Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 20, 2023 | |
Entity Information [Line Items] | ||
Document type | 10-Q | |
Document quarterly report | true | |
Document period end date | Jun. 30, 2023 | |
Document transition report | false | |
Entity file number | 001-08089 | |
Entity registrant name | DANAHER CORPORATION | |
Entity incorporation, state code | DE | |
Entity tax identification number | 59-1995548 | |
Entity address, address line one | 2200 Pennsylvania Avenue, N.W., Suite 800W | |
Entity address, postal zip code | 20037-1701 | |
Entity address, city | Washington, | |
Entity address, state | DC | |
City area code | 202 | |
Local phone number | 828-0850 | |
Entity current reporting status | Yes | |
Entity interactive data current | Yes | |
Entity filer category | Large Accelerated Filer | |
Entity small business | false | |
Entity emerging growth company | false | |
Entity shell company | false | |
Entity common stock, shares outstanding | 738,352,114 | |
Amendment flag | false | |
Document fiscal year focus | 2023 | |
Document fiscal period focus | Q2 | |
Current fiscal year end date | --12-31 | |
Entity central index key | 0000313616 | |
Common stock | ||
Entity Information [Line Items] | ||
Title of 12(b) security | Common stock, $0.01 par value | |
Trading symbol | DHR | |
Security exchange name | NYSE | |
1.700% Senior Notes due 2024 | ||
Entity Information [Line Items] | ||
Title of 12(b) security | 1.700% Senior Notes due 2024 | |
Trading symbol | DHR 24 | |
Security exchange name | NYSE | |
0.200% Senior Notes due 2026 | ||
Entity Information [Line Items] | ||
Title of 12(b) security | 0.200% Senior Notes due 2026 | |
Trading symbol | DHR/26 | |
Security exchange name | NYSE | |
2.100% Senior Notes due 2026 | ||
Entity Information [Line Items] | ||
Title of 12(b) security | 2.100% Senior Notes due 2026 | |
Trading symbol | DHR 26 | |
Security exchange name | NYSE | |
1.200% Senior Notes due 2027 | ||
Entity Information [Line Items] | ||
Title of 12(b) security | 1.200% Senior Notes due 2027 | |
Trading symbol | DHR/27 | |
Security exchange name | NYSE | |
0.450% Senior Notes due 2028 | ||
Entity Information [Line Items] | ||
Title of 12(b) security | 0.450% Senior Notes due 2028 | |
Trading symbol | DHR/28 | |
Security exchange name | NYSE | |
2.500% Senior Notes due 2030 | ||
Entity Information [Line Items] | ||
Title of 12(b) security | 2.500% Senior Notes due 2030 | |
Trading symbol | DHR 30 | |
Security exchange name | NYSE | |
0.750% Senior Notes due 2031 | ||
Entity Information [Line Items] | ||
Title of 12(b) security | 0.750% Senior Notes due 2031 | |
Trading symbol | DHR/31 | |
Security exchange name | NYSE | |
1.350% Senior Notes due 2039 | ||
Entity Information [Line Items] | ||
Title of 12(b) security | 1.350% Senior Notes due 2039 | |
Trading symbol | DHR/39 | |
Security exchange name | NYSE | |
1.800% Senior Notes due 2049 | ||
Entity Information [Line Items] | ||
Title of 12(b) security | 1.800% Senior Notes due 2049 | |
Trading symbol | DHR/49 | |
Security exchange name | NYSE |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and equivalents | $ 8,575 | $ 5,995 |
Trade accounts receivable, less allowance for doubtful accounts of $130 and $126, respectively | 4,199 | 4,918 |
Inventories: | ||
Finished goods | 1,520 | 1,504 |
Work in process | 528 | 473 |
Raw materials | 1,135 | 1,133 |
Total inventories | 3,183 | 3,110 |
Prepaid expenses and other current assets | 1,504 | 1,860 |
Total current assets | 17,461 | 15,883 |
Property, plant and equipment, net of accumulated depreciation of $4,120 and $3,893, respectively | 4,176 | 3,956 |
Other long-term assets | 4,372 | 4,459 |
Goodwill | 39,576 | 39,752 |
Other intangible assets, net | 19,317 | 20,300 |
Total assets | 84,902 | 84,350 |
Current liabilities: | ||
Notes payable and current portion of long-term debt | 1,590 | 591 |
Trade accounts payable | 1,956 | 2,296 |
Accrued expenses and other liabilities | 4,858 | 5,502 |
Total current liabilities | 8,404 | 8,389 |
Other long-term liabilities | 6,489 | 6,785 |
Long-term debt | 18,285 | 19,086 |
Stockholders’ equity: | ||
Preferred stock | 0 | 1,668 |
Common stock | 9 | 9 |
Additional paid-in capital | 13,939 | 12,072 |
Retained earnings | 41,344 | 39,205 |
Accumulated other comprehensive income (loss) | (3,576) | (2,872) |
Total Danaher stockholders’ equity | 51,716 | 50,082 |
Noncontrolling interests | 8 | 8 |
Total stockholders’ equity | 51,724 | 50,090 |
Total liabilities and stockholders’ equity | $ 84,902 | $ 84,350 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jun. 30, 2023 | |
Allowance for doubtful accounts | $ 126 | $ 130 |
Property, plant and equipment, accumulated depreciation | $ 3,893 | $ 4,120 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 869,300,000 | 879,500,000 |
Common stock, shares outstanding (in shares) | 728,300,000 | 738,200,000 |
Preferred stock | ||
Preferred stock, no par value (in usd per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock | Series B Preferred Stock | ||
Preferred stock, shares issued (in shares) | 1,720,000 | 0 |
Preferred stock, shares outstanding (in shares) | 1,720,000 | 0 |
Preferred stock, dividend rate, percent | 5% |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | ||
Income Statement [Abstract] | |||||
Sales | $ 7,157 | $ 7,751 | $ 14,324 | $ 15,439 | |
Cost of sales | (3,116) | (3,030) | (5,913) | (6,013) | |
Gross profit | 4,041 | 4,721 | 8,411 | 9,426 | |
Operating costs: | |||||
Selling, general and administrative expenses | (2,194) | (2,085) | (4,341) | (4,177) | |
Research and development expenses | (418) | (431) | (847) | (872) | |
Operating profit | 1,429 | 2,205 | 3,223 | 4,377 | |
Nonoperating income (expense): | |||||
Other income (expense), net | (29) | (87) | (5) | (107) | |
Interest expense | (67) | (51) | (135) | (105) | |
Interest income | 59 | 2 | 107 | 3 | |
Earnings before income taxes | 1,392 | 2,069 | 3,190 | 4,168 | |
Income taxes | (286) | (389) | (634) | (763) | |
Net earnings | 1,106 | 1,680 | 2,556 | 3,405 | |
Mandatory convertible preferred stock dividends | 0 | (22) | (21) | (63) | |
Net earnings attributable to common stockholders | $ 1,106 | $ 1,658 | $ 2,535 | $ 3,342 | |
Net earnings per common share: | |||||
Basic (in usd per share) | $ 1.50 | $ 2.28 | $ 3.46 | $ 4.63 | |
Diluted (in usd per share) | $ 1.49 | $ 2.25 | $ 3.42 | [1] | $ 4.56 |
Average common stock and common equivalent shares outstanding: | |||||
Basic (in shares) | 737.3 | 726.7 | 733.4 | 721.5 | |
Diluted (in shares) | 744.7 | 736 | 740.2 | 736.8 | |
[1]Net earnings per common share amounts for the relevant three-month periods do not add to the six-month period amount due to rounding. |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 1,106 | $ 1,680 | $ 2,556 | $ 3,405 |
Other comprehensive income (loss), net of income taxes: | ||||
Foreign currency translation adjustments | (704) | (1,442) | (679) | (1,785) |
Pension and postretirement plan benefit adjustments | 0 | 7 | 0 | 21 |
Cash flow hedge adjustments | (106) | 66 | (25) | 46 |
Total other comprehensive income (loss), net of income taxes | (810) | (1,369) | (704) | (1,718) |
Comprehensive income | $ 296 | $ 311 | $ 1,852 | $ 1,687 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Preferred stock | Common stock | Additional paid-in capital | Additional paid-in capital Preferred stock | Retained earnings | Accumulated other comprehensive income (loss) | Noncontrolling interests |
Balance, beginning of period at Dec. 31, 2021 | $ 3,268 | $ 9 | $ 10,090 | $ 32,827 | $ (1,027) | $ 10 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Conversion of Mandatory Convertible Preferred Stock to Common Stock and Common stock issued in connection with Mandatory Convertible Preferred Stock conversions | (1,600) | $ 1,600 | ||||||
Common stock-based award | 178 | |||||||
Acquisition of noncontrolling interests | (14) | |||||||
Net earnings | $ 3,405 | 3,405 | ||||||
Common stock dividends declared | (361) | |||||||
Mandatory Convertible Preferred Stock dividends declared | (63) | |||||||
Other comprehensive income (loss) | (1,718) | (1,718) | ||||||
Change in noncontrolling interests | (3) | |||||||
Balance, end of period at Jul. 01, 2022 | 46,601 | 1,668 | 9 | 11,854 | 35,808 | (2,745) | 7 | |
Balance, beginning of period at Apr. 01, 2022 | 3,268 | 9 | 10,123 | 34,332 | (1,376) | 6 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Conversion of Mandatory Convertible Preferred Stock to Common Stock and Common stock issued in connection with Mandatory Convertible Preferred Stock conversions | (1,600) | 1,600 | ||||||
Common stock-based award | 130 | |||||||
Acquisition of noncontrolling interests | 1 | |||||||
Net earnings | 1,680 | 1,680 | ||||||
Common stock dividends declared | (182) | |||||||
Mandatory Convertible Preferred Stock dividends declared | (22) | |||||||
Other comprehensive income (loss) | (1,369) | (1,369) | ||||||
Change in noncontrolling interests | 1 | |||||||
Balance, end of period at Jul. 01, 2022 | 46,601 | 1,668 | 9 | 11,854 | 35,808 | (2,745) | 7 | |
Balance, beginning of period at Dec. 31, 2022 | 50,090 | 1,668 | 9 | 12,072 | 39,205 | (2,872) | 8 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Conversion of Mandatory Convertible Preferred Stock to Common Stock and Common stock issued in connection with Mandatory Convertible Preferred Stock conversions | (1,668) | 1,668 | ||||||
Common stock-based award | 199 | |||||||
Acquisition of noncontrolling interests | 0 | |||||||
Net earnings | 2,556 | 2,556 | ||||||
Common stock dividends declared | (396) | |||||||
Mandatory Convertible Preferred Stock dividends declared | (21) | |||||||
Other comprehensive income (loss) | (704) | (704) | ||||||
Change in noncontrolling interests | 0 | |||||||
Balance, end of period at Jun. 30, 2023 | 51,724 | 0 | 9 | 13,939 | 41,344 | (3,576) | 8 | |
Balance, beginning of period at Mar. 31, 2023 | 1,668 | 9 | 12,130 | 40,437 | (2,766) | 8 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Conversion of Mandatory Convertible Preferred Stock to Common Stock and Common stock issued in connection with Mandatory Convertible Preferred Stock conversions | (1,668) | $ 1,668 | ||||||
Common stock-based award | 141 | |||||||
Acquisition of noncontrolling interests | 0 | |||||||
Net earnings | 1,106 | 1,106 | ||||||
Common stock dividends declared | (199) | |||||||
Mandatory Convertible Preferred Stock dividends declared | 0 | |||||||
Other comprehensive income (loss) | (810) | (810) | ||||||
Change in noncontrolling interests | 0 | |||||||
Balance, end of period at Jun. 30, 2023 | $ 51,724 | $ 0 | $ 9 | $ 13,939 | $ 41,344 | $ (3,576) | $ 8 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jul. 01, 2022 | |
Cash flows from operating activities: | ||
Net earnings | $ 2,556 | $ 3,405 |
Noncash items: | ||
Depreciation | 351 | 358 |
Amortization of intangible assets | 768 | 759 |
Stock-based compensation expense | 188 | 181 |
Investment (gains) losses | 10 | 122 |
Change in trade accounts receivable, net | 765 | (145) |
Change in inventories | (128) | (668) |
Change in trade accounts payable | (363) | (11) |
Change in prepaid expenses and other assets | 396 | (99) |
Change in accrued expenses and other liabilities | (670) | 66 |
Net cash provided by operating activities | 3,873 | 3,968 |
Cash flows from investing activities: | ||
Cash paid for acquisitions | 0 | (77) |
Payments for additions to property, plant and equipment | (616) | (546) |
Proceeds from sales of property, plant and equipment | 4 | 9 |
Payments for purchases of investments | (144) | (328) |
Proceeds from sales of investments | 4 | 17 |
All other investing activities | 17 | 22 |
Total cash used in investing activities | (735) | (903) |
Cash flows from financing activities: | ||
Payments for the issuance of common stock in connection with stock-based compensation, net | (4) | (23) |
Payment of dividends | (422) | (411) |
Net repayments of borrowings (maturities of 90 days or less) | (7) | (669) |
Net repayments of borrowings (maturities longer than 90 days) | 0 | (265) |
All other financing activities | (37) | (66) |
Total cash used in financing activities | (470) | (1,434) |
Effect of exchange rate changes on cash and equivalents | (88) | (233) |
Net change in cash and equivalents | 2,580 | 1,398 |
Beginning balance of cash and equivalents | 5,995 | 2,586 |
Ending balance of cash and equivalents | 8,575 | 3,984 |
Supplemental disclosures: | ||
Cash interest payments | 185 | 167 |
Cash income tax payments | $ 694 | $ 625 |
General
General | 6 Months Ended |
Jun. 30, 2023 | |
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, 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, 2022 and the Notes thereto included in the Company’s 2022 Annual Report on Form 10-K filed on February 22, 2023 (the “2022 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, 2023 and December 31, 2022, its results of operations for the three and six-month periods ended June 30, 2023 and July 1, 2022 and its cash flows for each of the six-month periods then ended. There have been no changes to the Company’s significant accounting policies described in the Company’s 2022 Annual Report that have a material impact on the Company’s Consolidated Condensed Financial Statements and the related Notes. Reclassifications of certain prior year amounts have been made to conform to the current year presentation. Operating Leases —As of June 30, 2023 and December 31, 2022, operating lease right-of-use assets where the Company was the lessee were approximately $1.0 billion and are included within other long-term assets in the accompanying Consolidated Condensed Balance Sheets. The associated operating lease liabilities were approximately $1.1 billion as of June 30, 2023 and December 31, 2022 and are included in accrued expenses and other liabilities and other long-term liabilities. |
Veralto Corporation Separation
