Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2018shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | THERMO FISHER SCIENTIFIC INC. |
Entity Central Index Key | 97,745 |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q2 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 402,796,251 |
Entity Stock Trading Symbol | TMO |
Consolidated Balance Sheet (Una
Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 937 | $ 1,335 |
Accounts receivable, less allowances of $115 and $109 | 3,911 | 3,879 |
Inventories | 2,866 | 2,971 |
Refundable income taxes | 530 | 432 |
Other current assets | 1,230 | 804 |
Total current assets | 9,474 | 9,421 |
Property, Plant and Equipment, Net | 3,952 | 4,047 |
Acquisition-related Intangible Assets, Net | 15,680 | 16,684 |
Other Assets | 1,177 | 1,227 |
Goodwill | 25,120 | 25,290 |
Total Assets | 55,403 | 56,669 |
Current Liabilities: | ||
Short-term obligations and current maturities of long-term obligations | 1,711 | 2,135 |
Accounts payable | 1,359 | 1,428 |
Accrued payroll and employee benefits | 755 | 918 |
Contract liabilities | 816 | 0 |
Deferred revenue | 0 | 719 |
Other accrued expenses | 1,339 | 1,848 |
Total current liabilities | 5,980 | 7,048 |
Deferred Income Taxes | 2,599 | 2,766 |
Other Long-term Liabilities | 2,670 | 2,569 |
Long-term Obligations | 17,709 | 18,873 |
Shareholders' Equity: | ||
Preferred stock, $100 par value, 50,000 shares authorized; none issued | ||
Common stock, $1 par value, 1,200,000,000 shares authorized; 429,925,100 and 428,327,873 shares issued | 430 | 428 |
Capital in excess of par value | 14,408 | 14,177 |
Retained earnings | 17,226 | 15,914 |
Treasury stock at cost, 27,128,849 and 27,013,311 shares | 3,128 | 3,103 |
Accumulated other comprehensive items | (2,491) | (2,003) |
Total shareholders' equity | 26,445 | 25,413 |
Total Liabilities and Shareholders' Equity | $ 55,403 | $ 56,669 |
Consolidated Balance Sheet (Un3
Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable Allowances | $ 115 | $ 109 |
Preferred Stock, $100 Par Value - Par Value (in dollars per share) | $ 100 | $ 100 |
Preferred Stock, $100 Par Value - Shares Authorized (in shares) | 50,000 | 50,000 |
Preferred Stock, $100 Par Value - Shares Issued (in shares) | 0 | 0 |
Common Stock, $1 Par Value - Par Value (in dollars per share) | $ 1 | $ 1 |
Common Stock, $1 Par Value - Shares Authorized (in shares) | 1,200,000,000 | 1,200,000,000 |
Common Stock, $1 Par Value - Shares Issued (in shares) | 429,925,100 | 428,327,873 |
Treasury Stock at Cost (in shares) | 27,128,849 | 27,013,311 |
Consolidated Statement of Incom
Consolidated Statement of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Revenues | ||||
Revenues | $ 6,078 | $ 4,990 | $ 11,931 | $ 9,755 |
Costs and Operating Expenses: | ||||
Selling, general and administrative expenses | 1,542 | 1,291 | 3,057 | 2,625 |
Research and development expenses | 242 | 222 | 476 | 437 |
Restructuring and other costs, net | 17 | 22 | 62 | 46 |
Total costs and operating expenses | 5,141 | 4,241 | 10,208 | 8,386 |
Operating Income | 937 | 749 | 1,723 | 1,369 |
Other Expense, Net | (131) | (123) | (283) | (240) |
Income from Continuing Operations Before Income Taxes | 806 | 626 | 1,440 | 1,129 |
(Provision for) Benefit from Income Taxes | (54) | (13) | (109) | 35 |
Income from Continuing Operations | 752 | 613 | 1,331 | 1,164 |
Loss from Discontinued Operations (net of income tax benefit of $0, $0, $0 and $0) | 0 | (1) | 0 | (1) |
Net Income | $ 752 | $ 612 | $ 1,331 | $ 1,163 |
Earnings per Share from Continuing Operations | ||||
Basic (in dollars per share) | $ 1.87 | $ 1.57 | $ 3.31 | $ 2.98 |
Diluted (in dollars per share) | 1.85 | 1.56 | 3.28 | 2.96 |
Earnings per Share | ||||
Basic (in dollars per share) | 1.87 | 1.57 | 3.31 | 2.98 |
Diluted (in dollars per share) | $ 1.85 | $ 1.56 | $ 3.28 | $ 2.95 |
Weighted Average Shares | ||||
Basic (in shares) | 403 | 390 | 402 | 390 |
Diluted (in shares) | 406 | 393 | 406 | 394 |
Cash Dividends Declared per Common Share (in dollars per share) | $ 0.17 | $ 0.15 | $ 0.34 | $ 0.3 |
Product [Member] | ||||
Revenues | ||||
Revenues | $ 4,708 | $ 4,298 | $ 9,236 | $ 8,400 |
Costs and Operating Expenses: | ||||
Cost of revenues | 2,390 | 2,244 | 4,715 | 4,373 |
Service [Member] | ||||
Revenues | ||||
Revenues | 1,370 | 692 | 2,695 | 1,355 |
Costs and Operating Expenses: | ||||
Cost of revenues | $ 950 | $ 462 | $ 1,898 | $ 905 |
Consolidated Statement of Inco5
Consolidated Statement of Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Income Statement [Abstract] | ||||
Provision for (Benefit from) Income Taxes on Income (Loss) from Discontinued Operations | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Comprehensive Income | ||||
Net Income | $ 752 | $ 612 | $ 1,331 | $ 1,163 |
Other Comprehensive Items: | ||||
Currency translation adjustment (net of tax provision of $94, $0, $47 and $0) | (462) | 219 | (415) | 379 |
Unrealized gains and losses on available-for-sale investments: | ||||
Unrealized holding gains arising during the period (net of tax provision of $0, $1, $0 and $1) | 0 | 1 | 0 | 2 |
Reclassification adjustment for (gains) losses included in net income (net of tax (provision) benefit of $0, ($1), $0 and ($1)) | 0 | (1) | 0 | (1) |
Unrealized gains and losses on hedging instruments: | ||||
Reclassification adjustment for losses included in net income (net of tax benefit of $1, $1, $2 and $2) | 2 | 2 | 4 | 4 |
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, ($2), $1 and ($3)) | 5 | (7) | 3 | (9) |
Amortization of net loss and prior service benefit included in net periodic pension cost (net of tax benefit of $2, $1, $3 and $2) | 6 | 3 | 8 | 5 |
Total other comprehensive items | (449) | 217 | (400) | 380 |
Comprehensive Income | $ 303 | $ 829 | $ 931 | $ 1,543 |
Consolidated Statement of Comp7
Consolidated Statement of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive Income (Loss), Foreign Currency Translation Gain (Loss) Arising During Period, Tax | $ 94 | $ 0 | $ 47 | $ 0 |
Tax provision (benefit) on unrealized holding gains and losses on available-for-sale investments arising during the period | 0 | 1 | 0 | 1 |
Tax provision (benefit) on reclassification adjustment for gains on available-for-sale investments recognized in net income | 0 | 1 | 1 | |
Tax provision (benefit) on reclassification adjustment for losses on hedging instruments recognized in net income | (1) | (1) | (2) | (2) |
Tax provision (benefit) on pension and other postretirement benefit liability adjustments arising during the period | 2 | (2) | 1 | (3) |
Tax provision (benefit) on amortization of net loss and prior service benefit included in net periodic pension cost | $ (2) | $ (1) | $ (3) | $ (2) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Operating Activities | ||
Net Income | $ 1,331 | $ 1,163 |
Loss from discontinued operations | 0 | 1 |
Income from continuing operations | 1,331 | 1,164 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,146 | 942 |
Change in deferred income taxes | (99) | (299) |
Non-cash stock-based compensation | 91 | 71 |
Non-cash charges for sale of inventories revalued at the date of acquisition | 8 | 31 |
Other non-cash expenses, net | 55 | 46 |
Changes in assets and liabilities, excluding the effects of acquisitions and dispositions: | ||
Accounts receivable | (97) | (127) |
Inventories | (195) | (146) |
Other assets | (247) | (178) |
Accounts payable | (20) | 49 |
Other liabilities | (408) | (161) |
Contributions to retirement plans | (43) | (181) |
Net cash provided by continuing operations | 1,522 | 1,211 |
Net cash used in discontinued operations | 0 | (1) |
Net cash provided by operating activities | 1,522 | 1,210 |
Investing Activities | ||
Acquisitions, net of cash acquired | (59) | (307) |
Purchase of property, plant and equipment | (301) | (181) |
Proceeds from sale of property, plant and equipment | 3 | 2 |
Other investing activities, net | (7) | 9 |
Net cash used in investing activities | (364) | (477) |
Financing Activities | ||
Net proceeds from issuance of debt | 0 | 519 |
Repayment of debt | (1,353) | (1,329) |
Proceeds from issuance of commercial paper | 2,761 | 4,487 |
Repayments of commercial paper | (2,655) | (3,991) |
Purchases of company common stock | 0 | (750) |
Dividends paid | (129) | (118) |
Net proceeds from issuance of company common stock under employee stock plans | 78 | 99 |
Other financing activities | (50) | 0 |
Net cash used in financing activities | (1,348) | (1,083) |
Exchange Rate Effect on Cash | (215) | 168 |
Decrease in Cash, Cash Equivalents and Restricted Cash | (405) | (182) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 1,361 | 811 |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 956 | $ 629 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Items [Member] |
Balance (in shares) at Dec. 31, 2016 | 415 | 22 | ||||
Balance at Dec. 31, 2016 | $ 21,540 | $ 415 | $ 12,140 | $ 13,927 | $ (2,306) | $ (2,636) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of shares under employees' and directors' stock plans (in shares) | 2 | 0 | ||||
Issuance of shares under employees' and directors' stock plans | 108 | $ 2 | 120 | $ (14) | ||
Stock-based compensation | 71 | 71 | ||||
Purchases of company common stock (in shares) | 5 | |||||
Purchases of company common stock | (750) | $ (750) | ||||
Dividends declared | (118) | (118) | ||||
Net Income | 1,163 | 1,163 | ||||
Other comprehensive items | 380 | 380 | ||||
Other | (3) | (3) | ||||
Balance (in shares) at Jul. 01, 2017 | 417 | 27 | ||||
Balance at Jul. 01, 2017 | 22,391 | $ 417 | 12,328 | 14,972 | $ (3,070) | (2,256) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of accounting changes | 30 | 118 | (88) | |||
Balance (in shares) at Dec. 31, 2017 | 428 | 27 | ||||
Balance at Dec. 31, 2017 | 25,413 | $ 428 | 14,177 | 15,914 | $ (3,103) | (2,003) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of shares under employees' and directors' stock plans (in shares) | 2 | 0 | ||||
Issuance of shares under employees' and directors' stock plans | 90 | $ 2 | 113 | $ (25) | ||
Stock-based compensation | 91 | 91 | ||||
Dividends declared | (137) | (137) | ||||
Net Income | 1,331 | 1,331 | ||||
Other comprehensive items | (400) | (400) | ||||
Other | 27 | 27 | ||||
Balance (in shares) at Jun. 30, 2018 | 430 | 27 | ||||
Balance at Jun. 30, 2018 | $ 26,445 | $ 430 | $ 14,408 | $ 17,226 | $ (3,128) | $ (2,491) |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies [Text Block] | Note 1 . Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Thermo Fisher Scientific Inc. (the company or Thermo Fisher) enables customers to make the world healthier, cleaner and safer by providing analytical instruments, equipment, reagents and consumables, software and services for research, manufacturing, analysis, discovery and diagnostics. Markets served include pharmaceutical and biotech, academic and government, industrial and applied, as well as healthcare and diagnostics. Interim Financial Statements The interim consolidated financial statements presented herein have been prepared by the company, 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 June 30, 2018 , the results of operations for the three- and six-month periods ended June 30, 2018 and July 1, 2017 , and the cash flows for the six-month periods ended June 30, 2018 and July 1, 2017 . Interim results are not necessarily indicative of results for a full year. The consolidated balance sheet presented as of December 31, 2017 , 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 information that is included in the annual financial statements and notes thereto of the company. The consolidated financial statements and notes included in this report should be read in conjunction with the 2017 financial statements and notes included in the company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC). Note 1 to the consolidated financial statements for 2017 describes the significant accounting estimates and policies used in preparation of the consolidated financial statements. Except for the accounting for revenue arising from contracts with customers, as noted below, there have been no material changes in the company’s significant accounting policies during the six months ended June 30, 2018 . Revenue Recognition The company recognizes revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Consumables revenues consist of single-use products and are recognized at a point in time following the transfer of control of such products to the customer, which generally occurs upon shipment. Instruments revenues typically consist of longer-lived assets that, for the substantial majority of sales, are recognized at a point in time in a manner similar to consumables. Service revenues (clinical trial logistics, pharmaceutical development and manufacturing services, asset management, diagnostic testing, training, service contracts, and field services including related time and materials) are recognized over time as customers receive and consume the benefits of such services. For revenues recognized over time, the company generally uses costs accumulated as inputs to measure progress. For contracts that contain multiple performance obligations, the company allocates the consideration to which it expects to be entitled to each performance obligation based on relative standalone selling prices and recognizes the related revenue when or as control of each individual performance obligation is transferred to customers. The company exercises judgment in determining the timing of revenue by analyzing the point in time or the period over which the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the asset. The company immediately expenses contract costs that would otherwise be capitalized and amortized over a period of less than one year. Payments from customers for most instruments, consumables and services are typically due in a fixed number of days after shipment or delivery of the product. Service arrangements commonly call for payments in advance of performing the work (e.g. extended service contracts), upon completion of the service (e.g. pharmaceutical development and manufacturing) or a mix of both. See Note 3 for revenue disaggregated by type and by geographic region as well as further information about remaining performance obligations. Contract-related Balances Contract assets include revenues recognized in advance of billings and are recorded net of estimated losses resulting from the inability to invoice customers. Contract assets are classified as current or noncurrent based on the amount of time expected to lapse until the company's right to consideration becomes unconditional. Current contract assets and noncurrent contract assets are included within other current assets and other assets, respectively, in the accompanying balance sheet. Contract liabilities include billings in excess of revenues recognized, such as those resulting from customer advances and deposits and unearned revenue on service contracts. Contract liabilities are classified as current or noncurrent based on the periods over which remaining performance obligations are expected to be transferred to customers. Noncurrent contract liabilities are included within other long-term liabilities in the accompanying balance sheet. Contract asset and liability balances are as follows: June 30, January 1, (In millions) 2018 2018 Current Contract Assets, Net $ 471 $ 396 Current Contract Liabilities 816 805 Noncurrent Contract Liabilities 337 302 Noncurrent contract assets were immaterial in 2018 . In the first six months of 2018 , the company recognized revenue of $483 million that was included in the contract liabilities balance at January 1, 2018 . Warranty Obligations The liability for warranties is included in other accrued expenses in the accompanying balance sheet. The changes in the carrying amount of standard product warranty obligations are as follows: Six Months Ended June 30, July 1, (In millions) 2018 2017 Beginning Balance $ 87 $ 78 Provision charged to income 58 54 Usage (53 ) (51 ) Acquisitions — 1 Adjustments to previously provided warranties, net (2 ) (1 ) Currency translation (2 ) 2 Ending Balance $ 88 $ 83 Inventories The components of inventories are as follows: June 30, December 31, (In millions) 2018 2017 Raw Materials $ 776 $ 708 Work in Process 415 505 Finished Goods 1,675 1,758 Inventories $ 2,866 $ 2,971 Property, Plant and Equipment Property, plant and equipment consists of the following: June 30, December 31, (In millions) 2018 2017 Land $ 398 $ 401 Buildings and Improvements 1,668 1,662 Machinery, Equipment and Leasehold Improvements 4,408 4,276 Property, Plant and Equipment, at Cost 6,474 6,339 Less: Accumulated Depreciation and Amortization 2,522 2,292 Property, Plant and Equipment, Net $ 3,952 $ 4,047 Acquisition-related Intangible Assets Acquisition-related intangible assets are as follows: Balance at June 30, 2018 Balance at December 31, 2017 (In millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Definite Lived: Customer relationships $ 17,129 $ (6,336 ) $ 10,793 $ 17,356 $ (5,902 ) $ 11,454 Product technology 6,012 (3,024 ) 2,988 6,046 (2,811 ) 3,235 Tradenames 1,516 (884 ) 632 1,538 (817 ) 