Delaware | 1-8002 | 04-2209186 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) |
168 Third Avenue | ||||
Waltham, Massachusetts | 02451 | |||
(Address of principal executive offices) | (Zip Code) |
(781) 622-1000 | ||
(Registrant’s telephone number including area code) |
THERMO FISHER SCIENTIFIC INC. | |||
Date: | October 25, 2017 | By: | /s/ Peter E. Hornstra |
Peter E. Hornstra | |||
Vice President and Chief Accounting Officer |
FOR IMMEDIATE RELEASE | |
Media Contact Information: Karen Kirkwood | Investor Contact Information: Ken Apicerno |
Phone: 781-622-1306 | Phone: 781-622-1294 |
E-mail: karen.kirkwood@thermofisher.com | E-mail: ken.apicerno@thermofisher.com |
Website: www.thermofisher.com |
• | Reported revenue of $5.1 billion. |
• | Reported GAAP diluted earnings per share (EPS) of $1.34. |
• | Launched four new electron microscopy systems for structural biology and materials science research, released the new iQ Series air-quality monitoring platform, and enabled the first FDA-approved gene therapy, which uses our proprietary magnetic bead technology. |
• | Opened Precision Medicine Customer Experience Center in Guangzhou, China, to showcase our range of technologies and services for advancing personalized healthcare. |
• | Completed acquisition of Patheon, adding leading contract development and manufacturing outsourcing services to significantly enhance our value proposition for biopharma customers. |
Consolidated Statement of Income (unaudited) (a)(b) | ||||||||||||||
Three Months Ended | ||||||||||||||
September 30, | % of | October 1, | % of | |||||||||||
(In millions except per share amounts) | 2017 | Revenues | 2016 | Revenues | ||||||||||
Revenues | $ | 5,116.2 | $ | 4,490.9 | ||||||||||
Costs and Operating Expenses: | ||||||||||||||
Cost of revenues (c) | 2,685.7 | 52.5 | % | 2,327.2 | 51.8 | % | ||||||||
Selling, general and administrative expenses (d) | 1,122.1 | 21.9 | % | 1,042.8 | 23.2 | % | ||||||||
Amortization of acquisition-related intangible assets | 405.0 | 7.9 | % | 341.6 | 7.6 | % | ||||||||
Research and development expenses | 218.1 | 4.3 | % | 183.3 | 4.1 | % | ||||||||
Restructuring and other costs, net (e) | 49.1 | 1.0 | % | 54.9 | 1.3 | % | ||||||||
4,480.0 | 87.6 | % | 3,949.8 | 88.0 | % | |||||||||
Operating Income | 636.2 | 12.4 | % | 541.1 | 12.0 | % | ||||||||
Interest Income | 24.4 | 10.4 | ||||||||||||
Interest Expense | (156.7 | ) | (113.3 | ) | ||||||||||
Other Expense, Net (f) | (23.3 | ) | (10.3 | ) | ||||||||||
Income Before Income Taxes | 480.6 | 427.9 | ||||||||||||
Benefit from Income Taxes (g) | 53.3 | 45.6 | ||||||||||||
Income from Continuing Operations | 533.9 | 473.5 | ||||||||||||
Loss from Discontinued Operations | — | — | ||||||||||||
Net Income | $ | 533.9 | 10.4 | % | $ | 473.5 | 10.5 | % | ||||||
Earnings per Share from Continuing Operations: | ||||||||||||||
Basic | $ | 1.35 | $ | 1.20 | ||||||||||
Diluted | $ | 1.34 | $ | 1.19 | ||||||||||
Earnings per Share: | ||||||||||||||
Basic | $ | 1.35 | $ | 1.20 | ||||||||||
Diluted | $ | 1.34 | $ | 1.19 | ||||||||||
Weighted Average Shares: | ||||||||||||||
Basic | 396.2 | 394.7 | ||||||||||||
Diluted | 399.6 | 397.4 | ||||||||||||
