Exhibit 99
FOR IMMEDIATE RELEASE
Media Contact Information: Investor Contact Information:
Lori Gorski J. Timothy Corcoran
Phone: 781-622-1242 Phone: 781-622-1111
E-mail: lori.gorski@thermo.com E-mail: tim.corcoran@thermo.com
Website: www.thermo.com
Thermo Electron Reports 2003 Fourth-Quarter and Year-End Results
WALTHAM, Mass. (February 4, 2004) - Thermo Electron Corporation (NYSE: TMO)
today reported GAAP diluted earnings per share (EPS) of $.37 for the fourth
quarter of 2003, compared with $.51 in the year-ago period, primarily due to
lower gains in 2003 from discontinued operations and the sale of securities.
Fourth-quarter revenues were $583.4 million, up 3 percent from $568.7 million a
year ago. GAAP operating margin rose to 9.4 percent in the 2003 quarter, versus
6.8 percent in 2002.
Adjusted EPS increased 13 percent for the fourth quarter of 2003 to $.35,
compared with $.31 in 2002. Adjusted operating margin rose 140 basis points to
13.5 percent, compared with 12.1 percent a year ago. Adjusted EPS and adjusted
operating margin are non-GAAP measures that 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
Corporation, 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 consolidated statements of income.
Organic revenues for the quarter declined 3 percent, including the effect of a
$26.8 million shipment of explosives-detection instruments to the U.S.
Transportation Safety Agency (TSA) in the fourth quarter of 2002, which lowered
the 2003 quarter's growth rate by 5 percent. Organic revenues exclude the
effects of currency translation, which increased revenues by 7 percent, and
acquisitions/divestitures, which reduced revenues by 1 percent.
For the full year, Thermo reported GAAP diluted earnings per share of $1.20 in
2003, versus $1.73 a year ago, again primarily due to lower gains in 2003 from
discontinued operations and from the sale of securities. Adjusted EPS rose 10
percent to $1.09, versus $.99 in 2002. Revenues increased slightly in 2003 to
$2.10 billion, compared with $2.09 billion in 2002. GAAP operating margin rose
to 8.8 percent in 2003, compared with 7.5 percent a year ago. Adjusted operating
margin increased to 11.6 percent, versus 10.8 percent in 2002.
Marijn E. Dekkers, president and chief executive officer of Thermo Electron,
said, "We are very pleased to complete 2003 with strong gains in adjusted EPS
and operating margins. We also nearly doubled our cash flow from continuing
operations over the same quarter a year ago to $115 million. While we continue
to improve productivity, I am encouraged by the increase in reported revenues
during the quarter in spite of a difficult year-to-year comparison. Our strong
focus on growing revenues by providing our customers with better products and
services is beginning to pay off.
"No question, the overall tone of business is improving across all our markets.
We reported solid revenue growth in our Life and Laboratory Sciences segment,
and earnings performance significantly improved in Optical Technologies. We
greatly expanded our offerings after completing three acquisitions in the
quarter - Jouan, LMSi, and the personal radiation-detection business of Siemens
- - which add approximately $110 million in annual revenues and are expected to
add $.03 to adjusted EPS in 2004. We are making good progress toward our goal of
becoming the world's leading instruments company, and are pursuing opportunities
for growth with the same intensity that drove our integration efforts over the
past few years."
Mr. Dekkers continued, "With good momentum going into 2004, our goal is to
report $.25 to $.27 in adjusted EPS for the first quarter and $1.23 to $1.28 for
the full year." This guidance excludes approximately $.02 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.
Life and Laboratory Sciences
The Life and Laboratory Sciences segment reported a significant increase in 2003
fourth-quarter revenues, up 13 percent to $377 million, compared with $333
million in 2002; organic revenues rose 5 percent. The effect of currency
translation increased revenues by 8 percent. The organic revenue growth is
primarily a result of strong sales of our mass spectrometry instruments and
rapid diagnostic tests used to detect flu. GAAP operating margin was 14.9
percent in the 2003 quarter, up from 14.3 percent a year ago. Adjusted operating
margin was 18.1 percent in 2003, versus 18.5 percent in 2002.