721 Other 33 (33 ) — 34 (34 ) — 24,690 (10,277 ) 14,413 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 $ 25,957 $ (10,277 ) $ 15,680 $ 26,248 $ (9,564 ) $ 16,684 Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In addition, significant estimates were made in estimating future cash flows to assess potential impairment of assets and in determining the fair value of acquired intangible assets (Note 2 ) and the ultimate loss from abandoning leases at facilities being exited (Note 13 ). Actual results could differ from those estimates. Recent Accounting Pronouncements In February 2018, the FASB issued new guidance to allow reclassifications from accumulated other comprehensive items (AOCI) to retained earnings for certain tax effects on items within AOCI resulting from the Tax Cuts and Jobs Act of 2017 (the Tax Act). The company adopted this guidance in January 2018 and recorded the reclassifications in the period of adoption. The balance sheet impact of adopting this guidance is included in the table below. This guidance only relates to the effects of the Tax Act. For all other tax law changes that have occurred or may occur in the future, the company reclassifies the tax effects to the consolidated statement of income on an item-by-item basis when the pre-tax item in AOCI is reclassified to income. In December 2017, the SEC staff issued guidance to address the application of accounting guidance in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act enacted on December 22, 2017. The company reported provisional amounts in its 2017 financial statements for certain income tax effects of the Tax Act for which a reasonable estimate could be determined but for which the accounting impact may change. For example, these estimates may be impacted by the need for further analysis and future clarification and guidance regarding available tax accounting methods and elections, earnings and profits computations and state tax conformity to federal changes. Adjustments to provisional amounts identified during the measurement period, which may be up to December 22, 2018, will be included as adjustments to Provision for Income Taxes in the period the amounts are determined (Note 6 ). In August 2017, the FASB issued new guidance to simplify the application of hedge accounting guidance. Among other things, the new guidance will permit more hedging strategies to qualify for hedge accounting, allow for additional time to perform an initial assessment of a hedge’s effectiveness, and permit a qualitative effectiveness test for certain hedges after initial qualification. The company adopted this guidance in January 2018. The balance sheet impact of adopting this guidance is included in the table below. In March 2017, the FASB issued new guidance intended to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires the service cost component of net periodic cost be reported in the same line item(s) as other employee compensation costs and all other components of the net periodic cost be reported in the income statement below operating income. The company adopted this guidance on January 1, 2018 and applied the changes to the statement of income retrospectively. As a result of adoption of this guidance, the accompanying 2017 statement of income reflects the following changes from previously reported amounts: Three Months Ended Six Months Ended July 1, July 1, (In millions) 2017 2017 Increase in Total Costs and Operating Expenses (principally Selling, General and Administrative Expenses) $ 3 $ 5 Decrease in Operating Income 3 5 Increase in Other Income (Expense) 3 5 In January 2017, the FASB issued new guidance clarifying the definition of a business and providing criteria to determine when an integrated set of assets and activities is not defined as a business. The new guidance requires such integrated sets to be defined as an asset (and not a business) if substantially all of the fair value of the gross assets acquired or disposed is concentrated in a single identifiable asset or a group of similar identifiable assets. The adoption of this guidance as of January 1, 2018 did not have a material impact on the company’s consolidated financial statements. In October 2016, the FASB issued new guidance eliminating the deferral of the tax effects of intra-entity asset transfers. The impact of this guidance in future periods will be dependent on the extent of future asset transfers which usually occur in connection with planning around acquisitions and other business structuring activities. The balance sheet impact of adopting this guidance as of January 1, 2018 is included in the table below. In February 2016, the FASB issued new guidance which requires lessees to record most leases on their balance sheets as lease liabilities, initially measured at the present value of the future lease payments, with corresponding right-of-use assets. The new guidance also sets forth new disclosure requirements related to leases. The company plans to adopt the guidance in 2019 using a modified retrospective method. The company is currently evaluating the impact of this guidance by considering which practical expedients to elect, deploying a software tool to assist in the accounting calculations, surveying functional groups that oversee vendor relationships, and developing processes and controls to manage the changes in the lease guidance and gather information for the required disclosures. The company expects that assets and liabilities will increase upon adoption for right-of-use assets and lease liabilities. The company’s future commitments under lease obligations are summarized in Note 10 to the consolidated financial statements for 2017 included in the company's Annual Report on Form 10-K, filed with the SEC. In January 2016, the FASB issued new guidance which affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. This guidance requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. The guidance also changes the accounting for investments without a readily determinable fair value and that do not qualify for the practical expedient permitted by the guidance to estimate fair value. The balance sheet impact of adopting this guidance as of January 1, 2018 is included in the table below. In May 2014, the FASB issued new revenue recognition guidance which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most previous revenue recognition guidance. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity's nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. During 2016 and 2017, the FASB issued additional guidance and clarification, including the elimination of certain SEC Staff Guidance. The guidance is effective for the company in 2018. The company has elected to adopt this guidance through application of the modified retrospective method by applying it to contracts that were not completed as of December 31, 2017 (in addition to new contracts in 2018). Adoption of new guidance that became effective on January 1, 2018, impacted the company's Consolidated Balance Sheet as follows: (In millions) December 31, 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 Accounts Receivable, Less Allowances $ 3,879 $ (8 ) $ — $ — $ — $ — $ 3,871 Inventories 2,971 (252 ) — — — — 2,719 Other Current Assets 804 296 — — — — 1,100 Other Assets 1,227 — — (77 ) — — 1,150 Contract Liabilities — 805 — — — — 805 Deferred Revenue 719 (719 ) — — — — — Other Accrued Expenses 1,848 (153 ) — — — — 1,695 Deferred Income Taxes 2,766 — — (57 ) — 2 2,711 Other Long-term Liabilities 2,569 54 — — — — 2,623 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 ) Had the company continued to use the revenue recognition guidance in effect prior to 2018, no material changes would have resulted to the consolidated statements of income, comprehensive income, or cash flows for the three and six months ended June 30, 2018 , from am ounts reported therein. However, inventories would have b een $295 million hi gher and other current assets would have b een $335 million lower as of June 30, 2018 , primarily as a result of differences in the accounting for pharmaceutical development and manufacturing services under the new revenue guidance. Under the prior guidance, costs of these services were recorded in inventory while under the new guidance, costs are expensed as the manufacturing service is performed and the company's rights to consideration are recorded as contract assets and included in other current assets. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions [Text Block] | Note 2 . Acquisitions The company’s acquisitions have historically been made at prices above the determined fair value of the acquired identifiable net assets, resulting in goodwill, due to expectations of the synergies that will be realized by combining the businesses. These synergies include the 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 as incurred. 2018 In 2018, the company acquired, within the Life Sciences Solutions segment, IntegenX Inc., a North America-based provider of a rapid DNA platform for use in forensics and law enforcement applications, for an aggregate purchase price of $65 million . The company has entered into an agreement to acquire Gatan, Inc., a wholly owned subsidiary of Roper Technologies, Inc., for approximately $925 million in cash. Gatan is a leading manufacturer of instrumentation and software used to enhance and extend the operation and performance of electron microscopes. The transaction, which is expected to be completed by the end of 2018, is subject to customary closing conditions, including regulatory approvals. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Note 3 . Revenue Disaggregated Revenue Revenue by type is as follows: Three Months Ended Six Months Ended June 30, June 30, (In millions) 2018 2018 Revenues Consumables 3,178 $ 6,289 Instruments 1,530 2,947 Services 1,370 2,695 Consolidated revenues $ 6,078 $ 11,931 Revenue by geographic region is as follows: Three Months Ended Six Months Ended June 30, June 30, (In millions) 2018 2018 Revenues North America $ 3,042 $ 5,945 Europe 1,549 3,067 Asia-Pacific 1,294 2,558 Other regions 193 361 Consolidated revenues $ 6,078 $ 11,931 Each reportable segment earns revenues from consumables, instruments and services in North America, Europe, Asia-Pacific and other regions. See note 4 for revenue by reportable segment and other geographic data. Remaining Performance Obligations The aggregate amount of the transaction price allocated to the remaining performance obligations for all open customer contracts as of June 30, 2018 was $5.12 billion . The company will recognize revenue for these performance obligations as they are satisfied, approximately 90% of which is expected to occur within the next twelve months . |
Business Segment and Geographic
Business Segment and Geographical Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segment and Geographical Information [Text Block] | Note 4 . Business Segment and Geographical Information The company’s financial performance is reported in four segments. A description of each segment follows. Life Sciences Solutions: provides an extensive portfolio of reagents, instruments and consumables used in biological and medical research, discovery and production of new drugs and vaccines as well as diagnosis of disease. These products and services are used by customers in pharmaceutical, biotechnology, agricultural, clinical, academic, and government markets. Analytical Instruments: provides a broad offering of instruments, consumables, software and services that are used for a range of applications in the laboratory, on the production line and in the field. These products and services are used by customers in pharmaceutical, biotechnology, academic, government, environmental and other research and industrial markets, as well as the clinical laboratory. Specialty Diagnostics: provides a wide range of diagnostic test kits, reagents, culture media, instruments and associated products used to increase the speed and accuracy of diagnoses. These products are used by customers in healthcare, clinical, pharmaceutical, industrial and food safety laboratories. Laboratory Products and Services: provides virtually everything needed for the laboratory, including a combination of self-manufactured and sourced products for customers in research, academic, government, industrial and healthcare settings. The segment also includes a comprehensive offering of outsourced services used by the pharmaceutical and biotech industries for drug development, clinical trials logistics and commercial drug manufacturing. The company’s management evaluates segment operating performance based on operating income before certain charges/credits to cost of revenues and selling, general and administrative expenses, principally associated with acquisition accounting; restructuring and other costs/income including costs arising from facility consolidations such as severance and abandoned lease expense and gains and losses from the sale of real estate and product lines as well as from significant litigation-related matters; and amortization of acquisition-related intangible assets. The company uses this measure because it helps management understand and evaluate the segments’ core operating results and facilitates comparison of performance for determining compensation. Business Segment Information Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, (In millions) 2018 2017 2018 2017 Revenues Life Sciences Solutions $ 1,569 $ 1,405 $ 3,068 $ 2,768 Analytical Instruments 1,311 1,166 2,568 2,218 Specialty Diagnostics 932 862 1,879 1,728 Laboratory Products and Services 2,550 1,792 4,963 3,491 Eliminations (284 ) (235 ) (547 ) (450 ) Consolidated revenues 6,078 4,990 11,931 9,755 Segment Income (a) Life Sciences Solutions 522 448 1,039 881 Analytical Instruments 291 232 537 424 Specialty Diagnostics 253 234 496 467 Laboratory Products and Services 337 245 617 461 Subtotal reportable segments (a) 1,403 1,159 2,689 2,233 Cost of revenues charges (5 ) (1 ) (8 ) (32 ) Selling, general and administrative charges, net (3 ) (7 ) (11 ) (38 ) Restructuring and other costs, net (17 ) (22 ) (62 ) (46 ) Amortization of acquisition-related intangible assets (441 ) (380 ) (885 ) (748 ) Consolidated operating income 937 749 1,723 1,369 Other expense, net (b) (131 ) (123 ) (283 ) (240 ) Income from continuing operations before income taxes $ 806 $ 626 $ 1,440 $ 1,129 Depreciation Life Sciences Solutions $ 29 $ 32 $ 60 $ 65 Analytical Instruments 17 17 35 34 Specialty Diagnostics 18 18 37 35 Laboratory Products and Services 66 30 129 60 Consolidated depreciation $ 130 $ 97 $ 261 $ 194 (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. Geographical Information Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, (In millions) 2018 2017 2018 2017 Revenues (c) United States $ 2,914 $ 2,484 $ 5,670 $ 4,861 China 648 512 1,189 953 Other 2,516 1,994 5,072 3,941 Consolidated revenues $ 6,078 $ 4,990 $ 11,931 $ 9,755 (c) Revenues are attributed to countries based on customer location. |
Other Expense, Net