Reconciliation of Adjusted Operating Income and Adjusted Operating Margin | ||||||||||||||
GAAP Operating Income (a) | $ | 636.2 | 12.4 | % | $ | 541.1 | 12.0 | % | ||||||
Cost of Revenues Charges (c) | 45.1 | 0.9 | % | 32.4 | 0.7 | % | ||||||||
Selling, General and Administrative Charges, Net (d) | 36.4 | 0.7 | % | 62.5 | 1.4 | % | ||||||||
Restructuring and Other Costs, Net (e) | 49.1 | 1.0 | % | 54.9 | 1.3 | % | ||||||||
Amortization of Acquisition-related Intangible Assets | 405.0 | 7.9 | % | 341.6 | 7.6 | % | ||||||||
Adjusted Operating Income (b) | $ | 1,171.8 | 22.9 | % | $ | 1,032.5 | 23.0 | % | ||||||
Reconciliation of Adjusted Net Income | ||||||||||||||
GAAP Net Income (a) | $ | 533.9 | 10.4 | % | $ | 473.5 | 10.5 | % | ||||||
Cost of Revenues Charges (c) | 45.1 | 0.9 | % | 32.4 | 0.7 | % | ||||||||
Selling, General and Administrative Charges, Net (d) | 36.4 | 0.7 | % | 62.5 | 1.4 | % | ||||||||
Restructuring and Other Costs, Net (e) | 49.1 | 1.0 | % | 54.9 | 1.3 | % | ||||||||
Amortization of Acquisition-related Intangible Assets | 405.0 | 7.9 | % | 341.6 | 7.6 | % | ||||||||
Other Expense, Net (f) | 30.3 | 0.6 | % | 11.1 | 0.2 | % | ||||||||
Provision for Income Taxes (g) | (176.3 | ) | -3.4 | % | (167.5 | ) | -3.7 | % | ||||||
Discontinued Operations, Net of Tax | — | 0.0 | % | — | 0.0 | % | ||||||||
Adjusted Net Income (b) | $ | 923.5 | 18.1 | % | $ | 808.5 | 18.0 | % | ||||||
Reconciliation of Adjusted Earnings per Share | ||||||||||||||
GAAP EPS (a) | $ | 1.34 | $ | 1.19 | ||||||||||
Cost of Revenues Charges, Net of Tax (c) | 0.07 | 0.05 | ||||||||||||
Selling, General and Administrative Charges, Net of Tax (d) | 0.07 | 0.11 | ||||||||||||
Restructuring and Other Costs, Net of Tax (e) | 0.07 | 0.09 | ||||||||||||
Amortization of Acquisition-related Intangible Assets, Net of Tax | 0.70 | 0.59 | ||||||||||||
Other Expense, Net of Tax (f) | 0.05 | 0.02 | ||||||||||||
Provision for Income Taxes (g) | 0.01 | (0.02 | ) | |||||||||||
Discontinued Operations, Net of Tax | — | — | ||||||||||||
Adjusted EPS (b) | $ | 2.31 | $ | 2.03 | ||||||||||
Reconciliation of Free Cash Flow | ||||||||||||||
GAAP Net Cash Provided by Operating Activities (a) | $ | 928.6 | $ | 804.4 | ||||||||||
Net Cash Used in Discontinued Operations | 0.7 | 1.1 | ||||||||||||
Purchases of Property, Plant and Equipment | (111.4 | ) | (81.0 | ) | ||||||||||
Proceeds from Sale of Property, Plant and Equipment | 2.0 | 1.4 | ||||||||||||
Free Cash Flow | $ | 819.9 | $ | 725.9 |
Segment Data | Three Months Ended | |||||||||||||
September 30, | % of | October 1, | % of | |||||||||||
(In millions) | 2017 | Revenues | 2016 | Revenues | ||||||||||
Revenues | ||||||||||||||
Life Sciences Solutions | $ | 1,382.0 | 27.0 | % | $ | 1,312.3 | 29.2 | % | ||||||
Analytical Instruments | 1,189.6 | 23.3 | % | 898.0 | 20.0 | % | ||||||||
Specialty Diagnostics | 843.7 | 16.5 | % | 798.9 | 17.8 | % | ||||||||
Laboratory Products and Services | 1,933.0 | 37.8 | % | 1,674.5 | 37.3 | % | ||||||||
Eliminations | (232.1 | ) | -4.6 | % | (192.8 | ) | -4.3 | % | ||||||
Consolidated Revenues | $ | 5,116.2 | 100.0 | % | $ | 4,490.9 | 100.0 | % | ||||||
Operating Income and Operating Margin | ||||||||||||||
