Thermo Fisher Scientific (TMO) 10-Q 30 Oct 09 2009 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
	9 Months Ended Sep. 26, 2009	Jun. 28, 2008
Document and Entity
Entity Registrant Name	Thermo Fisher Scientific Inc.
Entity Central Index Key	0000097745
Document Type	10-Q
Document Period End Date	2009-09-26
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$23,145,151,000
Entity Common Stock, Shares Outstanding	408,314,630

Consolidated Balance Sheet

Consolidated Balance Sheet (USD $)
In Millions	Sep. 26, 2009	Dec. 31, 2008
Current Assets:
Cash and cash equivalents	1745.7	1280.5
Short-term investments, at quoted market value (amortized cost of $11.4 and $8.5)	10.6	7.5
Accounts receivable, less allowances of $49.4 and $43.1	1,482	1478.1
Inventories:
Raw materials	291.8	310.6
Work in process	123.5	120.3
Finished goods	754.3	740.5
Deferred tax assets	162.3	161.7
Other current assets	227.4	246.7
Total current assets	4797.6	4345.9
Property, Plant and Equipment, at Cost	1,976	1854.8
Less: Accumulated depreciation and amortization	-703.7	-579.5
Property, Plant and Equipment, at Cost, Net	1272.3	1275.3
Acquisition-related Intangible Assets, net of Accumulated Amortization of $1,902.3 and $1,433.2	6,144	6423.2
Other Assets	416	367.9
Goodwill	8788.6	8677.7
Total Assets	21418.5	21,090
Current Liabilities:
Short-term obligations and current maturities of long-term obligations	70.1	14.8
Accounts payable	593.5	539.5
Accrued payroll and employee benefits	280.1	296.2
Accrued income taxes	26.1	32.9
Deferred revenue	139.5	135.3
Other accrued expenses	484.5	521.5
Total current liabilities	1593.8	1540.2
Deferred Income Taxes	1873.8	1994.2
Other Long-term Liabilities	586.9	601.7
Long-term Obligations	1952.2	2003.2
Incremental Convertible Debt Obligation	12.4	24.2
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; 422,829,078 and 421,791,009 shares issued	422.8	421.8
Capital in excess of par value	11394.5	11301.3
Retained earnings	4077.5	3500.5
Treasury stock at cost, 14,514,448 and 3,825,245 shares	-574.2	-151.3
Accumulated other comprehensive items	78.8	-145.8
Total shareholders' equity	15399.4	14926.5
Total Liabilities & Shareholders' Equity	21418.5	$21,090

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) (USD $)
In Millions, except Share data	Sep. 26, 2009	Dec. 31, 2008
Consolidated Balance Sheet Parenthetical [Abstract]
Amortized Cost of Short-term Investments	11.4	8.5
Accounts Receivable Allowances	49.4	43.1
Accumulated Amortization of Acquisition-related Intangible Assets	1902.3	1433.2
Preferred Stock, $100 Par Value - Par Value	100	100
Preferred Stock, $100 Par Value - Shares Authorized	50,000	50,000
Preferred Stock, $100 Par Value - Shares Issued	0	0
Common Stock, $1 Par Value - Par Value	1	1
Common Stock, $1 Par Value - Shares Authorized	1,200,000,000	1,200,000,000
Common Stock, $1 Par Value - Shares Issued	422,829,078	421,791,009
Treasury Stock at Cost - Shares	14,514,448	3,825,245

