danaher 03-3Qsupp
- 1. Danaher Corporation Supplemental Financial Information 26-Sep-03 Quarter Ended Quarter Ended Quarter Ended Free Cash Flows ($ in 000's): Nine Months Ended 28-Mar-03 29-Mar-02 27-Jun-03 28-Jun-02 26-Sep-03 27-Sep-02 26-Sep-03 27-Sep-02 Operating Cash Flows $ 214,336 $ 263,247 $ 234,912 $ 130,199 $ 170,111 $ 171,983 $ 619,359 $ 565,429 Payments for Property, Plant & Equipment (Capital Expenditures) $ (15,617) $ (12,923) $ (22,004) $ (15,318) $ (16,439) $ (16,712) $ (54,060) $ (44,953) Free Cash Flow $ 198,719 $ 250,324 $ 212,908 $ 114,881 $ 153,672 $ 155,271 $ 565,299 $ 520,476 Free cash flow is defined as operating cash flow less purchases of NOTE: property, plant and equipment. Management believes that free cash flow provides useful information to investors regarding the Company's ability to generate cash without external financings. Management uses free cash flow to help gauge the resources available for strategic opportunities such as making acquisitions, investing in the business and strengthening the Company's balance sheet, and uses this measure in making operating decisions, allocating financial resources and for budget planning purposes. Free cash flow does not, however, take into account the Company's debt service requirements and other non-discretionary expenditures and therefore is not necessarily indicative of amounts of cash that may be available for discretionary uses. Free cash flow should be considered in addition to, and not in lieu of, cash flow from operations, net earnings and other measures of financial performance prepared in accordance with GAAP. Q2 Supp Analysis Page 1
- 2. Danaher Corporation Supplemental Financial Information 26-Sep-03 Debt to Total Capital and Net Debt to Total Capital Ratios ($ in 000's): Balance As Of: 26-Sep-03 31-Dec-02 Notes Payable and Current Portion of Long-term Debt $ 10,299 $ 112,542 Long-term Debt 1,246,008 1,197,422 Total debt 1,256,307 1,309,964 Total Stockholders' Equity 3,460,164 3,009,599 Total Capital $ 4,716,471 $ 4,319,563 Debt to Total Capital Ratio 26.6% 30.3% Total Debt $ 1,256,307 $ 1,309,964 Less: Cash and Cash Equivalents (1,104,727) (810,463) Net Debt 151,580 499,501 Total Capital $ 4,716,471 $ 4,319,563 Net Debt to Total Capital Ratio 3.2% 11.6% NOTE: Debt to Total Capital is defined as the ratio of Total Debt (including notes payable, current portion of long-term debt and long-term debt) to Total Capital (the sum of Total Debt and Stockholders’ Equity). Net Debt to Total Capital is defined as the ratio of Total Debt less Cash and Cash Equivalents to Total Capital. Management believes these ratios provide useful information to investors regarding the Company's debt leverage in relation to the size of its available capital base and existing cash resources. Management uses these ratios to evaluate the Company’s leverage over time to help determine the ability of the Company to access additional borrowing capacity. These ratios do not however necessarily indicate the ability of the Company to satisfy the debt service requirements in existing or future debt agreements. These ratios should be considered in addition to, and not in lieu of, other measures of liquidity including working capital prepared in accordance with GAAP. Q2 Supp Analysis Page 2