Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 27, 2020shares | |
Entity Listings [Line Items] | |
Entity Central Index Key | 0000097745 |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 27, 2020 |
Document Transition Report | false |
Entity File Number | 1-8002 |
Entity Registrant Name | THERMO FISHER SCIENTIFIC INC. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 04-2209186 |
Entity Address, Address Line One | 168 Third Avenue |
Entity Address, City or Town | Waltham |
Entity Address, State or Province | MA |
Entity Address, Postal Zip Code | 02451 |
City Area Code | 781 |
Local Phone Number | 622-1000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 395,589,400 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Common Stock, $1.00 par value | |
Entity Listings [Line Items] | |
Title of 12(b) Security | Common Stock, $1.00 par value |
Trading Symbol | TMO |
Security Exchange Name | NYSE |
Floating Rate Notes due 2020 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | Floating Rate Notes due 2020 |
Trading Symbol | TMO /20A |
Security Exchange Name | NYSE |
2.150% Notes due 2022 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 2.150% Notes due 2022 |
Trading Symbol | TMO 22A |
Security Exchange Name | NYSE |
0.750% Notes due 2024 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 0.750% Notes due 2024 |
Trading Symbol | TMO 24A |
Security Exchange Name | NYSE |
0.125% Notes due 2025 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 0.125% Notes due 2025 |
Trading Symbol | TMO 25B |
Security Exchange Name | NYSE |
2.000% Notes due 2025 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 2.000% Notes due 2025 |
Trading Symbol | TMO 25 |
Security Exchange Name | NYSE |
1.400% Notes due 2026 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 1.400% Notes due 2026 |
Trading Symbol | TMO 26A |
Security Exchange Name | NYSE |
1.450% Notes due 2027 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 1.450% Notes due 2027 |
Trading Symbol | TMO 27 |
Security Exchange Name | NYSE |
1.750% Notes due 2027 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 1.750% Notes due 2027 |
Trading Symbol | TMO 27B |
Security Exchange Name | NYSE |
0.500% Notes due 2028 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 0.500% Notes due 2028 |
Trading Symbol | TMO 28A |
Security Exchange Name | NYSE |
1.375% Notes due 2028 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 1.375% Notes due 2028 |
Trading Symbol | TMO 28 |
Security Exchange Name | NYSE |
1.950% Notes due 2029 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 1.950% Notes due 2029 |
Trading Symbol | TMO 29 |
Security Exchange Name | NYSE |
0.875% Notes due 2031 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 0.875% Notes due 2031 |
Trading Symbol | TMO 31 |
Security Exchange Name | NYSE |
2.375% Notes due 2032 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 2.375% Notes due 2032 |
Trading Symbol | TMO 32 |
Security Exchange Name | NYSE |
2.875% Notes due 2037 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 2.875% Notes due 2037 |
Trading Symbol | TMO 37 |
Security Exchange Name | NYSE |
1.500% Notes due 2039 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 1.500% Notes due 2039 |
Trading Symbol | TMO 39 |
Security Exchange Name | NYSE |
1.875% Notes due 2049 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 1.875% Notes due 2049 |
Trading Symbol | TMO 49 |
Security Exchange Name | NYSE |
Consolidated Balance Sheet (Una
Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 5,818 | $ 2,399 |
Accounts receivable, less allowances of $113 and $102 | 4,478 | 4,349 |
Inventories | 3,648 | 3,370 |
Contract assets, net | 686 | 603 |
Other current assets | 1,145 | 1,172 |
Total current assets | 15,775 | 11,893 |
Property, Plant and Equipment, Net | 4,887 | 4,749 |
Acquisition-related Intangible Assets, Net | 13,170 | 14,014 |
Other Assets | 2,061 | 2,011 |
Goodwill | 25,700 | 25,714 |
Total Assets | 61,593 | 58,381 |
Current Liabilities: | ||
Short-term obligations and current maturities of long-term obligations | 675 | 676 |
Accounts payable | 1,385 | 1,920 |
Accrued payroll and employee benefits | 1,184 | 1,010 |
Contract liabilities | 975 | 916 |
Other accrued expenses | 1,794 | 1,675 |
Total current liabilities | 6,013 | 6,197 |
Deferred Income Taxes | 1,750 | 2,192 |
Other Long-term Liabilities | 3,317 | 3,241 |
Long-term Obligations | 20,638 | 17,076 |
Shareholders' Equity: | ||
Preferred stock, $100 par value, 50,000 shares authorized; none issued | ||
Common stock, $1 par value, 1,200,000,000 shares authorized; 435,885,737 and 434,416,804 shares issued | 436 | 434 |
Capital in excess of par value | 15,334 | 15,064 |
Retained earnings | 23,860 | 22,092 |
Treasury stock at cost, 40,296,337 and 35,676,421 shares | (6,766) | (5,236) |
Accumulated other comprehensive items | (2,989) | (2,679) |
Total shareholders' equity | 29,875 | 29,675 |
Total Liabilities and Shareholders' Equity | $ 61,593 | $ 58,381 |
Consolidated Balance Sheet (U_2
Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable Allowances | $ 113 | $ 102 |
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, $1 Par Value - Shares Issued (in shares) | 435,885,737 | 434,416,804 |
Treasury Stock at Cost (in shares) | 40,296,337 | 35,676,421 |
Consolidated Statement of Incom
Consolidated Statement of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Revenues | ||||
Revenues | $ 6,917 | $ 6,316 | $ 13,147 | $ 12,441 |
Costs and Operating Expenses: | ||||
Selling, general and administrative expenses | 1,710 | 1,565 | 3,261 | 3,093 |
Research and development expenses | 264 | 246 | 509 | 494 |
Restructuring and other costs (income), net | 12 | (484) | 50 | (473) |
Total costs and operating expenses | 5,526 | 4,820 | 10,850 | 10,025 |
Operating Income | 1,391 | 1,496 | 2,297 | 2,416 |
Interest Income | 8 | 60 | 44 | 127 |
Interest Expense | (137) | (181) | (263) | (370) |
Other (Expense) Income, Net | (9) | 18 | 3 | 37 |
Income Before Income Taxes | 1,253 | 1,393 | 2,081 | 2,210 |
Provision for Income Taxes | (97) | (274) | (137) | (276) |
Net Income | $ 1,156 | $ 1,119 | $ 1,944 | $ 1,934 |
Earnings per Share | ||||
Basic (in dollars per share) | $ 2.92 | $ 2.80 | $ 4.91 | $ 4.84 |
Diluted (in dollars per share) | $ 2.90 | $ 2.77 | $ 4.87 | $ 4.80 |
Weighted Average Shares | ||||
Basic (in shares) | 395 | 400 | 396 | 400 |
Diluted (in shares) | 398 | 403 | 399 | 403 |
Product [Member] | ||||
Revenues | ||||
Revenues | $ 5,250 | $ 4,827 | $ 9,880 | $ 9,547 |
Costs and Operating Expenses: | ||||
Cost of revenues | 2,391 | 2,478 | 4,731 | 4,892 |
Service [Member] | ||||
Revenues | ||||
Revenues | 1,667 | 1,489 | 3,267 | 2,894 |
Costs and Operating Expenses: | ||||
Cost of revenues | $ 1,149 | $ 1,015 | $ 2,299 | $ 2,019 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Comprehensive Income | ||||
Net income | $ 1,156 | $ 1,119 | $ 1,944 | $ 1,934 |
Currency translation adjustment: | ||||
Currency translation adjustment (net of tax (benefit) provision of $(17), $(30), $5 and $15) | 103 | (116) | (254) | (131) |
Unrealized gains and losses on hedging instruments: | ||||
Unrealized losses on hedging instruments (net of tax benefit of $1, $0, $20 and $0) | (3) | 0 | (65) | 0 |
Reclassification adjustment for losses included in net income (net of tax benefit of $1, $1, $2 and $2) | 3 | 3 | 4 | 5 |
Pension and other postretirement benefit liability adjustments: | ||||
Pension and other postretirement benefit liability adjustments arising during the period (net of tax benefit of $6, $4, $1 and $4) | (6) | (12) | (1) | (11) |
Amortization of net loss included in net periodic pension cost (net of tax benefit of $2, $1, $3 and $2) | 2 | 4 | 6 | 5 |
Total other comprehensive items | 99 | (121) | (310) | (132) |
Comprehensive Income | $ 1,255 | $ 998 | $ 1,634 | $ 1,802 |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax provision (benefit) on currency translation adjustment | $ (17) | $ (30) | $ 5 | $ 15 |
Tax benefit on unrealized holding losses on hedging instruments arising during the period | 1 | 0 | 20 | 0 |
Tax benefit on reclassification adjustment for losses on hedging instruments recognized in net income | 1 | 1 | 2 | 2 |
Tax benefit on pension and other postretirement benefit liability adjustments arising during the period | 6 | 4 | 1 | 4 |
Tax 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. 27, 2020 | Jun. 29, 2019 | |
Operating Activities | ||
Net income | $ 1,944 | $ 1,934 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 306 | 275 |
Amortization of acquisition-related intangible assets | 842 | 851 |
Change in deferred income taxes | (318) | (392) |
Gain on sales of businesses | 0 | (505) |
Stock-based compensation | 93 | 96 |
Other non-cash expenses, net | 109 | 48 |
Changes in assets and liabilities, excluding the effects of acquisitions and disposition: | ||
Accounts receivable | (195) | 5 |
Inventories | (309) | (273) |
Accounts payable | (497) | (202) |
Contributions to retirement plans | (36) | (34) |
Other | 303 | 140 |
Net cash provided by operating activities | 2,242 | 1,943 |
Investing Activities | ||
Acquisitions, net of cash acquired | (3) | (1,686) |
Proceeds from sale of business, net of cash divested | 0 | 1,126 |
Purchase of property, plant and equipment | (522) | (421) |
Proceeds from sale of property, plant and equipment | 6 | 12 |
Other investing activities, net | 0 | 19 |
Net cash used in investing activities | (519) | (950) |
Financing Activities | ||
Net proceeds from issuance of debt | 3,464 | 0 |
Repayment of debt | (2) | (3) |
Proceeds from issuance of commercial paper | 383 | 1,895 |
Repayments of commercial paper | (387) | (1,855) |
Purchases of company common stock | (1,500) | (750) |
Dividends paid | (163) | (144) |
Net proceeds from issuance of company common stock under employee stock plans | 125 | 122 |
Other financing activities, net | (121) | 0 |
Net cash provided by (used in) financing activities | 1,799 | (735) |
Exchange Rate Effect on Cash | (107) | (61) |
Increase in Cash, Cash Equivalents and Restricted Cash | 3,415 | 197 |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 2,422 | 2,117 |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 5,837 | $ 2,314 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Items [Member] |
Balance (in shares) at Dec. 31, 2018 | 432 | 29 | ||||||
Balance at Dec. 31, 2018 | $ 27,586 | $ 4 | $ 432 | $ 14,621 | $ 18,696 | $ 4 | $ (3,665) | $ (2,498) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under employees' and directors' stock plans (in shares) | 1 | 1 | ||||||
Issuance of shares under employees' and directors' stock plans | 143 | $ 1 | 170 | $ (28) | ||||
Stock-based compensation | 96 | 96 | ||||||
Purchases of company common stock (in shares) | 3 | |||||||
Purchases of company common stock | (750) | $ (750) | ||||||
Dividends declared | (152) | (152) | ||||||
Net income | 1,934 | 1,934 | ||||||
Other comprehensive items | (132) | (132) | ||||||
Balance (in shares) at Jun. 29, 2019 | 433 | 33 | ||||||
Balance at Jun. 29, 2019 | 28,729 | $ 433 | 14,887 | 20,482 | $ (4,443) | (2,630) | ||
Balance (in shares) at Mar. 30, 2019 | 433 | 33 | ||||||
Balance at Mar. 30, 2019 | 27,693 | $ 433 | 14,771 | 19,439 | $ (4,441) | (2,509) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under employees' and directors' stock plans (in shares) | 0 | |||||||
Issuance of shares under employees' and directors' stock plans | 62 | $ 0 | 64 | $ (2) | ||||
Stock-based compensation | 52 | 52 | ||||||
Dividends declared | (76) | (76) | ||||||
Net income | 1,119 | 1,119 | ||||||
Other comprehensive items | (121) | (121) | ||||||
Balance (in shares) at Jun. 29, 2019 | 433 | 33 | ||||||
Balance at Jun. 29, 2019 | 28,729 | $ 433 | 14,887 | 20,482 | $ (4,443) | (2,630) | ||
Balance (in shares) at Dec. 31, 2019 | 434 | 36 | ||||||
Balance at Dec. 31, 2019 | 29,675 | $ (1) | $ 434 | 15,064 | 22,092 | $ (1) | $ (5,236) | (2,679) |
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 | 149 | $ 2 | 177 | $ (30) | ||||
Stock-based compensation | 93 | 93 | ||||||
Purchases of company common stock (in shares) | 4 | |||||||
Purchases of company common stock | (1,500) | $ (1,500) | ||||||