Consolidated Statement of Incom

Consolidated Statement of Income (USD $)
In Millions	3 Months Ended Sep. 26, 2009	3 Months Ended Sep. 27, 2008	9 Months Ended Sep. 26, 2009	9 Months Ended Sep. 27, 2008
Revenues:
Product revenues	2140.6	2167.2	6129.9	6612.7
Service revenues	390.5	420.9	1140.4	1,239
Total revenues	2531.1	2588.1	7270.3	7851.7
Costs and Operating Expenses:
Cost of product revenues	1285.8	1313.4	3717.8	3982.8
Cost of service revenues	234.1	241.9	666.1	729.7
Selling, general and administrative expenses	662.1	669.3	1,948	2029.2
Research and development expenses	60.5	61.8	176.8	188.2
Restructuring and other costs, net	13.1	15.4	37	14.9
Total costs and operating expenses	2255.6	2301.8	6545.7	6944.8
Operating Income	275.5	286.3	724.6	906.9
Other Expense, Net	-28.6	-27.7	-78.4	(74)
Income from Continuing Operations Before Provision for Income Taxes	246.9	258.6	646.2	832.9
Provision for Income Taxes	-25.7	-43.7	-69.2	(145)
Income from Continuing Operations	221.2	214.9	577	687.9
Gain on Disposal of Discontinued Operations (net of income tax provision of $1.8 and $3.7)	0	3.2	0	6
Net Income	221.2	218.1	$577	693.9
Earnings per Share from Continuing Operations:
Earnings per share from continuing operations - basic	0.54	0.51	1.39	1.64
Earnings per share from continuing operations - diluted	0.53	0.49	1.36	1.57
Earnings per Share:
Earnings per share - basic	0.54	0.52	1.39	1.66
Earnings per share - diluted	0.53	0.5	1.36	1.58
Weighted Average Shares:
Weighted average shares - basic	407.9	419	413.6	418.2
Weighted average shares - diluted	420.2	438.3	423	437.1

1_Consolidated Statement of Inc

Consolidated Statement of Income (Parenthetical) (USD $)
In Millions	3 Months Ended Sep. 26, 2009	3 Months Ended Sep. 27, 2008	9 Months Ended Sep. 26, 2009	9 Months Ended Sep. 27, 2008
Consolidated Income Statement Parenthetical [Abstract]
Provision for Income Taxes on Gain on Disposal of Discontinued Operations	$0	1.8	$0	3.7

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (USD $)
In Millions	9 Months Ended Sep. 26, 2009	9 Months Ended Sep. 27, 2008
Operating Activities:
Net Income	$577	693.9
Gain on Disposal of Discontinued Operations	0	(6)
Income from Continuing Operations	577	687.9
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization	580.1	598.3
Change in deferred income taxes	-182.6	(118)
Non-cash stock-based compensation	56.4	43.5
Non-cash interest expense on convertible debt	17.1	16.4
Tax benefits from stock-based compensation awards	-1.7	-20.1
Other non-cash expenses, net	44.5	23.1
Changes in assets and liabilities, excluding the effects of acquisitions and dispositions:
Change in accounts receivable	47.3	-73.2
Change in inventories	54.5	-97.6
Change in other assets	17.3	-25.3
Change in accounts payable	31.5	-43.5
Change in other liabilities	-82.6	-14.2
Contributions to retirement plans	-37.3	-16.3
Net cash provided by continuing operations	1121.5	961
Net cash used in discontinued operations	-0.9	-1.1
Net cash provided by operating activities	1120.6	959.9
Investing Activities:
Acquisitions, net of cash acquired	-155.5	-153.1
Purchase of property, plant and equipment	-125.8	-159.8
Proceeds from sale of property, plant and equipment	9.6	9.8
Purchase of available-for-sale investments	0	-0.1
Proceeds from sale of available-for-sale investments	0.6	0.6
Proceeds from sale of businesses, net of cash divested	2.7	3.5
Increase in other assets	-8.4	-8.6
Net cash used in continuing operations	-276.8	-307.7
Net cash provided by discontinued operations	0	7.9
Net cash used in investing activities	-276.8	-299.8
Financing Activities:
Decrease in short-term notes payable	-13.4	-19.3
Purchases of company common stock	-414.6	(102)
Net proceeds from issuance of company common stock	17.5	81.7
Tax benefits from stock-based compensation awards	1.7	20.1
Borrowings (redemption and repayment) of long-term obligations	3.7	-2.6
Net cash used in financing activities	-405.1	-22.1
Exchange Rate Effect on Cash of Continuing Operations	26.5	-22.8
Increase in Cash and Cash Equivalents	465.2	615.2
Cash and Cash Equivalents at Beginning of Period	1280.5	625.1
Cash and Cash Equivalents at End of Period	1745.7	1240.3
Supplemental Cash Flow Information
Fair value of assets of acquired businesses	179.7	191.4
Cash paid for acquired businesses	-147.2	-141.7
Liabilities assumed of acquired businesses	32.5	49.7
Issuance of restricted stock	1.1	21.9
Issuance of stock upon vesting of restricted stock units	$7	$20

