Delaware
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1-8002
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04-2209186
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(State or other jurisdiction of
incorporation or organization)
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(Commission File Number)
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(I.R.S. Employer Identification Number)
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81 Wyman Street
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Waltham, Massachusetts
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02451
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(Address of principal executive offices)
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(Zip Code)
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(781) 622-1000
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(Registrant’s telephone number including area code)
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THERMO FISHER SCIENTIFIC INC.
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By:
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/s/ Peter E. Hornstra
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Peter E. Hornstra
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Vice President and Chief Accounting Officer
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FOR IMMEDIATE RELEASE
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Media Contact Information:
Karen Kirkwood
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Investor Contact Information:
Ken Apicerno
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Phone: 781-622-1306
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Phone: 781-622-1294
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E-mail: karen.kirkwood@thermofisher.com
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E-mail: ken.apicerno@thermofisher.com
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Website: www.thermofisher.com
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·
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Grew adjusted earnings per share (EPS) by 5% to $1.80.
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·
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Delivered revenue of $4.12 billion.
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·
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Expanded adjusted operating margin by 70 basis points to 22.6%.
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·
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Launched Ion S5 and Ion S5 XL to enable targeted next-generation sequencing, including gene panels as well as small genomes, exomes, transcriptomes and custom assays, on a single platform.
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·
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Strengthened clinical offering by introducing a range of new Thermo Scientific products at AACC, including new immunodiagnostic tests and instruments, and a high-throughput HPLC; obtained CE marks for clinical use of HPLC, mass spectrometry and related software in Europe.
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·
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Achieved strong revenue growth in China, driven by customer demand in biopharma, environmental and food safety markets.
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·
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Completed acquisition of Alfa Aesar for approximately $400 million just after quarter end, giving research customers access to a broader offering of laboratory chemicals, solvents and reagents.
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Consolidated Statement of Income (unaudited) (a)(b) |
Three Months Ended
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|||||||||||||||
September 26, | % of | September 27, | % of | |||||||||||||
(In millions except per share amounts)
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2015
|
Revenues
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2014
|
Revenues
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||||||||||||
Revenues
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$ | 4,123.2 | $ | 4,171.4 | ||||||||||||
Costs and Operating Expenses:
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||||||||||||||||
Cost of revenues (c)
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2,132.2 | 51.7% | 2,127.0 | 51.0% | ||||||||||||
Selling, general and administrative expenses (d)
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911.1 | 22.1% | 976.6 | 23.4% | ||||||||||||
Amortization of acquisition-related intangible assets
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329.9 | 8.0% | 362.9 | 8.7% | ||||||||||||
Research and development expenses
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171.6 | 4.2% | 175.2 | 4.2% | ||||||||||||
Restructuring and other costs (income), net (e)
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15.5 | 0.3% | (110.6 | ) | -2.7% | |||||||||||
3,560.3 | 86.3% | 3,531.1 | 84.7% | |||||||||||||
Operating Income
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562.9 | 13.7% | 640.3 | 15.3% | ||||||||||||
Interest Income