Other Expense, Net | 6 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net [Text Block] | Note 5 . Other Expense, Net The components of other expense, net, in the accompanying statement of income are as follows: Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, (In millions) 2018 2017 2018 2017 Interest Income $ 31 $ 18 $ 51 $ 36 Interest Expense (170 ) (134 ) (333 ) (269 ) Other Items, Net 8 (7 ) (1 ) (7 ) Other Expense, Net $ (131 ) $ (123 ) $ (283 ) $ (240 ) Other Items, Net In all periods, other items, net includes currency transaction gains and losses on monetary assets and liabilities and net periodic pension benefit cost/income, excluding the service cost component which is included in operating expenses on the accompanying statement of income. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | Note 6 . Income Taxes The provision for income taxes in the accompanying statement of income differs from the provision calculated by applying the statutory federal income tax rate to income before provision for income taxes due to the following: Six Months Ended June 30, July 1, (In millions) 2018 2017 Statutory Federal Income Tax Rate 21 % 35 % Provision for Income Taxes at Statutory Rate $ 302 $ 395 Increases (Decreases) Resulting From: Foreign rate differential (116 ) (190 ) Income tax credits (119 ) (114 ) Global intangible low-taxed income 81 — Foreign-derived intangible income (22 ) — Singapore tax holiday (19 ) (10 ) Impact of change in tax laws and apportionment on deferred taxes 9 (63 ) Transition tax and other initial impacts of U.S. tax reform 70 — Reversal of tax reserves, net (49 ) — Excess tax benefits from stock options and restricted stock units (36 ) (35 ) Other, net 8 (18 ) Provision for (benefit from) income taxes $ 109 $ (35 ) The company has operations and a taxable presence in approximately 50 countries outside the U.S. Some of these countries have lower tax rates than the U.S. The company’s ability to obtain a benefit from lower tax rates outside the U.S. is dependent on its relative levels of income in countries outside the U.S. and on the statutory tax rates in those countries. In the first quarter of 2018, the company recorded a net tax provision of $21 million to adjust the estimated initial impacts of U.S. tax reform recorded in 2017, consisting of an incremental provision of $70 million offset in part by a $49 million reduction of related unrecognized tax benefits established in 2017. The adjustment was required based on new U.S. Treasury guidance released in the first quarter of 2018. The company has significant activities in Singapore and has received considerable tax incentives. The local taxing authority granted the company pioneer company status which provides an incentive encouraging companies to undertake activities that have the effect of promoting economic or technological development in Singapore. This incentive equates to a tax exemption on earnings associated with most of the company’s manufacturing activities in Singapore and continues through December 31, 2026 . In 2018 and 2017 , the impact of this tax holiday decreased the annual effective tax rates by 1.3 percentage points and 0.9 percentage point, respectively, and increased diluted earnings per share by approximately $0.05 and $0.03 , respectively. Unrecognized Tax Benefits As of June 30, 2018 , the company had $1.29 billion of unrecognized tax benefits substantially all of which, if recognized, would reduce the effective tax rate. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: (In millions) 2018 Balance at beginning of year $ 1,409 Reductions due to acquisitions (9 ) Additions for tax positions of current year 3 Additions for tax positions of prior years 5 Reductions for tax positions of prior years (69 ) Settlements (52 ) Balance at end of period $ 1,287 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 7 . Earnings per Share Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, (In millions except per share amounts) 2018 2017 2018 2017 Income from Continuing Operations $ 752 $ 613 $ 1,331 $ 1,164 Loss from Discontinued Operations — (1 ) — (1 ) Net Income $ 752 $ 612 $ 1,331 $ 1,163 Basic Weighted Average Shares 403 390 402 390 Plus Effect of: Stock options and restricted units 3 3 4 4 Diluted Weighted Average Shares 406 393 406 394 Basic Earnings per Share: Continuing operations $ 1.87 $ 1.57 $ 3.31 $ 2.98 Discontinued operations — — — — Basic Earnings per Share $ 1.87 $ 1.57 $ 3.31 $ 2.98 Diluted Earnings per Share: Continuing operations $ 1.85 $ 1.56 $ 3.28 $ 2.96 Discontinued operations — — — — Diluted Earnings per Share $ 1.85 $ 1.56 $ 3.28 $ 2.95 Antidilutive Stock Options Excluded from Diluted Weighted Average Shares 2 2 2 2 |
Debt and Other Financing Arrang
Debt and Other Financing Arrangements | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Other Financing Arrangements [Text Block] | Note 8 . Debt and Other Financing Arrangements Effective Interest Rate at June 30, June 30, December 31, (Dollars in millions) 2018 2018 2017 Commercial Paper — % $ 1,005 $ 960 Floating Rate 2-Year Senior Notes, Due 8/9/2018 (euro-denominated) 0.37 % 701 721 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 % 584 600 6.00% 10-Year Senior Notes, Due 3/1/2020 2.97 % 750 750 4.70% 10-Year Senior Notes, Due 5/1/2020 4.23 % 300 300 1.50% 5-Year Senior Notes, Due 12/1/2020 (euro-denominated) 1.62 % 497 510 5.00% 10-Year Senior Notes, Due 1/15/2021 3.25 % 400 400 4.50% 10-Year Senior Notes, Due 3/1/2021 6.74 % 1,000 1,000 3.60% 10-Year Senior Notes, Due 8/15/2021 6.55 % 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 % 584 600 3.15% 10-Year Senior Notes, Due 1/15/2023 3.31 % 800 800 3.00% 7-Year Senior Notes, Due 4/15/2023 6.76 % 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 % 1,168 1,201 2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) 2.10 % 748 768 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 % 818 840 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 % 584 600 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 % 701 721 1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) 2.08 % 818 840 2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) 2.94 % 818 840 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 23 24 Total Borrowings at Par Value 19,649 21,175 Fair Value Hedge Accounting Adjustments (132 ) (70 ) Unamortized Discount, Net (11 ) (2 ) Unamortized Debt Issuance Costs (86 ) (95 ) Total Borrowings at Carrying Value 19,420 21,008 Less: Short-term Obligations and Current Maturities 1,711 2,135 Long-term Obligations $ 17,709 $ 18,873 The effective interest rates for the fixed-rate debt include the stated interest on the notes, the accretion of any discount or amortization of any premium, the amortization of any debt issuance costs and, if applicable, adjustments related to hedging. See Note 11 for fair value information pertaining to the company’s long-term obligations. Credit Facilities The company has a revolving credit facility with a bank group that provides for up to $2.50 billion of unsecured multi-currency revolving credit. The facility expires in July 2021 . The agreement calls for interest at either a LIBOR-based rate, a EURIBOR-based rate (for funds drawn in Euro) or a rate based on the prime lending rate of the agent bank, at the company’s option. The agreement contains affirmative, negative and financial covenants, and events of default customary for facilities of this type. The covenants in our revolving credit facility (the Facility) include a Consolidated Leverage Ratio (total debt-to-Consolidated EBITDA) and a Consolidated Interest Coverage Ratio (Consolidated EBITDA to Consolidated Interest Expense), as such terms are defined in the Facility. Specifically, the company has agreed that, so long as any lender has any commitment under the Facility, any letter of credit is outstanding under the Facility, or any loan or other obligation is outstanding under the Facility, it will maintain a maximum Consolidated Leverage Ratio of 3.5 :1.0 for the third quarter of 2018 and thereafter. The company has also agreed that so long as any lender has any commitment under the Facility or any letter of credit is outstanding under the Facility, or any loan or other obligation is outstanding under the Facility, it will maintain a minimum Consolidated Interest Coverage Ratio of 3.0 :1.0 as of the last day of any fiscal quarter. As of June 30, 2018 , no borrowings were outstanding under the Facility, although available capacity was reduced by approximately $83 million as a result of outstanding letters of credit. Commercial Paper Programs The company has commercial paper programs pursuant to which it may issue and sell unsecured, short-term promissory notes (CP Notes). Under the U.S. program, a) maturities may not exceed 397 days from the date of issue and b) the CP Notes are issued on a private placement basis under customary terms in the commercial paper market and are not redeemable prior to maturity nor subject to voluntary prepayment. Under the euro program, maturities may not exceed 183 days and may be denominated in euro, U.S. dollars, Japanese yen, British pounds sterling, Swiss franc, Canadian dollars or other currencies. Under both programs, the CP Notes are issued at a discount from par (or premium to par, in the case of negative interest rates), or, alternatively, are sold at par and bear varying interest rates on a fixed or floating basis. As of June 30, 2018 , outstanding borrowings under these programs were $1.01 billion , with a weighted average remaining period to maturity of 58 days and are classified as short-term obligations in the accompanying balance sheet. Senior Notes Interest on the floating rate senior notes is payable quarterly. Interest is payable annually on the other euro-denominated senior notes and semi-annually on all other senior notes. Each of the notes may be redeemed at a redemption price of 100% of the principal amount plus a specified make-whole premium and accrued interest. The company is subject to certain affirmative and negative covenants under the indentures governing the senior notes, the most restrictive of which limits the ability of the company to pledge principal properties as security under borrowing arrangements. Thermo Fisher Scientific (Finance I) B.V., a wholly-owned finance subsidiary of the company, issued the Floating Rate Senior Notes due 2018 included in the table above. This subsidiary has no independent function other than financing activities. The Floating Rate Senior Notes due 2018 are fully and unconditionally guaranteed by the company and no other subsidiaries of the company have guaranteed the obligations. Interest Rate Swap Arrangements and related Cross-currency Interest Rate Swap Arrangements The company has entered into LIBOR-based interest rate swap arrangements with various banks on several of its outstanding senior notes. The aggregate amounts of the swaps are equal to the principal amounts of the notes and the payment dates of the swaps coincide with the interest payment dates of the notes. The swap contracts provide for the company to pay a variable interest rate and receive a fixed rate. The variable interest rates reset monthly. The swaps have been accounted for as fair value hedges of the notes. See Note 11 for additional information on the interest rate swap arrangements and related cross-currency interest rate swap arrangements. The following table summarizes the outstanding interest rate swap arrangements on the company's senior notes at June 30, 2018 : Aggregate Notional Amount Pay Rate as of (Dollars in millions) Pay Rate June 30, Receive Rate 4.50% Senior Notes due 2021 (a) 1,000 1-month LIBOR + 3.4420% 5.4245 % 4.50 % 3.60% Senior Notes due 2021 1,100 1-month LIBOR + 2.5150% 4.5883 % 3.60 % 3.00% Senior Notes due 2023 (a) 1,000 1-month LIBOR + 1.7640% 3.8373 % 3.00 % (a) The payments on $1.2 billion notional value of these interest rate swaps are offset in part by cross-currency interest rate swaps which effectively reduced the pay rate as of June 30, 2018 from a weighted average of 4.63% to a weighted average of 1.96% . In 2018, the company entered into $1.2 billion notional value of cross-currency interest rate swaps, which effectively convert a portion of the semi-annual payments related to the variable rate, U.S. dollar denominated, LIBOR-based interest rate swaps to payments on variable rate, euro denominated, EURIBOR-based cross-currency interest rate swaps. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Text Block] | Note 9 . Commitments and Contingencies Environmental Matters 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 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 environmental laws and regulations, when it is probable that a liability has been incurred and the amount of such liability can be reasonably estimated. The company calculates estimates based upon several factors, including reports prepared by environmental specialists and management’s knowledge of and experience with these environmental matters. The company includes in these estimates potential costs for investigation, remediation and operation and maintenance of cleanup sites. At June 30, 2018 , the company’s total environmental liability was approximately $52 million . While management believes the accruals for environmental remediation are adequate based on current estimates of remediation costs, the company may be subject to additional remedial or compliance costs due to future events such as changes in existing laws and regulations, changes in agency direction or enforcement policies, developments in remediation technologies or changes in the conduct of the company’s operations, which could have a material adverse effect on the company’s financial position, results of operations or cash flows. Litigation and Related Contingencies There are various lawsuits and claims pending against the company including matters involving product liability, intellectual property, employment and commercial issues. The company determines the probability and range of possible loss based on the current status of each of these matters. A liability is recorded in the financial statements if it is believed to be probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The company establishes a liability that is an estimate of amounts expected to be paid in the future for events that have already occurred. 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 accrued liabilities are based on management’s judgment as to the probability of losses for asserted and unasserted claims and, where applicable, actuarially determined estimates. Accrual estimates are adjusted as additional information becomes known or payments are made. The amount of ultimate loss may differ from these estimates. Due to the inherent uncertainties associated with pending litigation or claims, the company cannot predict the outcome, nor, with respect to certain pending litigation or claims where no liability has been accrued, make a meaningful estimate of the reasonably possible loss or range of loss that could result from an unfavorable outcome. The company has no material accruals for pending litigation or claims for which accrual amounts are not disclosed below or in the company's 2017 financial statements and notes included in the company's Annual Report on Form 10-K filed with the SEC, nor are material losses deemed probable for such matters. It is reasonably possible, however, that an unfavorable outcome that exceeds the company’s current accrual estimate, if any, for one or more of the matters described below could have a material adverse effect on the company’s results of operations, financial position and cash flows. Product Liability, Workers Compensation and Other Personal Injury Matters 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 possible loss when a range of possible loss can be estimated. The company records estimated amounts due from insurers related to certain product liabilities as an asset. Although the company believes that the amounts accrued 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. 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 payment history as well as the financial condition and ratings of its insurers on an ongoing basis. Intellectual Property Matters On May 26, 2010, Promega Corp. & Max-Planck-Gesellschaft Zur Forderung Der Wissenschaften EV filed a complaint against Life Technologies in the United States District Court for the Western District of Wisconsin. The plaintiffs allege patent infringement by sales and uses of Applied Biosystems’ short tandem repeat DNA identification products outside the scope of a 2006 license agreement. The plaintiff sought damages for alleged willful infringement, attorneys’ fees, costs, prejudgment interest, and injunctive relief. Although a jury initially found willful infringement and assessed damages at $52 million the District Court subsequently overturned the verdict on the grounds that the plaintiff had failed to prove infringement. The District Court entered judgment in favor of Life Technologies; and plaintiffs and Life Technologies filed cross-appeals with the United States Court of Appeals for the Federal Circuit. The $52 million award was accrued by Life Technologies and the liability was assumed by the company as of the date of the acquisition. On December 15, 2014, the Court of Appeals issued a decision invalidating four of the plaintiffs’ patents, but finding infringement by Life Technologies of the remaining fifth patent. The Court of Appeals also ordered a new trial on damages in the District Court. Life Technologies' petition to the U.S. Supreme Court seeking review of the Court of Appeals’ judgment was granted on June 27, 2016, and the case was stayed in the District Court pending the outcome of the Supreme Court’s review. On February 22, 2017, the Supreme Court issued a decision reversing the Court of Appeals’ judgment and remanding the case to the Court of Appeals for further proceedings in view of the Supreme Court’s legal interpretation of the patent law statute in question. On November 13, 2017, the Court of Appeals issued a decision holding that Promega is not entitled to recover any damages and affirming the District Court’s grant of judgment in favor of Life Technologies and denial of Promega’s motion for a new trial. The Court of Appeals denied Promega’s petition for rehearing on February 14, 2018, and Promega filed a petition with the U.S. Supreme Court on June 14, 2018, seeking review of the Court of Appeals' decision. The company has maintained the $52 million accrual, pending conclusion of this matter. On June 3, 2013, Unisone Strategic IP filed a complaint against Life Technologies in the United States District Court for the Southern District of California alleging patent infringement by Life Technologies’ supply chain management system software, which operates with product "supply centers" installed at customer sites. Plaintiff seeks damages for alleged willful infringement, attorneys’ fees, costs, and injunctive relief. On August 24, 2017, Unisone filed an appeal from a decision by the Patent Trial and Appeal Board that found the challenged patent claims invalid. |
Comprehensive Income and Shareh
