Delaware | 04-2209186 | ||||
(State of | (I.R.S. Employer Identification No.) | ||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||||||
Common Stock, $1.00 par value | TMO | New York Stock Exchange | ||||||||||||||||
0.750% Notes due 2024 | TMO 24A | New York Stock Exchange | ||||||||||||||||
0.125% Notes due 2025 | TMO 25B | New York Stock Exchange | ||||||||||||||||
2.000% Notes due 2025 | TMO 25 | New York Stock Exchange | ||||||||||||||||
TMO 26A | New York Stock Exchange | |||||||||||||||||
TMO 27 | New York Stock Exchange | |||||||||||||||||
TMO 27B | New York Stock Exchange | |||||||||||||||||
TMO 28A | New York Stock Exchange | |||||||||||||||||
TMO 28 | New York Stock Exchange | |||||||||||||||||
TMO 29 | New York Stock Exchange | |||||||||||||||||
TMO 31 | New York Stock Exchange | |||||||||||||||||
TMO 32 | New York Stock Exchange | |||||||||||||||||
TMO 37 | New York Stock Exchange | |||||||||||||||||
TMO 39 | New York Stock Exchange | |||||||||||||||||
1.875% Notes due 2049 | TMO 49 | New York Stock Exchange |
TABLE OF CONTENTS | ||||||||
Page | ||||||||
PART I | ||||||||
PART II | ||||||||
PART III | ||||||||
PART IV | ||||||||
(In millions) | 2018 | 2017 | ||||||
Life Sciences Solutions | $ | 647 | $ | 581 | ||||
Analytical Instruments | 2,243 | 2,050 | ||||||
Specialty Diagnostics | 187 | 158 | ||||||
Laboratory Products and Services | 2,055 | 1,679 | ||||||
Eliminations | (45 | ) | (20 | ) | ||||
$ | 5,087 | $ | 4,448 |
Name | Age | Present Title (Fiscal Year First Became Executive Officer) | Other Positions Held | ||||||||||||||
Marc N. Casper | Chairman, President and Chief Executive Officer (2001) | President and Chief Executive Officer (2009-2020) Chief Operating Officer (2008-2009) Executive Vice President (2006-2009) | |||||||||||||||
Mark P. Stevenson | Retiring Executive Vice President and Chief Operating Officer (2014) | Executive Vice President and Chief Operating Officer (2017-2021) Executive Vice President and President, Life Sciences Solutions (2014-2017) President and Chief Operating Officer, Life Technologies Corporation (2008-2014) | |||||||||||||||
Executive Vice President and Chief Operating Officer (2017) | Executive Vice President (2019-2021) Senior Vice President and President, Pharma Services (2017-2019) President and Chief Operating Officer, Patheon N.V. (2016-2017) Managing Director, JLL Partners* (2008-2016) | ||||||||||||||||
Gianluca Pettiti | 43 | Executive Vice President (2021) | Senior Vice President and President, Specialty Diagnostics (2019-2021) President, Biosciences (2018-2019) President, China (2015-2017) | ||||||||||||||
Michael A. Boxer | 60 | Senior Vice President, General Counsel and Secretary** (2018) | Executive Vice President and Group General Counsel, Luxottica Group S.p.A. (2011-2017) | ||||||||||||||
Stephen Williamson | Senior Vice President and Chief Financial Officer (2015) | Vice President, Financial Operations (2008-2015) | |||||||||||||||
Vice President and Chief Accounting Officer |
Item 1B. Unresolved Staff Comments |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Maximum Dollar Amount of Shares That May Yet Be Purchased Under the Plans or Programs (1) (in millions) | ||||||||||
Fiscal October (Sep. 30 - Nov. 3) | 1,008,466 | $ | 247.90 | 1,008,466 | $ | 2,000.0 | ||||||||
Fiscal November (Nov. 4 - Dec. 1) | — | — | 2,000.0 | |||||||||||
Fiscal December (Dec. 2 - Dec. 31) | — | — | 2,000.0 | |||||||||||
Total Fourth Quarter | 1,008,466 | $ | 247.90 | 1,008,466 | $ | 2,000.0 |
(In millions except per share amounts) | 2018 (a) | 2017 (b) | 2016 (c) | 2015 (d) | 2014 (e) | |||||||||||||||
Statement of Income Data | ||||||||||||||||||||
Revenues | $ | 24,358 | $ | 20,918 | $ | 18,274 | $ | 16,965 | $ | 16,890 | ||||||||||
Income from Continuing Operations | 2,938 | 2,228 | 2,025 | 1,980 | 1,895 | |||||||||||||||
Net Income | 2,938 | 2,225 | 2,022 | 1,975 | 1,894 | |||||||||||||||
Earnings per Share from Continuing Operations: | ||||||||||||||||||||
Basic | 7.31 | 5.65 | 5.13 | 4.97 | 4.76 | |||||||||||||||
Diluted | 7.24 | 5.60 | 5.10 | 4.93 | 4.71 | |||||||||||||||
Earnings per Share: | ||||||||||||||||||||
Basic | 7.31 | 5.64 | 5.12 | 4.96 | 4.76 | |||||||||||||||
Diluted | 7.24 | 5.59 | 5.09 | 4.92 | 4.71 | |||||||||||||||
Balance Sheet Data | ||||||||||||||||||||
Total Assets | 56,232 | 56,669 | 45,908 | 40,834 | 42,852 | |||||||||||||||
Long-term Obligations | 17,719 | 18,873 | 15,372 | 11,420 | 12,352 |
(Dollars in millions except per share amounts) | 2021 | 2020 | Change | |||||||||||||||||
Revenues | $ | 39,211 | $ | 32,218 | 22 | % | ||||||||||||||
GAAP operating income | $ | 10,028 | $ | 7,794 | 29 | % | ||||||||||||||
GAAP operating income margin | 25.6 | % | 24.2 | % | 1.4 | pt | ||||||||||||||
Adjusted operating income (non-GAAP measure) | $ | 12,138 | $ | 9,556 | 27 | % | ||||||||||||||
Adjusted operating income margin (non-GAAP measure) | 31.0 | % | 29.7 | % | 1.3 | pt | ||||||||||||||
GAAP diluted earnings per share attributable to Thermo Fisher Scientific Inc. | $ | 19.46 | $ | 15.96 | 22 | % | ||||||||||||||
Adjusted earnings per share (non-GAAP measure) | $ | 25.13 | $ | 19.56 | 28 | % | ||||||||||||||
Revenue growth | 22 | % | ||||||
Impact of acquisitions | 3 | % | ||||||
Impact of currency translation | 2 | % | ||||||
Organic revenue growth* (non-GAAP measure) | 17 | % |
(Dollars in millions) | 2018 | 2017 | ||||||||||||
Revenues | ||||||||||||||
Life Sciences Solutions | $ | 6,269 | 25.7 | % | $ | 5,728 | 27.4 | % | ||||||
Analytical Instruments | 5,469 | 22.5 | % | 4,821 | 23.0 | % | ||||||||
Specialty Diagnostics | 3,724 | 15.3 | % | 3,486 | 16.7 | % | ||||||||
Laboratory Products and Services | 10,035 | 41.2 | % | 7,825 | 37.4 | % | ||||||||
Eliminations | (1,139 | ) | (4.7 | )% | (942 | ) | (4.5 | )% | ||||||
$ | 24,358 | 100 | % | $ | 20,918 | 100 | % |
(Dollars in millions) | 2021 | 2020 | ||||||||||||
Revenues | ||||||||||||||
Life Sciences Solutions | $ | 15,631 | $ | 12,168 | ||||||||||
Analytical Instruments | 6,069 | 5,124 | ||||||||||||
Specialty Diagnostics | 5,659 | 5,343 | ||||||||||||
Laboratory Products and Biopharma Services | 14,862 | 12,245 | ||||||||||||
Eliminations | (3,010) | (2,662) | ||||||||||||
Consolidated revenues | $ | 39,211 | $ | 32,218 | ||||||||||
Life Sciences Solutions | Organic* (non-GAAP measure) | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | Total Change | Currency Translation | Acquisitions/ Divestitures | |||||||||||||||||||||||||||||||||
Revenues | $ | 15,631 | $ | 12,168 | 28 | % | 2 | % | 3 | % | 23 | % | ||||||||||||||||||||||||||
Segment income | $ | 7,817 | $ | 6,109 | 28 | % | ||||||||||||||||||||||||||||||||
Segment income margin | 50.0 | % | 50.2 | % | -0.2 pt |
Analytical Instruments | Organic* (non-GAAP measure) | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | Total Change | Currency Translation | Acquisitions/ Divestitures | |||||||||||||||||||||||||||||||||
Revenues | $ | 6,069 | $ | 5,124 | 18 | % | 2 | % | — | % | 17 | % | ||||||||||||||||||||||||||
Segment income | 1,197 | 808 | 48 | % | ||||||||||||||||||||||||||||||||||
Segment income margin | 19.7 | % | 15.8 | % | 3.9 pt |
Specialty Diagnostics | Organic* (non-GAAP measure) | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | Total Change | Currency Translation | Acquisitions/ Divestitures | |||||||||||||||||||||||||||||||||
Revenues | $ | 5,659 | $ | 5,343 | 6 | % | 1 | % | — | % | 5 | % | ||||||||||||||||||||||||||
Segment income | 1,280 | 1,368 | (6) | % | ||||||||||||||||||||||||||||||||||
Segment income margin | 22.6 | % | 25.6 | % | -3.0 pt |
Laboratory Products and Biopharma Services | Organic* (non-GAAP measure) | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | Total Change | Currency Translation | Acquisitions/ Divestitures | |||||||||||||||||||||||||||||||||
Revenues | $ | 14,862 | $ | 12,245 | 21 | % | 2 | % | 5 | % | 15 | % | ||||||||||||||||||||||||||
Segment income | 1,844 | 1,271 | 45 | % | ||||||||||||||||||||||||||||||||||
Segment income margin | 12.4 | % | 10.4 | % | 2.0 pt |
(Dollars in millions) | 2021 | 2020 | ||||||||||||
Net interest expense | $ | 493 | $ | 488 | ||||||||||
GAAP other income/(expense) | (694) | (76) | ||||||||||||
Adjusted other income/(expense) (non-GAAP measure) | 38 | 45 | ||||||||||||
GAAP tax rate | 12.5 | % | 11.8 | % | ||||||||||
Adjusted tax rate (non-GAAP measure) | 14.6 | % | 14.3 | % |
December 31, | December 31, | |||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Cash and cash equivalents | $ | 4,477 | $ | 10,325 | ||||||||||
Total debt | 34,870 | 21,735 |
(In millions) | 2021 | 2020 | ||||||||||||
Net cash provided by operating activities | $ | 9,312 | $ | 8,289 | ||||||||||
Net cash used in investing activities | (21,932) | (1,510) | ||||||||||||
Net cash provided by financing activities | 6,581 | 959 | ||||||||||||
Free cash flow (non-GAAP measure) | 6,809 | 6,823 |
(Dollars in millions except per share amounts) | 2021 | 2020 | ||||||||||||||||||||||||
Reconciliation of adjusted operating income and adjusted operating income margin | ||||||||||||||||||||||||||
GAAP operating income | $ | 10,028 | 25.6 | % | $ | 7,794 | 24.2 | % | ||||||||||||||||||
Cost of revenues charges (a) | 8 | 0.0 | % | 6 | 0.0 | % | ||||||||||||||||||||
Selling, general and administrative charges (credits) (b) | 144 | 0.4 | % | (10) | 0.0 | % | ||||||||||||||||||||
Restructuring and other costs (c) | 197 | 0.5 | % | 99 | 0.3 | % | ||||||||||||||||||||
Amortization of acquisition-related intangible assets | 1,761 | 4.5 | % | 1,667 | 5.2 | % | ||||||||||||||||||||
Adjusted operating income (non-GAAP measure) | $ | 12,138 | 31.0 | % | $ | 9,556 | 29.7 | % | ||||||||||||||||||
Reconciliation of adjusted other income/(expense) | ||||||||||||||||||||||||||
GAAP other income/(expense) | $ | (694) | $ | (76) | ||||||||||||||||||||||
Adjustments (d) | 732 | 121 | ||||||||||||||||||||||||
Adjusted other income/(expense) (non-GAAP measure) | $ | 38 | $ | 45 | ||||||||||||||||||||||
Reconciliation of adjusted tax rate | ||||||||||||||||||||||||||
GAAP tax rate | 12.5 | % | 11.8 | % | ||||||||||||||||||||||
Adjustments (e) | 2.1 | % | 2.5 | % | ||||||||||||||||||||||
Adjusted tax rate (non-GAAP measure) | 14.6 | % | 14.3 | % | ||||||||||||||||||||||
Reconciliation of adjusted earnings per share | ||||||||||||||||||||||||||
GAAP diluted earnings per share (EPS) attributable to Thermo Fisher Scientific Inc. | $ | 19.46 | $ | 15.96 | ||||||||||||||||||||||
Cost of revenues charges (a) | 0.02 | 0.01 | ||||||||||||||||||||||||
Selling, general and administrative charges (credits) (b) | 0.36 | (0.02) | ||||||||||||||||||||||||
Restructuring and other costs (c) | 0.50 | 0.25 | ||||||||||||||||||||||||
Amortization of acquisition-related intangible assets | 4.43 | 4.17 | ||||||||||||||||||||||||
Other income/expense adjustments (d) | 1.84 | 0.30 | ||||||||||||||||||||||||
Benefit from income taxes (e) | (1.49) | (1.12) | ||||||||||||||||||||||||
Equity in losses of unconsolidated entities | 0.01 | 0.01 | ||||||||||||||||||||||||
Adjusted EPS (non-GAAP measure) | $ | 25.13 | $ | 19.56 | ||||||||||||||||||||||
(Dollars in millions except per share amounts) | 2021 | 2020 | ||||||||||||||||||||||||
Reconciliation of free cash flow | ||||||||||||||||||||||||||
GAAP net cash provided by operating activities | $ | 9,312 | $ | 8,289 | ||||||||||||||||||||||
Purchases of property, plant and equipment | (2,523) | (1,474) | ||||||||||||||||||||||||
Proceeds from sale of property, plant and equipment | 20 | 8 | ||||||||||||||||||||||||
Free cash flow (non-GAAP measure) | $ | 6,809 | $ | 6,823 |
(In millions) | 2018 | 2017 | Total Change | Currency Translation | Acquisitions | Operations | ||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Life Sciences Solutions | $ | 6,269 | $ | 5,728 | $ | 541 | $ | 49 | $ | 28 | $ | 464 | ||||||||||||
Analytical Instruments | 5,469 | 4,821 | 648 | 41 | 45 | 562 | ||||||||||||||||||
Specialty Diagnostics | 3,724 | 3,486 | 238 | 41 | 8 | 189 | ||||||||||||||||||
Laboratory Products and Services | 10,035 | 7,825 | 2,210 | 50 | 1,466 | 694 | ||||||||||||||||||
Eliminations | (1,139 | ) | (942 | ) | (197 | ) | (8 | ) | (18 | ) | (171 | ) | ||||||||||||
Consolidated Revenues | $ | 24,358 | $ | 20,918 | $ | 3,440 | $ | 173 | $ | 1,529 | $ | 1,738 |
(Dollars in millions) | 2018 | 2017 | Change | ||||||||
Revenues | |||||||||||
Life Sciences Solutions | $ | 6,269 | $ | 5,728 | 9 | % | |||||
Analytical Instruments | 5,469 | 4,821 | 13 | % | |||||||
Specialty Diagnostics | 3,724 | 3,486 | 7 | % | |||||||
Laboratory Products and Services | 10,035 | 7,825 | 28 | % | |||||||
Eliminations | (1,139 | ) | (942 | ) | 21 | % | |||||
Consolidated Revenues | $ | 24,358 | $ | 20,918 | 16 | % | |||||
Segment Income | |||||||||||
Life Sciences Solutions | $ | 2,158 | $ | 1,894 | 14 | % | |||||
Analytical Instruments | 1,247 | 1,027 | 21 | % | |||||||
Specialty Diagnostics | 952 | 927 | 3 | % | |||||||
Laboratory Products and Services | 1,258 | 1,004 | 25 | % | |||||||
Subtotal Reportable Segments | 5,615 | 4,852 | 16 | % | |||||||
Cost of Revenues Charges | (12 | ) | (123 | ) | |||||||
Selling, General and Administrative Charges, Net | (29 | ) | (78 | ) | |||||||
Restructuring and Other (Costs) Income, Net | (50 | ) | (97 | ) | |||||||
Amortization of Acquisition-related Intangible Assets | (1,741 | ) | (1,594 | ) | |||||||
Consolidated Operating Income | $ | 3,783 | $ | 2,960 | 28 | % | |||||
Reportable Segments Operating Income Margin | 23.1 | % | 23.2 | % | |||||||
Consolidated Operating Income Margin | 15.5 | % | 14.2 | % |
(Dollars in millions) | 2018 | 2017 | Change | ||||||||
Revenues | $ | 6,269 | $ | 5,728 | 9 | % | |||||
Operating Income Margin | 34.4 | % | 33.1 | % | 1.3 pt |
(Dollars in millions) | 2018 | 2017 | Change | ||||||||
Revenues | $ | 5,469 | $ | 4,821 | 13 | % | |||||
Operating Income Margin | 22.8 | % | 21.3 | % | 1.5 pt |
(Dollars in millions) | 2018 | 2017 | Change | ||||||||
Revenues | $ | 3,724 | $ | 3,486 | 7 | % | |||||
Operating Income Margin | 25.6 | % | 26.6 | % | -1.0 pt |
(Dollars in millions) | 2018 | 2017 | Change | ||||||||
Revenues | $ | 10,035 | $ | 7,825 | 28 | % | |||||
Operating Income Margin | 12.5 | % | 12.8 | % | -0.3 pt |
(In millions) | 2017 | 2016 | Total Change | Currency Translation | Acquisitions | Operations | ||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Life Sciences Solutions | $ | 5,728 | $ | 5,317 | $ | 411 | $ | 12 | $ | 99 | $ | 300 | ||||||||||||
Analytical Instruments | 4,821 | 3,668 | 1,153 | 29 | 794 | 330 | ||||||||||||||||||
Specialty Diagnostics | 3,486 | 3,339 | 147 | 12 | 9 | 126 | ||||||||||||||||||
Laboratory Products and Services | 7,825 | 6,724 | 1,101 | 13 | 727 | 361 | ||||||||||||||||||
Eliminations | (942 | ) | (774 | ) | (168 | ) | 4 | (4 | ) | (168 | ) | |||||||||||||
Consolidated Revenues | $ | 20,918 | $ | 18,274 | $ | 2,644 | $ | 70 | $ | 1,625 | $ | 949 |
(Dollars in millions) | 2017 | 2016 | Change | ||||||||
Revenues | |||||||||||
Life Sciences Solutions | $ | 5,728 | $ | 5,317 | 8 | % | |||||
Analytical Instruments | 4,821 | 3,668 | 31 | % | |||||||
Specialty Diagnostics | 3,486 | 3,339 | 4 | % | |||||||
Laboratory Products and Services | 7,825 | 6,724 | 16 | % | |||||||
Eliminations | (942 | ) | (774 | ) | 22 | % | |||||
Consolidated Revenues | $ | 20,918 | $ | 18,274 | 14 | % | |||||
Segment Income | |||||||||||
Life Sciences Solutions | $ | 1,894 | $ | 1,598 | 19 | % | |||||
Analytical Instruments | 1,027 | 749 | 37 | % | |||||||
Specialty Diagnostics | 927 | 910 | 2 | % | |||||||
Laboratory Products and Services | 1,004 | 974 | 3 | % | |||||||
Subtotal Reportable Segments | 4,852 | 4,231 | 15 | % | |||||||
Cost of Revenues Charges | (123 | ) | (102 | ) | |||||||
Selling, General and Administrative Costs, Net | (78 | ) | (104 | ) | |||||||
Restructuring and Other Income (Costs), Net | (97 | ) | (189 | ) | |||||||
Amortization of Acquisition-related Intangible Assets | (1,594 | ) | (1,378 | ) | |||||||
Consolidated Operating Income | $ | 2,960 | $ | 2,458 | 20 | % | |||||
Reportable Segments Operating Income Margin | 23.2 | % | 23.2 | % | |||||||
Consolidated Operating Income Margin | 14.2 | % | 13.5 | % |
(Dollars in millions) | 2017 | 2016 | Change | ||||||||
Revenues | $ | 5,728 | $ | 5,317 | 8 | % | |||||
Operating Income Margin | 33.1 | % | 30.1 | % | 3.0 pt |
(Dollars in millions) | 2017 | 2016 | Change | ||||||||
Revenues | $ | 4,821 | $ | 3,668 | 31 | % | |||||
Operating Income Margin | 21.3 | % | 20.4 | % | 0.9 pt |
(Dollars in millions) | 2017 | 2016 | Change | ||||||||
Revenues | $ | 3,486 | $ | 3,339 | 4 | % | |||||
Operating Income Margin | 26.6 | % | 27.3 | % | -0.7 pt |
(Dollars in millions) | 2017 | 2016 | Change | ||||||||
Revenues | $ | 7,825 | $ | 6,724 | 16 | % | |||||
Operating Income Margin | 12.8 | % | 14.5 | % | -1.7 pt |
Payments due by Period or Expiration of Commitment | ||||||||||||||||||||
(In millions) | 2019 | 2020 and 2021 | 2022 and 2023 | 2024 and Thereafter | Total | |||||||||||||||
Contractual Obligations and Other Commercial Commitments | ||||||||||||||||||||
Debt principal, including short-term debt (a) | $ | 1,268 | $ | 4,727 | $ | 3,175 | $ | 10,004 | $ | 19,174 | ||||||||||
Interest | 522 | 915 | 621 | 1,990 | 4,048 | |||||||||||||||
Capital lease obligations | 3 | 6 | 3 | — | 12 | |||||||||||||||
Operating lease obligations | 192 | 276 | 144 | 177 | 789 | |||||||||||||||
Unconditional purchase obligations (b) | 673 | 46 | 21 | 5 | 745 | |||||||||||||||
Letters of credit and bank guarantees | 183 | 19 | 13 | 3 | 218 | |||||||||||||||
Surety bonds and other guarantees | 27 | 1 | — | — | 28 | |||||||||||||||
Pension obligations on balance sheet | 43 | 91 | 97 | 274 | 505 | |||||||||||||||