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7.2 | 10.5 | ||||||||||||||
Interest Expense
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(100.6 | ) | (116.8 | ) | ||||||||||||
Other (Expense) Income, Net (f)
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(1.4 | ) | 5.2 | |||||||||||||
Income Before Income Taxes
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468.1 | 539.2 | ||||||||||||||
Benefit from (Provision for) Income Taxes (g)
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9.2 | (69.3 | ) | |||||||||||||
Income from Continuing Operations
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477.3 | 469.9 | ||||||||||||||
(Loss) Gain from Discontinued Operations, Net of Tax
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(1.2 | ) | 1.7 | |||||||||||||
Net Income
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$ | 476.1 | 11.5% | $ | 471.6 | 11.3% | ||||||||||
Earnings per Share from Continuing Operations:
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||||||||||||||||
Basic
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$ | 1.20 | $ | 1.17 | ||||||||||||
Diluted
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$ | 1.19 | $ | 1.16 | ||||||||||||
Earnings per Share:
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||||||||||||||||
Basic
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$ | 1.19 | $ | 1.18 | ||||||||||||
Diluted
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$ | 1.18 | $ | 1.17 | ||||||||||||
Weighted Average Shares:
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||||||||||||||||
Basic
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399.0 | 399.9 | ||||||||||||||
Diluted
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402.0 | 403.7 | ||||||||||||||
Reconciliation of Adjusted Operating Income and Adjusted Operating Margin
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||||||||||||||||
GAAP Operating Income (a)
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$ | 562.9 | 13.7% | $ | 640.3 | 15.3% | ||||||||||
Cost of Revenues Charges (c)
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0.8 | 0.0% | 2.1 | 0.1% | ||||||||||||
Selling, General and Administrative Costs, Net (d)
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24.6 | 0.6% | 20.3 | 0.5% | ||||||||||||
Restructuring and Other Costs (Income), Net (e)
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15.5 | 0.3% | (110.6 | ) | -2.7% | |||||||||||
Amortization of Acquisition-related Intangible Assets
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329.9 | 8.0% | 362.9 | 8.7% | ||||||||||||
Adjusted Operating Income (b)
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$ | 933.7 | 22.6% | $ | 915.0 | 21.9% | ||||||||||
Reconciliation of Adjusted Net Income
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||||||||||||||||
GAAP Net Income (a)
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$ | 476.1 | 11.5% | $ | 471.6 | 11.3% | ||||||||||
Cost of Revenues Charges (c)
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0.8 | 0.0% | 2.1 | 0.1% | ||||||||||||
Selling, General and Administrative Costs, Net (d)
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24.6 | 0.6% | 20.3 | 0.5% | ||||||||||||
Restructuring and Other Costs (Income), Net (e)
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15.5 | 0.3% | (110.6 | ) | -2.7% | |||||||||||
Amortization of Acquisition-related Intangible Assets
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329.9 | 8.0% | 362.9 | 8.7% | ||||||||||||
Other Expense (Income), Net (f)
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3.6 | 0.1% | (3.6 | ) | -0.1% | |||||||||||
Provision for Income Taxes (g)
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(127.2 | ) | -3.0% | (50.7 | ) | -1.2% | ||||||||||
Discontinued Operations, Net of Tax
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1.2 | 0.1% | (1.7 | ) | -0.1% | |||||||||||
Adjusted Net Income (b)
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$ | 724.5 | 17.6% | $ | 690.3 | 16.5% | ||||||||||
Reconciliation of Adjusted Earnings per Share
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||||||||||||||||
GAAP EPS (a)
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$ | 1.18 | $ | 1.17 | ||||||||||||
Cost of Revenues Charges, Net of Tax (c)
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— | (0.04 | ) | |||||||||||||
Selling, General and Administrative Costs, Net of Tax (d)
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0.02 | 0.02 | ||||||||||||||
Restructuring and Other Costs (Income), Net of Tax (e)
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0.03 | — | ||||||||||||||
Amortization of Acquisition-related Intangible Assets, Net of Tax
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0.56 | 0.57 | ||||||||||||||
Other Expense (Income), Net of Tax (f)
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0.01 | (0.01 | ) | |||||||||||||
Discontinued Operations, Net of Tax
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— | — | ||||||||||||||
Adjusted EPS (b)
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$ | 1.80 | $ | 1.71 | ||||||||||||
Reconciliation of Free Cash Flow
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||||||||||||||||
GAAP Net Cash Provided by Operating Activities (a)