Veralto Corporation Separation | 6 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Veralto Corporation Separation | VERALTO CORPORATION SEPARATION In September 2022, the Company announced its intention to separate its Environmental & Applied Solutions business into a publicly traded company, to be known as Veralto Corporation. The Environmental & Applied Solutions business had sales for the year ended December 31, 2022 of approximately $4.8 billion. The transaction is expected to be tax-free to the Company’s shareholders. The Company is targeting to complete the planned separation of the Environmental & Applied Solutions business in the fourth quarter of 2023, subject to the satisfaction of certain conditions, including obtaining final approval from the Danaher Board of Directors, satisfactory completion of financing, receipt of tax opinions, receipt of favorable rulings from the Internal Revenue Service (“IRS”) and receipt of other regulatory approvals. Until the completion of the planned separation, the Environmental & Applied Solutions business will be reported as continuing operations. The Company incurred separation costs of $37 million ($34 million after-tax) and $65 million ($59 million after-tax) related to preparation for the anticipated separation of the Company’s Environmental & Applied Solutions business primarily related to professional fees for legal, tax, finance and information technology services and duplicative general and administrative costs in the three and six-month periods ended June 30, 2023, respectively. |
Net Earnings Per Common Share
Net Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Common Share | NET EARNINGS PER COMMON SHAREBasic net earnings per common share (“EPS”) is calculated by taking net earnings less the Mandatory Convertible Preferred Stock (“MCPS”) dividends divided by the weighted average number of common shares outstanding for the applicable period. Diluted net EPS is computed by taking net earnings less the MCPS dividends divided by 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-month periods ended June 30, 2023 and July 1, 2022, approximately 4.7 million and 2.4 million options, respectively, and for the six-month periods ended June 30, 2023 and July 1, 2022, approximately 3.5 million and 2.4 million options, respectively, to purchase shares were excluded from the diluted EPS calculation, as the impact of their inclusion would have been anti-dilutive. Basic and diluted EPS are computed independently for each quarter and year-to-date period, and each period involves the use of different weighted-average share count figures. As a result, and after factoring the effect of rounding to the nearest cent per share, the sum of prior quarterly EPS figures may not equal year-to-date EPS. The impact of the MCPS Series B calculated under the if-converted method was dilutive for the three-month period ended June 30, 2023, and as such 1.5 million shares underlying the MCPS Series B were included in the calculation of diluted EPS in the three-month period. The impact of the MCPS Series B calculated under the if-converted method was anti-dilutive for the six-month period ended June 30, 2023 and the three and six-month periods ended July 1, 2022, and as such 5.1 million shares for the six-month period ended June 30, 2023 and 8.6 million for both the three and six-month periods ended July 1, 2022 underlying the MCPS Series B were excluded from the calculation of diluted EPS and the related MCPS Series B dividends of $21 million for the six-month period ended June 30, 2023 and $22 million and $43 million for the three and six-month periods ended July 1, 2022, respectively, were included in the calculation of net earnings for diluted EPS. There were no MCPS Series B dividends declared in the second quarter of 2023 prior to their conversion. As of April 17, 2023, all outstanding shares of the MCPS Series B converted into 8.6 million shares of the Company’s common stock. The impact of the MCPS Series A calculated under the if-converted method was dilutive for both the three and six-month periods ended July 1, 2022, and as such 1.1 million and 6.0 million shares, respectively, underlying the MCPS Series A were included in the calculation of diluted EPS. The related MCPS Series A dividends of $20 million for the six-month period ended July 1, 2022 were excluded from the calculation of net earnings for diluted EPS. On April 15, 2022, all outstanding shares of the MCPS Series A converted into 11.0 million shares of the Company’s common stock. Refer to Note 14 for additional information about the MCPS Series A and B conversions. Information related to the calculation of net earnings per common share is summarized as follows ($ and shares in millions, except per share amounts): Three-Month Period Ended Six-Month Period Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Numerator: Net earnings $ 1,106 $ 1,680 $ 2,556 $ 3,405 MCPS dividends — (22) (21) (63) Net earnings attributable to common stockholders for Basic EPS 1,106 1,658 2,535 3,342 Adjustment for MCPS dividends for dilutive MCPS — — — 20 Net earnings attributable to common stockholders after assumed conversions for Diluted EPS $ 1,106 $ 1,658 $ 2,535 $ 3,362 Denominator: Weighted average common shares outstanding used in Basic EPS 737.3 726.7 733.4 721.5 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive restricted stock units (“RSUs”) and performance stock units (“PSUs”) 5.9 8.2 6.8 9.3 Weighted average MCPS converted shares 1.5 1.1 — 6.0 Weighted average common shares outstanding used in Diluted EPS 744.7 736.0 740.2 736.8 Basic EPS $ 1.50 $ 2.28 $ 3.46 $ 4.63 Diluted EPS $ 1.49 $ 2.25 $ 3.42 $ 4.56 |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The following tables present the Company’s revenues disaggregated by geographical region and revenue type for the three and six-month periods ended June 30, 2023 and July 1, 2022 ($ in millions) . Sales taxes and other usage-based taxes collected from customers are excluded from revenue. Biotechnology Life Sciences Diagnostics Environmental & Applied Solutions Total For the Three-Month Period Ended June 30, 2023: Geographical region: North America (a) $ 611 $ 757 $ 982 $ 577 $ 2,927 Western Europe 684 375 365 284 1,708 Other developed markets (b) 72 124 100 31 327 High-growth markets (c) 518 540 784 353 2,195 Total $ 1,885 $ 1,796 $ 2,231 $ 1,245 $ 7,157 Revenue type: Recurring $ 1,534 $ 1,104 $ 1,958 $ 742 $ 5,338 Nonrecurring 351 692 273 503 1,819 Total $ 1,885 $ 1,796 $ 2,231 $ 1,245 $ 7,157 For the Three-Month Period Ended July 1, 2022: Geographical region: North America (a) $ 798 $ 778 $ 1,235 $ 571 $ 3,382 Western Europe 632 340 453 266 1,691 Other developed markets (b) 88 111 115 32 346 High-growth markets (c) 748 472 758 354 2,332 Total $ 2,266 $ 1,701 $ 2,561 $ 1,223 $ 7,751 Revenue type: Recurring $ 1,804 $ 1,068 $ 2,301 $ 719 $ 5,892 Nonrecurring 462 633 260 504 1,859 Total $ 2,266 $ 1,701 $ 2,561 $ 1,223 $ 7,751 Biotechnology Life Sciences Diagnostics Environmental & Applied Solutions Total For the Six-Month Period Ended June 30, 2023: Geographical region: North America (a) $ 1,229 $ 1,465 $ 2,106 $ 1,149 $ 5,949 Western Europe 1,331 739 785 561 3,416 Other developed markets (b) 151 252 217 60 680 High-growth markets (c) 1,038 1,049 1,499 693 4,279 Total $ 3,749 $ 3,505 $ 4,607 $ 2,463 $ 14,324 Revenue type: Recurring $ 3,045 $ 2,143 $ 4,070 $ 1,466 $ 10,724 Nonrecurring 704 1,362 537 997 3,600 Total $ 3,749 $ 3,505 $ 4,607 $ 2,463 $ 14,324 For the Six-Month Period Ended July 1, 2022: Geographical region: North America (a) $ 1,580 $ 1,516 $ 2,541 $ 1,099 $ 6,736 Western Europe 1,339 668 977 535 3,519 Other developed markets (b) 173 248 239 64 724 High-growth markets (c) 1,390 935 1,448 687 4,460 Total $ 4,482 $ 3,367 $ 5,205 $ 2,385 $ 15,439 Revenue type: Recurring $ 3,605 $ 2,105 $ 4,671 $ 1,409 $ 11,790 Nonrecurring 877 1,262 534 976 3,649 Total $ 4,482 $ 3,367 $ 5,205 $ 2,385 $ 15,439 (a) The Company defines North America as the United States and Canada. (b ) The Company defines other developed markets as Japan, Australia and New Zealand. (c) The Company defines high-growth markets as developing markets of the world experiencing extended periods of accelerated growth in gross domestic product and infrastructure which include Eastern Europe, the Middle East, Africa, Latin America (including Mexico) and Asia (with the exception of Japan, Australia and New Zealand). The Company defines developed markets as all markets of the world that are not high-growth markets. The Company sells equipment to customers as well as consumables and services, some of which customers purchase on a recurring basis. Consumables sold for use with the equipment sold by the Company are typically critical to the use of the equipment and are typically used on a one-time or limited basis, requiring frequent replacement in the customer’s operating cycle. Examples of these consumables include reagents used in diagnostic tests, chromatography resins used for research and bioprocessing, filters used in filtration, separation and purification processes and cartridges for marking and coding equipment. Additionally, some of the Company’s consumables are used on a standalone basis, such as water treatment solutions, custom nucleic acids and genomics solutions. The Company separates its goods and services between those typically sold to a customer on a recurring basis and those typically sold to a customer on a nonrecurring basis. Recurring revenue includes revenue from consumables, services and operating-type leases (“OTLs”). Nonrecurring revenue includes sales of equipment and sales-type leases (“STLs”). OTLs and STLs are included in the above revenue amounts. For the three-month periods ended June 30, 2023 and July 1, 2022, lease revenue was $118 million and $117 million, respectively. For the six-month periods ended June 30, 2023 and July 1, 2022, lease revenue was $238 million and $241 million, respectively. Remaining performance obligations related to Topic 606, Revenue from Contracts with Customers, represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year which are fully or partially unsatisfied at the end of the period. As of June 30, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $4.8 billion. The Company expects to recognize revenue on approximately 55% of the remaining performance obligations over the next 12 months, 26% over the subsequent 12 months, and the remainder recognized thereafter. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (“contract assets”) and deferred revenue, customer deposits and billings in excess of revenue recognized (“contract liabilities”) on the Consolidated Condensed Balance Sheets. Most of the Company’s long-term contracts are billed as work progresses in accordance with the contract terms and conditions, either at periodic intervals or upon achievement of certain milestones. Often this results in billing occurring subsequent to revenue recognition resulting in contract assets. Contract assets are generally classified as other current assets in the Consolidated Condensed Balance Sheets. The balance of contract assets as of June 30, 2023 and December 31, 2022 was $74 million and $90 million, respectively. The Company often receives cash payments from customers in advance of the Company’s performance resulting in contract liabilities that are classified as either current or long-term in the Consolidated Condensed Balance Sheets based on the timing of when the Company expects to recognize revenue. As of June 30, 2023 and December 31, 2022, contract liabilities were approximately $2.0 billion and $1.9 billion, respectively, and are included within accrued expenses and other liabilities and other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets. The increase in the contract liability balance during the six-month period ended June 30, 2023 was primarily a result of cash payments received in advance of satisfying performance obligations, partially offset by revenue recognized during the period that was included in the opening contract liability balance. Revenue recognized during the six-month periods ended June 30, 2023 and July 1, 2022 that was included in the contract liability balance on December 31, 2022 and December 31, 2021 was approximately $1.0 billion and $995 million, respectively. Contract assets and liabilities are reported on a net basis on the accompanying Consolidated Condensed Balance Sheets on a contract-by-contract basis at the end of each reporting period. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATIONThe Company operates and reports its results in four separate business segments consisting of the Biotechnology, Life Sciences, Diagnostics, and Environmental & Applied Solutions segments. When determining the reportable segments, the Company aggregated operating segments based on their similar economic and operating characteristics. Operating profit represents total revenues less operating expenses, excluding nonoperating income and expense, interest and income taxes. Operating profit amounts in the Other segment consist of unallocated corporate costs, including separation costs related to preparation for the anticipated separation of the Company’s Environmental & Applied Solutions business, and other costs not considered part of management’s evaluation of reportable segment operating performance. Intersegment amounts are not significant and are eliminated to arrive at consolidated totals. Segment results are shown below ($ in millions): Three-Month Period Ended Six-Month Period Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Sales: Biotechnology $ 1,885 $ 2,266 $ 3,749 $ 4,482 Life Sciences 1,796 1,701 3,505 3,367 Diagnostics 2,231 2,561 4,607 5,205 Environmental & Applied Solutions 1,245 1,223 2,463 2,385 Total $ 7,157 $ 7,751 $ 14,324 $ 15,439 Operating profit: Biotechnology $ 480 $ 824 $ 1,076 $ 1,624 Life Sciences 340 350 661 668 Diagnostics 424 800 1,101 1,686 Environmental & Applied Solutions 302 307 601 543 Other (117) (76) (216) (144) Total $ 1,429 $ 2,205 $ 3,223 $ 4,377 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The following table summarizes the Company’s effective tax rate: Three-Month Period Ended Six-Month Period Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Effective tax rate 20.5 % 18.8 % 19.9 % 18.3 % The Company operates globally, including in certain jurisdictions with lower tax rates than the United States (“U.S.”) federal statutory rate. Therefore, the impact of operating in such jurisdictions contributes to a lower effective tax rate compared to the U.S. federal statutory tax rate. The effective tax rate for the three-month period ended June 30, 2023 differs from the U.S. federal statutory rate of 21.0% principally due to the geographic mix of earnings described above, partially offset by net discrete tax charges of $18 million. Net discrete tax charges related primarily to tax costs related to the planned separation of the Environmental & Applied Solutions business, tax costs related to legal and operational actions taken to realign certain businesses and changes in estimates associated with prior period uncertain tax positions, partially offset by interest on prior year tax refunds. The net discrete charges increased the effective tax rate by 1.3% for the three-month period ended June 30, 2023. The effective tax rate for the six-month period ended June 30, 2023 differs from the U.S. federal statutory rate of 21.0% principally due to the geographic mix of earnings described above, partially offset by net discrete tax charges of $13 million. Net discrete tax charges related primarily to tax costs related to the planned separation of the Environmental & Applied Solutions business, tax costs related to legal and operational actions taken to realign certain businesses and changes in estimates associated with prior period uncertain tax positions, partially offset by excess tax benefits from stock-based compensation and interest on prior year tax refunds. The net discrete charges increased the effective tax rate by 0.4% for the six-month period ended June 30, 2023. The effective tax rate for the three-month period ended July 1, 2022 differs from the U.S. federal statutory rate of 21.0% principally due to the geographic mix of earnings described above and net discrete benefits of $8 million related primarily to changes in estimates associated with prior period uncertain tax positions and excess tax benefits from stock-based compensation. The net discrete benefits reduced the effective tax rate by 0.4% for the three-month period ended July 1, 2022. The effective tax rate for the six-month period ended July 1, 2022 differs from the U.S. federal statutory rate of 21.0% principally due the geographic mix of earnings described above and net discrete benefits of $49 million related primarily to excess tax benefits from stock-based compensation and changes in estimates associated with prior period uncertain tax positions. The net discrete benefits reduced the effective tax rate by 1.2% for the six-month period ended July 1, 2022. In the fourth quarter of 2022, the IRS proposed significant adjustments to the Company’s taxable income for the years 2016 through 2018 with respect to the deferral of tax on certain premium income related to the Company’s self-insurance programs. For income tax purposes, the recognition of premium income has been deferred in accordance with U.S. tax laws related to insurance. The IRS challenged the deferral of premium income for certain types of the Company’s self-insurance policies. The proposed adjustments would have increased the Company’s taxable income over the 2016 through 2018 periods by approximately $2.5 billion. In the first quarter of 2023, the Company settled these proposed adjustments with the IRS, although the audit is still open with respect to other matters for the 2016 through 2018 period. The impact of the settlement with respect to the Company’s self-insurance policies was not material to the Company’s financial statements, including cash flows and the effective tax rate. As the settlement with the IRS was specific to the audit period, the settlement does not preclude the IRS from proposing similar adjustments to the Company’s self-insurance programs with respect to periods subsequent to 2018. Management believes the positions the Company has taken in its U.S. tax returns are in accordance with the relevant tax laws. For a description of the Company’s significant tax matters, reference is made to the financial statements as of and for the year ended December 31, 2022 and Note 7 thereto included in the Company’s 2022 Annual Report. |
Other Income (Expense), Net
Other Income (Expense), Net | 6 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | OTHER INCOME (EXPENSE), NET The following sets forth the components of the Company’s other income (expense), net ($ in millions): Three-Month Period Ended Six-Month Period Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Other components of net periodic benefit costs $ 3 $ 11 $ 5 $ 15 Investment gains (losses): Realized investment gains (losses) — 27 — 64 Unrealized investment gains (losses) (32) (125) (10) (186) Total investment gains (losses) (32) (98) (10) (122) Total other income (expense), net $ (29) $ (87) $ (5) $ (107) Other Components of Net Periodic Benefit Costs The Company disaggregates the service cost component of net periodic benefit costs of noncontributory defined benefit pension plans and other postretirement employee benefit plans and presents the other components of net periodic benefit costs in other income (expense), net. These other components of net periodic benefit costs include the assumed rate of return on plan assets, partially offset by amortization of actuarial losses and interest. The Company’s net periodic benefit costs for the six-month period ended July 1, 2022 included a settlement loss of $10 million ($9 million after-tax) as a result of the transfer of a portion of its non-U.S. pension liabilities related to one defined benefit plan to a third-party. Investment Gains (Losses) |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS The following is a rollforward of the Company’s goodwill ($ in millions): Balance, December 31, 2022 $ 39,752 Adjustments due to finalization of purchase price allocations (5) Foreign currency translation and other (171) Balance, June 30, 2023 $ 39,576 The carrying value of goodwill by segment is summarized as follows ($ in millions): June 30, 2023 December 31, 2022 Biotechnology $ 21,920 $ 22,087 Life Sciences 8,279 8,314 Diagnostics 6,871 6,875 Environmental & Applied Solutions 2,506 2,476 Total $ 39,576 $ 39,752 The Company has not identified any “triggering” events which indicate an impairment of goodwill in the first half of 2023. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
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 that are measured at fair value on a recurring basis were as follows ($ in millions): Balance Quoted Prices in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 Assets: Available-for-sale debt securities $ 7 $ 11 $ — $ — $ 7 $ 11 $ — $ — Investment in equity securities 438 315 142 16 — — — — Cross-currency swap derivative contracts 497 653 — — 497 653 — — Available-for-sale debt securities, which are included in other long-term assets in the accompanying Consolidated Condensed Balance Sheets, are measured at fair value using 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. As of June 30, 2023 and December 31, 2022, available-for-sale debt securities primarily included U.S. Treasury Notes and corporate debt securities. The Company’s investments in equity securities consist of investments in publicly traded equity securities and investments in non-marketable equity securities. The publicly traded securities are classified as Level 1 in the fair value hierarchy as they are measured based on quotes in active markets. For the non-marketable equity securities, the Company estimates the fair value of the investments in equity securities based on the measurement alternative and adjusts for impairments and observable price changes with a same or similar security from the same issuer within net earnings (the “Fair Value Alternative”). The Company’s investments in these equity securities are not classified in the fair value hierarchy due to the use of these measurement methods. Additionally, the Company is a limited partner in partnerships that invest primarily in early-stage companies. While the partnerships record these investments at fair value, the Company’s investments in the partnerships are accounted for under the equity method of accounting and are not subject to fair value measurement disclosures noted above. As of June 30, 2023 and December 31, 2022, the Company’s equity method investments included investments in partnerships with a carrying value of approximately $1.6 billion and $1.5 billion, respectively. Refer to Note 7 for additional information on gains and losses on the Company’s investments including investments in the partnerships. The cross-currency swap derivative contracts are used to partially hedge the Company’s net investments in non-U.S. operations against adverse movements in exchange rates between the U.S. dollar and the Danish kroner, Japanese yen, euro and Swiss franc. The Company also uses cross-currency swap derivative contracts to hedge the exchange rate exposure from long-term debt issuances in a foreign currency other than the functional currency of the borrower. The cross-currency swap derivative contracts are classified as Level 2 in the fair value hierarchy as they are measured using the income approach with the relevant interest rates and current foreign currency exchange rates and forward curves as inputs. Refer to Note 11 for additional information. Fair Value of Other Financial Instruments The carrying amounts and fair values of the Company’s other financial instruments were as follows ($ in millions): June 30, 2023 December 31, 2022 Carrying Amount Fair Value Carrying Amount Fair Value Debt obligations: Notes payable and current portion of long-term debt $ 1,590 $ 1,571 $ 591 $ 584 Long-term debt 18,285 15,520 19,086 16,079 As of June 30, 2023 and December 31, 2022, 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 is attributable to changes in market interest rates and/or the Company’s credit ratings subsequent to the incurrence of the borrowing. 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 generally approximate their carrying amounts due to the short-term maturities of these instruments. |
Financing
Financing | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Financing | FINANCING As of June 30, 2023, the Company was in compliance with all of its debt covenants. The components of the Company’s debt were as follows ($ in millions): Outstanding Amount Description and Aggregate Principal Amount June 30, 2023 December 31, 2022 Euro-denominated commercial paper (€1.9 billion) (e) $ 2,045 $ 2,013 0.5% senior unsecured bonds due 12/08/2023 (CHF 540 million) (the “2023 CHF Bonds”) (c) 603 584 1.7% senior unsecured notes due 3/30/2024 (€900 million) (the “2024 Euronotes”) (f) 981 962 2.2% senior unsecured notes due 11/15/2024 ($700 million) (the “2024 Biopharma Notes”) (b) 699 698 3.35% senior unsecured notes due 9/15/2025 ($500 million) (the “2025 U.S. Notes”) (f) 499 499 0.2% senior unsecured notes due 3/18/2026 (€1.3 billion) (the “2026 Biopharma Euronotes”) (b) 1,360 1,333 2.1% senior unsecured notes due 9/30/2026 (€800 million) (the “2026 Euronotes”) (f) 871 854 0.3% senior unsecured notes due 5/11/2027 (¥30.8 billion) (the “2027 Yen Notes”) (d) 213 234 1.2% senior unsecured notes due 6/30/2027 (€600 million) (the “2027 Euronotes”) (a) 652 639 0.45% senior unsecured notes due 3/18/2028 (€1.3 billion) (the “2028 Biopharma Euronotes”) (b) 1,357 1,331 1.125% senior unsecured bonds due 12/08/2028 (CHF 210 million) (the “2028 CHF Bonds”) (c) 237 230 2.6% senior unsecured notes due 11/15/2029 ($800 million) (the “2029 Biopharma Notes”) (b) 796 796 2.5% senior unsecured notes due 3/30/2030 (€800 million) (the “2030 Euronotes”) (f) 873 856 0.75% senior unsecured notes due 9/18/2031 (€1.8 billion) (the “2031 Biopharma Euronotes”) (b) 1,900 1,863 0.65% senior unsecured notes due 5/11/2032 (¥53.2 billion) (the “2032 Yen Notes”) (d) 367 404 1.35% senior unsecured notes due 9/18/2039 (€1.3 billion) (the “2039 Biopharma Euronotes”) (b) 1,349 1,323 3.25% senior unsecured notes due 11/15/2039 ($900 million) (the “2039 Biopharma Notes”) (b) 891 890 4.375% senior unsecured notes due 9/15/2045 ($500 million) (the “2045 U.S. Notes”) (f) 499 499 1.8% senior unsecured notes due 9/18/2049 (€750 million) (the “2049 Biopharma Euronotes”) (b) 809 794 3.4% senior unsecured notes due 11/15/2049 ($900 million) (the “2049 Biopharma Notes”) (b) 890 889 2.6% senior unsecured notes due 10/01/2050 ($1.0 billion) (the “2050 U.S. Notes”) (f) 981 981 2.8% senior unsecured notes due 12/10/2051 ($1.0 billion) (the “2051 U.S. Notes”) (f) 984 984 Other 19 21 Total debt 19,875 19,677 Less: currently payable (1,590) (591) Long-term debt $ 18,285 $ 19,086 (a) Issued by DH Europe Finance S.A. (“Danaher International”). (b) Issued by DH Europe Finance II S.a.r.l. (“Danaher International II”). (c) Issued by DH Switzerland Finance S.A. (“Danaher Switzerland”). (d) Issued by DH Japan Finance S.A. (“Danaher Japan”). (e) Issued by Danaher Corporation or Danaher International II. (f) Issued by Danaher Corporation. Debt discounts, premiums and debt issuance costs totaled $111 million and $118 million as of June 30, 2023 and December 31, 2022, respectively, and have been netted against the aggregate principal amounts of the related debt in the components of debt table above. For additional details regarding the Company’s debt financing, refer to Note 14 of the Company’s financial statements as of and for the year ended December 31, 2022 included in the Company’s 2022 Annual Report. The Company has historically satisfied 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. The Company ’s $5.0 billion u nsecured, multi-year revolving credit facility with a syndicate of banks that expires on August 27, 2024 (the “Five-Year Facility”), is available for direct borrowings and provides credit support for the commercial paper programs. For a description of the Five-Year Facility, refer to the Company’s 2022 Annual Report. As of June 30, 2023, borrowings outstanding under the Company’s euro-denominated commercial paper program had a weighted average annual interest rate of 3.6% and a weighted average remaining maturity of approximately 47 days. Guarantors of Debt The Company has guaranteed long-term debt and commercial paper issued by certain of its wholly-owned finance subsidiaries: Danaher International, Danaher International II, Danaher Switzerland and Danaher Japan. All of the outstanding and future securities issued by each of these entities are or will be fully and unconditionally guaranteed by the Company and these guarantees rank on parity with the Company’s unsecured and unsubordinated indebtedness . |