Asset retirement obligations accrued on balance sheet | 6 | 15 | 11 | 13 | 45 | |||||||||||||||
Acquisition-related contingent consideration accrued on balance sheet | 3 | 13 | 5 | 16 | 37 | |||||||||||||||
$ | 2,920 | $ | 6,109 | $ | 4,090 | $ | 12,482 | $ | 25,601 |
See the Exhibit Index on page |
Date: | February 24, 2022 | THERMO FISHER SCIENTIFIC INC. | |||||||||
By: | |||||||||||
/s/ Marc N. Casper | |||||||||||
Marc N. Casper | |||||||||||
Chairman, President and Chief Executive Officer |
By: | /s/ Marc N. Casper | |||||||||||||
By: | /s/ Thomas J. Lynch | |||||||||||||
Thomas J. Lynch | ||||||||||||||
Chairman, | Lead Director | |||||||||||||
(Principal Executive Officer) | ||||||||||||||
By: | /s/ Stephen Williamson | By: | /s/ | |||||||||||
Stephen Williamson | ||||||||||||||
Senior Vice President and Chief Financial Officer | Director | |||||||||||||
(Principal Financial Officer) | ||||||||||||||
By: | /s/ | By: | /s/ James C. Mullen | |||||||||||
Vice President and Chief Accounting Officer | Director | |||||||||||||
(Principal Accounting Officer) | ||||||||||||||
By: | /s/ Nelson J. Chai | By: | /s/ Lars R. Sørensen | |||||||||||
Nelson J. Chai | Lars R. Sørensen | |||||||||||||
Director | Director | |||||||||||||
By: | /s/ C. Martin Harris | By: | /s/ | |||||||||||
Director | Director | |||||||||||||
By: | ||||||||||||||
/s/ Tyler E. Jacks | By: | /s/ Scott M. Sperling | ||||||||||||
Tyler E. Jacks | Scott M. Sperling | |||||||||||||
Director | Director | |||||||||||||
By: | /s/ R. Alexandra Keith | By: | /s/ Dion J. Weisler | |||||||||||
Dion J. Weisler | ||||||||||||||
Director | Director | |||||||||||||
Exhibit Number | Description of Exhibit | |||||||
2.1 | ||||||||
3.1 | Amended and Restated Certificate of Incorporation of the Registrant (filed as Exhibit 3.1 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2005 [File No. 1-8002] and incorporated in this document by reference). | |||||||
3.2 | Amendment to Thermo Fisher Scientific Inc.’s Third Amended and Restated Certificate of Incorporation (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed November 14, 2006 [File No. 1-8002] and incorporated in this document by reference). | |||||||
3.3 | Certificate of Elimination of the Series B Junior Participating Preferred Stock of the Company, dated November 13, 2015 (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed November 16, 2015 [File No. 1-8002] and incorporated in this document by reference). | |||||||
3.4 | Amended and Restated By-Laws of the Registrant, as amended and effective as of | |||||||
The Registrant agrees, pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K, to furnish to the Commission, upon request, a copy of each instrument with respect to long-term debt of the Registrant or its consolidated subsidiaries. | ||||||||
4.1 | Indenture dated as of November 20, 2009 between the Company and The Bank of New York Mellon Trust Company, N.A. (filed as Exhibit 99.1 to the Registrant’s Current Report on Form 8-K filed November 20, 2009 [File No. 1-8002] and incorporated in this document by reference). | |||||||
4.2 | ||||||||
Sixth Supplemental Indenture, dated as of December 11, 2013, between the Company and The Bank of New York Mellon Trust Company, N.A. (filed as Exhibit 99.2 to the Registrant’s Current Report on Form 8-K filed December 11, 2013 [File No. 1-8002] and incorporated in this document by reference). | ||||||||
Eighth Supplemental Indenture, dated as of November 24, 2014, among the Company, The Bank of New York Mellon Trust Company, N.A., as trustee, and The Bank of New York Mellon, London Branch, as paying agent (filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed November 24, 2014 [File No. 1-8002] and incorporated in this document by reference). | ||||||||
Eleventh Supplemental Indenture, dated as of December 9, 2015, between the Company and The Bank of New York Mellon Trust Company, N.A. (filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed December 9, 2015 [File No. 1-8002] and incorporated in this document by reference). | ||||||||
Thirteenth Supplemental Indenture, dated as of September 12, 2016, between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed September 12, 2016 [File No. 1-8002] and incorporated in this document by reference). | ||||||||
4.6 | ||||||||
Fifteenth Supplemental Indenture, dated as of March 16, 2017, between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed March 16, 2017 [File No. 1-8002] and incorporated in this document by reference). | ||||||||
Sixteenth Supplemental Indenture, dated as of July 24, 2017, between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (filed as Exhibit 4.2 to the Registrant's Current Report on Form 8-K filed July 24, 2017 [File No. 1-8002] and incorporated in this document by reference). | ||||||||
Seventeenth Supplemental Indenture, dated as of August 14, 2017, between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed August 14, 2017 [File No. 1-8002] and incorporated in this document by reference). | ||||||||
Eighteenth Supplemental Indenture, dated as of September 30, 2019, between the Company, and The Bank of New York Mellon Trust Company, N.A., as trustee (filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed September 30, 2019 [File No. 1-8002] and incorporated in this document by reference). | ||||||||
4.10 | Nineteenth Supplemental Indenture, dated as of October 8, 2019, between the Company, and the Bank of New York Mellon Trust Company, N.A., as trustee (filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed October 8, 2019 [File No. 1-8002] and incorporated in this document by reference). | |||||||
4.11 | Twenty-First Supplemental Indenture, dated as of April 2, 2020, between the Company, and The Bank of New York Mellon Trust Company, N.A., as trustee (filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed April 2, 2020 [File No. 1-8002] and incorporated in this document by reference). | |||||||
4.12 | Twenty-Second Supplemental Indenture, dated as of August | |||||||
4.13 | Third Supplemental Indenture, dated as of October 18, 2021, among Thermo Fisher Scientific (FinanceI) B.V. (Thermo Fisher International), as issuer, the Company, as guarantor, and The Bank of New York Mellon Trust Company, N.A., as trustee (filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed October 18, 2021 [File No. 1-8002] and incorporated in this document by reference). | |||||||
4.14 | Twenty-Third Supplemental Indenture, dated as of October 22, 2021, between the Company, and The Bank of New York Mellon Trust Company, N.A., as trustee (filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed October 22, 2021 [File No. 1-8002] and incorporated in this document by reference). | |||||||
4.15 | Indenture, dated as of August 9, 2016, among Thermo Fisher International, as issuer, the Company, as guarantor, and The Bank of New York Mellon Trust Company, N.A., as trustee (filed as Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed August 9, 2016 [File No. 1-8002] and incorporated in this document by reference). |
Description of Exhibit | ||||||||
4.16 | ||||||||
Thermo Fisher Scientific Inc. Deferred Compensation Plan for Directors of the Registrant, as amended and restated | ||||||||
10.2 | Thermo Electron Corporation Deferred Compensation Plan, effective November 1, 2001 (filed as Exhibit 10.13 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 29, 2001 [File No. 1-8002] and incorporated in this document by reference).* | |||||||
10.3 | Form of Amended and Restated Indemnification Agreement between the Registrant and its directors and officers (filed as Exhibit 10.2 to the Registrant’s Registration Statement on Form S-4 [Reg. No. 333-90661] and incorporated in this document by reference).* | |||||||
10.4 | ||||||||
10.5 | ||||||||
Summary of | ||||||||
Form of Noncompetition Agreement between the Registrant and certain key employees and executive officers, effective as of January 1, 2009 (filed as Exhibit 10.25 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2009 [File No. 1-8002] and incorporated in this document by reference).* | ||||||||
Retirement Plan for Non-Employee Directors of Fisher Scientific International Inc. (filed as Exhibit 10.12 to Fisher Scientific International Inc.’s Annual Report on Form 10-K for the year ended December 31, 1992 [File No. 1-10920] and incorporated in this document by reference).* | ||||||||
First Amendment to the Fisher Scientific International Inc. Retirement Plan for Non-Employee Directors (filed as Exhibit 10.04 to Fisher Scientific International Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2005 [File No. 1-10920] and incorporated in this document by reference).* |
10.9 | ||||||||
Amendment to Retirement Plan for Non-Employee Directors of Fisher Scientific International Inc. (filed as Exhibit 10.02 to Fisher Scientific International Inc.’s Current Report on Form 8-K filed March 7, 2006 [File No. 1-10920] and incorporated in this document by reference).* | ||||||||
Thermo Fisher Scientific Inc. Amended and Restated 2005 Deferred Compensation Plan, effective January 1, | ||||||||
2009 Restatement of Executive Severance Agreement, between Marc N. Casper and the Registrant, dated November 21, 2009 (filed as Exhibit 10.5 to the Registrant’s Current Report on Form 8-K filed November 25, 2009 [File No. 1-8002] and incorporated in this document by reference).* | ||||||||
Executive Change In Control Retention Agreement, between Marc N. Casper and the Registrant, dated November 21, 2009 (filed as Exhibit 10.6 to the Registrant’s Current Report on Form 8-K filed November 25, 2009 [File No. 1-8002] and incorporated in this document by reference).* | ||||||||
Noncompetition Agreement, between Marc N. Casper and the Registrant, dated November 21, 2009 (filed as Exhibit 10.7 to the Registrant’s Current Report on Form 8-K filed November 25, 2009 [File No. 1-8002] and incorporated in this document by reference).* | ||||||||
Amendment No. 1 to 2009 Restatement of Executive Severance Agreement, dated February 25, 2010, between the Registrant and Marc N. Casper (filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed February 25, 2010 [File No. 1-8002] and incorporated in this document by reference).* | ||||||||
Amendment No. 2 to 2009 Restatement of Executive Severance Agreement, dated November | ||||||||
Amendment No. 1 to Executive Change In Control Retention Agreement, dated November | ||||||||
Amendment No. 2 to Executive Change in Control Retention Agreement, dated March 16, 2018, between Marc N. Casper and the Registrant (filed as Exhibit 10.3 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 [File No. 1-8002] and incorporated in this document by reference).* | ||||||||
Form of Executive Change in Control Retention Agreement for Officers (other than Marc N. Casper) (filed as Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 [File No. 1-8002] and incorporated in this document by reference).* | ||||||||
Form of Thermo Fisher Scientific Inc.’s Restricted Stock Unit Agreement for Directors (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended April 2, 2011 [File No. 1-8002] and incorporated in this document by reference).* |
Description of Exhibit | ||||||||
10.20 | Form of Thermo Fisher Scientific Inc.’s Performance Restricted Stock Unit | |||||||
Form of Performance Restricted Stock Unit Agreement between Thermo Fisher Scientific Inc. and Marc N. Caspereffective February 26, 2013 (filed as Exhibit 10.3 to the Registrant’s Current Report on Form 8-K filed February 27, 2013 [File No. 1-8002] and incorporated in this document by reference).* | ||||||||
Form of | ||||||||
10.23 | ||||||||
Thermo Fisher Scientific Inc. 2013 Stock Incentive Plan (filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed May 23, 2013 [File No. 1-8002] and incorporated in this document by reference).* | ||||||||
Supplemental Executive Retirement Plan effective as of December 31, 2005, as amended and restated as of August 28, 2006 (filed as Exhibit 10.3 to Applera Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2006 [File No. 1-04389] and incorporated in this document by reference).* | ||||||||
Amendment to Supplemental Executive Retirement Plan, effective as of January 1, 2010 (filed as Exhibit 10.1 to Life Technologies Corporation’s Current Report on Form 8-K filed December 18, 2009 [File No. 000-25317] and incorporated in this document by reference).* | ||||||||
Noncompetition Agreement between the Registrant and Mark P. Stevenson, dated September 10, 2015 (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 26, 2015 [File No. 1-8002] and incorporated in this document by reference).* | ||||||||
Form of Thermo Fisher Scientific Inc.’s Nonstatutory Stock Option Agreement for Officers (filed as Exhibit 10.44 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2016 [File No. 1-8002] and incorporated in this document by reference).* | ||||||||
Patheon N.V. 2016 Omnibus Incentive Plan (filed as Exhibit 10.2 to the Current Report on Form 8-K filed by Patheon N.V. on July 26, 2016 [File No. 001-37837] and incorporated in this document by reference).* | ||||||||
Amendment to Patheon N.V. 2016 Omnibus Incentive Plan, dated March 7, 2017 (filed as | ||||||||
Amendment to Patheon N.V. 2016 Omnibus Incentive Plan, dated August 23, 2017 (filed as | ||||||||
Credit Agreement, dated | ||||||||
Form of Performance Restricted Stock Unit Agreement effective February 26, 2019 (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 30, 2019 [File No. 1-8002] and incorporated in this document by reference).* | ||||||||
10.33 | Form of Performance Restricted Stock Unit Agreement for Marc N. Casper effective February 26, 2019 (filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 30, 2019 [File No. 1-8002] and incorporated in this document by reference).* | |||||||
10.34 | Letter Agreement between the Registrant and Michel Lagarde dated August 28, 2017 (filed as Exhibit 10.39 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 [File No. 1-8002] and incorporated in this document by reference).* | |||||||
10.35 | Option Agreement Under the Patheon N.V. 2016 Omnibus Incentive Plan between Patheon N.V. and Michel Lagarde dated July 20, 2016 (filed as Exhibit 10.40 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 [File No. 1-8002] and incorporated in this document by reference).* | |||||||
10.36 | Option Agreement Under the Patheon N.V. 2016 Omnibus Incentive Plan between Patheon N.V. and Michel Lagarde dated March 23, 2017 (filed as Exhibit 10.42 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 [File No. 1-8002] and incorporated in this document by reference).* | |||||||
10.37 | Thermo Fisher Scientific Inc. Executive Severance Policy (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 29, 2019 [File No. 1-8002] and incorporated in this document by reference).* | |||||||
10.38 | Form of Noncompetition Agreement between the Registrant and certain key employees and executive officers (filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 29, 2019 [File No. 1-8002] and incorporated in this document by reference).* | |||||||
10.39 | Form of Thermo Fisher Scientific Inc.’s Performance Restricted Stock Unit Agreement effective as of February 25, 2020 (filed as Exhibit 10.45 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 [File No. 1-8002] and incorporated in this document by reference).* | |||||||
10.40 | Form of Thermo Fisher Scientific Inc.’s Restricted Stock Unit Agreement effective as of February 25, 2020 (filed as Exhibit 10.46 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 [File No. 1-8002] and incorporated in this document by reference).* |
Exhibit Number | Description of Exhibit | |||||||
10.41 | Form of Thermo Fisher Scientific Inc.’s Nonstatutory Stock Option Agreement for Officers effective as of February 25, 2020 (filed as Exhibit 10.47 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 [File No. 1-8002] and incorporated in this document by reference).* | |||||||
10.42 | Form of Performance Restricted Stock Unit Agreement between Thermo Fisher Scientific Inc. and Marc N. Casper effective as of February 25, 2020 (filed as Exhibit 10.48 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 [File No. 1-8002] and incorporated in this document by reference).* | |||||||
10.43 | Form of Restricted Stock Unit Agreement between Thermo Fisher Scientific Inc. and Marc N. Caspereffective as of February25, 2020 (filed as Exhibit 10.49 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 [File No. 1-8002] and incorporated in this document by reference).* | |||||||
10.44 | Form of Nonstatutory Stock Option Agreement between Thermo Fisher Scientific Inc. and Marc N. Casper effective as of February 25, 2020 (filed as Exhibit 10.50 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 [File No. 1-8002] and incorporated in this document by reference).* | |||||||
10.45 | Form of Restricted Stock Unit Agreement between Thermo Fisher Scientific Inc. and Marc N. Casper (filed as Exhibit 10.47 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2020 [File No. 1-8002] and incorporated in this document by reference).* | |||||||
10.46 | Form of Performance Restricted Stock Unit Agreement between Thermo Fisher Scientific Inc. and Marc N. Casper (filed as Exhibit 10.48 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2020 [File No. 1-8002] and incorporated in this document by reference).* | |||||||
10.47 | Form of Thermo Fisher Scientific Inc.’s Performance Restricted Stock Unit Agreement (filed as Exhibit 10.49 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2020 [File No. 1-8002] and incorporated in this document by reference).* | |||||||