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$ | 743.9 | $ | 676.0 | ||||||||||||
Net Cash Used in Discontinued Operations
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3.7 | 1.6 | ||||||||||||||
Purchases of Property, Plant and Equipment
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(101.0 | ) | (90.7 | ) | ||||||||||||
Proceeds from Sale of Property, Plant and Equipment
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1.3 | 7.0 | ||||||||||||||
Free Cash Flow (h)
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$ | 647.9 | $ | 593.9 |
Segment Data
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Three Months Ended
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|||||||||||||||
September 26,
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% of
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September 27,
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% of
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|||||||||||||
(In millions)
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2015
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Revenues
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2014
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Revenues
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||||||||||||
Revenues
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||||||||||||||||
Life Sciences Solutions
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$ | 1,080.4 | 26.2% | $ | 1,071.9 | 25.7% | ||||||||||
Analytical Instruments
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778.5 | 18.9% | 786.5 | 18.9% | ||||||||||||
Specialty Diagnostics
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776.9 | 18.8% | 811.8 | 19.5% | ||||||||||||
Laboratory Products and Services
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1,638.2 | 39.7% | 1,628.7 | 39.0% | ||||||||||||
Eliminations
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(150.8 | ) | -3.6% | (127.5 | ) | -3.1% | ||||||||||
Consolidated Revenues
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$ | 4,123.2 | 100.0% | $ | 4,171.4 | 100.0% | ||||||||||
Operating Income and Operating Margin
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Life Sciences Solutions
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$ | 332.7 | 30.8% | $ | 306.3 | 28.6% | ||||||||||
Analytical Instruments
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146.5 | 18.8% | 137.8 | 17.5% | ||||||||||||
Specialty Diagnostics
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204.9 | 26.4% | 224.3 | 27.6% | ||||||||||||
Laboratory Products and Services
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249.6 | 15.2% | 246.6 | 15.1% | ||||||||||||
Subtotal Reportable Segments
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933.7 | 22.6% | 915.0 | 21.9% | ||||||||||||
Cost of Revenues Charges (c)
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(0.8 | ) | 0.0% | (2.1 | ) | -0.1% | ||||||||||
Selling, General and Administrative Costs, Net (d)
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(24.6 | ) | -0.6% | (20.3 | ) | -0.5% | ||||||||||
Restructuring and Other (Costs) Income, Net (e)
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(15.5 | ) | -0.3% | 110.6 | 2.7% | |||||||||||
Amortization of Acquisition-related Intangible Assets
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(329.9 | ) | -8.0% | (362.9 | ) | -8.7% | ||||||||||
GAAP Operating Income (a)
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$ | 562.9 | 13.7% | $ | 640.3 | 15.3% |
(a) |
"GAAP" (reported) results were determined in accordance with U.S. generally accepted accounting principles (GAAP).
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(b) |
Adjusted results are non-GAAP measures and, for income measures, exclude certain charges to cost of revenues (see note (c) for details); certain credits/charges to selling, general and administrative expenses (see note (d) for details); amortization of acquisition-related intangible assets; restructuring and other costs, net (see note (e) for details); certain other gains or losses that are either isolated or cannot be expected to occur again with any regularity or predictability (see note (f) for details); and the tax consequences of the preceding items and certain other tax items (see note (g) for details).
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(c) |
Reported results in 2015 and 2014 include $0.8 and $1.3, respectively, of accelerated depreciation on manufacturing assets to be abandoned due to facility consolidations. Reported results in 2014 include $0.8 of charges for the sale of inventories revalued at the date of acquisition.
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(d) |
Reported results in 2015 and 2014 include i) charges of $19.4 and $5.2, respectively, associated with product liability litigation, ii) $0.2 and $10.7, respectively, of third-party transaction/integration costs related to recent acquisitions and iii) $(2.1) and $4.4, respectively, of (gains)/charges for changes in estimates of contingent consideration for acquisitions. Reported results in 2015 also include $7.1 of accelerated depreciation on fixed assets to be abandoned due to integration synergies.