Dividends declared | (175) | (175) | ||||||
Net income | 1,944 | 1,944 | ||||||
Other comprehensive items | (310) | (310) | ||||||
Balance (in shares) at Jun. 27, 2020 | 436 | 40 | ||||||
Balance at Jun. 27, 2020 | 29,875 | $ 436 | 15,334 | 23,860 | $ (6,766) | (2,989) | ||
Balance (in shares) at Mar. 28, 2020 | 435 | 40 | ||||||
Balance at Mar. 28, 2020 | 28,559 | $ 435 | 15,186 | 22,791 | $ (6,765) | (3,088) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under employees' and directors' stock plans (in shares) | 1 | 0 | ||||||
Issuance of shares under employees' and directors' stock plans | 101 | $ 1 | 101 | $ (1) | ||||
Stock-based compensation | 47 | 47 | ||||||
Dividends declared | (87) | (87) | ||||||
Net income | 1,156 | 1,156 | ||||||
Other comprehensive items | 99 | 99 | ||||||
Balance (in shares) at Jun. 27, 2020 | 436 | 40 | ||||||
Balance at Jun. 27, 2020 | $ 29,875 | $ 436 | $ 15,334 | $ 23,860 | $ (6,766) | $ (2,989) |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders' Equity Consolidated Statement of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Cash Dividends Declared per Common Share (in dollars per share) | $ 0.22 | $ 0.19 | $ 0.44 | $ 0.38 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 27, 2020 | |
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 helping them accelerate life sciences research, solve complex analytical challenges, improve patient diagnostics, deliver medicines to market and increase laboratory productivity. 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 27, 2020, the results of operations for the three- and six-month periods ended June 27, 2020 and June 29, 2019, and the cash flows for the six-month periods ended June 27, 2020 and June 29, 2019. Interim results are not necessarily indicative of results for a full year. The consolidated balance sheet presented as of December 31, 2019, 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 2019 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 2019 describes the significant accounting estimates and policies used in preparation of the consolidated financial statements. There have been no material changes in the company’s significant accounting policies during the six months ended June 27, 2020. Contract-related Balances Accounts receivable include amounts that have been billed and are currently due from customers. They are recorded at the invoiced amount and do not bear interest. The company maintains allowances for doubtful accounts for estimates of expected losses resulting from the inability of its customers to pay amounts due. The allowance for doubtful accounts is the company’s best estimate of the amount of probable credit losses in existing accounts receivable. The company determines the allowance based on history of similarly aged receivables, the creditworthiness of the customer, reasons for delinquency, current economic conditions, expectations associated with future events and circumstances where reasonable and supportable forecasts are available and any other information that is relevant to the judgment. Receivables from academic and government customers as well as large, well-capitalized commercial customers have historically experienced less collectability risk. Account balances are charged off against the allowance when the company believes it is probable the receivable will not be recovered. The company does not have any off-balance-sheet credit exposure related to customers. The changes in the allowance for doubtful accounts are as follows: Six Months Ended June 27, June 29, (In millions) 2020 2019 Balance at Beginning of Year $ 102 $ 117 Cumulative effect of accounting change 1 — Provision charged to expense 30 8 Accounts written off (18) (10) Acquisitions, currency translation and other (2) (2) Balance at End of Period $ 113 $ 113 Contract assets include revenues recognized in advance of billings and are recorded net of estimated losses resulting from the inability to invoice customers, which is primarily due to risk associated with the company’s performance. 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. Noncurrent contract assets are included within other assets in the accompanying balance sheet. Noncurrent contract liabilities are included within other long-term liabilities in the accompanying balance sheet. Contract assets and liabilities are presented on a net basis in the consolidated balance sheet if they arise from different performance obligations in the same contract. Contract asset and liability balances are as follows: June 27, December 31, (In millions) 2020 2019 Current Contract Assets, Net $ 686 $ 603 Noncurrent Contract Assets, Net 14 17 Current Contract Liabilities 975 916 Noncurrent Contract Liabilities 624 594 In the three and six months ended June 27, 2020, the company recognized revenue of $226 million and $631 million, respectively, that was included in the contract liabilities balance at December 31, 2019. 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 27, June 29, (In millions) 2020 2019 Balance at Beginning of Year $ 93 $ 92 Provision charged to expense 41 53 Usage (46) (55) Adjustments to previously provided warranties, net (1) (1) Currency translation (1) — Balance at End of Period $ 86 $ 89 Inventories The components of inventories are as follows: June 27, December 31, (In millions) 2020 2019 Raw Materials $ 1,159 $ 971 Work in Process 533 517 Finished Goods 1,956 1,882 Inventories $ 3,648 $ 3,370 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. The company’s estimates include, among others, asset reserve requirements as well as the amounts of future cash flows associated with certain assets and businesses that are used in assessing the risk of impairment. Risks and uncertainties associated with the ongoing COVID-19 global pandemic will materially adversely affect certain of the company’s businesses, particularly in the Analytical Instruments segment and, to a lesser extent, in the other three segments, through at least the third quarter of 2020. The extent and duration of such impacts are uncertain and may require changes to estimates. Actual results could differ from those estimates. Recent Accounting Pronouncements In January 2020, the FASB issued new guidance to clarify the interaction of the accounting for certain equity securities, equity method investments, and certain forward contracts and purchased options. Among other things, the new guidance clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying measurement principles for certain equity securities immediately before applying or discontinuing the equity method. The company adopted this guidance in 2020 using a prospective method. The adoption of this guidance did not have a material impact on the company’s consolidated financial statements. In December 2019, the FASB issued new guidance to simplify the accounting for income taxes. Among other things, the new guidance requires the effects of enacted changes in tax laws or rates to be reflected in the annual effective tax rate computation in the interim period that includes the enactment date. The company expects to adopt this guidance when it is effective in 2021 using a prospective method. The adoption of this guidance is not expected to have a material impact on the company’s consolidated financial statements; however, the impact in future periods will be dependent on the extent of future events or conditions that would be affected such as enacted changes in tax laws or rates. In August 2018, the FASB issued new guidance to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The company adopted the guidance in 2020 using a retrospective method. The adoption of this guidance did not have a material impact on the company’s disclosures. In August 2018, the FASB issued new guidance to modify the disclosure requirements on fair value measurements. The company adopted the guidance in 2020 with some items requiring a prospective method and others requiring a retrospective method. The adoption of this guidance did not have a material impact on the company’s disclosures. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Jun. 27, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions [Text Block] | Note 2. Acquisitions and Dispositions The company’s acquisitions have historically been made at prices above the determined fair value of the acquired identifiable net assets, resulting in goodwill, primarily 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 acquisition 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. Pending Acquisition On March 3, 2020, the company entered into a purchase agreement to acquire all of the issued and outstanding shares of QIAGEN N.V. at a price of €39 per share. On July 16, 2020, the agreement was amended to, among other things, increase the offer price to €43 per share or approximately $12.7 billion (based on exchange rates at the time of the amendment), which includes the assumption of approximately $1.2 billion of net debt. QIAGEN is a leading provider of life science and molecular diagnostic solutions that will expand the company’s capabilities in these fields. QIAGEN reported 2019 revenues of $1.5 billion. The company commenced a tender offer to acquire all of the ordinary shares of QIAGEN. The transaction is expected to close during the first half of 2021, subject to the satisfaction of customary closing conditions including receipt of applicable regulatory approvals, and completion of the tender offer. The company intends to finance the purchase price, including the repayment of indebtedness of QIAGEN, with cash on hand and the net proceeds from issuances of debt. The company has also entered into a €3.0 billion senior unsecured one-year term loan to be drawn at the closing of the QIAGEN acquisition. The company is currently evaluating other future debt financings and the timing of such transactions is subject to market and other conditions. The company also has available, but does not currently expect to utilize, up to €6.25 billion of committed bridge financing (Note 7). |
Revenue
Revenue | 6 Months Ended |
Jun. 27, 2020 | |
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 27, June 29, June 27, June 29, (In millions) 2020 2019 2020 2019 Revenues Consumables 3,879 3,268 $ 7,258 $ 6,498 Instruments 1,371 1,559 2,622 3,049 Services 1,667 1,489 3,267 2,894 Consolidated revenues $ 6,917 $ 6,316 $ 13,147 $ 12,441 Revenue by geographic region is as follows: Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions) 2020 2019 2020 2019 Revenues (a) North America $ 3,544 $ 3,230 $ 6,831 $ 6,289 Europe 1,783 1,536 3,432 3,055 Asia-Pacific 1,329 1,368 2,447 2,731 Other regions 261 182 437 366 Consolidated revenues $ 6,917 $ 6,316 $ 13,147 $ 12,441 (a) Revenues are attributed to regions based on customer location. 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 27, 2020 was $9.99 billion. The company will recognize revenue for these performance obligations as they are satisfied, approximately 69% of which is expected to occur within the next twelve months. |
Business Segment and Geographic
Business Segment and Geographical Information | 6 Months Ended |
Jun. 27, 2020 | |
Segment Reporting [Abstract] | |