Life Sciences Solutions | $ | 453.0 | 32.8 | % | $ | 387.9 | 29.6 | % | ||||||
Analytical Instruments | 256.6 | 21.6 | % | 190.1 | 21.2 | % | ||||||||
Specialty Diagnostics | 218.8 | 25.9 | % | 214.4 | 26.8 | % | ||||||||
Laboratory Products and Services | 243.4 | 12.6 | % | 240.1 | 14.3 | % | ||||||||
Subtotal Reportable Segments | 1,171.8 | 22.9 | % | 1,032.5 | 23.0 | % | ||||||||
Cost of Revenues Charges (c) | (45.1 | ) | -0.9 | % | (32.4 | ) | -0.7 | % | ||||||
Selling, General and Administrative Charges, Net (d) | (36.4 | ) | -0.7 | % | (62.5 | ) | -1.4 | % | ||||||
Restructuring and Other Costs, Net (e) | (49.1 | ) | -1.0 | % | (54.9 | ) | -1.3 | % | ||||||
Amortization of Acquisition-related Intangible Assets | (405.0 | ) | -7.9 | % | (341.6 | ) | -7.6 | % | ||||||
GAAP Operating Income (a) | $ | 636.2 | 12.4 | % | $ | 541.1 | 12.0 | % | ||||||
(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 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 2017 and 2016 include i) $16.3 and $16.3, respectively, of charges for the sale of inventories revalued at the date of acquisition and ii) $26.8 and $16.1, respectively, of charges to conform the accounting policies of recently acquired businesses with the company's accounting policies. Reported results in 2017 include $2.0 of accelerated depreciation on manufacturing assets to be abandoned due to facility consolidations. | ||||||||||||||
(d) Reported results in 2017 and 2016 include i) $38.0 and $36.4, respectively, of third-party transaction/integration costs primarily related to recently completed acquisitions; ii) $(8.0) and $17.2, respectively, of (income)/charges associated with product liability litigation; iii) $6.1 and $8.5, respectively, of charges to conform the accounting policies of recently acquired businesses with the company's accounting policies; and iv) $0.3 and $0.4, respectively, of accelerated depreciation on fixed assets to be abandoned due to integration synergies. | ||||||||||||||
(e) Reported results in 2017 and 2016 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 2017 include $14.9 of net charges for litigation and $6.0 of compensation due at an acquired business on the date of acquisition. Reported results in 2016 include $9.9 of net charges for litigation. | ||||||||||||||
(f) Reported results in 2017 include a $28.8 charge related to fees paid to obtain bridge financing commitments for the acquisition of Patheon and $1.4 of losses on investments. Reported results in 2016 include $12.0 of charges related to fees paid to obtain bridge financing commitments for the acquisition of FEI, $0.3 of losses on the early extinguishment of debt and $0.5 of amortization of acquisition-related intangible assets of the company's equity-method investments, offset in part by a $1.7 gain on investment. | ||||||||||||||
(g) Reported provision for income taxes includes i) $179.1 and $158.9 of incremental tax benefit in 2017 and 2016, respectively, for the pre-tax reconciling items between GAAP and adjusted net income; and ii) in 2017 and 2016, $(2.8) and $8.6, respectively, of incremental tax (provision)/benefit from adjusting the company's deferred tax balances as a result of tax rate changes. | ||||||||||||||
