Exhibit 99
THERMO ELECTRON LOGO
FOR IMMEDIATE RELEASE
Contact Information:
J. Timothy Corcoran
Phone: 781-622-1111
E-mail: tim.corcoran@thermo.com
Website: www.thermo.com
Thermo Electron Reports Second Quarter 2003 Results
WALTHAM, Mass. (July 22, 2003) - Thermo Electron Corporation (NYSE:TMO) today
reported GAAP diluted earnings per share (EPS) of $.32 for the second quarter of
2003, compared with $.38 in the year-ago period. Earnings in 2002 included
significantly higher gains from the sale of securities than in 2003 and gains
from divestitures. Second quarter revenues increased 1 percent to $516.4 million
in 2003, from $509.1 million in 2002. After eliminating currency effects (which
increased revenues by 7 percent) and the impact of acquisitions and
divestitures, organic revenues declined 5 percent. GAAP operating margin for the
quarter improved to 9.3 percent in 2003, from 6.9 percent a year ago.
Adjusted EPS increased 8 percent to $.26 in the second quarter of 2003, versus
$.24 for the same period in 2002. Adjusted operating margin for the second
quarter increased to 10.8 percent in 2003, compared with 10.6 percent a year
ago. Adjusted EPS and adjusted operating margin exclude restructuring and other
costs/income and amortization of acquisition-related intangible assets. Adjusted
EPS also excludes income from the sale of shares of FLIR Systems and Thoratec,
gains/losses on the early retirement of debt, gains/losses on disposal of
discontinued operations, tax provisions/benefits related to the previous items,
and benefit from tax credit carryforwards. For a reconciliation of these
non-GAAP financial measures to the most directly comparable GAAP financial
measures, see the accompanying table entitled "Consolidated Statement of
Income."
"Our financial performance this quarter exceeded our expectations, evidenced by
stronger operating margins and the increase in adjusted EPS," said Marijn E.
Dekkers, president and chief executive officer of Thermo Electron. "In addition,
operating cash flow from continuing operations was $53 million, up significantly
from $12 million a year ago and $17 million in the first quarter. In spite of
the challenges still posed by the global economy, and particularly the weak
industrial capital spending environment, we continue to deliver EPS growth.
"Now that we are acting as an integrated company - in the way we work internally
and the way we deal with customers - we are pushing forward with a number of key
initiatives designed to drive top-line growth in the future. We are focusing our
R&D, commercial activities, and service offerings on creating total solutions
for the laboratory and the production line. One result of this approach was our
strong showing at the recent ASMS (American Society of Mass Spectrometry)
conference, where we reinforced our leading position in mass spectrometry
analysis with a full line of systems, software, and consumables."
Mr. Dekkers added, "By leveraging the strengths of `One Thermo' and driving
productivity improvement company-wide, we expect to continue to achieve EPS
growth. Our goal is to report $.25 to $.27 in adjusted EPS for the third quarter
of 2003, and, as we stated previously, $1.07 to $1.12 for the full year." This
guidance excludes $.01 of expense per quarter from the amortization of
acquisition-related intangible assets, and also excludes restructuring and other
costs/income and gains and losses from the sale of businesses, real estate, and
our remaining interest in Thoratec, as well as unusual items we may have in the
future.
Sector Results
Please note: As mentioned in our last earnings release, in the first quarter of
2003 we realigned several businesses among the sectors and began to allocate to
the sectors some costs previously reported as corporate expenses. Results for
2002 have been restated to reflect the sector realignment and cost reallocation.
Organic revenue growth figures exclude the effects of acquisitions,
divestitures, and currency translation.
Life and Laboratory Sciences
Second quarter 2003 revenues for the Life and Laboratory Sciences sector
increased to $314 million, from $290 million in 2002; organic revenues were up 1
percent. Organic growth was driven primarily by sales of our advanced mass
spectrometry systems, laboratory informatics software, and clinical diagnostics
products for rapid point-of-care testing, offset by weak sales of equipment used
for sample preparation and storage. GAAP operating margin was 14.0 percent in
the second quarter of 2003, versus 13.9 percent a year ago. Adjusted operating
margin increased to 15.8 percent for the quarter, compared with 15.7 percent in
2002.