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(e) |
Reported results in 2015 and 2014 include restructuring and other costs, net, consisting principally of severance, abandoned facility and other expenses of headcount reductions within several businesses and real estate consolidations. Reported results in 2014 include a net gain of $132.6 on the sale of the Cole-Parmer business.
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(f) |
Reported results in 2015 and 2014 include $0.5 and $0.5, respectively, of amortization of acquisition-related intangible assets of the company's equity-method investments. Reported results in 2015 also include a loss of $3.1 on the early extinguishment of debt. Reported results in 2014 include a $4.1 gain on an equity investment.
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(g) |
Reported provision for income taxes includes i) $128.1 and $50.6 of incremental tax benefit in 2015 and 2014, respectively, for the pre-tax reconciling items between GAAP and adjusted net income; and ii) in 2015 and 2014, $0.9 and $(0.1), respectively, of incremental tax provision/(benefit) from adjusting the company's deferred tax balances as a result of tax rate changes.
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Notes: | |
Consolidated depreciation expense is $97.8 and $92.8 in 2015 and 2014, respectively.
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Consolidated equity compensation expense included in both reported and adjusted results is $32.5 and $30.6 in 2015 and 2014, respectively.
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Certain pre-acquisition equity awards of Life Technologies were converted to rights to receive future cash payments over the remaining vesting period. In addition to the equity compensation expense noted above, reported and adjusted results in 2015 and 2014 include $4.2 and $9.2, respectively, of expense for such cash payments.
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Consolidated Statement of Income (unaudited) (a)(b) |
Nine Months Ended
|
|||||||||||||||
September 26, | % of | September 27, | % of | |||||||||||||
(In millions except per share amounts)
|
2015
|
Revenues
|
2014
|
Revenues
|
||||||||||||
Revenues
|
$ | 12,312.9 | $ | 12,396.8 | ||||||||||||
Costs and Operating Expenses:
|
||||||||||||||||
Cost of revenues (c)
|
6,342.8 | 51.5% | 6,679.8 | 53.9% | ||||||||||||
Selling, general and administrative expenses (d)
|
2,755.4 | 22.4% | 2,984.0 | 24.1% | ||||||||||||
Amortization of acquisition-related intangible assets
|
988.8 | 8.0% | 992.4 | 8.0% | ||||||||||||
Research and development expenses
|
512.0 | 4.2% | 508.6 | 4.1% | ||||||||||||
Restructuring and other costs (income), net (e)
|
67.9 | 0.6% | (631.9 | ) | -5.1% | |||||||||||
10,666.9 | 86.6% | 10,532.9 | 85.0% | |||||||||||||
Operating Income
|
1,646.0 | 13.4% | 1,863.9 | 15.0% | ||||||||||||
Interest Income
|
21.9 | 38.4 | ||||||||||||||
Interest Expense
|
(311.9 | ) | (363.7 | ) | ||||||||||||
Other (Expense) Income, Net (f)
|
(2.3 | ) | 11.5 | |||||||||||||
Income Before Income Taxes
|
1,353.7 | 1,550.1 | ||||||||||||||
Benefit from (Provision for) Income Taxes (g)
|
20.3 | (258.6 | ) | |||||||||||||
Income from Continuing Operations
|
1,374.0 | 1,291.5 | ||||||||||||||