Business Segment and Geographical Information [Text Block] | Note 4. Business Segment and Geographical Information Business Segment Information Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions) 2020 2019 2020 2019 Revenues Life Sciences Solutions $ 2,602 $ 1,710 $ 4,376 $ 3,317 Analytical Instruments 1,051 1,324 2,152 2,646 Specialty Diagnostics 988 943 1,946 1,900 Laboratory Products and Services 2,787 2,633 5,517 5,146 Eliminations (511) (294) (844) (568) Consolidated revenues 6,917 6,316 13,147 12,441 Segment Income (a) Life Sciences Solutions 1,234 609 1,909 1,170 Analytical Instruments 135 286 306 568 Specialty Diagnostics 214 242 450 484 Laboratory Products and Services 281 345 576 630 Subtotal reportable segments (a) 1,864 1,482 3,241 2,852 Cost of revenues charges, net (2) (5) (4) (11) Selling, general and administrative charges, net (42) (36) (48) (47) Restructuring and other (costs) income, net (12) 484 (50) 473 Amortization of acquisition-related intangible assets (417) (429) (842) (851) Consolidated operating income 1,391 1,496 2,297 2,416 Interest income (b) 8 60 44 127 Interest expense (b) (137) (181) (263) (370) Other (expense) income, net (b) (9) 18 3 37 Income before income taxes $ 1,253 $ 1,393 $ 2,081 $ 2,210 (a) Represents operating income before certain charges to cost of revenues and selling, general and administrative expenses; restructuring and other costs/income, net; and amortization of acquisition-related intangibles. (b) The company does not allocate interest or other expense/income, net to its segments. Geographical Information Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions) 2020 2019 2020 2019 Revenues (c) United States $ 3,414 $ 3,103 $ 6,553 $ 6,021 China 594 724 1,058 1,378 Other 2,909 2,489 5,536 5,042 Consolidated revenues $ 6,917 $ 6,316 $ 13,147 $ 12,441 (c) Revenues are attributed to countries based on customer location. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | Note 5. 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 27, June 29, (In millions) 2020 2019 Statutory Federal Income Tax Rate 21 % 21 % Provision for Income Taxes at Statutory Rate $ 437 $ 464 Increases (Decreases) Resulting From: Foreign rate differential (110) (184) Foreign exchange loss on inter-company debt refinancing — (62) Income tax credits (226) (137) Global intangible low-taxed income 104 134 Foreign-derived intangible income (29) (24) Withholding taxes 9 31 Transition tax and other impacts of U.S. tax reform — (20) Provision for tax reserves, net — 43 Excess tax benefits from stock options and restricted stock units (50) (50) Basis difference on disposal of business — 64 Other, net 2 17 Provision for Income Taxes $ 137 $ 276 The company has operations and a taxable presence in approximately 50 countries outside the U.S. The company's effective income tax rate differs from the U.S. federal statutory rate each year due to certain operations that are subject to tax incentives, state and local taxes, and foreign taxes that are different than the U.S. federal statutory rate. In the second quarter of 2020, the company implemented foreign tax credit planning in Sweden which resulted in $96 million of foreign tax credits, with no related incremental U.S. income tax expense. Unrecognized Tax Benefits As of June 27, 2020, the company had $1.55 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) 2020 Balance at Beginning of Year $ 1,552 Additions for tax positions of current year 4 Settlements (7) Balance at End of Period $ 1,549 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 27, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 6. Earnings per Share Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions except per share amounts) 2020 2019 2020 2019 Net Income $ 1,156 $ 1,119 $ 1,944 $ 1,934 Basic Weighted Average Shares 395 400 396 400 Plus Effect of: Stock options and restricted units 3 3 3 3 Diluted Weighted Average Shares 398 403 399 403 Basic Earnings per Share $ 2.92 $ 2.80 $ 4.91 $ 4.84 Diluted Earnings per Share $ 2.90 $ 2.77 $ 4.87 $ 4.80 Antidilutive Stock Options Excluded from Diluted Weighted Average Shares 1 1 1 1 |
Debt and Other Financing Arrang
Debt and Other Financing Arrangements | 6 Months Ended |
Jun. 27, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Other Financing Arrangements [Text Block] | Note 7. Debt and Other Financing Arrangements Effective Interest Rate at June 27, June 27, December 31, (Dollars in millions) 2020 2020 2019 Floating Rate 2-Year Senior Notes, Due 8/7/2020 (euro-denominated) 0.04 % $ 673 $ 673 2.15% 7-Year Senior Notes, Due 7/21/2022 (euro-denominated) 2.27 % 561 561 3.00% 7-Year Senior Notes, Due 4/15/2023 1.87 % 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 % 1,122 1,121 0.125% 5.5-Year Senior Notes, Due 3/1/2025 (euro-denominated) 0.41 % 898 897 4.133% 5-Year Senior Notes, Due 3/25/2025 4.32 % 1,100 — 2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) 2.10 % 719 717 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 % 785 785 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) 1.65 % 561 561 1.75% 7-Year Senior Notes, Due 4/15/2027 (euro-denominated) 1.97 % 673 — 3.20% 10-Year Senior Notes, Due 8/15/2027 3.39 % 750 750 0.50% 8.5-Year Senior Notes, Due 3/1/2028 (euro-denominated) 0.77 % 898 897 1.375% 12-Year Senior Notes, Due 9/12/2028 (euro-denominated) 1.46 % 673 673 1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) 2.08 % 785 785 2.60% 10-Year Senior Notes, Due 10/1/2029 2.74 % 900 900 4.497% 10-Year Senior Notes, Due 3/25/2030 5.31 % 1,100 — 0.875% 12-Year Senior Notes, Due 10/1/2031 (euro-denominated) 1.13 % 1,009 1,009 2.375% 12-Year Senior Notes, Due 4/15/2032 (euro-denominated) 2.55 % 673 — 2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) 2.94 % 785 785 1.50% 20-Year Senior Notes, Due 10/1/2039 (euro-denominated) 1.73 % 1,009 1,009 5.30% 30-Year Senior Notes, Due 2/1/2044 5.37 % 400 400 4.10% 30-Year Senior Notes, Due 8/15/2047 4.23 % 750 750 1.875% 30-Year Senior Notes, Due 10/1/2049 (euro-denominated) 1.98 % 1,122 1,121 Other 9 16 Total Borrowings at Par Value 21,505 17,960 Fair Value Hedge Accounting Adjustments 30 (13) Unamortized Discount, Net (101) (94) Unamortized Debt Issuance Costs (121) (101) Total Borrowings at Carrying Value 21,313 17,752 Less: Short-term Obligations and Current Maturities 675 676 Long-term Obligations $ 20,638 $ 17,076 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 10 for fair value information pertaining to the company’s long-term obligations. In connection with the agreement to acquire QIAGEN (Note 2), the company has available up to €6.25 billion of committed bridge financing. The company intends to finance the purchase price, including the repayment of indebtedness of QIAGEN, with cash on hand and the net proceeds from issuances of debt. The company issued senior notes in March and April 2020 to partly fund the acquisition and for general corporate purposes. The company has also entered into a €3.0 billion senior unsecured one-year term loan to be drawn at the closing of the QIAGEN acquisition. As of June 27, 2020, no borrowings were outstanding under the term loan. Loans under the term loan facility will be available in euros and/or dollars. The term loan agreement calls for (i) each Eurocurrency Rate Loan at a rate based on the EURIBO rate (for euro loans) or LIBO rate (for dollar loans) for the applicable interest period and (ii) each Base Rate Loan denominated in dollars at a rate based on the Base Rate. The term loan agreement contains affirmative, negative and financial covenants, and events of default customary for financings of this type. The financial covenants are consistent with those in the revolving credit facility described below. The company is currently evaluating future debt financings and the timing of such transactions is subject to market and other conditions. The company had a cash outlay of $49 million in 2020 associated with obtaining the bridge commitment included in other financing activities, net, in the accompanying statement of cash flows. In 2020, other income, net includes $44 million of costs for the QIAGEN acquisition, primarily for entering into hedging contracts and amortization of bridge loan commitment fees. Credit Facilities The company has a revolving credit facility, as amended, (the Facility) with a bank group that provides for up to $2.5 billion of unsecured multi-currency revolving credit. The Facility expires in July 2022. The revolving credit 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 the Facility include a Consolidated Leverage Ratio (net 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 5.0:1.0, with such ratio stepping down to 4.0 to 1.0 for the two consecutive fiscal quarters starting on the earlier of (a) the last day of the first fiscal quarter of 2022 and (b) the third full fiscal quarter ending after the QIAGEN acquisition closing date, and then stepping down to 3.5 to 1.0 for each fiscal quarter ending 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 27, 2020, no borrowings were outstanding under the Facility, although available capacity was reduced by approximately $68 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 27, 2020, there were no outstanding borrowings under these programs. 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. In 2018, Thermo Fisher Scientific (Finance I) B.V., a wholly-owned finance subsidiary of the company, issued the Floating Rate Senior Notes due 2020 included in the table above. This subsidiary has no independent function other than financing activities. The Floating Rate Senior Notes due 2020 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. The aggregate amounts of the swaps are equal to the principal amount of the notes and the payment dates of the swaps coincide with the interest payment dates of the note. 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 10 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 27, 2020: Aggregate Notional Amount Pay Rate as of (Dollars in millions) Pay Rate June 27, Receive Rate 3.00% Senior Notes due 2023 (a) 1,000 1-month LIBOR + 1.7640% 1.9488 % 3.00 % (a) The payments on $900 million 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 27, 2020 from 1.95% to a weighted average of 1.34%. The company has entered into $900 million 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. 27, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Text Block] | Note 8. 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 input from 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 27, 2020, the company’s total environmental liability was approximately $71 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 2019 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 June 3, 2013, Unisone Strategic IP filed a complaint against Life Technologies, a subsidiary of the company, 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 (PTAB) that found the challenged patent claims invalid. The United States Court of Appeals for the Federal Circuit upheld the PTAB’s ruling finding the challenged claims in the Unisone patent invalid. Unisone had until March 11, 2019 to file an appeal with the United States Supreme Court. Unisone did not appeal that decision, and consequently the case before the United States District Court, which had been stayed pending the outcome of the PTAB decision, resumed with Unisone filing an amended complaint on September 12, 2019 regarding similar patent claims that were not included in the PTAB proceeding. On November 1, 2019, Life Technologies filed two additional covered business method (CBM) challenges with the PTAB regarding Unisone’s new patent claims. On December 16, 2019, the United States District Court granted Life Technologies’ motion to stay the case pending the PTAB’s decision whether to institute a CBM review of the new patent claims. On April 28, 2020, the PTAB granted Life Technologies’ November 1, 2019 CBM petitions and instituted review of all of Unisone’s remaining patent claims. The PTAB has set oral argument on the CBMs for January 27, 2021. Strategic Partnership and Long-term Lease In May 2020, the company entered a strategic partnership with CSL Limited (CSL). Through a long-term lease agreement with CSL, the company will operate a new state-of-the-art biologics manufacturing facility in Lengnau, Switzerland, when construction is completed in mid-2021, to perform pharma services for CSL with capacity to serve other customers as well. The company made an initial lease payment of $50 million in the second quarter of 2020 (included within other assets in the accompanying balance sheet) and expects to make additional fixed lease payments aggregating to $555 million (excluding renewals) from 2021 to 2040, with additional amounts dependent on the extent of revenues from customers of the facility other than CSL. |
Comprehensive Income
Comprehensive Income | 6 Months Ended |
Jun. 27, 2020 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income and Shareholders' Equity [Text Block] | Note 9. Comprehensive Income Changes in each component of accumulated other comprehensive items, net of tax, are as follows: (In millions) Currency Unrealized Pension and Total Balance at December 31, 2019 $ (2,320) $ (71) $ (288) $ (2,679) Other comprehensive items before reclassifications (254) (65) (1) (320) Amounts reclassified from accumulated other comprehensive items — 4 6 10 Net other comprehensive items (254) (61) 5 (310) Balance at June 27, 2020 $ (2,574) $ (132) $ (283) $ (2,989) |