Our leadership in mass spectrometry analysis was underscored at the recent ASMS
conference in Montreal, where we introduced our standalone Finnigan LTQ(TM) ion
trap system featuring a linear design that offers significantly increased levels
of performance. This newest addition to our family of ion trap mass
spectrometers creates a three-tier portfolio of technologies for applications
ranging from routine high performance liquid chromatography (HPLC) to the most
demanding analysis of complex biological samples for proteome research and drug
discovery. We also recently consolidated a number of small offices in Japan into
a new, larger facility in Yokohama, which features a customer demonstration
center that will allow us to better serve the world's second largest life and
laboratory sciences market.
Measurement and Control
Revenues in the Measurement and Control sector were $152 million in the second
quarter of 2003, versus $154 million in 2002; organic revenues declined 9
percent. In spite of ongoing weakness in many process markets we serve, we
continued to record strong sales of products used for homeland security,
particularly those for monitoring nuclear radiation. GAAP operating margin was
8.8 percent in both periods. Adjusted operating margin was 9.1 percent in 2003,
compared with 9.7 percent a year ago, due to the lower organic revenues.
Optical Technologies
In the Optical Technologies sector, which now consists of our Spectra-Physics
lasers and photonics businesses following the first-quarter realignment,
revenues were $53 million for the second quarter of 2003, versus $68 million in
2002. Organic revenues declined 23 percent as a result of the prolonged downturn
in microelectronics and industrial end-markets served by this sector. GAAP
operating margin was negative 3.5 percent for the 2003 period, versus negative
17.0 percent in 2002, when the sector incurred significant restructuring
charges. Adjusted operating margin for the sector was negative 2.4 percent in
2003, compared with negative 0.4 percent last year.
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally
accepted accounting principles (GAAP), we use the non-GAAP financial measures of
adjusted EPS and adjusted operating margin, which exclude restructuring and
other costs/income and amortization of acquisition-related intangible assets.
Adjusted EPS also excludes certain other gains and losses, tax
provisions/benefits related to the previous items, and benefit from tax credit
carryforwards. We exclude these items because they are outside of our normal
operations and, in certain cases, are difficult to forecast accurately for
future periods. We believe that the inclusion of such non-GAAP measures helps
investors to gain a better understanding of our core operating results and
future prospects, consistent with how management measures and forecasts the
company's performance, especially when comparing such results to previous
periods or forecasts.
Specifically:
o We exclude costs and tax effects associated with restructuring
activities, such as reducing overhead and consolidating facilities, in
connection with the final phase of our overall reorganization, which
we expect will be substantially complete in 2004. We believe that the
costs related to these restructuring activities are not indicative of
our normal operating costs.
o We exclude the expense and tax effects associated with the
amortization of acquisition-related intangible assets because a
significant portion of the purchase price for acquisitions may be
allocated to intangible assets that have lives of 5 to 10 years.
Exclusion of the amortization expense allows comparisons of operating
results that are consistent over time.
o We also exclude certain gains/losses and related tax effects, as well
as benefit from tax credit carryforwards, that are either isolated or
cannot be expected to occur again with any regularity or
predictability, such as those arising from the sale of a business or
real estate, the sale of our remaining equity interests in Thoratec
and FLIR Systems, and the early retirement of debt, which we believe
are not indicative of our normal operating gains and losses.
Thermo's management uses these non-GAAP measures, in addition to GAAP
financial measures, as the basis for measuring the company's core operating
performance and comparing such performance to that of prior periods and to
the performance of our competitors. Such measures are also used by
management in their financial and operating decision-making and for
compensation purposes.