Hedging Transactions and Deriva
Hedging Transactions and Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Transactions and Derivative Financial Instruments | HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS The Company uses cross-currency swap derivative contracts to partially hedge its net investments in non-U.S. operations against adverse movements in exchange rates between the U.S. dollar and the Danish kroner, Japanese yen, euro and Swiss franc. The cross-currency swap derivative contracts are agreements to exchange fixed-rate payments in one currency for fixed-rate payments in another currency. These contracts effectively convert U.S. dollar-denominated bonds to obligations denominated in Danish kroner, Japanese yen, euro and Swiss franc, and partially offset the impact of changes in currency rates on the Company’s foreign currency denominated net investments. These contracts also reduce the interest rate from the stated interest rates on the U.S. dollar-denominated debt to the interest rates of the swaps. The changes in the spot rate of these instruments are recorded in accumulated other comprehensive income (loss) in stockholders’ equity, partially offsetting the foreign currency translation adjustment of the Company’s related net investment that is also recorded in accumulated other comprehensive income (loss). The interest income or expense from these swaps are recorded in interest expense in the accompanying Consolidated Condensed Statements of Earnings consistent with the classification of interest expense attributable to the underlying debt. These instruments mature on dates ranging from September 2025 to November 2032. The Company also uses cross-currency swap derivative contracts to hedge U.S. dollar-denominated long-term debt issuances in a foreign subsidiary whose functional currency is the euro against adverse movements in exchange rates between the U.S. dollar and the euro. These contracts effectively convert these U.S. dollar-denominated bonds to obligations denominated in euro. The changes in the fair value of these instruments are recorded in accumulated other comprehensive income (loss), with a reclassification from accumulated other comprehensive income (loss) to net earnings to offset the remeasurement of the hedged debt that is also recorded in net earnings. The interest income or expense from these swaps are recorded in interest expense in the accompanying Consolidated Condensed Statements of Earnings consistent with the classification of interest expense attributable to the underlying debt. These instruments mature on dates ranging from November 2024 to November 2049. The Company has also issued foreign currency denominated long-term debt as partial hedges of its net investments in foreign operations against adverse movements in exchange rates between the U.S. dollar and the euro, Japanese yen and Swiss franc. These foreign currency denominated long-term debt issuances are designated and qualify as nonderivative hedging instruments. Accordingly, the foreign currency translation of these debt instruments is recorded in accumulated other comprehensive income (loss), offsetting the foreign currency translation adjustment of the Company’s related net investment that is also recorded in accumulated other comprehensive income (loss). These instruments mature on dates ranging from July 2023 to May 2032. The Company used interest rate swap agreements to hedge the variability in cash flows due to changes in benchmark interest rates related to a portion of the U.S. debt the Company issued to fund the acquisition of Cytiva and a portion of the 2051 U.S. Notes. These contracts effectively fixed the interest rate for a portion of the Company’s U.S. dollar-denominated debt equal to the notional amount of the swaps to the rate specified in the interest rate swap agreements and were settled in November 2019 and December 2021, respectively. The changes in the fair value of these instruments were recorded in accumulated other comprehensive income (loss) prior to the issuance of the debt and are subsequently being reclassified to interest expense over the life of the related debt. The following table summarizes the notional values as of June 30, 2023 and July 1, 2022 and pretax impact of changes in the fair values of instruments designated as net investment hedges and cash flow hedges in accumulated other comprehensive income (“OCI”) for the three and six-month periods ended June 30, 2023 and July 1, 2022 ($ in millions): Original Notional Amount Notional Amount Outstanding Gain (Loss) Recognized in OCI Amounts Reclassified from OCI For the Three-Month Period Ended June 30, 2023: Net investment hedges: Cross-currency contracts $ 3,875 $ 3,000 $ (58) $ — Foreign currency denominated debt 5,828 5,828 6 — Cash flow hedges: Cross-currency contracts 4,000 3,300 (127) 20 Interest rate swaps 1,600 — — 1 Total $ 15,303 $ 12,128 $ (179) $ 21 For the Three-Month Period Ended July 1, 2022: Net investment hedges: Cross-currency contracts $ 3,875 $ 3,000 $ 216 $ — Foreign currency denominated debt 5,870 5,870 271 — Cash flow hedges: Cross-currency contracts 4,000 4,000 381 (224) Interest rate swaps 1,600 — — 1 Total $ 15,345 $ 12,870 $ 868 $ (223) For the Six-Month Period Ended June 30, 2023: Net investment hedges: Cross-currency contracts $ 3,875 $ 3,000 $ (66) $ — Foreign currency denominated debt 5,828 5,828 (51) — Cash flow hedges: Cross-currency contracts 4,000 3,300 (90) 63 Interest rate swaps 1,600 — — 2 Total $ 15,303 $ 12,128 $ (207) $ 65 For the Six-Month Period Ended July 1, 2022 Net investment hedges: Cross-currency contracts $ 3,875 $ 3,000 $ 267 $ — Foreign currency denominated debt 5,870 5,870 395 — Cash flow hedges: Cross-currency contracts 4,000 4,000 506 (340) Interest rate swaps 1,600 — — 2 Total $ 15,345 $ 12,870 $ 1,168 $ (338) Gains or losses related to the net investment hedges are classified as foreign currency translation adjustments in the schedule of changes in OCI in Note 14, as these items are attributable to the Company’s hedges of its net investment in foreign operations. Gains or losses related to the cash flow hedges are classified as cash flow hedge adjustments in the schedule of changes in OCI in Note 14. The amount reclassified from other comprehensive income (loss) for the cross-currency swap derivative contracts that are cash flow hedges of the Company’s U.S. dollar-denominated debt was equal to the remeasurement amount recorded in the three and six-month periods on the hedged debt. The Company did not reclassify any other deferred gains or losses related to net investment hedges or cash flow hedges from accumulated other comprehensive income (loss) to earnings during the three and six-month periods ended June 30, 2023 and July 1, 2022. In addition, the Company did not have any ineffectiveness related to net investment hedges or cash flow hedges during the three and six-month periods ended June 30, 2023 and July 1, 2022, and, should they arise, any ineffective portions of the hedges would be reclassified from accumulated other comprehensive income (loss) into earnings during the period of change. The cash inflows and outflows associated with the Company’s derivative contracts designated as net investment hedges are classified in all other investing activities in the accompanying Consolidated Condensed Statements of Cash Flows. The cash inflows and outflows associated with the Company’s derivative contracts designated as cash flow hedges are classified in cash flows from operating activities in the accompanying Consolidated Condensed Statements of Cash Flows. The Company’s derivative instruments, as well as its nonderivative debt instruments designated and qualifying as net investment hedges, were classified in the Company’s Consolidated Condensed Balance Sheets as follows ($ in millions): June 30, 2023 December 31, 2022 Derivative assets: Other long-term assets $ 497 $ 653 Nonderivative hedging instruments: Notes payable and current portion of long-term debt 1,584 — Long-term debt 4,244 5,777 Amounts related to the Company’s derivatives expected to be reclassified from accumulated other comprehensive income (loss) to net earnings during the next 12 months, if interest rates and foreign exchange rates remain unchanged, are not significant. |
Defined Benefit Plans
Defined Benefit Plans | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Defined Benefit Plans | DEFINED BENEFIT PLANS The following sets forth the components of the Company’s net periodic benefit costs of the noncontributory defined benefit pension plans and other postretirement employee benefit plans ($ in millions): Three-Month Period Ended Six-Month Period Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 U.S. pension benefits: Service cost $ — $ — $ — $ — Interest cost (24) (14) (48) (27) Expected return on plan assets 32 33 63 65 Amortization of actuarial loss (3) (9) (6) (18) Net periodic pension benefit $ 5 $ 10 $ 9 $ 20 Non-U.S. pension benefits: Service cost $ (8) $ (9) $ (16) $ (19) Interest cost (13) (6) (25) (12) Expected return on plan assets 9 8 18 18 Amortization of actuarial gain (loss) 2 (1) 4 (1) Amortization of prior service credit 1 — 1 — Settlement losses recognized — — — (10) Net periodic pension cost $ (9) $ (8) $ (18) $ (24) Other postretirement employee benefit plans: Service cost $ — $ — $ — $ — Interest cost (1) — (3) (1) Amortization of prior service credit — — 1 1 Net periodic benefit cost $ (1) $ — $ (2) $ — The service cost component of net periodic benefit costs is presented in cost of goods sold and selling, general and administrative expenses while the other cost components are presented in other income (expense), net. The Company’s net periodic pension cost for the six-month period ended July 1, 2022 included a settlement loss of $10 million as a result of the transfer of a portion of its non-U.S. pension liabilities related to one defined benefit plan to a third-party. Employer Contributions |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company reviews the adequacy of its legal reserves on a quarterly basis and establishes reserves for loss contingencies that are both probable and reasonably estimable. For a further description of the Company’s litigation and contingencies, refer to Note 18 of the Company’s financial statements as of and for the year ended December 31, 2022 included in the Company’s 2022 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 periods depend on the nature of the product and range from the date of such sale up to twenty years. 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. As of June 30, 2023 and December 31, 2022, the Company had accrued warranty liabilities of $98 million and $95 million, respectively. |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity and Stock-based Compensation | STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION Stockholders’ Equity 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. A s of June 30, 2023 , approximately 20 million shares remained available f or repurchase pursuant to the Repurchase Program. The following table summarizes the Company’s share activity (shares in millions): Three-Month Period Ended Six-Month Period Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Preferred stock - shares issued: Balance, beginning of period 1.7 3.4 1.7 3.4 Conversion of MCPS to common stock (1.7) (1.7) (1.7) (1.7) Balance, end of period — 1.7 — 1.7 Common stock - shares issued: Balance, beginning of period 870.4 857.0 869.3 855.7 Common stock-based compensation awards 0.5 0.4 1.6 1.7 Conversion of MCPS to common stock 8.6 11.0 8.6 11.0 Balance, end of period 879.5 868.4 879.5 868.4 As of April 17, 2023, all outstanding shares of the Company’s 5.00% MCPS Series B converted to common shares at a rate of 5.0175 common shares per share of preferred stock into an aggregate of 8.6 million shares of the Company’s common stock, pursuant to the terms of the Certificate of Designation governing the Series B Preferred Stock. On April 15, 2022, all outstanding shares of the Company’s 4.75% MCPS Series A converted to common shares at a rate of 6.6632 common shares per share of preferred stock into an aggregate of 11.0 million shares of the Company’s common stock, pursuant to the terms of the Certificate of Designation governing the Series A Preferred Stock. For additional information on the MCPS, refer to Note 19 in the Company’s 2022 Annual Report. Stock-Based Compensation For a full description of the Company’s stock-based compensation programs, refer to Note 19 of the Company’s financial statements as of and for the year ended December 31, 2022 included in the Company’s 2022 Annual Report. As of June 30, 2023, approximately 41 million shares of the Com pany’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): Three-Month Period Ended Six-Month Period Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 RSUs/PSUs: Pretax compensation expense $ 60 $ 58 $ 106 $ 104 Income tax benefit (12) (12) (21) (21) RSU/PSU expense, net of income taxes 48 46 85 83 Stock options: Pretax compensation expense 49 43 82 77 Income tax benefit (10) (9) (17) (16) Stock option expense, net of income taxes 39 34 65 61 Total stock-based compensation: Pretax compensation expense 109 101 188 181 Income tax benefit (22) (21) (38) (37) Total stock-based compensation expense, net of income taxes $ 87 $ 80 $ 150 $ 144 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, 