Fair Value Measurements and Fai
Fair Value Measurements and Fair Value of Financial Instruments | 6 Months Ended |
Jun. 27, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Fair Value of Financial Instruments [Text Block] | Note 10. Fair Value Measurements and Fair Value of Financial Instruments Fair Value Measurements The following tables present information about the company’s financial assets and liabilities measured at fair value on a recurring basis as of June 27, 2020 and December 31, 2019: June 27, Quoted Significant Significant (In millions) 2020 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 4,307 $ 4,307 $ — $ — Investments in common stock, mutual funds and other similar instruments 20 20 — — Warrants 8 — 8 — Insurance contracts 132 — 132 — Derivative contracts 65 — 65 — Total Assets $ 4,532 $ 4,327 $ 205 $ — Liabilities Derivative contracts $ 80 $ — $ 80 $ — Contingent consideration 53 — — 53 Total Liabilities $ 133 $ — $ 80 $ 53 December 31, Quoted Significant Significant (In millions) 2019 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 1,280 $ 1,280 $ — $ — Investments in common stock, mutual funds and other similar instruments 19 19 — — Warrants 6 — 6 — Insurance contracts 131 — 131 — Derivative contracts 37 — 37 — Total Assets $ 1,473 $ 1,299 $ 174 $ — Liabilities Derivative contracts $ 24 $ — $ 24 $ — Contingent consideration 55 — — 55 Total Liabilities $ 79 $ — $ 24 $ 55 The company uses the Black-Scholes model to value its warrants. 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. Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions) 2020 2019 2020 2019 Contingent Consideration Beginning Balance $ 54 $ 37 $ 55 $ 37 Acquisitions (including assumed balances) — 24 — 24 Payments (1) — (2) — Change in fair value included in earnings — (3) — (3) Ending Balance $ 53 $ 58 $ 53 $ 58 Derivative Contracts The following table provides the aggregate notional value of outstanding derivative contracts. June 27, December 31, (In millions) 2020 2019 Notional Amount Interest rate swaps - fair value hedges (described in Note 7) $ 1,000 $ 1,000 Interest rate swaps - cash flow hedges 750 — Cross-currency interest rate swaps - designated as net investment hedges 900 900 Cross-currency interest rate swaps 1,000 — Currency exchange contracts 10,804 2,846 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 27, December 31, June 27, December 31, (In millions) 2020 2019 2020 2019 Derivatives Designated as Hedging Instruments Interest rate swaps (a) $ 30 $ — $ 23 $ 13 Cross-currency interest rate swaps (a) 34 33 — — Derivatives Not Designated as Hedging Instruments Currency exchange contracts (b) 1 4 47 11 Cross-currency interest rate swaps (a) — — 10 — Total Derivatives $ 65 $ 37 $ 80 $ 24 (a) The fair values of the interest rate swaps and cross-currency interest rate swaps are included in the consolidated balance sheet under the caption other assets or other long-term liabilities. (b) 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 June 27, December 31, June 27, December 31, (In millions) 2020 2019 2020 2019 Long-term Obligations $ 1,024 $ 980 $ 30 $ (13) Gain (Loss) Recognized Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions) 2020 2019 2020 2019 Fair Value Hedging Relationships Interest rate swaps Hedged long-term obligations - included in other expense, net $ (7) $ (53) $ (43) $ (81) Derivatives designated as hedging instruments - included in other expense, net 7 54 43 83 Derivatives Designated as Cash Flow Hedges Interest rate swaps Included in unrealized losses on hedging instruments within other comprehensive items (4) — (85) — Amount reclassified from accumulated other comprehensive items to other expense, net (4) (4) (6) (7) Financial Instruments Designated as Net Investment Hedges Foreign currency-denominated debt Included in currency translation adjustment within other comprehensive items (64) (97) 19 59 Cross-currency interest rate swaps Included in currency translation adjustment within other comprehensive items (9) (30) — 7 Included in other expense, net 2 14 7 28 Derivatives Not Designated as Hedging Instruments Currency exchange contracts Included in cost of product revenues (3) (3) — (1) Included in other expense, net (84) (11) (44) 6 Cross-currency interest rate swaps Included in other expense, net — — (10) — 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 also 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 majority of the company’s euro-denominated senior notes and certain of its 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. The company has also entered into $1 billion notional value of cross currency swaps in anticipation of using U.S. dollars to partially finance the euro purchase price of the QIAGEN acquisition (Note 2). Gains and losses associated with these swaps are recorded in other expense, net. See Note 1 to the consolidated financial statements for 2019 included in the company's Annual Report on Form 10-K and Note 7 herein for additional information on the company's risk management objectives and strategies. Cash Flow Hedge Arrangements In March 2020, the company entered into interest rate swap arrangements to mitigate the risk of interest rates rising prior to completion of future debt offerings. Based on the company's conclusion that the debt offerings are probable, the swaps hedge the cash flow risk for each of the interest payments on the planned fixed-rate debt issues. The aggregate fair value of these hedges, net of tax, at June 27, 2020 has been classified within accumulated other comprehensive items. One of these hedges was terminated in March 2020, in connection with the debt offering completed in that month. The aggregate fair value of the terminated hedge at that time, net of tax, has been classified as a reduction to accumulated other comprehensive items and will be amortized to interest expense over the term of the related debt issuance. The company had a cash outlay of $62 million in 2020 associated with termination of the arrangement, included in other financing activities, net, in the accompanying statement of cash flows. Subsequent to June 27, 2020, the company terminated the remaining hedges for an additional cash payment of $24 million. Fair Value of Other Financial Instruments The carrying value and fair value of the company’s debt obligations are as follows: June 27, 2020 December 31, 2019 Carrying Fair Carrying Fair (In millions) Value Value Value Value Debt Obligations: Senior notes $ 21,304 $ 23,276 $ 17,736 $ 18,650 Other 9 9 16 16 $ 21,313 $ 23,285 $ 17,752 $ 18,666 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. 27, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information [Text Block] | Note 11. Supplemental Cash Flow Information Six Months Ended June 27, June 29, (In millions) 2020 2019 Non-cash Investing and Financing Activities Declared but unpaid dividends $ 89 $ 78 Issuance of stock upon vesting of restricted stock units 81 76 Cash, cash equivalents and restricted cash is included in the consolidated balance sheet as follows: June 27, December 31, (In millions) 2020 2019 Cash and Cash Equivalents $ 5,818 $ 2,399 Restricted Cash Included in Other Current Assets 18 21 Restricted Cash Included in Other Assets 1 2 Cash, Cash Equivalents and Restricted Cash $ 5,837 $ 2,422 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 (Income), Net | 6 Months Ended |
Jun. 27, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs, Net [Text Block] | Note 12. Restructuring and Other Costs, Net Restructuring and other costs, net, in the first six months of 2020 primarily included transaction/integration costs related to recent and pending acquisitions, continuing charges for headcount reductions and facility consolidations in an effort to streamline operations, and, to a lesser extent, non-cash charges for writedowns of fixed assets to estimated disposal value in connection with the consolidation of commercial production operations in the U.S. In the first six months of 2020, severance actions associated with facility consolidations and cost reduction measures affected less than 1% of the company’s workforce. As of July 31, 2020, the company has identified restructuring actions that will result in additional charges of approximately $60 million, primarily in 2020 and 2021, and expects to identify additional actions during 2020 which will be recorded when specified criteria are met, such as communication of benefit arrangements or when the costs have been incurred. During the second quarter of 2020, the company recorded net restructuring and other costs by segment as follows: (In millions) Cost of Selling, Restructuring Total Life Sciences Solutions $ — $ — $ — $ — Analytical Instruments — — 5 5 Specialty Diagnostics — 42 4 46 Laboratory Products and Services 2 — 1 3 Corporate — — 2 2 $ 2 $ 42 $ 12 $ 56 During the first six months of 2020, the company recorded net restructuring and other costs by segment as follows: (In millions) Cost of Selling, Restructuring Total Life Sciences Solutions $ — $ — $ 1 $ 1 Analytical Instruments — — 19 19 Specialty Diagnostics — 46 6 52 Laboratory Products and Services 4 2 19 25 Corporate — — 5 5 $ 4 $ 48 $ 50 $ 102 The principal components of net restructuring and other costs by segment are as follows: Analytical Instruments In the first six months of 2020, the Analytical Instruments segment recorded $19 million of net restructuring and other charges, primarily for employee severance associated with headcount reductions in Europe, China, and the U.S., and, to a lesser extent, abandoned facility costs. Specialty Diagnostics In the first six months of 2020, the Specialty Diagnostics segment recorded $52 million of net restructuring and other charges, principally charges for third-party transaction/acquisition-related costs. Laboratory Products and Services In the first six months of 2020, the Laboratory Products and Services segment recorded $25 million of net restructuring and other charges, primarily for employee severance at businesses streamlining operations and for writedowns of fixed assets to estimated disposal value in connection with the consolidation of commercial production operations in the U.S. Corporate In the first six months of 2020, the company recorded $5 million of net restructuring and other costs for severance at its corporate operations and, to a lesser extent, abandoned facility costs. 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 table. Accrued restructuring costs are included in other accrued expenses in the accompanying balance sheet. (In millions) Severance Abandonment Other (a) Total Balance at December 31, 2019 18 $ 10 $ 6 $ 34 Costs incurred in 2020 (c) 29 4 5 38 Reserves reversed (b) (1) — — (1) Payments (24) (4) (5) (33) Balance at June 27, 2020 $ 22 $ 10 $ 6 $ 38 (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 $13 million of charges for fixed asset writedowns and costs associated with environmental remediation at abandoned / previously owned facilities. The company expects to pay accrued restructuring costs primarily through 2020. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Accounts receivable include amounts that have been billed and are currently due from customers. They are recorded at the invoiced amount and do not bear interest. The company maintains allowances for doubtful accounts for estimates of expected losses resulting from the inability of its customers to pay amounts due. The allowance for doubtful accounts is the company’s best estimate of the amount of probable credit losses in existing accounts receivable. The company determines the allowance based on history of similarly aged receivables, the creditworthiness of the customer, reasons for delinquency, current economic conditions, expectations associated with future events and circumstances where reasonable and supportable forecasts are available and any other information that is relevant to the judgment. Receivables from academic and government customers as well as large, well-capitalized commercial customers have historically experienced less collectability risk. Account balances are charged off against the allowance when the company believes it is probable the receivable will not be recovered. The company does not have any off-balance-sheet credit exposure related to customers. |