(Loss) Gain from Discontinued Operations, Net of Tax
|
(1.2 | ) | 1.7 | |||||||||||||
Net Income
|
$ | 1,372.8 | 11.1% | $ | 1,293.2 | 10.4% | ||||||||||
Earnings per Share from Continuing Operations:
|
||||||||||||||||
Basic
|
$ | 3.45 | $ | 3.25 | ||||||||||||
Diluted
|
$ | 3.42 | $ | 3.21 | ||||||||||||
Earnings per Share:
|
||||||||||||||||
Basic
|
$ | 3.45 | $ | 3.25 | ||||||||||||
Diluted
|
$ | 3.42 | $ | 3.22 | ||||||||||||
Weighted Average Shares:
|
||||||||||||||||
Basic
|
398.4 | 397.5 | ||||||||||||||
Diluted
|
401.7 | 401.7 | ||||||||||||||
Reconciliation of Adjusted Operating Income and Adjusted Operating Margin
|
||||||||||||||||
GAAP Operating Income (a)
|
$ | 1,646.0 | 13.4% | $ | 1,863.9 | 15.0% | ||||||||||
Cost of Revenues Charges (c)
|
2.5 | 0.0% | 326.7 | 2.6% | ||||||||||||
Selling, General and Administrative Costs, Net (d)
|
35.4 | 0.3% | 118.0 | 1.0% | ||||||||||||
Restructuring and Other Costs (Income), Net (e)
|
67.9 | 0.6% | (631.9 | ) | -5.1% | |||||||||||
Amortization of Acquisition-related Intangible Assets
|
988.8 | 8.0% | 992.4 | 8.0% | ||||||||||||
Adjusted Operating Income (b)
|
$ | 2,740.6 | 22.3% | $ | 2,669.1 | 21.5% | ||||||||||
Reconciliation of Adjusted Net Income
|
||||||||||||||||
GAAP Net Income (a)
|
$ | 1,372.8 | 11.1% | $ | 1,293.2 | 10.4% | ||||||||||
Cost of Revenues Charges (c)
|
2.5 | 0.0% | 326.7 | 2.6% | ||||||||||||
Selling, General and Administrative Costs, Net (d)
|
35.4 | 0.3% | 118.0 | 1.0% | ||||||||||||
Restructuring and Other Costs (Income), Net (e)
|
67.9 | 0.6% | (631.9 | ) | -5.1% | |||||||||||
Amortization of Acquisition-related Intangible Assets
|
988.8 | 8.0% | 992.4 | 8.0% | ||||||||||||
Other Expense (Income), Net (f)
|
15.2 | 0.1% | (6.8 | ) | -0.1% | |||||||||||
Provision for Income Taxes (g)
|
(365.2 | ) | -2.9% | (93.7 | ) | -0.7% | ||||||||||
Discontinued Operations, Net of Tax
|
1.2 | 0.0% | (1.7 | ) | 0.0% | |||||||||||
Adjusted Net Income (b)
|
$ | 2,118.6 | 17.2% | $ | 1,996.2 | 16.1% | ||||||||||
Reconciliation of Adjusted Earnings per Share
|
||||||||||||||||
GAAP EPS (a)
|
$ | 3.42 | $ | 3.22 | ||||||||||||
Cost of Revenues Charges, Net of Tax (c)
|
- | 0.59 | ||||||||||||||
Selling, General and Administrative Costs, Net of Tax (d)
|
0.04 | 0.21 | ||||||||||||||
Restructuring and Other Costs (Income), Net of Tax (e)
|
0.11 | (0.81 | ) | |||||||||||||
Amortization of Acquisition-related Intangible Assets, Net of Tax
|
1.71 | 1.80 | ||||||||||||||
Other Expense (Income), Net of Tax (f)
|
0.02 | (0.01 | ) | |||||||||||||
Provision for Income Taxes (g)
|
(0.03 | ) | (0.03 | ) | ||||||||||||
Discontinued Operations, Net of Tax
|
— | — | ||||||||||||||
Adjusted EPS (b)
|
$ | 5.27 | $ | 4.97 | ||||||||||||
Reconciliation of Free Cash Flow
|
||||||||||||||||
GAAP Net Cash Provided by Operating Activities (a)
|
$ | 1,588.8 | $ | 1,665.9 | ||||||||||||
Net Cash Used in Discontinued Operations
|
8.0 | 3.5 | ||||||||||||||
Purchases of Property, Plant and Equipment
|
(293.5 | ) | (270.9 | ) | ||||||||||||
Proceeds from Sale of Property, Plant and Equipment
|
7.5 | 19.7 | ||||||||||||||
Free Cash Flow (h)
|
$ | 1,310.8 | $ | 1,418.2 |
Segment Data
|
Nine Months Ended
|
|||||||||||||||
September 26,
|
% of
|
September 27,
|
% of
|
|||||||||||||
(In millions)
|
2015
|
Revenues
|
2014
|
Revenues
|