2023, $273 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, 2023, $309 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted average period of approximately two years. Future compensation amounts will be adjusted for any changes in estimated forfeitures. Accumulated Other Comprehensive Income Accumulated other comprehensive income (loss) refers to certain gains and losses that under U.S. GAAP are included in comprehensive income (loss) but are excluded from net earnings as these amounts are initially recorded as an adjustment to stockholders’ equity. Foreign currency translation adjustments generally relate to indefinite investments in non-U.S. subsidiaries, as well as the impact from the Company’s hedges of its net investment in foreign operations, including the Company’s cross-currency swap derivatives, net of any income tax impacts. The changes in accumulated other comprehensive income (loss) by component are summarized below ($ in millions). Foreign Currency Translation Adjustments Pension and Postretirement Plan Benefit Adjustments Cash Flow Hedge Adjustments Accumulated Comprehensive Income (Loss) For the Three-Month Period Ended June 30, 2023: Balance, March 31, 2023 $ (2,619) $ (341) $ 194 $ (2,766) Other comprehensive income (loss) before reclassifications: Increase (decrease) (718) — (127) (845) Income tax impact 14 — — 14 Other comprehensive income (loss) before reclassifications, net of income taxes (704) — (127) (831) Reclassification adjustments: Increase (decrease) — — (a) 21 (b) 21 Income tax impact — — — — Reclassification adjustments, net of income taxes — — 21 21 Net other comprehensive income (loss), net of income taxes (704) — (106) (810) Balance, June 30, 2023 $ (3,323) $ (341) $ 88 $ (3,576) For the Three-Month Period Ended July 1, 2022: Balance, April 1, 2022 $ (882) $ (536) $ 42 $ (1,376) Other comprehensive income (loss) before reclassifications: Increase (decrease) (1,390) — 381 (1,009) Income tax impact (52) — (92) (144) Other comprehensive income (loss) before reclassifications, net of income taxes (1,442) — 289 (1,153) Reclassification adjustments: Increase (decrease) — 10 (a) (223) (b) (213) Income tax impact — (3) — (3) Reclassification adjustments, net of income taxes — 7 (223) (216) Net other comprehensive income (loss), net of income taxes (1,442) 7 66 (1,369) Balance, July 1, 2022 $ (2,324) $ (529) $ 108 $ (2,745) Foreign Currency Translation Adjustments Pension and Postretirement Plan Benefit Adjustments Cash Flow Hedge Adjustments Accumulated Comprehensive Income (Loss) For the Six-Month Period Ended June 30, 2023: Balance, December 31, 2022 $ (2,644) $ (341) $ 113 $ (2,872) Other comprehensive income (loss) before reclassifications: Increase (decrease) (695) — (90) (785) Income tax impact 16 — — 16 Other comprehensive income (loss) before reclassifications, net of income taxes (679) — (90) (769) Reclassification adjustments: Increase (decrease) — — (a) 65 (b) 65 Income tax impact — — — — Reclassification adjustments, net of income taxes — — 65 65 Net other comprehensive income (loss), net of income taxes (679) — (25) (704) Balance, June 30, 2023 $ (3,323) $ (341) $ 88 $ (3,576) For the Six-Month Period Ended July 1, 2022: Balance, December 31, 2021 $ (539) $ (550) $ 62 $ (1,027) Other comprehensive income (loss) before reclassifications: Increase (decrease) (1,721) — 506 (1,215) Income tax impact (64) — (122) (186) Other comprehensive income (loss) before reclassifications, net of income taxes (1,785) — 384 (1,401) Reclassification adjustments: Increase (decrease) — 28 (a) (338) (b) (310) Income tax impact — (7) — (7) Reclassification adjustments, net of income taxes — 21 (338) (317) Net other comprehensive income (loss), net of income taxes (1,785) 21 46 (1,718) Balance, July 1, 2022 $ (2,324) $ (529) $ 108 $ (2,745) (a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic benefit cost (refer to Notes 7 and 12 for additional details). (b) Reflects reclassification to earnings related to cash flow hedges of certain long-term debt (refer to Note 11 for additional details). |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Pay vs Performance Disclosure | ||||
Net earnings | $ 1,106 | $ 1,680 | $ 2,556 | $ 3,405 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operating Leases | Operating Leases —As of June 30, 2023 and December 31, 2022, operating lease right-of-use assets where the Company was the lessee were approximately $1.0 billion and are included within other long-term assets in the accompanying Consolidated Condensed Balance Sheets. The associated operating lease liabilities were approximately $1.1 billion as of June 30, 2023 and December 31, 2022 and are included in accrued expenses and other liabilities and other long-term liabilities. |
Net Earnings Per Common Share (
Net Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Information Related to the Calculation of Net Earnings Per Common Share | Information related to the calculation of net earnings per common share is summarized as follows ($ and shares in millions, except per share amounts): Three-Month Period Ended Six-Month Period Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Numerator: Net earnings $ 1,106 $ 1,680 $ 2,556 $ 3,405 MCPS dividends — (22) (21) (63) Net earnings attributable to common stockholders for Basic EPS 1,106 1,658 2,535 3,342 Adjustment for MCPS dividends for dilutive MCPS — — — 20 Net earnings attributable to common stockholders after assumed conversions for Diluted EPS $ 1,106 $ 1,658 $ 2,535 $ 3,362 Denominator: Weighted average common shares outstanding used in Basic EPS 737.3 726.7 733.4 721.5 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive restricted stock units (“RSUs”) and performance stock units (“PSUs”) 5.9 8.2 6.8 9.3 Weighted average MCPS converted shares 1.5 1.1 — 6.0 Weighted average common shares outstanding used in Diluted EPS 744.7 736.0 740.2 736.8 Basic EPS $ 1.50 $ 2.28 $ 3.46 $ 4.63 Diluted EPS $ 1.49 $ 2.25 $ 3.42 $ 4.56 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present the Company’s revenues disaggregated by geographical region and revenue type for the three and six-month periods ended June 30, 2023 and July 1, 2022 ($ in millions) . Sales taxes and other usage-based taxes collected from customers are excluded from revenue. Biotechnology Life Sciences Diagnostics Environmental & Applied Solutions Total For the Three-Month Period Ended June 30, 2023: Geographical region: North America (a) $ 611 $ 757 $ 982 $ 577 $ 2,927 Western Europe 684 375 365 284 1,708 Other developed markets (b) 72 124 100 31 327 High-growth markets (c) 518 540 784 353 2,195 Total $ 1,885 $ 1,796 $ 2,231 $ 1,245 $ 7,157 Revenue type: Recurring $ 1,534 $ 1,104 $ 1,958 $ 742 $ 5,338 Nonrecurring 351 692 273 503 1,819 Total $ 1,885 $ 1,796 $ 2,231 $ 1,245 $ 7,157 For the Three-Month Period Ended July 1, 2022: Geographical region: North America (a) $ 798 $ 778 $ 1,235 $ 571 $ 3,382 Western Europe 632 340 453 266 1,691 Other developed markets (b) 88 111 115 32 346 High-growth markets (c) 748 472 758 354 2,332 Total $ 2,266 $ 1,701 $ 2,561 $ 1,223 $ 7,751 Revenue type: Recurring $ 1,804 $ 1,068 $ 2,301 $ 719 $ 5,892 Nonrecurring 462 633 260 504 1,859 Total $ 2,266 $ 1,701 $ 2,561 $ 1,223 $ 7,751 Biotechnology Life Sciences Diagnostics Environmental & Applied Solutions Total For the Six-Month Period Ended June 30, 2023: Geographical region: North America (a) $ 1,229 $ 1,465 $ 2,106 $ 1,149 $ 5,949 Western Europe 1,331 739 785 561 3,416 Other developed markets (b) 151 252 217 60 680 High-growth markets (c) 1,038 1,049 1,499 693 4,279 Total $ 3,749 $ 3,505 $ 4,607 $ 2,463 $ 14,324 Revenue type: Recurring $ 3,045 $ 2,143 $ 4,070 $ 1,466 $ 10,724 Nonrecurring 704 1,362 537 997 3,600 Total $ 3,749 $ 3,505 $ 4,607 $ 2,463 $ 14,324 For the Six-Month Period Ended July 1, 2022: Geographical region: North America (a) $ 1,580 $ 1,516 $ 2,541 $ 1,099 $ 6,736 Western Europe 1,339 668 977 535 3,519 Other developed markets (b) 173 248 239 64 724 High-growth markets (c) 1,390 935 1,448 687 4,460 Total $ 4,482 $ 3,367 $ 5,205 $ 2,385 $ 15,439 Revenue type: Recurring $ 3,605 $ 2,105 $ 4,671 $ 1,409 $ 11,790 Nonrecurring 877 1,262 534 976 3,649 Total $ 4,482 $ 3,367 $ 5,205 $ 2,385 $ 15,439 (a) The Company defines North America as the United States and Canada. (b ) The Company defines other developed markets as Japan, Australia and New Zealand. (c) The Company defines high-growth markets as developing markets of the world experiencing extended periods of accelerated growth in gross domestic product and infrastructure which include Eastern Europe, the Middle East, Africa, Latin America (including Mexico) and Asia (with the exception of Japan, Australia and New Zealand). The Company defines developed markets as all markets of the world that are not high-growth markets. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Results | Segment results are shown below ($ in millions): Three-Month Period Ended Six-Month Period Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Sales: Biotechnology $ 1,885 $ 2,266 $ 3,749 $ 4,482 Life Sciences 1,796 1,701 3,505 3,367 Diagnostics 2,231 2,561 4,607 5,205 Environmental & Applied Solutions 1,245 1,223 2,463 2,385 Total $ 7,157 $ 7,751 $ 14,324 $ 15,439 Operating profit: Biotechnology $ 480 $ 824 $ 1,076 $ 1,624 Life Sciences 340 350 661 668 Diagnostics 424 800 1,101 1,686 Environmental & Applied Solutions 302 307 601 543 Other (117) (76) (216) (144) Total $ 1,429 $ 2,205 $ 3,223 $ 4,377 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Effective Income Tax Rate | The following table summarizes the Company’s effective tax rate: Three-Month Period Ended Six-Month Period Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Effective tax rate 20.5 % 18.8 % 19.9 % 18.3 % |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | The following sets forth the components of the Company’s other income (expense), net ($ in millions): Three-Month Period Ended Six-Month Period Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Other components of net periodic benefit costs $ 3 $ 11 $ 5 $ 15 Investment gains (losses): Realized investment gains (losses) — 27 — 64 Unrealized investment gains (losses) (32) (125) (10) (186) Total investment gains (losses) (32) (98) (10) (122) Total other income (expense), net $ (29) $ (87) $ (5) $ (107) |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Rollforward of Goodwill | The following is a rollforward of the Company’s goodwill ($ in millions): Balance, December 31, 2022 $ 39,752 Adjustments due to finalization of purchase price allocations (5) Foreign currency translation and other (171) Balance, June 30, 2023 $ 39,576 The carrying value of goodwill by segment is summarized as follows ($ in millions): June 30, 2023 December 31, 2022 Biotechnology $ 21,920 $ 22,087 Life Sciences 8,279 8,314 Diagnostics 6,871 6,875 Environmental & Applied Solutions 2,506 2,476 Total $ 39,576 $ 39,752 The Company has not identified any “triggering” events which indicate an impairment of goodwill in the first half of 2023. |
Goodwill by Segment | The following is a rollforward of the Company’s goodwill ($ in millions): Balance, December 31, 2022 $ 39,752 Adjustments due to finalization of purchase price allocations (5) Foreign currency translation and other (171) Balance, June 30, 2023 $ 39,576 The carrying value of goodwill by segment is summarized as follows ($ in millions): June 30, 2023 December 31, 2022 Biotechnology $ 21,920 $ 22,087 Life Sciences 8,279 8,314 Diagnostics 6,871 6,875 Environmental & Applied Solutions 2,506 2,476 Total $ 39,576 $ 39,752 The Company has not identified any “triggering” events which indicate an impairment of goodwill in the first half of 2023. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Carried at Fair Value | A summary of financial assets that are measured at fair value on a recurring basis were as follows ($ in millions): Balance Quoted Prices in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 Assets: Available-for-sale debt securities $ 7 $ 11 $ — $ — $ 7 $ 11 $ — $ — Investment in equity securities 438 315 142 16 — — — — Cross-currency swap derivative contracts 497 653 — — 497 653 — — |
Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of the Company’s other financial instruments were as follows ($ in millions): June 30, 2023 December 31, 2022 Carrying Amount Fair Value Carrying Amount Fair Value Debt obligations: Notes payable and current portion of long-term debt $ 1,590 $ 1,571 $ 591 $ 584 Long-term debt 18,285 15,520 19,086 16,079 |
Financing (Tables)
Financing (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Components of Debt | The components of the Company’s debt were as follows ($ in millions): Outstanding Amount Description and Aggregate Principal Amount June 30, 2023 December 31, 2022 Euro-denominated commercial paper (€1.9 billion) (e) $ 2,045 $ 2,013 0.5% senior unsecured bonds due 12/08/2023 (CHF 540 million) (the “2023 CHF Bonds”) (c) 603 584 1.7% senior unsecured notes due 3/30/2024 (€900 million) (the “2024 Euronotes”) (f) 981 962 2.2% senior unsecured notes due 11/15/2024 ($700 million) (the “2024 Biopharma Notes”) (b) 699 698 3.35% senior unsecured notes due 9/15/2025 ($500 million) (the “2025 U.S. Notes”) (f) 499 499 0.2% senior unsecured notes due 3/18/2026 (€1.3 billion) (the “2026 Biopharma Euronotes”) (b) 1,360 1,333 2.1% senior unsecured notes due 9/30/2026 (€800 million) (the “2026 Euronotes”) (f) 871 854 0.3% senior unsecured notes due 5/11/2027 (¥30.8 billion) (the “2027 Yen Notes”) (d) 213 234 1.2% senior unsecured notes due 6/30/2027 (€600 million) (the “2027 Euronotes”) (a) 652 639 0.45% senior unsecured notes due 3/18/2028 (€1.3 billion) (the “2028 Biopharma Euronotes”) (b) 1,357 1,331 1.125% senior unsecured bonds due 12/08/2028 (CHF 210 million) (the “2028 CHF Bonds”) (c) 237 230 2.6% senior unsecured notes due 11/15/2029 ($800 million) (the “2029 Biopharma Notes”) (b) 796 796 2.5% senior unsecured notes due 3/30/2030 (€800 million) (the “2030 Euronotes”) (f) 873 856 0.75% senior unsecured notes due 9/18/2031 (€1.8 billion) (the “2031 Biopharma Euronotes”) (b) 1,900 1,863 0.65% senior unsecured notes due 5/11/2032 (¥53.2 billion) (the “2032 Yen Notes”) (d) 367 404 1.35% senior unsecured notes due 9/18/2039 (€1.3 billion) (the “2039 Biopharma Euronotes”) (b) 1,349 1,323 3.25% senior unsecured notes due 11/15/2039 ($900 million) (the “2039 Biopharma Notes”) (b) 891 890 4.375% senior unsecured notes due 9/15/2045 ($500 million) (the “2045 U.S. Notes”) (f) 499 499 1.8% senior unsecured notes due 9/18/2049 (€750 million) (the “2049 Biopharma Euronotes”) (b) 809 794 3.4% senior unsecured notes due 11/15/2049 ($900 million) (the “2049 Biopharma Notes”) (b) 890 889 2.6% senior unsecured notes due 10/01/2050 ($1.0 billion) (the “2050 U.S. Notes”) (f) 981 981 2.8% senior unsecured notes due 12/10/2051 ($1.0 billion) (the “2051 U.S. Notes”) (f) 984 984 Other 19 21 Total debt 19,875 19,677 Less: currently payable (1,590) (591) Long-term debt $ 18,285 $ 19,086 (a) Issued by DH Europe Finance S.A. (“Danaher International”). (b) Issued by DH Europe Finance II S.a.r.l. (“Danaher International II”). (c) Issued by DH Switzerland Finance S.A. (“Danaher Switzerland”). (d) Issued by DH Japan Finance S.A. (“Danaher Japan”). (e) Issued by Danaher Corporation or Danaher International II. (f) Issued by Danaher Corporation. |