10.48 | PPD, Inc. 2020 Omnibus Incentive Plan (filed as Exhibit 10.38 to PPD Inc.’s Form S-1/A filed January 27, 2020 [File No. 333-235860] and incorporated in this document by reference).* | |||||||
10.49 | ||||||||
21 | ||||||||
23.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.INS | XBRL Instance | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | XBRL Taxonomy Calculation Linkbase Document. | |||||||
101.DEF | XBRL Taxonomy Definition Linkbase Document. | |||||||
101.LAB | XBRL Taxonomy Label Linkbase Document. | |||||||
101.PRE | XBRL Taxonomy Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
Page | |||||
Report of Independent Registered Public Accounting Firm (PCAOB ID 238) | |||||
Consolidated Balance Sheet as of December 31, | |||||
Consolidated Statement of Income for the years ended December 31, | F- | ||||
Consolidated Statement of Comprehensive Income for the years ended December 31, | F- | ||||
Consolidated Statement of Cash Flows for the years ended December 31, | F- | ||||
Consolidated Statement of | F- | ||||
Notes to Consolidated Financial Statements | F- |
December 31, | December 31, | |||||||||||||
(In millions except share and per share amounts) | 2021 | 2020 | ||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 4,477 | $ | 10,325 | ||||||||||
Accounts receivable, less allowances of $150 and $135 | 7,977 | 5,741 | ||||||||||||
Inventories | 5,051 | 4,029 | ||||||||||||
Contract assets, net | 968 | 731 | ||||||||||||
Other current assets | 1,640 | 1,131 | ||||||||||||
Total current assets | 20,113 | 21,957 | ||||||||||||
Property, plant and equipment, net | 8,333 | 5,912 | ||||||||||||
Acquisition-related intangible assets, net | 20,113 | 12,685 | ||||||||||||
Other assets | 4,640 | 2,457 | ||||||||||||
Goodwill | 41,924 | 26,041 | ||||||||||||
Total assets | $ | 95,123 | $ | 69,052 | ||||||||||
Liabilities, redeemable noncontrolling interest and equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Short-term obligations and current maturities of long-term obligations | $ | 2,537 | $ | 2,628 | ||||||||||
Accounts payable | 2,867 | 2,175 | ||||||||||||
Accrued payroll and employee benefits | 2,427 | 1,916 | ||||||||||||
Contract liabilities | 2,655 | 1,271 | ||||||||||||
Other accrued expenses | 2,950 | 2,314 | ||||||||||||
Total current liabilities | 13,436 | 10,304 | ||||||||||||
Deferred income taxes | 3,837 | 1,794 | ||||||||||||
Other long-term liabilities | 4,540 | 3,330 | ||||||||||||
Long-term obligations | 32,333 | 19,107 | ||||||||||||
Commitments and contingencies (Note 12) | 0 | 0 | ||||||||||||
Redeemable noncontrolling interest | 122 | — | ||||||||||||
Equity: | ||||||||||||||
Thermo Fisher Scientific Inc. shareholders’ equity: | ||||||||||||||
Preferred stock, $100 par value, 50,000 shares authorized; none issued | 0 | 0 | ||||||||||||
Common stock, $1 par value, 1,200,000,000 shares authorized; 439,154,741 and 437,088,297 shares issued | 439 | 437 | ||||||||||||
Capital in excess of par value | 16,174 | 15,579 | ||||||||||||
Retained earnings | 35,431 | 28,116 | ||||||||||||
Treasury stock at cost, 44,720,112 and 40,417,789 shares | (8,922) | (6,818) | ||||||||||||
Accumulated other comprehensive items | (2,329) | (2,807) | ||||||||||||
Total Thermo Fisher Scientific Inc. shareholders’ equity | 40,793 | 34,507 | ||||||||||||
Noncontrolling interests | 62 | 10 | ||||||||||||
Total equity | 40,855 | 34,517 | ||||||||||||
Total liabilities, redeemable noncontrolling interest and equity | $ | 95,123 | $ | 69,052 |
December 31, | December 31, | |||||||
(In millions except share and per share amounts) | 2018 | 2017 | ||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 2,103 | $ | 1,335 | ||||
Accounts receivable, less allowances of $117 and $109 | 4,136 | 3,879 | ||||||
Inventories | 3,005 | 2,971 | ||||||
Other current assets | 1,381 | 1,236 | ||||||
Total current assets | 10,625 | 9,421 | ||||||
Property, Plant and Equipment, Net | 4,165 | 4,047 | ||||||
Acquisition-related Intangible Assets, Net | 14,978 | 16,684 | ||||||
Other Assets | 1,117 | 1,227 | ||||||
Goodwill | 25,347 | 25,290 | ||||||
Total Assets | $ | 56,232 | $ | 56,669 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current Liabilities: | ||||||||
Short-term obligations and current maturities of long-term obligations | $ | 1,271 | $ | 2,135 | ||||
Accounts payable | 1,615 | 1,428 | ||||||
Accrued payroll and employee benefits | 982 | 918 | ||||||
Contract liabilities | 809 | — | ||||||
Deferred revenue | — | 719 | ||||||
Other accrued expenses | 1,470 | 1,848 | ||||||
Total current liabilities | 6,147 | 7,048 | ||||||
Deferred Income Taxes | 2,265 | 2,766 | ||||||
Other Long-term Liabilities | 2,515 | 2,569 | ||||||
Long-term Obligations | 17,719 | 18,873 | ||||||
Commitments and Contingencies (Note 11) | ||||||||
Shareholders' Equity: | ||||||||
Preferred stock, $100 par value, 50,000 shares authorized; none issued | ||||||||
Common stock, $1 par value, 1,200,000,000 shares authorized; 431,566,561 and 428,327,873 shares issued | 432 | 428 | ||||||
Capital in excess of par value | 14,621 | 14,177 | ||||||
Retained earnings | 18,696 | 15,914 | ||||||
Treasury stock at cost, 29,444,882 and 27,013,311 shares | (3,665 | ) | (3,103 | ) | ||||
Accumulated other comprehensive items | (2,498 | ) | (2,003 | ) | ||||
Total shareholders' equity | 27,586 | 25,413 | ||||||
Total Liabilities and Shareholders' Equity | $ | 56,232 | $ | 56,669 |
Year Ended | ||||||||||||
December 31, | December 31, | December 31, | ||||||||||
(In millions except per share amounts) | 2018 | 2017 | 2016 | |||||||||
Revenues | ||||||||||||
Product revenues | $ | 18,868 | $ | 17,374 | $ | 15,712 | ||||||
Service revenues | 5,490 | 3,544 | 2,562 | |||||||||
Total revenues | 24,358 | 20,918 | 18,274 | |||||||||
Costs and Operating Expenses: | ||||||||||||
Cost of product revenues | 9,682 | 8,975 | 8,212 | |||||||||
Cost of service revenues | 3,819 | 2,495 | 1,690 | |||||||||
Selling, general and administrative expenses | 6,057 | 5,504 | 4,971 | |||||||||
Research and development expenses | 967 | 887 | 754 | |||||||||
Restructuring and other costs, net | 50 | 97 | 189 | |||||||||
Total costs and operating expenses | 20,575 | 17,958 | 15,816 | |||||||||
Operating Income | 3,783 | 2,960 | 2,458 | |||||||||
Other Expense, Net | (521 | ) | (531 | ) | (434 | ) | ||||||
Income from Continuing Operations Before Income Taxes | 3,262 | 2,429 | 2,024 | |||||||||
(Provision for) Benefit from Income Taxes | (324 | ) | (201 | ) | 1 | |||||||
Income from Continuing Operations | 2,938 | 2,228 | 2,025 | |||||||||
Loss from Discontinued Operations (net of income tax benefit of $0, $2 and $2) | — | (3 | ) | (3 | ) | |||||||
Net Income | $ | 2,938 | $ | 2,225 | $ | 2,022 | ||||||
Earnings per Share from Continuing Operations | ||||||||||||
Basic | $ | 7.31 | $ | 5.65 | $ | 5.13 | ||||||
Diluted | $ | 7.24 | $ | 5.60 | $ | 5.10 | ||||||
Earnings per Share | ||||||||||||
Basic | $ | 7.31 | $ | 5.64 | $ | 5.12 | ||||||
Diluted | $ | 7.24 | $ | 5.59 | $ | 5.09 | ||||||
Weighted Average Shares | ||||||||||||
Basic | 402 | 395 | 395 | |||||||||
Diluted | 406 | 398 | 397 |
Year Ended | ||||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||
(In millions except per share amounts) | 2021 | 2020 | 2019 | |||||||||||||||||
Revenues | ||||||||||||||||||||
Product revenues | $ | 30,361 | $ | 25,306 | $ | 19,496 | ||||||||||||||
Service revenues | 8,850 | 6,912 | 6,046 | |||||||||||||||||
Total revenues | 39,211 | 32,218 | 25,542 | |||||||||||||||||
Costs and operating expenses: | ||||||||||||||||||||
Cost of product revenues | 13,594 | 11,407 | 10,037 | |||||||||||||||||
Cost of service revenues | 5,979 | 4,807 | 4,177 | |||||||||||||||||
Selling, general and administrative expenses | 8,007 | 6,930 | 6,144 | |||||||||||||||||
Research and development expenses | 1,406 | 1,181 | 1,003 | |||||||||||||||||
Restructuring and other costs (income) | 197 | 99 | (413) | |||||||||||||||||
Total costs and operating expenses | 29,183 | 24,424 | 20,948 | |||||||||||||||||
Operating income | 10,028 | 7,794 | 4,594 | |||||||||||||||||
Interest income | 43 | 65 | 224 | |||||||||||||||||
Interest expense | (536) | (553) | (676) | |||||||||||||||||
Other income/(expense) | (694) | (76) | (70) | |||||||||||||||||
Income before income taxes | 8,841 | 7,230 | 4,072 | |||||||||||||||||
Provision for income taxes | (1,109) | (850) | (374) | |||||||||||||||||
Equity in (losses) earnings of unconsolidated entities | (4) | (3) | — | |||||||||||||||||
Net income | 7,728 | 6,377 | 3,698 | |||||||||||||||||
Less: net income attributable to noncontrolling interests and redeemable noncontrolling interest | 3 | 2 | 2 | |||||||||||||||||
Net income attributable to Thermo Fisher Scientific Inc. | $ | 7,725 | $ | 6,375 | $ | 3,696 | ||||||||||||||
Earnings per share attributable to Thermo Fisher Scientific Inc. | ||||||||||||||||||||
Basic | $ | 19.62 | $ | 16.09 | $ | 9.24 | ||||||||||||||
Diluted | $ | 19.46 | $ | 15.96 | $ | 9.17 | ||||||||||||||
Weighted average shares | ||||||||||||||||||||
Basic | 394 | 396 | 400 | |||||||||||||||||
Diluted | 397 | 399 | 403 |
Year Ended | ||||||||||||
December 31, | December 31, | December 31, | ||||||||||
(In millions) | 2018 | 2017 | 2016 | |||||||||
Comprehensive Income | ||||||||||||
Net Income | $ | 2,938 | $ | 2,225 | $ | 2,022 | ||||||
Other Comprehensive Items: | ||||||||||||
Currency translation adjustment (net of tax provision (benefit) of $84, ($145) and $0) | (434 | ) | 588 | (566 | ) | |||||||
Unrealized gains and losses on available-for-sale investments: | ||||||||||||
Unrealized holding losses arising during the period (net of tax benefit of $0, $0 and $0) | — | (1 | ) | (2 | ) | |||||||
Reclassification adjustment for (gains) losses included in net income (net of tax (provision) benefit of $0, ($1) and $0) | — | (1 | ) | 1 | ||||||||
Unrealized gains and losses on hedging instruments: | ||||||||||||
Unrealized losses on hedging instruments (net of tax benefit of $0, $0 and $22) | — | — | (37 | ) | ||||||||
Reclassification adjustment for losses included in net income (net of tax benefit of $3, $5 and $4) | 9 | 7 | 6 | |||||||||
Pension and other postretirement benefit liability adjustments: | ||||||||||||
Pension and other postretirement benefit liability adjustments arising during the period (net of tax provision (benefit) of $2, $7 and ($17)) | 3 | 23 | (47 | ) | ||||||||
Amortization of net loss and prior service benefit included in net periodic pension cost (net of tax benefit of $5, $5 and $2) | 15 | 17 | 6 | |||||||||
Total other comprehensive items | (407 | ) | 633 | (639 | ) | |||||||
Comprehensive Income | $ | 2,531 | $ | 2,858 | $ | 1,383 |
Year Ended | ||||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||
(In millions) | 2021 | 2020 | 2019 | |||||||||||||||||
Comprehensive income | ||||||||||||||||||||
Net income | $ | 7,728 | $ | 6,377 | $ | 3,698 | ||||||||||||||
Other comprehensive items: | ||||||||||||||||||||
Currency translation adjustment: | ||||||||||||||||||||
Currency translation adjustment (net of tax provision (benefit) of $231, $(221) and $25) | 373 | (118) | (106) | |||||||||||||||||
Reclassification adjustment for losses included in net income | — | — | 30 | |||||||||||||||||
Unrealized gains and losses on hedging instruments: | ||||||||||||||||||||
Unrealized losses on hedging instruments (net of tax benefit of $0, $20 and $12) | — | (65) | (38) | |||||||||||||||||
Reclassification adjustment for losses included in net income (net of tax benefit of $17, $14 and $6) | 56 | 45 | 19 | |||||||||||||||||
Pension and other postretirement benefit liability adjustments: | ||||||||||||||||||||
Pension and other postretirement benefit liability adjustments arising during the period (net of tax provision (benefit) of $11, $(1) and $(31)) | 36 | (8) | (93) | |||||||||||||||||
Amortization of net loss and prior service benefit included in net periodic pension cost (net of tax benefit of $6, $4 and $2) | 13 | 18 | 8 | |||||||||||||||||
Total other comprehensive items | 478 | (128) | (180) | |||||||||||||||||
Comprehensive income | 8,206 | 6,249 | 3,518 | |||||||||||||||||
Less: comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest | 2 | 2 | 3 | |||||||||||||||||
Comprehensive income attributable to Thermo Fisher Scientific Inc. | $ | 8,204 | $ | 6,247 | $ | 3,515 |
Year Ended | ||||||||||||
December 31, | December 31, | December 31, | ||||||||||
(In millions) | 2018 | 2017 | 2016 | |||||||||
Operating Activities | ||||||||||||
Net income | $ | 2,938 | $ | 2,225 | $ | 2,022 | ||||||
Loss from discontinued operations | — | 3 | 3 | |||||||||
Income from continuing operations | 2,938 | 2,228 | 2,025 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 2,267 | 2,033 | 1,758 | |||||||||
Change in deferred income taxes | (379 | ) | (1,098 | ) | (620 | ) | ||||||
Non-cash stock-based compensation | 181 | 159 | 133 | |||||||||
Other non-cash expenses, net | 106 | 190 | 142 | |||||||||
Changes in assets and liabilities, excluding the effects of acquisitions: | ||||||||||||
Accounts receivable | (366 | ) | (362 | ) | (352 | ) | ||||||
Inventories | (324 | ) | (81 | ) | 98 | |||||||
Other assets | 54 | (153 | ) | (153 | ) | |||||||
Accounts payable | 201 | 274 | 56 | |||||||||
Other liabilities | (42 | ) | 1,016 | 216 | ||||||||
Contributions to retirement plans | (93 | ) | (200 | ) | (43 | ) | ||||||
Net cash provided by continuing operations | 4,543 | 4,006 | 3,260 | |||||||||
Net cash used in discontinued operations | — | (1 | ) | (2 | ) | |||||||
Net cash provided by operating activities | 4,543 | 4,005 | 3,258 | |||||||||
Investing Activities | ||||||||||||
Acquisitions, net of cash acquired | (536 | ) | (7,226 | ) | (5,178 | ) | ||||||
Purchase of property, plant and equipment | (758 | ) | (508 | ) | (444 | ) | ||||||
Proceeds from sale of property, plant and equipment | 50 | 7 | 26 | |||||||||
Other investing activities, net | (9 | ) | (2 | ) | 76 | |||||||
Net cash used in investing activities | (1,253 | ) | (7,729 | ) | (5,520 | ) | ||||||
Financing Activities | ||||||||||||
Net proceeds from issuance of debt | 690 | 6,459 | 7,604 | |||||||||
Repayment of debt | (2,052 | ) | (3,299 | ) | (4,334 | ) | ||||||
Proceeds from issuance of commercial paper | 5,060 | 8,380 | 9,182 | |||||||||
Repayments of commercial paper | (5,254 | ) | (8,514 | ) | (8,278 | ) | ||||||
Purchases of company common stock | (500 | ) | (750 | ) | (1,250 | ) | ||||||
Dividends paid | (266 | ) | (237 | ) | (238 | ) | ||||||
Net proceeds from issuance of company common stock | — | 1,690 | — | |||||||||
Net proceeds from issuance of company common stock under employee stock plans | 136 | 128 | 87 | |||||||||
Other financing activities | (51 | ) | (3 | ) | (14 | ) | ||||||
Net cash (used in) provided by financing activities | (2,237 | ) | 3,854 | 2,759 | ||||||||
Exchange Rate Effect on Cash | (297 | ) | 420 | (152 | ) | |||||||
Increase in Cash, Cash Equivalents and Restricted Cash | 756 | 550 | 345 | |||||||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 1,361 | 811 | 466 | |||||||||
Cash, Cash Equivalents and Restricted Cash at End of Period | $ | 2,117 | $ | 1,361 | $ | 811 |
Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Items | Total Shareholders' Equity | |||||||||||||||||||||||||
(In millions) | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
Balance at December 31, 2015 | 412 | $ | 412 | $ | 11,801 | $ | 12,142 | 12 | $ | (1,008 | ) | $ | (1,997 | ) | $ | 21,350 | ||||||||||||||
Issuance of shares under employees' and directors' stock plans | 3 | 3 | 153 | — | 1 | (48 | ) | — | 108 | |||||||||||||||||||||
Stock-based compensation | — | — | 133 | — | — | — | — | 133 | ||||||||||||||||||||||
Tax benefit related to employees' and directors' stock plans | — | — | 53 | — | — | — | — | 53 | ||||||||||||||||||||||
Purchases of company common stock | — | — | — | — | 9 | (1,250 | ) | — | (1,250 | ) | ||||||||||||||||||||
Dividends declared ($0.60 per share) | — | — | — | (237 | ) | — | — | — | (237 | ) | ||||||||||||||||||||
Net income | — | — | — | 2,022 | — | — | — | 2,022 | ||||||||||||||||||||||
Other comprehensive items | — | — | — | — | — | — | (639 | ) | (639 | ) | ||||||||||||||||||||
Balance at December 31, 2016 | 415 | 415 | 12,140 | 13,927 | 22 | (2,306 | ) | (2,636 | ) | 21,540 | ||||||||||||||||||||
Issuance of shares under employees' and directors' stock plans | 3 | 3 | 196 | — | — | (47 | ) | — | 152 | |||||||||||||||||||||
Issuance of shares | 10 | 10 | 1,680 | — | — | — | — | 1,690 | ||||||||||||||||||||||
Stock-based compensation | — | — | 159 | — | — | — | — | 159 | ||||||||||||||||||||||
Purchases of company common stock | — | — | — | — | 5 | (750 | ) | — | (750 | ) | ||||||||||||||||||||
Dividends declared ($0.60 per share) | — | — | — | (238 | ) | — | — | — | (238 | ) | ||||||||||||||||||||
Net income | — | — | — | 2,225 | — | — | — | 2,225 | ||||||||||||||||||||||
Other comprehensive items | — | — | — | — | — | — | 633 | 633 | ||||||||||||||||||||||
Other | — | — | 2 | — | — | — | — | 2 | ||||||||||||||||||||||
Balance at December 31, 2017 | 428 | 428 | 14,177 | 15,914 | 27 | (3,103 | ) | (2,003 | ) | 25,413 | ||||||||||||||||||||
Cumulative effect of accounting changes | — | — | — | 118 | — | — | (88 | ) | 30 | |||||||||||||||||||||
Issuance of shares under employees' and directors' stock plans | 4 | 4 | 236 | — | — | (62 | ) | — | 178 | |||||||||||||||||||||
Stock-based compensation | — | — | 181 | — | — | — | — | 181 | ||||||||||||||||||||||
Purchases of company common stock | — | — | — | — | 2 | (500 | ) | — | (500 | ) | ||||||||||||||||||||
Dividends declared ($0.68 per share) | — | — | — | (274 | ) | — | — | — | (274 | ) | ||||||||||||||||||||
Net income | — | — | — | 2,938 | — | — | — | 2,938 | ||||||||||||||||||||||