||||||||||||
Revenues
|
||||||||||||||||
Life Sciences Solutions
|
$ | 3,229.6 | 26.2% | $ | 3,010.5 | 24.3% | ||||||||||
Analytical Instruments
|
2,282.9 | 18.5% | 2,349.8 | 19.0% | ||||||||||||
Specialty Diagnostics
|
2,379.2 | 19.3% | 2,480.6 | 20.0% | ||||||||||||
Laboratory Products and Services
|
4,844.9 | 39.3% | 4,918.6 | 39.7% | ||||||||||||
Eliminations
|
(423.7 | ) | -3.3% | (362.7 | ) | -3.0% | ||||||||||
Consolidated Revenues
|
$ | 12,312.9 | 100.0% | $ | 12,396.8 | 100.0% | ||||||||||
Operating Income and Operating Margin
|
||||||||||||||||
Life Sciences Solutions
|
$ | 954.9 | 29.6% | $ | 850.0 | 28.2% | ||||||||||
Analytical Instruments
|
407.8 | 17.9% | 399.1 | 17.0% | ||||||||||||
Specialty Diagnostics
|
646.2 | 27.2% | 681.7 | 27.5% | ||||||||||||
Laboratory Products and Services
|
731.7 | 15.1% | 738.3 | 15.0% | ||||||||||||
Subtotal Reportable Segments
|
2,740.6 | 22.3% | 2,669.1 | 21.5% | ||||||||||||
Cost of Revenues Charges (c)
|
(2.5 | ) | 0.0% | (326.7 | ) | -2.6% | ||||||||||
Selling, General and Administrative Costs, Net (d)
|
(35.4 | ) | -0.3% | (118.0 | ) | -1.0% | ||||||||||
Restructuring and Other (Costs) Income, Net (e)
|
(67.9 | ) | -0.6% | 631.9 | 5.1% | |||||||||||
Amortization of Acquisition-related Intangible Assets
|
(988.8 | ) | -8.0% | (992.4 | ) | -8.0% | ||||||||||
GAAP Operating Income (a)
|
$ | 1,646.0 | 13.4% | $ | 1,863.9 | 15.0% |
(a) |
"GAAP" (reported) results were determined in accordance with U.S. generally accepted accounting principles (GAAP).
|
(b) |
Adjusted results are non-GAAP measures and, for income measures, exclude certain charges to cost of revenues (see note (c) for details); certain credits/charges to selling, general and administrative expenses (see note (d) for details); amortization of acquisition-related intangible assets; restructuring and other costs, net (see note (e) for details); certain other gains or losses that are either isolated or cannot be expected to occur again with any regularity or predictability (see note (f) for details); and the tax consequences of the preceding items and certain other tax items (see note (g) for details).
|
(c) |
Reported results in 2015 and 2014 include i) $0.7 and $303.1, respectively, of charges for the sale of inventories revalued at the date of acquisition and ii) $1.8 and $2.2, respectively, of accelerated depreciation on manufacturing assets to be abandoned due to facility consolidations. Reported results in 2014 also include a charge of $21.4 to conform the accounting policies of Life Technologies with the company's accounting policies.
|
(d) |
Reported results in 2015 and 2014 include i) $7.7 and $88.6, respectively, of third-party transaction/integration costs primarily related to the acquisitions of Life Technologies and in 2015, Alfa Aesar; ii) charges of $19.4 and $5.2, respectively, associated with product liability litigation; and iii) $(2.6) and $8.0, respectively, of (gains)/charges for changes in estimates of contingent consideration for acquisitions. Reported results in 2015 also include $10.9 of accelerated depreciation on fixed assets to be abandoned due to integration synergies. Reported results in 2014 also include a charge of
$16.2 to conform the accounting policies of Life Technologies with the company's accounting policies.