The non-GAAP financial measures of Thermo's results of operations included
in this press release are not meant to be considered superior to or a
substitute for Thermo's results of operations prepared in accordance with
GAAP. Reconciliations of such non-GAAP financial measures to the most
directly comparable GAAP financial measures are set forth in the
accompanying tables. Thermo's earnings guidance, however, is only provided
on an adjusted basis. It is not feasible to provide GAAP EPS guidance
because the items excluded, other than the amortization expense, are
difficult to predict and estimate and are primarily dependent on future
events, such as decisions concerning the location and timing of facility
consolidations, and the timing of and proceeds from the sale of our
remaining equity interest in Thoratec.
Conference Call
Thermo Electron will hold its earnings conference call on Wednesday, July 23,
2003, at 11 a.m. Eastern time. To listen, dial 888-872-9028 within the U.S., or
973-633-6740 outside the U.S. You can also listen to the call live on the Web by
visiting www.thermo.com and clicking on "Investors." An audio archive of the
call will be available in that section of our Web site until August 22, 2003.
Also in that section, you will find this press release and the accompanying
reconciliation of non-GAAP financial measures under the heading "News & Events."
About Thermo Electron
A world leader in high-tech instruments, Thermo Electron Corporation helps life
science, laboratory, and industrial customers advance scientific knowledge,
enable drug discovery, improve manufacturing processes, and protect people and
the environment with instruments, scientific equipment, and integrated software
solutions. Based in Waltham, Massachusetts, Thermo Electron has revenues of more
than $2 billion, and employs approximately 11,000 people in 30 countries
worldwide. For more information, visit www.thermo.com.
The following constitutes a "Safe Harbor" statement under the Private Securities
Litigation Reform Act of 1995. This press release contains forward-looking
statements that involve a number of risks and uncertainties. Important factors
that could cause actual results to differ materially from those indicated by
such forward-looking statements are set forth under the heading "Forward-Looking
Statements" in our Quarterly Report on Form 10-Q for the quarter ended March 29,
2003. These include risks and uncertainties relating to the need to develop new
products and adapt to significant technological change, dependence on customers
that operate in cyclical industries, general worldwide economic slowdown and
related uncertainties, the effect of changes in governmental regulations,
dependence on customers' capital spending policies and government funding
policies, use and protection of intellectual property, retention of contingent
liabilities from businesses we sold, integration and consolidation of our
instrument businesses, realization of potential future savings from new sourcing
initiatives, implementation of our new branding strategy, implementation of
strategies for improving internal growth, the effect of exchange rate
fluctuations on international operations, and potential impairment of goodwill.
We undertake no obligation to publicly update any forward-looking statement,
whether as a result of new information, future events, or otherwise.
Consolidated Statement of Income (unaudited)
Three Months Ended
-------------------------------------------------------------------
June 28, 2003 June 29, 2002
------------------------------ ------------------------------
(In thousands except per share amounts) Reported (a) Adjusted (b) Reported (a) Adjusted (b)
- ------------------------------------------------------------------------------------------------------------------------------------
Revenues $ 516,405 $ 516,405 $ 509,113 $ 509,113
------------ ------------ ------------ ------------
Costs and Operating Expenses:
Cost of revenues (c) 283,260 283,260 279,325 277,774
Selling, general, and administrative expenses 140,319 140,319 137,642 137,642
Amortization of acquisition-related intangible assets 2,540 - 1,729 -
Research and development expenses 37,132 37,132 39,754 39,754
Restructuring and other costs, net (d) 4,872 - 15,487 -
----------- ------------ ------------ -------------
468,123 460,711 473,937 455,170
----------- ------------ ------------ -------------
Operating Income 48,282 55,694 35,176 53,943
Interest Income 7,077 7,077 12,621 12,621
Interest Expense (5,433) (5,433) (10,216) (10,216)
Other Income, Net (e) 10,551 599 35,925 4,257
----------- ------------ ------------ -------------
Income from Continuing Operations Before Income Taxes 60,477 57,937 73,506 60,605
Provision for Income Taxes (f) (7,338) (14,853) (23,989) (18,999)
----------- ------------ ------------ -------------
Income from Continuing Operations 53,139 43,084 49,517 41,606
Gain on Disposal of Discontinued Operations (represents tax benefit) - - 19,000 -
----------- ------------ ------------ -------------
Net Income $ 53,139 $ 43,084 $ 68,517 $ 41,606
=========== ============ ============ =============
Earnings per Share from Continuing Operations:
Basic $ .33 $ .29
=========== ============
Diluted $ .32 $ .28
=========== ============
Earnings per Share (g):
Basic $ .33 $ .40
=========== ============
Diluted $ .32 $ .26 $ .38 $ .24
=========== ============ ============ =============
Weighted Average Shares:
Basic 162,048 171,122
=========== ============
Diluted (h) 172,459 172,459 186,740 182,423
=========== ============ ============ =============
(a) Reported results were determined in accordance with U.S. generally accepted accounting principles (GAAP).