General

General
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Financial Statements [Abstract]
General	1.GeneralThe interim consolidated financial statements presented herein have been prepared by Thermo Fisher Scientific Inc. (the company or Thermo Fisher), are unaudited and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair statement of the financial position at September 26, 2009, the results of operations for the three- and nine-month periods ended September 26, 2009, and September 27, 2008, and the cash flows for the nine-month periods ended September 26, 2009, and September 27, 2008. The company has evaluated events and transactions occurring after the balance sheet date through October 30, 2009 for recognition or disclosure in the consolidated financial statements and notes. Interim results are not necessarily indicative of results for a full year.The consolidated balance sheet presented as of December 31, 2008, has been derived from the audited consolidated financial statements as of that date, as adjusted for adoption of a new accounting pronouncement, discussed below. The consolidated financial statements and notes are presented as permitted by Form 10-Q and do not contain all of the information that is included in the annual financial statements and notes of the company. The consolidated financial statements and notes included in this report should be read in conjunction with the financial statements and notes included in the companys Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on July 9, 2009. In May 2008, the FASB issued new rules on the accounting for convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement of such debt instruments. The rules require the issuers of certain convertible debt instruments that may be settled in cash (or other assets) on conversion to separately account for the liability (debt) and equity (conversion option) components in a manner that reflects the issuer's nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. The new guidance was effective for the company beginning January 1, 2009. The rules required adjustment of prior periods to conform to current accounting. The companys cash payments for interest have not been affected, but adoption increased the companys reported interest expense for all periods presented in a manner that reflects interest rates of similar non-convertible debt.The incremental effects of applying this convertible debt accounting on individual line items in the consolidated balance sheet at December 31, 2008, were as follows: (Dollars in millions) Before Adoption Cumulative Effect of Adoption As Adjusted Deferred Income Taxes $ 1,978.0 $ 16.2 $ 1,994.2 Long-term Obligations 2,043.5 (40.3) 2,003.2 Incremental Convertible Debt Obligation 24.2 24.2 Capital in Excess of Par Value 11,273.2 28.1 11,301.3 Retained Earnings 3,528.7 (28.2) 3,500.5 When any of the convertible debt instruments are convertible at the balance sheet date, the excess of the amount of cash required to be paid to the holder upon conversion over the current carrying amount of the long-term o

Acquisitions

Acquisitions
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Financial Statements [Abstract]
Acquisitions	2.Acquisitions In December 2007, the FASB revised the accounting rules concerning business combinations. This revised guidance does the following: requires the acquiring entity in a business combination to recognize all (and only) the assets acquired and liabilities assumed in the transaction; establishes the acquisition-date fair value as the measurement objective for all assets acquired and liabilities assumed; and requires the acquirer to disclose certain information to enable users to understand the nature and financial effect of the business combination. The rules require that cash outflows such as transaction costs and post-acquisition restructuring be charged to expense instead of capitalized as a cost of the acquisition. Contingent purchase price will be recorded at its initial fair value and then re-measured as time passes through adjustments to net income. The revised guidance was effective for the company, on a prospective basis, beginning January 1, 2009. The company applied this revised accounting to the acquisitions discussed below. There was no material impact upon adoption; however, the rule changes may materially affect the accounting for any future business combinations. In April 2009, the Laboratory Products and Services segment acquired Biolab, an Australia-based provider of analytical instruments, life science consumables and laboratory equipment, for AUD 180 million (USD $132 million), net of cash acquired. The acquisition broadened the geographic reach of the companys customer channels. Revenue of Biolab totaled AUD 178 million in its fiscal year ended May 2009. The purchase price exceeded the fair value of the acquired net assets and, accordingly, $62 million was allocated to goodwill, none of which is tax deductible.In addition, in the first nine months of 2009, the Analytical Technologies segment acquired a culture media manufacturer and distributor in Malaysia and Singapore and the controlling interest in a Mexico-based manufacturer and distributor of bulk weighing products; and the Laboratory Products and Services segment acquired a Spain-based distributor of laboratory instrumentation and equipment and a Sweden-based distributor of clinical chemistry analysis instruments. The aggregate consideration for these acquisitions was $17 million.The company paid contingent purchase price obligations of $10 million in the first nine months of 2009, for several acquisitions completed prior to 2009. The companys acquisitions have historically been made at prices above the fair value of the acquired assets, resulting in goodwill, due to expectations of synergies of combining the businesses. These synergies include elimination of redundant facilities, functions and staffing; use of the companys existing commercial infrastructure to expand sales of the acquired businesses products; and use of the commercial infrastructure of the acquired businesses to cost effectively expand sales of company products.Acquisitions have been accounted for using the purchase method of accounting, and the acquired companies results have been included in the accompanying financial statements from their respective dates of acquisition. Allocatio