Other comprehensive items | — | — | — | — | — | — | (407 | ) | (407 | ) | ||||||||||||||||||||
Other | — | — | 27 | — | — | — | — | 27 | ||||||||||||||||||||||
Balance at December 31, 2018 | 432 | $ | 432 | $ | 14,621 | $ | 18,696 | 29 | $ | (3,665 | ) | $ | (2,498 | ) | $ | 27,586 |
Year Ended | ||||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||
(In millions) | 2021 | 2020 | 2019 | |||||||||||||||||
Operating activities | ||||||||||||||||||||
Net income | $ | 7,728 | $ | 6,377 | $ | 3,698 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation of property, plant and equipment | 831 | 658 | 564 | |||||||||||||||||
Amortization of acquisition-related intangible assets | 1,761 | 1,667 | 1,713 | |||||||||||||||||
Change in deferred income taxes | (647) | (552) | (302) | |||||||||||||||||
Gain on sales of businesses | — | — | (482) | |||||||||||||||||
Stock-based compensation | 230 | 196 | 181 | |||||||||||||||||
Loss on early extinguishment of debt | 767 | — | 184 | |||||||||||||||||
Other non-cash expenses | 190 | 338 | 82 | |||||||||||||||||
Changes in assets and liabilities, excluding the effects of acquisitions and disposition: | ||||||||||||||||||||
Accounts receivable | (204) | (1,302) | (225) | |||||||||||||||||
Inventories | (1,065) | (508) | (458) | |||||||||||||||||
Accounts payable | 479 | 59 | 266 | |||||||||||||||||
Contributions to retirement plans | (34) | (96) | (50) | |||||||||||||||||
Other | (724) | 1,452 | (198) | |||||||||||||||||
Net cash provided by operating activities | 9,312 | 8,289 | 4,973 | |||||||||||||||||
Investing activities | ||||||||||||||||||||
Acquisitions, net of cash acquired | (19,395) | (38) | (1,843) | |||||||||||||||||
Proceeds from sale of business, net of cash divested | — | — | 1,128 | |||||||||||||||||
Purchase of property, plant and equipment | (2,523) | (1,474) | (926) | |||||||||||||||||
Proceeds from sale of property, plant and equipment | 20 | 8 | 36 | |||||||||||||||||
Other investing activities, net | (34) | (6) | 118 | |||||||||||||||||
Net cash used in investing activities | (21,932) | (1,510) | (1,487) | |||||||||||||||||
Financing activities | ||||||||||||||||||||
Net proceeds from issuance of debt | 18,137 | 3,464 | 5,638 | |||||||||||||||||
Repayment of debt | (11,738) | (710) | (6,355) | |||||||||||||||||
Proceeds from issuance of commercial paper | 2,512 | 383 | 2,781 | |||||||||||||||||
Repayments of commercial paper | — | (387) | (3,464) | |||||||||||||||||
Purchases of company common stock | (2,000) | (1,500) | (1,500) | |||||||||||||||||
Dividends paid | (395) | (337) | (297) | |||||||||||||||||
Net proceeds from issuance of company common stock under employee stock plans | 156 | 196 | 153 | |||||||||||||||||
Other financing activities, net | (91) | (150) | (74) | |||||||||||||||||
Net cash provided by (used in) financing activities | 6,581 | 959 | (3,118) | |||||||||||||||||
Exchange rate effect on cash | 194 | 176 | (63) | |||||||||||||||||
(Decrease) increase in cash, cash equivalents and restricted cash | (5,845) | 7,914 | 305 | |||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 10,336 | 2,422 | 2,117 | |||||||||||||||||
Cash, cash equivalents and restricted cash at end of year | $ | 4,491 | $ | 10,336 | $ | 2,422 |
Redeemable Noncontrolling Interest | Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Items | Total Thermo Fisher Scientific Inc. Shareholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | — | 432 | $ | 432 | $ | 14,621 | $ | 18,696 | 29 | $ | (3,665) | $ | (2,498) | $ | 27,586 | $ | 8 | $ | 27,594 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of accounting changes | — | — | — | — | 4 | — | — | — | 4 | — | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares under employees' and directors' stock plans | — | 2 | 2 | 262 | — | 1 | (71) | — | 193 | — | 193 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | 181 | — | — | — | — | 181 | — | 181 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of company common stock | — | — | — | — | — | 6 | (1,500) | — | (1,500) | — | (1,500) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.76 per share) | — | — | — | — | (304) | — | — | — | (304) | — | (304) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 3,696 | — | — | — | 3,696 | 2 | 3,698 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive items | — | — | — | — | — | — | — | (181) | (181) | 1 | (180) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from (distributions to) noncontrolling interests | — | — | — | — | — | — | — | — | — | (2) | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | — | 434 | 434 | 15,064 | 22,092 | 36 | (5,236) | (2,679) | 29,675 | 9 | 29,684 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of accounting changes | — | — | — | — | (1) | — | — | — | (1) | — | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares under employees' and directors' stock plans | — | 3 | 3 | 319 | — | — | (82) | — | 240 | — | 240 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | 196 | — | — | — | — | 196 | — | 196 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of company common stock | — | — | — | — | — | 4 | (1,500) | — | (1,500) | — | (1,500) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.88 per share) | — | — | — | — | (350) | — | — | — | (350) | — | (350) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 6,375 | — | — | — | 6,375 | 2 | 6,377 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive items | — | — | — | — | — | — | — | (128) | (128) | — | (128) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from (distributions to) noncontrolling interests | — | — | — | — | — | — | — | — | — | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | — | 437 | 437 | 15,579 | 28,116 | 40 | (6,818) | (2,807) | 34,507 | 10 | 34,517 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares under employees' and directors' stock plans | — | 2 | 2 | 324 | — | 1 | (104) | — | 222 | — | 222 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | 230 | — | — | — | — | 230 | — | 230 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of company common stock | — | — | — | — | — | 4 | (2,000) | — | (2,000) | — | (2,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($1.04 per share) | — | — | — | — | (410) | — | — | — | (410) | — | (410) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognition upon acquisition | 122 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 1 | — | — | — | 7,725 | — | — | — | 7,725 | 2 | 7,727 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive items | (1) | — | — | — | — | — | — | 478 | 478 | — | 478 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from (distributions to) noncontrolling interests | — | — | — | — | — | — | — | — | — | 50 | 50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | 41 | — | — | — | — | 41 | — | 41 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 122 | 439 | $ | 439 | $ | 16,174 | $ | 35,431 | 45 | $ | (8,922) | $ | (2,329) | $ | 40,793 | $ | 62 | $ | 40,855 |
Year Ended December 31, | ||||||||||||
(In millions) | 2018 | 2017 | 2016 | |||||||||
Beginning Balance | $ | 109 | $ | 77 | $ | 70 | ||||||
Provision charged to expense | 18 | 32 | 16 | |||||||||
Accounts written off | (12 | ) | (10 | ) | (9 | ) | ||||||
Acquisitions, currency translation and other | 2 | 10 | — | |||||||||
Ending Balance | $ | 117 | $ | 109 | $ | 77 |
December 31, | January 1, | |||||||
(In millions) | 2018 | 2018 | ||||||
Current Contract Assets, Net | $ | 459 | $ | 329 | ||||
Noncurrent Contract Assets, Net | 15 | 18 | ||||||
Current Contract Liabilities | 809 | 736 | ||||||
Noncurrent Contract Liabilities | 355 | 322 |
Year Ended | ||||||||
December 31, | December 31, | |||||||
(In millions) | 2018 | 2017 | ||||||
Beginning Balance | $ | 87 | $ | 78 | ||||
Provision charged to income | 121 | 110 | ||||||
Usage | (109 | ) | (101 | ) | ||||
Adjustments to previously provided warranties, net | (4 | ) | (4 | ) | ||||
Currency translation | (3 | ) | 4 | |||||
Ending Balance | $ | 92 | $ | 87 |
December 31, | December 31, | |||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Raw materials | $ | 1,922 | $ | 1,305 | ||||||||||
Work in process | 676 | 540 | ||||||||||||
Finished goods | 2,453 | 2,184 | ||||||||||||
Inventories | $ | 5,051 | $ | 4,029 |
December 31, | December 31, | |||||||
(In millions) | 2018 | 2017 | ||||||
Raw Materials | $ | 812 | $ | 708 | ||||
Work in Process | 430 | 505 | ||||||
Finished Goods | 1,763 | 1,758 | ||||||
Inventories | $ | 3,005 | $ | 2,971 |
December 31, | December 31, | |||||||
(In millions) | 2018 | 2017 | ||||||
Land | $ | 397 | $ | 401 | ||||
Buildings and Improvements | 1,729 | 1,662 | ||||||
Machinery, Equipment and Leasehold Improvements | 4,694 | 4,276 | ||||||
Property, Plant and Equipment, at Cost | 6,820 | 6,339 | ||||||
Less: Accumulated Depreciation and Amortization | 2,655 | 2,292 | ||||||
Property, Plant and Equipment, Net | $ | 4,165 | $ | 4,047 |
December 31, | December 31, | |||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Land | $ | 431 | $ | 410 | ||||||||||
Buildings and improvements | 2,575 | 2,192 | ||||||||||||
Machinery, equipment and leasehold improvements | 9,587 | 6,975 | ||||||||||||
Property, plant and equipment, at cost | 12,593 | 9,577 | ||||||||||||
Less: Accumulated depreciation and amortization | 4,260 | 3,665 | ||||||||||||
Property, plant and equipment, net | $ | 8,333 | $ | 5,912 |
Balance at December 31, 2021 | Balance at December 31, 2020 | |||||||||||||||||||||||||||||||||||||
(In millions) | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||||
Definite lived: | ||||||||||||||||||||||||||||||||||||||
Customer relationships | $ | 22,802 | $ | (7,792) | $ | 15,010 | $ | 16,593 | $ | (7,450) | $ | 9,143 | ||||||||||||||||||||||||||
Product technology | 6,041 | (3,977) | 2,064 | 5,523 | (3,532) | 1,991 | ||||||||||||||||||||||||||||||||
Tradenames | 1,722 | (919) | 803 | 1,213 | (897) | 316 | ||||||||||||||||||||||||||||||||
Backlog | 1,060 | (59) | 1,001 | — | — | — | ||||||||||||||||||||||||||||||||
31,625 | (12,747) | 18,878 | 23,329 | (11,879) | 11,450 | |||||||||||||||||||||||||||||||||
Indefinite lived: | ||||||||||||||||||||||||||||||||||||||
Tradenames | 1,235 | N/A | 1,235 | 1,235 | N/A | 1,235 | ||||||||||||||||||||||||||||||||
Acquisition-related intangible assets | $ | 32,860 | $ | (12,747) | $ | 20,113 | $ | 24,564 | $ | (11,879) | $ | 12,685 |
Balance at December 31, 2018 | Balance at December 31, 2017 | |||||||||||||||||||||||
(In millions) | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||
Definite Lived: | ||||||||||||||||||||||||
Customer relationships | $ | 17,120 | $ | (6,833 | ) | $ | 10,287 | $ | 17,356 | $ | (5,902 | ) | $ | 11,454 | ||||||||||
Product technology | 6,036 | (3,178 | ) | 2,858 | 6,046 | (2,811 | ) | 3,235 | ||||||||||||||||
Tradenames | 1,495 | (929 | ) | 566 | 1,538 | (817 | ) | 721 | ||||||||||||||||
Other | 33 | (33 | ) | — | 34 | (34 | ) | — | ||||||||||||||||
24,684 | (10,973 | ) | 13,711 | 24,974 | (9,564 | ) | 15,410 | |||||||||||||||||
Indefinite Lived: | ||||||||||||||||||||||||
Tradenames | 1,235 | N/A | 1,235 | 1,235 | N/A | 1,235 | ||||||||||||||||||
In-process research and development | 32 | N/A | 32 | 39 | N/A | 39 | ||||||||||||||||||
1,267 | N/A | 1,267 | 1,274 | N/A | 1,274 | |||||||||||||||||||
Acquisition-related Intangible Assets | $ | 25,951 | $ | (10,973 | ) | $ | 14,978 | $ | 26,248 | $ | (9,564 | ) | $ | 16,684 |
(In millions) | ||||
2019 | $ | 1,691 | ||
2020 | 1,610 | |||
2021 | 1,496 | |||
2022 | 1,348 | |||
2023 | 1,273 | |||
2024 and Thereafter | 6,293 | |||
Estimated Future Amortization Expense of Definite-lived Intangible Assets | $ | 13,711 |
(In millions) | ||||||||
2022 | $ | 2,489 | ||||||
2023 | 2,358 | |||||||
2024 | 1,992 | |||||||
2025 | 1,669 | |||||||
2026 | 1,392 | |||||||
2027 and thereafter | 8,978 | |||||||
Estimated future amortization expense of definite-lived intangible assets | $ | 18,878 |
(In millions) | Life Sciences Solutions | Analytical Instruments | Specialty Diagnostics | Laboratory Products and Biopharma Services | Total | |||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | 8,544 | $ | 4,928 | $ | 3,184 | $ | 9,058 | $ | 25,714 | ||||||||||||||||||||||
Acquisition | 35 | — | — | — | 35 | |||||||||||||||||||||||||||
Currency translation | 11 | 151 | 186 | (56) | 292 | |||||||||||||||||||||||||||
Balance at December 31, 2020 | 8,590 | 5,079 | 3,370 | 9,002 | 26,041 | |||||||||||||||||||||||||||
Acquisitions | 1,560 | 56 | 8 | 14,400 | 16,024 | |||||||||||||||||||||||||||
Currency translation | (7) | (92) | (101) | 59 | (141) | |||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 10,143 | $ | 5,043 | $ | 3,277 | $ | 23,461 | $ | 41,924 |
(In millions) | Life Sciences Solutions | Analytical Instruments | Specialty Diagnostics | Laboratory Products and Services | Total | |||||||||||||||
Balance at December 31, 2016 | $ | 8,246 | $ | 4,686 | $ | 3,659 | $ | 4,737 | $ | 21,328 | ||||||||||
Acquisitions | 136 | 99 | 27 | 3,256 | 3,518 | |||||||||||||||
Finalization of purchase price allocations for 2016 acquisitions | (4 | ) | 68 | — | (1 | ) | 63 | |||||||||||||
Currency translation | 14 | 174 | 171 | 25 | 384 | |||||||||||||||
Other | (1 | ) | — | (1 | ) | (1 | ) | (3 | ) | |||||||||||
Balance at December 31, 2017 | 8,391 | 5,027 | 3,856 | 8,016 | 25,290 | |||||||||||||||
Acquisitions | 161 | — | — | — | 161 | |||||||||||||||
Finalization of purchase price allocations for 2017 acquisitions | — | 1 | — | 20 | 21 | |||||||||||||||
Currency translation | (5 | ) | (77 | ) | (121 | ) | 79 | (124 | ) | |||||||||||
Other | 1 | (1 | ) | — | (1 | ) | (1 | ) | ||||||||||||
Balance at December 31, 2018 | $ | 8,548 | $ | 4,950 | $ | 3,735 | $ | 8,114 | $ | 25,347 |
(In millions) | 2017 | 2016 | ||||||
Increase (Decrease) in Total Costs and Operating Expenses (principally Selling, General and Administrative Expenses) | $ | 8 | $ | (9 | ) | |||
(Decrease) Increase in Operating Income | (8 | ) | 9 | |||||
Increase (Decrease) in Other Income (Expense) | 8 | (9 | ) |
(In millions) | December 31, 2017 as Reported | Impact of Adopting New Revenue Guidance | Impact of Adopting New Equity Investment Guidance | Impact of Adopting New Intra-entity Tax Guidance | Impact of Adopting New Hedge Accounting Guidance | Impact of Adopting New Tax Effects on Items in AOCI Guidance | January 1, 2018 as Adopted | |||||||||||||||||||||
Accounts Receivable, Less Allowances | $ | 3,879 | $ | (8 | ) | $ | — | $ | — | $ | — | $ | — | $ | 3,871 | |||||||||||||
Inventories | 2,971 | (252 | ) | — | — | — | — | 2,719 | ||||||||||||||||||||
Other Current Assets | 1,236 | 229 | — | — | — | — | 1,465 | |||||||||||||||||||||
Other Assets | 1,227 | 18 | — | (77 | ) | — | — | 1,168 | ||||||||||||||||||||
Deferred Revenue | 719 | (719 | ) | — | — | — | — | — | ||||||||||||||||||||
Contract Liabilities | — | 736 | — | — | — | — | 736 | |||||||||||||||||||||
Other Accrued Expenses | 1,848 | (153 | ) | — | — | — | — | 1,695 | ||||||||||||||||||||
Deferred Income Taxes | 2,766 | — | — | (57 | ) | — | 2 | 2,711 | ||||||||||||||||||||
Other Long-term Liabilities | 2,569 | 74 | — | — | — | — | 2,643 | |||||||||||||||||||||
Long-term Obligations | 18,873 | — | — | — | (3 | ) | — | 18,870 | ||||||||||||||||||||
Retained Earnings | 15,914 | 49 | (1 | ) | (20 | ) | 3 | 87 | 16,032 | |||||||||||||||||||
Accumulated Other Comprehensive Items | (2,003 | ) | — | 1 | — | — | (89 | ) | (2,091 | ) |
(In millions) | PPD | PeproTech | European Viral Vector Business | Mesa Biotech | Lengnau biologics manufacturing facility | Other | ||||||||||||||||||||||||||||||||
Purchase price | ||||||||||||||||||||||||||||||||||||||
Cash paid | $ | 17,237 | $ | 1,947 | $ | 848 | $ | 421 | $ | 17 | $ | 298 | ||||||||||||||||||||||||||
Fair value of equity awards exchanged | 43 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Fair value of contingent consideration | — | — | — | 65 | 1 | 117 | ||||||||||||||||||||||||||||||||
Cash acquired | (1,244) | (83) | (18) | (14) | — | (13) | ||||||||||||||||||||||||||||||||
$ | 16,036 | $ | 1,864 | $ | 830 | $ | 472 | $ | 18 | $ | 402 | |||||||||||||||||||||||||||
Net assets acquired | ||||||||||||||||||||||||||||||||||||||
Current assets | $ | 2,510 | $ | 63 | $ | 39 | $ | 54 | $ | — | $ | 12 | ||||||||||||||||||||||||||
Property, plant and equipment | 562 | 18 | 59 | 2 | 92 | 2 | ||||||||||||||||||||||||||||||||
Definite-lived intangible assets: | ||||||||||||||||||||||||||||||||||||||
Customer relationships | 6,264 | 514 | 302 | — | — | 2 | ||||||||||||||||||||||||||||||||
Product technology | — | 282 | 25 | 279 | — | 224 | ||||||||||||||||||||||||||||||||
Tradenames | 603 | — | — | 2 | — | 2 | ||||||||||||||||||||||||||||||||
Backlog | 1,060 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Goodwill | 13,781 | 1,190 | 600 | 237 | 18 | 198 | ||||||||||||||||||||||||||||||||
Other assets | 1,108 | 11 | 3 | 3 | 376 | 2 | ||||||||||||||||||||||||||||||||
Contract liabilities | (1,570) | — | (59) | — | — | (1) | ||||||||||||||||||||||||||||||||
Deferred tax assets (liabilities) | (1,803) | (193) | (80) | (72) | — | (28) | ||||||||||||||||||||||||||||||||
Finance lease liabilities | (86) | — | (24) | — | (82) | — | ||||||||||||||||||||||||||||||||
Debt assumed | (4,299) | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Other liabilities assumed | (1,972) | (21) | (35) | (33) | (386) | (11) | ||||||||||||||||||||||||||||||||
Redeemable noncontrolling interest | (122) | — | — | — | — | — | ||||||||||||||||||||||||||||||||
$ | 16,036 | $ | 1,864 | $ | 830 | $ | 472 | $ | 18 | $ | 402 |
(In millions) | Advanced Bioprocessing business | IntegenX | Total | |||||||||
Purchase Price | ||||||||||||
Cash paid | $ | 476 | $ | 55 | $ | 531 | ||||||
Fair value of contingent consideration | — | 11 | 11 | |||||||||
