Thermo Fisher Scientific (TMO) 10-Q 6 May 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
	3 Months Ended Apr. 03, 2010	Jun. 27, 2009
Document and Entity Information Abstract
Entity Registrant Name	Thermo Fisher Scientific Inc.
Entity Central Index Key	0000097745
Document Type	10-Q
Document Period End Date	2010-04-03
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$17,076,299,000
Entity Common Stock, Shares Outstanding	410,405,951

Consolidated Balance Sheet (Una

Consolidated Balance Sheet (Unaudited) (USD $)
In Millions	Apr. 03, 2010	Dec. 31, 2009
Current Assets:
Cash and cash equivalents	1431.7	1564.1
Short-term investments, at quoted market value (cost of $9.0 and $7.7)	8.5	7.1
Accounts receivable, less allowances of $46.1 and $47.2	1493.8	1409.6
Inventories:
Raw materials	269.3	262.8
Work in process	121.4	115.5
Finished goods	763.9	753.1
Deferred tax assets	161	160
Other current assets	279	258.7
Total current assets	4528.6	4530.9
Property, Plant and Equipment, at Cost	2078.5	2071.8
Less: Accumulated depreciation and amortization	-766.2	-738.4
Property, Plant and Equipment at Cost, Net	1312.3	1333.4
Acquisition-related Intangible Assets, net of Accumulated Amortization of $2,204.1 and $2,074.1	6238.6	6,337
Other Assets	436.4	440.8
Goodwill	9108.7	8982.9
Total Assets	21624.6	21,625
Current Liabilities:
Short-term obligations and current maturities of long-term obligations	148.8	117.5
Accounts payable	596.1	533.6
Accrued payroll and employee benefits	246.1	286
Accrued income taxes	63.6	28.4
Deferred revenue	167.8	139.8
Other accrued expenses	553.3	534
Total current liabilities	1775.7	1639.3
Deferred Income Taxes	1897.6	1933.8
Other Long-term Liabilities	541	555.1
Long-term Obligations	1923.2	2,064
Incremental Convertible Debt Obligation	7.1	1.9
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; 425,105,836 and 423,875,260 shares issued	425.1	423.9
Capital in excess of par value	11102.2	11140.7
Retained earnings	4583.1	4350.8
Treasury stock at cost, 14,699,885 and 14,564,637 shares	-583.1	-576.5
Accumulated other comprehensive items	-47.3	92
Total shareholders' equity	15,480	15430.9
Total Liabilities & Shareholders' Equity	21624.6	$21,625

1_Consolidated Balance Sheet (U

Consolidated Balance Sheet (Unaudited) (Parenthetical) (USD $)
In Millions, except Share data	Apr. 03, 2010	Dec. 31, 2009
Consolidated Balance Sheet Parenthetical [Abstract]
Cost of Short-term Investments	$9	7.7
Accounts Receivable Allowances	46.1	47.2
Accumulated Amortization of Acquisition-related Intangible Assets	2204.1	2074.1
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	425,105,836	423,875,260
Treasury Stock at Cost - Shares	14,699,885	14,564,637

Consolidated Statement of Incom

Consolidated Statement of Income (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Apr. 03, 2010	3 Months Ended Mar. 28, 2009
Revenues
Product revenues	$2,281	1898.6
Service revenues	394.1	356.5
Total revenues	2675.1	2255.1
Costs and Operating Expenses:
Cost of product revenues	1350.4	1159.7
Cost of service revenues	228.4	208.5
Selling, general and administrative expenses	719.1	625
Research and development expenses	66.8	58.2
Restructuring and other costs, net	17.4	13.6
Total costs and operating expenses	2382.1	2,065
Operating Income	293	190.1
Other Expense, Net	-24.9	-22.9
Income from Continuing Operations Before Provision for Income Taxes	268.1	167.2
Provision for Income Taxes	-38.3	-18.3
Income from Continuing Operations	229.8	148.9
Gain on Disposal of Discontinued Operations, Net (net of income tax provision of $1.5 in 2010)	2.5
Net Income	232.3	148.9
Earnings per Share from Continuing Operations
Basic	0.56	0.36
Diluted	0.55	0.35
Earnings per Share
Basic	0.57	0.36
Diluted	0.56	0.35
Weighted Average Shares
Basic	409.6	417.7
Diluted	418.2	425.3

