due May 11, 2027 (the “2027 Yen Notes”) and ¥53.2 billion aggregate principal amount of 0.65% senior unsecured notes due May 11, 2032 (the “2032 Yen Notes” and together with the 2027 Yen Notes, the “Yen Notes”). The 2027 and 2032 Yen Notes were issued at 100% of their principal amount. The 2027 and 2032 Yen Notes are fully and unconditionally guaranteed by the Company. The Company received net proceeds, after offering expenses, of approximately ¥83.6 billion (approximately $744 million based on currency exchange rates as of the date of the pricing of the notes) and used the net proceeds from the offering to partially repay commercial paper borrowings. Interest on the 2027 and 2032 Yen Notes is payable semiannually in arrears on May 11 and November 11 of each year, commencing on November 11, 2017. On June 30, 2017, DH Europe Finance S.A. (“Danaher International”), a wholly-owned finance subsidiary of the Company, completed the underwritten public offering of €250 million aggregate principal amount of floating rate, senior unsecured notes due 2022 (the “2022 Floating Rate Euronotes”) and €600 million aggregate principal amount of 1.2% senior unsecured notes due 2027 (the “2027 Euronotes” and together with the 2022 Floating Rate Euronotes, the “Euronotes”). The 2022 Floating Rate Euronotes were issued at 100.147% of their principal amount, will mature on June 30, 2022 and bear interest at a floating rate equal to three-month EURIBOR plus 0.3% per year (provided that the minimum interest rate is zero). The 2027 Euronotes were issued at 99.682% of their principal amount, will mature on June 30, 2027 and bear interest at the rate of 1.2% per year. The Euronotes are fully and unconditionally guaranteed by the Company. The Company received net proceeds, after underwriting discounts and commissions and offering expenses, of €843 million (approximately $940 million based on currency exchange rates as of the date of the pricing of the notes) and used the net proceeds from the offering to repay the €500 million aggregate principal amount of floating rate senior unsecured notes which matured on June 30, 2017 as well as to repay commercial paper borrowings. Interest on the 2022 Floating Rate Euronotes is payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, commencing on September 30, 2017. Interest on the 2027 Euronotes is payable annually in arrears on June 30 of each year, commencing on June 30, 2018. The indenture under which the Euronotes were issued contains customary covenants, all of which the Company was in compliance with as of June 30, 2017. If a change of control triggering event occurs with respect to the Euronotes or the Yen Notes, each holder of such notes may require the Company to repurchase some or all of its notes at a purchase price equal to 101% (in the case of the Euronotes) or 100% (in the case of the Yen Notes) of the principal amount of the Euronotes, plus accrued and unpaid interest (and in the case of the Yen Notes, certain swap-related losses as applicable). A change of control triggering event means the occurrence of both a change of control and a rating event, each as defined in the applicable indenture or note purchase agreement. Each holder of the Yen Notes may also require the Company to repurchase some or all of its notes at a purchase price equal to 100% of the principal amount of the notes, plus accrued and unpaid interest and certain swap-related losses as applicable, in certain circumstances whereby such holder comes into violation of economic sanctions laws as a result of holding such notes. At any time and from time to time prior to March 30, 2027 (three months prior to the maturity date of the 2027 Notes), the Company may redeem the 2027 Notes, in whole or in part, by paying the principal amount and a “make-whole” premium, plus accrued and unpaid interest. In addition, on or after March 30, 2027, the Company will have the right, at its option, to redeem the 2027 Notes, in whole or in part, at any time and from time to time, by paying the principal amount plus accrued and unpaid interest. At any time and from time to time, the Company may redeem the Yen Notes, in whole or in part, by paying the principal amount and a “make-whole” premium, plus accrued and unpaid interest and net of certain swap-related gains or losses as applicable. The Company may also redeem the Euronotes and the Yen Notes upon the occurrence of specified, adverse changes in tax laws, or interpretations under such laws, at a redemption price equal to the principal amount of the notes to be redeemed. 2017 Long-Term Debt Repayments The €500 million of floating rate senior unsecured notes due in 2017 were repaid upon their maturity in June 2017. Guarantors of Debt Danaher has guaranteed long-term debt and commercial paper issued by certain of its wholly-owned subsidiaries. The 2017 Euronotes, 2019 Euronotes, 2022 Euronotes, 2022 Floating Rate Euronotes, 2025 Euronotes and 2027 Euronotes were issued by Danaher International. The 2017 CHF Bonds, 2023 CHF Bonds and 2028 CHF Bonds were issued by DH Switzerland Finance S.A. (“Danaher Switzerland”), a wholly-owned finance subsidiary of the Company. The 2021 Yen Notes, 2027 Yen Notes and 2032 Yen Notes were issued by Danaher Japan. All securities issued by each of Danaher International, Danaher Switzerland and Danaher Japan are fully and unconditionally guaranteed by the Company and these guarantees rank on parity with the Company’s unsecured and unsubordinated indebtedness. LYONs Redemption During the six-month period ended June 30, 2017, holders of certain of the Company’s LYONs converted such LYONs into an aggregate of approximately two thousand shares of the Company’s common stock, par value $0.01 per share. The Company’s deferred tax liability associated with the book and tax basis difference in the converted LYONs was transferred to additional paid-in capital as a result of the conversions. |
Defined Benefit Plans |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans | DEFINED BENEFIT PLANS The following sets forth the components of the Company’s net periodic benefit cost of the noncontributory defined benefit pension plans ($ in millions):
The following sets forth the components of the Company’s net periodic benefit cost of the other postretirement employee benefit plans ($ in millions):
Net periodic pension and benefit costs are included in cost of sales and selling, general and administrative expenses in the accompanying Consolidated Condensed Statements of Earnings. Employer Contributions During 2017, the Company’s cash contribution requirements for its U.S. and non-U.S. defined benefit pension plans are expected to be approximately $35 million and $40 million, respectively. The ultimate amounts to be contributed depend upon, among other things, legal requirements, underlying asset returns, the plan’s funded status, the anticipated tax deductibility of the contribution, local practices, market conditions, interest rates and other factors. |