Purchase price payable | 1 | — | 1 | |||||||||
Cash acquired | — | (1 | ) | (1 | ) | |||||||
$ | 477 | $ | 65 | $ | 542 | |||||||
Net Assets Acquired | ||||||||||||
Current assets | $ | 53 | $ | 4 | $ | 57 | ||||||
Property, plant and equipment | 42 | — | 42 | |||||||||
Definite-lived intangible assets: | ||||||||||||
Customer relationships | 108 | — | 108 | |||||||||
Product technology | 132 | 31 | 163 | |||||||||
Tradenames and other | 8 | — | 8 | |||||||||
Indefinite-lived intangible assets: | ||||||||||||
In-process research and development | — | 10 | 10 | |||||||||
Goodwill | 146 | 15 | 161 | |||||||||
Other assets | — | 14 | 14 | |||||||||
Deferred tax liabilities | (7 | ) | — | (7 | ) | |||||||
Other liabilities assumed | (5 | ) | (9 | ) | (14 | ) | ||||||
$ | 477 | $ | 65 | $ | 542 |
(In millions) | Patheon | Core Informatics | Finesse Solutions | Other | Total | |||||||||||||||
Purchase Price | ||||||||||||||||||||
Cash paid | $ | 6,911 | $ | 95 | $ | 223 | $ | 103 | $ | 7,332 | ||||||||||
Debt assumed | 488 | — | — | — | 488 | |||||||||||||||
Fair value of contingent consideration | — | 9 | — | 8 | 17 | |||||||||||||||
Fair value of equity awards exchanged | 6 | — | — | — | 6 | |||||||||||||||
Fair value of previously held interest | — | — | — | 11 | 11 | |||||||||||||||
Purchase price payable | — | — | — | 1 | 1 | |||||||||||||||
Cash acquired | (47 | ) | (10 | ) | (2 | ) | (13 | ) | (72 | ) | ||||||||||
$ | 7,358 | $ | 94 | $ | 221 | $ | 110 | $ | 7,783 | |||||||||||
Net Assets Acquired | ||||||||||||||||||||
Current assets | $ | 1,062 | $ | 2 | $ | 17 | $ | 20 | $ | 1,101 | ||||||||||
Property, plant and equipment | 1,242 | — | 1 | 3 | 1,246 | |||||||||||||||
Definite-lived intangible assets: | ||||||||||||||||||||
Customer relationships | 3,641 | 6 | 68 | 16 | 3,731 | |||||||||||||||
Product technology | — | 29 | 32 | 35 | 96 | |||||||||||||||
Tradenames and other | 112 | 3 | 2 | — | 117 | |||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||
In-process research and development | — | — | 2 | — | 2 | |||||||||||||||
Goodwill | 3,276 | 63 | 136 | 64 | 3,539 | |||||||||||||||
Other assets | 54 | — | — | — | 54 | |||||||||||||||
Deferred tax liabilities | (1,093 | ) | (4 | ) | (22 | ) | (14 | ) | (1,133 | ) | ||||||||||
Other liabilities assumed | (936 | ) | (5 | ) | (15 | ) | (14 | ) | (970 | ) | ||||||||||
$ | 7,358 | $ | 94 | $ | 221 | $ | 110 | $ | 7,783 |
(In millions) | FEI | Affymetrix | Other | Total | ||||||||||||
Purchase Price | ||||||||||||||||
Cash paid | $ | 4,451 | $ | 1,166 | $ | 32 | $ | 5,649 | ||||||||
Debt assumed | — | 254 | 1 | 255 | ||||||||||||
Cash acquired | (369 | ) | (78 | ) | — | (447 | ) | |||||||||
$ | 4,082 | $ | 1,342 | $ | 33 | $ | 5,457 | |||||||||
Net Assets Acquired | ||||||||||||||||
Current assets | $ | 619 | $ | 161 | $ | 3 | $ | 783 | ||||||||
Property, plant and equipment | 153 | 19 | — | 172 | ||||||||||||
Definite-lived intangible assets: | ||||||||||||||||
Customer relationships | 1,051 | 501 | 9 | 1,561 | ||||||||||||
Product technology | 740 | 253 | 7 | 1,000 | ||||||||||||
Tradenames and other | 42 | 46 | — | 88 | ||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||
In-process research and development | 105 | 14 | — | 119 | ||||||||||||
Goodwill | 2,125 | 615 | 16 | 2,756 | ||||||||||||
Other assets | 72 | 8 | — | 80 | ||||||||||||
Liabilities assumed | (825 | ) | (275 | ) | (2 | ) | (1,102 | ) | ||||||||
$ | 4,082 | $ | 1,342 | $ | 33 | $ | 5,457 |
Year Ended | ||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
(In millions) | 2017 | 2016 | (In millions) | 2021 | 2020 | |||||||||||||||||
Revenues | $ | 22,144 | $ | 20,807 | Revenues | $ | 44,886 | $ | 36,887 | |||||||||||||
Net Income | $ | 2,258 | $ | 1,791 | ||||||||||||||||||
Net income attributable to Thermo Fisher Scientific Inc. | Net income attributable to Thermo Fisher Scientific Inc. | $ | 7,369 | $ | 5,361 |
(In millions) | December 31, 2018 | |||
Current Assets | $ | 81 | ||
Long-term Assets | 528 | |||
Current Liabilities | 34 | |||
Long-term Liabilities | 24 |
(In millions) | Brammer Bio | Other | ||||||||||||
Purchase price | ||||||||||||||
Cash paid | $ | 1,710 | $ | 169 | ||||||||||
Cash acquired | (36) | — | ||||||||||||
$ | 1,674 | $ | 169 | |||||||||||
Net assets acquired | ||||||||||||||
Current assets | $ | 52 | $ | 58 | ||||||||||
Property, plant and equipment | 147 | 102 | ||||||||||||
Definite-lived intangible assets: | ||||||||||||||
Customer relationships | 744 | — | ||||||||||||
Product technology | 65 | 7 | ||||||||||||
Tradenames | 7 | — | ||||||||||||
Goodwill | 938 | 9 | ||||||||||||
Other assets | 49 | — | ||||||||||||
Contract liabilities | (110) | — | ||||||||||||
Deferred tax liabilities | (110) | (6) | ||||||||||||
Other liabilities assumed | (108) | (1) | ||||||||||||
$ | 1,674 | $ | 169 |
On June 28, 2019, the company sold its Anatomical Pathology business to PHC Holdings Corporation for $1.13 billion, net of cash divested. The business was part of the Specialty Diagnostics segment. The sale of this business resulted in a pre-tax gain of approximately $478 million, included in restructuring and other (income) costs, net. Revenues in 2019, through the date of sale, of the business sold were approximately $115 million, net of retained sales through the company's healthcare market and research and safety market channels. Note 3. Revenues and Contract-related Balances |
(In millions) | 2021 | 2020 | 2019 | |||||||||||||||||
Revenues | ||||||||||||||||||||
Consumables | $ | 22,608 | $ | 18,527 | $ | 13,109 | ||||||||||||||
Instruments | 7,753 | 6,779 | 6,387 | |||||||||||||||||
Services | 8,850 | 6,912 | 6,046 | |||||||||||||||||
Consolidated revenues | $ | 39,211 | $ | 32,218 | $ | 25,542 |
(In millions) | 2018 | |||
Revenues | ||||
Consumables | $ | 12,576 | ||
Instruments | 6,292 | |||
Services | 5,490 | |||
Consolidated revenues | $ | 24,358 |
(In millions) | 2021 | 2020 | 2019 | |||||||||||||||||
Revenues | ||||||||||||||||||||
North America | $ | 19,659 | $ | 17,081 | $ | 12,896 | ||||||||||||||
Europe | 11,134 | 8,284 | 6,358 | |||||||||||||||||
Asia-Pacific | 7,218 | 5,822 | 5,524 | |||||||||||||||||
Other regions | 1,200 | 1,031 | 764 | |||||||||||||||||
Consolidated revenues | $ | 39,211 | $ | 32,218 | $ | 25,542 |
(In millions) | 2018 | |||
Revenues (a) | ||||
North America | $ | 12,143 | ||
Europe | 6,215 | |||
Asia-Pacific | 5,250 | |||
Other regions | 750 | |||
Consolidated revenues | $ | 24,358 |
December 31, | December 31, | |||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Current contract assets, net | $ | 968 | $ | 731 | ||||||||||
Noncurrent contract assets, net | 9 | 11 | ||||||||||||
Current contract liabilities | 2,655 | 1,271 | ||||||||||||
Noncurrent contract liabilities | 1,238 | 763 |
Substantially all of the current contract liabilities balance at December 31, 2020 and 2019 was recognized in revenues during 2021 and 2020, respectively. Note 4. Business Segment and Geographical Information |
(In millions) | 2021 | 2020 | 2019 | |||||||||||||||||
Revenues | ||||||||||||||||||||
Life Sciences Solutions | $ | 15,631 | $ | 12,168 | $ | 6,856 | ||||||||||||||
Analytical Instruments | 6,069 | 5,124 | 5,522 | |||||||||||||||||
Specialty Diagnostics | 5,659 | 5,343 | 3,718 | |||||||||||||||||
Laboratory Products and Biopharma Services | 14,862 | 12,245 | 10,599 | |||||||||||||||||
Eliminations | (3,010) | (2,662) | (1,153) | |||||||||||||||||
Consolidated revenues | 39,211 | 32,218 | 25,542 | |||||||||||||||||
Segment Income | ||||||||||||||||||||
Life Sciences Solutions | 7,817 | 6,109 | 2,446 | |||||||||||||||||
Analytical Instruments | 1,197 | 808 | 1,273 | |||||||||||||||||
Specialty Diagnostics | 1,280 | 1,368 | 930 | |||||||||||||||||
Laboratory Products and Biopharma Services | 1,844 | 1,271 | 1,324 | |||||||||||||||||
Subtotal reportable segments | 12,138 | 9,556 | 5,973 | |||||||||||||||||
Cost of revenues charges | (8) | (6) | (17) | |||||||||||||||||
Selling, general and administrative (charges) credits | (144) | 10 | (62) | |||||||||||||||||
Restructuring and other (costs) income | (197) | (99) | 413 | |||||||||||||||||
Amortization of acquisition-related intangible assets | (1,761) | (1,667) | (1,713) | |||||||||||||||||
Consolidated operating income | 10,028 | 7,794 | 4,594 | |||||||||||||||||
Interest income | 43 | 65 | 224 | |||||||||||||||||
Interest expense | (536) | (553) | (676) | |||||||||||||||||
Other income/(expense) | (694) | (76) | (70) | |||||||||||||||||
Income before income taxes | $ | 8,841 | $ | 7,230 | $ | 4,072 | ||||||||||||||
Depreciation | ||||||||||||||||||||
Life Sciences Solutions | $ | 197 | $ | 140 | $ | 130 | ||||||||||||||
Analytical Instruments | 83 | 76 | 75 | |||||||||||||||||
Specialty Diagnostics | 128 | 100 | 67 | |||||||||||||||||
Laboratory Products and Biopharma Services | 423 | 342 | 292 | |||||||||||||||||
Consolidated depreciation | $ | 831 | $ | 658 | $ | 564 |
(In millions) | 2018 | 2017 | 2016 | |||||||||
Revenues | ||||||||||||
Life Sciences Solutions | $ | 6,269 | $ | 5,728 | $ | 5,317 | ||||||
Analytical Instruments | 5,469 | 4,821 | 3,668 | |||||||||
Specialty Diagnostics | 3,724 | 3,486 | 3,339 | |||||||||
Laboratory Products and Services | 10,035 | 7,825 | 6,724 | |||||||||
Eliminations | (1,139 | ) | (942 | ) | (774 | ) | ||||||
Consolidated revenues | 24,358 | 20,918 | 18,274 | |||||||||
Segment Income (a) | ||||||||||||
Life Sciences Solutions | 2,158 | 1,894 | 1,598 | |||||||||
Analytical Instruments | 1,247 | 1,027 | 749 | |||||||||
Specialty Diagnostics | 952 | 927 | 910 | |||||||||
Laboratory Products and Services | 1,258 | 1,004 | 974 | |||||||||
Subtotal reportable segments (a) | 5,615 | 4,852 | 4,231 | |||||||||
Cost of revenues charges, net | (12 | ) | (123 | ) | (102 | ) | ||||||
Selling, general and administrative charges, net | (29 | ) | (78 | ) | (104 | ) | ||||||
Restructuring and other costs, net | (50 | ) | (97 | ) | (189 | ) | ||||||
Amortization of acquisition-related intangible assets | (1,741 | ) | (1,594 | ) | (1,378 | ) | ||||||
Consolidated operating income | 3,783 | 2,960 | 2,458 | |||||||||
Other expense, net (b) | (521 | ) | (531 | ) | (434 | ) | ||||||
Income from continuing operations before income taxes | $ | 3,262 | $ | 2,429 | $ | 2,024 | ||||||
Depreciation | ||||||||||||
Life Sciences Solutions | $ | 119 | $ | 129 | $ | 142 | ||||||
Analytical Instruments | 73 | 71 | 50 | |||||||||
Specialty Diagnostics | 76 | 72 | 70 | |||||||||
Laboratory Products and Services | 258 | 167 | 118 | |||||||||
Consolidated depreciation | $ | 526 | $ | 439 | $ | 380 |
(In millions) | 2021 | 2020 | 2019 | |||||||||||||||||
Total assets | ||||||||||||||||||||
Life Sciences Solutions | $ | 22,751 | $ | 20,209 | $ | 18,306 | ||||||||||||||
Analytical Instruments | 9,692 | 9,773 | 9,896 | |||||||||||||||||
Specialty Diagnostics | 6,010 | 6,534 | 5,867 | |||||||||||||||||
Laboratory Products and Biopharma Services | 52,639 | 22,711 | 21,761 | |||||||||||||||||
Corporate/other (a) | 4,031 | 9,825 | 2,551 | |||||||||||||||||
Consolidated total assets | $ | 95,123 | $ | 69,052 | $ | 58,381 | ||||||||||||||
Capital expenditures | ||||||||||||||||||||
Life Sciences Solutions | $ | 810 | $ | 392 | $ | 151 | ||||||||||||||
Analytical Instruments | 79 | 74 | 64 | |||||||||||||||||
Specialty Diagnostics | 167 | 175 | 83 | |||||||||||||||||
Laboratory Products and Biopharma Services | 1,327 | 772 | 554 | |||||||||||||||||
Corporate/other | 140 | 61 | 74 | |||||||||||||||||
Consolidated capital expenditures | $ | 2,523 | $ | 1,474 | $ | 926 |
(In millions) | 2018 | 2017 | 2016 | |||||||||
Total Assets | ||||||||||||
Life Sciences Solutions | $ | 18,774 | $ | 19,063 | $ | 19,065 | ||||||
Analytical Instruments | 9,907 | 9,960 | 9,520 | |||||||||
Specialty Diagnostics | 6,663 | 7,095 | 6,802 | |||||||||
Laboratory Products and Services | 19,051 | 19,181 | 9,405 | |||||||||
Corporate/Other (c) | 1,837 | 1,370 | 1,116 | |||||||||
Consolidated total assets | $ | 56,232 | $ | 56,669 | $ | 45,908 | ||||||
Capital Expenditures | ||||||||||||
Life Sciences Solutions | $ | 107 | $ | 118 | $ | 122 | ||||||
Analytical Instruments | 85 | 56 | 34 | |||||||||
Specialty Diagnostics | 103 | 87 | 72 | |||||||||
Laboratory Products and Services | 374 | 178 | 111 | |||||||||
Corporate/Other | 89 | 69 | 105 | |||||||||
Consolidated capital expenditures | $ | 758 | $ | 508 | $ | 444 |
(In millions) | 2021 | 2020 | 2019 | |||||||||||||||||
Revenues (b) | ||||||||||||||||||||
United States | $ | 18,907 | $ | 16,435 | $ | 12,366 | ||||||||||||||
China | 3,444 | 2,797 | 2,752 | |||||||||||||||||
Other | 16,860 | 12,986 | 10,424 | |||||||||||||||||
Consolidated revenues | $ | 39,211 | $ | 32,218 | $ | 25,542 | ||||||||||||||
Long-lived Assets (c) | ||||||||||||||||||||
United States | $ | 5,578 | $ | 3,686 | $ | 3,099 | ||||||||||||||
Other | 4,286 | 3,001 | 2,349 | |||||||||||||||||
Consolidated long-lived assets | $ | 9,864 | $ | 6,687 | $ | 5,448 |
(In millions) | 2018 | 2017 | 2016 | |||||||||
Revenues (d) | ||||||||||||
United States | $ | 11,629 | $ | 10,129 | $ | 9,086 | ||||||
China | 2,504 | 2,060 | 1,730 | |||||||||
Other | 10,225 | 8,729 | 7,458 | |||||||||
Consolidated revenues | $ | 24,358 | $ | 20,918 | $ | 18,274 | ||||||
Long-lived Assets (e) | ||||||||||||
United States | $ | 2,444 | $ | 2,349 | $ | 1,630 | ||||||
Other | 1,721 | 1,698 | 948 | |||||||||
Consolidated long-lived assets | $ | 4,165 | $ | 4,047 | $ | 2,578 |
(In millions) | 2018 | 2017 | 2016 | |||||||||
Interest Income | $ | 137 | $ | 81 | $ | 48 | ||||||
Interest Expense | (667 | ) | (592 | ) | (469 | ) | ||||||
Other Items, Net | 9 | (20 | ) | (13 | ) | |||||||
Other Expense, Net | $ | (521 | ) | $ | (531 | ) | $ | (434 | ) |
Note 6. | Stock-based Compensation Expense |
(In millions) | 2018 | 2017 | 2016 | |||||||||
Stock Option Awards | $ | 57 | $ | 53 | $ | 41 | ||||||
Restricted Unit Awards | 124 | 106 | 92 | |||||||||
Total Stock-based Compensation Expense | $ | 181 | $ | 159 | $ | 133 |
2018 | 2017 | 2016 | |||||||
Expected Stock Price Volatility | 20 | % | 20 | % | 21 | % | |||
Risk Free Interest Rate | 2.6 | % | 1.9 | % | 1.2 | % | |||
Expected Life of Options (years) | 4.3 | 4.3 | 4.3 | ||||||
Expected Annual Dividend | 0.3 | % | 0.4 | % | 0.5 | % |
2021 | 2020 | 2019 | ||||||||||||||||||
Expected stock price volatility | 26 | % | 22 | % | 21 | % | ||||||||||||||
Risk free interest rate | 0.8 | % | 1.1 | % | 2.4 | % | ||||||||||||||
Expected life of options (years) | 4.3 | 4.3 | 4.3 | |||||||||||||||||
Expected annual dividend | 0.2 | % | 0.3 | % | 0.3 | % |
Shares (in millions) | Weighted average exercise price | Weighted average remaining contractual term (in years) | Aggregate intrinsic value (in millions) | |||||||||||||||||||||||
Outstanding at December 31, 2020 | 5.9 | $ | 221.22 | |||||||||||||||||||||||
Granted | 1.5 | 552.26 | ||||||||||||||||||||||||
Issued in connection with an acquisition | 0.2 | 492.35 | ||||||||||||||||||||||||
Exercised | (1.4) | 183.63 | ||||||||||||||||||||||||
Canceled/expired | (0.2) | 341.83 | ||||||||||||||||||||||||
Outstanding at December 31, 2021 | 6.0 | $ | 319.95 | 4.5 | $ | 2,094 | ||||||||||||||||||||
Vested and unvested expected to vest at December 31, 2021 | 5.7 | $ | 306.64 | 4.3 | $ | 2,035 | ||||||||||||||||||||
Exercisable at December 31, 2021 | 2.8 | $ | 193.39 | 2.9 | $ | 1,307 |
Shares (in millions) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (a) (in millions) | ||||||||||
Outstanding at December 31, 2017 | 9.0 | $ | 121.78 | ||||||||||
Granted | 1.6 | 211.38 | |||||||||||
Exercised | (2.3 | ) | 86.88 | ||||||||||
Canceled/Expired | (0.3 | ) | 164.58 | ||||||||||
Outstanding at December 31, 2018 | 8.0 | $ | 148.09 | 4.2 | |||||||||
Vested and Unvested Expected to Vest at December 31, 2018 | 7.7 | $ | 146.24 | 4.2 | $ | 595 | |||||||
Exercisable at December 31, 2018 | 3.5 | $ | 114.93 | 2.8 | $ | 382 |
Units (in millions) | Weighted Average Grant-Date Fair Value | ||||||
Unvested at December 31, 2017 | 1.4 | $ | 150.23 | ||||
Granted | 0.6 | 204.72 | |||||
Vested | (0.7 | ) | 150.28 | ||||
Forfeited | (0.1 | ) | 166.95 | ||||
Unvested at December 31, 2018 | 1.2 | $ | 177.04 |
Units (in millions) | Weighted average grant-date fair value | |||||||||||||
Unvested at December 31, 2020 | 0.8 | $ | 276.74 | |||||||||||
Granted | 0.4 | 444.61 | ||||||||||||
Issued in connection with an acquisition | 0.2 | 628.71 | ||||||||||||
Vested | (0.5) | 295.70 | ||||||||||||
Forfeited | (0.1) | 326.90 | ||||||||||||
Unvested at December 31, 2021 | 0.8 | $ | 425.39 |
THERMO FISHER SCIENTIFIC INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 7. Pension and Other Postretirement Benefit Plans |
Domestic pension benefits | Non-U.S. pension benefits | |||||||||||||||||||||||||
(In millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Change in projected benefit obligations | ||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 1,302 | $ | 1,302 | $ | 1,486 | $ | 1,303 | ||||||||||||||||||
Acquisitions | — | — | 170 | — | ||||||||||||||||||||||
Service costs | — | — | 27 | 24 | ||||||||||||||||||||||
Interest costs | 23 | 35 | 11 | 18 | ||||||||||||||||||||||
Settlements | — | — | (7) | (38) | ||||||||||||||||||||||
Plan participants' contributions | — | — | 6 | 5 | ||||||||||||||||||||||
Actuarial (gains) losses | 20 | 44 | (57) | 119 | ||||||||||||||||||||||
Benefits paid | (85) | (79) | (30) | (26) | ||||||||||||||||||||||
Currency translation and other | — | — | (54) | 81 | ||||||||||||||||||||||
Benefit obligation at end of year | $ | 1,260 | $ | 1,302 | $ | 1,552 | $ | 1,486 | ||||||||||||||||||
Change in fair value of plan assets | ||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 1,267 | $ | 1,201 | $ | 1,160 | $ | 986 | ||||||||||||||||||