We continue to broaden both our technology and services offerings. Several new
products generated strong orders in the fourth quarter, including the Finnigan
LTQ(TM) FT hybrid and Finnigan LTQ(TM) linear ion trap mass spectrometers, as
well as the Shandon Excelsior(TM) automated tissue processor. The acquisition of
Jouan greatly increases the breadth of our sample preparation equipment
offerings, while Laboratory Management Systems, Inc. (LMSi) adds key instrument
validation and regulatory consulting expertise to our rapidly growing services
business. In addition, we formed a strategic alliance with Johnson & Johnson's
Ortho-Clinical Diagnostics business for the distribution of our clinical
automation systems in North America.
Measurement and Control
Fourth-quarter revenues in the Measurement and Control segment were $153 million
in 2003, versus $176 million in 2002. Organic revenues declined 17 percent
compared with the 2002 period, including the sale of explosives-detection
instruments to the TSA, which lowered the 2003 quarter's growth rate by 16
percent. The effect of currency translation increased revenues by 5 percent,
while acquisitions/divestitures decreased revenues by 1 percent. GAAP operating
margin increased to 6.2 percent in 2003, versus 5.6 percent a year ago. Adjusted
operating margin was 9.3 percent, down from 10.1 percent in 2002.
Optical Technologies
In the Optical Technologies segment, revenues were $57 million for the fourth
quarter of 2003, versus $64 million in 2002; organic revenues declined 11
percent. Although year-to-year revenue comparisons were down, the segment
experienced sequential growth in revenues of 9 percent, reflecting the upturn in
microelectronics and other industrial markets addressed by our lasers and
photonics products. The effect of currency translation increased revenues by 4
percent, but was offset by a divestiture that reduced revenues by the same
percentage. GAAP operating margin was negative 1.5 percent for the 2003 period,
versus negative 12.1 percent in 2002. The segment reported a significant rise in
adjusted operating margin of 6.1 percent in the 2003 quarter, compared with 0.1
percent last year, resulting mainly from continued productivity gains.
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally
accepted accounting principles (GAAP), we use certain non-GAAP financial
measures, including 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 also use the concept of organic revenue growth, which
excludes the effects of currency translation and acquisitions/divestitures. We
believe that the inclusion of such 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:
- 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.
- 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 for both our newly acquired and
long-held businesses and with both acquisitive and non-acquisitive
peer companies.
- 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
and/or the text of this press release. 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. We no longer own any shares of FLIR Systems.
Conference Call
Thermo Electron will hold its earnings conference call on Thursday, February 5,
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. Click on "About Thermo," then "Investors." An audio
archive of the call will be available in that section of our Web site until
Friday, March 5, 2004. You will also find this press release, including the
accompanying reconciliation of non-GAAP financial measures, under the heading
"Press Releases," and related information under "Financial Reports," in the
Investors section of our Web site.
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 the company's Quarterly Report on Form 10-Q for the fiscal
quarter ended September 27, 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 instrument businesses, realization of potential future savings
from new sourcing initiatives, implementation of 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
------------------------------------------------------------------------
Dec. 31, 2003 Dec. 28, 2002
---------------------------------- ---------------------------------
(In thousands except per share amounts) Reported (a) Adjusted (b) Reported (a) Adjusted (b)
- ------------------------------------------------------------------------------------------------------------------------------------
Revenues $ 583,409 $ 583,409 $ 568,745 $ 568,745
--------------- --------------- -------------- ---------------
Costs and Operating Expenses:
Cost of revenues (c) 318,280 318,209 323,470 317,621
Selling, general, and administrative expenses 149,309 149,309 144,235 144,235
Amortization of acquisition-related intangible assets 2,502 - 2,811 -
Research and development expenses 37,041 37,041 38,188 38,188
Restructuring and other costs, net (d) 21,462 - 21,369 -
--------------- --------------- -------------- ---------------
528,594 504,559 530,073 500,044
--------------- --------------- -------------- ---------------
Operating Income 54,815 78,850 38,672 68,701
Interest Income 2,002 2,002 9,685 9,685
Interest Expense (2,788) (2,788) (8,357) (8,357)
Other Income, Net (e) 6,545 595 19,672 3,233
--------------- --------------- -------------- ---------------
Income from Continuing Operations Before Income Taxes 60,574 78,659 59,672 73,262
Provision for Income Taxes (f) (11,404) (20,990) (17,520) (21,126)
--------------- --------------- -------------- ---------------
Income from Continuing Operations 49,170 57,669 42,152 52,136
Gain on Disposal of Discontinued Operations (net of income tax
provision of $7,177 in 2003; includes tax benefit
of $7,600 in 2002) 12,758 - 45,000 -
--------------- --------------- -------------- ---------------
Net Income $ 61,928 $ 57,669 $ 87,152 $ 52,136
=============== =============== ============== ===============
Earnings per Share from Continuing Operations:
Basic $ .30 $ .26
=============== ==============
Diluted $ .30 $ .25
=============== ==============
Earnings per Share (g):
Basic $ .38 $ .53
=============== ==============
Diluted $ .37 $ .35 $ .51 $ .31
=============== =============== ============== ===============
Weighted Average Shares:
Basic 163,427 163,214
=============== ==============
Diluted 167,812 167,812 175,248 175,248
=============== =============== ============== ===============
(a) Reported results were determined in accordance with U.S. generally accepted accounting principles (GAAP).