Income Taxes |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company’s effective tax rate from continuing operations for the three and six-month periods ended June 30, 2017 was 13.6% and 15.4%, respectively, as compared to 36.1% and 30.2% for the three and six-month periods ended July 1, 2016, respectively. The Company’s effective tax rate for 2017 and 2016 differs from the U.S. federal statutory rate of 35.0% due principally to the Company’s earnings outside the United States that are indefinitely reinvested and taxed at rates lower than the U.S. federal statutory rate. The effective tax rate for the three-month period ended June 30, 2017 included a benefit from the release of reserves upon the expiration of statutes of limitations and audit settlements, as well as higher tax benefits from restructuring charges that are predominantly in the United States, which in aggregate decreased the reported tax rate by 6.9%. The effective tax rate for the six-month period ended June 30, 2017 reflects the aforementioned benefits recorded in the second quarter of 2017 and higher than expected benefits recorded in the first quarter of 2017 related to excess tax benefits from stock-based compensation, which in aggregate reduced the reported tax rate by 5.1%. The effective tax rate for the three-month period ended July 1, 2016 included charges related to repatriation of earnings and legal entity realignments associated with the Separation and other discrete items, which in aggregate increased the effective tax rate by 15.1%. The effective tax rate for the six-month period ended July 1, 2016 included these Separation charges in addition to the impact of a higher tax rate on the gain from the sale of marketable equity securities which in aggregate increased the effective tax rate by 9.6%. Tax authorities in Denmark have raised significant issues related to interest accrued by certain of the Company’s subsidiaries. On December 10, 2013, the Company received assessments from the Danish tax authority (“SKAT”) totaling approximately DKK 1.4 billion including interest through June 30, 2017 (approximately $222 million based on the exchange rate as of June 30, 2017), imposing withholding tax relating to interest accrued in Denmark on borrowings from certain of the Company’s subsidiaries for the years 2004-2009. The Company is currently in discussions with SKAT and anticipates receiving an assessment for years 2010-2012 totaling approximately DKK 853 million including interest through June 30, 2017 (approximately $131 million based on the exchange rate as of June 30, 2017). Management believes the positions the Company has taken in Denmark are in accordance with the relevant tax laws and is vigorously defending its positions. The Company appealed these assessments with the National Tax Tribunal in 2014 and intends on pursuing this matter through the European Court of Justice should this appeal be unsuccessful. The ultimate resolution of this matter is uncertain, could take many years, and could result in a material adverse impact to the Company’s financial statements, including its effective tax rate. |
Stock Transactions And Stock-Based Compensation |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Transactions And Stock-Based Compensation | STOCK TRANSACTIONS AND STOCK-BASED COMPENSATION Neither the Company nor any “affiliated purchaser” repurchased any shares of Company common stock during the six-month period ended June 30, 2017. On July 16, 2013, the Company’s Board of Directors approved a repurchase program (the “Repurchase Program”) authorizing the repurchase of up to 20 million shares of the Company’s common stock from time to time on the open market or in privately negotiated transactions. As of June 30, 2017, 20 million shares remained available for repurchase pursuant to the Repurchase Program. For a full description of the Company’s stock-based compensation programs, reference is made to Note 17 of the Company’s financial statements as of and for the year ended December 31, 2016 included in the Company’s 2016 Annual Report. As of June 30, 2017, approximately 73 million shares of the Company’s common stock were reserved for issuance under the 2007 Omnibus Incentive Plan. The following summarizes the components of the Company’s stock-based compensation expense ($ in millions):
Stock-based compensation has been recognized as a component of selling, general and administrative expenses in the accompanying Consolidated Condensed Statements of Earnings. As of June 30, 2017, $179 million of total unrecognized compensation cost related to RSUs/PSUs is expected to be recognized over a weighted average period of approximately two years. As of June 30, 2017, $145 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted average period of approximately three years. Future compensation amounts will be adjusted for any changes in estimated forfeitures. The Company realized a tax benefit of $11 million and $49 million in the three and six-month periods ended June 30, 2017, respectively, related to the exercise of employee stock options and vesting of RSUs. As a result of the adoption of ASU 2016-09, Compensation—Stock Compensation, the excess tax benefit of $7 million and $33 million for the three and six-month periods ended June 30, 2017, has been recorded as a reduction to the current income tax provision and is reflected as an operating cash inflow in the accompanying Consolidated Condensed Statement of Cash Flows. Prior to the adoption of ASU 2016-09, the excess tax benefit was recorded as an increase to additional paid-in capital and was reflected as a financing cash flow. |
Nonoperating Income (Expense) |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
Component of Operating Income [Abstract] | |
Nonoperating Income (Expense) | NONOPERATING INCOME (EXPENSE) The Company received $265 million of cash proceeds from the sale of marketable equity securities during the first quarter of 2016. The Company recorded a pretax gain related to this sale of $223 million ($140 million after-tax or $0.20 per diluted share) during the six-month period ended July 1, 2016. |
Restructuring (Notes) |
6 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
Restructuring and Related Activities Disclosure | RESTRUCTURING For additional details regarding the Company’s restructuring activities, reference is made to Note 14 of the Company’s financial statements as of and for the year ended December 31, 2016 included in the Company’s 2016 Annual Report. During the three-month period ended June 30, 2017, the Company made the strategic decision to discontinue a molecular diagnostic product line in its Diagnostics segment. As a result, the Company recorded $76 million of pretax restructuring, impairment and other related charges ($51 million after-tax or $0.07 per diluted share). These charges included $49 million of noncash charges for the impairment of certain technology-related intangible assets as well as related inventory and property, plant, and equipment with no further use. In addition, the Company incurred $27 million of cash restructuring costs primarily related to employee severance and related charges. Substantially all restructuring activities related to this discontinued product line were completed in the three-month period ended June 30, 2017. The restructuring, impairment and other related charges incurred during the three-month period ended June 30, 2017 related to these discontinued product line in the Diagnostics segment are reflected in the following captions in the accompanying Consolidated Condensed Statement of Earnings ($ in millions):
|
Commitments And Contingencies |
6 Months Ended | ||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES For a description of the Company’s litigation and contingencies, reference is made to Note 16 of the Company’s financial statements as of and for the year ended December 31, 2016 included in the Company’s 2016 Annual Report. The Company generally accrues estimated warranty costs at the time of sale. In general, manufactured products are warranted against defects in material and workmanship when properly used for their intended purpose, installed correctly, and appropriately maintained. Warranty period terms depend on the nature of the product and range from 90 days up to the life of the product. The amount of the accrued warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor, and in certain instances estimated property damage. The accrued warranty liability is reviewed on a quarterly basis and may be adjusted as additional information regarding expected warranty costs becomes known. The following is a rollforward of the Company’s accrued warranty liability ($ in millions):
|