2_Consolidated Statement of Inc

Consolidated Statement of Income (Unaudited) (Parenthetical) (USD $)
In Millions	3 Months Ended Apr. 03, 2010
Consolidated Income Statement Parenthetical [Abstract]
Provision for Income Taxes on Gain on Disposal of Discontinued Operations	1.5

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (Unaudited) (USD $)
In Millions	3 Months Ended Apr. 03, 2010	3 Months Ended Mar. 28, 2009
Operating Activities
Net Income	232.3	148.9
Gain on disposal of discontinued operations	-2.5
Income from continuing operations	229.8	148.9
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization	199.7	190.3
Change in deferred income taxes	-45.8	-56.7
Non-cash stock-based compensation	19.1	15.2
Non-cash interest expense on convertible debt	3.4	5.6
Tax benefits from stock-based compensation awards	-4.8	-0.6
Other non-cash expenses, net	16.9	11.1
Changes in assets and liabilities, excluding the effects of acquisitions and dispositions:
Accounts receivable	-102.1	29
Inventories	-34.9	-11.8
Other assets	(23)	28.9
Accounts payable	74	81.5
Other liabilities	15.7	-76.9
Contributions to retirement plans	-4.9	-5.6
Net cash provided by continuing operations	343.1	358.9
Net cash used in discontinued operations		-0.2
Net cash provided by operating activities	343.1	358.7
Investing Activities
Acquisitions, net of cash acquired	-229.1	-18.3
Purchase of property, plant and equipment	-50.6	-51.2
Proceeds from sale of property, plant and equipment	1	3.4
Proceeds from sale of available-for-sale investments	0.2
Proceeds from sale of businesses, net of cash divested		2.3
Decrease (increase) in other assets	0.6	-1.9
Net cash used in investing activities	-277.9	-65.7
Financing Activities
Increase (decrease) in short-term notes payable	-0.3	0.6
Net proceeds from issuance of company common stock	26.8	5.2
Tax benefits from stock-based compensation awards	4.8	0.6
Settlement of convertible debt	-206.9
Borrowings (redemption and repayment) of long-term obligations	-2.5	3.4
Net cash provided by (used in) financing activities	-178.1	9.8
Exchange Rate Effect on Cash of Continuing Operations	-19.5	-22.2
Increase (Decrease) in Cash and Cash Equivalents	-132.4	280.6
Cash and Cash Equivalents at Beginning of Period	1564.1	1280.5
Cash and Cash Equivalents at End of Period	1431.7	1561.1
Supplemental Cash Flow Information
Fair value of assets of acquired businesses	330.5	10.4
Cash paid for acquired businesses	-244.6	-7.7
Fair value of liabilities assumed of acquired businesses	85.9	2.7
Issuance of stock upon vesting of restricted stock units	14.9	6.6

General

General
	3 Months Ended Apr. 03, 2010
General Disclosure Abstract
General	1.General The 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 April 3, 2010, the results of operations for the three-month periods ended April 3, 2010, and March 28, 2009, and the cash flows for the three-month periods ended April 3, 2010, and March 28, 2009. Interim results are not necessarily indicative of results for a full year. The consolidated balance sheet presented as of December 31, 2009, has been derived from the audited consolidated financial statements as of that date. 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 company's Annual Report on Form 10-K for the fiscal year ended December 31, 2009, filed with the Securities and Exchange Commission (SEC).

Acquisitions

Acquisitions
	3 Months Ended Apr. 03, 2010
Acquisitions Disclosure Abstract
Acquisitions	2.Acquisitions In February 2010, the company's Analytical Technologies segment acquired Ahura Scientific, Inc., a U.S.-based provider of handheld spectroscopy instruments that are used worldwide in the identification of chemicals for safety, security and pharmaceutical applications, for $147 million, net of cash acquired, plus up to $25 million of additional contingent consideration based upon the achievement of specified operating results in 2010, of which the company recorded $20 million as the fair value at the acquisition date. The acquisition expands the segment's portfolio of portable analytical devices. Revenues of Ahura Scientific totaled $45 million in 2009. The purchase price exceeded the fair value of the acquired net assets and, accordingly, $111 million was allocated to goodwill, none of which is tax deductible. In March 2010, the company's Analytical Technologies segment acquired Finnzymes, a Finland-based provider of integrated tools for molecular biology analysis, including reagents, instruments, consumables and kits, for $59 million, net of cash acquired. The acquisition expands the company's portfolio of reagents and other consumables for the molecular biology research and diagnostics markets. Finnzymes reported revenues of $20 million in 2009. The purchase price exceeded the fair value of the acquired net assets and, accordingly, $27 million was allocated to goodwill, none of which is tax deductible. In addition, in the first three months of 2010, the Analytical Technologies segment acquired a developer of tunable diode-based spectroscopy systems for $21 million plus up to $5 million of additional contingent consideration. The company made a contingent purchase price payment of $3 million in the first three months of 2010, for an acquisition completed prior to 2010. The company's 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 company's 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. Acquisition transaction costs are recorded in selling, general and administrative expenses. Allocation of the purchase price for acquisitions was based on estimates of the fair value of the net assets acquired and, for acquisitions completed within the past year, is subject to adjustment upon finalization of the purchase price allocation. The company is not aware of any information that indicates the final purchase price allocations will differ materially from the preliminary estimates. The components of the purchase price allocations for 2010 acquisitions are as follows: (In millions) Ahura Scientific Finnzymes Other Total Pu