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. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In January 2020, the FASB issued new guidance to clarify the interaction of the accounting for certain equity securities, equity method investments, and certain forward contracts and purchased options. Among other things, the new guidance clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying measurement principles for certain equity securities immediately before applying or discontinuing the equity method. The company adopted this guidance in 2020 using a prospective method. The adoption of this guidance did not have a material impact on the company’s consolidated financial statements. In December 2019, the FASB issued new guidance to simplify the accounting for income taxes. Among other things, the new guidance requires the effects of enacted changes in tax laws or rates to be reflected in the annual effective tax rate computation in the interim period that includes the enactment date. The company expects to adopt this guidance when it is effective in 2021 using a prospective method. The adoption of this guidance is not expected to have a material impact on the company’s consolidated financial statements; however, the impact in future periods will be dependent on the extent of future events or conditions that would be affected such as enacted changes in tax laws or rates. In August 2018, the FASB issued new guidance to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The company adopted the guidance in 2020 using a retrospective method. The adoption of this guidance did not have a material impact on the company’s disclosures. In August 2018, the FASB issued new guidance to modify the disclosure requirements on fair value measurements. The company adopted the guidance in 2020 with some items requiring a prospective method and others requiring a retrospective method. The adoption of this guidance did not have a material impact on the company’s disclosures. |
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, primarily 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 acquisition 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 and Dispositions (
Acquisitions and Dispositions (Policies) | 6 Months Ended |
Jun. 27, 2020 | |
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, primarily 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 acquisition 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 Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financing Receivable, Current, Allowance for Credit Loss [Table Text Block] | The changes in the allowance for doubtful accounts are as follows: Six Months Ended June 27, June 29, (In millions) 2020 2019 Balance at Beginning of Year $ 102 $ 117 Cumulative effect of accounting change 1 — Provision charged to expense 30 8 Accounts written off (18) (10) Acquisitions, currency translation and other (2) (2) Balance at End of Period $ 113 $ 113 |
Contract with Customer, Asset and Liability [Table Text Block] | Contract asset and liability balances are as follows: June 27, December 31, (In millions) 2020 2019 Current Contract Assets, Net $ 686 $ 603 Noncurrent Contract Assets, Net 14 17 Current Contract Liabilities 975 916 Noncurrent Contract Liabilities 624 594 |
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 27, June 29, (In millions) 2020 2019 Balance at Beginning of Year $ 93 $ 92 Provision charged to expense 41 53 Usage (46) (55) Adjustments to previously provided warranties, net (1) (1) Currency translation (1) — Balance at End of Period $ 86 $ 89 |
Inventories [Table Text Block] | Inventories The components of inventories are as follows: June 27, December 31, (In millions) 2020 2019 Raw Materials $ 1,159 $ 971 Work in Process 533 517 Finished Goods 1,956 1,882 Inventories $ 3,648 $ 3,370 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
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 27, June 29, June 27, June 29, (In millions) 2020 2019 2020 2019 Revenues Consumables 3,879 3,268 $ 7,258 $ 6,498 Instruments 1,371 1,559 2,622 3,049 Services 1,667 1,489 3,267 2,894 Consolidated revenues $ 6,917 $ 6,316 $ 13,147 $ 12,441 Revenue by geographic region is as follows: Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions) 2020 2019 2020 2019 Revenues (a) North America $ 3,544 $ 3,230 $ 6,831 $ 6,289 Europe 1,783 1,536 3,432 3,055 Asia-Pacific 1,329 1,368 2,447 2,731 Other regions 261 182 437 366 Consolidated revenues $ 6,917 $ 6,316 $ 13,147 $ 12,441 (a) Revenues are attributed to regions based on customer location. |
Business Segment and Geograph_2
Business Segment and Geographical Information (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Business Segment Information Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions) 2020 2019 2020 2019 Revenues Life Sciences Solutions $ 2,602 $ 1,710 $ 4,376 $ 3,317 Analytical Instruments 1,051 1,324 2,152 2,646 Specialty Diagnostics 988 943 1,946 1,900 Laboratory Products and Services 2,787 2,633 5,517 5,146 Eliminations (511) (294) (844) (568) Consolidated revenues 6,917 6,316 13,147 12,441 Segment Income (a) Life Sciences Solutions 1,234 609 1,909 1,170 Analytical Instruments 135 286 306 568 Specialty Diagnostics 214 242 450 484 Laboratory Products and Services 281 345 576 630 Subtotal reportable segments (a) 1,864 1,482 3,241 2,852 Cost of revenues charges, net (2) (5) (4) (11) Selling, general and administrative charges, net (42) (36) (48) (47) Restructuring and other (costs) income, net (12) 484 (50) 473 Amortization of acquisition-related intangible assets (417) (429) (842) (851) Consolidated operating income 1,391 1,496 2,297 2,416 Interest income (b) 8 60 44 127 Interest expense (b) (137) (181) (263) (370) Other (expense) income, net (b) (9) 18 3 37 Income before income taxes $ 1,253 $ 1,393 $ 2,081 $ 2,210 (a) Represents operating income before certain charges to cost of revenues and selling, general and administrative expenses; restructuring and other costs/income, net; and amortization of acquisition-related intangibles. (b) The company does not allocate interest or other expense/income, 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 27, June 29, June 27, June 29, (In millions) 2020 2019 2020 2019 Revenues Life Sciences Solutions $ 2,602 $ 1,710 $ 4,376 $ 3,317 Analytical Instruments 1,051 1,324 2,152 2,646 Specialty Diagnostics 988 943 1,946 1,900 Laboratory Products and Services 2,787 2,633 5,517 5,146 Eliminations (511) (294) (844) (568) Consolidated revenues 6,917 6,316 13,147 12,441 Segment Income (a) Life Sciences Solutions 1,234 609 1,909 1,170 Analytical Instruments 135 286 306 568 Specialty Diagnostics 214 242 450 484 Laboratory Products and Services 281 345 576 630 Subtotal reportable segments (a) 1,864 1,482 3,241 2,852 Cost of revenues charges, net (2) (5) (4) (11) Selling, general and administrative charges, net (42) (36) (48) (47) Restructuring and other (costs) income, net (12) 484 (50) 473 Amortization of acquisition-related intangible assets (417) (429) (842) (851) Consolidated operating income 1,391 1,496 2,297 2,416 Interest income (b) 8 60 44 127 Interest expense (b) (137) (181) (263) (370) Other (expense) income, net (b) (9) 18 3 37 Income before income taxes $ 1,253 $ 1,393 $ 2,081 $ 2,210 (a) Represents operating income before certain charges to cost of revenues and selling, general and administrative expenses; restructuring and other costs/income, net; and amortization of acquisition-related intangibles. (b) The company does not allocate interest or other expense/income, 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 27, June 29, June 27, June 29, (In millions) 2020 2019 2020 2019 Revenues (c) United States $ 3,414 $ 3,103 $ 6,553 $ 6,021 China 594 724 1,058 1,378 Other 2,909 2,489 5,536 5,042 Consolidated revenues $ 6,917 $ 6,316 $ 13,147 $ 12,441 (c) Revenues are attributed to countries based on customer location. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
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 27, June 29, (In millions) 2020 2019 Statutory Federal Income Tax Rate 21 % 21 % Provision for Income Taxes at Statutory Rate $ 437 $ 464 Increases (Decreases) Resulting From: Foreign rate differential (110) (184) Foreign exchange loss on inter-company debt refinancing — (62) Income tax credits (226) (137) Global intangible low-taxed income 104 134 Foreign-derived intangible income (29) (24) Withholding taxes 9 31 Transition tax and other impacts of U.S. tax reform — (20) Provision for tax reserves, net — 43 Excess tax benefits from stock options and restricted stock units (50) (50) Basis difference on disposal of business — 64 Other, net 2 17 Provision for Income Taxes $ 137 $ 276 |
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) 2020 Balance at Beginning of Year $ 1,552 Additions for tax positions of current year 4 Settlements (7) Balance at End of Period $ 1,549 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions except per share amounts) 2020 2019 2020 2019 Net Income $ 1,156 $ 1,119 $ 1,944 $ 1,934 Basic Weighted Average Shares 395 400 396 400 Plus Effect of: Stock options and restricted units 3 3 3 3 Diluted Weighted Average Shares 398 403 399 403 Basic Earnings per Share $ 2.92 $ 2.80 $ 4.91 $ 4.84 Diluted Earnings per Share $ 2.90 $ 2.77 $ 4.87 $ 4.80 Antidilutive Stock Options Excluded from Diluted Weighted Average Shares 1 1 1 1 |
Debt and Other Financing Arra_2
Debt and Other Financing Arrangements (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Effective Interest Rate at June 27, June 27, December 31, (Dollars in millions) 2020 2020 2019 Floating Rate 2-Year Senior Notes, Due 8/7/2020 (euro-denominated) 0.04 % $ 673 $ 673 2.15% 7-Year Senior Notes, Due 7/21/2022 (euro-denominated) 2.27 % 561 561 3.00% 7-Year Senior Notes, Due 4/15/2023 1.87 % 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 % 1,122 1,121 0.125% 5.5-Year Senior Notes, Due 3/1/2025 (euro-denominated) 0.41 % 898 897 4.133% 5-Year Senior Notes, Due 3/25/2025 4.32 % 1,100 — 2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) 2.10 % 719 717 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 % 785 785 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) 1.65 % 561 561 1.75% 7-Year Senior Notes, Due 4/15/2027 (euro-denominated) 1.97 % 673 — 3.20% 10-Year Senior Notes, Due 8/15/2027 3.39 % 750 750 0.50% 8.5-Year Senior Notes, Due 3/1/2028 (euro-denominated) 0.77 % 898 897 1.375% 12-Year Senior Notes, Due 9/12/2028 (euro-denominated) 1.46 % 673 673 1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) 2.08 % 785 785 2.60% 10-Year Senior Notes, Due 10/1/2029 2.74 % 900 900 4.497% 10-Year Senior Notes, Due 3/25/2030 5.31 % 1,100 — 0.875% 12-Year Senior Notes, Due 10/1/2031 (euro-denominated) 1.13 % 1,009 1,009 2.375% 12-Year Senior Notes, Due 4/15/2032 (euro-denominated) 2.55 % 673 — 2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) 2.94 % 785 785 1.50% 20-Year Senior Notes, Due 10/1/2039 (euro-denominated) 1.73 % 1,009 1,009 5.30% 30-Year Senior Notes, Due 2/1/2044 5.37 % 400 400 4.10% 30-Year Senior Notes, Due 8/15/2047 4.23 % 750 750 1.875% 30-Year Senior Notes, Due 10/1/2049 (euro-denominated) 1.98 % 1,122 1,121 Other 9 16 Total Borrowings at Par Value 21,505 17,960 Fair Value Hedge Accounting Adjustments 30 (13) Unamortized Discount, Net (101) (94) Unamortized Debt Issuance Costs (121) (101) Total Borrowings at Carrying Value 21,313 17,752 Less: Short-term Obligations and Current Maturities 675 676 Long-term Obligations $ 20,638 $ 17,076 |
Schedule of Derivative Instruments [Table Text Block] | Aggregate Notional Amount Pay Rate as of (Dollars in millions) Pay Rate June 27, Receive Rate 3.00% Senior Notes due 2023 (a) 1,000 1-month LIBOR + 1.7640% 1.9488 % 3.00 % (a) The payments on $900 million 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 27, 2020 from 1.95% to a weighted average of 1.34%. |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