Net Earnings Per Share From Continuing Operations |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Earnings Per Share From Continuing Operations | NET EARNINGS PER SHARE FROM CONTINUING OPERATIONS Basic net earnings per share (“EPS”) from continuing operations is calculated by dividing net earnings from continuing operations by the weighted average number of common shares outstanding for the applicable period. Diluted net EPS from continuing operations is computed based on the weighted average number of common shares outstanding increased by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued and reduced by the number of shares the Company could have repurchased with the proceeds from the issuance of the potentially dilutive shares. For the three and six-month periods ended June 30, 2017, approximately four million options to purchase shares were not included in the diluted EPS from continuing operations calculation as the impact of their inclusion would have been anti-dilutive. For both the three and six-month periods ended July 1, 2016 there were no anti-dilutive options to purchase shares excluded from the diluted EPS from continuing operations calculation. Information related to the calculation of net earnings per share from continuing operations is summarized as follows ($ and shares in millions, except per share amounts):
|
Segment Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | SEGMENT INFORMATION The Company operates and reports its results in four separate business segments consisting of the Life Sciences, Diagnostics, Dental and Environmental & Applied Solutions segments. When determining the reportable segments, the Company aggregated operating segments based on their similar economic and operating characteristics. Operating profit represents total revenues less operating expenses, excluding nonoperating income and expense, interest and income taxes. Intersegment amounts are not significant and are eliminated to arrive at consolidated totals. There has been no material change in total assets or liabilities by segment since December 31, 2016. Segment results are shown below ($ in millions):
|
General (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Standards | New Accounting Standards—In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which provided clarity on which changes to the terms or conditions of share-based payment awards require an entity to apply the modification accounting provisions required in Topic 718. The standard is effective for all entities for annual periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company does not expect the adoption of this ASU will have a material impact on its consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires employers to disaggregate the service cost component from other components of net periodic benefit costs and to disclose the amounts of net periodic benefit costs that are included in each income statement line item. The standard requires employers to report the service cost component in the same line item as other compensation costs and to report the other components of net periodic benefit costs (which include interest costs, expected return on plan assets, amortization of prior service cost or credits and actuarial gains and losses) separately and outside a subtotal of operating income. The income statement guidance requires application on a retrospective basis. The ASU is effective for public entities for annual periods beginning after December 15, 2017, including interim periods, with early adoption permitted. Management has not yet completed its assessment of the impact of the new standard on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The ASU is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted. Management has not yet completed its assessment of the impact of the new standard on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718), simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, classification of certain items on the statement of cash flows and accounting for forfeitures. The Company has adopted this standard effective January 1, 2017. The ASU requires that the difference between the actual tax benefit realized upon exercise or vesting, as applicable, and the tax benefit recorded based on the fair value of the stock award at the time of grant (the “excess tax benefits”) be reflected as a reduction of the current period provision for income taxes with any shortfall recorded as an increase in the tax provision rather than as a component of changes to additional paid-in capital. The ASU also requires the excess tax benefit realized be reflected as operating cash flow rather than a financing cash flow. For the three and six-month periods ended June 30, 2017, the provision for income taxes from continuing operations was reduced and operating cash flow from continuing operations was increased by $7 million and $33 million, respectively, reflecting the impact of adopting this standard. Had this ASU been adopted at January 1, 2016, the provision for income taxes from continuing operations would have been reduced and operating cash flow from continuing operations would have been increased by $12 million and $26 million from the amounts reported for the three and six-month periods ended July 1, 2016, respectively. The actual benefit to be realized in future periods is inherently uncertain and will vary based on the price of the Company’s common stock as well as the timing of and relative value realized for future share-based transactions. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset and a lease liability for all leases with terms greater than 12 months. The standard also requires disclosures by lessees and lessors about the amount, timing and uncertainty of cash flows arising from leases. The accounting applied by a lessor is largely unchanged from that applied under the current standard. The standard must be adopted using a modified retrospective transition approach and provides for certain practical expedients. The ASU is effective for public entities for fiscal years beginning after December 15, 2018, with early adoption permitted. Management has not yet completed its assessment of the impact of the new standard on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes nearly all existing revenue recognition guidance. The core principle of Topic 606 is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date of the standard by one year which results in the new standard being effective for the Company at the beginning of its first quarter of fiscal year 2018. In addition, during March, April, May and December 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, respectively, which clarified the guidance on certain items such as reporting revenue as a principal versus agent, identifying performance obligations, accounting for intellectual property licenses, assessing collectability, presentation of sales taxes, impairment testing for contract costs and disclosure of performance obligations. The Company plans to adopt the new standard on January 1, 2018 and expects the impact of the new standard on the amount and timing of revenue recognition to be insignificant. The new standard will require certain costs, primarily commissions on contracts greater than one year in duration, to be capitalized rather than expensed currently. The new standard will also require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows from customer contracts, including judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The Company expects to use the modified retrospective method of adoption, reflecting the cumulative effect of initially applying the new standard to revenue recognition in the first quarter of 2018. |
General (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)—The changes in accumulated other comprehensive income (loss) by component are summarized below ($ in millions). Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries.
(a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost. Refer to Note 7 for additional details.
