DANAHER CORP /DE/DHR

DANAHER CORP /DE/ Leases Disclosure

10-KFiled Feb 24, 20262 min read
LEASES
The Company has operating leases for office space, warehouses, distribution centers, R&D facilities, manufacturing locations and certain equipment, primarily automobiles. Many leases include one or more options to renew, some of which include options to extend for up to 30 years, and some leases include options to terminate within 30 days. In certain of the Company’s lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for common area maintenance, utilities, inflation and/or changes in other indexes. The Company’s finance leases were not material as of December 31, 2025 and 2024. ROU assets arising from finance leases are included in property, plant and equipment, net and the liabilities are included in notes payable and current portion of long-term debt and long-term debt in the accompanying Consolidated Balance Sheets.
The Consolidated Financial Statements include the following amounts related to operating leases where the Company is the lessee ($ in millions):
202520242023
Consolidated Statements of Earnings
Fixed operating lease expense(a)
$250 $239 $207 
Variable operating lease expense66 60 67 
Total operating lease expense$316 $299 $274 
Consolidated Statements of Cash Flows
Cash paid for amounts included in the measurement of operating lease liabilities$250 $245 $214 
ROU assets obtained in exchange for operating lease obligations298 320 182 
Consolidated Balance SheetsDecember 31, 2025December 31, 2024
Lease Assets and LiabilitiesClassification
Operating lease ROU assetsOther long-term assets$1,214 $1,084 
Operating lease liabilities - currentAccrued expenses and other liabilities$199 $173 
Operating lease liabilities - long-termOther long-term liabilities1,079 968 
Total operating lease liabilities$1,278 $1,141 
Weighted average remaining lease term10 years9 years
Weighted average discount rate4.2 %4.2 %
(a) Includes short-term leases and sublease income, both of which were immaterial.
The following table presents the maturity of the Company’s operating lease liabilities as of December 31, 2025 ($ in millions):
2026$239 
2027201 
2028174 
2029150 
2030129 
Thereafter658 
Total operating lease payments1,551 
Less: imputed interest(273)
Total operating lease liabilities$1,278 
As of December 31, 2025, the Company had no additional significant operating or finance leases that had not yet commenced.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 20, 2025
2023Feb 21, 2024
2022Feb 22, 2023
2021Feb 23, 2022
2020Feb 25, 2021
2019Feb 21, 2020
2018Feb 21, 2019
2017Feb 21, 2018
2016Feb 22, 2017
2015Feb 24, 2016

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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