Discontinued Operations

6 Months Ended

Jun. 28, 2024

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

On September 30, 2023, the Company completed the separation (the “Separation”) of Veralto Corporation (“Veralto”). For additional details on the Separation, reference is made to the financial statements as of and for the year ended December 31, 2023 and Note 3 thereto included in the Company’s 2023 Annual Report on Form 10-K. The accounting requirements for reporting the Separation of Veralto 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 Veralto entered into various agreements to effect the Separation and provide a framework for their relationship after the Separation, including a separation and distribution agreement, transition services agreement, an employee matters agreement, a tax matters agreement, an intellectual property matters agreement and a Danaher Business System license agreement. These agreements provide for the allocation between Danaher and Veralto 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 Veralto’s separation from Danaher and govern certain relationships between Danaher and Veralto after the Separation.

The key components of income from discontinued operations for the three and six-month periods ended June 30, 2023 were as follows ($ in millions):

	Three-Month Period Ended		Six-Month Period Ended
Sales	$	1,245	$	2,463
Cost of sales	(522)		(1,032)
Selling, general and administrative expenses	(400)		(775)
Research and development expenses	(57)		(113)
Other income (expense)	(14)		(14)
Interest expense	(2)		(4)
Income from discontinued operations before income taxes	250		525
Income tax expense	(64)		(129)
Earnings from discontinued operations, net of income taxes	$	186	$	396