Business Segment Information

Business Segment Information
	3 Months Ended Apr. 03, 2010
Business Segments Disclosure Abstract
Business Segment Information	3.Business Segment Information The company's continuing operations fall into two business segments. Three Months Ended April 3, March 28, (In millions) 2010 2009 Revenues Analytical Technologies $ 1,107.0 $ 938.8 Laboratory Products and Services 1,695.2 1,423.0 Eliminations (127.1) (106.7) Consolidated revenues 2,675.1 2,255.1 Segment Income Analytical Technologies (a) 232.4 173.5 Laboratory Products and Services (a) 235.3 175.5 Subtotal reportable segments (a) 467.7 349.0 Cost of revenues charges (5.1) Selling, general and administrative charges, net (1.1) Restructuring and other costs, net (17.4) (13.6) Amortization of acquisition-related intangible assets (151.1) (145.3) Consolidated operating income 293.0 190.1 Other expense, net (b) (24.9) (22.9) Income from continuing operations before provision for income taxes $ 268.1 $ 167.2 Depreciation Analytical Technologies $ 22.0 $ 20.3 Laboratory Products and Services 26.6 24.7 Consolidated depreciation $ 48.6 $ 45.0 (a)Represents operating income before certain charges 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 expense, net to its segments.

Other Expense, Net

Other Expense, Net
	3 Months Ended Apr. 03, 2010
Other Expense Net Disclosure Abstract
Other Expense, Net	4.Other Expense, Net The components of other expense, net, in the accompanying statement of income are as follows: Three Months Ended April 3, March 28, (In millions) 2010 2009 Interest Income $ 2.4 $ 5.3 Interest Expense (22.3) (30.2) Other Items, Net (5.0) 2.0 $ (24.9) $ (22.9)

Stockbased Compensation Expense

Stockbased Compensation Expense
	3 Months Ended Apr. 03, 2010
Stock Based Compensation Expense Disclosure Abstract
Stock-based Compensation Expense	5.Stock-based Compensation Expense The components of pre-tax stock-based compensation expense are as follows: Three Months Ended April 3, March 28, (In millions) 2010 2009 Stock Option Awards $ 11.6 $ 10.1 Restricted share/Unit Awards 7.5 5.1 Total Stock-based Compensation Expense $ 19.1 $ 15.2 Stock-based compensation expense is included in the accompanying statement of income as follows: Three Months Ended April 3, March 28, (In millions) 2010 2009 Cost of Revenues $ 1.4 $ 1.5 Selling, General and Administrative Expenses 17.3 13.2 Research and Development Expenses 0.4 0.5 Total Stock-based Compensation Expense $ 19.1 $ 15.2 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 $120 million and $69 million, respectively, as of April 3, 2010, and is expected to be recognized through 2015 with weighted average periods of 1.5 years and 1.3 years, respectively. During the first three months of 2010, the company made equity compensation grants to employees consisting of 0.6 million restricted shares/units and options to purchase 3.9 million shares.