Comprehensive Income and Shareholders Equity | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income and Shareholders' Equity [Text Block] | Note 10 . Comprehensive Income and Shareholders' Equity Comprehensive Income (Loss) Comprehensive income (loss) 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. Changes in each component of accumulated other comprehensive items, net of tax are as follows: (In millions) Currency Unrealized Unrealized Pension and 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 (415 ) — — 3 (412 ) Amounts reclassified from accumulated other comprehensive items — — 4 8 12 Net other comprehensive items (415 ) — 4 11 (400 ) Balance at June 30, 2018 $ (2,224 ) $ — $ (57 ) $ (210 ) $ (2,491 ) |
Fair Value Measurements and Fai
Fair Value Measurements and Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Fair Value of Financial Instruments [Text Block] | Note 11 . Fair Value Measurements and Fair Value of Financial Instruments Fair Value Measurements The company uses the market approach technique to value its financial instruments and there were no changes in valuation techniques during 2018 . The company’s financial assets and liabilities carried at fair value are primarily comprised of insurance contracts, investments in money market funds, derivative contracts, mutual funds holding publicly traded securities and other investments in unit trusts held as assets to satisfy outstanding deferred compensation and retirement liabilities; and acquisition-related contingent consideration. 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 tables present information about the company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 : June 30, Quoted Significant Significant (In millions) 2018 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 52 $ 52 $ — $ — Bank time deposits 2 2 — — Investments in mutual funds and other similar instruments 13 13 — — Warrants 4 — 4 — Insurance contracts 116 — 116 — Derivative contracts 9 — 9 — Total Assets $ 196 $ 67 $ 129 $ — Liabilities Derivative contracts $ 176 $ — $ 176 $ — Contingent consideration 40 — — 40 Total Liabilities $ 216 $ — $ 176 $ 40 December 31, Quoted Significant Significant (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 The company determines the fair value of its insurance contracts by obtaining the cash surrender value of the contracts from the issuer. The fair value of derivative contracts is the estimated amount that the company would receive/pay upon liquidation of the contracts, taking into account the change in interest rates and currency exchange rates. The company determines the fair value of acquisition-related contingent consideration based on the probability-weighted discounted cash flows associated with such future payments. Changes to the fair value of contingent consideration are recorded in selling, general and administrative expense. The following table provides a rollforward of the fair value, as determined by level 3 inputs, of the contingent consideration. Six Months Ended June 30, July 1, (In millions) 2018 2017 Contingent Consideration Beginning Balance $ 35 $ 6 Acquisitions 11 9 Payments (5 ) — Change in fair value included in earnings (1 ) 26 Ending Balance $ 40 $ 41 Derivative Contracts The following table provides the aggregate notional value of outstanding derivative contracts. June 30, December 31, (In millions) 2018 2017 Notional Amount Interest rate swaps (described in Note 8) $ 3,100 $ 3,100 Cross-currency interest rate swaps - designated as net investment hedges 1,200 — Currency exchange contracts 1,974 2,921 While certain derivatives are subject to netting arrangements with counterparties, the company does not offset derivative assets and liabilities within the consolidated balance sheet. The following tables present the fair value of derivative instruments in the consolidated balance sheet and statement of income. Fair Value – Assets Fair Value – Liabilities June 30, December 31, June 30, December 31, (In millions) 2018 2017 2018 2017 Derivatives Designated as Hedging Instruments Interest rate swaps (a) $ — $ — $ 172 $ 124 Cross-currency interest rate swaps (b) 6 — — — Derivatives Not Designated as Hedging Instruments Currency exchange contracts (c) 3 10 4 15 Total Derivatives $ 9 $ 10 $ 176 $ 139 (a) The fair value of the interest rate swaps is included in the consolidated balance sheet under the caption other long-term liabilities. (b) The fair value of the cross-currency interest rate swaps is included in the consolidated balance sheet under the caption other assets. (c) The fair value of the currency exchange contracts is included in the consolidated balance sheet under the captions other current assets or other accrued expenses. The following amounts related to cumulative basis adjustments for fair value hedges were included in the consolidated balance sheet under the caption long-term obligations: Carrying Amount of the Hedged Liability Cumulative Amount of Fair Value Hedging Adjustment - Increase (Decrease) Included in Carrying Amount of Liability (d) June 30, December 31, June 30, December 31, (In millions) 2018 2017 2018 2017 Long-term Obligations $ 3,250 $ 3,309 $ (132 ) $ (70 ) (d) Includes increases in the carrying amount of $37 million and $43 million at June 30, 2018 and December 31, 2017 , respectively, on discontinued hedging relationships. Gain (Loss) Recognized Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, (In millions) 2018 2017 2018 2017 Fair Value Hedging Relationships Interest rate swaps Hedged long-term obligations - included in other expense, net $ (11 ) $ 16 $ (49 ) $ 10 Derivatives designated as hedging instruments - included in other expense, net 10 (14 ) 52 (5 ) Derivatives Designated as Cash Flow Hedges Interest rate swaps Amount reclassified from accumulated other comprehensive items to other expense, net (3 ) (3 ) (6 ) (6 ) Derivatives Designated as Net Investment Hedges Foreign currency-denominated debt Included in currency translation adjustment within other comprehensive items 400 (283 ) 200 (329 ) Cross-currency interest rate swaps Included in currency translation adjustment within other comprehensive items 3 — 3 — Included in other expense, net 3 — 3 — Derivatives Not Designated as Hedging Instruments Currency exchange contracts Included in cost of revenues 2 (1 ) — (2 ) Included in other expense, net 35 52 27 71 Gains and losses recognized on currency exchange contracts and the interest rate swaps designated as fair value hedges are included in the consolidated statement of income together with the corresponding, offsetting losses and gains on the underlying hedged transactions. The company uses foreign currency-denominated debt and cross-currency interest rate swaps to partially hedge its net investments in foreign operations against adverse movements in exchange rates. The company’s euro-denominated senior notes and cross-currency interest rate swaps have been designated as, and are effective as, economic hedges of part of the net investment in a foreign operation. Accordingly, foreign currency transaction gains or losses due to spot rate fluctuations on the euro-denominated debt instruments and contract fair value changes on the cross-currency interest rate swaps, excluding interest accruals, are included in currency translation adjustment within other comprehensive items and shareholders’ equity. See Note 1 to the consolidated financial statements for 2017 included in the company's Annual Report on Form 10-K and Note 8 herein for additional information on the company's risk management objectives and strategies. Fair Value of Other Financial Instruments The carrying value and fair value of the company’s notes receivable and debt obligations are as follows: June 30, 2018 December 31, 2017 Carrying Fair Carrying Fair (In millions) Value Value Value Value Notes Receivable $ 97 $ 101 $ 89 $ 93 Debt Obligations: Senior notes $ 18,392 $ 18,603 $ 20,024 $ 20,639 Commercial paper 1,005 1,005 960 960 Other 23 23 24 24 $ 19,420 $ 19,631 $ 21,008 $ 21,623 The fair value of debt obligations was determined based on quoted market prices and on borrowing rates available to the company at the respective period ends which represent level 2 measurements. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information [Text Block] | Note 12 . Supplemental Cash Flow Information Six Months Ended June 30, July 1, (In millions) 2018 2017 Non-cash Investing and Financing Activities Declared but unpaid dividends $ 70 $ 60 Issuance of stock upon vesting of restricted stock units 66 38 Cash, cash equivalents and restricted cash is included in the consolidated balance sheet as follows: June 30, December 31, (In millions) 2018 2017 Cash and Cash Equivalents $ 937 $ 1,335 Restricted Cash Included in Other Current Assets 17 24 Restricted Cash Included in Other Assets 2 2 Cash, Cash Equivalents and Restricted Cash $ 956 $ 1,361 Amounts included in restricted cash represent funds held as collateral for bank guarantees and incoming cash in China awaiting government administrative clearance. |
Restructuring and Other Costs,
Restructuring and Other Costs, Net | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs, Net [Text Block] | Note 13 . Restructuring and Other Costs, Net Restructuring and other costs in the first six months of 2018 included continuing charges for headcount reductions and facility consolidations in an effort to streamline operations, including the closure and consolidation of operations within several facilities in the U.S. and Europe; third-party transaction/integration costs related to the acquisition of Patheon; sales of inventories revalued at the date of acquisition; and net charges for litigation matters. In the first six months of 2018 , severance actions associated with facility consolidations and cost reduction measures affected approximately 1% of the company’s workforce. As of August 3, 2018 , the company has identified restructuring actions that will result in additional charges of approximately $100 million , primarily in 2018 and 2019 , which will be recorded when specified criteria are met, such as communication of benefit arrangements and abandonment of leased facilities. Second Quarter of 2018 During the second quarter of 2018 , the company recorded net restructuring and other costs by segment as follows: (In millions) Cost of Selling, Restructuring Total Life Sciences Solutions $ — $ — $ 10 $ 10 Analytical Instruments 2 (1 ) 4 5 Specialty Diagnostics — — — — Laboratory Products and Services 3 4 3 10 Corporate — — — — $ 5 $ 3 $ 17 $ 25 The principal components of net restructuring and other costs by segment are as follows: Life Sciences Solutions In the second quarter of 2018 , the Life Sciences Solutions segment recorded $10 million of net restructuring and other charges, principally charges for severance and other costs associated with facility consolidations in the U.S. Analytical Instruments In the second quarter of 2018 , the Analytical Instruments segment recorded $5 million of net restructuring and other charges. The segment recorded $2 million of charges to cost of revenues for sales of inventories revalued at the date of acquisition; $1 million of income to selling, general, and administrative expenses for contingent acquisition consideration; and $4 million of restructuring and other costs, primarily for employee severance and other costs associated with facility consolidations in the U.S. and Europe. Laboratory Products and Services In the second quarter of 2018 , the Laboratory Products and Services segment recorded $10 million of net restructuring and other charges. The segment recorded $3 million of charges to cost of revenues for sales of inventories revalued at the date of acquisition, as well as $4 million of charges to selling, general, and administrative expenses for third-party transaction/integration costs related to the acquisition of Patheon. The segment also recorded $3 million of restructuring and other costs, primarily for employee severance and hurricane response costs. First Six Months of 2018 During the first six months of 2018 , the company recorded net restructuring and other costs by segment as follows: (In millions) Cost of Selling, Restructuring Total Life Sciences Solutions $ — $ — $ 23 $ 23 Analytical Instruments 2 (1 ) 21 22 Specialty Diagnostics — — 4 4 Laboratory Products and Services 6 11 13 30 Corporate — 1 1 2 $ 8 $ 11 $ 62 $ 81 The principal components of net restructuring and other costs by segment are as follows: Life Sciences Solutions In the first six months of 2018 , the Life Sciences Solutions segment recorded $23 million of net restructuring and other charges, principally for severance, litigation-related matters, and other costs associated with facility consolidations in the U.S. Analytical Instruments In the first six months of 2018 , the Analytical Instruments segment recorded $22 million of net restructuring and other charges. The segment recorded charges to cost of revenues of $2 million for the sales of inventory revalued at the date of acquisition; $1 million of income to selling, general, and administrative expense for contingent acquisition consideration; and $21 million of restructuring and other costs, primarily abandoned facilities costs associated with the remediation and closure of a manufacturing facility in the U.S. Specialty Diagnostics In the first six months of 2018 , the Specialty Diagnostics segment recorded $4 million of net restructuring and other charges for severance and other costs associated with facility consolidations in the U.S. and Europe. Laboratory Products and Services In the first six months of 2018 , the Laboratory Products and Services segment recorded $30 million of net restructuring and other charges. The segment recorded charges to cost of revenues of $6 million for the sales of inventory revalued at the date of acquisition, as well as $11 million of charges to selling, general, and administrative expenses for third-party transaction/integration costs related to the acquisition of Patheon. The segment also recorded $13 million of restructuring and other costs, primarily for employee severance, as well as hurricane response costs. Corporate In the first six months of 2018 , the company recorded $2 million of net restructuring and other charges primarily for severance. The following table summarizes the cash components of the company’s restructuring plans. The non-cash components and other amounts reported as restructuring and other costs, net, in the accompanying statement of income have been summarized in the notes to the tables. Accrued restructuring costs are included in other accrued expenses in the accompanying balance sheet. (In millions) Severance Abandonment of Excess Facilities Other (a) Total Balance at December 31, 2017 $ 30 $ 40 $ 6 $ 76 Costs incurred in 2018 (c) 29 20 8 57 Reserves reversed (b) (5 ) (1 ) — (6 ) Payments (23 ) (14 ) (9 ) (46 ) Balance at June 30, 2018 $ 31 $ 45 $ 5 $ 81 (a) Other includes relocation and moving expenses associated with facility consolidations, as well as employee retention costs which are accrued ratably over the period through which employees must work to qualify for a payment. (b) Represents reductions in cost of plans. (c) Excludes $11 million of charges, net, primarily associated with litigation-related matters, hurricane response costs, and non-cash compensation due at an acquired business. The company expects to pay accrued restructuring costs as follows: severance, employee-retention obligations and other costs, primarily through 2018 ; and abandoned-facility payments, over lease terms expiring through 2027 . |
Nature of Operations and Summ23
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The company recognizes revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Consumables revenues consist of single-use products and are recognized at a point in time following the transfer of control of such products to the customer, which generally occurs upon shipment. Instruments revenues typically consist of longer-lived assets that, for the substantial majority of sales, are recognized at a point in time in a manner similar to consumables. Service revenues (clinical trial logistics, pharmaceutical development and manufacturing services, asset management, diagnostic testing, training, service contracts, and field services including related time and materials) are recognized over time as customers receive and consume the benefits of such services. For revenues recognized over time, the company generally uses costs accumulated as inputs to measure progress. For contracts that contain multiple performance obligations, the company allocates the consideration to which it expects to be entitled to each performance obligation based on relative standalone selling prices and recognizes the related revenue when or as control of each individual performance obligation is transferred to customers. The company exercises judgment in determining the timing of revenue by analyzing the point in time or the period over which the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the asset. The company immediately expenses contract costs that would otherwise be capitalized and amortized over a period of less than one year. Payments from customers for most instruments, consumables and services are typically due in a fixed number of days after shipment or delivery of the product. Service arrangements commonly call for payments in advance of performing the work (e.g. extended service contracts), upon completion of the service (e.g. pharmaceutical development and manufacturing) or a mix of both. |