Business Segment Information

Business Segment Information
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Financial Statements [Abstract]
Business Segment Information	3.Business Segment InformationThe companys continuing operations fall into two business segments: Analytical Technologies and Laboratory Products and Services. During the first quarter of 2009, the company transferred management responsibility and the related financial reporting and monitoring for a small product line between segments. The company has historically moved a product line between segments when a shift in strategic focus of either the product line or a segment more closely aligns the product line with a segment different than that in which it had previously been reported. Prior period segment information has been reclassified to reflect these transfers. Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, (In millions) 2009 2008 2009 2008 Revenue Analytical Technologies $ 1,018.6 $ 1,085.9 $ 2,960.7 $ 3,332.6 Laboratory Products and Services 1,631.3 1,610.4 4,653.6 4,836.1 Eliminations (118.8) (108.2) (344.0) (317.0) Consolidated revenues $ 2,531.1 $ 2,588.1 $ 7,270.3 $ 7,851.7 Segment Income Analytical Technologies (a) $ 202.7 $ 228.8 $ 577.6 $ 701.7 Laboratory Products and Services (a) 234.8 224.9 627.5 675.7 Subtotal reportable segments (a) 437.5 453.7 1,205.1 1,377.4 Cost of revenues charges (1.0) (1.9) (0.8) Selling, general and administrative (costs) income, net 0.3 (1.0) Restructuring and other (costs) income, net (13.1) (15.4) (37.0) (14.9) Amortization of acquisition-related intangible assets (148.2) (152.0) (440.6) (454.8) Consolidated operating income 275.5 286.3 724.6 906.9 Other expense, net (b) (28.6) (27.7) (78.4) (74.0) Income from continuing operations before provision for income taxes $ 246.9 $ 258.6 $ 646.2 $ 832.9 Depreciation Analytical Technologies $ 21.4 $ 21.9 $ 63.1 $ 66.2 Laboratory Products and Services 25.9 25.8 76.4 77.3 Consolidated depreciation $ 47.3 $ 47.7 $ 139.5 $ 143.5 (a) Represents operating income before certain charges/credits to cost of revenues and selling general and administrative expenses; restructuring and other costs, net and amortization of acquisition-related intangibles. (b) The company does not allocate other income and expense to its segments.

Other Expense, Net

Other Expense, Net
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Financial Statements [Abstract]
Other Expense, Net	4.Other Expense, NetAs discussed in Note 1, although the companys cash interest payments have not been affected, the adoption of the new convertible debt accounting guidance has increased the companys reported interest expense in a manner that reflects interest rates of similar non-convertible debt. The rule required adjustment of prior periods to conform to current accounting. The components of other expense, net, in the accompanying statement of income are as follows: Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, (In millions) 2009 2008 2009 2008 Interest Income $ 2.5 $ 14.9 $ 12.5 $ 40.1 Interest Expense (29.2) (39.7) (89.0) (117.5) Other Items, Net (1.9) (2.9) (1.9) 3.4 $ (28.6) $ (27.7) $ (78.4) $ (74.0)

