XML 23 R9.htm IDEA: XBRL DOCUMENT v3.20.2
General
 6 Months Ended
Jul. 03, 2020
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 (“SEC”). In this quarterly report, the terms “Danaher” or the “Company” refer to Danaher Corporation, Danaher Corporation and its consolidated subsidiaries, (unless otherwise indicated or the context otherwise requires) or the consolidated subsidiaries of Danaher Corporation, as the context requires. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to SEC 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, 2019 and the Notes thereto included in the Company’s 2019 Annual Report on Form 10-K filed on February 21, 2020 (the “2019 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 July 3, 2020 and December 31, 2019, its results of operations for the three and six-month periods ended July 3, 2020 and June 28, 2019 and its cash flows for each of the six-month periods then ended.
Accounting Standards Recently Adopted—In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820), which modifies the disclosures on fair value measurements by removing the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for timing of such transfers. The ASU expands the disclosure requirements for Level 3 fair value measurements, primarily focused on changes in unrealized gains and losses included in other comprehensive income (loss). The ASU is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted. On January 1, 2020, the Company adopted the ASU and the ASU did not have a significant impact on the Company’s Consolidated Condensed Financial Statements. Refer to Note 6 for the Company’s fair value measurement disclosures.
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 rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. The ASU is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, which provided additional implementation guidance on the previously issued ASU. On January 1, 2020, the Company adopted the ASU using the modified retrospective transition method. The Company recorded a net decrease to beginning retained earnings of $8 million as of January 1, 2020 due to the cumulative impact of adopting Topic 326. The impact to retained earnings was primarily the result of an increase in the Company’s allowance for doubtful accounts as a result of Topic 326’s requirement to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. As a result of the adoption of the ASU, the Company’s allowance for doubtful accounts as of July 3, 2020 reflects the Company’s best estimate of the expected future losses for its accounts receivables based on the current economic conditions; however, as a result of the uncertainty caused by the coronavirus (COVID-19) pandemic and other factors, these estimates may change and future actual losses may differ from the Company’s estimates. The Company will continue to monitor economic conditions and will revise the estimates of the expected future losses for accounts receivable as necessary.
Accounting Standards Not Yet Adopted—In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans, which amends ASC 715, Compensation—Retirement Benefits, to add, remove and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The ASU is effective for public entities for fiscal years beginning after December 15, 2020, with early adoption permitted. Management has not yet completed its assessment of the impact of the new standard on the Company’s financial statements.
Operating Leases—As of July 3, 2020 and December 31, 2019, operating lease right-of-use assets where the Company was the lessee were $870 million and $764 million, respectively, and are included within other long-term assets in the accompanying Consolidated Condensed Balance Sheets.  The associated operating lease liabilities were $894 million and $797 million as of
July 3, 2020 and December 31, 2019, respectively, and are included in accrued expenses and other liabilities and other long-term liabilities.
Accumulated Other Comprehensive Income (Loss)—Accumulated other comprehensive income (loss) refers to certain gains and losses that under U.S. GAAP are included in comprehensive income (loss) but are excluded from net earnings as these amounts are initially recorded as an adjustment to stockholders’ equity. The changes in accumulated other comprehensive income (loss) by component are summarized below ($ in millions). Foreign currency translation adjustments generally relate to indefinite investments in non-U.S. subsidiaries, as well as the impact from the Company’s hedges of its net investment in foreign operations, including the Company’s cross-currency swap derivatives, net of any income tax impacts.
 
Foreign Currency Translation Adjustments
 
Pension & Postretirement Plan Benefit Adjustments
 
Unrealized Gain (Loss) on Available-For-Sale Securities Adjustments
 
Cash Flow Hedge Adjustments
 
Total
For the Three-Month Period Ended July 3, 2020:
 
 
Balance, April 3, 2020
$
(2,327.2
)
 
$
(773.3
)
 
$
(0.1
)
 
$
309.3

 
$
(2,791.3
)
Other comprehensive income (loss) before reclassifications:
 
 
 
 
 
 
 
 
 
Increase (decrease)
1,070.6

 
—

 
0.5

 
(354.3
)
 
716.8

Income tax impact
6.1

 
—

 
(0.1
)
 
74.4

 
80.4

Other comprehensive income (loss) before reclassifications, net of income taxes
1,076.7

 
—

 
0.4

 
(279.9
)
 
797.2

Amounts reclassified from accumulated other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
Increase
—

 
10.4

(a)
—

 
155.8

(b)
166.2

Income tax impact
—

 
(2.5
)
 
—

 
(32.7
)
 
(35.2
)
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes
—

 
7.9

 
—

 
123.1

 
131.0

Net current period other comprehensive income (loss), net of income taxes
1,076.7