(b) Adjusted results exclude inventory charges in 2002 (note c), amortization of acquisition-related intangible assets,
restructuring and other costs/income (note d), certain other income/expense (note e), the tax consequences of these
items and other tax benefit (note f) and, in 2002, gain on disposal of discontinued operations.
(c) Reported results in 2002 include charges of $1,159,000 for the abandonment of product lines and $392,000 of charges for
the sale of inventories revalued at the date of acquisition.
(d) Reported results in 2003 include restructuring and other items consisting principally of severance; abandoned facility
and other expenses of real estate consolidation; net gains on the sale of a product line and property; and legal/advisory
fees associated with a reorganization of the company's non-U.S. subsidiary structure. Reported results in 2002
include restructuring and other items consisting principally of severance; abandoned facility and other expenses
of real estate consolidation; cancellation penalties on capital equipment purchases; impairment of abandoned assets;
and legal/advisory fees associated with a reorganization of the company's non-U.S. subsidiary structure.
(e) Reported results include $9,952,000 and $31,627,000 of gains from the sale of shares of FLIR Systems, Inc. in 2003 and 2002,
respectively. Reported results also include gains of $41,000 in 2002 on the early retirement of debt. These items have been
excluded from adjusted results.
(f) Adjusted provision for income taxes excludes $1,511,000 and $4,990,000 of incremental tax provision in 2003 and 2002,
respectively, for the items in (b) through (e) and in 2003 excludes $9,026,000 of tax benefit from the reversal of a
valuation allowance due to expected utilization of foreign tax credit carryforwards.
(g) Reported earnings per share excludes interest expense on convertible debentures of $1,745,000 and $3,011,000, net
of tax, in 2003 and 2002, respectively, for the assumed conversion of such convertible debentures. Adjusted earnings per
share excludes interest expense on convertible debentures of $1,745,000 and $1,938,000, net of tax, in 2003 and 2002,
respectively, for the assumed conversion of such convertible debentures.
(h) Adjusted weighted average diluted shares reflect the dilutive effect on the convertible debentures of the adjustments to
net income as described in notes (b) through (g).
