Delaware | 1-8002 | 04-2209186 | ||
(State of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, $1.00 par value | TMO | New York Stock Exchange | ||
Floating Rate Notes due 2019 | TMO 19A | New York Stock Exchange | ||
Floating Rate Notes due 2020 | TMO /20A | New York Stock Exchange | ||
1.500% Notes due 2020 | TMO 20A | New York Stock Exchange | ||
2.150% Notes due 2022 | TMO 22A | New York Stock Exchange | ||
0.750% Notes due 2024 | TMO 24A | New York Stock Exchange | ||
2.000% Notes due 2025 | TMO 25 | New York Stock Exchange | ||
1.400% Notes due 2026 | TMO 26A | New York Stock Exchange | ||
1.450% Notes due 2027 | TMO 27 | New York Stock Exchange | ||
1.375% Notes due 2028 | TMO 28 | New York Stock Exchange | ||
1.950% Notes due 2029 | TMO 29 | New York Stock Exchange | ||
2.875% Notes due 2037 | TMO 37 | New York Stock Exchange |
THERMO FISHER SCIENTIFIC INC. | |||
Date: | July 24, 2019 | 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 |
• | Second quarter revenue increased 4% to $6.32 billion. |
• | Second quarter GAAP diluted earnings per share (EPS) increased 50% to $2.77. |
• | Second quarter adjusted EPS increased 11% to $3.04. |
• | Strengthened our mass spectrometry leadership with new instruments, workflows and software, highlighted by two new-generation Thermo Scientific Orbitrap systems - the Exploris 480 and Eclipse Tribrid - and a new workflow to advance biotherapeutics, called the HR Multi-Attribute Method. In genetic analysis, we launched the Applied Biosystems QuantStudio 6 and 7 Pro Real-Time PCR systems to automate qPCR workflows. |
• | Continued to expand our bioproduction capabilities to meet customer demand for biologics, committing $50 million to add manufacturing capacity for single-use technologies at our facilities in the U.S. and Europe, and establishing a Bioprocessing Collaboration Center at our Pharma Services site in St. Louis, Missouri. |
• | Opened Customer Experience Center in Seoul, South Korea, to showcase our depth of capabilities for life sciences applications and create a hub for customers to work with our experts and facilitate strategic partnerships within Korea’s scientific community. |
• | Significantly expanded our CDMO capabilities for pharma and biotech customers, completing the acquisition of Brammer Bio, a leader in viral vector manufacturing for gene and cell therapy, for $1.7 billion and announcing our intent to acquire a GlaxoSmithKline site in Cork, Ireland, for the production of complex Active Pharmaceutical Ingredients (APIs). |
• | Completed our previously announced divestiture of the Anatomical Pathology business for $1.14 billion. |
Consolidated Statement of Income (unaudited) (a)(b) | ||||||||||||||
Three Months Ended | ||||||||||||||
June 29, | % of | June 30, | % of | |||||||||||
(In millions except per share amounts) | 2019 | Revenues | 2018 | Revenues | ||||||||||
Revenues | $ | 6,316 | $ | 6,078 | ||||||||||
Costs and Operating Expenses: | ||||||||||||||
Cost of revenues (c) | 3,368 | 53.3 | % | 3,211 | 52.8 | % | ||||||||
Selling, general and administrative expenses (d) | 1,261 | 20.0 | % | 1,230 | 20.2 | % | ||||||||
Amortization of acquisition-related intangible assets | 429 | 6.8 | % | 441 | 7.3 | % | ||||||||
Research and development expenses | 246 | 3.9 | % | 242 | 4.0 | % | ||||||||
Restructuring and other (income) costs, net (e) | (484 | ) | -7.7 | % | 17 | 0.3 | % | |||||||
4,820 | 76.3 | % | 5,141 | 84.6 | % | |||||||||
Operating Income | 1,496 | 23.7 | % | 937 | 15.4 | % | ||||||||
Interest Income | 60 | 31 | ||||||||||||
Interest Expense | (181 | ) | (170 | ) | ||||||||||
Other Income, Net (f) | 18 | 8 | ||||||||||||
Income Before Income Taxes | 1,393 | 806 | ||||||||||||
Provision for Income Taxes (g) | (274 | ) | (54 | ) | ||||||||||