|
(e) |
Reported results in 2015 and 2014 include restructuring and other costs, net, consisting principally of severance, abandoned facility and other expenses of headcount reductions within several businesses and real estate consolidations. Reported results in 2015 include a gain of $7.6 on the sale of a product line, $5.0 of cash compensation contractually due to employees of an acquired business on the date of acquisition, a charge of $3.5 for settlement of litigation at an acquired business and a $0.9 charge associated with a previous sale of a business. Reported results in 2014
include gains of $894.4 on the sale of businesses, principally the sera and media, gene modulation and magnetic beads businesses and the Cole-Parmer business, and a charge of $91.7 for cash compensation to monetize certain equity awards held by Life Technologies employees at the date of acquisition.
|
(f) |
Reported results in 2015 and 2014 include $1.6 and $1.6, respectively, of amortization of acquisition-related intangible assets of the company's equity-method investments. Reported results in 2015 also include $7.5 of costs associated with entering into interest rate swap arrangements and losses of $6.1 on the early extinguishment of debt. Reported results in 2014 also include $9.4 of net gains from investments, offset in part by $1.0 of charges related to amortization of fees paid to obtain financing commitments related to the Life Technologies acquisition.
|
(g) |
Reported provision for income taxes includes i) $351.7 and $83.0 of incremental tax benefit in 2015 and 2014, respectively, for the pre-tax reconciling items between GAAP and adjusted net income; and ii) in 2015 and 2014, $13.5 and $10.7, respectively, of incremental tax benefit from adjusting the company's deferred tax balances as a result of tax rate changes.
|
(h) |
Free cash flow in 2014 was reduced by $308.8 of cash outlays related to the acquisition of Life Technologies including monetizing certain equity awards, severance obligations and third-party transaction/integration costs.
|
Notes: | |
Consolidated depreciation expense is $274.9 and $263.7 in 2015 and 2014, respectively.
|
|
Consolidated equity compensation expense included in both reported and adjusted results is $91.8 and $86.6 in 2015 and 2014, respectively.
|
|
Certain pre-acquisition equity awards of Life Technologies were converted to rights to receive future cash payments over the remaining vesting period. In addition to the equity compensation expense noted above, reported and adjusted results in 2015 and 2014 include $18.1 and $26.3, respectively, of expense for such cash payments.
|
Condensed Consolidated Balance Sheet (unaudited) | ||||||||
September 26, | December 31, | |||||||
(In millions) | 2015 | 2014 | ||||||
Assets
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents | $ | 503.4 | $ | 1,343.5 | ||||
Short-term investments
|
2.0 | 8.5 | ||||||
Accounts receivable, net
|
2,543.9 | 2,473.6 | ||||||
Inventories
|
1,987.2 | 1,859.5 | ||||||
Other current assets
|
989.4 | 854.7 | ||||||
Total current assets
|
6,025.9 | 6,539.8 | ||||||
Property, Plant and Equipment, Net
|
2,392.2 | 2,426.5 | ||||||
Acquisition-related Intangible Assets
|
13,015.1 | 14,110.1 | ||||||
Other Assets
|
967.6 | 933.1 | ||||||
Goodwill
|
18,746.3 | 18,842.6 | ||||||
Total Assets
|
$ | 41,147.1 | $ | 42,852.1 | ||||
Liabilities and Shareholders' Equity
|
||||||||
Current Liabilities:
|