Segment Data (i)(j)(k)(l) Three Months Ended
--------------------------------------
(In thousands except percentage amounts) June 28, 2003 June 29, 2002
- -----------------------------------------------------------------------------------------------------------------------------------
Life and Laboratory Sciences
Revenues $ 313,791 $ 290,191
----------------- ----------------
GAAP Operating Income 43,886 40,420
Cost of Revenue Charges (m) - 807
Restructuring and Other Items (n) 3,908 3,151
Amortization of Acquisition-Related Intangible Assets 1,657 1,181
----------------- ----------------
Adjusted Operating Income $ 49,451 $ 45,559
----------------- ----------------
GAAP Operating Margin 14.0% 13.9%
Adjusted Operating Margin 15.8% 15.7%
Measurement and Control
Revenues $ 152,394 $ 153,514
----------------- ----------------
GAAP Operating Income 13,375 13,472
Restructuring and Other Items (n) (177) 1,137
Amortization of Acquisition-Related Intangible Assets 676 280
----------------- ----------------
Adjusted Operating Income $ 13,874 $ 14,889
----------------- ----------------
GAAP Operating Margin 8.8% 8.8%
Adjusted Operating Margin 9.1% 9.7%
Optical Technologies
Revenues $ 52,598 $ 68,177
----------------- ----------------
GAAP Operating Loss (1,831) (11,605)
Cost of Revenue Charges (m) - 744
Restructuring and Other Items (n) 358 10,298
Amortization of Acquisition-Related Intangible Assets 207 268
----------------- ----------------
Adjusted Operating Loss $ (1,266) $ (295)
----------------- ----------------
GAAP Operating Margin (3.5%) (17.0%)
Adjusted Operating Margin (2.4%) (0.4%)
Consolidated (including Corporate Costs) $ 516,405 $ 509,113
----------------- ----------------
GAAP Operating Income 48,282 35,176
Cost of Revenue Charges (m) - 1,551
Restructuring and Other Items (n) 4,872 15,487
Amortization of Acquisition-Related Intangible Assets 2,540 1,729
----------------- ----------------
Adjusted Operating Income $ 55,694 $ 53,943
----------------- ----------------
GAAP Operating Margin 9.3% 6.9%
Adjusted Operating Margin 10.8% 10.6%
(i) GAAP operating income (loss) and GAAP operating margin were determined in accordance with U.S. generally accepted accounting
principles.
(j) Adjusted operating income (loss) and adjusted operating margin exclude the items in notes (c) and (d) and amortization
of acquisition-related intangible assets.
(k) Segment data for 2002 has been revised, consistent with the presentation in 2003, to reflect a realignment of several
businesses among the segments and for an allocation to the segments of some costs previously reported as corporate
expenses.
(l) Depreciation expense in 2003 was $6,223,000 in Life and Laboratory Sciences, $2,719,000 in Measurement and
Control, $2,741,000 in Optical Technologies, and $12,480,000 Consolidated. Depreciation expense in 2002 was $5,465,000 in
Life and Laboratory Sciences, $2,871,000 in Measurement and Control, $3,044,000 in Optical Technologies, and
$12,107,000 Consolidated.
(m) Includes items described in note (c).
(n) Includes items described in note (d).
Consolidated Statement of Income (unaudited)
Six Months Ended
-------------------------------------------------------------------
June 28, 2003 June 29, 2002
------------------------------ ------------------------------
(In thousands except per share amounts) Reported (a) Adjusted (b) Reported (a) Adjusted (b)
- ------------------------------------------------------------------------------------------------------------------------------------
Revenues $ 1,016,610 $ 1,016,610 $ 1,000,439 $ 1,000,439
------------ ------------ ------------ ------------
Costs and Operating Expenses:
Cost of revenues (c) 559,627 559,627 546,995 545,444
Selling, general, and administrative expenses 277,046 277,046 274,988 274,988
Amortization of acquisition-related intangible assets 4,932 - 3,296 -
Research and development expenses 74,453 74,453 79,380 79,380
Restructuring and other costs, net (d) 12,974 - 23,870 -
------------ ------------ ------------ ------------
929,032 911,126 928,529 899,812
------------ ------------ ------------ ------------
Operating Income 87,578 105,484 71,910 100,627
Interest Income 14,762 14,762 26,979 26,979
Interest Expense (12,337) (12,337) (23,695) (23,695)
Other Income, Net (e) 15,671 2,017 94,967 8,077
------------ ------------ ------------ ------------
Income from Continuing Operations Before Income
Taxes and Minority Interest 105,674 109,926 170,161 111,988
Provision for Income Taxes (f) (21,144) (30,450) (57,301) (35,697)
Minority Interest Income (f) - - 331 324
------------ ------------ ------------ ------------
Income from Continuing Operations 84,530 79,476 113,191 76,615
Gain on Disposal of Discontinued Operations (net of
income tax provision of $3,564 in 2003; includes
tax benefit of $13,408 in 2002) 5,036 - 70,370 -
------------ ------------ ------------ ------------
Net Income $ 89,566 $ 79,476 $ 183,561 $ 76,615
============ ============ ============ ============
Earnings per Share from Continuing Operations:
Basic $ .52 $ .66
============ ============
Diluted $ .51 $ .62
============ ============
Earnings per Share (g):
Basic $ .55 $ 1.06
============ ============
Diluted $ .54 $ .48 $ .98 $ .44
============ ============ ============ =============
Weighted Average Shares:
Basic 162,446 172,686
============ ============
Diluted (h) 172,977 172,977 195,464 183,715
============ ============ ============ =============
(a) Reported results were determined in accordance with U.S. generally accepted accounting principles (GAAP).