Net Income | $ | 1,119 | 17.7 | % | $ | 752 | 12.4 | % | ||||||
Earnings per Share: | ||||||||||||||
Basic | $ | 2.80 | $ | 1.87 | ||||||||||
Diluted | $ | 2.77 | $ | 1.85 | ||||||||||
Weighted Average Shares: | ||||||||||||||
Basic | 400 | 403 | ||||||||||||
Diluted | 403 | 406 | ||||||||||||
Reconciliation of Adjusted Operating Income and Adjusted Operating Margin | ||||||||||||||
GAAP Operating Income (a) | $ | 1,496 | 23.7 | % | $ | 937 | 15.4 | % | ||||||
Cost of Revenues Charges, Net (c) | 5 | 0.1 | % | 5 | 0.1 | % | ||||||||
Selling, General and Administrative Charges, Net (d) | 36 | 0.6 | % | 3 | 0.0 | % | ||||||||
Restructuring and Other (Income) Costs, Net (e) | (484 | ) | -7.7 | % | 17 | 0.3 | % | |||||||
Amortization of Acquisition-related Intangible Assets | 429 | 6.8 | % | 441 | 7.3 | % | ||||||||
Adjusted Operating Income (b) | $ | 1,482 | 23.5 | % | $ | 1,403 | 23.1 | % | ||||||
Reconciliation of Adjusted Net Income | ||||||||||||||
GAAP Net Income (a) | $ | 1,119 | $ | 752 | ||||||||||
Cost of Revenues Charges, Net (c) | 5 | 5 | ||||||||||||
Selling, General and Administrative Charges, Net (d) | 36 | 3 | ||||||||||||
Restructuring and Other (Income) Costs, Net (e) | (484 | ) | 17 | |||||||||||
Amortization of Acquisition-related Intangible Assets | 429 | 441 | ||||||||||||
Other Expense, Net (f) | — | 1 | ||||||||||||
Provision for (Benefit from) Income Taxes (g) | 122 | (103 | ) | |||||||||||
Adjusted Net Income (b) | $ | 1,227 | $ | 1,116 | ||||||||||
Reconciliation of Adjusted Earnings per Share | ||||||||||||||
GAAP EPS (a) | $ | 2.77 | $ | 1.85 | ||||||||||
Cost of Revenues Charges, Net of Tax (c) | 0.01 | 0.01 | ||||||||||||
Selling, General and Administrative Charges, Net of Tax (d) | 0.07 | 0.01 | ||||||||||||
Restructuring and Other (Income) Costs, Net of Tax (e) | (0.74 | ) | 0.03 | |||||||||||
Amortization of Acquisition-related Intangible Assets, Net of Tax | 0.84 | 0.83 | ||||||||||||
Other Expense, Net of Tax (f) | — | 0.01 | ||||||||||||
Provision for Income Taxes (g) | 0.09 | 0.01 | ||||||||||||
Adjusted EPS (b) | $ | 3.04 | $ | 2.75 | ||||||||||
Reconciliation of Free Cash Flow | ||||||||||||||
GAAP Net Cash Provided by Operating Activities (a) | $ | 1,294 | $ | 1,444 | ||||||||||
Purchases of Property, Plant and Equipment | (220 | ) | (183 | ) | ||||||||||
Proceeds from Sale of Property, Plant and Equipment | 6 | 1 | ||||||||||||
Free Cash Flow | $ | 1,080 | $ | 1,262 |
Segment Data | Three Months Ended | |||||||||||||
June 29, | % of | June 30, | % of | |||||||||||
(In millions) | 2019 | Revenues | 2018 | Revenues | ||||||||||
Revenues | ||||||||||||||
Life Sciences Solutions | $ | 1,710 | 27.1 | % | $ | 1,569 | 25.8 | % | ||||||
Analytical Instruments | 1,324 | 21.0 | % | 1,311 | 21.6 | % | ||||||||
Specialty Diagnostics | 943 | 14.9 | % | 932 | 15.3 | % | ||||||||
Laboratory Products and Services | 2,633 | 41.7 | % | 2,550 | 42.0 | % | ||||||||
Eliminations | (294 | ) | -4.7 | % | (284 | ) | -4.7 | % | ||||||
Consolidated Revenues | $ | 6,316 | 100.0 | % | $ | 6,078 | 100.0 | % | ||||||
Operating Income and Operating Margin | ||||||||||||||
Life Sciences Solutions | $ | 609 | 35.6 | % | $ | 522 | 33.3 | % | ||||||
Analytical Instruments | 286 | 21.6 | % | 291 | 22.2 | % | ||||||||
Specialty Diagnostics | 242 | 25.7 | % | 253 | 27.2 | % | ||||||||
Laboratory Products and Services | 345 | 13.1 | % | 337 | 13.2 | % | ||||||||
Subtotal Reportable Segments | 1,482 | 23.5 | % | 1,403 | 23.1 | % | ||||||||
Cost of Revenues Charges, Net (c) | (5 | ) | -0.1 | % | (5 | ) | -0.1 | % | ||||||
Selling, General and Administrative Charges, Net (d) | (36 | ) | -0.6 | % | (3 | ) | 0.0 | % | ||||||
Restructuring and Other Income (Costs), Net (e) | 484 | 7.7 | % | (17 | ) | -0.3 | % | |||||||
Amortization of Acquisition-related Intangible Assets | (429 | ) | -6.8 | % | (441 | ) | -7.3 | % | ||||||