Pension and Other Postretiremen

Pension and Other Postretirement Benefit Plans
	3 Months Ended Apr. 03, 2010
Pension and Other Postretirement Benefit Plans Disclosure Abstract
Pension and Other Postretirement Benefit Plans	6.Pension and Other Postretirement Benefit Plans Employees of a number of the company's 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 company's pension plans include the following components: Three Months Ended April 3, March 28, (In millions) 2010 2009 Service Cost $ 2.8 $ 2.5 Interest Cost on Benefit Obligation 13.2 12.0 Expected Return on Plan Assets (13.8) (12.3) Amortization of Net Loss 0.5 0.3 Amortization of Prior Service Benefit 0.1 Special Termination Benefits 0.2 Net Periodic Benefit Cost $ 2.7 $ 2.8 Net periodic benefit costs for the company's other postretirement benefit plans include the following components: Three Months Ended April 3, March 28, (In millions) 2010 2009 Service Cost $ 0.1 $ 0.1 Interest Cost on Benefit Obligation 0.5 0.4 Amortization of Net Gain (0.1) Net Periodic Benefit Cost $ 0.5 $ 0.5

Earnings Per Share

Earnings Per Share
	3 Months Ended Apr. 03, 2010
Earnings Per Share Disclosure Abstract
Earnings per Share	7.Earnings per Share Basic and diluted earnings per share were calculated as follows: Three Months Ended April 3, March 28, (In millions except per share amounts) 2010 2009 Income from Continuing Operations $ 229.8 $ 148.9 Gain on Disposal of Discontinued Operations, Net 2.5 Net Income 232.3 148.9 Income Allocable to Participating Securities (0.2) Net Income for Earnings per Share $ 232.3 $ 148.7 Basic Weighted Average Shares 409.6 417.7 Effect of: Convertible debentures 5.4 6.4 Stock options, restricted stock/units and warrants 3.2 1.2 Diluted Weighted Average Shares 418.2 425.3 Basic Earnings per Share: Continuing operations $ .56 $ .36 Discontinued operations .01 $ .57 $ .36 Diluted Earnings per Share: Continuing operations $ .55 $ .35 Discontinued operations .01 $ .56 $ .35 Options to purchase 8.2 million and 16.7 million shares of common stock were not included in the computation of diluted earnings per share for the first quarter of 2010 and 2009, respectively, because their effect would have been antidilutive.

Debt and Other Financing Arrang

Debt and Other Financing Arrangements
	3 Months Ended Apr. 03, 2010
Debt And Other Financing Arrangements Disclosure Abstract
Debt and Other Financing Arrangements	8.Debt and Other Financing Arrangements During the first quarter of 2010, following completion of a tender offer in 2009, the company purchased substantially all of the remaining $13 million aggregate principal amount of the company's 2.5% Senior Convertible Notes due 2023 for an aggregate of $28 million. Additionally, holders of the company's Floating Rate Convertible Senior Debentures due 2033 totaling $109 million in par value exercised conversion rights in the first quarter of 2010. The company paid the principal and the premium due upon conversion in cash for a total outlay of $179 million. As a result of these transactions, the company recorded losses totaling $1 million on the early extinguishment of debt in other expense, net in the accompanying statement of income. Additional conversions totaling $44 million in principal were paid in April 2010, prior to the redemption announcement discussed below, for a total cash outlay of $77 million. The company separately accounts for the debt and equity components of its convertible debt in a manner that reflects the company's nonconvertible debt borrowing rate when interest cost is recognized. The debt, temporary equity and equity components recognized for the company's convertible debt are as follows: April 3, December 31, (In millions) 2010 2009 Principal Amount of Convertible Debt $ 546.9 $ 668.8 Unamortized Discount 7.1 10.9 Net Carrying Amount 539.8 657.9 Incremental Convertible Debt Obligation (Temporary Equity) 7.1 1.9 Capital in Excess of Par Value 20.1 30.7 At April 3, 2010, the unamortized discount had a remaining weighted average recognition period of 12 months, to the first redemption date of the convertible debt. The amount of interest expense on the convertible debt recognized in the accompanying statement of income is as follows: Three Months Ended April 3, March 28, (In millions) 2010 2009 Contractual Coupon Interest $ 2.9 $ 5.0 Amortization of Discount on Convertible Debt 3.4 5.6 Interest Expense $ 6.3 $ 10.6 Effective Interest Rate 4.0% 4.5% On April 27, 2010, the company issued $450 million principal amount of 3.20% Senior Notes due 2015. Interest on the notes is payable on May 1 and November 1 of each year. The notes may be redeemed at any time at a redemption price of 100% of the principal amount plus a specified make-whole premium plus accrued interest. The company is subject to certain affirmative and negative covenants, the most restrictive of which limits the ability of the company to pledge principal properties as security under borrowing arrangements. At the issuance of this debt, the company entered into six-month LIBOR-based interest rate swap arrangements with various banks. The aggregate amount of the swaps is equal to the principal amount of the 3.20% Notes and the payment dates of the swaps coincide with the payment dates of the notes. The swap contracts provide for the company to pay a variable interest rate of six-month USD LIBOR plus a spread of 0.4512% (0.96% at April 27, 2010) and to receive a fixed interest rate of 3.20%. The variable interest rate resets sem