Acquisitions | — | — | 158 | — | ||||||||||||||||||||||
Actual return on plan assets | 37 | 138 | 14 | 92 | ||||||||||||||||||||||
Employer contribution | 7 | 7 | 27 | 87 | ||||||||||||||||||||||
Settlements | — | — | (7) | (38) | ||||||||||||||||||||||
Plan participants' contributions | — | — | 6 | 5 | ||||||||||||||||||||||
Benefits paid | (85) | (79) | (30) | (26) | ||||||||||||||||||||||
Currency translation and other | — | — | (26) | 54 | ||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 1,226 | $ | 1,267 | $ | 1,302 | $ | 1,160 | ||||||||||||||||||
Funded status | $ | (34) | $ | (35) | $ | (250) | $ | (326) | ||||||||||||||||||
Accumulated benefit obligation | $ | 1,260 | $ | 1,302 | $ | 1,475 | $ | 1,417 | ||||||||||||||||||
Amounts recognized in balance sheet | ||||||||||||||||||||||||||
Noncurrent assets | $ | 32 | $ | 38 | $ | 205 | $ | 157 | ||||||||||||||||||
Current liability | (7) | (8) | (10) | (9) | ||||||||||||||||||||||
Noncurrent liabilities | (59) | (65) | (445) | (474) | ||||||||||||||||||||||
Net amount recognized | $ | (34) | $ | (35) | $ | (250) | $ | (326) | ||||||||||||||||||
Amounts recognized in accumulated other comprehensive items | ||||||||||||||||||||||||||
Net actuarial loss | $ | 157 | $ | 142 | $ | 167 | $ | 242 | ||||||||||||||||||
Prior service credits | — | — | (3) | (2) | ||||||||||||||||||||||
Net amount recognized | $ | 157 | $ | 142 | $ | 164 | $ | 240 |
Domestic Pension Benefits | Non-U.S. Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
(In millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Change in Projected Benefit Obligations | ||||||||||||||||||||||||
Benefit Obligation at Beginning of Year | $ | 1,300 | $ | 1,249 | $ | 1,324 | $ | 1,116 | $ | 63 | $ | 50 | ||||||||||||
Business combinations | 8 | — | — | 185 | 1 | 6 | ||||||||||||||||||
Service costs | — | — | 26 | 26 | 1 | 1 | ||||||||||||||||||
Interest costs | 41 | 43 | 23 | 21 | 2 | 2 | ||||||||||||||||||
Settlements | — | — | (33 | ) | (60 | ) | — | — | ||||||||||||||||
Plan participants' contributions | — | — | 5 | 5 | — | 1 | ||||||||||||||||||
Actuarial (gains) losses | (87 | ) | 92 | (48 | ) | (34 | ) | (8 | ) | 6 | ||||||||||||||
Benefits paid | (83 | ) | (84 | ) | (34 | ) | (37 | ) | (2 | ) | (4 | ) | ||||||||||||
Currency translation and other | — | — | (70 | ) | 102 | (7 | ) | 1 | ||||||||||||||||
Benefit Obligation at End of Year | $ | 1,179 | $ | 1,300 | $ | 1,193 | $ | 1,324 | $ | 50 | $ | 63 | ||||||||||||
Change in Fair Value of Plan Assets | ||||||||||||||||||||||||
Fair Value of Plan Assets at Beginning of Year | $ | 1,181 | $ | 944 | $ | 1,011 | $ | 853 | $ | 9 | $ | 8 | ||||||||||||
Business combinations | 7 | — | — | 101 | — | — | ||||||||||||||||||
Actual return on plan assets | (49 | ) | 161 | (21 | ) | 32 | (1 | ) | 1 | |||||||||||||||
Employer contribution | 35 | 160 | 56 | 37 | 2 | 3 | ||||||||||||||||||
Settlements | — | — | (33 | ) | (60 | ) | — | — | ||||||||||||||||
Plan participants' contributions | — | — | 5 | 5 | — | 1 | ||||||||||||||||||
Benefits paid | (83 | ) | (84 | ) | (34 | ) | (37 | ) | (2 | ) | (4 | ) | ||||||||||||
Currency translation and other | — | — | (52 | ) | 80 | — | — | |||||||||||||||||
Fair Value of Plan Assets at End of Year | $ | 1,091 | $ | 1,181 | $ | 932 | $ | 1,011 | $ | 8 | $ | 9 | ||||||||||||
Funded Status | $ | (88 | ) | $ | (119 | ) | $ | (261 | ) | $ | (313 | ) | $ | (42 | ) | $ | (54 | ) | ||||||
Accumulated Benefit Obligation | $ | 1,179 | $ | 1,300 | $ | 1,136 | $ | 1,256 | ||||||||||||||||
Amounts Recognized in Balance Sheet | ||||||||||||||||||||||||
Non-current asset | $ | — | $ | — | $ | 106 | $ | 100 | $ | 8 | $ | 6 | ||||||||||||
Current liability | (6 | ) | (7 | ) | (8 | ) | (10 | ) | (3 | ) | (3 | ) | ||||||||||||
Non-current liability | (82 | ) | (112 | ) | (359 | ) | (403 | ) | (47 | ) | (57 | ) | ||||||||||||
Net amount recognized | $ | (88 | ) | $ | (119 | ) | $ | (261 | ) | $ | (313 | ) | $ | (42 | ) | $ | (54 | ) | ||||||
Amounts Recognized in Accumulated Other Comprehensive Items | ||||||||||||||||||||||||
Net actuarial loss | $ | 168 | $ | 156 | $ | 106 | $ | 126 | $ | 4 | $ | 11 | ||||||||||||
Prior service credits | — | — | 5 | 10 | (5 | ) | — | |||||||||||||||||
Net amount recognized | $ | 168 | $ | 156 | $ | 111 | $ | 136 | $ | (1 | ) | $ | 11 |
Domestic pension benefits | Non-U.S. pension benefits | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Weighted average assumptions used to determine projected benefit obligations | ||||||||||||||||||||||||||
Discount rate for determining benefit obligation | 2.70 | % | 2.33 | % | 1.45 | % | 0.95 | % | ||||||||||||||||||
Interest crediting rate for cash balance plans | 2.58 | % | 2.16 | % | 1.25 | % | 1.25 | % | ||||||||||||||||||
Average rate of increase in employee compensation | N/A | N/A | 2.73 | % | 2.30 | % |
Domestic Pension Benefits | Non-U.S. Pension Benefits | Postretirement Benefits | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||
Weighted Average Assumptions Used to Determine Projected Benefit Obligations | ||||||||||||||||||
Discount rate | 4.21 | % | 3.55 | % | 2.34 | % | 2.10 | % | 3.81 | % | 3.43 | % | ||||||
Average rate of increase in employee compensation | N/A | N/A | 2.47 | % | 2.59 | % | N/A | N/A | ||||||||||
Initial healthcare cost trend rate | 6.35 | % | 6.73 | % | ||||||||||||||
Ultimate healthcare cost trend rate | 4.89 | % | 5.04 | % |
Domestic Pension Benefits | Non-U.S. Pension Benefits | |||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |||||||||||||
Weighted Average Assumptions Used to Determine Net Benefit Cost (Income) | ||||||||||||||||||
Discount rate | 3.54 | % | 4.06 | % | 4.25 | % | 2.10 | % | 1.95 | % | 2.83 | % | ||||||
Average rate of increase in employee compensation | N/A | N/A | N/A | 2.59 | % | 3.10 | % | 3.06 | % | |||||||||
Expected long-term rate of return on assets | 5.75 | % | 6.50 | % | 7.00 | % | 3.31 | % | 3.11 | % | 3.74 | % |
Domestic pension benefits | Non-U.S. pension benefits | |||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Weighted average assumptions used to determine net benefit cost (income) | ||||||||||||||||||||||||||||||||||||||
Discount rate - service cost | N/A | N/A | N/A | 0.65 | % | 1.21 | % | 1.97 | % | |||||||||||||||||||||||||||||
Discount rate - interest cost | 2.33 | % | 3.13 | % | 4.22 | % | 0.80 | % | 1.44 | % | 2.06 | % | ||||||||||||||||||||||||||
Average rate of increase in employee compensation | N/A | N/A | N/A | 2.30 | % | 2.27 | % | 2.47 | % | |||||||||||||||||||||||||||||
Expected long-term rate of return on assets | 4.25 | % | 5.00 | % | 5.76 | % | 2.02 | % | 2.33 | % | 3.25 | % |
Pension plans | ||||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Pension plans with projected benefit obligations in excess of plan assets | ||||||||||||||
Projected benefit obligation | $ | 2,010 | $ | 2,047 | ||||||||||
Fair value of plan assets | 1,521 | 1,529 |
Pension Plans | ||||||||
(In millions) | 2018 | 2017 | ||||||
Pension Plans with Projected Benefit Obligations in Excess of Plan Assets | ||||||||
Projected benefit obligation | $ | 1,876 | $ | 2,059 | ||||
Fair value of plan assets | 1,421 | 1,527 |
Pension Plans | ||||||||
(In millions) | 2018 | 2017 | ||||||
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | ||||||||
Accumulated benefit obligation | $ | 1,792 | $ | 1,962 | ||||
Fair value of plan assets | 1,393 | 1,495 |
Pension plans | ||||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Pension plans with accumulated benefit obligations in excess of plan assets | ||||||||||||||
Accumulated benefit obligation | $ | 1,937 | $ | 1,976 | ||||||||||
Fair value of plan assets | 1,521 | 1,526 |
Domestic pension benefits | Non-U.S. pension benefits | |||||||||||||||||||||||||||||||||||||
(In millions) | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Components of net benefit cost (income) | ||||||||||||||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | 27 | $ | 24 | $ | 23 | ||||||||||||||||||||||||||
Interest cost on benefit obligation | 23 | 35 | 45 | 11 | 18 | 24 | ||||||||||||||||||||||||||||||||
Expected return on plan assets | (40) | (47) | (55) | (19) | (19) | (30) | ||||||||||||||||||||||||||||||||
Amortization of actuarial net loss | 7 | 6 | 2 | 12 | 10 | 6 | ||||||||||||||||||||||||||||||||
Amortization of prior service benefit | — | — | — | — | (1) | (1) | ||||||||||||||||||||||||||||||||
Settlement/curtailment loss | — | — | — | — | 8 | 4 | ||||||||||||||||||||||||||||||||
Net periodic benefit cost (income) | $ | (10) | $ | (6) | $ | (8) | $ | 31 | $ | 40 | $ | 26 |
Domestic Pension Benefits | Non-U.S. Pension Benefits | |||||||||||||||||||||||
(In millions) | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||||||||
Components of Net Benefit Cost (Income) | ||||||||||||||||||||||||
Service cost-benefits earned | $ | — | $ | — | $ | — | $ | 26 | $ | 26 | $ | 24 | ||||||||||||
Interest cost on benefit obligation | 41 | 43 | 51 | 23 | 21 | 27 | ||||||||||||||||||
Expected return on plan assets | (55 | ) | (56 | ) | (49 | ) | (32 | ) | (29 | ) | (28 | ) | ||||||||||||
Amortization of actuarial net loss | 3 | 2 | — | 7 | 9 | 7 | ||||||||||||||||||
Settlement/curtailment loss | — | 1 | — | 7 | 5 | — | ||||||||||||||||||
Net periodic benefit cost (income) | $ | (11 | ) | $ | (10 | ) | $ | 2 | $ | 31 | $ | 32 | $ | 30 |
(In millions) | Domestic Pension Benefits | Non-U.S. Pension Benefits | Post- retirement Benefits | |||||||||
Expected Benefit Payments | ||||||||||||
2019 | $ | 92 | $ | 34 | $ | 3 | ||||||
2020 | 85 | 36 | 3 | |||||||||
2021 | 86 | 37 | 3 | |||||||||
2022 | 84 | 39 | 3 | |||||||||
2023 | 83 | 42 | 3 | |||||||||
2024-2028 | 393 | 244 | 12 |
(In millions) | Domestic pension benefits | Non-U.S. pension benefits | ||||||||||||
Expected benefit payments | ||||||||||||||
2022 | $ | 93 | $ | 45 | ||||||||||
2023 | 89 | 45 | ||||||||||||
2024 | 88 | 49 | ||||||||||||
2025 | 86 | 52 | ||||||||||||
2026 | 84 | 56 | ||||||||||||
2027-2031 | 368 | 307 |
December 31, | Quoted prices in active markets | Significant other observable inputs | Significant unobservable inputs | Not subject to leveling (a) | ||||||||||||||||||||||||||||
(In millions) | 2021 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||
Domestic pension plan assets | ||||||||||||||||||||||||||||||||
U.S. equity funds | $ | 124 | $ | — | $ | — | $ | — | $ | 124 | ||||||||||||||||||||||
International equity funds | 117 | — | — | — | 117 | |||||||||||||||||||||||||||
Fixed income funds | 966 | — | — | — | 966 | |||||||||||||||||||||||||||
Money market funds | 19 | — | — | — | 19 | |||||||||||||||||||||||||||
Total domestic pension plans | $ | 1,226 | $ | — | $ | — | $ | — | $ | 1,226 | ||||||||||||||||||||||
Non-U.S. pension plan assets | ||||||||||||||||||||||||||||||||
Equity funds | $ | 17 | $ | — | $ | — | $ | — | $ | 17 | ||||||||||||||||||||||
Fixed income funds | 651 | — | — | — | 651 | |||||||||||||||||||||||||||
Hedge funds | 3 | — | — | — | 3 | |||||||||||||||||||||||||||
Multi-asset funds | 73 | — | — | — | 73 | |||||||||||||||||||||||||||
Derivative funds | 253 | — | — | — | 253 | |||||||||||||||||||||||||||
Alternative investments | 1 | — | — | — | 1 | |||||||||||||||||||||||||||
Insurance contracts | 295 | — | 295 | — | — | |||||||||||||||||||||||||||
Cash / money market funds | 9 | 5 | — | — | 4 | |||||||||||||||||||||||||||
Total non-U.S. pension plans | $ | 1,302 | $ | 5 | $ | 295 | $ | — | $ | 1,002 | ||||||||||||||||||||||
(a) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
December 31, | Quoted Prices in Active Markets | Significant Other Observable Inputs | Significant Unobservable Inputs | Not Subject to Leveling (1) | ||||||||||||||||
(In millions) | 2018 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Domestic Pension Plan Assets | ||||||||||||||||||||
U.S. equity funds | $ | 104 | $ | — | $ | — | $ | — | $ | 104 | ||||||||||
International equity funds | 103 | — | — | — | 103 | |||||||||||||||
Fixed income funds | 868 | — | — | — | 868 | |||||||||||||||
Money market funds | 16 | — | — | — | 16 | |||||||||||||||
Total Domestic Pension Plans | $ | 1,091 | $ | — | $ | — | $ | — | $ | 1,091 | ||||||||||
Non-U.S. Pension Plan Assets | ||||||||||||||||||||
Equity funds | $ | 43 | $ | — | $ | — | $ | — | $ | 43 | ||||||||||
Fixed income funds | 299 | — | — | — | 299 | |||||||||||||||
Hedge funds | 61 | — | — | — | 61 | |||||||||||||||
Multi-asset funds | 97 | — | — | — | 97 | |||||||||||||||
Derivative funds | 169 | — | — | — | 169 | |||||||||||||||
Alternative investments | 20 | — | — | — | 20 | |||||||||||||||
Insurance contracts | 237 | — | 237 | — | — | |||||||||||||||
Cash / money market funds | 6 | 5 | — | — | 1 | |||||||||||||||
Total Non-U.S. Pension Plans | $ | 932 | $ | 5 | $ | 237 | $ | — | $ | 690 | ||||||||||
(1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
December 31, | Quoted Prices in Active Markets | Significant Other Observable Inputs | Significant Unobservable Inputs | Not Subject to Leveling (1) | December 31, | Quoted prices in active markets | Significant other observable inputs | Significant unobservable inputs | Not subject to leveling (a) | |||||||||||||||||||||||||||||||||||||||||||
(In millions) | 2017 | (Level 1) | (Level 2) | (Level 3) | (In millions) | 2020 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||
Domestic Pension Plan Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Domestic pension plan assets | Domestic pension plan assets | |||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. equity funds | $ | 163 | $ | — | $ | — | $ | — | $ | 163 | U.S. equity funds | $ | 125 | $ | — | $ | — | $ | — | $ | 125 | |||||||||||||||||||||||||||||||
International equity funds | 180 | — | — | — | 180 | International equity funds | 126 | — | — | — | 126 | |||||||||||||||||||||||||||||||||||||||||
Fixed income funds | 761 | — | — | — | 761 | Fixed income funds | 1,001 | — | — | — | 1,001 | |||||||||||||||||||||||||||||||||||||||||
Private equity funds | 2 | — | — | — | 2 | |||||||||||||||||||||||||||||||||||||||||||||||
Money market funds | 75 | — | — | — | 75 | Money market funds | 15 | — | — | — | 15 | |||||||||||||||||||||||||||||||||||||||||
Total domestic pension plans | Total domestic pension plans | $ | 1,267 | $ | — | $ | — | $ | — | $ | 1,267 | |||||||||||||||||||||||||||||||||||||||||
Total Domestic Pension Plans | $ | 1,181 | $ | — | $ | — | $ | — | $ | 1,181 | ||||||||||||||||||||||||||||||||||||||||||
Non-U.S. Pension Plan Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. pension plan assets | Non-U.S. pension plan assets | |||||||||||||||||||||||||||||||||||||||||||||||||||
Equity funds | $ | 75 | $ | — | $ | — | $ | — | $ | 75 | Equity funds | $ | 74 | $ | — | $ | — | $ | — | $ | 74 | |||||||||||||||||||||||||||||||
Fixed income funds | 312 | — | — | — | 312 | Fixed income funds | 510 | — | — | — | 510 | |||||||||||||||||||||||||||||||||||||||||
Hedge funds | 77 | — | — | — | 77 | Hedge funds | 59 | — | — | — | 59 | |||||||||||||||||||||||||||||||||||||||||
Multi-asset funds | 79 | — | — | — | 79 | Multi-asset funds | 45 | — | — | — | 45 | |||||||||||||||||||||||||||||||||||||||||
Derivative funds | 194 | — | — | — | 194 | Derivative funds | 149 | — | — | — | 149 | |||||||||||||||||||||||||||||||||||||||||
Alternative investments | 17 | — | — | — | 17 | Alternative investments | 6 | — | — | — | 6 | |||||||||||||||||||||||||||||||||||||||||
Insurance contracts | 202 | — | 202 | — | — | Insurance contracts | 262 | — | 262 | — | — | |||||||||||||||||||||||||||||||||||||||||
Cash / money market funds | 55 | 40 | — | — | 15 | Cash / money market funds | 55 | 7 | — | — | 48 | |||||||||||||||||||||||||||||||||||||||||
Total Non-U.S. Pension Plans | $ | 1,011 | $ | 40 | $ | 202 | $ | — | $ | 769 | ||||||||||||||||||||||||||||||||||||||||||
(1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total non-U.S. pension plans | Total non-U.S. pension plans | $ | 1,160 | $ | 7 | $ | 262 | $ | — | $ | 891 | |||||||||||||||||||||||||||||||||||||||||
(a) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. | (a) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
(In millions) | 2021 | 2020 | 2019 | |||||||||||||||||
U.S. | $ | 3,340 | $ | 4,762 | $ | 2,280 | ||||||||||||||
Non-U.S. | 5,501 | 2,468 | 1,792 | |||||||||||||||||
Income before income taxes | $ | 8,841 | $ | 7,230 | $ | 4,072 |
(In millions) | 2018 | 2017 | 2016 | |||||||||
U.S. | $ | 1,329 | $ | 655 | $ | 493 | ||||||
Non-U.S. | 1,933 | 1,774 | 1,531 | |||||||||
Income from Continuing Operations | $ | 3,262 | $ | 2,429 | $ | 2,024 |
(In millions) | 2021 | 2020 | 2019 | |||||||||||||||||
Current income tax provision | ||||||||||||||||||||
Federal | $ | 446 | $ | 521 | $ | 267 | ||||||||||||||
Non-U.S. | 1,148 | 423 | 544 | |||||||||||||||||
State | 160 | 175 | 62 | |||||||||||||||||
1,754 | 1,119 | 873 | ||||||||||||||||||
Deferred income tax provision (benefit) | ||||||||||||||||||||
Federal | $ | (227) | $ | (237) | $ | (222) | ||||||||||||||
Non-U.S. | (399) | (18) | (252) | |||||||||||||||||
State | (19) | (14) | (25) | |||||||||||||||||
(645) | (269) | (499) | ||||||||||||||||||
Provision for income taxes | $ | 1,109 | $ | 850 | $ | 374 |
(In millions) | 2018 | 2017 | 2016 | |||||||||
Current Income Tax Provision | ||||||||||||
Federal | $ | 165 | $ | 1,259 | $ | 280 | ||||||
Non-U.S. | 574 | 576 | 349 | |||||||||
State | 59 | 62 | 9 | |||||||||
798 | 1,897 | 638 | ||||||||||
Deferred Income Tax Provision (Benefit) | ||||||||||||
Federal | $ | (258 | ) | $ | (1,437 | ) | $ | (510 | ) | |||
Non-U.S. | (187 | ) | (271 | ) | (104 | ) | ||||||
State | (29 | ) | 12 | (25 | ) | |||||||
(474 | ) | (1,696 | ) | (639 | ) | |||||||