Notes: | ||||||||||||||
Consolidated depreciation expense is $111.8 and $91.4 in 2017 and 2016, respectively. | ||||||||||||||
Consolidated Statement of Income (unaudited) (a)(b) | ||||||||||||||
Nine Months Ended | ||||||||||||||
September 30, | % of | October 1, | % of | |||||||||||
(In millions except per share amounts) | 2017 | Revenues | 2016 | Revenues | ||||||||||
Revenues | $ | 14,871.2 | $ | 13,320.9 | ||||||||||
Costs and Operating Expenses: | ||||||||||||||
Cost of revenues (c) | 7,711.2 | 51.9 | % | 6,912.5 | 51.9 | % | ||||||||
Selling, general and administrative expenses (d) | 3,246.3 | 21.8 | % | 3,027.1 | 22.7 | % | ||||||||
Amortization of acquisition-related intangible assets | 1,153.4 | 7.8 | % | 1,001.6 | 7.5 | % | ||||||||
Research and development expenses | 655.1 | 4.4 | % | 542.2 | 4.1 | % | ||||||||
Restructuring and other costs, net (e) | 95.1 | 0.6 | % | 140.9 | 1.1 | % | ||||||||
12,861.1 | 86.5 | % | 11,624.3 | 87.3 | % | |||||||||
Operating Income | 2,010.1 | 13.5 | % | 1,696.6 | 12.7 | % | ||||||||
Interest Income | 60.7 | 34.4 | ||||||||||||
Interest Expense | (425.7 | ) | (338.3 | ) | ||||||||||
Other Expense, Net (f) | (36.0 | ) | (20.7 | ) | ||||||||||
Income Before Income Taxes | 1,609.1 | 1,372.0 | ||||||||||||
Benefit from Income Taxes (g) | 88.4 | 20.6 | ||||||||||||
Income from Continuing Operations | 1,697.5 | 1,392.6 | ||||||||||||
Loss from Discontinued Operations, Net of Tax | (0.6 | ) | (0.3 | ) | ||||||||||
Net Income | $ | 1,696.9 | 11.4 | % | $ | 1,392.3 | 10.5 | % | ||||||
Earnings per Share from Continuing Operations: | ||||||||||||||
Basic | $ | 4.33 | $ | 3.53 | ||||||||||
Diluted | $ | 4.29 | $ | 3.50 | ||||||||||
Earnings per Share: | ||||||||||||||
Basic | $ | 4.32 | $ | 3.53 | ||||||||||
Diluted | $ | 4.29 | $ | 3.50 | ||||||||||
Weighted Average Shares: | ||||||||||||||
Basic | 392.4 | 394.8 | ||||||||||||
Diluted | 395.6 | 397.6 | ||||||||||||
Reconciliation of Adjusted Operating Income and Adjusted Operating Margin | ||||||||||||||
GAAP Operating Income (a) | $ | 2,010.1 | 13.5 | % | $ | 1,696.6 | 12.7 | % | ||||||
Cost of Revenues Charges (c) | 76.7 | 0.5 | % | 60.4 | 0.5 | % | ||||||||
Selling, General and Administrative Charges, Net (d) | 74.7 | 0.5 | % | 95.2 | 0.7 | % | ||||||||
Restructuring and Other Costs, Net (e) | 95.1 | 0.6 | % | 140.9 | 1.1 | % | ||||||||
Amortization of Acquisition-related Intangible Assets | 1,153.4 | 7.8 | % | 1,001.6 | 7.5 | % | ||||||||
Adjusted Operating Income (b) | $ | 3,410.0 | 22.9 | % | $ | 2,994.7 | 22.5 | % | ||||||
Reconciliation of Adjusted Net Income | ||||||||||||||
GAAP Net Income (a) | $ | 1,696.9 | 11.4 | % | $ | 1,392.3 | 10.5 | % | ||||||
Cost of Revenues Charges (c) | 76.7 | 0.5 | % | 60.4 | 0.5 | % | ||||||||
Selling, General and Administrative Charges, Net (d) | 74.7 | 0.5 | % | 95.2 | 0.7 | % | ||||||||
Restructuring and Other Costs, Net (e) | 95.1 | 0.6 | % | 140.9 | 1.1 | % | ||||||||
Amortization of Acquisition-related Intangible Assets | 1,153.4 | 7.8 | % | 1,001.6 | 7.5 | % | ||||||||
Other Expense, Net (f) | 30.5 | 0.2 | % | 26.6 | 0.2 | % | ||||||||
Provision for Income Taxes (g) | (481.4 | ) | -3.2 | % | (385.2 | ) | -3.0 | % | ||||||