Use of Estimates [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In addition, significant estimates were made in estimating future cash flows to assess potential impairment of assets and in determining the fair value of acquired intangible assets (Note 2 ) and the ultimate loss from abandoning leases at facilities being exited (Note 13 ). Actual results could differ from those estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In February 2018, the FASB issued new guidance to allow reclassifications from accumulated other comprehensive items (AOCI) to retained earnings for certain tax effects on items within AOCI resulting from the Tax Cuts and Jobs Act of 2017 (the Tax Act). The company adopted this guidance in January 2018 and recorded the reclassifications in the period of adoption. The balance sheet impact of adopting this guidance is included in the table below. This guidance only relates to the effects of the Tax Act. For all other tax law changes that have occurred or may occur in the future, the company reclassifies the tax effects to the consolidated statement of income on an item-by-item basis when the pre-tax item in AOCI is reclassified to income. In December 2017, the SEC staff issued guidance to address the application of accounting guidance in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act enacted on December 22, 2017. The company reported provisional amounts in its 2017 financial statements for certain income tax effects of the Tax Act for which a reasonable estimate could be determined but for which the accounting impact may change. For example, these estimates may be impacted by the need for further analysis and future clarification and guidance regarding available tax accounting methods and elections, earnings and profits computations and state tax conformity to federal changes. Adjustments to provisional amounts identified during the measurement period, which may be up to December 22, 2018, will be included as adjustments to Provision for Income Taxes in the period the amounts are determined (Note 6 ). In August 2017, the FASB issued new guidance to simplify the application of hedge accounting guidance. Among other things, the new guidance will permit more hedging strategies to qualify for hedge accounting, allow for additional time to perform an initial assessment of a hedge’s effectiveness, and permit a qualitative effectiveness test for certain hedges after initial qualification. The company adopted this guidance in January 2018. The balance sheet impact of adopting this guidance is included in the table below. In March 2017, the FASB issued new guidance intended to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires the service cost component of net periodic cost be reported in the same line item(s) as other employee compensation costs and all other components of the net periodic cost be reported in the income statement below operating income. The company adopted this guidance on January 1, 2018 and applied the changes to the statement of income retrospectively. As a result of adoption of this guidance, the accompanying 2017 statement of income reflects the following changes from previously reported amounts: Three Months Ended Six Months Ended July 1, July 1, (In millions) 2017 2017 Increase in Total Costs and Operating Expenses (principally Selling, General and Administrative Expenses) $ 3 $ 5 Decrease in Operating Income 3 5 Increase in Other Income (Expense) 3 5 In January 2017, the FASB issued new guidance clarifying the definition of a business and providing criteria to determine when an integrated set of assets and activities is not defined as a business. The new guidance requires such integrated sets to be defined as an asset (and not a business) if substantially all of the fair value of the gross assets acquired or disposed is concentrated in a single identifiable asset or a group of similar identifiable assets. The adoption of this guidance as of January 1, 2018 did not have a material impact on the company’s consolidated financial statements. In October 2016, the FASB issued new guidance eliminating the deferral of the tax effects of intra-entity asset transfers. The impact of this guidance in future periods will be dependent on the extent of future asset transfers which usually occur in connection with planning around acquisitions and other business structuring activities. The balance sheet impact of adopting this guidance as of January 1, 2018 is included in the table below. In February 2016, the FASB issued new guidance which requires lessees to record most leases on their balance sheets as lease liabilities, initially measured at the present value of the future lease payments, with corresponding right-of-use assets. The new guidance also sets forth new disclosure requirements related to leases. The company plans to adopt the guidance in 2019 using a modified retrospective method. The company is currently evaluating the impact of this guidance by considering which practical expedients to elect, deploying a software tool to assist in the accounting calculations, surveying functional groups that oversee vendor relationships, and developing processes and controls to manage the changes in the lease guidance and gather information for the required disclosures. The company expects that assets and liabilities will increase upon adoption for right-of-use assets and lease liabilities. The company’s future commitments under lease obligations are summarized in Note 10 to the consolidated financial statements for 2017 included in the company's Annual Report on Form 10-K, filed with the SEC. In January 2016, the FASB issued new guidance which affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. This guidance requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. The guidance also changes the accounting for investments without a readily determinable fair value and that do not qualify for the practical expedient permitted by the guidance to estimate fair value. The balance sheet impact of adopting this guidance as of January 1, 2018 is included in the table below. In May 2014, the FASB issued new revenue recognition guidance which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most previous revenue recognition guidance. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity's nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. During 2016 and 2017, the FASB issued additional guidance and clarification, including the elimination of certain SEC Staff Guidance. The guidance is effective for the company in 2018. The company has elected to adopt this guidance through application of the modified retrospective method by applying it to contracts that were not completed as of December 31, 2017 (in addition to new contracts in 2018). Adoption of new guidance that became effective on January 1, 2018, impacted the company's Consolidated Balance Sheet as follows: (In millions) December 31, 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 Accounts Receivable, Less Allowances $ 3,879 $ (8 ) $ — $ — $ — $ — $ 3,871 Inventories 2,971 (252 ) — — — — 2,719 Other Current Assets 804 296 — — — — 1,100 Other Assets 1,227 — — (77 ) — — 1,150 Contract Liabilities — 805 — — — — 805 Deferred Revenue 719 (719 ) — — — — — Other Accrued Expenses 1,848 (153 ) — — — — 1,695 Deferred Income Taxes 2,766 — — (57 ) — 2 2,711 Other Long-term Liabilities 2,569 54 — — — — 2,623 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 ) Had the company continued to use the revenue recognition guidance in effect prior to 2018, no material changes would have resulted to the consolidated statements of income, comprehensive income, or cash flows for the three and six months ended June 30, 2018 , from am ounts reported therein. However, inventories would have b een $295 million hi gher and other current assets would have b een $335 million lower as of June 30, 2018 , primarily as a result of differences in the accounting for pharmaceutical development and manufacturing services under the new revenue guidance. Under the prior guidance, costs of these services were recorded in inventory while under the new guidance, costs are expensed as the manufacturing service is performed and the company's rights to consideration are recorded as contract assets and included in other current assets. |
Business Combinations Policy [Policy Text Block] | The company’s acquisitions have historically been made at prices above the determined fair value of the acquired identifiable net assets, resulting in goodwill, due to expectations of the synergies that will be realized by combining the businesses. These synergies include the 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 as incurred. |
Acquisitions (Policies)
Acquisitions (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations Policy [Policy Text Block] | The company’s acquisitions have historically been made at prices above the determined fair value of the acquired identifiable net assets, resulting in goodwill, due to expectations of the synergies that will be realized by combining the businesses. These synergies include the 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 as incurred. |
Nature of Operations and Summ25
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | Contract asset and liability balances are as follows: June 30, January 1, (In millions) 2018 2018 Current Contract Assets, Net $ 471 $ 396 Current Contract Liabilities 816 805 Noncurrent Contract Liabilities 337 302 |
Warranty Obligations [Table Text Block] | Warranty Obligations The liability for warranties is included in other accrued expenses in the accompanying balance sheet. The changes in the carrying amount of standard product warranty obligations are as follows: Six Months Ended June 30, July 1, (In millions) 2018 2017 Beginning Balance $ 87 $ 78 Provision charged to income 58 54 Usage (53 ) (51 ) Acquisitions — 1 Adjustments to previously provided warranties, net (2 ) (1 ) Currency translation (2 ) 2 Ending Balance $ 88 $ 83 |
Inventories [Table Text Block] | Inventories The components of inventories are as follows: June 30, December 31, (In millions) 2018 2017 Raw Materials $ 776 $ 708 Work in Process 415 505 Finished Goods 1,675 1,758 Inventories $ 2,866 $ 2,971 |
Property, Plant and Equipment [Table Text Block] | Property, Plant and Equipment Property, plant and equipment consists of the following: June 30, December 31, (In millions) 2018 2017 Land $ 398 $ 401 Buildings and Improvements 1,668 1,662 Machinery, Equipment and Leasehold Improvements 4,408 4,276 Property, Plant and Equipment, at Cost 6,474 6,339 Less: Accumulated Depreciation and Amortization 2,522 2,292 Property, Plant and Equipment, Net $ 3,952 $ 4,047 |
Finite-Lived Acquisition-related Intangible Assets [Table Text Block] | Acquisition-related Intangible Assets Acquisition-related intangible assets are as follows: Balance at June 30, 2018 Balance at December 31, 2017 (In millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Definite Lived: Customer relationships $ 17,129 $ (6,336 ) $ 10,793 $ 17,356 $ (5,902 ) $ 11,454 Product technology 6,012 (3,024 ) 2,988 6,046 (2,811 ) 3,235 Tradenames 1,516 (884 ) 632 1,538 (817 ) 721 Other 33 (33 ) — 34 (34 ) — 24,690 (10,277 ) 14,413 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 $ 25,957 $ (10,277 ) $ 15,680 $ 26,248 $ (9,564 ) $ 16,684 |
Indefinite-Lived Acquisition-related Intangible Assets [Table Text Block] | Acquisition-related Intangible Assets Acquisition-related intangible assets are as follows: Balance at June 30, 2018 Balance at December 31, 2017 (In millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Definite Lived: Customer relationships $ 17,129 $ (6,336 ) $ 10,793 $ 17,356 $ (5,902 ) $ 11,454 Product technology 6,012 (3,024 ) 2,988 6,046 (2,811 ) 3,235 Tradenames 1,516 (884 ) 632 1,538 (817 ) 721 Other 33 (33 ) — 34 (34 ) — 24,690 (10,277 ) 14,413 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 $ 25,957 $ (10,277 ) $ 15,680 $ 26,248 $ (9,564 ) $ 16,684 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Adoption of new guidance that became effective on January 1, 2018, impacted the company's Consolidated Balance Sheet as follows: (In millions) December 31, 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 Accounts Receivable, Less Allowances $ 3,879 $ (8 ) $ — $ — $ — $ — $ 3,871 Inventories 2,971 (252 ) — — — — 2,719 Other Current Assets 804 296 — — — — 1,100 Other Assets 1,227 — — (77 ) — — 1,150 Contract Liabilities — 805 — — — — 805 Deferred Revenue 719 (719 ) — — — — — Other Accrued Expenses 1,848 (153 ) — — — — 1,695 Deferred Income Taxes 2,766 — — (57 ) — 2 2,711 Other Long-term Liabilities 2,569 54 — — — — 2,623 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 ) Three Months Ended Six Months Ended July 1, July 1, (In millions) 2017 2017 Increase in Total Costs and Operating Expenses (principally Selling, General and Administrative Expenses) $ 3 $ 5 Decrease in Operating Income 3 5 Increase in Other Income (Expense) 3 5 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregated Revenue Revenue by type is as follows: Three Months Ended Six Months Ended June 30, June 30, (In millions) 2018 2018 Revenues Consumables 3,178 $ 6,289 Instruments 1,530 2,947 Services 1,370 2,695 Consolidated revenues $ 6,078 $ 11,931 Revenue by geographic region is as follows: Three Months Ended Six Months Ended June 30, June 30, (In millions) 2018 2018 Revenues North America $ 3,042 $ 5,945 Europe 1,549 3,067 Asia-Pacific 1,294 2,558 Other regions 193 361 Consolidated revenues $ 6,078 $ 11,931 |
Business Segment and Geograph27
Business Segment and Geographical Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Business Segment Information Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, (In millions) 2018 2017 2018 2017 Revenues Life Sciences Solutions $ 1,569 $ 1,405 $ 3,068 $ 2,768 Analytical Instruments 1,311 1,166 2,568 2,218 Specialty Diagnostics 932 862 1,879 1,728 Laboratory Products and Services 2,550 1,792 4,963 3,491 Eliminations (284 ) (235 ) (547 ) (450 ) Consolidated revenues 6,078 4,990 11,931 9,755 Segment Income (a) Life Sciences Solutions 522 448 1,039 881 Analytical Instruments 291 232 537 424 Specialty Diagnostics 253 234 496 467 Laboratory Products and Services 337 245 617 461 Subtotal reportable segments (a) 1,403 1,159 2,689 2,233 Cost of revenues charges (5 ) (1 ) (8 ) (32 ) Selling, general and administrative charges, net (3 ) (7 ) (11 ) (38 ) Restructuring and other costs, net (17 ) (22 ) (62 ) (46 ) Amortization of acquisition-related intangible assets (441 ) (380 ) (885 ) (748 ) Consolidated operating income 937 749 1,723 1,369 Other expense, net (b) (131 ) (123 ) (283 ) (240 ) Income from continuing operations before income taxes $ 806 $ 626 $ 1,440 $ 1,129 Depreciation Life Sciences Solutions $ 29 $ 32 $ 60 $ 65 Analytical Instruments 17 17 35 34 Specialty Diagnostics 18 18 37 35 Laboratory Products and Services 66 30 129 60 Consolidated depreciation $ 130 $ 97 $ 261 $ 194 (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. |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Business Segment Information Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, (In millions) 2018 2017 2018 2017 Revenues Life Sciences Solutions $ 1,569 $ 1,405 $ 3,068 $ 2,768 Analytical Instruments 1,311 1,166 2,568 2,218 Specialty Diagnostics 932 862 1,879 1,728 Laboratory Products and Services 2,550 1,792 4,963 3,491 Eliminations (284 ) (235 ) (547 ) (450 ) Consolidated revenues 6,078 4,990 11,931 9,755 Segment Income (a) Life Sciences Solutions 522 448 1,039 881 Analytical Instruments 291 232 537 424 Specialty Diagnostics 253 234 496 467 Laboratory Products and Services 337 245 617 461 Subtotal reportable segments (a) 1,403 1,159 2,689 2,233 Cost of revenues charges (5 ) (1 ) (8 ) (32 ) Selling, general and administrative charges, net (3 ) (7 ) (11 ) (38 ) Restructuring and other costs, net (17 ) (22 ) (62 ) (46 ) Amortization of acquisition-related intangible assets (441 ) (380 ) (885 ) (748 ) Consolidated operating income 937 749 1,723 1,369 Other expense, net (b) (131 ) (123 ) (283 ) (240 ) Income from continuing operations before income taxes $ 806 $ 626 $ 1,440 $ 1,129 Depreciation Life Sciences Solutions $ 29 $ 32 $ 60 $ 65 Analytical Instruments 17 17 35 34 Specialty Diagnostics 18 18 37 35 Laboratory Products and Services 66 30 129 60 Consolidated depreciation $ 130 $ 97 $ 261 $ 194 (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. |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Geographical Information Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, (In millions) 2018 2017 2018 2017 Revenues (c) United States $ 2,914 $ 2,484 $ 5,670 $ 4,861 China 648 512 1,189 953 Other 2,516 1,994 5,072 3,941 Consolidated revenues $ 6,078 $ 4,990 $ 11,931 $ 9,755 (c) Revenues are attributed to countries based on customer location. |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | The components of other expense, net, in the accompanying statement of income are as follows: Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, (In millions) 2018 2017 2018 2017 Interest Income $ 31 $ 18 $ 51 $ 36 Interest Expense (170 ) (134 ) (333 ) (269 ) Other Items, Net 8 (7 ) (1 ) (7 ) Other Expense, Net $ (131 ) $ (123 ) $ (283 ) $ (240 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The provision for income taxes in the accompanying statement of income differs from the provision calculated by applying the statutory federal income tax rate to income before provision for income taxes due to the following: Six Months Ended June 30, July 1, (In millions) 2018 2017 Statutory Federal Income Tax Rate 21 % 35 % Provision for Income Taxes at Statutory Rate $ 302 $ 395 Increases (Decreases) Resulting From: Foreign rate differential (116 ) (190 ) Income tax credits (119 ) (114 ) Global intangible low-taxed income 81 — Foreign-derived intangible income (22 ) — Singapore tax holiday (19 ) (10 ) Impact of change in tax laws and apportionment on deferred taxes 9 (63 ) Transition tax and other initial impacts of U.S. tax reform 70 — Reversal of tax reserves, net (49 ) — Excess tax benefits from stock options and restricted stock units (36 ) (35 ) Other, net 8 (18 ) Provision for (benefit from) income taxes $ 109 $ (35 ) |
Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: (In millions) 2018 Balance at beginning of year $ 1,409 Reductions due to acquisitions (9 ) Additions for tax positions of current year 3 Additions for tax positions of prior years 5 Reductions for tax positions of prior years (69 ) Settlements (52 ) Balance at end of period $ 1,287 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, (In millions except per share amounts) 2018 2017 2018 2017 Income from Continuing Operations $ 752 $ 613 $ 1,331 $ 1,164 Loss from Discontinued Operations — (1 ) — (1 ) Net Income $ 752 $ 612 $ 1,331 $ 1,163 Basic Weighted Average Shares 403 390 402 390 Plus Effect of: Stock options and restricted units 3 3 4 4 Diluted Weighted Average Shares 406 393 406 394 Basic Earnings per Share: Continuing operations $ 1.87 $ 1.57 $ 3.31 $ 2.98 Discontinued operations — — — — Basic Earnings per Share $ 1.87 $ 1.57 $ 3.31 $ 2.98 Diluted Earnings per Share: Continuing operations $ 1.85 $ 1.56 $ 3.28 $ 2.96 Discontinued operations — — — — Diluted Earnings per Share $ 1.85 $ 1.56 $ 3.28 $ 2.95 Antidilutive Stock Options Excluded from Diluted Weighted Average Shares 2 2 2 2 |
Debt and Other Financing Arra31
Debt and Other Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Effective Interest Rate at June 30, June 30, December 31, (Dollars in millions) 2018 2018 2017 Commercial Paper — % $ 1,005 $ 960 Floating Rate 2-Year Senior Notes, Due 8/9/2018 (euro-denominated) 0.37 % 701 721 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 % 584 600 6.00% 10-Year Senior Notes, Due 3/1/2020 2.97 % 750 750 4.70% 10-Year Senior Notes, Due 5/1/2020 4.23 % 300 300 1.50% 5-Year Senior Notes, Due 12/1/2020 (euro-denominated) 1.62 % 497 510 5.00% 10-Year Senior Notes, Due 1/15/2021 3.25 % 400 400 4.50% 10-Year Senior Notes, Due 3/1/2021 6.74 % 1,000 1,000 3.60% 10-Year Senior Notes, Due 8/15/2021 6.55 % 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 % 584 600 3.15% 10-Year Senior Notes, Due 1/15/2023 3.31 % 800 800 3.00% 7-Year Senior Notes, Due 4/15/2023 6.76 % 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 % 1,168 1,201 2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) 2.10 % 748 768 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 % 818 840 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 % 584 600 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 % 701 721 1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) 2.08 % 818 840 2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) 2.94 % 818 840 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 23 24 Total Borrowings at Par Value 19,649 21,175 Fair Value Hedge Accounting Adjustments (132 ) (70 ) Unamortized Discount, Net (11 ) (2 ) Unamortized Debt Issuance Costs (86 ) (95 ) Total Borrowings at Carrying Value 19,420 21,008 Less: Short-term Obligations and Current Maturities 1,711 2,135 Long-term Obligations $ 17,709 $ 18,873 |
Schedule of Derivative Instruments [Table Text Block] | The following table summarizes the outstanding interest rate swap arrangements on the company's senior notes at June 30, 2018 : Aggregate Notional Amount Pay Rate as of (Dollars in millions) Pay Rate June 30, Receive Rate 4.50% Senior Notes due 2021 (a) 1,000 1-month LIBOR + 3.4420% 5.4245 % 4.50 % 3.60% Senior Notes due 2021 1,100 1-month LIBOR + 2.5150% 4.5883 % 3.60 % 3.00% Senior Notes due 2023 (a) 1,000 1-month LIBOR + 1.7640% 3.8373 % 3.00 % |
Comprehensive Income and Shar32
Comprehensive Income and Shareholders Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in each component of accumulated other comprehensive items, net of tax are as follows: (In millions) Currency Unrealized Unrealized Pension and 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 (415 ) — — 3 (412 ) Amounts reclassified from accumulated other comprehensive items — — 4 8 12 Net other comprehensive items (415 ) — 4 11 (400 ) Balance at June 30, 2018 $ (2,224 ) $ — $ (57 ) $ (210 ) $ (2,491 ) |
Fair Value Measurements and F33
Fair Value Measurements and Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following tables present information about the company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 : June 30, Quoted Significant Significant (In millions) 2018 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 52 $ 52 $ — $ — Bank time deposits 2 2 — — Investments in mutual funds and other similar instruments 13 13 — — Warrants 4 — 4 — Insurance contracts 116 — 116 — Derivative contracts 9 — 9 — Total Assets $ 196 $ 67 $ 129 $ — Liabilities Derivative contracts $ 176 $ — $ 176 $ — Contingent consideration 40 — — 40 Total Liabilities $ 216 $ — $ 176 $ 40 December 31, Quoted Significant Significant (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 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table provides a rollforward of the fair value, as determined by level 3 inputs, of the contingent consideration. Six Months Ended June 30, July 1, (In millions) 2018 2017 Contingent Consideration Beginning Balance $ 35 $ 6 Acquisitions 11 9 Payments (5 ) — Change in fair value included in earnings (1 ) 26 Ending Balance $ 40 $ 41 |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table provides the aggregate notional value of outstanding derivative contracts. June 30, December 31, (In millions) 2018 2017 Notional Amount Interest rate swaps (described in Note 8) $ 3,100 $ 3,100 Cross-currency interest rate swaps - designated as net investment hedges 1,200 — Currency exchange contracts 1,974 2,921 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Fair Value – Assets Fair Value – Liabilities June 30, December 31, June 30, December 31, (In millions) 2018 2017 2018 2017 Derivatives Designated as Hedging Instruments Interest rate swaps (a) $ — $ — $ 172 $ 124 Cross-currency interest rate swaps (b) 6 — — — Derivatives Not Designated as Hedging Instruments Currency exchange contracts (c) 3 10 4 15 Total Derivatives $ 9 $ 10 $ 176 $ 139 (a) The fair value of the interest rate swaps is included in the consolidated balance sheet under the caption other long-term liabilities. (b) The fair value of the cross-currency interest rate swaps is included in the consolidated balance sheet under the caption other assets. (c) The fair value of the currency exchange contracts is included in the consolidated balance sheet under the captions other current assets or other accrued expenses. The following amounts related to cumulative basis adjustments for fair value hedges were included in the consolidated balance sheet under the caption long-term obligations: Carrying Amount of the Hedged Liability Cumulative Amount of Fair Value Hedging Adjustment - Increase (Decrease) Included in Carrying Amount of Liability (d) June 30, December 31, June 30, December 31, (In millions) 2018 2017 2018 2017 Long-term Obligations $ 3,250 $ 3,309 $ (132 ) $ (70 ) (d) Includes increases in the carrying amount of $37 million and $43 million at June 30, 2018 and December 31, 2017 , respectively, on discontinued hedging relationships |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | Gain (Loss) Recognized Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, (In millions) 2018 2017 2018 2017 Fair Value Hedging Relationships Interest rate swaps Hedged long-term obligations - included in other expense, net $ (11 ) $ 16 $ (49 ) $ 10 Derivatives designated as hedging instruments - included in other expense, net 10 (14 ) 52 (5 ) Derivatives Designated as Cash Flow Hedges Interest rate swaps Amount reclassified from accumulated other comprehensive items to other expense, net (3 ) (3 ) (6 ) (6 ) Derivatives Designated as Net Investment Hedges Foreign currency-denominated debt Included in currency translation adjustment within other comprehensive items 400 (283 ) 200 (329 ) Cross-currency interest rate swaps Included in currency translation adjustment within other comprehensive items 3 — 3 — Included in other expense, net 3 — 3 — Derivatives Not Designated as Hedging Instruments Currency exchange contracts Included in cost of revenues 2 (1 ) — (2 ) Included in other expense, net 35 52 27 71 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying value and fair value of the company’s notes receivable and debt obligations are as follows: June 30, 2018 December 31, 2017 Carrying Fair Carrying Fair (In millions) Value Value Value Value Notes Receivable $ 97 $ 101 $ 89 $ 93 Debt Obligations: Senior notes $ 18,392 $ 18,603 $ 20,024 $ 20,639 Commercial paper 1,005 1,005 960 960 Other 23 23 24 24 $ 19,420 $ 19,631 $ 21,008 $ 21,623 The fair value of debt obligations was determined based on quoted market prices and on borrowing rates available to the company at the respective period ends which represent level 2 measurements. |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | The carrying value and fair value of the company’s notes receivable and debt obligations are as follows: June 30, 2018 December 31, 2017 Carrying Fair Carrying Fair (In millions) Value Value Value Value Notes Receivable $ 97 $ 101 $ 89 $ 93 Debt Obligations: Senior notes $ 18,392 $ 18,603 $ 20,024 $ 20,639 Commercial paper 1,005 1,005 960 960 Other 23 23 24 24 $ 19,420 $ 19,631 $ 21,008 $ 21,623 The fair value of debt obligations was determined based on quoted market prices and on borrowing rates available to the company at the respective period ends which represent level 2 measurements. |
Supplemental Cash Flow Inform34
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Six Months Ended June 30, July 1, (In millions) 2018 2017 Non-cash Investing and Financing Activities Declared but unpaid dividends $ 70 $ 60 Issuance of stock upon vesting of restricted stock units 66 38 |
Restrictions on Cash and Cash Equivalents [Table Text Block] | Cash, cash equivalents and restricted cash is included in the consolidated balance sheet as follows: June 30, December 31, (In millions) 2018 2017 Cash and Cash Equivalents $ 937 $ 1,335 Restricted Cash Included in Other Current Assets 17 24 Restricted Cash Included in Other Assets 2 2 Cash, Cash Equivalents and Restricted Cash $ 956 $ 1,361 |
Restructuring and Other Costs35
Restructuring and Other Costs, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs [Table Text Block] | During the first six months of 2018 , the company recorded net restructuring and other costs by segment as follows: (In millions) Cost of Selling, Restructuring Total Life Sciences Solutions $ — $ — $ 23 $ 23 Analytical Instruments 2 (1 ) 21 22 Specialty Diagnostics — — 4 4 Laboratory Products and Services 6 11 13 30 Corporate — 1 1 2 $ 8 $ 11 $ 62 $ 81 During the second quarter of 2018 , the company recorded net restructuring and other costs by segment as follows: (In millions) Cost of Selling, Restructuring Total Life Sciences Solutions $ — $ — $ 10 $ 10 Analytical Instruments 2 (1 ) 4 5 Specialty Diagnostics — — — — Laboratory Products and Services 3 4 3 10 Corporate — — — — $ 5 $ 3 $ 17 $ 25 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the cash components of the company’s restructuring plans. The non-cash components and other amounts reported as restructuring and other costs, net, in the accompanying statement of income have been summarized in the notes to the tables. Accrued restructuring costs are included in other accrued expenses in the accompanying balance sheet. (In millions) Severance Abandonment of Excess Facilities Other (a) Total Balance at December 31, 2017 $ 30 $ 40 $ 6 $ 76 Costs incurred in 2018 (c) 29 20 8 57 Reserves reversed (b) (5 ) (1 ) — (6 ) Payments (23 ) (14 ) (9 ) (46 ) Balance at June 30, 2018 $ 31 $ 45 $ 5 $ 81 (a) Other includes relocation and moving expenses associated with facility consolidations, as well as employee retention costs which are accrued ratably over the period through which employees must work to qualify for a payment. (b) Represents reductions in cost of plans. (c) Excludes $11 million of charges, net, primarily associated with litigation-related matters, hurricane response costs, and non-cash compensation due at an acquired business. |
Contract Assets and Liabilities
Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Contract with Customer, Asset and Liability [Abstract] | |||
Current Contract Assets, Net | $ 471 | $ 396 | |
Current Contract Liabilities | 816 | 805 | $ 0 |
Noncurrent Contract Liability | 337 | $ 302 | |
Revenue recognized that was included in the current contract liability balance at the beginning of the period | $ 483 |
Warranty Obligations (Details)
Warranty Obligations (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Warranty Obligations [Roll Forward] | ||
Beginning Balance | $ 87 | $ 78 |
Provision charged to income | 58 | 54 |
Usage | (53) | (51) |
Acquisitions | 1 | |
Adjustments to previously provided warranties, net | (2) | (1) |
Currency translation | (2) | 2 |
Ending Balance | $ 88 | $ 83 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | |||
Raw Materials | $ 776 | $ 708 | |
Work in Process | 415 | 505 | |
Finished Goods | 1,675 | 1,758 | |
Inventories | $ 2,866 | $ 2,719 | $ 2,971 |
Property, Plant and Equipment (
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, at Cost | $ 6,474 | $ 6,339 |
Less: Accumulated Depreciation and Amortization | 2,522 | 2,292 |
Property, Plant and Equipment, Net | 3,952 | 4,047 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, at Cost | 398 | 401 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, at Cost | 1,668 | 1,662 |
Machinery, Equipment and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, at Cost | $ 4,408 | $ 4,276 |
Acquisition-related Intangible
Acquisition-related Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Intangible Assets [Line Items] | ||
Definite-Lived Intangible Assets, Gross | $ 24,690 | $ 24,974 |
Accumulated Amortization | (10,277) | (9,564) |
Definite-Lived Intangible Assets, Net | 14,413 | 15,410 |
Indefinite-Lived Intangible Assets | 1,267 | 1,274 |
Acquisition-related Intangible Assets, Gross | 25,957 | 26,248 |
Acquisition-related Intangible Assets, net of Accumulated Amortization | 15,680 | 16,684 |
Tradenames [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 1,235 | 1,235 |
In-Process Research and Development [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 32 | 39 |
Customer Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Definite-Lived Intangible Assets, Gross | 17,129 | 17,356 |
Accumulated Amortization | (6,336) | (5,902) |
Definite-Lived Intangible Assets, Net | 10,793 | 11,454 |
Product Technology [Member] | ||
Intangible Assets [Line Items] | ||
Definite-Lived Intangible Assets, Gross | 6,012 | 6,046 |
Accumulated Amortization | (3,024) | (2,811) |
Definite-Lived Intangible Assets, Net | 2,988 | 3,235 |
Tradenames [Member] | ||
Intangible Assets [Line Items] | ||
Definite-Lived Intangible Assets, Gross | 1,516 | 1,538 |
Accumulated Amortization | (884) | (817) |
Definite-Lived Intangible Assets, Net | 632 | 721 |
Other Intangible Assets [Member] | ||
Intangible Assets [Line Items] | ||
Definite-Lived Intangible Assets, Gross | 33 | 34 |
Accumulated Amortization | (33) | (34) |
Definite-Lived Intangible Assets, Net | $ 0 | $ 0 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase in Total Costs and Operating Expenses (principally SG&A Expenses) | $ 5,141 | $ 4,241 | $ 10,208 | $ 8,386 | ||
Decrease in Operating Income | (937) | (749) | (1,723) | (1,369) | ||
Increase in Other Income (Expense) | (131) | (123) | (283) | (240) | ||
Accounts receivable, less allowances | 3,911 | 3,911 | $ 3,871 | $ 3,879 | ||
Inventories | 2,866 | 2,866 | 2,719 | 2,971 | ||
Other current assets | 1,230 | 1,230 | 1,100 | 804 | ||
Other Assets | 1,177 | 1,177 | 1,150 | 1,227 | ||
Contract liabilities | 816 | 816 | 805 | 0 | ||
Deferred Revenue | 0 | 0 | 0 | 719 | ||
Other accrued expenses | 1,339 | 1,339 | 1,695 | 1,848 | ||
Deferred Income Taxes | 2,599 | 2,599 | 2,711 | 2,766 | ||