(b) Adjusted results are non-GAAP measures and exclude inventory charges (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 2003 include $71,000 of charges primarily for the sale of inventories revalued at the date of acquisition.
Reported results in 2002 include $5,563,000 of inventory writedowns for the abandonment of a product line and $286,000 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; 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; net losses on the sale of a business and property; and
legal/advisory fees associated with a reorganization of the company's non-U.S. subsidiary structure.
(e) Reported results include $5,950,000 of gains from the sale of shares of Thoratec Corporation in 2003, and $16,937,000 of gains
from the sale of shares of FLIR Systems, Inc. in 2002. Reported results also include losses of $498,000 in 2002 on the early
retirement of debt. These items have been excluded from adjusted results.
(f) Adjusted provision for income taxes excludes $5,871,000 and $3,606,000 of incremental tax benefit in 2003 and 2002,
respectively, for the items in (b) through (e) and in 2003 excludes $3,715,000 of tax benefit from the sale of a business.
(g) Reported earnings per share and adjusted earnings per share exclude interest expense on convertible debentures of $413,000
and $2,154,000, net of tax, in 2003 and 2002, respectively, for the assumed conversion of such convertible debentures.
Segment Data (h)(i)(j)(k) Three Months Ended
-----------------------------------
(In thousands except percentage amounts) Dec. 31, 2003 Dec. 28, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
Life and Laboratory Sciences
Revenues $ 376,723 $ 332,687
---------------- ---------------
GAAP Operating Income 56,007 47,600
Cost of Revenue Charges (l) - 21
Restructuring and Other Items (m) 10,457 12,096
Amortization of Acquisition-related Intangible Assets 1,684 1,774
---------------- ---------------
Adjusted Operating Income $ 68,148 $ 61,491
---------------- ---------------
GAAP Operating Margin 14.9% 14.3%
Adjusted Operating Margin 18.1% 18.5%
Measurement and Control
Revenues $ 153,216 $ 175,646
---------------- ---------------
GAAP Operating Income 9,473 9,797
Cost of Revenue Charges (l) 71 54
Restructuring and Other Items (m) 4,099 7,089
Amortization of Acquisition-related Intangible Assets 647 763
---------------- ---------------
Adjusted Operating Income $ 14,290 $ 17,703
---------------- ---------------
GAAP Operating Margin 6.2% 5.6%
Adjusted Operating Margin 9.3% 10.1%
Optical Technologies
Revenues $ 56,817 $ 64,000
---------------- ---------------
GAAP Operating Income (Loss) (847) (7,757)
Cost of Revenue Charges (l) - 5,774
Restructuring and Other Items (m) 4,137 1,766
Amortization of Acquisition-related Intangible Assets 171 274
---------------- ---------------
Adjusted Operating Income $ 3,461 $ 57
---------------- ---------------
GAAP Operating Margin (1.5%) (12.1%)
Adjusted Operating Margin 6.1% 0.1%
Consolidated (including Corporate Costs)
Revenues $ 583,409 $ 568,745
---------------- ---------------
GAAP Operating Income 54,815 38,672
Cost of Revenue Charges (l) 71 5,849
Restructuring and Other Items (m) 21,462 21,369
Amortization of Acquisition-related Intangible Assets 2,502 2,811
---------------- ---------------
Adjusted Operating Income $ 78,850 $ 68,701
---------------- ---------------
GAAP Operating Margin 9.4% 6.8%
Adjusted Operating Margin 13.5% 12.1%
(h) GAAP operating income (loss) and GAAP operating margin were determined in accordance with U.S. generally accepted accounting
principles.