Earnings Per Share

Earnings Per Share
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Financial Statements [Abstract]
Earnings per Share	5.Earnings per ShareBasic and diluted earnings per share were calculated as follows: Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, (In millions except per share amounts) 2009 2008 2009 2008 Income from Continuing Operations $ 221.2 $ 214.9 $ 577.0 $ 687.9 Gain on Disposal of Discontinued Operations 3.2 6.0 Net Income 221.2 218.1 577.0 693.9 Income Allocable to Participating Securities (0.1) (0.3) (0.4) (1.1) Net Income for Earnings per Share $ 221.1 $ 217.8 $ 576.6 $ 692.8 Basic Weighted Average Shares 407.9 419.0 413.6 418.2 Effect of: Convertible debentures 10.2 15.8 7.9 15.3 Stock options, restricted stock awards and warrants 2.1 3.5 1.5 3.6 Diluted Weighted Average Shares 420.2 438.3 423.0 437.1 Basic Earnings per Share: Continuing operations $ .54 $ .51 $ 1.39 $ 1.64 Discontinued operations .01 .01 $ .54 $ .52 $ 1.39 $ 1.66 Diluted Earnings per Share: Continuing operations $ .53 $ .49 $ 1.36 $ 1.57 Discontinued operations .01 .01 $ .53 $ .50 $ 1.36 $ 1.58 Options to purchase 7.0 million, 0.1 million, 13.1 million and 1.6 million shares of common stock were not included in the computation of diluted earnings per share for the third quarter of 2009 and 2008 and the first nine months of 2009 and 2008, respectively, because their effect would have been antidilutive.

Comprehensive Income and Shareh

Comprehensive Income and Shareholders' Equity
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Financial Statements [Abstract]
Comprehensive Income and Shareholders' Equity	6.Comprehensive Income and Shareholders EquityComprehensive income combines net income and other comprehensive items. Other comprehensive items represent certain amounts that are reported as components of shareholders equity in the accompanying balance sheet, including currency translation adjustments; unrealized gains and losses, net of tax, on available-for-sale investments and hedging instruments; and pension and other postretirement benefit liability adjustments. During the third quarter of 2009 and 2008, the company had comprehensive income of $296 million and $3 million, respectively. During the first nine months of 2009 and 2008, the company had comprehensive income of $802 million and $594 million, respectively. The third quarter and first nine months of 2009 were favorably affected by an increase in the cumulative translation adjustment of $73 million and $224 million, respectively, due to movements in currency exchange rates, the effects of which are recorded in shareholders equity. The third quarter and first nine months of 2008 were unfavorably affected by a decrease in the cumulative translation adjustment of $213 million and $99 million, respectively.

Stockbased Compensation Expense

Stockbased Compensation Expense
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Financial Statements [Abstract]
Stock-based Compensation Expense	7.Stock-based Compensation ExpenseThe components of pre-tax stock-based compensation are as follows: Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, (In millions) 2009 2008 2009 2008 Stock Option Awards $ 13.5 $ 9.8 $ 36.9 $ 25.8 Restricted Share/Unit Awards 7.1 6.0 19.5 17.7 Total Stock-based Compensation Expense $ 20.6 $ 15.8 $ 56.4 $ 43.5 Stock-based compensation expense is included in the accompanying statement of income as follows: Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, (In millions) 2009 2008 2009 2008 Cost of Revenues $ 1.3 $ 1.0 $ 4.7 $ 3.0 Selling, General and Administrative Expenses 18.8 14.4 50.0 39.3 Research and Development Expenses 0.5 0.4 1.7 1.2 Total Stock-based Compensation Expense $ 20.6 $ 15.8 $ 56.4 $ 43.5 No stock-based compensation expense has been capitalized in inventories due to immateriality.Unrecognized compensation cost related to unvested stock options and restricted stock totaled approximately $90.1 million and $31.9 million, respectively, as of September 26, 2009, and is expected to be recognized over weighted average periods of 2.3 years and 2.1 years, respectively.During the first nine months of 2009, the company made equity compensation grants to employees consisting of 1.0 million restricted shares/units and options to purchase 6.5 million shares.