(b) Adjusted results exclude inventory charges in 2002 (note c), amortization of acquisition-related intangible assets,
restructuring and other costs/income (note d), certain other income/expense (note e), the tax consequences of these items and
other tax benefit (note f), and gain on disposal of discontinued operations.
(c) Reported results in 2002 include charges of $1,159,000 for the abandonment of product lines and $392,000 of charges for the sale
of inventories revalued at the date of acquisition.
(d) Reported results in 2003 include restructuring and other items consisting principally of severance; abandoned facility and other
expenses of real estate consolidation; a writedown of a business held for sale to estimated disposal value; net gains on the
sale of a product line and property; and legal/advisory fees associated with a reorganization of the company's non-U.S.
subsidiary structure. Reported results in 2002 include restructuring and other items consisting principally of charges for
abandoned equipment at Spectra-Physics; severance; abandoned facility and other expenses of real estate consolidation;
cancellation penalties on capital equipment purchases; impairment of abandoned assets; and legal/advisory fees associated with a
reorganization of the company's non-U.S. subsidiary structure. These items are net of gains on the sale of businesses.
(e) Reported results include $13,654,000 and $87,936,000 of gains from the sale of shares of FLIR Systems, Inc. in 2003 and 2002,
respectively. Reported results also include losses of $1,046,000 in 2002 on the early retirement of debt. These items have been
excluded from adjusted results.
(f) Adjusted results exclude $280,000 of incremental tax benefit in 2003, and $21,604,000 and $7,000 of incremental tax provision
and minority interest expense, respectively, in 2002, for the items in (b) through (e) and in 2003 exclude $9,026,000 of tax
benefit from the reversal of a valuation allowance due to expected utilization of foreign tax credit carryforwards.
(g) Reported earnings per share excludes interest expense on convertible debentures of $3,546,000 and $8,919,000, net of tax, in
2003 and 2002, respectively, for the assumed conversion of such convertible debentures. Adjusted earnings per share excludes
interest expense on convertible debentures of $3,546,000 and $3,373,000, net of tax, in 2003 and 2002, respectively, for the
assumed conversion of such convertible debentures.
(h) Adjusted weighted average diluted shares reflect the dilutive effect on the convertible debentures of the adjustments to net
income as described in notes (b) through (g).
