Lessee, operating lease, option to terminate, term

  
In the fourth quarter of 2020, the Company redeemed the €800 million aggregate principal amount of 1.7% senior unsecured notes due 2022 at a redemption price equal to the outstanding principal amount and a make-whole premium as specified in the applicable indenture, plus accrued and unpaid interest. The Company recorded a loss of $26 million ($20 million after-tax) on early extinguishment of these borrowings, including deferred costs, related to the payment of the make-whole premiums in connection with the redemption which is reflected as a loss on early extinguishment of borrowings in the Consolidated Statements of Earnings. In the fourth quarter of 2019, Danaher used a portion of the consideration received from Envista to redeem $875 million in aggregate principal amount of outstanding indebtedness (consisting of the Company’s 2.4% senior unsecured notes due 2020 and 5.0% senior unsecured notes due 2020). The Company incurred make-whole premiums, as specified in the applicable indenture, in connection with the redemption of $7 million ($5 million after-tax) which is reflected as a loss on early extinguishment of borrowings in the Consolidated Statements of Earnings.   
NOTE 10.  LEASES The Company has operating leases for office space, warehouses, distribution centers, research and development facilities, manufacturing locations and certain equipment, primarily automobiles. Many leases include one or more options to renew, some of which include options to extend the leases for up to 30 years, and some leases include options to terminate the leases within 30 days. In certain of the Company’s lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for common area maintenance, utilities, inflation and/or changes in other indexes. The Company’s finance leases were not material as of December 31, 2021 and 2020. Right-of-use (“ROU”) assets arising from finance leases are included in property, plant and equipment, net and the liabilities are included in notes payable and current portion of long-term debt and long-term debt in the accompanying Consolidated Balance Sheets.The Consolidated Financial Statements include the following amounts related to operating leases where the Company is the lessee ($ in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | 2021 |  | 2020 |  | 2019 |  |  |
| Consolidated Statements of Earnings |  |  |  |  |  |  |  |  |
| Fixed operating lease expense (a) |  | $ | 246  |  |  | $ | 216  |  |  | $ | 196  |  |  |  |
| Variable operating lease expense |  | 59  |  |  | 46  |  |  | 45  |  |  |  |
| Total operating lease expense |  | $ | 305  |  |  | $ | 262  |  |  | $ | 241  |  |  |  |
|  |  |  |  |  |  |  |  |  |
| Consolidated Statements of Cash Flows |  |  |  |  |  |  |  |  |
| Cash paid for amounts included in the measurement of operating lease liabilities |  | $ | 243  |  |  | $ | 221  |  |  | $ | 202  |  |  |  |
| ROU assets obtained in exchange for operating lease obligations |  | 289  |  |  | 246  |  |  | 145  |  |  |  |
|  |  |  |  |  |  |  |  |  |
| Consolidated Balance Sheets |  |  |  | December 31, 2021 |  | December 31, 2020 |  |  |
| Lease Assets and Liabilities | Classification |  |  |  |  |  |  |
| Operating lease ROU assets | Other long-term assets |  | $ | 1,041  |  |  | $ | 942  |  |  |  |
|  |  |  |  |  |  |  |  |  |
| Operating lease liabilities - current | Accrued expenses and other liabilities |  | $ | 207  |  |  | $ | 189  |  |  |  |
| Operating lease liabilities - long-term | Other long-term liabilities |  | 889  |  |  | 785  |  |  |  |
| Total operating lease liabilities |  |  |  | $ | 1,096  |  |  | $ | 974  |  |  |  |
|  |  |  |  |  |  |  |  |  |
| Weighted average remaining lease term |  |  |  | 8 years |  | 7 years |  |  |
| Weighted average discount rate |  |  |  | 2.7  | % |  | 2.8  | % |  |  |

(a) Includes short-term leases and sublease income, both of which were immaterial.  
88