Other Long-term Liabilities | 2,670 | 2,670 | 2,623 | 2,569 | ||
Long-term Obligations | 17,709 | 17,709 | 18,870 | 18,873 | ||
Retained earnings | 17,226 | 17,226 | 16,032 | 15,914 | ||
Accumulated other comprehensive items | (2,491) | (2,491) | (2,091) | $ (2,003) | ||
Accounting Standards Update 2017-07 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase in Total Costs and Operating Expenses (principally SG&A Expenses) | 3 | 5 | ||||
Decrease in Operating Income | 3 | 5 | ||||
Increase in Other Income (Expense) | $ 3 | $ 5 | ||||
Accounting Standards Update 2016-01 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | (1) | |||||
Accumulated other comprehensive items | 1 | |||||
Accounting Standards Update 2016-16 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other Assets | (77) | |||||
Deferred Income Taxes | (57) | |||||
Retained earnings | (20) | |||||
Accounting Standards Update 2017-12 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Long-term Obligations | (3) | |||||
Retained earnings | 3 | |||||
Accounting Standard Update 2018-02 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Deferred Income Taxes | 2 | |||||
Retained earnings | 87 | |||||
Accumulated other comprehensive items | (89) | |||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Inventories | (295) | (295) | ||||
Other current assets | $ 335 | $ 335 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accounts receivable, less allowances | (8) | |||||
Inventories | (252) | |||||
Other current assets | 296 | |||||
Contract liabilities | 805 | |||||
Deferred Revenue | (719) | |||||
Other accrued expenses | (153) | |||||
Other Long-term Liabilities | 54 | |||||
Retained earnings | $ 49 |
Acquisitions Purchase Price (De
Acquisitions Purchase Price (Details) - USD ($) $ in Millions | 5 Months Ended | 6 Months Ended |
Dec. 31, 2018 | Jun. 30, 2018 | |
Other [Member] | ||
Purchase Price | ||
Total Purchase Price | $ 65 | |
Scenario, Forecast [Member] | Gatan, Inc. [Member] | ||
Purchase Price | ||
Cash paid | $ 925 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 6,078 | $ 4,990 | $ 11,931 | $ 9,755 |
North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,042 | 5,945 | ||
Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,549 | 3,067 | ||
Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,294 | 2,558 | ||
Other Regions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 193 | 361 | ||
Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,708 | 4,298 | 9,236 | 8,400 |
Consumables [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,178 | 6,289 | ||
Instruments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,530 | 2,947 | ||
Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,370 | $ 692 | $ 2,695 | $ 1,355 |
Revenue Performance Obligations
Revenue Performance Obligations (Details) $ in Millions | Jun. 30, 2018USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 5,120 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 90.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Business Segment Information (D
Business Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jul. 01, 2017USD ($) | Jun. 30, 2018USD ($)Segment | Jul. 01, 2017USD ($) | ||
Segment Reporting Information [Line Items] | |||||
Number of Reportable Segments | Segment | 4 | ||||
Revenues | $ 6,078 | $ 4,990 | $ 11,931 | $ 9,755 | |
Cost of revenues charges | (5) | (8) | |||
Selling, general and administrative charges, net | (3) | (11) | |||
Restructuring and other costs, net | (17) | (22) | (62) | (46) | |
Operating Income | 937 | 749 | 1,723 | 1,369 | |
Other expense, net | (131) | (123) | (283) | (240) | |
Income from Continuing Operations Before Income Taxes | 806 | 626 | 1,440 | 1,129 | |
Depreciation | 130 | 97 | 261 | 194 | |
Life Sciences Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring and other costs, net | (10) | (23) | |||
Analytical Instruments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of revenues charges | (2) | (2) | |||
Selling, general and administrative charges, net | 1 | 1 | |||
Restructuring and other costs, net | (4) | (21) | |||
Specialty Diagnostics [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring and other costs, net | (4) | ||||
Laboratory Products and Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of revenues charges | (3) | (6) | |||
Selling, general and administrative charges, net | (4) | (11) | |||
Restructuring and other costs, net | (3) | (13) | |||
Total Reportable Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Income | [1] | 1,403 | 1,159 | 2,689 | 2,233 |
Total Reportable Segments [Member] | Life Sciences Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,569 | 1,405 | 3,068 | 2,768 | |
Operating Income | [1] | 522 | 448 | 1,039 | 881 |
Depreciation | 29 | 32 | 60 | 65 | |
Total Reportable Segments [Member] | Analytical Instruments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,311 | 1,166 | 2,568 | 2,218 | |
Operating Income | [1] | 291 | 232 | 537 | 424 |
Depreciation | 17 | 17 | 35 | 34 | |
Total Reportable Segments [Member] | Specialty Diagnostics [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 932 | 862 | 1,879 | 1,728 | |
Operating Income | [1] | 253 | 234 | 496 | 467 |
Depreciation | 18 | 18 | 37 | 35 | |
Total Reportable Segments [Member] | Laboratory Products and Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,550 | 1,792 | 4,963 | 3,491 | |
Operating Income | [1] | 337 | 245 | 617 | 461 |
Depreciation | 66 | 30 | 129 | 60 | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (284) | (235) | (547) | (450) | |
Segment Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of revenues charges | (5) | (1) | (8) | (32) | |
Selling, general and administrative charges, net | (3) | (7) | (11) | (38) | |
Restructuring and other costs, net | (17) | (22) | (62) | (46) | |
Amortization of acquisition-related intangible assets | $ (441) | $ (380) | $ (885) | $ (748) | |
[1] | 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. |
Geographical Information (Detai
Geographical Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 6,078 | $ 4,990 | $ 11,931 | $ 9,755 | |
UNITED STATES | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [1] | 2,914 | 2,484 | 5,670 | 4,861 |
CHINA | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [1] | 648 | 512 | 1,189 | 953 |
All Other Countries [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [1] | $ 2,516 | $ 1,994 | $ 5,072 | $ 3,941 |
[1] | Revenues are attributed to countries based on customer location. |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Other Income and Expenses [Abstract] | ||||
Interest Income | $ 31 | $ 18 | $ 51 | $ 36 |
Interest Expense | (170) | (134) | (333) | (269) |
Other Items, Net | 8 | (7) | (1) | (7) |
Other Expense, Net | $ (131) | $ (123) | $ (283) | $ (240) |
Income Taxes Rate Reconciliatio
Income Taxes Rate Reconciliation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Statutory Federal Income Tax Rate | 21.00% | 35.00% | ||
Provision for Income Taxes at Statutory Rate | $ 302 | $ 395 | ||
Foreign rate differential | (116) | (190) | ||
Income tax credits | (119) | (114) | ||
Effective Income Tax Rate Reconciliation, Global Intangible Low-taxed Income | 81 | |||
Foreign-derived intangible income | (22) | |||
Singapore tax holiday | (19) | (10) | ||
Impact of change in tax laws and apportionment on deferred taxes | 9 | (63) | ||
Transition tax and other initial impacts of U.S. tax reform | 70 | |||
Reversal of tax reserves, net | (49) | |||
Excess tax benefits from stock options and restricted stock units | (36) | (35) | ||
Other, net | 8 | (18) | ||
Provision for (benefit from) income taxes | $ 54 | $ 13 | 109 | $ (35) |
Tax Cuts And Jobs Act of 2017, Income Tax Expense (Benefit) | $ 21 | |||
Singapore | ||||
Income Tax Holiday [Line Items] | ||||
Income Tax Holiday, Termination Date | 12/31/2026 | |||
Effective Income Tax Rate Reconciliation, Tax Holiday, Percent | 1.30% | 0.90% | ||
Income Tax Holiday, Income Tax Benefits Per Share | $ 0.05 | $ 0.03 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |
Balance at beginning of year | $ 1,409 |
Reductions due to acquisitions | (9) |
Additions for tax positions of current year | 3 |
Additions for tax positions of prior years | 5 |
Reductions for tax positions of prior years | (69) |
Settlements | (52) |
Balance at end of year | $ 1,287 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Income from Continuing Operations | $ 752 | $ 613 | $ 1,331 | $ 1,164 |
Loss from Discontinued Operations | 0 | (1) | 0 | (1) |
Net Income | $ 752 | $ 612 | $ 1,331 | $ 1,163 |
Basic Weighted Average Shares | 403 | 390 | 402 | 390 |
Effect of Stock Options and Restricted Units | 3 | 3 | 4 | 4 |
Diluted Weighted Average Shares | 406 | 393 | 406 | 394 |
Basic Earnings per Share: | ||||
Continuing operations (in dollars per share) | $ 1.87 | $ 1.57 | $ 3.31 | $ 2.98 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Basic Earnings Per Share (in dollars per share) | 1.87 | 1.57 | 3.31 | 2.98 |
Diluted Earnings per Share: | ||||
Continuing operations (in dollars per share) | 1.85 | 1.56 | 3.28 | 2.96 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Diluted Earnings Per Share (in dollars per share) | $ 1.85 | $ 1.56 | $ 3.28 | $ 2.95 |
Employee Stock Option [Member] | ||||
Diluted Earnings per Share: | ||||
Antidilutive Stock Options Excluded From Computation Of Earnings Per Share | 2 | 2 | 2 | 2 |
Debt Outstanding Debt (Details)
Debt Outstanding Debt (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Total Borrowings at Par Value | $ 19,649 | $ 21,175 | |
Fair Value Hedge Accounting Adjustments | (132) | (70) | |
Unamortized Discount, Net | (11) | (2) | |
Unamortized Debt Issuance Costs | (86) | (95) | |
Total Borrowings at Carrying Value | 19,420 | 21,008 | |
Less: Short-term Obligations and Current Maturities | 1,711 | 2,135 | |
Long-term Obligations | $ 17,709 | $ 18,870 | 18,873 |
Commercial Paper Programs [Member] | |||
Debt Instrument [Line Items] | |||
Effective Interest Rate | 0.00% | ||
Total Borrowings at Par Value | $ 1,005 | 960 | |
Total Borrowings at Carrying Value | 1,005 | 960 | |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Total Borrowings at Carrying Value | $ 18,392 | 20,024 | |
Debt Instrument, Call Feature | Each of the notes may be redeemed at a redemption price of 100% of the principal amount plus a specified make-whole premium and accrued interest. | ||
Senior Notes [Member] | Floating Rate 2-Year Senior Notes, Due 8/9/2018 (euro-denominated) [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Term | 2 years | ||
Debt Instrument, Maturity Date | Aug. 9, 2018 | ||
Effective Interest Rate | 0.37% | ||
Total Borrowings at Par Value | $ 701 | 721 | |
Senior Notes [Member] | 2.15% 3-Year Senior Notes, Due 12/14/2018 [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 2.15% | ||
Debt Instrument, Term | 3 years | ||
Debt Instrument, Maturity Date | Dec. 14, 2018 | ||
Total Borrowings at Par Value | 450 | ||
Senior Notes [Member] | 2.40% 5-Year Senior Notes, Due 2/1/2019 [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 2.40% | ||
Debt Instrument, Term | 5 years | ||
Debt Instrument, Maturity Date | Feb. 1, 2019 | ||
Total Borrowings at Par Value | 900 | ||
Senior Notes [Member] | Floating Rate 2-Year Senior Notes, Due 7/24/2019 (euro-denominated) [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Term | 2 years | ||
Debt Instrument, Maturity Date | Jul. 24, 2019 | ||
Effective Interest Rate | 0.10% | ||
Total Borrowings at Par Value | $ 584 | 600 | |
Senior Notes [Member] | 6.00% 10-Year Senior Notes, Due 3/1/2020 [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 6.00% | ||
Debt Instrument, Term | 10 years | ||
Debt Instrument, Maturity Date | Mar. 1, 2020 | ||
Effective Interest Rate | 2.97% | ||
Total Borrowings at Par Value | $ 750 | 750 | |
Senior Notes [Member] | 4.70% 10-Year Senior Notes, Due 5/1/2020 [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 4.70% | ||
Debt Instrument, Term | 10 years | ||
Debt Instrument, Maturity Date | May 1, 2020 | ||
Effective Interest Rate | 4.23% | ||
Total Borrowings at Par Value | $ 300 | 300 | |
Senior Notes [Member] | 1.50% 5-Year Senior Notes, Due 12/1/2020 (euro-denominated) [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 1.50% | ||
Debt Instrument, Term | 5 years | ||
Debt Instrument, Maturity Date | Dec. 1, 2020 | ||
Effective Interest Rate | 1.62% | ||
Total Borrowings at Par Value | $ 497 | 510 | |
Senior Notes [Member] | 5.00% 10-Year Senior Notes, Due 1/15/2021 [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 5.00% | ||
Debt Instrument, Term | 10 years | ||
Debt Instrument, Maturity Date | Jan. 15, 2021 | ||
Effective Interest Rate | 3.25% | ||
Total Borrowings at Par Value | $ 400 | 400 | |
Senior Notes [Member] | 4.50% 10-Year Senior Notes, Due 3/1/2021 [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 4.50% | ||
Debt Instrument, Term | 10 years | ||
Debt Instrument, Maturity Date | Mar. 1, 2021 | ||
Effective Interest Rate | 6.74% | ||
Total Borrowings at Par Value | $ 1,000 | 1,000 | |
Senior Notes [Member] | 3.60% 10-Year Senior Notes, Due 8/15/2021 [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 3.60% | ||
Debt Instrument, Term | 10 years | ||
Debt Instrument, Maturity Date | Aug. 15, 2021 | ||
Effective Interest Rate | 6.55% | ||
Total Borrowings at Par Value | $ 1,100 | 1,100 | |
Senior Notes [Member] | 3.30% 7-Year Senior Notes, Due 2/15/2022 [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 3.30% | ||
Debt Instrument, Term | 7 years | ||
Debt Instrument, Maturity Date | Feb. 15, 2022 | ||
Effective Interest Rate | 3.42% | ||
Total Borrowings at Par Value | $ 800 | 800 | |
Senior Notes [Member] | 2.15% 7-Year Senior Notes, Due 7/21/2022 (euro-denominated) [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 2.15% | ||
Debt Instrument, Term | 7 years | ||
Debt Instrument, Maturity Date | Jul. 21, 2022 | ||
Effective Interest Rate | 2.28% | ||
Total Borrowings at Par Value | $ 584 | 600 | |
Senior Notes [Member] | 3.15% 10-Year Senior Notes, Due 1/15/2023 [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 3.15% | ||
Debt Instrument, Term | 10 years | ||
Debt Instrument, Maturity Date | Jan. 15, 2023 | ||
Effective Interest Rate | 3.31% | ||
Total Borrowings at Par Value | $ 800 | 800 | |
Senior Notes [Member] | 3.00% 7-Year Senior Notes, Due 4/15/2023 [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 3.00% | ||
Debt Instrument, Term | 7 years | ||
Debt Instrument, Maturity Date | Apr. 15, 2023 | ||
Effective Interest Rate | 6.76% | ||
Total Borrowings at Par Value | $ 1,000 | 1,000 | |
Senior Notes [Member] | 4.15% 10-Year Senior Notes, Due 2/1/2024 [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 4.15% | ||
Debt Instrument, Term | 10 years | ||
Debt Instrument, Maturity Date | Feb. 1, 2024 | ||
Effective Interest Rate | 4.16% | ||
Total Borrowings at Par Value | $ 1,000 | 1,000 | |
Senior Notes [Member] | 0.75% 8-Year Senior Notes, Due 9/12/2024 (euro-denominated) [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 0.75% | ||
Debt Instrument, Term | 8 years | ||
Debt Instrument, Maturity Date | Sep. 12, 2024 | ||
Effective Interest Rate | 0.94% | ||
Total Borrowings at Par Value | $ 1,168 | 1,201 | |
Senior Notes [Member] | 2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 2.00% | ||
Debt Instrument, Term | 10 years | ||
Debt Instrument, Maturity Date | Apr. 15, 2025 | ||
Effective Interest Rate | 2.10% | ||
Total Borrowings at Par Value | $ 748 | 768 | |
Senior Notes [Member] | 3.65% 10-Year Senior Notes, Due 12/15/2025 [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 3.65% | ||
Debt Instrument, Term | 10 years | ||
Debt Instrument, Maturity Date | Dec. 15, 2025 | ||
Effective Interest Rate | 3.77% | ||
Total Borrowings at Par Value | $ 350 | 350 | |
Senior Notes [Member] | 1.40% 8.5-Year Senior Notes, Due 1/23/2026 (euro-denominated) [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 1.40% | ||
Debt Instrument, Term | 8 years 6 months | ||
Debt Instrument, Maturity Date | Jan. 23, 2026 | ||
Effective Interest Rate | 1.53% | ||
Total Borrowings at Par Value | $ 818 | 840 | |
Senior Notes [Member] | 2.95% 10-Year Senior Notes, Due 9/19/2026 [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 2.95% | ||
Debt Instrument, Term | 10 years | ||
Debt Instrument, Maturity Date | Sep. 19, 2026 | ||
Effective Interest Rate | 3.19% | ||
Total Borrowings at Par Value | $ 1,200 | 1,200 | |
Senior Notes [Member] | 1.45% 10-Year Senior Notes, Due 3/16/2027 (euro-denominated) [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 1.45% | ||
Debt Instrument, Term | 10 years | ||
Debt Instrument, Maturity Date | Mar. 16, 2027 | ||
Effective Interest Rate | 1.66% | ||
Total Borrowings at Par Value | $ 584 | 600 | |
Senior Notes [Member] | 3.20% 10-Year Senior Notes, Due 8/15/2027 [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 3.20% | ||
Debt Instrument, Term | 10 years | ||
Debt Instrument, Maturity Date | Aug. 15, 2027 | ||
Effective Interest Rate | 3.39% | ||
Total Borrowings at Par Value | $ 750 | 750 | |
Senior Notes [Member] | 1.375% 12-Year Senior Notes, Due 9/12/2028 (euro-denominated) [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 1.375% | ||