(a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost. Refer to Note 7 for additional details. (b) Included in other income in the accompanying Consolidated Condensed Statement of Earnings. Refer to Note 10 for additional details. |
Acquisitions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for all acquisitions consummated during the six-month period ended June 30, 2017 ($ in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Results Of Operations If Acquisition Was Consummated | The pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been achieved had the acquisitions been consummated as of that time ($ in millions, except per share amounts):
|
Discontinued Operations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Disposal Group Including Discontinued Operations | The key components of income from discontinued operations for the three-month period ended July 1, 2016 and the six-month periods ended June 30, 2017 and July 1, 2016 were as follows ($ in millions):
|
Goodwill (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rollforward Of Goodwill | The following is a rollforward of the Company’s goodwill ($ in millions):
The carrying value of goodwill by segment is summarized as follows ($ in millions):
|
Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets And Liabilities Carried At Fair Value | A summary of financial assets and liabilities that are measured at fair value on a recurring basis were as follows ($ in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amounts And Fair Values Of Financial Instruments | The carrying amounts and fair values of the Company’s financial instruments were as follows ($ in millions):
|
Financing (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Debt | The components of the Company’s debt were as follows ($ in millions):
|
Defined Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit pension plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The following sets forth the components of the Company’s net periodic benefit cost of the noncontributory defined benefit pension plans ($ in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other postretirement benefit plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The following sets forth the components of the Company’s net periodic benefit cost of the other postretirement employee benefit plans ($ in millions):
|
Stock Transactions And Stock-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Stock-Based Compensation Program | The following summarizes the components of the Company’s stock-based compensation expense ($ in millions):
|
Restructuring (Tables) |
6 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The restructuring, impairment and other related charges incurred during the three-month period ended June 30, 2017 related to these discontinued product line in the Diagnostics segment are reflected in the following captions in the accompanying Consolidated Condensed Statement of Earnings ($ in millions):
|
Commitments And Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Warranty Accrual | The following is a rollforward of the Company’s accrued warranty liability ($ in millions):
|
Net Earnings Per Share From Continuing Operations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Basic And Diluted Earnings Per Share | Information related to the calculation of net earnings per share from continuing operations is summarized as follows ($ and shares in millions, except per share amounts):
|
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Results | Segment results are shown below ($ in millions):
|
General New Accounting Standards (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jul. 01, 2016 |
Jun. 30, 2017 |
Jul. 01, 2016 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
New accounting pronouncement, effect of adoption, compensation-stock compensation | $ 7 | $ 12 | $ 33 | $ 26 |
General (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jul. 01, 2016 |
Jun. 30, 2017 |
Jul. 01, 2016 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ (3,021.7) | |||
Total other comprehensive income (loss), net of income taxes | $ 290.7 | $ (154.7) | 607.2 | $ (80.0) |
Ending balance | (2,414.5) | (2,414.5) | ||
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (2,093.9) | (1,596.3) | (2,398.2) | (1,797.4) |
Increase (decrease) | 274.9 | (161.9) | 579.2 | 39.2 |
Income tax impact | 0.0 | 0.0 | 0.0 | 0.0 |
Other comprehensive income (loss) before reclassifications, net of income taxes | 274.9 | (161.9) | 579.2 | 39.2 |
Increase (decrease) | 0.0 | 0.0 | 0.0 | 0.0 |
Income tax impact | 0.0 | 0.0 | 0.0 | 0.0 |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0.0 | 0.0 | 0.0 | 0.0 |
Total other comprehensive income (loss), net of income taxes | 274.9 | (161.9) | 579.2 | 39.2 |
Ending balance | (1,819.0) | (1,758.2) | (1,819.0) | (1,758.2) |
Pension and postretirement plan benefit adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (637.3) | (642.0) | (642.2) | (647.3) |
Increase (decrease) | 0.0 | 0.0 | 0.0 | 0.0 |
Income tax impact | 0.0 | 0.0 | 0.0 | 0.0 |
Other comprehensive income (loss) before reclassifications, net of income taxes | 0.0 | 0.0 | 0.0 | 0.0 |
Increase (decrease) | 7.6 | 8.6 | 15.2 | 16.4 |
Income tax impact | (2.7) | (2.8) | (5.4) | (5.3) |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 4.9 | 5.8 | 9.8 | 11.1 |
Total other comprehensive income (loss), net of income taxes | 4.9 | 5.8 | 9.8 | 11.1 |
Ending balance | (632.4) | (636.2) | (632.4) | (636.2) |
Unrealized Gain (Loss) on Available-For-Sale Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 26.0 | 1.8 | 18.7 | 133.5 |
Increase (decrease) | 17.4 | 2.3 | 29.1 | 14.9 |
Income tax impact | (6.5) | (0.9) | (10.9) | (5.6) |
Other comprehensive income (loss) before reclassifications, net of income taxes | 10.9 | 1.4 | 18.2 | 9.3 |
Increase (decrease) | 0.0 | 0.0 | 0.0 | (223.4) |
Income tax impact | 0.0 | 0.0 | 0.0 | 83.8 |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0.0 | 0.0 | 0.0 | (139.6) |
Total other comprehensive income (loss), net of income taxes | 10.9 | 1.4 | 18.2 | (130.3) |
Ending balance | 36.9 | 3.2 | 36.9 | 3.2 |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (2,705.2) | (2,236.5) | (3,021.7) | (2,311.2) |
Increase (decrease) | 292.3 | (159.6) | 608.3 | 54.1 |