(i) Adjusted operating income and adjusted operating margin are non-GAAP measures and exclude the items in notes (c) and (d)and
amortization of acquisition-related intangible assets.
(j) 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.
(k) Depreciation expense in 2003 was $5,752,000 at Life and Laboratory Sciences, $3,018,000 at Measurement and Control, $2,854,000
at Optical Technologies, and $12,460,000 Consolidated. Depreciation expense in 2002 was $5,403,000 at Life and Laboratory
Sciences, $2,549,000 at Measurement and Control, $2,688,000 at Optical Technologies, and $11,366,000 Consolidated.
(l) Includes items described in note (c).
(m) Includes items described in note (d).
Consolidated Statement of Income
Twelve Months Ended
------------------------------------------------------------------------
Dec. 31, 2003 Dec. 28, 2002
--------------------------------- -----------------------------
(In thousands except per share amounts) Reported (a) Adjusted (b) Reported (a) Adjusted (b)
- -----------------------------------------------------------------------------------------------------------------------------------
Revenues $ 2,097,135 $ 2,097,135 $ 2,086,355 $ 2,086,355
--------------- -------------- ---------------- --------------
Costs and Operating Expenses:
Cost of revenues (c) 1,149,120 1,149,049 1,158,979 1,149,853
Selling, general, and administrative expenses 558,234 558,234 556,337 556,337
Amortization of acquisition-related intangible assets 9,904 - 8,319 -
Research and development expenses 146,394 146,394 155,121 155,121
Restructuring and other costs, net (d) 48,709 - 52,146 -
--------------- -------------- ---------------- --------------
1,912,361 1,853,677 1,930,902 1,861,311
--------------- -------------- ---------------- --------------
Operating Income 184,774 243,458 155,453 225,044
Interest Income 19,673 19,673 47,874 47,874
Interest Expense (18,676) (18,676) (40,916) (40,916)
Other Income, Net (e) 32,862 3,905 124,083 14,143
--------------- -------------- ---------------- --------------
Income from Continuing Operations Before Income Taxes and
Minority Interest 218,633 248,360 286,494 246,145
Provision for Income Taxes (f) (45,936) (66,809) (92,465) (75,058)
Minority Interest Income (f) - - 331 324
--------------- -------------- ---------------- --------------
Income from Continuing Operations 172,697 181,551 194,360 171,411
Gain on Disposal of Discontinued Operations (net of income tax
provision of $8,141 in 2003; includes tax benefit
of $21,008 in 2002) 27,312 - 115,370 -
--------------- -------------- ---------------- --------------
Net Income $ 200,009 $ 181,551 $ 309,730 $ 171,411
=============== ============== ================ ==============
Earnings per Share from Continuing Operations:
Basic $ 1.06 $ 1.15
=============== ================
Diluted $ 1.04 $ 1.12
=============== ================
Earnings per Share (g):
Basic $ 1.23 $ 1.84
=============== ================
Diluted $ 1.20 $ 1.09 $ 1.73 $ .99
=============== ============== ================ ==============
Weighted Average Shares:
Basic 162,713 168,572
=============== ================
Diluted (h) 170,730 170,730 186,611 185,824
=============== ============== ================ ==============
(a) Reported results were determined in accordance with U.S. generally accepted accounting principles(GAAP).
(b) Adjusted results are non-GAAP measures and exclude inventory charges (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 2003 include $71,000 of charges primarily for the sale of inventories revalued at the date of acquisition.
Reported results in 2002 include charges of $6,722,000 of inventory writedowns for the abandonment of product lines and
$2,404,000 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 to disposal value of a product line and a business that were sold in
October 2003; 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 $16,279,000 of gains from the sale of shares of Thoratec Corporation in 2003, and $13,654,000 and
$111,432,000 of gains from the sale of shares of FLIR Systems, Inc. in 2003 and 2002, respectively. Reported results also
include losses of $976,000 and $1,492,000 in 2003 and 2002, respectively, on the early retirement of debt. These items have
been excluded from adjusted results.
(f) Adjusted results exclude $8,132,000 of incremental tax benefit in 2003, and $17,407,000 and $7,000 of incremental tax provision
and minority interest income, 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 and
$3,715,000 of tax benefit from the sale of a business.