Litagation and Related Continge

Litagation and Related Contingencies
	3 Months Ended Apr. 03, 2010
Litigation and Related Contingencies Disclosure Abstract
Litigation and Related Contingencies	9.Litigation and Related Contingencies There are various lawsuits and claims pending against the company involving product liability, contract, commercial and other issues. In view of the company's 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 company's 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 management's 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. 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 company's insurers concerning which state's 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 $92 million would require adjustment that could be material to the company's 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. The company cannot predict all potential costs related to environmental remediation matters and the possible impact on future operations given the uncertainties regarding the extent of the required cleanup, the complexity and interpretation of applicable laws and regulations, the varying costs of alternative cleanup methods and the extent of the company's responsibility. Expenses for environmental remediation matters related to the costs of permit requirements and installing, operating and maintaining groundwater-treatment systems and other remedial activities related to historical environmental contamination at the company's domestic and international facilities were not material in any period presented. The company records accruals for environmental remediation liabilities, based on current interpretations of e

Comprehensive Income and Shareh

Comprehensive Income and Shareholders Equity
	3 Months Ended Apr. 03, 2010
Comprehensive Income and Shareholders Equity Disclosure Abstract
Comprehensive Income and Shareholders Equity	10.Comprehensive Income and Shareholders' Equity Comprehensive 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 first quarter of 2010 and 2009, the company had comprehensive income of $93 million and $37 million, respectively. The first quarters of 2010 and 2009 were unfavorably affected by decreases in the cumulative translation adjustment of $141 million and $113 million, respectively, due to movements in currency exchange rates, the effects of which are recorded in shareholders' equity.

Fair Value Measurements and Fai

Fair Value Measurements and Fair Value Of Financial Instruments
	3 Months Ended Apr. 03, 2010
Fair Value Measurements and Fair Value of Financial Instruments Disclosure Abstract
Fair Value Measurements and Fair Value of Financial Instruments	11.Fair Value Measurements and Fair Value of Financial Instruments The company uses the market approach technique to value its financial instruments and there were no changes in valuation techniques during 2010. The company's 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 company's currency and interest rate risks 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 company's financial assets and liabilities measured at fair value on a recurring basis as of April 3, 2010: April 3, Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (In millions) 2010 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 833.5 $ 833.5 $ $ Investments in mutual funds, unit trusts and other similar instruments 33.9 33.9 Insurance contracts 32.3 32.3 Auction rate securities 5.2 5.2 Derivative contracts 1.7 1.7 Total Assets $ 906.6 $ 867.4 $ 34.0 $ 5.2 Liabilities Derivative contracts $ 2.1 $ $ 2.1 $ Total Liabilities $ 2.1 $ $ 2.1 $ The following table presents information about the companys financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2009: December 31, Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (In millions) 2009 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 1,081.7 $ 1,081.7 $ $ Investments in mutual funds, unit trusts and other similar instruments 32.9 32.9 Insurance contracts 31.9 31.9 Auction rate securities 5.4 5.4 Derivative contracts 4.5 4.5 Total Assets $ 1,156.4 $ 1,114.6 $ 36.4 $ 5.4 Liabilities Derivative contracts $ 10.3 $ $ 10.3 $ Total Liabilities $ 10.3 $ $ 10.3 $ The company determines the fair value of its insurance contracts by obtaining the cash surrender value of the contracts from the issuer. The company determines the fair value of the auction rate securities by obtaining indications of value from brokers/dealers. The following table is a rollforward of the fair value, as determined by Level 3 inputs, of the auction rate securities. Three Months Ended April 3, March 28, (In millions) 2010 2009 Beginning Balance

Warranty Obligations

Warranty Obligations
	3 Months Ended Apr. 03, 2010
Warranty Obligations Disclosure Abstract
Warranty Obligations	12.Warranty Obligations Product warranties are included in other accrued expenses in the accompanying balance sheet. The changes in the carrying amount of warranty obligations is as follows: Three Months Ended April 3, March 28, (In millions) 2010 2009 Beginning Balance $ 45.2 $ 44.1 Provision charged to income 10.8 7.5 Usage (10.1) (10.4) Acquisitions 0.2 Adjustments to previously provided warranties, net 0.4 0.5 Other, net (a) (1.0) (1.0) Ending Balance $ 45.5 $ 40.7 (a) Primarily represents the effects of currency translation