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 Pension and Total Balance at December 31, 2019 $ (2,320) $ (71) $ (288) $ (2,679) Other comprehensive items before reclassifications (254) (65) (1) (320) Amounts reclassified from accumulated other comprehensive items — 4 6 10 Net other comprehensive items (254) (61) 5 (310) Balance at June 27, 2020 $ (2,574) $ (132) $ (283) $ (2,989) |
Fair Value Measurements and F_2
Fair Value Measurements and Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | June 27, 2020 and December 31, 2019: June 27, Quoted Significant Significant (In millions) 2020 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 4,307 $ 4,307 $ — $ — Investments in common stock, mutual funds and other similar instruments 20 20 — — Warrants 8 — 8 — Insurance contracts 132 — 132 — Derivative contracts 65 — 65 — Total Assets $ 4,532 $ 4,327 $ 205 $ — Liabilities Derivative contracts $ 80 $ — $ 80 $ — Contingent consideration 53 — — 53 Total Liabilities $ 133 $ — $ 80 $ 53 December 31, Quoted Significant Significant (In millions) 2019 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 1,280 $ 1,280 $ — $ — Investments in common stock, mutual funds and other similar instruments 19 19 — — Warrants 6 — 6 — Insurance contracts 131 — 131 — Derivative contracts 37 — 37 — Total Assets $ 1,473 $ 1,299 $ 174 $ — Liabilities Derivative contracts $ 24 $ — $ 24 $ — Contingent consideration 55 — — 55 Total Liabilities $ 79 $ — $ 24 $ 55 |
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. Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions) 2020 2019 2020 2019 Contingent Consideration Beginning Balance $ 54 $ 37 $ 55 $ 37 Acquisitions (including assumed balances) — 24 — 24 Payments (1) — (2) — Change in fair value included in earnings — (3) — (3) Ending Balance $ 53 $ 58 $ 53 $ 58 |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table provides the aggregate notional value of outstanding derivative contracts. June 27, December 31, (In millions) 2020 2019 Notional Amount Interest rate swaps - fair value hedges (described in Note 7) $ 1,000 $ 1,000 Interest rate swaps - cash flow hedges 750 — Cross-currency interest rate swaps - designated as net investment hedges 900 900 Cross-currency interest rate swaps 1,000 — Currency exchange contracts 10,804 2,846 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Fair Value – Assets Fair Value – Liabilities June 27, December 31, June 27, December 31, (In millions) 2020 2019 2020 2019 Derivatives Designated as Hedging Instruments Interest rate swaps (a) $ 30 $ — $ 23 $ 13 Cross-currency interest rate swaps (a) 34 33 — — Derivatives Not Designated as Hedging Instruments Currency exchange contracts (b) 1 4 47 11 Cross-currency interest rate swaps (a) — — 10 — Total Derivatives $ 65 $ 37 $ 80 $ 24 (a) The fair values of the interest rate swaps and cross-currency interest rate swaps are included in the consolidated balance sheet under the caption other assets or other long-term liabilities. (b) 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 June 27, December 31, June 27, December 31, (In millions) 2020 2019 2020 2019 Long-term Obligations $ 1,024 $ 980 $ 30 $ (13) |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | Gain (Loss) Recognized Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions) 2020 2019 2020 2019 Fair Value Hedging Relationships Interest rate swaps Hedged long-term obligations - included in other expense, net $ (7) $ (53) $ (43) $ (81) Derivatives designated as hedging instruments - included in other expense, net 7 54 43 83 Derivatives Designated as Cash Flow Hedges Interest rate swaps Included in unrealized losses on hedging instruments within other comprehensive items (4) — (85) — Amount reclassified from accumulated other comprehensive items to other expense, net (4) (4) (6) (7) Financial Instruments Designated as Net Investment Hedges Foreign currency-denominated debt Included in currency translation adjustment within other comprehensive items (64) (97) 19 59 Cross-currency interest rate swaps Included in currency translation adjustment within other comprehensive items (9) (30) — 7 Included in other expense, net 2 14 7 28 Derivatives Not Designated as Hedging Instruments Currency exchange contracts Included in cost of product revenues (3) (3) — (1) Included in other expense, net (84) (11) (44) 6 Cross-currency interest rate swaps Included in other expense, net — — (10) — |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying value and fair value of the company’s debt obligations are as follows: June 27, 2020 December 31, 2019 Carrying Fair Carrying Fair (In millions) Value Value Value Value Debt Obligations: Senior notes $ 21,304 $ 23,276 $ 17,736 $ 18,650 Other 9 9 16 16 $ 21,313 $ 23,285 $ 17,752 $ 18,666 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 debt obligations are as follows: June 27, 2020 December 31, 2019 Carrying Fair Carrying Fair (In millions) Value Value Value Value Debt Obligations: Senior notes $ 21,304 $ 23,276 $ 17,736 $ 18,650 Other 9 9 16 16 $ 21,313 $ 23,285 $ 17,752 $ 18,666 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 Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Six Months Ended June 27, June 29, (In millions) 2020 2019 Non-cash Investing and Financing Activities Declared but unpaid dividends $ 89 $ 78 Issuance of stock upon vesting of restricted stock units 81 76 |
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 27, December 31, (In millions) 2020 2019 Cash and Cash Equivalents $ 5,818 $ 2,399 Restricted Cash Included in Other Current Assets 18 21 Restricted Cash Included in Other Assets 1 2 Cash, Cash Equivalents and Restricted Cash $ 5,837 $ 2,422 |
Restructuring and Other Costs_2
Restructuring and Other Costs (Income), Net (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs [Table Text Block] | During the second quarter of 2020, the company recorded net restructuring and other costs by segment as follows: (In millions) Cost of Selling, Restructuring Total Life Sciences Solutions $ — $ — $ — $ — Analytical Instruments — — 5 5 Specialty Diagnostics — 42 4 46 Laboratory Products and Services 2 — 1 3 Corporate — — 2 2 $ 2 $ 42 $ 12 $ 56 During the first six months of 2020, the company recorded net restructuring and other costs by segment as follows: (In millions) Cost of Selling, Restructuring Total Life Sciences Solutions $ — $ — $ 1 $ 1 Analytical Instruments — — 19 19 Specialty Diagnostics — 46 6 52 Laboratory Products and Services 4 2 19 25 Corporate — — 5 5 $ 4 $ 48 $ 50 $ 102 |
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 table. Accrued restructuring costs are included in other accrued expenses in the accompanying balance sheet. (In millions) Severance Abandonment Other (a) Total Balance at December 31, 2019 18 $ 10 $ 6 $ 34 Costs incurred in 2020 (c) 29 4 5 38 Reserves reversed (b) (1) — — (1) Payments (24) (4) (5) (33) Balance at June 27, 2020 $ 22 $ 10 $ 6 $ 38 (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. |
Allowance For Doubtful Accounts
Allowance For Doubtful Accounts (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Year | $ 102 | $ 117 |
Provision charged to expense | 30 | 8 |
Accounts Receivable, Allowance for Credit Loss, Writeoff | (18) | (10) |
Acquisitions, currency translation and other | (2) | (2) |
Balance at End of Period | 113 | $ 113 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Year | $ 1 |
Contract Assets and Liabilities
Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 27, 2020 | Jun. 27, 2020 | Dec. 31, 2019 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |||
Current Contract Assets, Net | $ 686 | $ 686 | $ 603 |
Noncurrent Contract Assets, Net | 14 | 14 | 17 |
Current Contract Liabilities | 975 | 975 | 916 |
Noncurrent Contract Liabilities | 624 | 624 | $ 594 |
Revenue recognized that was included in the current contract liability balance at the beginning of the period | $ 226 | $ 631 |
Warranty Obligations (Details)
Warranty Obligations (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Warranty Obligations [Roll Forward] | ||
Balance at Beginning of Year | $ 93 | $ 92 |
Provision charged to expense | 41 | 53 |
Usage | (46) | (55) |
Adjustments to previously provided warranties, net | (1) | (1) |
Currency translation | (1) | 0 |
Balance at End of Period | $ 86 | $ 89 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 1,159 | $ 971 |
Work in Process | 533 | 517 |
Finished Goods | 1,956 | 1,882 |
Inventories | $ 3,648 | $ 3,370 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts Receivable, less Allowances | $ 4,478 | $ 4,349 | |
Retained earnings | $ 23,860 | $ 22,092 | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts Receivable, less Allowances | $ (1) | ||
Retained earnings | $ (1) |
Acquisitions Purchase Price (De
Acquisitions Purchase Price (Details) € / shares in Units, $ in Billions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2021€ / shares | Jun. 30, 2021USD ($) | Jul. 15, 2020€ / shares | Jun. 27, 2020EUR (€) | |
Bridge Loan [Member] | ||||||
Net Assets Acquired [Abstract] | ||||||
Maximum Borrowing Capacity | € | € 6,250,000,000 | |||||
Term Loan | ||||||
Net Assets Acquired [Abstract] | ||||||
Maximum Borrowing Capacity | € | € 3,000,000,000 | |||||
QIAGEN N.V. (Pending Acquisition) [Member] | ||||||
Net Assets Acquired [Abstract] | ||||||
Revenue Reported by Acquired Entity | $ 1.5 | |||||
Forecast [Member] | QIAGEN N.V. (Pending Acquisition) [Member] | ||||||
Purchase Price | ||||||
Business Acquisition, Share Price | € / shares | € 43 | € 39 | ||||
Debt to be Assumed | $ 1.2 | |||||
Estimated Total Purchase Price | $ 12.7 |
Dispositions (Details)
Dispositions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 28, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (Loss) on Disposition of Business | $ 0 | $ 505 | |||
Revenues | $ 6,917 | $ 6,316 | $ 13,147 | $ 12,441 | |
Anatomical Pathology business [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ 1,130 | ||||
Gain (Loss) on Disposition of Business | $ 505 | ||||
Revenues | $ 115 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 6,917 | $ 6,316 | $ 13,147 | $ 12,441 | |
North America [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | 3,544 | 3,230 | 6,831 | 6,289 |
Europe [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | 1,783 | 1,536 | 3,432 | 3,055 |
Asia Pacific [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | 1,329 | 1,368 | 2,447 | 2,731 |
Other Regions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | 261 | 182 | 437 | 366 |
Consumables [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 3,879 | 3,268 | 7,258 | 6,498 | |
Instruments [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,371 | 1,559 | 2,622 | 3,049 | |
Service [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 1,667 | $ 1,489 | $ 3,267 | $ 2,894 | |
[1] | Revenues are attributed to regions based on customer location. |
Revenue Performance Obligations
Revenue Performance Obligations (Details) $ in Millions | Jun. 27, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 9,990 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-27 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 69.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 6,917 | $ 6,316 | $ 13,147 | $ 12,441 | |
Cost of revenues charges, net | (2) | (4) | |||
Selling, general and administrative charges, net | (42) | (48) | |||
Restructuring and other (costs) income, net | (12) | 484 | (50) | 473 | |
Amortization of acquisition-related intangible assets | (842) | (851) | |||
Consolidated operating income | 1,391 | 1,496 | 2,297 | 2,416 | |
Interest Income | 8 | 60 | 44 | 127 | |
Interest Expense | (137) | (181) | (263) | (370) | |
Other (Expense) Income, Net | (9) | 18 | 3 | 37 | |
Income before income taxes | 1,253 | 1,393 | 2,081 | 2,210 | |
Life Sciences Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring and other (costs) income, net | (1) | ||||
Analytical Instruments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring and other (costs) income, net | (5) | (19) | |||
Specialty Diagnostics [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Selling, general and administrative charges, net | (42) | (46) | |||