Discontinued Operations, Net of Tax | 0.6 | 0.0 | % | 0.3 | 0.0 | % | ||||||||
Adjusted Net Income (b) | $ | 2,646.5 | 17.8 | % | $ | 2,332.1 | 17.5 | % | ||||||
Reconciliation of Adjusted Earnings per Share | ||||||||||||||
GAAP EPS (a) | $ | 4.29 | $ | 3.50 | ||||||||||
Cost of Revenues Charges, Net of Tax (c) | 0.13 | 0.10 | ||||||||||||
Selling, General and Administrative Charges, Net of Tax (d) | 0.13 | 0.18 | ||||||||||||
Restructuring and Other Costs, Net of Tax (e) | 0.16 | 0.24 | ||||||||||||
Amortization of Acquisition-related Intangible Assets, Net of Tax | 2.08 | 1.81 | ||||||||||||
Other Expense, Net of Tax (f) | 0.05 | 0.04 | ||||||||||||
(Benefit from) Provision for Income Taxes (g) | (0.15 | ) | — | |||||||||||
Discontinued Operations, Net of Tax | — | — | ||||||||||||
Adjusted EPS (b) | $ | 6.69 | $ | 5.87 | ||||||||||
Reconciliation of Free Cash Flow | ||||||||||||||
GAAP Net Cash Provided by Operating Activities (a) | $ | 2,138.5 | $ | 2,052.7 | ||||||||||
Net Cash Used in Discontinued Operations | 1.8 | 3.0 | ||||||||||||
Purchases of Property, Plant and Equipment | (292.8 | ) | (310.9 | ) | ||||||||||
Proceeds from Sale of Property, Plant and Equipment | 4.3 | 23.1 | ||||||||||||
Free Cash Flow | $ | 1,851.8 | $ | 1,767.9 |
Segment Data | Nine Months Ended | |||||||||||||
September 30, | % of | October 1, | % of | |||||||||||
(In millions) | 2017 | Revenues | 2016 | Revenues | ||||||||||
Revenues | ||||||||||||||
Life Sciences Solutions | $ | 4,150.1 | 27.9 | % | $ | 3,897.9 | 29.3 | % | ||||||
Analytical Instruments | 3,407.4 | 22.9 | % | 2,451.2 | 18.4 | % | ||||||||
Specialty Diagnostics | 2,571.9 | 17.3 | % | 2,504.8 | 18.8 | % | ||||||||
Laboratory Products and Services | 5,424.5 | 36.5 | % | 5,043.0 | 37.9 | % | ||||||||
Eliminations | (682.7 | ) | -4.6 | % | (576.0 | ) | -4.4 | % | ||||||
Consolidated Revenues | $ | 14,871.2 | 100.0 | % | $ | 13,320.9 | 100.0 | % | ||||||
Operating Income and Operating Margin | ||||||||||||||
Life Sciences Solutions | $ | 1,335.0 | 32.2 | % | $ | 1,128.8 | 29.0 | % | ||||||
Analytical Instruments | 681.0 | 20.0 | % | 446.7 | 18.2 | % | ||||||||
Specialty Diagnostics | 687.7 | 26.7 | % | 682.4 | 27.2 | % | ||||||||
Laboratory Products and Services | 706.3 | 13.0 | % | 736.8 | 14.6 | % | ||||||||
Subtotal Reportable Segments | 3,410.0 | 22.9 | % | 2,994.7 | 22.5 | % | ||||||||
Cost of Revenues Charges (c) | (76.7 | ) | -0.5 | % | (60.4 | ) | -0.5 | % | ||||||
Selling, General and Administrative Charges, Net (d) | (74.7 | ) | -0.5 | % | (95.2 | ) | -0.7 | % | ||||||
Restructuring and Other Costs, Net (e) | (95.1 | ) | -0.6 | % | (140.9 | ) | -1.1 | % | ||||||
Amortization of Acquisition-related Intangible Assets | (1,153.4 | ) | -7.8 | % | (1,001.6 | ) | -7.5 | % | ||||||
GAAP Operating Income (a) | $ | 2,010.1 | 13.5 | % | $ | 1,696.6 | 12.7 | % | ||||||
(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 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 2017 and 2016 include i) $47.3 and $38.7, respectively, of charges for the sale of inventories revalued at the date of acquisition; ii) $26.8 and $20.0 of charges to conform the accounting policies of recently acquired businesses with the company's accounting policies; and iii) $2.6 and $1.7, respectively, of accelerated depreciation on manufacturing assets to be abandoned due to facility consolidations. | ||||||||||||||