Income tax impact | (6.5) | (0.9) | (10.9) | (5.6) |
Other comprehensive income (loss) before reclassifications, net of income taxes | 285.8 | (160.5) | 597.4 | 48.5 |
Increase (decrease) | 7.6 | 8.6 | 15.2 | (207.0) |
Income tax impact | (2.7) | (2.8) | (5.4) | 78.5 |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 4.9 | 5.8 | 9.8 | (128.5) |
Total other comprehensive income (loss), net of income taxes | 290.7 | (154.7) | 607.2 | (80.0) |
Ending balance | $ (2,414.5) | $ (2,391.2) | $ (2,414.5) | $ (2,391.2) |
Acquisitions (Narrative) (Details) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Mar. 31, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
Businesses
|
Jul. 01, 2016
USD ($)
|
|
Business Acquisition [Line Items] | |||
Net cash consideration | $ 93.9 | $ 92.7 | |
Goodwill | 70.9 | ||
Payment for purchase of noncontrolling interests | $ 64.0 | $ 64.4 | 0.0 |
Decrease in noncontrolling interests | (63.0) | ||
Decrease in additional paid-in capital | $ (1.0) | ||
Others | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | Businesses | 3 | ||
Net cash consideration | $ 94.0 | ||
Revenue reported by acquired entity for last annual period | 65.0 | ||
Goodwill | $ 71.0 | ||
Fair value adjustment to inventory | Cepheid | |||
Business Acquisition [Line Items] | |||
Fair value adjustment to inventory | $ 23.0 |
Acquisitions Fair Values Of The Assets Acquired And Liabilities Assumed (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jul. 01, 2016 |
|
Business Combinations [Abstract] | ||
Trade accounts receivable | $ 8.6 | |
Inventories | 12.4 | |
Property, plant and equipment | 0.9 | |
Goodwill | 70.9 | |
Other intangible assets, primarily customer relationships, trade names and technology | 27.8 | |
Trade accounts payable | (4.0) | |
Other assets and liabilities, net | (22.2) | |
Assumed debt | (0.5) | |
Net cash consideration | $ 93.9 | $ 92.7 |
Acquisitions (Results Of Operations If Acquisition Was Consummated) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jul. 01, 2016 |
Jun. 30, 2017 |
Jul. 01, 2016 |
|
Business Combinations [Abstract] | ||||
Sales | $ 4,517.8 | $ 4,436.5 | $ 8,740.0 | $ 8,555.6 |
Net earnings from continuing operations | $ 557.3 | $ 383.0 | $ 1,041.4 | $ 919.3 |
Diluted net earnings per share from continuing operations | $ 0.79 | $ 0.55 | $ 1.48 | $ 1.32 |
Discontinued Operations (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jul. 01, 2016 |
Jun. 30, 2017 |
Jul. 01, 2016 |
|
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Income tax benefit | $ 74.8 | $ (22.3) | $ 162.4 |
Discontinued Operations (Components Of Income Related To Discontinued Operations) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jul. 01, 2016 |
Jun. 30, 2017 |
Jul. 01, 2016 |
|
Discontinued Operations and Disposal Groups [Abstract] | ||||
Sales | $ 1,555.1 | $ 0.0 | $ 3,029.8 | |
Cost of sales | (787.0) | 0.0 | (1,566.4) | |
Selling, general and administrative expenses | (347.0) | 0.0 | (679.6) | |
Research and development expenses | (96.7) | 0.0 | (190.4) | |
Interest expense | (10.9) | 0.0 | (19.7) | |
Earnings from discontinued operations before income taxes | 313.5 | 0.0 | 573.7 | |
Income taxes | (74.8) | 22.3 | (162.4) | |
Earnings from discontinued operations, net of income taxes | $ 0.0 | $ 238.7 | $ 22.3 | $ 411.3 |
Goodwill (Rollforward Of Goodwill) (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2017
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 23,826.9 |
Attributable to 2017 acquisitions | 70.9 |
Adjustments due to finalization of purchase price allocations | (54.1) |
Foreign currency translation and other | 679.9 |
Ending balance | $ 24,523.6 |
Goodwill (Goodwill By Segment) (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Goodwill [Line Items] | ||
Total goodwill | $ 24,523.6 | $ 23,826.9 |
Operating segments | Life Sciences | ||
Goodwill [Line Items] | ||
Total goodwill | 11,991.1 | 11,610.3 |
Operating segments | Diagnostics | ||
Goodwill [Line Items] | ||
Total goodwill | 7,006.8 | 6,903.0 |
Operating segments | Dental | ||
Goodwill [Line Items] | ||
Total goodwill | 3,304.9 | 3,215.6 |
Operating segments | Environmental & Applied Solutions | ||
Goodwill [Line Items] | ||
Total goodwill | $ 2,220.8 | $ 2,098.0 |
Fair Value Measurements (Financial Assets And Liabilities Carried At Fair Value) (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Assets: | ||
Available-for-sale securities | $ 195.4 | $ 170.1 |
Liabilities: | ||
Deferred compensation plans | 55.6 | 52.2 |
Quoted Prices in Active Market (Level 1) | ||
Assets: | ||
Available-for-sale securities | 146.2 | 117.8 |
Liabilities: | ||
Deferred compensation plans | 0.0 | 0.0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Available-for-sale securities | 49.2 | 52.3 |
Liabilities: | ||
Deferred compensation plans | 55.6 | 52.2 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Available-for-sale securities | 0.0 | 0.0 |
Liabilities: | ||
Deferred compensation plans | $ 0.0 | $ 0.0 |
Fair Value Measurements (Carrying Amounts And Fair Values Of Financial Instruments) (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Assets: | ||
Available-for-sale securities, carrying amount | $ 195.4 | $ 170.1 |
Available-for-sale securities, fair value | 195.4 | 170.1 |
Liabilities: | ||
Notes payable and current portion of long-term debt | 169.5 | 2,594.8 |
Long-term debt | 11,422.5 | 9,674.2 |
Notes payable and current portion of long-term debt, fair value | 169.5 | 2,594.8 |
Long-term debt, fair value | $ 11,860.8 | $ 10,095.1 |
Financing (Narrative) (Details) $ / shares in Units, shares in Thousands, € in Millions, ¥ in Billions |
6 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2017
EUR (€)
|
May 11, 2017
JPY (¥)
|
May 11, 2017
USD ($)
|
Jun. 30, 2017
JPY (¥)
shares
|
Jun. 30, 2017
USD ($)
$ / shares
|
Jun. 30, 2017
EUR (€)
|
Jun. 23, 2017
USD ($)
|
Apr. 21, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
$ / shares
|
Dec. 31, 2016
EUR (€)
|
Oct. 31, 2016
USD ($)
|
|
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 11,592,000,000 | $ 12,269,000,000 | ||||||||||
Debt discounts, premiums and debt issuance costs | $ 29,000,000 | $ 25,000,000 | ||||||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | ||||||||||
Senior notes | 0.65% senior unsecured notes due 2032 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 470,600,000 | $ 0 | ||||||||||