Restructuring and other (costs) income, net | (4) | (6) | |||
Laboratory Products and Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of revenues charges, net | (2) | (4) | |||
Selling, general and administrative charges, net | (2) | ||||
Restructuring and other (costs) income, net | (1) | (19) | |||
Total Reportable Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Consolidated operating income | [1] | 1,864 | 1,482 | 3,241 | 2,852 |
Total Reportable Segments [Member] | Life Sciences Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,602 | 1,710 | 4,376 | 3,317 | |
Consolidated operating income | [1] | 1,234 | 609 | 1,909 | 1,170 |
Total Reportable Segments [Member] | Analytical Instruments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,051 | 1,324 | 2,152 | 2,646 | |
Consolidated operating income | [1] | 135 | 286 | 306 | 568 |
Total Reportable Segments [Member] | Specialty Diagnostics [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 988 | 943 | 1,946 | 1,900 | |
Consolidated operating income | [1] | 214 | 242 | 450 | 484 |
Total Reportable Segments [Member] | Laboratory Products and Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,787 | 2,633 | 5,517 | 5,146 | |
Consolidated operating income | [1] | 281 | 345 | 576 | 630 |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (511) | (294) | (844) | (568) | |
Segment Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of revenues charges, net | (2) | (5) | (4) | (11) | |
Selling, general and administrative charges, net | (42) | (36) | (48) | (47) | |
Restructuring and other (costs) income, net | (12) | 484 | (50) | 473 | |
Amortization of acquisition-related intangible assets | $ (417) | $ (429) | $ (842) | $ (851) | |
[1] | Represents operating income before certain charges to cost of revenues and selling, general and administrative expenses; restructuring and other costs/income, net; and amortization of acquisition-related intangibles. |
Geographical Information (Detai
Geographical Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 6,917 | $ 6,316 | $ 13,147 | $ 12,441 | |
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [1] | 3,414 | 3,103 | 6,553 | 6,021 |
China | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [1] | 594 | 724 | 1,058 | 1,378 |
All Other Countries | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [1] | $ 2,909 | $ 2,489 | $ 5,536 | $ 5,042 |
[1] | Revenues are attributed to countries based on customer location. |
Income Taxes Rate Reconciliatio
Income Taxes Rate Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Statutory Federal Income Tax Rate | 21.00% | 21.00% | ||
Provision for Income Taxes at Statutory Rate | $ 437 | $ 464 | ||
Foreign rate differential | (110) | (184) | ||
Foreign exchange loss on inter-company debt refinancing | (62) | |||
Income tax credits | (226) | (137) | ||
Global intangible low-taxed income | 104 | 134 | ||
Foreign-derived intangible income | (29) | (24) | ||
Withholding taxes | 9 | 31 | ||
Transition tax and other impacts of U.S. tax reform | (20) | |||
Provision for tax reserves, net | 43 | |||
Excess tax benefits from stock options and restricted stock units | (50) | (50) | ||
Basis difference on disposal of business | 64 | |||
Other, net | 2 | 17 | ||
Provision for Income Taxes | $ 97 | $ 274 | $ 137 | $ 276 |
US foreign tax credits generated by repatriation of foreign earnings | $ 96 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) $ in Millions | 6 Months Ended |
Jun. 27, 2020USD ($) | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |
Balance at Beginning of Year | $ 1,552 |
Additions for tax positions of current year | 4 |
Settlements | (7) |
Balance at End of Period | $ 1,549 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income | $ 1,156 | $ 1,119 | $ 1,944 | $ 1,934 |
Basic Weighted Average Shares | 395 | 400 | 396 | 400 |
Effect of Stock Options and Restricted Units | 3 | 3 | 3 | 3 |
Diluted Weighted Average Shares | 398 | 403 | 399 | 403 |
Basic Earnings Per Share (in dollars per share) | $ 2.92 | $ 2.80 | $ 4.91 | $ 4.84 |
Diluted Earnings Per Share (in dollars per share) | $ 2.90 | $ 2.77 | $ 4.87 | $ 4.80 |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Stock Options Excluded From Computation Of Earnings Per Share | 1 | 1 | 1 | 1 |
Debt Outstanding Debt (Details)
Debt Outstanding Debt (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 27, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Total Borrowings at Par Value | $ 21,505 | $ 17,960 |
Fair Value Hedge Accounting Adjustments | 30 | (13) |
Unamortized Discount, Net | (101) | (94) |
Unamortized Debt Issuance Costs | (121) | (101) |
Total Borrowings at Carrying Value | 21,313 | 17,752 |
Less: Short-term Obligations and Current Maturities | 675 | 676 |
Long-term Obligations | 20,638 | 17,076 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total Borrowings at Carrying Value | $ 21,304 | 17,736 |
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 8/7/2020 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 2 years | |
Debt Instrument, Maturity Date | Aug. 7, 2020 | |
Effective Interest Rate | 0.04% | |
Total Borrowings at Par Value | $ 673 | 673 |
Senior Notes [Member] | 2.15% 7-Year Senior Notes, Due 7/21/2022 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 2.15% | |
Debt Instrument, Term | 7 years | |
Debt Instrument, Maturity Date | Jul. 21, 2022 | |
Effective Interest Rate | 2.27% | |
Total Borrowings at Par Value | $ 561 | 561 |
Senior Notes [Member] | 3.00% 7-Year Senior Notes, Due 4/15/2023 | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 3.00% | |
Debt Instrument, Term | 7 years | |
Debt Instrument, Maturity Date | Apr. 15, 2023 | |
Effective Interest Rate | 1.87% | |
Total Borrowings at Par Value | $ 1,000 | 1,000 |
Senior Notes [Member] | 4.15% 10-Year Senior Notes, Due 2/1/2024 | ||
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) | ||
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 | $ 1,122 | 1,121 |
Senior Notes [Member] | 0.125% 5.5-Year Senior Notes, Due 3/1/2025 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 0.125% | |
Debt Instrument, Term | 5 years 6 months | |
Debt Instrument, Maturity Date | Mar. 1, 2025 | |
Effective Interest Rate | 0.41% | |
Total Borrowings at Par Value | $ 898 | 897 |
Senior Notes [Member] | 4.133% 5-Year Senior Notes, Due 3/25/2025 | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 4.133% | |
Debt Instrument, Term | 5 years | |
Debt Instrument, Maturity Date | Mar. 25, 2025 | |
Effective Interest Rate | 4.32% | |
Total Borrowings at Par Value | $ 1,100 | |
Senior Notes [Member] | 2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) | ||
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 | $ 719 | 717 |
Senior Notes [Member] | 3.65% 10-Year Senior Notes, Due 12/15/2025 | ||
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) | ||
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 | $ 785 | 785 |
Senior Notes [Member] | 2.95% 10-Year Senior Notes, Due 9/19/2026 | ||
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) | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 1.45% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | Mar. 16, 2027 | |
Effective Interest Rate | 1.65% | |
Total Borrowings at Par Value | $ 561 | 561 |
Senior Notes [Member] | 1.75% 7-Year Senior Notes, Due 4/15/2027 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 1.75% | |
Debt Instrument, Term | 7 years | |
Debt Instrument, Maturity Date | Apr. 15, 2027 | |
Effective Interest Rate | 1.97% | |
Total Borrowings at Par Value | $ 673 | |
Senior Notes [Member] | 3.20% 10-Year Senior Notes, Due 8/15/2027 | ||
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] | 0.50% 8.5-Year Senior Notes, Due 3/1/2028 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 0.50% | |
Debt Instrument, Term | 8 years 6 months | |
Debt Instrument, Maturity Date | Mar. 1, 2028 | |
Effective Interest Rate | 0.77% | |
Total Borrowings at Par Value | $ 898 | 897 |
Senior Notes [Member] | 1.375% 12-Year Senior Notes, Due 9/12/2028 (euro-denominated) | ||
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 | $ 673 | 673 |
Senior Notes [Member] | 1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) | ||
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 | $ 785 | 785 |
Senior Notes [Member] | 2.60% 10-Year Senior Notes, Due 10/1/2029 | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 2.60% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | Oct. 1, 2029 | |
Effective Interest Rate | 2.74% | |
Total Borrowings at Par Value | $ 900 | 900 |
Senior Notes [Member] | 4.497% 10-Year Senior Notes, Due 3/25/2030 | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 4.497% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | Mar. 25, 2030 | |
Effective Interest Rate | 5.31% | |
Total Borrowings at Par Value | $ 1,100 | |
Senior Notes [Member] | 0.875% 12-Year Senior Notes, Due 10/1/2031 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 0.875% | |
Debt Instrument, Term | 12 years | |
Debt Instrument, Maturity Date | Oct. 1, 2031 | |
Effective Interest Rate | 1.13% | |
Total Borrowings at Par Value | $ 1,009 | 1,009 |
Senior Notes [Member] | 2.375% 12-Year Senior Notes, Due 4/15/2032 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 2.375% | |
Debt Instrument, Term | 12 years | |
Debt Instrument, Maturity Date | Apr. 15, 2032 | |
Effective Interest Rate | 2.55% | |
Total Borrowings at Par Value | $ 673 | |
Senior Notes [Member] | 2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) | ||
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 | $ 785 | 785 |
Senior Notes [Member] | 1.50% 20-Year Senior Notes, Due 10/1/2039 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 1.50% | |
Debt Instrument, Term | 20 years | |
Debt Instrument, Maturity Date | Oct. 1, 2039 | |
Effective Interest Rate | 1.73% | |
Total Borrowings at Par Value | $ 1,009 | 1,009 |
Senior Notes [Member] | 5.30% 30-Year Senior Notes, Due 2/1/2044 | ||
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 | ||
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 |
Senior Notes [Member] | 1.875% 30-Year Senior Notes, Due 10/1/2049 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 1.875% | |
Debt Instrument, Term | 30 years | |
Debt Instrument, Maturity Date | Oct. 1, 2049 | |
Effective Interest Rate | 1.98% | |
Total Borrowings at Par Value | $ 1,122 | 1,121 |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total Borrowings at Par Value | 9 | 16 |
Total Borrowings at Carrying Value | $ 9 | $ 16 |
Debt Short-term Financing (Deta
Debt Short-term Financing (Details) - 6 months ended Jun. 27, 2020 | USD ($) | EUR (€) | USD ($) |
Short-term Financing [Line Items] | |||
Payments of Financing Costs | $ 49,000,000 | ||
Expenses Associated with Short-term Financing Commitments | $ 44,000,000 | ||
Revolving Credit Facility [Member] | |||
Short-term Financing [Line Items] | |||
Debt, Covenant, Maximum Consolidated Total Leverage Ratio of Debt to EBITDA | 5 | ||
Debt, Covenant, Maximum Consolidated Total Leverage Ratio of Debt to EBITDA, Third and Fourth Quarter After Acquisition | 4 | ||
Debt, Covenant, Maximum Consolidated Total Leverage Ratio of Debt to EBITDA, Beginning in the Fifth Quarter After Acquisition | 3.5 | ||
Debt, Covenant, Minimum Consolidated Interest Coverage Ratio | 3 | ||
Maximum Borrowing Capacity | $ 2,500,000,000 | ||
Letters of Credit Outstanding, Amount | 68,000,000 | ||
Line of Credit Facility, Amount Outstanding | $ 0 | ||
Bridge Loan [Member] | |||
Short-term Financing [Line Items] | |||
Maximum Borrowing Capacity | € | € 6,250,000,000 | ||
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 | ||
Term Loan | |||
Short-term Financing [Line Items] | |||
Maximum Borrowing Capacity | € | € 3,000,000,000 |
Debt, Interest Rate Swap Arrang
Debt, Interest Rate Swap Arrangements (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 | |
Interest Rate Swaps [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Swap, Pay Rate at Period End | 1.95% | ||
Cross Currency Interest Rate Contract [Member] | |||
Debt Instrument [Line Items] | |||
Notional Amount Of Derivatives | $ 1,000 | ||
Interest Rate Swap, Pay Rate at Period End | 1.34% | ||