||||||||
Short-term obligations and current maturities of long-term obligations
|
$ | 3,034.0 | $ | 2,212.4 | ||||
Other current liabilities
|
2,701.1 | 3,137.4 | ||||||
Total current liabilities
|
5,735.1 | 5,349.8 | ||||||
Other Long-term Liabilities
|
4,283.9 | 4,602.6 | ||||||
Long-term Obligations
|
10,277.9 | 12,351.6 | ||||||
Total Shareholders' Equity
|
20,850.2 | 20,548.1 | ||||||
Total Liabilities and Shareholders' Equity
|
$ | 41,147.1 | $ | 42,852.1 |
Condensed Consolidated Statement of Cash Flows (unaudited) | Nine Months Ended | |||||||
September 26, | September 27, | |||||||
(In millions) | 2015 | 2014 | ||||||
Operating Activities
|
||||||||
Net income
|
$ | 1,372.8 | $ | 1,293.2 | ||||
Loss (gain) from discontinued operations
|
1.2 | (1.7 | ) | |||||
Income from continuing operations
|
1,374.0 | 1,291.5 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
1,263.7 | 1,256.1 | ||||||
Change in deferred income taxes
|
(285.9 | ) | (583.8 | ) | ||||
Net gains on sale of businesses
|
(7.6 | ) | (894.4 | ) | ||||
Other non-cash expenses, net
|
76.4 | 356.4 | ||||||
Changes in assets and liabilities, excluding the effects
|
||||||||
of acquisitions and dispositions
|
(823.8 | ) | 243.6 | |||||
Net cash provided by continuing operations
|
1,596.8 | 1,669.4 | ||||||
Net cash used in discontinued operations
|
(8.0 | ) | (3.5 | ) | ||||
Net cash provided by operating activities
|
1,588.8 | 1,665.9 | ||||||
Investing Activities
|
||||||||
Acquisitions, net of cash acquired
|
(306.0 | ) | (13,056.1 | ) | ||||
Purchases of property, plant and equipment
|
(293.5 | ) | (270.9 | ) | ||||
Proceeds from sale of property, plant and equipment
|
7.5 | 19.7 | ||||||
Proceeds from sale of businesses, net of cash divested
|
— | 1,520.0 | ||||||
Other investing activities, net
|
16.0 | 130.6 | ||||||
Net cash used in investing activities
|
(576.0 | ) | (11,656.7 | ) | ||||
Financing Activities
|
||||||||
Net proceeds from issuance of debt
|
542.8 | 4,999.6 | ||||||
Repayment of long-term obligations
|
(2,481.0 | ) | (3,430.3 | ) | ||||
Increase in commercial paper, net
|
725.5 | 212.2 | ||||||
Decrease in short-term notes payable
|
— | (28.2 | ) | |||||
Purchases of company common stock
|
(500.0 | ) | — | |||||
Dividends paid
|
(180.7 | ) | (174.8 | ) | ||||
Net proceeds from issuance of company common stock
|
— | 2,942.0 | ||||||
Net proceeds from issuance of company common stock under employee stock plans
|
96.6 | 132.7 | ||||||
Tax benefits from stock-based compensation awards
|
55.6 | 61.1 | ||||||
Other financing activities, net
|
(5.9 | ) | (7.5 | ) | ||||
Net cash (used in) provided by financing activities
|
(1,747.1 | ) | 4,706.8 | |||||
Exchange Rate Effect on Cash
|
(105.8 | ) | (7.7 | ) | ||||
Decrease in Cash and Cash Equivalents
|
(840.1 | ) | (5,291.7 | ) | ||||
Cash and Cash Equivalents at Beginning of Period
|
1,343.5 | 5,826.0 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 503.4 | $ | 534.3 | ||||
Free Cash Flow (a)(b)
|
$ | 1,310.8 | $ | 1,418.2 |
(a) |
Free cash flow is net cash provided by operating activities of continuing operations less net purchases of property, plant and equipment.
|
(b) |
Free cash flow in 2014 was reduced by $308.8 of cash outlays related to the acquisition of Life Technologies including monetizing certain equity awards, severance obligations and third-party transaction/integration costs.
|
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