Hedging Transactions and Deri_2
Hedging Transactions and Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) | The following table summarizes the notional values as of June 30, 2023 and July 1, 2022 and pretax impact of changes in the fair values of instruments designated as net investment hedges and cash flow hedges in accumulated other comprehensive income (“OCI”) for the three and six-month periods ended June 30, 2023 and July 1, 2022 ($ in millions): Original Notional Amount Notional Amount Outstanding Gain (Loss) Recognized in OCI Amounts Reclassified from OCI For the Three-Month Period Ended June 30, 2023: Net investment hedges: Cross-currency contracts $ 3,875 $ 3,000 $ (58) $ — Foreign currency denominated debt 5,828 5,828 6 — Cash flow hedges: Cross-currency contracts 4,000 3,300 (127) 20 Interest rate swaps 1,600 — — 1 Total $ 15,303 $ 12,128 $ (179) $ 21 For the Three-Month Period Ended July 1, 2022: Net investment hedges: Cross-currency contracts $ 3,875 $ 3,000 $ 216 $ — Foreign currency denominated debt 5,870 5,870 271 — Cash flow hedges: Cross-currency contracts 4,000 4,000 381 (224) Interest rate swaps 1,600 — — 1 Total $ 15,345 $ 12,870 $ 868 $ (223) For the Six-Month Period Ended June 30, 2023: Net investment hedges: Cross-currency contracts $ 3,875 $ 3,000 $ (66) $ — Foreign currency denominated debt 5,828 5,828 (51) — Cash flow hedges: Cross-currency contracts 4,000 3,300 (90) 63 Interest rate swaps 1,600 — — 2 Total $ 15,303 $ 12,128 $ (207) $ 65 For the Six-Month Period Ended July 1, 2022 Net investment hedges: Cross-currency contracts $ 3,875 $ 3,000 $ 267 $ — Foreign currency denominated debt 5,870 5,870 395 — Cash flow hedges: Cross-currency contracts 4,000 4,000 506 (340) Interest rate swaps 1,600 — — 2 Total $ 15,345 $ 12,870 $ 1,168 $ (338) |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table summarizes the notional values as of June 30, 2023 and July 1, 2022 and pretax impact of changes in the fair values of instruments designated as net investment hedges and cash flow hedges in accumulated other comprehensive income (“OCI”) for the three and six-month periods ended June 30, 2023 and July 1, 2022 ($ in millions): Original Notional Amount Notional Amount Outstanding Gain (Loss) Recognized in OCI Amounts Reclassified from OCI For the Three-Month Period Ended June 30, 2023: Net investment hedges: Cross-currency contracts $ 3,875 $ 3,000 $ (58) $ — Foreign currency denominated debt 5,828 5,828 6 — Cash flow hedges: Cross-currency contracts 4,000 3,300 (127) 20 Interest rate swaps 1,600 — — 1 Total $ 15,303 $ 12,128 $ (179) $ 21 For the Three-Month Period Ended July 1, 2022: Net investment hedges: Cross-currency contracts $ 3,875 $ 3,000 $ 216 $ — Foreign currency denominated debt 5,870 5,870 271 — Cash flow hedges: Cross-currency contracts 4,000 4,000 381 (224) Interest rate swaps 1,600 — — 1 Total $ 15,345 $ 12,870 $ 868 $ (223) For the Six-Month Period Ended June 30, 2023: Net investment hedges: Cross-currency contracts $ 3,875 $ 3,000 $ (66) $ — Foreign currency denominated debt 5,828 5,828 (51) — Cash flow hedges: Cross-currency contracts 4,000 3,300 (90) 63 Interest rate swaps 1,600 — — 2 Total $ 15,303 $ 12,128 $ (207) $ 65 For the Six-Month Period Ended July 1, 2022 Net investment hedges: Cross-currency contracts $ 3,875 $ 3,000 $ 267 $ — Foreign currency denominated debt 5,870 5,870 395 — Cash flow hedges: Cross-currency contracts 4,000 4,000 506 (340) Interest rate swaps 1,600 — — 2 Total $ 15,345 $ 12,870 $ 1,168 $ (338) |
Schedule of Derivative and Non Derivative Instruments in Consolidated Condensed Balance Sheets | The Company’s derivative instruments, as well as its nonderivative debt instruments designated and qualifying as net investment hedges, were classified in the Company’s Consolidated Condensed Balance Sheets as follows ($ in millions): June 30, 2023 December 31, 2022 Derivative assets: Other long-term assets $ 497 $ 653 Nonderivative hedging instruments: Notes payable and current portion of long-term debt 1,584 — Long-term debt 4,244 5,777 |
Defined Benefit Plans (Tables)
Defined Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The following sets forth the components of the Company’s net periodic benefit costs of the noncontributory defined benefit pension plans and other postretirement employee benefit plans ($ in millions): Three-Month Period Ended Six-Month Period Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 U.S. pension benefits: Service cost $ — $ — $ — $ — Interest cost (24) (14) (48) (27) Expected return on plan assets 32 33 63 65 Amortization of actuarial loss (3) (9) (6) (18) Net periodic pension benefit $ 5 $ 10 $ 9 $ 20 Non-U.S. pension benefits: Service cost $ (8) $ (9) $ (16) $ (19) Interest cost (13) (6) (25) (12) Expected return on plan assets 9 8 18 18 Amortization of actuarial gain (loss) 2 (1) 4 (1) Amortization of prior service credit 1 — 1 — Settlement losses recognized — — — (10) Net periodic pension cost $ (9) $ (8) $ (18) $ (24) Other postretirement employee benefit plans: Service cost $ — $ — $ — $ — Interest cost (1) — (3) (1) Amortization of prior service credit — — 1 1 Net periodic benefit cost $ (1) $ — $ (2) $ — |
Stockholders' Equity and Stoc_2
Stockholders' Equity and Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Share Activity | The following table summarizes the Company’s share activity (shares in millions): Three-Month Period Ended Six-Month Period Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Preferred stock - shares issued: Balance, beginning of period 1.7 3.4 1.7 3.4 Conversion of MCPS to common stock (1.7) (1.7) (1.7) (1.7) Balance, end of period — 1.7 — 1.7 Common stock - shares issued: Balance, beginning of period 870.4 857.0 869.3 855.7 Common stock-based compensation awards 0.5 0.4 1.6 1.7 Conversion of MCPS to common stock 8.6 11.0 8.6 11.0 Balance, end of period 879.5 868.4 879.5 868.4 |
Components of Stock-Based Compensation Program | The following summarizes the components of the Company’s stock-based compensation expense ($ in millions): Three-Month Period Ended Six-Month Period Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 RSUs/PSUs: Pretax compensation expense $ 60 $ 58 $ 106 $ 104 Income tax benefit (12) (12) (21) (21) RSU/PSU expense, net of income taxes 48 46 85 83 Stock options: Pretax compensation expense 49 43 82 77 Income tax benefit (10) (9) (17) (16) Stock option expense, net of income taxes 39 34 65 61 Total stock-based compensation: Pretax compensation expense 109 101 188 181 Income tax benefit (22) (21) (38) (37) Total stock-based compensation expense, net of income taxes $ 87 $ 80 $ 150 $ 144 |
Components of Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive income (loss) by component are summarized below ($ in millions). Foreign Currency Translation Adjustments Pension and Postretirement Plan Benefit Adjustments Cash Flow Hedge Adjustments Accumulated Comprehensive Income (Loss) For the Three-Month Period Ended June 30, 2023: Balance, March 31, 2023 $ (2,619) $ (341) $ 194 $ (2,766) Other comprehensive income (loss) before reclassifications: Increase (decrease) (718) — (127) (845) Income tax impact 14 — — 14 Other comprehensive income (loss) before reclassifications, net of income taxes (704) — (127) (831) Reclassification adjustments: Increase (decrease) — — (a) 21 (b) 21 Income tax impact — — — — Reclassification adjustments, net of income taxes — — 21 21 Net other comprehensive income (loss), net of income taxes (704) — (106) (810) Balance, June 30, 2023 $ (3,323) $ (341) $ 88 $ (3,576) For the Three-Month Period Ended July 1, 2022: Balance, April 1, 2022 $ (882) $ (536) $ 42 $ (1,376) Other comprehensive income (loss) before reclassifications: Increase (decrease) (1,390) — 381 (1,009) Income tax impact (52) — (92) (144) Other comprehensive income (loss) before reclassifications, net of income taxes (1,442) — 289 (1,153) Reclassification adjustments: Increase (decrease) — 10 (a) (223) (b) (213) Income tax impact — (3) — (3) Reclassification adjustments, net of income taxes — 7 (223) (216) Net other comprehensive income (loss), net of income taxes (1,442) 7 66 (1,369) Balance, July 1, 2022 $ (2,324) $ (529) $ 108 $ (2,745) Foreign Currency Translation Adjustments Pension and Postretirement Plan Benefit Adjustments Cash Flow Hedge Adjustments Accumulated Comprehensive Income (Loss) For the Six-Month Period Ended June 30, 2023: Balance, December 31, 2022 $ (2,644) $ (341) $ 113 $ (2,872) Other comprehensive income (loss) before reclassifications: Increase (decrease) (695) — (90) (785) Income tax impact 16 — — 16 Other comprehensive income (loss) before reclassifications, net of income taxes (679) — (90) (769) Reclassification adjustments: Increase (decrease) — — (a) 65 (b) 65 Income tax impact — — — — Reclassification adjustments, net of income taxes — — 65 65 Net other comprehensive income (loss), net of income taxes (679) — (25) (704) Balance, June 30, 2023 $ (3,323) $ (341) $ 88 $ (3,576) For the Six-Month Period Ended July 1, 2022: Balance, December 31, 2021 $ (539) $ (550) $ 62 $ (1,027) Other comprehensive income (loss) before reclassifications: Increase (decrease) (1,721) — 506 (1,215) Income tax impact (64) — (122) (186) Other comprehensive income (loss) before reclassifications, net of income taxes (1,785) — 384 (1,401) Reclassification adjustments: Increase (decrease) — 28 (a) (338) (b) (310) Income tax impact — (7) — (7) Reclassification adjustments, net of income taxes — 21 (338) (317) Net other comprehensive income (loss), net of income taxes (1,785) 21 46 (1,718) Balance, July 1, 2022 $ (2,324) $ (529) $ 108 $ (2,745) (a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic benefit cost (refer to Notes 7 and 12 for additional details). (b) Reflects reclassification to earnings related to cash flow hedges of certain long-term debt (refer to Note 11 for additional details). |
General (Operating Leases) (Det
General (Operating Leases) (Details) - USD ($) $ in Billions | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Operating lease, right-of-use assets | $ 1 | $ 1 |
Operating lease, liabilities | $ 1.1 | $ 1.1 |
Veralto Corporation Separation
Veralto Corporation Separation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Sales | $ 7,157 | $ 7,751 | $ 14,324 | $ 15,439 | |
Environmental & Applied Solutions | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Sales | $ 4,800 | ||||
Business separation costs | 37 | 65 | |||
Business separation costs, net of tax | $ 34 | $ 59 |
Net Earnings Per Common Share_2
Net Earnings Per Common Share (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Apr. 17, 2023 | Apr. 15, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Dilutive MCPS shares included in computation of earnings per share (in shares) | 1.5 | 1.1 | 0 | 6 | ||
Mandatory convertible preferred stock dividends | $ 0 | $ 22 | $ 21 | $ 63 | ||
MCPS Series B | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share, amount | 8.6 | 5.1 | 8.6 | |||
Dilutive MCPS shares included in computation of earnings per share (in shares) | 1.5 | |||||
MCPS Series A | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Dilutive MCPS shares included in computation of earnings per share (in shares) | 1.1 | 6 | ||||
Common stock | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share, amount | 4.7 | 2.4 | 3.5 | 2.4 | ||
Preferred stock | MCPS Series B | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Mandatory convertible preferred stock dividends | $ 22 | $ 21 | $ 43 | |||
Common stock issued in connection with MCPS conversions (in shares) | 8.6 | |||||
Preferred stock | MCPS Series A | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Mandatory convertible preferred stock dividends | $ 20 | |||||
Common stock issued in connection with MCPS conversions (in shares) | 11 |
Net Earnings Per Common Share_3
Net Earnings Per Common Share (Components of Basic and Diluted Earnings per Share from Continuing Operations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | ||
Numerator | |||||
Net earnings | $ 1,106 | $ 1,680 | $ 2,556 | $ 3,405 | |
MCPS dividends | 0 | (22) | (21) | (63) | |
Net earnings attributable to common stockholders | 1,106 | 1,658 | 2,535 | 3,342 | |
Adjustment for MCPS dividends for dilutive MCPS | 0 | 0 | 0 | 20 | |
Net earnings attributable to common stockholders after assumed conversions for Diluted EPS | $ 1,106 | $ 1,658 | $ 2,535 | $ 3,362 | |
Denominator | |||||
Weighted average common shares outstanding used in Basic EPS (in shares) | 737.3 | 726.7 | 733.4 | 721.5 | |
Assumed exercise of dilutive options and vesting of dilutive restricted stock units (“RSUs”) and performance stock units (“PSUs”) (in shares) | 5.9 | 8.2 | 6.8 | 9.3 | |
Weighted average MCPS converted shares (in shares) | 1.5 | 1.1 | 0 | 6 | |
Weighted average common shares outstanding used in Diluted EPS (in shares) | 744.7 | 736 | 740.2 | 736.8 | |