(d) Reported results in 2017 and 2016 include i) $49.9 and $63.1, respectively, of third-party transaction/integration costs primarily related to recently completed acquisitions; ii) $(8.0) and $17.2, respectively, of (income)/charges associated with product liability litigation; iii) $6.1 and $8.5, respectively, of charges to conform the accounting policies of recently acquired businesses with the company's accounting policies; iv) $25.4 and $(1.9), respectively, of charges/(credits) from changes in estimates of contingent acquisition consideration; and v) $1.3 and $8.3, respectively, of accelerated depreciation on fixed assets to be abandoned due to integration synergies. | ||||||||||||||
(e) Reported results in 2017 and 2016 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 2017 include $18.4 of litigation charges, $6.0 of compensation due at an acquired business on the date of the acquisition, and $1.8 of charges for the settlement of retirement plans. Reported results in 2016 include $6.8 of environmental remediation costs, $4.4 of net charges for litigation and $5.0 of gains on sales of real estate and settlement of a retirement plan. | ||||||||||||||
(f) Reported results in 2017 include a $32.2 charge related to fees paid to obtain bridge financing commitments for the acquisition of Patheon and $3.9 of losses on the early extinguishment of debt, offset in part by $5.7 of net gains from investments. Reported results in 2016 include $22.0 of charges related to fees paid to obtain bridge financing commitments for the acquisition of FEI, $6.5 of losses on the early extinguishment of debt and $1.6 of amortization of acquisition-related intangible assets of the company's equity-method investments, offset in part by $3.5 of net gains from investments. | ||||||||||||||
(g) Reported provision for income taxes includes i) $422.4 and $385.4 of incremental tax benefit in 2017 and 2016, respectively, for the pre-tax reconciling items between GAAP and adjusted net income; ii) $60.0 and $(0.2) of incremental tax benefit (provision) in 2017 and 2016, respectively, from adjusting the company's deferred tax balances as a result of tax rate changes and iii) $1.0 of incremental tax provision in 2017 due to an audit settlement. | ||||||||||||||
Notes: | ||||||||||||||
Consolidated depreciation expense is $306.1 and $282.6 in 2017 and 2016, respectively. | ||||||||||||||
Condensed Consolidated Balance Sheet (unaudited) | ||||||||
September 30, | December 31, | |||||||
(In millions) | 2017 | 2016 | ||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 741.1 | $ | 786.2 | ||||
Accounts receivable, net | 3,657.0 | 3,048.5 | ||||||
Inventories | 3,125.5 | 2,213.3 | ||||||
Other current assets | 1,320.4 | 973.0 | ||||||
Total current assets | 8,844.0 | 7,021.0 | ||||||
Property, Plant and Equipment, Net | 3,931.6 | 2,577.8 | ||||||
Acquisition-related Intangible Assets | 17,029.6 | 13,969.0 | ||||||
Other Assets | 1,051.2 | 1,011.9 | ||||||