Defined Benefit Pension Plans

Defined Benefit Pension Plans
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Financial Statements [Abstract]
Defined Benefit Pension Plans	8.Defined Benefit Pension PlansEmployees of a number of the companys non-U.S. and certain U.S. subsidiaries participate in defined benefit pension plans covering substantially all full-time employees at those subsidiaries. Some of the plans are unfunded, as permitted under the plans and applicable laws. The company also has a postretirement healthcare program in which certain employees are eligible to participate. The costs of the healthcare program are funded on a self-insured and insured-premium basis. Net periodic benefit costs for the companys pension plans include the following components: Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, (In millions) 2009 2008 2009 2008 Service Cost $ 2.7 $ 3.4 $ 7.7 $ 11.1 Interest Cost on Benefit Obligation 12.6 13.9 37.0 42.7 Expected Return on Plan Assets (13.1) (15.5) (38.0) (47.2) Amortization of Net Loss 0.4 0.4 1.2 1.2 Amortization of Prior Service Benefit 0.1 Settlement/Curtailment Gain (0.2) (18.5) Special Termination Benefits 0.3 0.2 Net Periodic Benefit Cost (Income) $ 2.6 $ 2.2 $ 8.1 $ (10.5) Net periodic benefit costs for the company's other postretirement benefit plans include the following components: Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, (In millions) 2009 2008 2009 2008 Service Cost $ 0.2 $ 0.2 $ 0.4 $ 0.6 Interest Cost on Benefit Obligation 0.4 0.5 1.2 1.5 Net Periodic Benefit Cost $ 0.6 $ 0.7 $ 1.6 $ 2.1

Fair Value Measurements

Fair Value Measurements
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Financial Statements [Abstract]
Fair Value Measurements	9.Fair Value MeasurementsThe company uses the market approach technique to value its financial instruments and there were no changes in valuation techniques during the nine months ended September 26, 2009. The companys financial assets and liabilities carried at fair value are primarily comprised of investments in money market funds, mutual funds holding publicly traded securities, derivative contracts used to hedge the companys currency risk and other investments in unit trusts and insurance contracts held as assets to satisfy outstanding retirement liabilities.The fair value accounting guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:Level 1: Quoted market prices in active markets for identical assets or liabilities that the company has the ability to access.Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data such as quoted prices, interest rates and yield curves.Level 3: Inputs are unobservable data points that are not corroborated by market data.The following table presents information about the companys financial assets and liabilities measured at fair value on a recurring basis as of September 26, 2009: September 26, Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (In millions) 2009 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 1,066.1 $ 1,066.1 $ $ Investments in mutual funds, unit trusts and other similar instruments 35.5 35.5 Cash surrender value of life insurance 28.1 28.1 Auction rate securities 5.4 5.4 Derivative contracts 3.3 3.3 Total Assets $ 1,138.4 $ 1,101.6 $ 31.4 $ 5.4 Liabilities Derivative contracts $ 0.2 $ $ 0.2 $ Total Liabilities $ 0.2 $ $ 0.2 $ The following table presents information about the companys financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2008: December 31, Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (In millions) 2008 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 560.8 $ 560.8 $ $ Investments in mutual funds, unit trusts and other similar instruments 24.0 24.0 Cash surrender value of life insurance 21.3 21.3 Auction rate securities 5.7 5.7 Marketable equity securities 1.0 1.0 Derivative contracts 3.3 3.3 Total Assets $ 616.1 $ 585.8 $ 24.6 $ 5.7 Liabilities Derivative contracts $ 4.0 $ $ 4.0 $ Total Liabilities $ 4.0 $ $ 4.0 $ The following table is a rollforward of the fair value, as determined by Level 3 inputs, of the company's auction rate securities, which are included in short-term investments on the consolidated balance sheet. Three Months Ended Nine Months Ended September 26, September 26, (In millions) 2009 2009 Beginning Balance $ 6.0 $ 5.7 Total impairment losses included in earnings (0.3) (0.3) Total unrealized losses included in other com

Warranty Obligations

Warranty Obligations
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Financial Statements [Abstract]
Warranty Obligations	10.Warranty ObligationsProduct warranties are included in other accrued expenses in the accompanying balance sheet. The changes in the carrying amount of warranty obligations are as follows: Nine Months Ended September 26, September 27, (In millions) 2009 2008 Beginning Balance $ 44.1 $ 50.6 Provision charged to income 25.6 25.8 Usage (31.3) (28.8) Acquisitions/divestitures 0.2 0.3 Adjustments to previously provided warranties, net 1.5 (1.7) Other, net (a) 0.8 (0.3) Ending Balance $ 40.9 $ 45.9 (a) Primarily represents the effects of currency translation.