Provision for (benefit from) income taxes | $ | 324 | $ | 201 | $ | (1 | ) |
(In millions) | 2018 | 2017 | 2016 | |||||||||
Statutory Federal Income Tax Rate | 21 | % | 35 | % | 35 | % | ||||||
Provision for Income Taxes at Statutory Rate | $ | 685 | $ | 850 | $ | 708 | ||||||
Increases (Decreases) Resulting From: | ||||||||||||
Foreign rate differential | (375 | ) | (380 | ) | (322 | ) | ||||||
Foreign exchange loss on inter-company debt refinancing | — | (237 | ) | — | ||||||||
Income tax credits | (349 | ) | (273 | ) | (318 | ) | ||||||
Manufacturing deduction | — | (42 | ) | (38 | ) | |||||||
Withholding taxes | 31 | 55 | — | |||||||||
Global intangible low-taxed income | 167 | — | — | |||||||||
Foreign-derived intangible income | (47 | ) | — | — | ||||||||
Singapore tax holiday | (28 | ) | (25 | ) | (23 | ) | ||||||
Impact of change in tax laws and apportionment on deferred taxes | (12 | ) | (1,121 | ) | 2 | |||||||
Transition tax and other initial impacts of U.S. tax reform | 117 | 1,250 | — | |||||||||
(Reversal of) provision for tax reserves, net | (49 | ) | 99 | 12 | ||||||||
Excess tax benefits from stock options and restricted stock units | (77 | ) | (65 | ) | — | |||||||
Tax return reassessments and settlements | (26 | ) | 8 | (41 | ) | |||||||
Valuation allowance | 260 | 7 | — | |||||||||
Other, net | 27 | 75 | 19 | |||||||||
Provision for (benefit from) income taxes | $ | 324 | $ | 201 | $ | (1 | ) |
(In millions) | 2021 | 2020 | 2019 | |||||||||||||||||
Statutory federal income tax rate | 21 | % | 21 | % | 21 | % | ||||||||||||||
Provision for income taxes at statutory rate | $ | 1,857 | $ | 1,518 | $ | 855 | ||||||||||||||
Increases (decreases) resulting from: | ||||||||||||||||||||
Foreign rate differential | (255) | (223) | (204) | |||||||||||||||||
Income tax credits | (315) | (335) | (213) | |||||||||||||||||
Global intangible low-taxed income | 76 | 86 | 92 | |||||||||||||||||
Foreign-derived intangible income | (119) | (156) | (111) | |||||||||||||||||
Excess tax benefits from stock options and restricted stock units | (124) | (114) | (80) | |||||||||||||||||
Provision for (reversal of) tax reserves, net | (17) | (26) | 62 | |||||||||||||||||
Intra-entity transfers | (284) | — | (79) | |||||||||||||||||
Foreign exchange loss on inter-company debt refinancing | — | (47) | (62) | |||||||||||||||||
Domestication transaction | — | (263) | — | |||||||||||||||||
Valuation allowance | 36 | 379 | (4) | |||||||||||||||||
Withholding taxes | 164 | 115 | 38 | |||||||||||||||||
Basis difference on disposal of business | — | — | 73 | |||||||||||||||||
Tax return reassessments and settlements | 1 | (196) | (6) | |||||||||||||||||
State income taxes, net of federal tax | 82 | 147 | 22 | |||||||||||||||||
Other, net | 7 | (35) | (9) | |||||||||||||||||
Provision for income taxes | $ | 1,109 | $ | 850 | $ | 374 |
(In millions) | 2018 | 2017 | ||||||
Deferred Tax Asset (Liability) | ||||||||
Depreciation and amortization | $ | (3,444 | ) | $ | (3,957 | ) | ||
Net operating loss and credit carryforwards | 1,311 | 1,150 | ||||||
Reserves and accruals | 148 | 139 | ||||||
Accrued compensation | 250 | 265 | ||||||
Inventory basis difference | 105 | 81 | ||||||
Other capitalized costs | 103 | 61 | ||||||
Unrealized losses on hedging instruments | 23 | 125 | ||||||
Other, net | 143 | 126 | ||||||
Deferred tax assets (liabilities), net before valuation allowance | (1,361 | ) | (2,010 | ) | ||||
Less: Valuation allowance | 471 | 256 | ||||||
Deferred tax assets (liabilities), net | $ | (1,832 | ) | $ | (2,266 | ) |
(In millions) | 2021 | 2020 | ||||||||||||
Deferred tax asset (liability) | ||||||||||||||
Depreciation and amortization | $ | (4,687) | $ | (2,962) | ||||||||||
Net operating loss and credit carryforwards | 1,652 | 1,668 | ||||||||||||
Reserves and accruals | 162 | 164 | ||||||||||||
Accrued compensation | 318 | 253 | ||||||||||||
Inventory basis difference | 181 | 112 | ||||||||||||
Deferred interest | 295 | 227 | ||||||||||||
Unrealized (gains) losses on hedging instruments | (33) | 242 | ||||||||||||
Other, net | 251 | 124 | ||||||||||||
Deferred tax liabilities, net before valuation allowance | (1,861) | (172) | ||||||||||||
Less: Valuation allowance | 968 | 933 | ||||||||||||
Deferred tax liabilities, net | $ | (2,829) | $ | (1,105) |
Year Ended December 31, | ||||||||||||
(In millions) | 2018 | 2017 | 2016 | |||||||||
Beginning Balance | $ | 256 | $ | 113 | $ | 109 | ||||||
Additions charged to income tax provision | 223 | 28 | — | |||||||||
Additions due to acquisitions | 17 | 108 | 25 | |||||||||
Deductions | (15 | ) | — | — | ||||||||
Currency translation and other | (10 | ) | 7 | (21 | ) | |||||||
Ending Balance | $ | 471 | $ | 256 | $ | 113 |
Year Ended December 31, | ||||||||||||||||||||
(In millions) | 2021 | 2020 | 2019 | |||||||||||||||||
Beginning balance | $ | 933 | $ | 408 | $ | 471 | ||||||||||||||
Additions (reductions) charged to income tax provision, net | 24 | 514 | (27) | |||||||||||||||||
Additions due to acquisitions | 30 | — | — | |||||||||||||||||
Reduction due to a divestiture | — | — | (33) | |||||||||||||||||
Currency translation and other | (19) | 11 | (3) | |||||||||||||||||
Ending balance | $ | 968 | $ | 933 | $ | 408 |
(In millions) | 2021 | 2020 | 2019 | |||||||||||||||||
Beginning balance | $ | 1,091 | $ | 1,552 | $ | 1,442 | ||||||||||||||
Additions due to acquisitions | 26 | — | — | |||||||||||||||||
Additions for tax positions of current year | 32 | 8 | 53 | |||||||||||||||||
Additions for tax positions of prior years | 60 | — | 69 | |||||||||||||||||
Reductions for tax positions of prior years | (5) | (296) | (7) | |||||||||||||||||
Closure of tax years | (27) | — | — | |||||||||||||||||
Settlements | (53) | (173) | (5) | |||||||||||||||||
Ending balance | $ | 1,124 | $ | 1,091 | $ | 1,552 |
(In millions) | 2018 | 2017 | 2016 | |||||||||
Balance at beginning of year | $ | 1,409 | $ | 802 | $ | 350 | ||||||
Additions due to acquisitions | — | 31 | 54 | |||||||||
Reductions due to acquisitions | (5 | ) | — | — | ||||||||
Additions for tax positions of current year | 48 | 565 | 342 | |||||||||
Additions for tax positions of prior years | 82 | 51 | 94 | |||||||||
Closure of tax years | (5 | ) | — | (28 | ) | |||||||
Settlements | (87 | ) | (40 | ) | (10 | ) | ||||||
Balance at end of year | $ | 1,442 | $ | 1,409 | $ | 802 |
(In millions except per share amounts) | 2021 | 2020 | 2019 | |||||||||||||||||
Net income attributable to Thermo Fisher Scientific Inc. | $ | 7,725 | $ | 6,375 | $ | 3,696 | ||||||||||||||
Basic weighted average shares | 394 | 396 | 400 | |||||||||||||||||
Plus effect of: stock options and restricted stock units | 3 | 3 | 3 | |||||||||||||||||
Diluted weighted average shares | 397 | 399 | 403 | |||||||||||||||||
Basic earnings per share | $ | 19.62 | $ | 16.09 | $ | 9.24 | ||||||||||||||
Diluted earnings per share | $ | 19.46 | $ | 15.96 | $ | 9.17 | ||||||||||||||
Antidilutive stock options excluded from diluted weighted average shares | 1 | 1 | 1 |
Effective interest rate at December 31, | December 31, | December 31, | ||||||||||||||||||
(Dollars in millions) | 2021 | 2021 | 2020 | |||||||||||||||||
Commercial Paper | 0.01 | % | $ | 2,522 | $ | — | ||||||||||||||
2.15% 7-Year Senior Notes, Due 7/21/2022 (euro-denominated) | — | 611 | ||||||||||||||||||
3.00% 7-Year Senior Notes, Due 4/15/2023 | — | 1,000 | ||||||||||||||||||
Floating Rate (SOFR + 0.35%) 1.5-Year Senior Notes, Due 4/18/2023 | 1,000 | — | ||||||||||||||||||
Floating Rate (SOFR + 0.39%) 2-Year Senior Notes, Due 10/18/2023 | 500 | — | ||||||||||||||||||
0.797% 2-Year Senior Notes, Due 10/18/2023 | 1.03 | % | 1,350 | — | ||||||||||||||||
Floating Rate (EURIBOR + 0.20%) 2-Year Senior Notes Due 11/18/2023 (euro-denominated) | 0.00 | % | 1,933 | — | ||||||||||||||||
0.000% 2-Year Senior Notes Due 11/18/2023 (euro-denominated) | 0.06 | % | 625 | — | ||||||||||||||||
4.15% 10-Year Senior Notes, Due 2/1/2024 | — | 1,000 | ||||||||||||||||||
0.75% 8-Year Senior Notes, Due 9/12/2024 (euro-denominated) | 0.94 | % | 1,137 | 1,222 | ||||||||||||||||
1.215% 3-Year Senior Notes, Due 10/18/2024 | 1.42 | % | 2,500 | — | ||||||||||||||||
Floating Rate (SOFR + 0.53%) 3-Year Senior Notes, Due 10/18/2024 | 500 | — | ||||||||||||||||||
0.125% 5.5-Year Senior Notes, Due 3/1/2025 (euro-denominated) | 0.41 | % | 910 | 977 | ||||||||||||||||
4.133% 5-Year Senior Notes, Due 3/25/2025 | — | 1,100 | ||||||||||||||||||
2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) | 2.10 | % | 728 | 782 | ||||||||||||||||
0.000% 4-Year Senior Notes Due 11/18/2025 (euro-denominated) | 0.16 | % | 625 | — | ||||||||||||||||
3.65% 10-Year Senior Notes, Due 12/15/2025 | 3.77 | % | 350 | 350 | ||||||||||||||||
1.40% 8.5-Year Senior Notes, Due 1/23/2026 (euro-denominated) | 1.53 | % | 796 | 855 | ||||||||||||||||
2.95% 10-Year Senior Notes, Due 9/19/2026 | — | 1,200 |
Effective interest rate at December 31, | December 31, | December 31, | ||||||||||||||||||
(Dollars in millions) | 2021 | 2021 | 2020 | |||||||||||||||||
1.45% 10-Year Senior Notes, Due 3/16/2027 (euro-denominated) | 1.66 | % | 568 | 611 | ||||||||||||||||
1.75% 7-Year Senior Notes, Due 4/15/2027 (euro-denominated) | 1.97 | % | 682 | 733 | ||||||||||||||||
3.20% 10-Year Senior Notes, Due 8/15/2027 | — | 750 | ||||||||||||||||||
0.50% 8.5-Year Senior Notes, Due 3/1/2028 (euro-denominated) | 0.77 | % | 910 | 977 | ||||||||||||||||
1.375% 12-Year Senior Notes, Due 9/12/2028 (euro-denominated) | 1.46 | % | 682 | 733 | ||||||||||||||||
1.750% 7-Year Senior Notes, Due 10/15/2028 | 1.89 | % | 700 | — | ||||||||||||||||
1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) | 2.08 | % | 796 | 855 | ||||||||||||||||
2.60% 10-Year Senior Notes, Due 10/1/2029 | 2.74 | % | 900 | 900 | ||||||||||||||||
4.497% 10-Year Senior Notes, Due 3/25/2030 | — | 1,100 | ||||||||||||||||||
0.80% 9-Year Senior Notes, Due 10/18/2030 (euro-denominated) | 0.89 | % | 1,990 | — | ||||||||||||||||
0.875% 12-Year Senior Notes, Due 10/1/2031 (euro-denominated) | 1.13 | % | 1,023 | 1,099 | ||||||||||||||||
2.00% 10-Year Senior Notes, Due 10/15/2031 | 2.23 | % | 1,200 | — | ||||||||||||||||
2.375% 12-Year Senior Notes, Due 4/15/2032 (euro-denominated) | 2.55 | % | 682 | 733 | ||||||||||||||||
1.125% 12-Year Senior Notes, Due 10/18/2033 (euro-denominated) | 1.21 | % | 1,706 | — | ||||||||||||||||
2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) | 2.94 | % | 796 | 855 | ||||||||||||||||
1.50% 20-Year Senior Notes, Due 10/1/2039 (euro-denominated) | 1.73 | % | 1,023 | 1,099 | ||||||||||||||||
2.80% 20-Year Senior Notes, Due 10/15/2041 | 2.90 | % | 1,200 | — | ||||||||||||||||
1.625% 20-Year Senior Notes, Due 10/18/2041 (euro-denominated) | 1.78 | % | 1,421 | — | ||||||||||||||||
5.30% 30-Year Senior Notes, Due 2/1/2044 | 5.37 | % | 400 | 400 | ||||||||||||||||
4.10% 30-Year Senior Notes, Due 8/15/2047 | 4.23 | % | 750 | 750 | ||||||||||||||||
1.875% 30-Year Senior Notes, Due 10/1/2049 (euro-denominated) | 1.98 | % | 1,137 | 1,222 | ||||||||||||||||
2.00% 30-Year Senior Notes, Due 10/18/2051 (euro-denominated) | 2.07 | % | 853 | — | ||||||||||||||||
Other | 76 | 5 | ||||||||||||||||||
Total borrowings at par value | 34,971 | 21,919 | ||||||||||||||||||
Fair value hedge accounting adjustments | — | 25 | ||||||||||||||||||
Unamortized discount | (117) | (102) | ||||||||||||||||||
Unamortized debt issuance costs | (184) | (114) | ||||||||||||||||||
Total borrowings at carrying value | 34,670 | 21,728 | ||||||||||||||||||
Finance lease liabilities | 200 | 7 | ||||||||||||||||||
Less: Short-term obligations and current maturities | 2,537 | 2,628 | ||||||||||||||||||
Long-term obligations | $ | 32,333 | $ | 19,107 |
(In millions except per share amounts) | 2018 | 2017 | 2016 | |||||||||
Income from Continuing Operations | $ | 2,938 | $ | 2,228 | $ | 2,025 | ||||||
Loss from Discontinued Operations | — | (3 | ) | (3 | ) | |||||||
Net Income | $ | 2,938 | $ | 2,225 | $ | 2,022 | ||||||
Basic Weighted Average Shares | 402 | 395 | 395 | |||||||||
Plus Effect of: | ||||||||||||
Stock options and restricted units | 4 | 3 | 2 | |||||||||
Diluted Weighted Average Shares | 406 | 398 | 397 | |||||||||
Basic Earnings per Share: | ||||||||||||
Continuing operations | $ | 7.31 | $ | 5.65 | $ | 5.13 | ||||||
Discontinued operations | — | (0.01 | ) | (0.01 | ) | |||||||
Basic Earnings per Share | $ | 7.31 | $ | 5.64 | $ | 5.12 | ||||||
Diluted Earnings per Share: | ||||||||||||
Continuing operations | $ | 7.24 | $ | 5.60 | $ | 5.10 | ||||||
Discontinued operations | — | (0.01 | ) | (0.01 | ) | |||||||
Diluted Earnings per Share | $ | 7.24 | $ | 5.59 | $ | 5.09 | ||||||
Antidilutive Stock Options Excluded from Diluted Weighted Average Shares | 2 | 2 | 2 |
Effective Interest Rate at December 31, | December 31, | December 31, | |||||||||
(Dollars in millions) | 2018 | 2018 | 2017 | ||||||||
Commercial Paper | 0.74 | % | $ | 693 | $ | 960 | |||||
Floating Rate 2-Year Senior Notes, Due 8/9/2018 (euro-denominated) | — | 721 | |||||||||
2.15% 3-Year Senior Notes, Due 12/14/2018 | — | 450 | |||||||||
2.40% 5-Year Senior Notes, Due 2/1/2019 | — | 900 | |||||||||
Floating Rate 2-Year Senior Notes, Due 7/24/2019 (euro-denominated) | 0.10 | % | 574 | 600 | |||||||
6.00% 10-Year Senior Notes, Due 3/1/2020 | 2.96 | % | 750 | 750 | |||||||
4.70% 10-Year Senior Notes, Due 5/1/2020 | 4.23 | % | 300 | 300 | |||||||
Floating Rate 2-Year Senior Notes, Due 8/7/2020 (euro-denominated) | 0.17 | % | 688 | — | |||||||
1.50% 5-Year Senior Notes, Due 12/1/2020 (euro-denominated) | 1.62 | % | 487 | 510 | |||||||
5.00% 10-Year Senior Notes, Due 1/15/2021 | 3.24 | % | 400 | 400 | |||||||
4.50% 10-Year Senior Notes, Due 3/1/2021 | 6.89 | % | 1,000 | 1,000 | |||||||
3.60% 10-Year Senior Notes, Due 8/15/2021 | 6.66 | % | 1,100 | 1,100 | |||||||
3.30% 7-Year Senior Notes, Due 2/15/2022 | 3.42 | % | 800 | 800 | |||||||
2.15% 7-Year Senior Notes, Due 7/21/2022 (euro-denominated) | 2.28 | % | 574 | 600 | |||||||
3.15% 10-Year Senior Notes, Due 1/15/2023 | 3.31 | % | 800 | 800 | |||||||
3.00% 7-Year Senior Notes, Due 4/15/2023 | 6.84 | % | 1,000 | 1,000 | |||||||
4.15% 10-Year Senior Notes, Due 2/1/2024 | 4.16 | % | 1,000 | 1,000 | |||||||
0.75% 8-Year Senior Notes, Due 9/12/2024 (euro-denominated) | 0.94 | % | 1,147 | 1,201 | |||||||
2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) | 2.10 | % | 734 | 768 | |||||||
3.65% 10-Year Senior Notes, Due 12/15/2025 | 3.77 | % | 350 | 350 | |||||||
1.40% 8.5-Year Senior Notes, Due 1/23/2026 (euro-denominated) | 1.53 | % | 802 | 840 | |||||||
2.95% 10-Year Senior Notes, Due 9/19/2026 | 3.19 | % | 1,200 | 1,200 | |||||||
1.45% 10-Year Senior Notes, Due 3/16/2027 (euro-denominated) | 1.66 | % | 574 | 600 | |||||||
3.20% 10-Year Senior Notes, Due 8/15/2027 | 3.39 | % | 750 | 750 | |||||||
1.375% 12-Year Senior Notes, Due 9/12/2028 (euro-denominated) | 1.46 | % | 688 | 721 | |||||||
1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) | 2.08 | % | 802 | 840 | |||||||
2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) | 2.94 | % | 802 | 840 | |||||||
5.30% 30-Year Senior Notes, Due 2/1/2044 | 5.37 | % | 400 | 400 | |||||||
4.10% 30-Year Senior Notes, Due 8/15/2047 | 4.23 | % | 750 | 750 | |||||||
Other | 21 | 24 | |||||||||
Total Borrowings at Par Value | 19,186 | 21,175 | |||||||||
Fair Value Hedge Accounting Adjustments | (93 | ) | (70 | ) | |||||||
Unamortized Discount, Net | (21 | ) | (2 | ) | |||||||
Unamortized Debt Issuance Costs | (82 | ) | (95 | ) | |||||||
Total Borrowings at Carrying Value | 18,990 | 21,008 | |||||||||
Less: Short-term Obligations and Current Maturities | 1,271 | 2,135 | |||||||||
Long-term Obligations | $ | 17,719 | $ | 18,873 |
(In millions) | Borrowings | Finance Lease Liabilities | ||||||||||||
2022 | $ | 2,522 | $ | 15 | ||||||||||
2023 | 5,396 | 12 | ||||||||||||
2024 | 4,138 | 12 | ||||||||||||
2025 | 2,610 | 12 | ||||||||||||
2026 | 797 | 12 | ||||||||||||
2027 and thereafter | 19,508 | 137 | ||||||||||||
$ | 34,971 | $ | 200 |
(In millions) | ||||
2019 | $ | 1,271 | ||
2020 | 2,229 | |||
2021 | 2,504 | |||
2022 | 1,377 | |||
2023 | 1,801 | |||
2024 and Thereafter | 10,004 | |||
$ | 19,186 |
Aggregate Notional Amount | Pay Rate as of | ||||||||||
(Dollars in millions) | Pay Rate | December 31, 2018 | Receive Rate | ||||||||
4.50% Senior Notes due 2021 (a) | 1,000 | 1-month LIBOR + 3.4420% | 5.7913 | % | 4.50 | % | |||||
3.60% Senior Notes due 2021 | 1,100 | 1-month LIBOR + 2.5150% | 4.9701 | % | 3.60 | % | |||||
3.00% Senior Notes due 2023 (a) | 1,000 | 1-month LIBOR + 1.7640% | 4.2191 | % | 3.00 | % |
Note 11. |
(In millions) | ||||
2019 | $ | 192 | ||
2020 | 158 | |||
2021 | 118 | |||
2022 | 86 | |||
2023 | 58 | |||
2024 and Thereafter | 177 | |||
$ | 789 |
(In millions) | 2021 | 2020 | 2019 | |||||||||||||||||
Balance sheet | ||||||||||||||||||||
ROU assets | $ | 1,531 | $ | 775 | ||||||||||||||||
Operating lease liabilities - current | 266 | 184 | ||||||||||||||||||
Operating lease liabilities - noncurrent | 1,203 | 626 | ||||||||||||||||||
Statement of income | ||||||||||||||||||||
Operating lease costs | $ | 254 | $ | 224 | $ | 208 | ||||||||||||||
Variable lease costs | 66 | 49 | 41 | |||||||||||||||||
Statement of cash flows | ||||||||||||||||||||
Cash used in operating activities for payments of amounts included in the measurement of operating lease liabilities | $ | 288 | $ | 222 | $ | 208 | ||||||||||||||
Operating lease ROU assets obtained in exchange for new operating lease liabilities | 293 | 202 | 205 | |||||||||||||||||
Weighted average at end of year | ||||||||||||||||||||
Remaining operating lease term | 9.9 years | 6.3 years | 6.2 years | |||||||||||||||||
Discount rate | 2.6 | % | 3.4 | % | 4.0 | % |
(In millions) | ||||||||
2022 | $ | 303 | ||||||