Debt instrument, face value | ¥ | ¥ 53.2 | ¥ 53.2 | ||||||||||
Interest rate of debt instrument | 0.65% | 0.65% | 0.65% | 0.65% | ||||||||
Debt instrument, redemption price, percentage | 100.00% | 100.00% | ||||||||||
Senior notes | 2027 and 2032 Yen notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, redemption price, percentage | 100.00% | 100.00% | ||||||||||
Net proceeds from debt | ¥ 83.6 | $ 744,000,000 | ||||||||||
Senior notes | Floating rate senior unsecured notes due 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 284,300,000 | 0 | ||||||||||
Debt instrument, face value | € | € 250.0 | |||||||||||
Debt instrument, basis spread on variable rate | 0.30% | 0.30% | ||||||||||
Debt instrument, redemption price, percentage | 100.147% | 100.147% | ||||||||||
Senior notes | 1.2% senior unsecured notes due 2027 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 678,600,000 | 0 | ||||||||||
Debt instrument, face value | € | € 600.0 | |||||||||||
Interest rate of debt instrument | 1.20% | 1.20% | 1.20% | |||||||||
Debt instrument, redemption price, percentage | 99.682% | 99.682% | ||||||||||
Senior notes | Euronotes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, redemption price, percentage | 101.00% | 101.00% | ||||||||||
Net proceeds from debt | $ 940,000,000 | € 843.0 | ||||||||||
Senior notes | Floating rate senior unsecured notes due 2017 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 0 | 526,000,000 | ||||||||||
Debt instrument, face value | € | € 500.0 | € 500.0 | ||||||||||
Senior notes | 0.3% senior unsecured notes due 2027 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 272,500,000 | 0 | ||||||||||
Debt instrument, face value | ¥ | ¥ 30.8 | ¥ 30.8 | ||||||||||
Interest rate of debt instrument | 0.30% | 0.30% | 0.30% | 0.30% | ||||||||
Debt instrument, redemption price, percentage | 100.00% | 100.00% | ||||||||||
Convertible debt | Zero-coupon LYONs due 2021 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 68,900,000 | $ 68,100,000 | ||||||||||
Interest rate of debt instrument | 0.00% | 0.00% | 0.00% | |||||||||
Shares issued under debt conversion, shares | shares | 2 | |||||||||||
Commercial paper | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Weighted average interest rate of long-term debt, interest rate | (0.20%) | (0.20%) | (0.20%) | |||||||||
Long-term debt weighted average maturity | 55 days | 55 days | ||||||||||
Long-term debt | $ 3,700,000,000 | |||||||||||
Revolving credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, amount outstanding | 0 | |||||||||||
Long-term debt | Revolving credit facility | Credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit | $ 4,000,000,000 | |||||||||||
Short-term debt | Revolving credit facility | 364-day facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit | $ 1,000,000,000 | $ 2,300,000,000 | $ 3,000,000,000 | |||||||||
Minimum | Senior notes | Floating rate senior unsecured notes due 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, interest rate, effective percentage | 0.00% | 0.00% | 0.00% |
Financing (Components Of Debt) (Details) € in Millions, SFr in Millions, $ in Millions, ¥ in Billions |
Jun. 30, 2017
CHF (SFr)
|
Jun. 30, 2017
JPY (¥)
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2017
EUR (€)
|
May 11, 2017
JPY (¥)
|
Dec. 31, 2016
CHF (SFr)
|
Dec. 31, 2016
JPY (¥)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2016
EUR (€)
|
---|---|---|---|---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 11,592.0 | $ 12,269.0 | |||||||
Less: currently payable | 169.5 | 2,594.8 | |||||||
Long-term debt excluding currently payable | 11,422.5 | 9,674.2 | |||||||
Other | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | 184.1 | 124.6 | |||||||
Commercial paper | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | 3,700.0 | ||||||||
Commercial paper | U.S. dollar-denominated commercial paper | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | 332.2 | 2,733.5 | |||||||
Commercial paper | Euro-denominated commercial paper | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | 3,361.8 | € 3,000.0 | 3,127.6 | € 3,000.0 | |||||
Senior notes | Floating rate senior unsecured notes due 2017 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | 0.0 | 526.0 | |||||||
Debt instrument, face value | € | € 500.0 | 500.0 | |||||||
Senior notes | 1.65% senior unsecured notes due 2018 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 498.7 | 498.1 | |||||||
Interest rate of debt instrument | 1.65% | 1.65% | 1.65% | 1.65% | |||||
Senior notes | 1.0% senior unsecured notes due 2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 682.6 | 628.6 | |||||||
Interest rate of debt instrument | 1.00% | 1.00% | 1.00% | 1.00% | |||||
Debt instrument, face value | € | € 600.0 | 600.0 | |||||||
Senior notes | 2.4% senior unsecured notes due 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 497.3 | 496.8 | |||||||
Interest rate of debt instrument | 2.40% | 2.40% | 2.40% | 2.40% | |||||
Senior notes | 5.0% senior notes due 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 398.6 | 402.6 | |||||||
Interest rate of debt instrument | 5.00% | 5.00% | 5.00% | 5.00% | |||||
Senior notes | 0.352% senior unsecured notes due 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 265.7 | 255.6 | |||||||
Interest rate of debt instrument | 0.352% | 0.352% | 0.352% | 0.352% | |||||
Debt instrument, face value | ¥ | ¥ 30.0 | ¥ 30.0 | |||||||
Senior notes | 1.7% senior unsecured notes due 2022 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 908.1 | 836.5 | |||||||
Interest rate of debt instrument | 1.70% | 1.70% | 1.70% | 1.70% | |||||
Debt instrument, face value | € | € 800.0 | 800.0 | |||||||
Senior notes | Floating rate senior unsecured notes due 2022 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 284.3 | 0.0 | |||||||
Debt instrument, face value | € | € 250.0 | ||||||||
Senior notes | 2.5% senior unsecured notes due 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 908.3 | 836.8 | |||||||
Interest rate of debt instrument | 2.50% | 2.50% | 2.50% | 2.50% | |||||
Debt instrument, face value | € | € 800.0 | € 800.0 | |||||||
Senior notes | 3.35% senior unsecured notes due 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 496.1 | 495.8 | |||||||