Restructuring and Other Costs,

Restructuring and Other Costs, Net
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Financial Statements [Abstract]
Restructuring and Other Costs, Net	11.Restructuring and Other Costs, NetRestructuring costs in the nine months of 2009 in both segments primarily included charges for actions in response to the downturn in the economy and reduced revenues in several businesses, as well as abandoned facility costs at businesses that have been or are being consolidated. As of October 30, 2009, the company has identified restructuring actions that will result in additional charges of approximately $43 million, primarily in the remainder of 2009 and the first half of 2010.During the third quarter of 2009, the company recorded net restructuring and other costs by segment as follows: (In millions) Analytical Technologies Laboratory Products and Services Corporate Total Cost of Revenues $ 0.7 $ 0.3 $ $ 1.0 Selling, General and Administrative Expenses 1.6 (1.9) (0.3) Restructuring and Other Costs, Net 9.0 4.1 13.1 $ 11.3 $ 2.5 $ $ 13.8 During the first nine months of 2009, the company recorded net restructuring and other costs by segment as follows: (In millions) Analytical Technologies Laboratory Products and Services Corporate Total Cost of Revenues $ 1.2 $ 0.7 $ $ 1.9 Selling, General and Administrative Expenses 1.6 (0.6) 1.0 Restructuring and Other Costs, Net 22.1 13.1 1.8 37.0 $ 24.9 $ 13.2 $ 1.8 $ 39.9 The components of net restructuring and other costs by segment are as follows:Analytical TechnologiesThe Analytical Technologies segment recorded $11.3 million of net restructuring and other charges in the third quarter of 2009. The segment recorded charges to cost of revenues of $0.7 million for accelerated depreciation at facilities closing due to real estate consolidation, charges to selling, general and administrative expenses of $1.6 million for transaction costs related to the B.R.A.H.M.S. acquisition (Note 14) and $9.0 million of other costs, net. These other costs consisted of $8.5 million of cash costs, primarily associated with headcount reductions and facility consolidations in an effort to streamline operations, including $6.4 million of severance for approximately 80 employees primarily in manufacturing functions; $0.5 million of abandoned facility costs; and $1.6 million of other cash costs, primarily moving expenses associated with facility consolidations as well as other costs associated with restructuring actions. The segment also recorded non-cash costs of $0.5 million, primarily for asset write-downs at abandoned facilities.In the second quarter of 2009, this segment recorded $5.3 million of net restructuring and other charges. The segment recorded charges to cost of revenues of $0.5 million for accelerated depreciation at facilities closing due to real estate consolidation, and $4.8 million of other costs, net. These other costs consisted of $12.3 million of cash costs, primarily associated with headcount reductions and facility consolidations in an effort to streamline operations, including $8.7 million of severance for approximately 300 employees across all functions; $2.6 million of abandoned facility costs; and $1.0 million of other cash costs, primarily moving expenses associated wit