2023 | 248 | |||||||
2024 | 193 | |||||||
2025 | 144 | |||||||
2026 | 120 | |||||||
2027 and thereafter | 650 | |||||||
Total lease payments | 1,658 | |||||||
Less: imputed interest | 189 | |||||||
Total operating lease liability | $ | 1,469 |
(In millions) | Currency Translation Adjustment | Unrealized Losses on Available-for- Sale Investments | Unrealized Losses on Hedging Instruments | Pension and Other Postretirement Benefit Liability Adjustment | Total | ||||||||||
Balance at December 31, 2017 | (1,755 | ) | (1 | ) | (50 | ) | (197 | ) | (2,003 | ) | |||||
Cumulative effect of accounting changes (Note 1) | (54 | ) | 1 | (11 | ) | (24 | ) | (88 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (434 | ) | — | — | 3 | (431 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive items | — | — | 9 | 15 | 24 | ||||||||||
Net other comprehensive items | (434 | ) | — | 9 | 18 | (407 | ) | ||||||||
Balance at December 31, 2018 | (2,243 | ) | — | (52 | ) | (203 | ) | (2,498 | ) |
(In millions) | Currency translation adjustment | Unrealized losses on hedging instruments | Pension and other postretirement benefit liability adjustment | Total | ||||||||||||||||||||||
Balance at December 31, 2020 | $ | (2,438) | $ | (91) | $ | (278) | $ | (2,807) | ||||||||||||||||||
Other comprehensive items before reclassifications | 373 | — | 36 | 409 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive items | — | 56 | 13 | 69 | ||||||||||||||||||||||
Net other comprehensive items | 373 | 56 | 49 | 478 | ||||||||||||||||||||||
Balance at December 31, 2021 | $ | (2,065) | $ | (35) | $ | (229) | $ | (2,329) |
December 31, | Quoted prices in active markets | Significant other observable inputs | Significant unobservable inputs | |||||||||||||||||||||||||||||
(In millions) | 2021 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash equivalents | $ | 2,210 | $ | 2,210 | $ | — | $ | — | ||||||||||||||||||||||||
Investments | 298 | 298 | — | — | ||||||||||||||||||||||||||||
Warrants | 15 | — | 15 | — | ||||||||||||||||||||||||||||
Insurance contracts | 181 | — | 181 | — | ||||||||||||||||||||||||||||
Derivative contracts | 36 | — | 36 | — | ||||||||||||||||||||||||||||
Total assets | $ | 2,740 | $ | 2,508 | $ | 232 | $ | — | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative contracts | $ | 1 | $ | — | $ | 1 | $ | — | ||||||||||||||||||||||||
Contingent consideration | 317 | — | — | 317 | ||||||||||||||||||||||||||||
Total liabilities | $ | 318 | $ | — | $ | 1 | $ | 317 |
December 31, | Quoted Prices in Active Markets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(In millions) | 2018 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 769 | $ | 769 | $ | — | $ | — | ||||||||
Bank time deposits | 2 | 2 | — | — | ||||||||||||
Investments in mutual funds and other similar instruments | 10 | 10 | — | — | ||||||||||||
Warrants | 8 | — | 8 | — | ||||||||||||
Insurance contracts | 113 | — | 113 | — | ||||||||||||
Derivative contracts | 31 | — | 31 | — | ||||||||||||
Total Assets | $ | 933 | $ | 781 | $ | 152 | $ | — | ||||||||
Liabilities | ||||||||||||||||
Derivative contracts | $ | 145 | $ | — | $ | 145 | $ | — | ||||||||
Contingent consideration | 37 | — | — | 37 | ||||||||||||
Total Liabilities | $ | 182 | $ | — | $ | 145 | $ | 37 |
December 31, | Quoted Prices in Active Markets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(In millions) | 2017 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 22 | $ | 22 | $ | — | $ | — | ||||||||
Bank time deposits | 2 | 2 | — | — | ||||||||||||
Investments in mutual funds and other similar instruments | 13 | 13 | — | — | ||||||||||||
Warrants | 2 | — | 2 | — | ||||||||||||
Insurance contracts | 116 | — | 116 | — | ||||||||||||
Derivative contracts | 10 | — | 10 | — | ||||||||||||
Total Assets | $ | 165 | $ | 37 | $ | 128 | $ | — | ||||||||
Liabilities | ||||||||||||||||
Derivative contracts | $ | 139 | $ | — | $ | 139 | $ | — | ||||||||
Contingent consideration | 35 | — | — | 35 | ||||||||||||
Total Liabilities | $ | 174 | $ | — | $ | 139 | $ | 35 |
December 31, | Quoted prices in active markets | Significant other observable inputs | Significant unobservable inputs | |||||||||||||||||||||||||||||
(In millions) | 2020 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash equivalents | $ | 8,971 | $ | 8,971 | $ | — | $ | — | ||||||||||||||||||||||||
Investments | 21 | 21 | — | — | ||||||||||||||||||||||||||||
Warrants | 7 | — | 7 | — | ||||||||||||||||||||||||||||
Insurance contracts | 157 | — | 157 | — | ||||||||||||||||||||||||||||
Derivative contracts | 28 | — | 28 | — | ||||||||||||||||||||||||||||
Total assets | $ | 9,184 | $ | 8,992 | $ | 192 | $ | — | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative contracts | $ | 132 | $ | — | $ | 132 | $ | — | ||||||||||||||||||||||||
Contingent consideration | 70 | — | — | 70 | ||||||||||||||||||||||||||||
Total liabilities | $ | 202 | $ | — | $ | 132 | $ | 70 |
(In millions) | 2018 | 2017 | ||||||
Contingent Consideration | ||||||||
Beginning Balance | $ | 35 | $ | 6 | ||||
Acquisitions | 11 | 17 | ||||||
Payments | (8 | ) | (3 | ) | ||||
Change in fair value included in earnings | (1 | ) | 15 | |||||
Ending Balance | $ | 37 | $ | 35 |
(In millions) | 2021 | 2020 | ||||||||||||
Contingent consideration | ||||||||||||||
Beginning balance | $ | 70 | $ | 55 | ||||||||||
Acquisitions (including assumed balances) | 403 | 28 | ||||||||||||
Payments | (109) | (4) | ||||||||||||
Changes in fair value included in earnings | (47) | (9) | ||||||||||||
Ending balance | $ | 317 | $ | 70 |
December 31, | December 31, | |||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Notional amount | ||||||||||||||
Interest rate swaps - fair value hedges | $ | — | $ | 1,000 | ||||||||||
Cross-currency interest rate swaps - designated as net investment hedges | 900 | 900 | ||||||||||||
Currency exchange contracts | 2,149 | 5,206 |
December 31, | December 31, | |||||||
(In millions) | 2018 | 2017 | ||||||
Notional Amount | ||||||||
Interest rate swaps (described in Note 10) | $ | 3,100 | $ | 3,100 | ||||
Cross-currency interest rate swaps - designated as net investment hedges | 1,500 | — | ||||||
Currency exchange contracts | 3,424 | 2,921 |
Fair value – assets | Fair value – liabilities | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||
(In millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||
Interest rate swaps (a) | $ | — | $ | 25 | $ | — | $ | — | ||||||||||||||||||
Cross-currency interest rate swaps (a) | 25 | — | — | 46 | ||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||
Currency exchange contracts (b) | 11 | 3 | 1 | 86 | ||||||||||||||||||||||
Total derivatives | $ | 36 | $ | 28 | $ | 1 | $ | 132 |
Fair Value – Assets | Fair Value – Liabilities | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
(In millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||||||
Interest rate swaps (a) | $ | — | $ | — | $ | 129 | $ | 124 | ||||||||
Cross-currency interest rate swaps (b) | 28 | — | — | — | ||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||
Currency exchange contracts (c) | 3 | 10 | 16 | 15 | ||||||||||||
Total Derivatives | $ | 31 | $ | 10 | $ | 145 | $ | 139 |
Carrying amount of the hedged liability | Cumulative amount of fair value hedging adjustment - increase (decrease) included in carrying amount of liability | |||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||
(In millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Long-term obligations | $ | — | $ | 1,020 | $ | — | $ | 25 |
Carrying Amount of the Hedged Liability | Cumulative Amount of Fair Value Hedging Adjustment - Increase (Decrease) Included in Carrying Amount of Liability (d) | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
(In millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Long-term Obligations | $ | 3,291 | $ | 3,309 | $ | (93 | ) | $ | (70 | ) |
Gain (loss) recognized | ||||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Fair value hedging relationships | ||||||||||||||
Interest rate swaps | ||||||||||||||
Hedged long-term obligations - included in other income/(expense) | $ | 25 | $ | (38) | ||||||||||
Derivatives designated as hedging instruments - included in other income/(expense) | (3) | 38 | ||||||||||||
Derivatives designated as cash flow hedges | ||||||||||||||
Interest rate swaps | ||||||||||||||
Included in unrealized losses on hedging instruments within other comprehensive items | — | (85) | ||||||||||||
Amount reclassified from accumulated other comprehensive items to other income/(expense) | (73) | (59) | ||||||||||||
Financial instruments designated as net investment hedges | ||||||||||||||
Foreign currency-denominated debt | ||||||||||||||
Included in currency translation adjustment within other comprehensive items | 922 | (873) | ||||||||||||
Cross-currency interest rate swaps | ||||||||||||||
Included in currency translation adjustment within other comprehensive items | 71 | (79) | ||||||||||||
Included in other income/(expense) | 8 | 11 | ||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||
Currency exchange contracts | ||||||||||||||
Included in cost of product revenues | 12 | (17) | ||||||||||||
Included in other income/(expense) | 162 | (81) | ||||||||||||
Cross-currency interest rate swaps | ||||||||||||||
Included in other income/(expense) | — | (9) |
Gain (Loss) Recognized | ||||||||
(In millions) | 2018 | 2017 | ||||||
Fair Value Hedging Relationships | ||||||||
Interest rate swaps | ||||||||
Hedged long-term obligations - included in other expense, net | $ | (5 | ) | $ | (14 | ) | ||
Derivatives designated as hedging instruments - included in other expense, net | 7 | 19 | ||||||
Derivatives Designated as Cash Flow Hedges | ||||||||
Interest rate swaps | ||||||||
Amount reclassified from accumulated other comprehensive items to other expense, net | (12 | ) | (12 | ) | ||||
Derivatives Designated as Net Investment Hedges | ||||||||
Foreign currency-denominated debt | ||||||||
Included in currency translation adjustment within other comprehensive items | 336 | (664 | ) | |||||
Cross-currency interest rate swaps | ||||||||
Included in currency translation adjustment within other comprehensive items | 28 | — | ||||||
Included in other expense, net | 21 | — | ||||||
Derivatives Not Designated as Hedging Instruments | ||||||||
Currency exchange contracts | ||||||||
Included in cost of revenues | 2 | (1 | ) | |||||
Included in other expense, net | 37 | 92 |
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||
(In millions) | value | value | value | value | ||||||||||||||||||||||
Senior notes | $ | 32,072 | $ | 33,449 | $ | 21,723 | $ | 24,653 | ||||||||||||||||||
Commercial paper | 2,522 | 2,522 | — | — | ||||||||||||||||||||||
Other | 76 | 76 | 5 | 5 | ||||||||||||||||||||||
$ | 34,670 | $ | 36,047 | $ | 21,728 | $ | 24,658 |
December 31, 2018 | December 31, 2017 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
(In millions) | Value | Value | Value | Value | ||||||||||||
Notes Receivable | $ | 92 | $ | 92 | $ | 89 | $ | 93 | ||||||||
Debt Obligations: | ||||||||||||||||
Senior notes | $ | 18,276 | $ | 18,322 | $ | 20,024 | $ | 20,639 | ||||||||
Commercial paper | 693 | 693 | 960 | 960 | ||||||||||||
Other | 21 | 21 | 24 | 24 | ||||||||||||
$ | 18,990 | $ | 19,036 | $ | 21,008 | $ | 21,623 |
(In millions) | 2018 | 2017 | 2016 | |||||||||
Cash Paid For: | ||||||||||||
Interest | $ | 687 | $ | 533 | $ | 458 | ||||||
Income Taxes | 591 | 479 | 663 | |||||||||
Non-cash Investing and Financing Activities | ||||||||||||
Declared but unpaid dividends | 69 | 61 | 60 | |||||||||
Issuance of stock upon vesting of restricted stock units | 170 | 125 | 127 | |||||||||
Fair value of investments contributed to defined benefit plans | — | — | 16 |
(In millions) | 2021 | 2020 | 2019 | |||||||||||||||||
Cash paid for: | ||||||||||||||||||||
Interest | $ | 555 | $ | 471 | $ | 790 | ||||||||||||||
Income taxes | 2,182 | 1,324 | 896 | |||||||||||||||||
Non-cash investing and financing activities | ||||||||||||||||||||
Acquired but unpaid property, plant and equipment | 379 | 347 | 150 | |||||||||||||||||
Fair value of equity awards exchanged | 43 | — | — | |||||||||||||||||
Fair value of acquisition contingent consideration | 183 | — | — | |||||||||||||||||
Finance lease ROU assets obtained in exchange for new finance lease liabilities | 15 | 5 | 1 | |||||||||||||||||
Declared but unpaid dividends | 104 | 89 | 77 | |||||||||||||||||
Issuance of stock upon vesting of restricted stock units | 265 | 217 | 182 |
December 31, | December 31, | |||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Cash and cash equivalents | $ | 4,477 | $ | 10,325 | ||||||||||
Restricted cash included in other current assets | 13 | 10 | ||||||||||||
Restricted cash included in other assets | 1 | 1 | ||||||||||||
Cash, cash equivalents and restricted cash | $ | 4,491 | $ | 10,336 |
December 31, | December 31, | |||||||
(In millions) | 2018 | 2017 | ||||||
Cash and Cash Equivalents | $ | 2,103 | $ | 1,335 | ||||
Restricted Cash Included in Other Current Assets | 12 | 24 | ||||||
Restricted Cash Included in Other Assets | 2 | 2 | ||||||
Cash, Cash Equivalents and Restricted Cash | $ | 2,117 | $ | 1,361 |
(In millions) | Cost of Revenues | Selling, General and Administrative Expenses | Restructuring and Other Costs, Net | Total | ||||||||||||
Life Sciences Solutions | $ | 4 | $ | 12 | $ | (17 | ) | $ | (1 | ) | ||||||
Analytical Instruments | 3 | 8 | 28 | 39 | ||||||||||||
Specialty Diagnostics | — | 3 | (1 | ) | 2 | |||||||||||
Laboratory Products and Services | 5 | 16 | 31 | 52 | ||||||||||||
Corporate | — | (10 | ) | 9 | (1 | ) | ||||||||||
$ | 12 | $ | 29 | $ | 50 | $ | 91 |
(In millions) | 2021 | 2020 | 2019 | |||||||||||||||||
Life Sciences Solutions | $ | 129 | $ | 34 | $ | 24 | ||||||||||||||
Analytical Instruments | 6 | 26 | 14 | |||||||||||||||||
Specialty Diagnostics | 18 | 9 | (471) | |||||||||||||||||
Laboratory Products and Biopharma Services | 35 | 23 | 17 | |||||||||||||||||
Corporate | 9 | 7 | 3 | |||||||||||||||||
$ | 197 | $ | 99 | $ | (413) |
(In millions) | Cost of Revenues | Selling, General and Administrative Expenses | Restructuring and Other Costs, Net | Total | ||||||||||||
Life Sciences Solutions | $ | 1 | $ | 29 | $ | (16 | ) | $ | 14 | |||||||
Analytical Instruments | 31 | (2 | ) | 30 | 59 | |||||||||||
Specialty Diagnostics | 1 | (2 | ) | 39 | 38 | |||||||||||
Laboratory Products and Services | 90 | 61 | 41 | 192 | ||||||||||||
Corporate | — | (8 | ) | 3 | (5 | ) | ||||||||||
$ | 123 | $ | 78 | $ | 97 | $ | 298 |
(In millions) | Cost of Revenues | Selling, General and Administrative Expenses | Restructuring and Other Costs, Net | Total | ||||||||||||
Life Sciences Solutions | $ | 31 | $ | 36 | $ | 88 | $ | 155 | ||||||||
Analytical Instruments | 63 | 46 | 68 | 177 | ||||||||||||
Specialty Diagnostics | — | — | 15 | 15 | ||||||||||||
Laboratory Products and Services | 8 | 1 | 17 | 26 | ||||||||||||
Corporate | — | 21 | 1 | 22 | ||||||||||||
$ | 102 | $ | 104 | $ | 189 | $ | 395 |
(In millions) | Severance | Abandonment of Excess Facilities | Other (a) | Total | ||||||||||||
Balance at December 31, 2015 | $ | 15 | $ | 13 | $ | 3 | $ | 31 | ||||||||
Costs incurred in 2016 (c) | 109 | 46 | 12 | 167 | ||||||||||||
Reserves reversed (b) | (2 | ) | — | (1 | ) | (3 | ) | |||||||||
Payments | (83 | ) | (27 | ) | (12 | ) | (122 | ) | ||||||||
Currency translation | (1 | ) | — | — | (1 | ) | ||||||||||
Balance at December 31, 2016 | 38 | 32 | 2 | 72 | ||||||||||||
Costs incurred in 2017 (d) | 62 | 27 | 17 | 106 | ||||||||||||
Reserves reversed (b) | (9 | ) | — | — | (9 | ) | ||||||||||
Payments | (62 | ) | (19 | ) | (12 | ) | (93 | ) | ||||||||
Currency translation | 1 | — | (1 | ) | — | |||||||||||
Balance at December 31, 2017 | 30 | 40 | 6 | 76 | ||||||||||||
Costs incurred in 2018 (e) | 51 | 33 | 18 | 102 | ||||||||||||
Reserves reversed (b) | (7 | ) | (4 | ) | (3 | ) | (14 | ) | ||||||||
Payments | (39 | ) | (27 | ) | (17 | ) | (83 | ) | ||||||||
Currency translation | (1 | ) | — | — | (1 | ) | ||||||||||
Balance at December 31, 2018 | $ | 34 | $ | 42 | $ | 4 | $ | 80 |
Total (a) |
Balance at December 31, 2018 | $ | 80 | ||||||
Cumulative effect of accounting change (b) |
(28) | |||||
Net restructuring charges incurred in 2019 (c) |
52 | |||||
(69) | ||||||||
Currency translation | (1) | |||||||
Balance at December 31, 2019 | 34 | |||||||
Net restructuring charges incurred in 2020 (d) | 51 | |||||||
Payments | (57) | |||||||
Currency translation | (7) | |||||||
Balance at December 31, 2020 | 21 | |||||||
Net restructuring charges incurred in 2021 (e) | 37 | |||||||
Payments | (40) | |||||||
Currency translation | (1) | |||||||
Balance at December 31, 2021 | $ | 17 |
2018 | ||||||||||||||||
(In millions except per share amounts) | First (a) | Second (b) | Third (c) | Fourth (d) | ||||||||||||
Revenues | $ | 5,853 | $ | 6,078 | $ | 5,920 | $ | 6,507 | ||||||||
Gross Profit | 2,580 | 2,738 | 2,615 | 2,924 | ||||||||||||
Net Income | 579 | 752 | 709 | 898 | ||||||||||||
Earnings per Share: | ||||||||||||||||
Basic | 1.44 | 1.87 | 1.76 | 2.23 | ||||||||||||
Diluted | 1.43 | 1.85 | 1.75 | 2.22 | ||||||||||||
Cash Dividend Declared per Common Share | 0.17 | 0.17 | 0.17 | 0.17 |
2017 | ||||||||||||||||
(In millions except per share amounts) | First (a) | Second (b) | Third (c) | Fourth (d) | ||||||||||||
Revenues | $ | 4,765 | $ | 4,990 | $ | 5,116 | $ | 6,047 | ||||||||
Gross Profit | 2,193 | 2,284 | 2,300 | 2,671 | ||||||||||||
Net Income | 551 | 612 | 534 | 528 | ||||||||||||
Earnings per Share: | ||||||||||||||||
Basic | 1.41 | 1.57 | 1.35 | 1.32 | ||||||||||||
Diluted | 1.40 | 1.56 | 1.34 | 1.30 | ||||||||||||
Cash Dividend Declared per Common Share | 0.15 | 0.15 | 0.15 | 0.15 |