Interest rate of debt instrument | 3.35% | 3.35% | 3.35% | 3.35% | |||||
Senior notes | 0.3% senior unsecured notes due 2027 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 272.5 | 0.0 | |||||||
Interest rate of debt instrument | 0.30% | 0.30% | 0.30% | 0.30% | 0.30% | ||||
Debt instrument, face value | ¥ | ¥ 30.8 | ¥ 30.8 | |||||||
Senior notes | 1.2% senior unsecured notes due 2027 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 678.6 | 0.0 | |||||||
Interest rate of debt instrument | 1.20% | 1.20% | 1.20% | 1.20% | |||||
Debt instrument, face value | € | € 600.0 | ||||||||
Senior notes | 0.65% senior unsecured notes due 2032 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 470.6 | 0.0 | |||||||
Interest rate of debt instrument | 0.65% | 0.65% | 0.65% | 0.65% | 0.65% | ||||
Debt instrument, face value | ¥ | ¥ 53.2 | ¥ 53.2 | |||||||
Senior notes | 4.375% senior unsecured notes due 2045 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 499.3 | 499.3 | |||||||
Interest rate of debt instrument | 4.375% | 4.375% | 4.375% | 4.375% | |||||
Bonds | 0.0% senior unsecured bonds due 2017 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 104.1 | 98.0 | |||||||
Interest rate of debt instrument | 0.00% | 0.00% | 0.00% | 0.00% | |||||
Debt instrument, face value | SFr | SFr 100.0 | SFr 100.0 | |||||||
Bonds | 0.5% senior unsecured bonds due 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 564.8 | 532.3 | |||||||
Interest rate of debt instrument | 0.50% | 0.50% | 0.50% | 0.50% | |||||
Debt instrument, face value | SFr | SFr 540.0 | 540.0 | |||||||
Bonds | 1.125% senior unsecured bonds due 2028 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 115.4 | 108.8 | |||||||
Interest rate of debt instrument | 1.125% | 1.125% | 1.125% | 1.125% | |||||
Debt instrument, face value | SFr | SFr 110.0 | SFr 110.0 | |||||||
Convertible debt | Zero-coupon LYONs due 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 68.9 | $ 68.1 | |||||||
Interest rate of debt instrument | 0.00% | 0.00% | 0.00% | 0.00% |
Defined Benefit Plans (Narrative) (Details) - Defined benefit pension plans $ in Millions |
Jun. 30, 2017
USD ($)
|
---|---|
UNITED STATES | |
Defined Benefit Plan Disclosure | |
Expected future employer contributions, current fiscal year | $ 35 |
Non-U.S. | |
Defined Benefit Plan Disclosure | |
Expected future employer contributions, current fiscal year | $ 40 |
Defined Benefit Plans (Components Of Net Periodic Benefit Cost Of Defined Benefit Pension Pans) (Details) - Defined benefit pension plans - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jul. 01, 2016 |
Jun. 30, 2017 |
Jul. 01, 2016 |
|
UNITED STATES | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | $ 1.9 | $ 2.3 | $ 3.8 | $ 4.6 |
Interest cost | 21.0 | 22.7 | 42.0 | 45.4 |
Expected return on plan assets | (32.9) | (33.3) | (65.8) | (66.6) |
Amortization of actuarial loss | 6.6 | 6.0 | 13.2 | 12.0 |
Curtailment gain recognized | 0.0 | 0.0 | 0.0 | (0.7) |
Net periodic pension cost | (3.4) | (2.3) | (6.8) | (5.3) |
Non-U.S. | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 7.9 | 9.1 | 15.6 | 17.9 |
Interest cost | 6.5 | 8.8 | 12.8 | 17.4 |
Expected return on plan assets | (10.5) | (10.5) | (20.7) | (20.9) |
Amortization of actuarial loss | 1.9 | 1.9 | 3.8 | 3.9 |
Amortization of prior service credit | (0.1) | (0.1) | (0.2) | (0.2) |
Net periodic pension cost | $ 5.7 | $ 9.2 | $ 11.3 | $ 18.1 |
Defined Benefit Plans (Components Of Net Periodic Benefit Cost Of Other PostRetirement Benefit Pension Pans) (Details) - Other postretirement benefit plans - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jul. 01, 2016 |
Jun. 30, 2017 |
Jul. 01, 2016 |
|
Defined Benefit Plan Disclosure | ||||
Service cost | $ 0.2 | $ 0.2 | $ 0.4 | $ 0.4 |
Interest cost | 1.3 | 1.4 | 2.6 | 2.8 |
Amortization of actuarial loss | 0.0 | 0.1 | 0.0 | 0.2 |
Amortization of prior service credit | (0.8) | (0.8) | (1.6) | (1.6) |
Net periodic benefit cost | $ 0.7 | $ 0.9 | $ 1.4 | $ 1.8 |
Income Taxes (Narrative) (Details) DKK in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | 36 Months Ended | ||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
|
Jul. 01, 2016 |
Jun. 30, 2017
USD ($)
|
Jul. 01, 2016 |
Dec. 31, 2016 |
Dec. 31, 2012
DKK
|
Dec. 10, 2013
DKK
|
|
Income Tax Examination [Line Items] | ||||||||
Effective income tax rate, percent | 13.60% | 36.10% | 15.40% | 30.20% | ||||
Federal statutory income tax rate, percent | 35.00% | 35.00% | ||||||
Effective income tax rate reconciliation, statute of limitations, audit settlements, restructuring, percent | (6.90%) | |||||||
Effective income tax rate reconciliation, statute of limitations, audit settlements, restructuring, stock-based compensation, percent | 5.10% | |||||||
Effective income tax rate reconciliation, gain on sale of marketable equity securities, percent | 15.10% | |||||||
Effective income tax rate reconciliation, separation, gain on sale on marketable securities, percent | 9.60% | |||||||
Foreign tax authority | ||||||||
Income Tax Examination [Line Items] | ||||||||
Income tax examination, amount of tax assessments | $ 222 | $ 222 | $ 222 | DKK 1,400 | ||||
Income tax examination, amount of potential additional tax assessments | $ 131 | DKK 853 |
Stock Transactions And Stock-Based Compensation (Narrative) (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2017 |
Jul. 01, 2016 |
Jun. 30, 2017 |
Jul. 01, 2016 |
Jul. 16, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock repurchase program, authorized shares to be repurchased, shares | 20 | |||||
Stock repurchase program, remaining number of shares authorized to be repurchased, shares | 20 | 20 | 20 | |||
Common shares reserved for issuance under the 2007 Stock Incentive Plan, shares | 73 | 73 | 73 | |||
Tax benefit from exercise of stock options | $ 11 | $ 49 | ||||
New accounting pronouncement, effect of adoption, compensation-stock compensation | 7 | $ 12 | 33 | $ 26 | ||
Restricted stock units (“RSUs”)/performance stock units (“PSUs”) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost | $ 179 | 179 | 179 | |||
Weighted average period for cost to be recognized | 2 years | |||||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost | $ 145 | $ 145 | $ 145 | |||
Weighted average period for cost to be recognized | 3 years |