Basic (in usd per share) | $ 1.50 | $ 2.28 | $ 3.46 | $ 4.63 | |
Diluted (in usd per share) | $ 1.49 | $ 2.25 | $ 3.42 | [1] | $ 4.56 |
[1]Net earnings per common share amounts for the relevant three-month periods do not add to the six-month period amount due to rounding. |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue by Geographical Region) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 7,157 | $ 7,751 | $ 14,324 | $ 15,439 | |
Recurring revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 5,338 | 5,892 | 10,724 | 11,790 | |
Nonrecurring revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,819 | 1,859 | 3,600 | 3,649 | |
North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 2,927 | 3,382 | 5,949 | 6,736 | |
Western Europe | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,708 | 1,691 | 3,416 | 3,519 | |
Other developed markets | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 327 | 346 | 680 | 724 | |
High-growth markets | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 2,195 | 2,332 | 4,279 | 4,460 | |
Environmental & Applied Solutions | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 4,800 | ||||
Operating segments | Biotechnology | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,885 | 2,266 | 3,749 | 4,482 | |
Operating segments | Biotechnology | Recurring revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,534 | 1,804 | 3,045 | 3,605 | |
Operating segments | Biotechnology | Nonrecurring revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 351 | 462 | 704 | 877 | |
Operating segments | Biotechnology | North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 611 | 798 | 1,229 | 1,580 | |
Operating segments | Biotechnology | Western Europe | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 684 | 632 | 1,331 | 1,339 | |
Operating segments | Biotechnology | Other developed markets | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 72 | 88 | 151 | 173 | |
Operating segments | Biotechnology | High-growth markets | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 518 | 748 | 1,038 | 1,390 | |
Operating segments | Life Sciences | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,796 | 1,701 | 3,505 | 3,367 | |
Operating segments | Life Sciences | Recurring revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,104 | 1,068 | 2,143 | 2,105 | |
Operating segments | Life Sciences | Nonrecurring revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 692 | 633 | 1,362 | 1,262 | |
Operating segments | Life Sciences | North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 757 | 778 | 1,465 | 1,516 | |
Operating segments | Life Sciences | Western Europe | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 375 | 340 | 739 | 668 | |
Operating segments | Life Sciences | Other developed markets | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 124 | 111 | 252 | 248 | |
Operating segments | Life Sciences | High-growth markets | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 540 | 472 | 1,049 | 935 | |
Operating segments | Diagnostics | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 2,231 | 2,561 | 4,607 | 5,205 | |
Operating segments | Diagnostics | Recurring revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,958 | 2,301 | 4,070 | 4,671 | |
Operating segments | Diagnostics | Nonrecurring revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 273 | 260 | 537 | 534 | |
Operating segments | Diagnostics | North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 982 | 1,235 | 2,106 | 2,541 | |
Operating segments | Diagnostics | Western Europe | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 365 | 453 | 785 | 977 | |
Operating segments | Diagnostics | Other developed markets | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 100 | 115 | 217 | 239 | |
Operating segments | Diagnostics | High-growth markets | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 784 | 758 | 1,499 | 1,448 | |
Operating segments | Environmental & Applied Solutions | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,245 | 1,223 | 2,463 | 2,385 | |
Operating segments | Environmental & Applied Solutions | Recurring revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 742 | 719 | 1,466 | 1,409 | |
Operating segments | Environmental & Applied Solutions | Nonrecurring revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 503 | 504 | 997 | 976 | |
Operating segments | Environmental & Applied Solutions | North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 577 | 571 | 1,149 | 1,099 | |
Operating segments | Environmental & Applied Solutions | Western Europe | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 284 | 266 | 561 | 535 | |
Operating segments | Environmental & Applied Solutions | Other developed markets | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 31 | 32 | 60 | 64 | |
Operating segments | Environmental & Applied Solutions | High-growth markets | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 353 | $ 354 | $ 693 | $ 687 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||||
Revenue, OTLs and STLs | $ 118 | $ 117 | $ 238 | $ 241 | |
Contract with customer, assets, net | 74 | 74 | $ 90 | ||
Contract with customer, liabilities | $ 2,000 | 2,000 | $ 1,900 | ||
Contract with customer, liabilities, revenue recognized | $ 1,000 | $ 995 |
Revenue (Performance Obligation
Revenue (Performance Obligations) (Details) $ in Billions | Jun. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 4.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 55% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 26% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2023 businessSegment | |
Segment Reporting [Abstract] | |
Number of segments reported | 4 |
Segment Information (Segment Re
Segment Information (Segment Results) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Sales | $ 7,157 | $ 7,751 | $ 14,324 | $ 15,439 | |
Operating profit | 1,429 | 2,205 | 3,223 | 4,377 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Operating profit | (117) | (76) | (216) | (144) | |
Biotechnology | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,885 | 2,266 | 3,749 | 4,482 | |
Operating profit | 480 | 824 | 1,076 | 1,624 | |
Life Sciences | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,796 | 1,701 | 3,505 | 3,367 | |
Operating profit | 340 | 350 | 661 | 668 | |
Diagnostics | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 2,231 | 2,561 | 4,607 | 5,205 | |
Operating profit | 424 | 800 | 1,101 | 1,686 | |
Environmental & Applied Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Sales | $ 4,800 | ||||
Environmental & Applied Solutions | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,245 | 1,223 | 2,463 | 2,385 | |
Operating profit | $ 302 | $ 307 | $ 601 | $ 543 |
Income Taxes (Summary of Danahe
Income Taxes (Summary of Danaher's Effective Income Tax Rate) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 20.50% | 18.80% | 19.90% | 18.30% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Dec. 31, 2022 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Federal statutory income tax rate, percent | 21% | 21% | 21% | 21% | |
Net tax charges (benefits), impact, amount | $ 18 | $ (8) | $ 13 | $ (49) | |
Net tax charges (benefits), impact percentage | 1.30% | (0.40%) | 0.40% | (1.20%) | |
Domestic Tax Authority | Internal Revenue Service (IRS) | |||||
Income Tax Contingency [Line Items] | |||||
Proposed adjustments to taxable income, self-insurance, other | $ 2,500 |
Other Income (Expense), Net (Sc
Other Income (Expense), Net (Schedule of Other Income (Expense)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Other Income and Expenses [Abstract] | ||||
Other components of net periodic benefit costs | $ 3 | $ 11 | $ 5 | $ 15 |
Investment gains (losses): | ||||
Realized investment gains (losses) | 0 | 27 | 0 | 64 |
Unrealized investment gains (losses) | (32) | (125) | (10) | (186) |
Total investment gains (losses) | (32) | (98) | (10) | (122) |
Total other income (expense), net | $ (29) | $ (87) | $ (5) | $ (107) |
Other Income (Expense), Net (Na
Other Income (Expense), Net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Equity method investment, impairment | $ 46 | $ 46 | ||
Equity method investment, impairment, after tax | 35 | 35 | ||
Foreign Plan | Defined benefit pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement losses | $ 0 | $ 0 | $ 0 | $ 10 |
Settlement loss, after tax | $ 9 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Rollforward of Goodwill) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance, beginning of period | $ 39,752 |
Adjustments due to finalization of purchase price allocations | (5) |
Foreign currency translation and other | (171) |
Balance, end of period | $ 39,576 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Goodwill by Segment) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Goodwill [Line Items] | ||
Total goodwill | $ 39,576 | $ 39,752 |
Operating segments | Biotechnology | ||
Goodwill [Line Items] | ||
Total goodwill | 21,920 | 22,087 |
Operating segments | Life Sciences | ||
Goodwill [Line Items] | ||
Total goodwill | 8,279 | 8,314 |
Operating segments | Diagnostics | ||
Goodwill [Line Items] | ||
Total goodwill | 6,871 | 6,875 |
Operating segments | Environmental & Applied Solutions | ||
Goodwill [Line Items] | ||
Total goodwill | $ 2,506 | $ 2,476 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Facility | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charges | $ 14 | $ 14 | ||
Technology and Customer Relationships | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charges | $ 34 | $ 9 | $ 34 | $ 9 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets and Liabilities Carried at Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Available-for-sale debt securities | $ 7 | $ 11 |
Investment in equity securities | 438 | 315 |
Cross-currency swap derivative contracts | 497 | 653 |
Quoted Prices in Active Market (Level 1) | ||
Assets: | ||
Available-for-sale debt securities | 0 | 0 |
Investment in equity securities | 142 | 16 |
Cross-currency swap derivative contracts | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Available-for-sale debt securities | 7 | 11 |
Investment in equity securities | 0 | 0 |
Cross-currency swap derivative contracts | 497 | 653 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Available-for-sale debt securities | 0 | 0 |
Investment in equity securities | 0 | 0 |
Cross-currency swap derivative contracts | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Billions | Jun. 30, 2023 | Dec. 31, 2022 |
Partnership | ||
Equity method investments | $ 1.6 | $ 1.5 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amounts and Fair Values of Other Financial Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Carrying Amount | ||
Debt obligations: | ||
Notes payable and current portion of long-term debt | $ 1,590 | $ 591 |
Long-term debt | 18,285 | 19,086 |
Fair Value | ||
Debt obligations: | ||
Notes payable and current portion of long-term debt | 1,571 | 584 |
Long-term debt | $ 15,520 | $ 16,079 |
Financing (Components of Debt)
Financing (Components of Debt) (Details) € in Millions, SFr in Millions, $ in Millions, ¥ in Billions | Jun. 30, 2023 USD ($) | Jun. 30, 2023 EUR (€) | Jun. 30, 2023 CHF (SFr) | Jun. 30, 2023 JPY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 CHF (SFr) | Dec. 31, 2022 JPY (¥) |
Debt Instrument [Line Items] | ||||||||
Total debt | $ 19,875 | $ 19,677 | ||||||
Less: currently payable | (1,590) | (591) | ||||||
Long-term debt | 18,285 | 19,086 | ||||||
Other | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | 19 | 21 | ||||||
Commercial paper | Euro-denominated commercial paper | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | 2,045 | € 1,900 | 2,013 | € 1,900 | ||||
Senior notes | 1.7% senior notes due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 981 | $ 962 | ||||||
Interest rate of debt instrument | 1.70% | 1.70% | 1.70% | 1.70% | 1.70% | 1.70% | 1.70% | 1.70% |
Aggregate principal amount | € | € 900 | € 900 | ||||||
Senior notes | 2.2% senior notes due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 699 | $ 698 | ||||||
Interest rate of debt instrument | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% |
Aggregate principal amount | $ 700 | $ 700 | ||||||
Senior notes | 3.35% senior notes due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 499 | $ 499 | ||||||
Interest rate of debt instrument | 3.35% | 3.35% | 3.35% | 3.35% | 3.35% | 3.35% | 3.35% | 3.35% |
Aggregate principal amount | $ 500 | $ 500 | ||||||
Senior notes | 0.2% senior notes due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 1,360 | $ 1,333 | ||||||
Interest rate of debt instrument | 0.20% | 0.20% | 0.20% | 0.20% | 0.20% | 0.20% | 0.20% | 0.20% |
Aggregate principal amount | € | € 1,300 | € 1,300 | ||||||
Senior notes | 2.1% senior notes due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 871 | $ 854 | ||||||
Interest rate of debt instrument | 2.10% | 2.10% | 2.10% | 2.10% | 2.10% | 2.10% | 2.10% | 2.10% |
Aggregate principal amount | € | € 800 | € 800 | ||||||
Senior notes | 0.3% senior notes due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 213 | $ 234 | ||||||
Interest rate of debt instrument | 0.30% | 0.30% | 0.30% | 0.30% | 0.30% | 0.30% | 0.30% | 0.30% |
Aggregate principal amount | ¥ | ¥ 30.8 | ¥ 30.8 | ||||||
Senior notes | 1.2% senior notes due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 652 | $ 639 | ||||||
Interest rate of debt instrument | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% |
Aggregate principal amount | € | € 600 | € 600 | ||||||
Senior notes | 0.45% senior notes due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 1,357 | $ 1,331 | ||||||
Interest rate of debt instrument | 0.45% | 0.45% | 0.45% | 0.45% | 0.45% | 0.45% | 0.45% | 0.45% |
Aggregate principal amount | € | € 1,300 | € 1,300 | ||||||
Senior notes | 2.6% senior notes due 2029 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 796 | $ 796 | ||||||
Interest rate of debt instrument | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% |