Segment Data (i)(j)(k)(l)
Six Months Ended
--------------------------------------
(In thousands except percentage amounts) June 28, 2003 June 29, 2002
- -----------------------------------------------------------------------------------------------------------------------------------
Life and Laboratory Sciences
Revenues $ 613,256 $ 571,505
----------------- ----------------
GAAP Operating Income 82,908 82,539
Cost of Revenue Charges (m) - 807
Restructuring and Other Items (n) 6,481 2,834
Amortization of Acquisition-Related Intangible Assets
3,245 2,197
----------------- ----------------
Adjusted Operating Income $ 92,634 88,377
----------------- ----------------
GAAP Operating Margin 13.5% 14.4%
Adjusted Operating Margin 15.1% 15.5%
Measurement and Control
Revenues $ 306,314 $ 305,203
----------------- ----------------
GAAP Operating Income 24,194 27,303
Restructuring and Other Items (n) 3,453 888
Amortization of Acquisition-Related Intangible Assets 1,199 564
----------------- ----------------
Adjusted Operating Income $ 28,846 $ 28,755
----------------- ----------------
GAAP Operating Margin 7.9% 8.9%
Adjusted Operating Margin 9.4% 9.4%
Optical Technologies
Revenues $ 102,800 $ 129,730
----------------- ----------------
GAAP Operating Loss (5,508) (23,503)
Cost of Revenue Charges (m) - 744
Restructuring and Other Items (n) 1,652 18,556
Amortization of Acquisition-Related Intangible Assets 488 535
----------------- ----------------
Adjusted Operating Loss $ (3,368) $ (3,668)
----------------- ----------------
GAAP Operating Margin (5.4%) (18.1%)
Adjusted Operating Margin (3.3%) (2.8%)
Consolidated (including Corporate Costs)
Revenues $ 1,016,610 $ 1,000,439
----------------- ----------------
GAAP Operating Income 87,578 71,910
Cost of Revenue Charges (m) - 1,551
Restructuring and Other Items (n) 12,974 23,870
Amortization of Acquisition-Related Intangible Assets 4,932 3,296
----------------- ----------------
Adjusted Operating Income $ 105,484 100,627
----------------- ----------------
GAAP Operating Margin 8.6% 7.2%
Adjusted Operating Margin 10.4% 10.1%
(i) GAAP operating income (loss) and GAAP operating margin were determined in accordance with U.S. generally accepted accounting
principles.
(j) Adjusted operating income (loss) and adjusted operating margin exclude the items in notes (c) and (d) and amortization of
acquisition-related intangible assets.
(k) Segment data for 2002 has been revised, consistent with the presentation in 2003, to reflect a realignment of several businesses
among the segments and for an allocation to the segments of some costs previously reported as corporate expenses.
(l) Depreciation expense in 2003 was $11,586,000 in Life and Laboratory Sciences, $5,298,000 in Measurement and Control, $5,704,000
in Optical Technologies, and $24,122,000 Consolidated. Depreciation expense in 2002 was $10,953,000 in Life and Laboratory
Sciences, $5,793,000 in Measurement and Control, $6,907,000 in Optical Technologies, and $25,076,000 Consolidated.
(m) Includes items described in note (c).
Condensed Consolidated Balance Sheet (unaudited)
(In thousands) June 28, 2003 Dec. 28, 2002
- ------------------------------------------------------------------------------ --------------- -- --------------
Current Assets:
Cash and cash equivalents $ 264,442 $ 339,038
Short-term available-for-sale investments 281,918 536,430
Accounts receivable, net 405,598 429,740
Inventories 343,276 332,804
Other current assets 143,791 133,547
--------------- --------------
1,439,025 1,771,559
--------------- --------------
Property, Plant, and Equipment, Net 273,684 272,908
--------------- --------------
Other Assets 123,108 186,390
--------------- --------------
Goodwill 1,444,054 1,416,205
--------------- --------------
$ 3,279,871 $ 3,647,062
=============== ==============
Current Liabilities:
Short-term obligations and current maturities of long-term obligations $ 228,786 $ 484,480
Other current liabilities 571,572 619,240
--------------- --------------
800,358 1,103,720
--------------- --------------
Long-term Deferred Income Taxes and Other Deferred Items 65,823 58,678
--------------- --------------
Long-term Obligations:
Senior notes 143,995 141,032
Subordinated convertible obligations 77,375 304,549
Other 5,222 5,760
--------------- --------------
226,592 451,341
--------------- --------------
Total Shareholders' Equity 2,187,098 2,033,323
--------------- --------------
$ 3,279,871 $ 3,647,062
=============== ==============