Cross Currency Interest Rate Contract [Member] | Net Investment Hedging [Member] | |||
Debt Instrument [Line Items] | |||
Notional Amount Of Derivatives | $ 900 | $ 900 | |
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] | 1.9488% | |
Interest Rate Swap, Fixed Receive Rate | 3.00% | ||
[1] | The payments on $900 million 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 27, 2020 from 1.95% to a weighted average of 1.34%. |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended |
Jun. 27, 2020USD ($) | |
Accrual for Environmental Loss Contingencies Disclosure [Abstract] | |
Accrual for Environmental Loss Contingencies, Net | $ 71 |
Prepayment For Lease, Leases Not Yet Commenced | 50 |
Lessee, Lease Liability Payments Due, Leases Not Yet Commenced | $ 555 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ 28,559 | $ 27,693 | $ 29,675 | $ 27,586 |
Other comprehensive items before reclassifications | (320) | |||
Amounts reclassified from accumulated other comprehensive items | 10 | |||
Total other comprehensive items | 99 | (121) | (310) | (132) |
Balance | 29,875 | 28,729 | 29,875 | 28,729 |
Currency Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (2,320) | |||
Other comprehensive items before reclassifications | (254) | |||
Amounts reclassified from accumulated other comprehensive items | 0 | |||
Total other comprehensive items | (254) | |||
Balance | (2,574) | (2,574) | ||
Unrealized Losses on Hedging Instruments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (71) | |||
Other comprehensive items before reclassifications | (65) | |||
Amounts reclassified from accumulated other comprehensive items | 4 | |||
Total other comprehensive items | (61) | |||
Balance | (132) | (132) | ||
Pension and Other Postretirement Benefit Liability Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (288) | |||
Other comprehensive items before reclassifications | (1) | |||
Amounts reclassified from accumulated other comprehensive items | 6 | |||
Total other comprehensive items | 5 | |||
Balance | (283) | (283) | ||
Accumulated Other Comprehensive Items [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (3,088) | (2,509) | (2,679) | (2,498) |
Total other comprehensive items | 99 | (121) | (310) | (132) |
Balance | $ (2,989) | $ (2,630) | $ (2,989) | $ (2,630) |
Fair Value Measurements, Assets
Fair Value Measurements, Assets and Liabilities (Details) - Fair Value, Recurring [Member] - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 |
Assets [Abstract] | ||
Cash equivalents | $ 4,307 | $ 1,280 |
Investments in common stock, mutual funds and other similar instruments | 20 | 19 |
Warrants | 8 | 6 |
Insurance contracts | 132 | 131 |
Derivative contracts | 65 | 37 |
Total Assets | 4,532 | 1,473 |
Liabilities [Abstract] | ||
Derivative contracts | 80 | 24 |
Contingent consideration | 53 | 55 |
Total Liabilities | 133 | 79 |
Quoted Prices in Active Markets (Level I) [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 4,307 | 1,280 |
Investments in common stock, mutual funds and other similar instruments | 20 | 19 |
Total Assets | 4,327 | 1,299 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Warrants | 8 | 6 |
Insurance contracts | 132 | 131 |
Derivative contracts | 65 | 37 |
Total Assets | 205 | 174 |
Liabilities [Abstract] | ||
Derivative contracts | 80 | 24 |
Total Liabilities | 80 | 24 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Liabilities [Abstract] | ||
Contingent consideration | 53 | 55 |
Total Liabilities | $ 53 | $ 55 |
Fair Value Measurements and F_3
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | $ 54 | $ 37 | $ 55 | $ 37 |
Acquisitions (including assumed balances) | 24 | 24 | ||
Payments | (1) | (2) | ||
Change in fair value included in earnings | (3) | (3) | ||
Ending Balance | $ 53 | $ 58 | $ 53 | $ 58 |
Fair Value Measurements, Deriva
Fair Value Measurements, Derivative Assets & Liabilities (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Cumulative Amount of Fair Value Hedging Adjustment - Increase (Decrease) Included in Carrying Amount of Liability | $ 30 | $ (13) |
Long-term Obligations [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedged Liability, Fair Value Hedge | 1,024 | 980 |
Cumulative Amount of Fair Value Hedging Adjustment - Increase (Decrease) Included in Carrying Amount of Liability | 30 | (13) |
Interest Rate Swaps [Member] | Derivatives Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 30 | |
Interest Rate Swaps [Member] | Derivatives Designated as Hedging Instrument [Member] | Other Long-term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 23 | 13 |
Interest Rate Swaps [Member] | Fair Value Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount Of Derivatives | 1,000 | 1,000 |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount Of Derivatives | 750 | |
Cross Currency Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount Of Derivatives | 1,000 | |
Cross Currency Interest Rate Contract [Member] | Derivatives Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 34 | 33 |
Cross Currency Interest Rate Contract [Member] | Derivatives Not Designated as Hedging Instrument [Member] | Other Long-term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 10 | |
Cross Currency Interest Rate Contract [Member] | Net Investment Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount Of Derivatives | 900 | 900 |
Currency Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount Of Derivatives | 10,804 | 2,846 |
Currency Exchange Contracts [Member] | Derivatives Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1 | 4 |
Currency Exchange Contracts [Member] | Derivatives Not Designated as Hedging Instrument [Member] | Other Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 47 | 11 |
Fair Value, Recurring [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 65 | 37 |
Derivative Liabilities | $ 80 | $ 24 |
Fair Value Measurements, Deri_2
Fair Value Measurements, Derivative Instruments, Gains & Losses (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2020 | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Cross Currency Interest Rate Contract [Member] | Other Expense, Net [Member] | Derivatives Not Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) on Derivative, Net | $ (10) | ||||
Currency Exchange Contracts [Member] | Cost of Product Revenues [Member] | Derivatives Not Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) on Derivative, Net | $ (3) | $ (3) | $ (1) | ||
Currency Exchange Contracts [Member] | Other Expense, Net [Member] | Derivatives Not Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) on Derivative, Net | (84) | (11) | (44) | 6 | |
Fair Value Hedging [Member] | Interest Rate Swaps [Member] | Other Expense, Net [Member] | Derivatives Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Change in Unrealized Gain (Loss) on Hedged long-term obligations in Fair Value Hedge | (7) | (53) | (43) | (81) | |
Gain (Loss) on Derivative, Net | 7 | 54 | 43 | 83 | |
Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | Derivatives Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) in OCI on Cash Flow Hedge | (4) | (85) | |||
Payments for Hedge, Financing Activities | 62 | ||||
Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | Derivatives Designated as Hedging Instrument [Member] | Subsequent Event [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Payments for Hedge, Financing Activities | $ 24 | ||||
Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | Other Expense, Net [Member] | Derivatives Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) on Cash Flow Hedge Reclassified from AOCI | (4) | (4) | (6) | (7) | |
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 | (64) | (97) | 19 | 59 | |
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 | (9) | (30) | 7 | ||
Net Investment Hedging [Member] | Cross Currency Interest Rate Contract [Member] | Other Expense, Net [Member] | Derivatives Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) on Derivative, Net | $ 2 | $ 14 | $ 7 | $ 28 |
Fair Value of Other Instruments
Fair Value of Other Instruments (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 23,285 | $ 18,666 |
Long-term Debt | 21,313 | 17,752 |
Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 23,276 | 18,650 |
Long-term Debt | 21,304 | 17,736 |
Other Debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 9 | 16 |
Long-term Debt | $ 9 | $ 16 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Non-cash Investing and Financing Activities [Abstract] | ||||
Declared but unpaid dividends | $ 89 | $ 78 | ||
Issuance of stock upon vesting of restricted stock units | 81 | 76 | ||
Cash and Cash Equivalents | 5,818 | $ 2,399 | ||
Restricted Cash Included in Other Current Assets | 18 | 21 | ||
Restricted Cash Included in Other Assets | 1 | 2 | ||
Cash, Cash Equivalents and Restricted Cash | $ 5,837 | $ 2,314 | $ 2,422 | $ 2,117 |
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 Costs_3
Restructuring and Other Costs (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Jul. 31, 2020 | ||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Percentage of Total Workforce Eliminated less than | 1.00% | |||||
Cost of Revenues | $ 2 | $ 4 | ||||
Selling, General and Administrative Expenses | 42 | 48 | ||||
Restructuring and other costs (income), net | 12 | $ (484) | 50 | $ (473) | ||
Total Restructuring and Other Costs (Income), Net | 56 | 102 | ||||
Restructuring and Related Costs, Cash Costs | [1] | 38 | ||||
Restructuring and Related Costs, Other Costs (Income), Net | 13 | |||||
Loss (Gain) on Divestiture of Businesses | 0 | $ (505) | ||||
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 | 4 | |||||
Other Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Costs, Cash Costs | [2] | 5 | ||||
Life Sciences Solutions [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other costs (income), net | 1 | |||||
Total Restructuring and Other Costs (Income), Net | 1 | |||||
Analytical Instruments [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other costs (income), net | 5 | 19 | ||||
Total Restructuring and Other Costs (Income), Net | 5 | 19 | ||||
Specialty Diagnostics [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Selling, General and Administrative Expenses | 42 | 46 | ||||
Restructuring and other costs (income), net | 4 | 6 | ||||
Total Restructuring and Other Costs (Income), Net | 46 | 52 | ||||
Laboratory Products and Services [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cost of Revenues | 2 | 4 | ||||
Selling, General and Administrative Expenses | 2 | |||||
Restructuring and other costs (income), net | 1 | 19 | ||||
Total Restructuring and Other Costs (Income), Net | 3 | 25 | ||||
Corporate [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other costs (income), net | 2 | 5 | ||||
Total Restructuring and Other Costs (Income), Net | $ 2 | $ 5 | ||||
Forecast [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Identified Future Restructuring Costs | $ 60 | |||||
[1] | Excludes $13 million of charges for fixed asset writedowns and costs associated with environmental remediation at abandoned / previously owned facilities. | |||||
[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. 27, 2020USD ($) | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 34 | |
Costs incurred | 38 | [1] |
Reserves reversed | (1) | [2] |
Payments | (33) | |
Ending balance | 38 | |
Restructuring and Related Costs, Other Costs (Income), Net | $ 13 | |
Restructuring Reserve, Expected Final Year of Payments | 2020 | |
Severance [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 18 | |
Costs incurred | 29 | |
Reserves reversed | (1) | [2] |
Payments | (24) | |
Ending balance | 22 | |
Abandonment of Excess Facilities [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 10 | |
Costs incurred | 4 | |
Payments | (4) | |
Ending balance | 10 | |
Other Restructuring [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 6 | [3] |
Costs incurred | 5 | [3] |
Payments | (5) | [3] |
Ending balance | $ 6 | [3] |
[1] | Excludes $13 million of charges for fixed asset writedowns and costs associated with environmental remediation at abandoned / previously owned facilities. | |
[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. |