Litigation and Related Continge

Litigation and Related Contingencies
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Financial Statements [Abstract]
Litigation and Related Contingencies	12.Litigation and Related ContingenciesOn September 3, 2004, Applera Corporation, MDS Inc. and Applied Biosystems/MDS Scientific Instruments filed a lawsuit against the company in U.S. federal court. These plaintiffs alleged that the companys mass spectrometer systems, including its triple quadrupole and certain of its ion trap systems, infringe a patent of the plaintiffs. On December 8, 2004 and February 23, 2005, the company asserted in two lawsuits against a combination of Applera Corporation, MDS Inc. and Applied Biosystems/MDS Scientific Instruments that one or more of these parties infringe two patents of the company.During the third quarter of 2009, the company and the other parties settled all of the above matters on terms not material to the company, including no money being paid by either party to the other. There are various other lawsuits and claims pending against the company involving product liability, contract, commercial and other issues. In view of the companys financial condition and the accruals established for related matters, management does not believe that the ultimate liability, if any, related to these matters will have a material adverse effect on the companys financial condition, results of operations or cash flows.The company establishes a liability that is an estimate of amounts needed to pay damages in the future for events that have already occurred. The accrued liabilities are based on managements judgment as to the probability of losses and, where applicable, actuarially determined estimates. The reserve estimates are adjusted as additional information becomes known or payments are made.For product liability, workers compensation and other personal injury matters, the company accrues the most likely amount or at least the minimum of the range of probable loss when a range of probable loss can be estimated, including estimated defense costs. The company records estimated amounts due from insurers as an asset. Although the company believes that the amounts reserved and estimated recoveries are probable and appropriate based on available information, including actuarial studies of loss estimates, the process of estimating losses and insurance recoveries involves a considerable degree of judgment by management and the ultimate amounts could vary materially. For example, there are pending lawsuits with certain of the companys insurers concerning which states laws should apply to the insurance policies and how such laws affect the policies. Should these actions resolve unfavorably, the estimated amount due from insurers of $93 million would require an adjustment that could be material to the companys results of operations. Insurance contracts do not relieve the company of its primary obligation with respect to any losses incurred. The collectability of amounts due from its insurers is subject to the solvency and willingness of the insurer to pay, as well as the legal sufficiency of the insurance claims. Management monitors the financial condition and ratings of its insurers on an ongoing basis.The company is currently involved in various stages of investigation and remediation related to environmental matters, p

Recent Accounting Pronouncement

Recent Accounting Pronouncements
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Financial Statements [Abstract]
Recent Accounting Pronouncements	13.Recent Accounting Pronouncements In September 2006, the FASB issued a pronouncement concerning fair value measurement accounting. This guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The rule applies to other accounting pronouncements that require or permit fair value measurements but does not require any new fair value measurements. The pronouncement was effective for the companys monetary assets and liabilities in the first quarter of 2008 and for non-financial assets and liabilities beginning January 1, 2009. There was no material effect from adoption. In December 2007, the FASB issued new rules on noncontrolling interests in consolidated financial statements. The noncontrolling interest guidance changed the accounting for minority interests, which are reclassified as noncontrolling interests and classified as a component of equity. This guidance was effective for the company beginning January 1, 2009, and there was no effect from adoption. In March 2008, the FASB issued a pronouncement pertaining to disclosures about derivative instruments and hedging activities. This guidance requires disclosures of how and why an entity uses derivative instruments; how derivative instruments and related hedged items are accounted for; and how derivative instruments and related hedged items affect an entitys financial position, financial performance and cash flows. The rule was effective for the company beginning January 1, 2009, and there was no material effect from adoption. In April 2009, the FASB issued guidance on the recognition and presentation of other-than-temporary impairments. This guidance amends the prior other-than-temporary impairment guidance for certain debt securities and will require the investor to assess the likelihood of selling the debt security prior to recovery of its cost basis. If an investor is able to meet the criteria to assert that it does not intend to sell the debt security and more likely than not will not be required to sell the debt security before its anticipated recovery, impairment charges related to credit losses would be recognized in earnings whereas impairment charges related to non-credit losses would be reflected in other comprehensive income. The company elected early adoption of this rule in the first quarter of 2009. Adoption did not materially affect the companys financial statements. In April 2009, the FASB issued guidance on providing interim disclosures about fair value of financial instruments. This new guidance requires the fair value disclosures that were previously disclosed only annually to be disclosed now on an interim basis. This guidance was effective for the company in the second quarter of 2009, and the additional disclosures required have been made. In May 2009, the FASB issued a pronouncement on subsequent event accounting. The guidance identifies the following: the period after the balance sheet date during which management shall evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements; the circumstances under which an entity shall reco

Subsequent Event

Subsequent Event
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Financial Statements [Abstract]
Subsequent Event	14.Subsequent EventOn October 1, 2009, the companys Analytical Technologies segment acquired B.R.A.H.M.S. AG, a leading provider of specialty diagnostic tests, as well as intensive care treatments and prenatal screening, for 330 million Euros (approximately $480 million including the assumption of $30 million of debt). B.R.A.H.M.S. reported revenues in 2008 of 75 million Euros (approximately $105 million). The acquisition of B.R.A.H.M.S. increased the breadth of the companys specialty diagnostics portfolio and provided a significant reagent manufacturing center in Europe.