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Business Segment Information
 6 Months Ended
Jul. 01, 2017
Segment Reporting [Abstract]  
Business Segment and Geographical Information [Text Block]
Note 3.
Business Segment Information
The company’s financial performance is reported in four segments. A description of each segment follows.
Life Sciences Solutions: provides an extensive portfolio of reagents, instruments and consumables used in biological and medical research, discovery and production of new drugs and vaccines as well as diagnosis of disease. These products and services are used by customers in pharmaceutical, biotechnology, agricultural, clinical, academic, and government markets.
Analytical Instruments: provides a broad offering of instruments, consumables, software and services that are used for a range of applications in the laboratory, on the production line and in the field. These products and services are used by customers in pharmaceutical, biotechnology, academic, government, environmental and other research and industrial markets, as well as the clinical laboratory.
Specialty Diagnostics: provides a wide range of diagnostic test kits, reagents, culture media, instruments and associated products used to increase the speed and accuracy of diagnoses. These products are used by customers in healthcare, clinical, pharmaceutical, industrial and food safety laboratories.
Laboratory Products and Services: provides virtually everything needed for the laboratory, including a combination of self-manufactured and sourced products and an extensive service offering. These products and services are used by customers in pharmaceutical, biotechnology, academic, government and other research and industrial markets, as well as the clinical laboratory.
In January 2017, in connection with a change in management responsibility for certain product lines, the company transferred its plastics for cell culture and vaccines/biologics; sample preparation and analysis; and production chemicals product lines to the Life Sciences Solutions segment from the Laboratory Products and Services segment and transferred its biochemical product line from the Life Sciences Solutions segment to the Laboratory Products and Services segment. These moves are consistent with the company’s historical practice of moving a product line between segments when a shift in strategic focus of either the product line or a segment more closely aligns the product line with a segment different than that in which it had previously been reported. Prior period segment information has been reclassified to reflect these transfers.
The company’s management evaluates segment operating performance based on operating income before certain charges/credits to cost of revenues and selling, general and administrative expenses, principally associated with acquisition accounting; restructuring and other costs/income including costs arising from facility consolidations such as severance and abandoned lease expense and gains and losses from the sale of real estate and product lines as well as from significant litigation-related matters; and amortization of acquisition-related intangible assets. The company uses this measure because it helps management understand and evaluate the segments’ core operating results and facilitates comparison of performance for determining compensation.
Business Segment Information
 
 
Three Months Ended
 
Six Months Ended
 
 
July 1,

 
July 2,

 
July 1,

 
July 2,

(In millions)
 
2017

 
2016

 
2017

 
2016

 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
Life Sciences Solutions
 
$
1,404.6

 
$
1,367.9

 
$
2,768.1

 
$
2,585.6

Analytical Instruments
 
1,165.8

 
793.9

 
2,217.8

 
1,553.2

Specialty Diagnostics
 
861.8

 
851.3

 
1,728.2

 
1,705.9

Laboratory Products and Services
 
1,792.5

 
1,719.7

 
3,491.5

 
3,368.5

Eliminations
 
(234.7
)
 
(197.6
)
 
(450.6
)
 
(383.2
)
 
 
 
 
 
 
 
 
 
Consolidated revenues
 
4,990.0

 
4,535.2

 
9,755.0

 
8,830.0

 
 
 
 
 
 
 
 
 
Segment Income (a)
 
 
 
 
 
 
 
 
Life Sciences Solutions
 
448.1

 
389.6

 
882.0

 
740.9

Analytical Instruments
 
232.6

 
144.9

 
424.4

 
256.6

Specialty Diagnostics
 
235.0

 
237.9

 
468.9

 
468.0

Laboratory Products and Services
 
246.7

 
259.8

 
462.9

 
496.7

 
 
 
 
 
 
 
 
 
Subtotal reportable segments (a)
 
1,162.4

 
1,032.2

 
2,238.2

 
1,962.2

 
 
 
 
 
 
 
 
 
Cost of revenues charges
 
(0.7
)
 
(17.4
)
 
(31.6
)
 
(28.0
)
Selling, general and administrative charges, net
 
(6.8
)
 
(3.8
)
 
(38.3
)
 
(32.7
)
Restructuring and other costs, net
 
(22.5
)
 
(35.4
)
 
(46.0
)
 
(86.0
)
Amortization of acquisition-related intangible assets
 
(380.9
)
 
(338.0
)
 
(748.4
)
 
(660.0
)
 
 
 
 
 
 
 
 
 
Consolidated operating income
 
751.5

 
637.6

 
1,373.9

 
1,155.5

Other expense, net (b)
 
(125.9
)
 
(116.5
)
 
(245.4
)
 
(211.4
)
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
 
$
625.6

 
$
521.1

 
$
1,128.5

 
$
944.1

 
 
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
 
 
Life Sciences Solutions
 
$
32.5

 
$
37.6

 
$
65.2

 
$
74.6

Analytical Instruments
 
17.2

 
9.9

 
34.1

 
19.5

Specialty Diagnostics
 
18.1

 
18.2

 
35.3

 
36.2

Laboratory Products and Services
 
29.5

 
31.4

 
59.7

 
60.9

 
 
 
 
 
 
 
 
 
Consolidated depreciation
 
$
97.3

 
$
97.1

 
$
194.3

 
$
191.2

(a)
Represents operating income before certain charges to cost of revenues and selling, general and administrative expenses; restructuring and other costs, net; and amortization of acquisition-related intangibles.
(b)
The company does not allocate other expense, net to its segments.