Debt Instrument, Term | 12 years | ||
Debt Instrument, Maturity Date | Sep. 12, 2028 | ||
Effective Interest Rate | 1.46% | ||
Total Borrowings at Par Value | $ 701 | 721 | |
Senior Notes [Member] | 1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 1.95% | ||
Debt Instrument, Term | 12 years | ||
Debt Instrument, Maturity Date | Jul. 24, 2029 | ||
Effective Interest Rate | 2.08% | ||
Total Borrowings at Par Value | $ 818 | 840 | |
Senior Notes [Member] | 2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 2.875% | ||
Debt Instrument, Term | 20 years | ||
Debt Instrument, Maturity Date | Jul. 24, 2037 | ||
Effective Interest Rate | 2.94% | ||
Total Borrowings at Par Value | $ 818 | 840 | |
Senior Notes [Member] | 5.30% 30-Year Senior Notes, Due 2/1/2044 [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 5.30% | ||
Debt Instrument, Term | 30 years | ||
Debt Instrument, Maturity Date | Feb. 1, 2044 | ||
Effective Interest Rate | 5.37% | ||
Total Borrowings at Par Value | $ 400 | 400 | |
Senior Notes [Member] | 4.10% 30-Year Senior Notes, Due 8/15/2047 [Member] | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 4.10% | ||
Debt Instrument, Term | 30 years | ||
Debt Instrument, Maturity Date | Aug. 15, 2047 | ||
Effective Interest Rate | 4.23% | ||
Total Borrowings at Par Value | $ 750 | 750 | |
Other Debt [Member] | |||
Debt Instrument [Line Items] | |||
Total Borrowings at Par Value | 23 | 24 | |
Total Borrowings at Carrying Value | $ 23 | $ 24 |
Debt Short-term Financing (Deta
Debt Short-term Financing (Details) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Revolving Credit Facility [Member] | |
Short-term Financing [Line Items] | |
Debt, Covenant, Maximum Consolidated Total Leverage Ratio of Debt to EBITDA | 3.5 |
Debt, Covenant, Minimum Consolidated Interest Coverage Ratio | 3 |
Maximum Borrowing Capacity | $ 2,500,000,000 |
Line of Credit Facility, Expiration Date | Jul. 1, 2021 |
Letters of Credit Outstanding, Amount | $ 83,000,000 |
Line of Credit Facility, Amount Outstanding | $ 0 |
Commercial Paper Programs [Member] | |
Short-term Financing [Line Items] | |
Short-term Debt, Period to Maturity | 58 days |
Commercial Paper Programs [Member] | U.S. Commercial Paper Program [Member] | |
Short-term Financing [Line Items] | |
Maximum Period to Maturity Allowed Under Program | 397 days |
Commercial Paper Programs [Member] | Euro Commercial Paper Program [Member] | |
Short-term Financing [Line Items] | |
Maximum Period to Maturity Allowed Under Program | 183 days |
Debt, Interest Rate Swap Arrang
Debt, Interest Rate Swap Arrangements (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Interest Rate Swaps [Member] | |||
Debt Instrument [Line Items] | |||
Notional Amount Of Derivatives | $ 3,100 | $ 3,100 | |
Interest Rate Swap, Pay Rate at Period End | 4.63% | ||
Cross Currency Interest Rate Contract [Member] | |||
Debt Instrument [Line Items] | |||
Notional Amount Of Derivatives | $ 1,200 | ||
Interest Rate Swap, Pay Rate at Period End | 1.96% | ||
Senior Notes [Member] | 4.50% Senior Notes Due 2021 [Member] | Interest Rate Swaps [Member] | |||
Debt Instrument [Line Items] | |||
Notional Amount Of Derivatives | [1] | $ 1,000 | |
Interest Rate Swap, Pay Rate Spread above One-month LIBOR | 3.442% | ||
Interest Rate Swap, Pay Rate at Period End | [1] | 5.4245% | |
Interest Rate Swap, Fixed Receive Rate | 4.50% | ||
Senior Notes [Member] | 3.60% Senior Notes Due 2021 [Member] | Interest Rate Swaps [Member] | |||
Debt Instrument [Line Items] | |||
Notional Amount Of Derivatives | $ 1,100 | ||
Interest Rate Swap, Pay Rate Spread above One-month LIBOR | 2.515% | ||
Interest Rate Swap, Pay Rate at Period End | 4.5883% | ||
Interest Rate Swap, Fixed Receive Rate | 3.60% | ||
Senior Notes [Member] | 3.00% Senior Notes Due 2023 [Member] | Interest Rate Swaps [Member] | |||
Debt Instrument [Line Items] | |||
Notional Amount Of Derivatives | [1] | $ 1,000 | |
Interest Rate Swap, Pay Rate Spread above One-month LIBOR | 1.764% | ||
Interest Rate Swap, Pay Rate at Period End | [1] | 3.8373% | |
Interest Rate Swap, Fixed Receive Rate | 3.00% | ||
[1] | The payments on $1.2 billion notional value of these interest rate swaps are offset in part by cross-currency interest rate swaps which effectively reduced the pay rate as of June 30, 2018 from a weighted average of 4.63% to a weighted average of 1.96%. |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Feb. 03, 2014 | Jun. 30, 2018 |
Accrual for Environmental Loss Contingencies Disclosure [Abstract] | ||
Accrual for Environmental Loss Contingencies, Net | $ 52 | |
Promega Corp and Max-Plank-Gesellschaft [Member] | ||
Loss Contingency [Abstract] | ||
Loss Contingency Accrued | $ 52 | |
Promega Corp and Max-Plank-Gesellschaft [Member] | Life Technologies Corporation [Member] | ||
Loss Contingency [Abstract] | ||
Damages Awarded | $ 52 | |
Loss Contingency Accrued | $ 52 |
Comprehensive Income and Shar55
Comprehensive Income and Shareholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | $ 25,413 | $ 21,540 | |||
Cumulative effect of accounting changes | $ 30 | ||||
Other comprehensive income (loss) before reclassifications | (412) | ||||
Amounts reclassified from accumulated other comprehensive items | 12 | ||||
Total other comprehensive items | $ (449) | $ 217 | (400) | 380 | |
Balance | 26,445 | 22,391 | 26,445 | 22,391 | |
Currency Translation Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | (1,755) | ||||
Cumulative effect of accounting changes | (54) | ||||
Other comprehensive income (loss) before reclassifications | (415) | ||||
Total other comprehensive items | (415) | ||||
Balance | (2,224) | (2,224) | |||
Unrealized Gains on Available-for-Sale Investments [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | (1) | ||||
Cumulative effect of accounting changes | 1 | ||||
Total other comprehensive items | 0 | ||||
Balance | 0 | 0 | |||
Unrealized Losses on Hedging Instruments [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | (50) | ||||
Cumulative effect of accounting changes | (11) | ||||
Amounts reclassified from accumulated other comprehensive items | 4 | ||||
Total other comprehensive items | 4 | ||||
Balance | (57) | (57) | |||
Pension and Other Postretirement Benefit Liability Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | (197) | ||||
Cumulative effect of accounting changes | (24) | ||||
Other comprehensive income (loss) before reclassifications | 3 | ||||
Amounts reclassified from accumulated other comprehensive items | 8 | ||||
Total other comprehensive items | 11 | ||||
Balance | (210) | (210) | |||
Accumulated Other Comprehensive Items [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | (2,003) | (2,636) | |||
Cumulative effect of accounting changes | $ (88) | ||||
Total other comprehensive items | (400) | 380 | |||
Balance | $ (2,491) | $ (2,256) | $ (2,491) | $ (2,256) |
Fair Value Measurements, Assets
Fair Value Measurements, Assets and Liabilities (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Assets [Abstract] | ||
Cash equivalents | $ 52 | $ 22 |
Bank time deposits | 2 | 2 |
Investments in mutual funds and other similar instruments | 13 | 13 |
Warrants | 4 | 2 |
Insurance contracts | 116 | 116 |
Derivative contracts | 9 | 10 |
Total Assets | 196 | 165 |
Liabilities [Abstract] | ||
Derivative contracts | 176 | 139 |
Contingent consideration | 40 | 35 |
Total Liabilities | 216 | 174 |
Quoted Prices in Active Markets (Level I) [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 52 | 22 |
Bank time deposits | 2 | 2 |
Investments in mutual funds and other similar instruments | 13 | 13 |
Total Assets | 67 | 37 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Warrants | 4 | 2 |
Insurance contracts | 116 | 116 |
Derivative contracts | 9 | 10 |
Total Assets | 129 | 128 |
Liabilities [Abstract] | ||
Derivative contracts | 176 | 139 |
Total Liabilities | 176 | 139 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Liabilities [Abstract] | ||
Contingent consideration | 40 | 35 |
Total Liabilities | $ 40 | $ 35 |
Fair Value Measurements and F57
Fair Value Measurements and Fair Value of Financial Instruments Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - Contingent Consideration [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 35 | $ 6 |
Acquisitions | 11 | 9 |
Payments | (5) | |
Change in fair value included in earnings | (1) | 26 |
Ending Balance | $ 40 | $ 41 |
Fair Value Measurements, Deriva
Fair Value Measurements, Derivative Assets & Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Cumulative Amount of Fair Value Hedging Adjustment - Increase (Decrease) Included in Carrying Amount of Liability | $ (132) | $ (70) |
Long-term Obligations [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedged Liability, Fair Value Hedge | 3,250 | 3,309 |
Cumulative Amount of Fair Value Hedging Adjustment - Increase (Decrease) Included in Carrying Amount of Liability | (132) | (70) |
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 37 | 43 |
Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount Of Derivatives | 3,100 | 3,100 |
Interest Rate Swaps [Member] | Derivatives Designated as Hedging Instrument [Member] | Other Long-term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 172 | 124 |
Cross Currency Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount Of Derivatives | 1,200 | |
Cross Currency Interest Rate Contract [Member] | Derivatives Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 6 | |
Currency Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount Of Derivatives | 1,974 | 2,921 |
Currency Exchange Contracts [Member] | Derivatives Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 3 | 10 |
Currency Exchange Contracts [Member] | Derivatives Not Designated as Hedging Instrument [Member] | Other Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 4 | 15 |
Fair Value, Measurements, Recurring [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 9 | 10 |
Derivative Liabilities | $ 176 | $ 139 |
Fair Value Measurements, Deri59
Fair Value Measurements, Derivative Instruments, Gains & Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Currency Exchange Contracts [Member] | Cost of Sales [Member] | Derivatives Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative, Net | $ 2 | $ (1) | $ (2) | |
Currency Exchange Contracts [Member] | Other Expense [Member] | Derivatives Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative, Net | 35 | 52 | $ 27 | 71 |
Fair Value Hedging [Member] | Interest Rate Swaps [Member] | Other Expense [Member] | Derivatives Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Hedged Debt in Fair Value Hedge | (11) | 16 | (49) | 10 |
Gain (Loss) on Derivative, Net | 10 | (14) | 52 | (5) |
Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | Other Expense [Member] | Derivatives Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (3) | (3) | (6) | (6) |
Net Investment Hedging [Member] | Foreign currency-denominated debt [Member] | Derivatives Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) in Currency Translation Adjustment on Net Investment Hedge | 400 | $ (283) | 200 | $ (329) |
Net Investment Hedging [Member] | Cross Currency Interest Rate Contract [Member] | Derivatives Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) in Currency Translation Adjustment on Net Investment Hedge | 3 | 3 | ||
Net Investment Hedging [Member] | Cross Currency Interest Rate Contract [Member] | Other Expense [Member] | Derivatives Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative, Net | $ 3 | $ 3 |
Fair Value of Other Instruments
Fair Value of Other Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes Receivable - Carrying Value | $ 97 | $ 89 |
Notes Receivable - Fair Value | 101 | 93 |
Debt Obligations - Carrying Value | 19,420 | 21,008 |
Debt Instrument, Fair Value Disclosure | 19,631 | 21,623 |
Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Obligations - Carrying Value | 18,392 | 20,024 |
Debt Instrument, Fair Value Disclosure | 18,603 | 20,639 |
Commercial Paper Programs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Obligations - Carrying Value | 1,005 | 960 |
Debt Instrument, Fair Value Disclosure | 1,005 | 960 |
Other Debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Obligations - Carrying Value | 23 | 24 |
Debt Instrument, Fair Value Disclosure | $ 23 | $ 24 |
Supplemental Cash Flow Inform61
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Non-cash Investing and Financing Activities [Abstract] | ||||
Declared but unpaid dividends | $ 70 | $ 60 | ||
Issuance of stock upon vesting of restricted stock units | 66 | 38 | ||
Cash and Cash Equivalents | 937 | $ 1,335 | ||
Restricted Cash Included in Other Current Assets | 17 | 24 | ||
Restricted Cash Included in Other Assets | 2 | 2 | ||
Cash, Cash Equivalents and Restricted Cash | $ 956 | $ 629 | $ 1,361 | $ 811 |
Restricted Cash and Cash Equivalents, Current, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsCurrent | |||
Restricted Cash and Cash Equivalents, Noncurrent, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent |
Restructuring and Other Costs62
Restructuring and Other Costs, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Aug. 03, 2018 | ||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Percentage of Total Workforce Eliminated | 1.00% | |||||
Cost of Revenues | $ 5 | $ 8 | ||||
Selling, General and Administrative Expenses | 3 | 11 | ||||
Restructuring and other costs, net | 17 | $ 22 | 62 | $ 46 | ||
Total Restructuring and Other Costs (Income), Net | 25 | 81 | ||||
Restructuring and Related Costs, Cash Costs | [1] | 57 | ||||
Restructuring and Related Costs, Other Costs (Income), Net | 11 | |||||
Severance [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Costs, Cash Costs | 29 | |||||
Abandonment of Excess Facilities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Costs, Cash Costs | 20 | |||||
Other Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Costs, Cash Costs | [2] | 8 | ||||
Life Sciences Solutions [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other costs, net | 10 | 23 | ||||
Total Restructuring and Other Costs (Income), Net | 10 | 23 | ||||
Analytical Instruments [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cost of Revenues | 2 | 2 | ||||
Selling, General and Administrative Expenses | (1) | (1) | ||||
Restructuring and other costs, net | 4 | 21 | ||||
Total Restructuring and Other Costs (Income), Net | 5 | 22 | ||||
Specialty Diagnostics [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other costs, net | 4 | |||||
Total Restructuring and Other Costs (Income), Net | 4 | |||||
Laboratory Products and Services [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cost of Revenues | 3 | 6 | ||||
Selling, General and Administrative Expenses | 4 | 11 | ||||
Restructuring and other costs, net | 3 | 13 | ||||
Total Restructuring and Other Costs (Income), Net | $ 10 | 30 | ||||
Corporate [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Selling, General and Administrative Expenses | 1 | |||||
Restructuring and other costs, net | 1 | |||||
Total Restructuring and Other Costs (Income), Net | $ 2 | |||||
Scenario, Forecast [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Identified Future Restructuring Costs | $ 100 | |||||
[1] | Excludes $11 million of charges, net, primarily associated with litigation-related matters, hurricane response costs, and non-cash compensation due at an acquired business. | |||||
[2] | Other includes relocation and moving expenses associated with facility consolidations, as well as employee retention costs which are accrued ratably over the period through which employees must work to qualify for a payment. |
Restructuring Reserves (Details
Restructuring Reserves (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2018USD ($) | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 76 | |
Costs incurred | 57 | [1] |
Reserves reversed | (6) | [2] |
Payments | (46) | |
Ending balance | 81 | |
Restructuring and Related Costs, Other Costs (Income), Net | 11 | |
Severance [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 30 | |
Costs incurred | 29 | |
Reserves reversed | (5) | [2] |
Payments | (23) | |
Ending balance | $ 31 | |
Restructuring Reserve, Expected Final Year of Payments | 2,018 | |
Abandonment of Excess Facilities [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 40 | |
Costs incurred | 20 | |
Reserves reversed | (1) | [2] |
Payments | (14) | |
Ending balance | $ 45 | |
Restructuring Reserve, Expected Final Year of Payments | 2,027 | |
Other Restructuring [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 6 | [3] |
Costs incurred | 8 | [3] |
Payments | (9) | [3] |
Ending balance | $ 5 | [3] |
Restructuring Reserve, Expected Final Year of Payments | 2,018 | |
[1] | Excludes $11 million of charges, net, primarily associated with litigation-related matters, hurricane response costs, and non-cash compensation due at an acquired business. | |
[2] | Represents reductions in cost of plans. | |
[3] | Other includes relocation and moving expenses associated with facility consolidations, as well as employee retention costs which are accrued ratably over the period through which employees must work to qualify for a payment. |