Restructuring and Other Costs,

Restructuring and Other Costs, Net
	3 Months Ended Apr. 03, 2010
Restructuring And Other Costs Net Disclosure Abstract
Restructuring and Other Costs, Net	13.Restructuring and Other Costs, Net Restructuring costs in the three months of 2010 in both segments primarily included continuing charges for actions initiated in 2009 in response to the downturn in the economy and reduced revenues in several businesses, as well as the consolidation of manufacturing and research and development operations at a site in Germany with an existing site in the U.S. and the consolidation of production operations at a plant in Iowa with plants in Ohio and North Carolina. As of May 6, 2010, the company has identified restructuring actions that will result in additional charges of approximately $27 million, primarily in the remainder of 2010. During the first quarter of 2010, 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 $ 3.9 $ 1.2 $ $ 5.1 Selling, General and Administrative Expenses 1.1 1.1 Restructuring and Other Costs, Net 8.0 9.3 0.1 17.4 $ 13.0 $ 10.5 $ 0.1 $ 23.6 The components of net restructuring and other costs by segment are as follows: Analytical Technologies The Analytical Technologies segment recorded $13.0 million of net restructuring and other charges in the first quarter of 2010. The segment recorded charges to cost of revenues of $3.9 million for the sale of inventories revalued at the date of acquisition and accelerated depreciation at facilities closing due to real estate consolidation; charges to selling, general and administrative expenses of $1.1 million for transaction costs related to the Finnzymes acquisition (Note 2); and $8.0 million of cash costs, net. These cash costs were primarily associated with headcount reductions and facility consolidations to streamline operations, including $5.4 million of severance for approximately 65 employees; $1.4 million of abandoned facility costs; and $1.2 million of other cash costs, primarily retention, relocation and moving expenses associated with facility consolidations as well as other costs associated with restructuring actions. Laboratory Products and Services The Laboratory Products and Services segment recorded $10.5 million of net restructuring and other charges in the first quarter of 2010. The segment recorded charges to cost of revenues of $1.2 million for accelerated depreciation at facilities closing due to real estate consolidation; $3.5 million in cash costs described below; and $5.8 million in other costs, net. The cash costs, which were associated with headcount reductions and facility consolidations to streamline operations, included $0.3 million of severance; $1.7 million of abandoned facility costs; and $1.5 million of other cash costs, primarily retention, relocation, moving and related expenses associated with facility consolidations. The non-cash costs of $5.8 million were primarily related to a loss on a patent infringement claim initiated prior to a business unit's acquisition by the company. Corporate The company recorded $0.1 million in restructuring and other charges at its corporate office 2010, all of which were cash costs.

Recent Accounting Pronouncement

Recent Accounting Pronouncements
	3 Months Ended Apr. 03, 2010
Recent Accounting Pronouncements Disclosure Abstract
Recent Accounting Pronouncements	14.Recent Accounting Pronouncements In September 2009, the Emerging Issues Task Force issued new rules pertaining to the accounting for revenue arrangements with multiple customer deliverables and for software-enabled products. The new rule pertaining to arrangements under which the company has multiple customer deliverables provides an alternative method for establishing the fair value of a deliverable when vendor specific objective evidence does not exist. The guidance requires the determination of the best estimate of selling price to separate deliverables and allows the allocation of the customer's consideration using this relative selling price model. The new guidance pertaining to software-enabled products revised the existing software accounting guidance to exclude equipment where the software is more than incidental to the value of the product. Under the new standard, such equipment is accounted for under revenue recognition criteria applicable to equipment instead of that applicable to software. The company adopted the rules prospectively on January 1, 2010. Adoption did not materially affect the company's results of operation or financial position. Effective, January 1, 2010, the company adopted new accounting guidance pertaining to the consolidation assessment of variable interest entities. The new guidance requires the company to determine whether its variable interests in third party entities give the company a controlling financial interest in the entities. This amended guidance replaces the previous quantitative approach for identifying when enterprises should consolidate variable interest entities with a qualitative analysis, based on which enterprise has both (1) the power to direct the economic activities of a variable interest entity and (2) the obligation to absorb losses or receive benefits from the entity that could be significant to the variable interest entity. Adoption of this standard did not have an impact on the company's results of operation or financial position.