(g) Reported earnings per share excludes interest expense on convertible debentures of $4,830,000 and $13,986,000, 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 $4,830,000 and $13,198,000, 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) Twelve Months Ended
---------------------------------------
(In thousands except percentage amounts) Dec. 31, 2003 Dec. 28, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
Life and Laboratory Sciences
Revenues $ 1,291,430 $ 1,204,232
---------------- ---------------
GAAP Operating Income 182,589 172,910
Cost of Revenue Charges (m) - 1,251
Restructuring and Other Items (n) 21,808 17,968
Amortization of Acquisition-related Intangible Assets 6,591 5,630
---------------- ---------------
Adjusted Operating Income $ 210,988 $ 197,759
---------------- ---------------
GAAP Operating Margin 14.1% 14.4%
Adjusted Operating Margin 16.3% 16.4%
Measurement and Control
Revenues $ 606,197 $ 636,025
---------------- ---------------
GAAP Operating Income 44,549 45,862
Cost of Revenue Charges (m) 71 1,384
Restructuring and Other Items (n) 10,214 12,226
Amortization of Acquisition-related Intangible Assets 2,446 1,613
---------------- ---------------
Adjusted Operating Income $ 57,280 $ 61,085
---------------- ---------------
GAAP Operating Margin 7.3% 7.2%
Adjusted Operating Margin 9.4% 9.6%
Optical Technologies
Revenues $ 211,758 $ 258,640
---------------- ---------------
GAAP Operating Loss (11,731) (30,986)
Cost of Revenue Charges (m) - 6,491
Restructuring and Other Items (n 11,559 19,391
Amortization of Acquisition-related Intangible Assets 867 1,076
---------------- ---------------
Adjusted Operating Income (Loss) $ 695 $ (4,028)
---------------- ---------------
GAAP Operating Margin (5.5%) (12.0%)
Adjusted Operating Margin 0.3% (1.6%)
Consolidated (including Corporate Costs)
Revenues $ 2,097,135 $ 2,086,355
---------------- ---------------
GAAP Operating Income 184,774 155,453
Cost of Revenue Charges (m) 71 9,126
Restructuring and Other Items (n) 48,709 52,146
Amortization of Acquisition-related Intangible Assets 9,904 8,319
---------------- ---------------
Adjusted Operating Income $ 243,458 $ 225,044
---------------- ---------------
GAAP Operating Margin 8.8% 7.5%
Adjusted Operating Margin 11.6% 10.8%
(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 are non-GAAP measures and 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 $23,211,000 at Life and Laboratory Sciences, $10,698,000 at Measurement and Control,
$11,523,000 at Optical Technologies, and $48,644,000 Consolidated. Depreciation expense in 2002 was $21,616,000 at Life and
Laboratory Sciences, $11,065,000 at Measurement and Control, $12,496,000 at Optical Technologies, and $48,057,000 Consolidated.
(m) Includes items described in note (c).
(n) Includes items described in note (d).
Condensed Consolidated Balance Sheet
(In thousands) Dec. 31, 2003 Dec. 28, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents 303,912 339,038
Short-term available-for-sale investments 114,326 536,430
Accounts receivable, net 460,926 429,740
Inventories 343,758 332,804
Other current assets 172,334 133,547
----------------- ---------------
1,395,256 1,771,559
----------------- ---------------
Property, Plant, and Equipment, Net 300,702 272,908
----------------- ---------------
Other Assets 135,834 190,803
----------------- ---------------
Goodwill 1,557,177 1,416,205
----------------- ---------------
$ 3,388,969 $ 3,651,475
================= ===============
Current Liabilities:
Short-term obligations and current maturities of long-term obligations $ 41,098 $ 484,480
Other current liabilities 638,812 619,240
----------------- ---------------
679,910 1,103,720
----------------- ---------------
Long-term Deferred Income Taxes and Other Long-term Liabilities 91,861 66,137
----------------- ---------------
Long-term Obligations:
Senior notes 137,874 141,032
Subordinated convertible obligations 77,234 304,549
Other 19,284 5,760
----------------- ---------------
234,392 451,341
----------------- ---------------
Total Shareholders' Equity 2,382,806 2,030,277
----------------- ---------------
$ 3,388,969 $ 3,651,475
================= ===============