Aggregate principal amount | $ 800 | $ 800 | ||||||
Senior notes | 2.5% senior notes due 2030 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 873 | $ 856 | ||||||
Interest rate of debt instrument | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% |
Aggregate principal amount | € | € 800 | € 800 | ||||||
Senior notes | 0.75% senior notes due 2031 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 1,900 | $ 1,863 | ||||||
Interest rate of debt instrument | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% |
Aggregate principal amount | € | € 1,800 | € 1,800 | ||||||
Senior notes | 0.65% senior notes due 2032 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 367 | $ 404 | ||||||
Interest rate of debt instrument | 0.65% | 0.65% | 0.65% | 0.65% | 0.65% | 0.65% | 0.65% | 0.65% |
Aggregate principal amount | ¥ | ¥ 53.2 | ¥ 53.2 | ||||||
Senior notes | 1.35% senior notes due 2039 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 1,349 | $ 1,323 | ||||||
Interest rate of debt instrument | 1.35% | 1.35% | 1.35% | 1.35% | 1.35% | 1.35% | 1.35% | 1.35% |
Aggregate principal amount | € | € 1,300 | € 1,300 | ||||||
Senior notes | 3.25% senior notes due 2039 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 891 | $ 890 | ||||||
Interest rate of debt instrument | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% |
Aggregate principal amount | $ 900 | $ 900 | ||||||
Senior notes | 4.375% senior notes due 2045 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 499 | $ 499 | ||||||
Interest rate of debt instrument | 4.375% | 4.375% | 4.375% | 4.375% | 4.375% | 4.375% | 4.375% | 4.375% |
Aggregate principal amount | $ 500 | $ 500 | ||||||
Senior notes | 1.8% senior notes due 2049 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 809 | $ 794 | ||||||
Interest rate of debt instrument | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% |
Aggregate principal amount | € | € 750 | € 750 | ||||||
Senior notes | 3.4% senior notes due 2049 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 890 | $ 889 | ||||||
Interest rate of debt instrument | 3.40% | 3.40% | 3.40% | 3.40% | 3.40% | 3.40% | 3.40% | 3.40% |
Aggregate principal amount | $ 900 | $ 900 | ||||||
Senior notes | 2.6% senior notes due 2050 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 981 | $ 981 | ||||||
Interest rate of debt instrument | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% |
Aggregate principal amount | $ 1,000 | $ 1,000 | ||||||
Senior notes | 2.8% senior unsecured notes due 2051 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 984 | $ 984 | ||||||
Interest rate of debt instrument | 2.80% | 2.80% | 2.80% | 2.80% | 2.80% | 2.80% | 2.80% | 2.80% |
Aggregate principal amount | $ 1,000 | $ 1,000 | ||||||
Bonds | 0.5% senior bonds due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 603 | $ 584 | ||||||
Interest rate of debt instrument | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% |
Aggregate principal amount | SFr | SFr 540 | SFr 540 | ||||||
Bonds | 1.125% senior bonds due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 237 | $ 230 | ||||||
Interest rate of debt instrument | 1.125% | 1.125% | 1.125% | 1.125% | 1.125% | 1.125% | 1.125% | 1.125% |
Aggregate principal amount | SFr | SFr 210 | SFr 210 |
Financing (Narrative) (Details)
Financing (Narrative) (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Debt discounts, premiums and debt issuance costs | $ 111,000,000 | $ 118,000,000 |
Euro-denominated commercial paper | Commercial paper | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate of long-term debt, interest rate | 3.60% | |
Weighted average maturity of long-term debt, at point in time | 47 days | |
Long-term debt | Revolving credit facility | Five-Year Facility | ||
Debt Instrument [Line Items] | ||
Line of credit | $ 5,000,000,000 |
Hedging Transactions and Deri_3
Hedging Transactions and Derivative Financial Instruments (Summary of Notional Values and Pretax Impact in Fair Values of Net Investment Hedges and Cash Flow Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Reclassified from OCI | $ (21) | $ 213 | $ (65) | $ 310 |
Net investment hedges | Cross-currency contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, original notional amount | 3,875 | 3,875 | 3,875 | 3,875 |
Derivative, notional amount outstanding | 3,000 | 3,000 | 3,000 | 3,000 |
Gain (Loss) Recognized in OCI | (58) | 216 | (66) | 267 |
Amounts Reclassified from OCI | 0 | 0 | 0 | 0 |
Net investment hedges | Foreign currency denominated debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Nonderivative, notional amount | 5,828 | 5,870 | 5,828 | 5,870 |
Net investment hedges, gain (loss), recognized in OCI | 6 | 271 | (51) | 395 |
Amounts Reclassified from OCI | 0 | 0 | 0 | 0 |
Cash flow hedges | Cross-currency contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, original notional amount | 4,000 | 4,000 | 4,000 | 4,000 |
Derivative, notional amount outstanding | 3,300 | 4,000 | 3,300 | 4,000 |
Gain (Loss) Recognized in OCI | (127) | 381 | (90) | 506 |
Amounts Reclassified from OCI | 20 | (224) | 63 | (340) |
Cash flow hedges | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, original notional amount | 1,600 | 1,600 | 1,600 | 1,600 |
Derivative, notional amount outstanding | 0 | 0 | 0 | 0 |
Gain (Loss) Recognized in OCI | 0 | 0 | 0 | 0 |
Amounts Reclassified from OCI | 1 | 1 | 2 | 2 |
Cash flow and net investment hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Original Notional Amount | 15,303 | 15,345 | 15,303 | 15,345 |
Notional Amount Outstanding | 12,128 | 12,870 | 12,128 | 12,870 |
Gain (Loss) Recognized in OCI | (179) | 868 | (207) | 1,168 |
Amounts Reclassified from OCI | $ 21 | $ (223) | $ 65 | $ (338) |
Hedging Transactions and Deri_4
Hedging Transactions and Derivative Financial Instruments (Derivative and Nonderivative Debt Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other long-term assets | Other long-term assets |
Net investment hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 497 | $ 653 |
Net investment hedges | Notes payable and current portion of long-term debt | ||
Derivatives, Fair Value [Line Items] | ||
Nonderivative hedging instruments | 1,584 | 0 |
Net investment hedges | Long-term debt | ||
Derivatives, Fair Value [Line Items] | ||
Nonderivative hedging instruments | $ 4,244 | $ 5,777 |
Defined Benefit Plans (Componen
Defined Benefit Plans (Components of Net Periodic Benefit Cost of Defined Benefit Pension Plans) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Defined benefit pension plans | U.S. pension benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | (24) | (14) | (48) | (27) |
Expected return on plan assets | 32 | 33 | 63 | 65 |
Amortization of actuarial (loss) gain | (3) | (9) | (6) | (18) |
Net periodic benefit (cost) | 5 | 10 | 9 | 20 |
Defined benefit pension plans | Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | (8) | (9) | (16) | (19) |
Interest cost | (13) | (6) | (25) | (12) |
Expected return on plan assets | 9 | 8 | 18 | 18 |
Amortization of actuarial (loss) gain | 2 | (1) | 4 | (1) |
Amortization of prior service credit | 1 | 0 | 1 | 0 |
Settlement losses recognized | 0 | 0 | 0 | (10) |
Net periodic benefit (cost) | (9) | (8) | (18) | (24) |
Other postretirement benefit plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | (1) | 0 | (3) | (1) |
Amortization of prior service credit | 0 | 0 | 1 | 1 |
Net periodic benefit (cost) | $ (1) | $ 0 | $ (2) | $ 0 |
Defined Benefit Plans (Narrativ
Defined Benefit Plans (Narrative) (Details) - Defined benefit pension plans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement loss | $ 0 | $ 0 | $ 0 | $ 10 |
Expected future employer contributions, current fiscal year | 38 | 38 | ||
U.S. pension benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected future employer contributions, current fiscal year | $ 10 | $ 10 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accrued warranty liabilities | $ 98 | $ 95 |
Maximum | ||
Standard product warranty period | 20 years |
Stockholders' Equity and Stoc_3
Stockholders' Equity and Stock-based Compensation (Narrative) (Details) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Apr. 17, 2023 shares | Apr. 15, 2022 shares | Jun. 30, 2023 USD ($) shares | Dec. 31, 2022 | Jul. 16, 2013 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized shares to be repurchased (in shares) | 20,000,000 | ||||
Remaining number of shares authorized to be repurchased (in shares) | 20,000,000 | ||||
Common shares reserved for issuance under the 2007 Omnibus Incentive Plan (in shares) | 41,000,000 | ||||
RSU/PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation cost | $ | $ 273 | ||||
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 | $ | $ 309 | ||||
Weighted average period for cost to be recognized | 2 years | ||||
Preferred stock | Series B Preferred Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Preferred stock, dividend rate, percent | 5% | 5% | |||
Preferred stock, convertible, conversion rate | 5.0175 | ||||
Common stock issued in connection with MCPS conversions (in shares) | 8,600,000 | ||||
Preferred stock | Preferred stock series A | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Preferred stock, dividend rate, percent | 4.75% | ||||
Preferred stock, convertible, conversion rate | 6.6632 | ||||
Common stock issued in connection with MCPS conversions (in shares) | 11,000,000 |
Stockholders' Equity and Stoc_4
Stockholders' Equity and Stock-based Compensation (Summary of Share Activity) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Preferred stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, beginning of period | 1.7 | 3.4 | 1.7 | 3.4 |
Balance, end of period | 0 | 1.7 | 0 | 1.7 |
Preferred stock | Conversion of MCPS to common stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock issued in connection with MCPS conversions (in shares) | (1.7) | (1.7) | (1.7) | (1.7) |
Common stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, beginning of period | 870.4 | 857 | 869.3 | 855.7 |
Common stock-based compensation awards | 0.5 | 0.4 | 1.6 | 1.7 |
Balance, end of period | 879.5 | 868.4 | 879.5 | 868.4 |
Common stock | Conversion of MCPS to common stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock issued in connection with MCPS conversions (in shares) | 8.6 | 11 | 8.6 | 11 |
Stockholders' Equity and Stoc_5
Stockholders' Equity and Stock-based Compensation (Components of Stock-Based Compensation Program) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pretax compensation expense | $ 109 | $ 101 | $ 188 | $ 181 |
Income tax benefit | (22) | (21) | (38) | (37) |
Total stock-based compensation expense, net of income taxes | 87 | 80 | 150 | 144 |
RSU/PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pretax compensation expense | 60 | 58 | 106 | 104 |
Income tax benefit | (12) | (12) | (21) | (21) |
Total stock-based compensation expense, net of income taxes | 48 | 46 | 85 | 83 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pretax compensation expense | 49 | 43 | 82 | 77 |
Income tax benefit | (10) | (9) | (17) | (16) |
Total stock-based compensation expense, net of income taxes | $ 39 | $ 34 | $ 65 | $ 61 |
Stockholders' Equity and Stoc_6
Stockholders' Equity and Stock-based Compensation (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (2,766) | $ (1,376) | $ (2,872) | $ (1,027) |
Other comprehensive income (loss) before reclassifications: | ||||
Increase (decrease) | (845) | (1,009) | (785) | (1,215) |
Income tax impact | 14 | (144) | 16 | (186) |
Other comprehensive income (loss) before reclassifications, net of income taxes | (831) | (1,153) | (769) | (1,401) |
Reclassification adjustments: | ||||
Increase (decrease) | 21 | (213) | 65 | (310) |
Income tax impact | 0 | (3) | 0 | (7) |
Reclassification adjustments, net of income taxes | 21 | (216) | 65 | (317) |
Total other comprehensive income (loss), net of income taxes | (810) | (1,369) | (704) | (1,718) |
Ending balance | (3,576) | (2,745) | (3,576) | (2,745) |
Foreign Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (2,619) | (882) | (2,644) | (539) |
Other comprehensive income (loss) before reclassifications: | ||||
Increase (decrease) | (718) | (1,390) | (695) | (1,721) |
Income tax impact | 14 | (52) | 16 | (64) |
Other comprehensive income (loss) before reclassifications, net of income taxes | (704) | (1,442) | (679) | (1,785) |
Reclassification adjustments: | ||||
Increase (decrease) | 0 | 0 | 0 | 0 |
Income tax impact | 0 | 0 | 0 | 0 |
Reclassification adjustments, net of income taxes | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), net of income taxes | (704) | (1,442) | (679) | (1,785) |
Ending balance | (3,323) | (2,324) | (3,323) | (2,324) |
Pension and Postretirement Plan Benefit Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (341) | (536) | (341) | (550) |
Other comprehensive income (loss) before reclassifications: | ||||
Increase (decrease) | 0 | 0 | 0 | 0 |
Income tax impact | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) before reclassifications, net of income taxes | 0 | 0 | 0 | 0 |
Reclassification adjustments: | ||||
Increase (decrease) | 0 | 10 | 0 | 28 |
Income tax impact | 0 | (3) | 0 | (7) |
Reclassification adjustments, net of income taxes | 0 | 7 | 0 | 21 |
Total other comprehensive income (loss), net of income taxes | 0 | 7 | 0 | 21 |
Ending balance | (341) | (529) | (341) | (529) |
Cash Flow Hedge Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 194 | 42 | 113 | 62 |
Other comprehensive income (loss) before reclassifications: | ||||
Increase (decrease) | (127) | 381 | (90) | 506 |
Income tax impact | 0 | (92) | 0 | (122) |
Other comprehensive income (loss) before reclassifications, net of income taxes | (127) | 289 | (90) | 384 |
Reclassification adjustments: | ||||
Increase (decrease) | 21 | (223) | 65 | (338) |
Income tax impact | 0 | 0 | 0 | 0 |
Reclassification adjustments, net of income taxes | 21 | (223) | 65 | (338) |
Total other comprehensive income (loss), net of income taxes | (106) | 66 | (25) | 46 |
Ending balance | $ 88 | $ 108 | $ 88 | $ 108 |