Goodwill | 25,128.9 | 21,327.8 | ||||||
Total Assets | $ | 55,985.3 | $ | 45,907.5 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current Liabilities: | ||||||||
Short-term obligations and current maturities of long-term obligations | $ | 2,762.3 | $ | 1,255.5 | ||||
Other current liabilities | 4,269.0 | 3,610.3 | ||||||
Total current liabilities | 7,031.3 | 4,865.8 | ||||||
Other Long-term Liabilities | 5,021.8 | 4,130.0 | ||||||
Long-term Obligations | 19,230.4 | 15,372.4 | ||||||
Total Shareholders' Equity | 24,701.8 | 21,539.3 | ||||||
Total Liabilities and Shareholders' Equity | $ | 55,985.3 | $ | 45,907.5 |
Condensed Consolidated Statement of Cash Flows (unaudited) | ||||||||
Nine Months Ended | ||||||||
September 30, | October 1, | |||||||
(In millions) | 2017 | 2016 | ||||||
Operating Activities | ||||||||
Net income | $ | 1,696.9 | $ | 1,392.3 | ||||
Loss from discontinued operations | 0.6 | 0.3 | ||||||
Income from continuing operations | 1,697.5 | 1,392.6 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 1,459.5 | 1,284.2 | ||||||
Change in deferred income taxes | (483.6 | ) | (514.8 | ) | ||||
Other non-cash expenses, net | 229.9 | 189.7 | ||||||
Changes in assets and liabilities, excluding the effects of acquisitions and dispositions | (763.0 | ) | (296.0 | ) | ||||
Net cash provided by continuing operations | 2,140.3 | 2,055.7 | ||||||
Net cash used in discontinued operations | (1.8 | ) | (3.0 | ) | ||||
Net cash provided by operating activities | 2,138.5 | 2,052.7 | ||||||
Investing Activities | ||||||||
Acquisitions, net of cash acquired | (7,160.2 | ) | (5,143.0 | ) | ||||
Purchases of property, plant and equipment | (292.8 | ) | (310.9 | ) | ||||
Proceeds from sale of property, plant and equipment | 4.3 | 23.1 | ||||||
Other investing activities, net | 3.1 | 2.9 | ||||||
Net cash used in investing activities | (7,445.6 | ) | (5,427.9 | ) | ||||
Financing Activities | ||||||||
Net proceeds from issuance of debt | 6,459.0 | 7,605.8 | ||||||
Repayment of debt | (2,551.7 | ) | (2,307.1 | ) | ||||
Net proceeds from issuance of commercial paper | 6,030.2 | 5,628.0 | ||||||
Repayment of commercial paper | (5,809.1 | ) | (4,859.2 | ) | ||||
Purchases of company common stock | (750.0 | ) | (1,000.0 | ) | ||||
Dividends paid | (177.1 | ) | (179.2 | ) | ||||
Net proceeds from issuance of company common stock | 1,690.3 | — | ||||||
Net proceeds from issuance of company common stock under employee stock plans | 107.7 | 75.1 | ||||||
Other financing activities, net | (1.0 | ) | (13.6 | ) | ||||
Net cash provided by financing activities | 4,998.3 | 4,949.8 | ||||||
Exchange Rate Effect on Cash | 256.1 | (40.7 | ) | |||||
(Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | (52.7 | ) | 1,533.9 | |||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 810.8 | 466.3 | ||||||
Cash, Cash Equivalents and Restricted Cash at End of Period | $ | 758.1 | $ | 2,000.2 | ||||
Free Cash Flow (a) | $ | 1,851.8 | $ | 1,767.9 | ||||
(a) Free cash flow is net cash provided by operating activities of continuing operations less net purchases of property, plant and equipment. | ||||||||
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