 
7.9

 
0.4

 
(156.8
)
 
928.2

Balance, July 3, 2020
$
(1,250.5
)
 
$
(765.4
)
 
$
0.3

 
$
152.5

 
$
(1,863.1
)
 
 
 
 
 
 
 
 
 
 
For the Three-Month Period Ended June 28, 2019:
 
 
Balance, March 29, 2019
$
(2,108.9
)
 
$
(685.7
)
 
$
(1.5
)
 
$
—

 
$
(2,796.1
)
Other comprehensive income (loss) before reclassifications:
 
 
 
 
 
 
 
 
 
(Decrease) increase
(51.9
)
 
—

 
0.7

 
(8.9
)
 
(60.1
)
Income tax impact
5.4

 
—

 
(0.2
)
 
2.1

 
7.3

Other comprehensive income (loss) before reclassifications, net of income taxes
(46.5
)
 
—

 
0.5

 
(6.8
)
 
(52.8
)
Amounts reclassified from accumulated other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
Increase
—

 
6.1

(a)
—

 
—

 
6.1

Income tax impact
—

 
(1.5
)
 
—

 
—

 
(1.5
)
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes
—

 
4.6

 
—

 
—

 
4.6

Net current period other comprehensive income (loss), net of income taxes
(46.5
)
 
4.6

 
0.5

 
(6.8
)
 
(48.2
)
Balance, June 28, 2019
$
(2,155.4
)
 
$
(681.1
)
 
$
(1.0
)
 
$
(6.8
)
 
$
(2,844.3
)
(a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost. Refer to Notes 9 and 11 for additional details.
(b) Reflects reclassification to earnings related to hedges of certain long-term debt (refer to Note 8 for additional details).
 
Foreign Currency Translation Adjustments
 
Pension & Postretirement Plan Benefit Adjustments
 
Unrealized Gain (Loss) on Available-For-Sale Securities Adjustments
 
Cash Flow Hedge Adjustments
 
Total
For the Six-Month Period Ended July 3, 2020:
 
 
Balance, December 31, 2019
$
(2,173.3
)
 
$
(781.5
)
 
$
(0.7
)
 
$
(112.8
)
 
$
(3,068.3
)
Other comprehensive income (loss) before reclassifications:
 
 
 
 
 
 
 
 
 
Increase
939.1

 
—

 
1.2

 
296.5

 
1,236.8

Income tax impact
(16.3
)
 
—

 
(0.2
)
 
(44.5
)
 
(61.0
)
Other comprehensive income (loss) before reclassifications, net of income taxes
922.8

 
—

 
1.0

 
252.0

 
1,175.8

Amounts reclassified from accumulated other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
Increase
—

 
21.2

(a)
—

 
17.0

(b)
38.2

Income tax impact
—

 
(5.1
)
 
—

 
(3.7
)
 
(8.8
)
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes
—

 
16.1

 
—

 
13.3

 
29.4

Net current period other comprehensive income (loss), net of income taxes
922.8

 
16.1

 
1.0

 
265.3

 
1,205.2

Balance, July 3, 2020
$
(1,250.5
)
 
$
(765.4
)
 
$
0.3

 
$
152.5

 
$
(1,863.1
)
 
 
 
 
 
 
 
 
 
 
For the Six-Month Period Ended June 28, 2019:
 
 
Balance, December 31, 2018
$
(2,098.1
)
 
$
(691.1
)
 
$
(1.9
)
 
$
—

 
$
(2,791.1
)
Other comprehensive income (loss) before reclassifications:
 
 
 
 
 
 
 
 
 
(Decrease) increase
(59.2
)
 
—

 
1.2

 
(8.9
)
 
(66.9
)
Income tax impact
1.9

 
—

 
(0.3
)
 
2.1

 
3.7

Other comprehensive income (loss) before reclassifications, net of income taxes
(57.3
)
 
—

 
0.9

 
(6.8
)
 
(63.2
)
Amounts reclassified from accumulated other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
Increase
—

 
13.2

(a)
—

 
—

 
13.2

Income tax impact
—

 
(3.2
)
 
—

 
—

 
(3.2
)
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes
—

 
10.0

 
—

 
—

 
10.0

Net current period other comprehensive income (loss), net of income taxes
(57.3
)
 
10.0

 
0.9

 
(6.8
)
 
(53.2
)
Balance, June 28, 2019
$
(2,155.4
)
 
$
(681.1
)
 
$
(1.0
)
 
$
(6.8
)
 
$
(2,844.3
)
(a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost. Refer to Note 9 and 11 for additional details.
(b) Reflects reclassification to earnings related to hedges of certain long-term debt (refer to Note 8 for additional details).