Stock Transactions And Stock-Based Compensation (Components Of Stock-Based Compensation Program) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jul. 01, 2016 |
Jun. 30, 2017 |
Jul. 01, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pretax compensation expense | $ 37.8 | $ 35.3 | $ 71.4 | $ 64.9 |
Income tax benefit | (11.8) | (10.7) | (22.3) | (19.4) |
Stock-based compensation expense, net of income taxes | 26.0 | 24.6 | 49.1 | 45.5 |
Restricted stock units (“RSUs”)/performance stock units (“PSUs”) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pretax compensation expense | 24.1 | 24.0 | 45.7 | 43.9 |
Income tax benefit | (7.4) | (7.2) | (14.1) | (12.9) |
Stock-based compensation expense, net of income taxes | 16.7 | 16.8 | 31.6 | 31.0 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pretax compensation expense | 13.7 | 11.3 | 25.7 | 21.0 |
Income tax benefit | (4.4) | (3.5) | (8.2) | (6.5) |
Stock-based compensation expense, net of income taxes | $ 9.3 | $ 7.8 | $ 17.5 | $ 14.5 |
Nonoperating Income (Expense) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Apr. 01, 2016 |
Jun. 30, 2017 |
Jul. 01, 2016 |
|
Component of Operating Income [Abstract] | |||
Proceeds from sale of marketable securities | $ 265.0 | $ 0.0 | $ 264.8 |
Marketable securities, realized gain | 223.0 | ||
Marketable securities, after tax realized gain | $ 140.0 | ||
Marketable securities, after-tax gain, per diluted share | $ 0.20 |
Restructuring (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2017 |
Jul. 01, 2016 |
|
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and impairment charges | $ 49.3 | $ 0.0 | |
Molecular diagnostic product line | Operating segments | Diagnostics | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | $ 75.9 | ||
Restructuring charges, after-tax | $ 51.0 | ||
Restructuring charges, after-tax, per diluted share | $ 0.07 | ||
Restructuring and impairment charges | $ 49.0 | ||
Severance Costs | $ 27.0 |
Restructuring (Restructuring Reserve by Type of Cost) (Details) - Operating segments - Molecular diagnostic product line - Diagnostics $ in Millions |
3 Months Ended |
---|---|
Jun. 30, 2017
USD ($)
| |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and other related charges | $ 75.9 |
Cost of sales | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and other related charges | 20.7 |
Selling, general and administrative expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and other related charges | $ 55.2 |
Commitments And Contingencies (Narrative) (Details) |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
Minimum | |
Warranty period, term | 90 days |
Commitments And Contingencies (Warranty Accrual) (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2017
USD ($)
| |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |
Beginning balance | $ 75.8 |
Accruals for warranties issued during the period | 24.4 |
Settlements made | (26.8) |
Additions due to acquisitions | 1.2 |
Effect of foreign currency translation | 2.3 |
Ending balance | $ 76.9 |
Net Earnings Per Share From Continuing Operations (Narrative) (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jul. 01, 2016 |
Jun. 30, 2017 |
Jul. 01, 2016 |
|
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, shares | 4 | 0 | 4 | 0 |
Net Earnings Per Share From Continuing Operations (Components Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jul. 01, 2016 |
Jun. 30, 2017 |
Jul. 01, 2016 |
|
Earnings Per Share [Abstract] | ||||
Basis EPS, net earnings from continuing operations (numerator) | $ 557.3 | $ 418.0 | $ 1,041.1 | $ 1,003.8 |
Adjustment for interest on convertible debentures, net earnings from continuing operations (numerator) | 0.5 | 0.5 | 1.0 | 0.9 |
Diluted EPS, net earnings from continuing operations (numerator) | $ 557.8 | $ 418.5 | $ 1,042.1 | $ 1,004.7 |
Basic EPS, shares (denominator) | 695.4 | 690.9 | 694.9 | 689.8 |
Incremental shares from assumed exercise of dilutive options and vesting of dilutive RSUs and PSUs, Shares (Denominator) | 7.1 | 5.7 | 7.7 | 5.9 |
Incremental shares from assumed conversion of the convertible debentures, Shares (Denominator) | 2.9 | 2.3 | 2.9 | 2.3 |
Diluted EPS, shares (denominator) | 705.4 | 698.9 | 705.5 | 698.0 |
Basis EPS, per share amount | $ 0.80 | $ 0.60 | $ 1.50 | $ 1.46 |
Diluted EPS, per share amount | $ 0.79 | $ 0.60 | $ 1.48 | $ 1.44 |
Segment Information (Segment Results) (Details) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017
USD ($)
Business_Segments
|
Jul. 01, 2016
USD ($)
|
Jun. 30, 2017
USD ($)
|
Jul. 01, 2016
USD ($)
|
|
Segment Reporting Information [Line Items] | ||||
Number of segments reported | Business_Segments | 4 | |||
Sales | $ 4,510.1 | $ 4,241.9 | $ 8,715.8 | $ 8,166.0 |
Operating profit | 683.7 | 710.1 | 1,307.6 | 1,323.2 |
Operating segments | Life Sciences | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,384.3 | 1,328.3 | 2,692.4 | 2,586.4 |
Operating profit | 221.6 | 192.2 | 433.2 | 369.4 |
Operating segments | Diagnostics | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,440.0 | 1,257.6 | 2,767.3 | 2,393.8 |
Operating profit | 157.6 | 232.2 | 312.2 | 412.4 |
Operating segments | Dental | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 702.6 | 714.6 | 1,358.1 | 1,370.5 |
Operating profit | 109.8 | 109.2 | 199.2 | 204.3 |
Operating segments | Environmental & Applied Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 983.2 | 941.4 | 1,898.0 | 1,815.3 |
Operating profit | 235.2 | 218.3 | 443.2 | 416.7 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit | $ (40.5) | $ (41.8) | $ (80.2) | $ (79.6) |
(@01Q0$'_H40BS#R?9!Y/L P2',,$A2'#X>IE)D"#Y0IDA3/(A"5G=
M/0&J]E.G42&'SD_\RKL,]BWU=_<-/KT*OYFJVTZCBS1V OP]K:0T8*5L;FS+
M&_L0+0:'RKCMP>[5-(Z3860_OS1D>>[R%U!+ P04 " 'DO-*OTN,6;M\?&7-E"UJX&]-#AS>UL5IX-&W#7&]!5)&D%>-) ;V0$-#FATD.S_.02#0_#A$.KB^\QT
MJ9^PP'G&:&>Q_FNU6&T*?QO(Q2R44:^=?B>KY=)ZSU&RR=R["C1H#KT&333^
MJ'!E]!&!3(@#6KBC?P''I2(.S83 6$2@_8-I@G%J#A : X0Z0#A-,?5FJ]!K
M$JUIM"9U8C,D,D(B \2?07I-.H'XR%E9B]A(B0V4V7H?X@7% P0J0"E^5>3,)FU/EO)"Z:OL?-TN_$@2D9IL
MN+3 XG,B):EKZ20X_FA3?\PI Z?M=_?/JGA1S MFI*3U[VK+#PL_][TMV>%C
MS9_I^0O1!:6^IZO_1DZD%G))(G)L:,W4K[ 1K+6WR:B_TB[^
M 5!+ P04 " 'DO-*J?*1#D4# "1#0 &0 'AL+W=O;V
MJM=L_FKT.AE!4A 3K'W9 NL_POEN:(9+">;IN
BU$>K%&D6'
MH?<4JELWB>_D,#2SZSV-F:0_,+M4#7>.5,@[K6_>F5(!LD9_(1M=RN$]' B<
MA=JF