GAAP Operating Income (a) | $ | 1,496 | 23.7 | % | $ | 937 | 15.4 | % | ||||||
(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 2019 and 2018 include i) $5 and $5, respectively, of charges for the sale of inventories revalued at the date of acquisition. | ||||||||||||||
(d) Reported results in 2019 and 2018 include i) $37 and $4, respectively, of certain third-party expenses, principally transaction/integration costs related to acquisitions and ii) $3 and $1 of credits from changes in estimates of contingent acquisition consideration. Reported results in 2019 also include $2 of accelerated depreciation on fixed assets to be abandoned due to integration synergies and facility consolidations. | ||||||||||||||
(e) Reported results in 2019 and 2018 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 2019 include $505 of gain on the sale of the Anatomical Pathology business and $6 of charges for impairment of acquired technology in development. Reported results in 2018 include $1 of hurricane response costs. | ||||||||||||||
(f) Reported results in 2019 include $1 of net gains from investments and $1 of net charges for the settlement/curtailment of pension plans. Reported results in 2018 include $2 of net gains from investments, $1 of losses on the early extinguishment of debt and $2 of net charges for the settlement/curtailment of pension plans. | ||||||||||||||
(g) Reported provision for income taxes includes i) $(86) and $109 of incremental tax (provision) benefit in 2019 and 2018, respectively, for the pre-tax reconciling items between GAAP and adjusted net income; ii) $7 and $6 in 2019 and 2018, respectively, of incremental tax provision from adjusting the company's non-U.S. deferred tax balances as a result of tax rate changes; and iii) $29 of incremental tax provision in 2019 principally to adjust the impacts of U.S. tax reform legislation based on new guidance/regulations issued during the period. | ||||||||||||||
Notes: | ||||||||||||||
Consolidated depreciation expense is $142 and $130 in 2019 and 2018, respectively. | ||||||||||||||
Consolidated Statement of Income (unaudited) (a)(b) | ||||||||||||||
Six Months Ended | ||||||||||||||
June 29, | % of | June 30, | % of | |||||||||||
(In millions except per share amounts) | 2019 | Revenues | 2018 | Revenues | ||||||||||
Revenues | $ | 12,441 | $ | 11,931 | ||||||||||
Costs and Operating Expenses: | ||||||||||||||
Cost of revenues (c) | 6,661 | 53.5 | % | 6,355 | 53.3 | % | ||||||||
Selling, general and administrative expenses (d) | 2,492 | 20.0 | % | 2,430 | 20.4 | % | ||||||||
Amortization of acquisition-related intangible assets | 851 | 6.8 | % | 885 | 7.4 | % | ||||||||
Research and development expenses | 494 | 4.0 | % | 476 | 4.0 | % | ||||||||
Restructuring and other (income) costs, net (e) | (473 | ) | -3.8 | % | 62 | 0.5 | % | |||||||
10,025 | 80.6 | % | 10,208 | 85.6 | % | |||||||||
Operating Income | 2,416 | 19.4 | % | 1,723 | 14.4 | % | ||||||||
Interest Income | 127 | 51 | ||||||||||||
Interest Expense | (370 | ) | (333 | ) | ||||||||||
Other Income (Expense), Net (f) | 37 | (1 | ) | |||||||||||
Income Before Income Taxes | 2,210 | 1,440 | ||||||||||||
Provision for Income Taxes (g) | (276 | ) | (109 | ) | ||||||||||
Net Income | $ | 1,934 | 15.5 | % | $ | 1,331 | 11.2 | % | ||||||
Earnings per Share: | ||||||||||||||
Basic | $ | 4.84 | $ | 3.31 | ||||||||||
Diluted | $ | 4.80 | $ | 3.28 | ||||||||||
Weighted Average Shares: | ||||||||||||||
Basic | 400 | 402 | ||||||||||||
Diluted | 403 | 406 | ||||||||||||
Reconciliation of Adjusted Operating Income and Adjusted Operating Margin | ||||||||||||||
GAAP Operating Income (a) | $ | 2,416 | 19.4 | % | $ | 1,723 | 14.4 | % | ||||||
Cost of Revenues Charges (c) | 11 | 0.1 | % | 8 | 0.1 | % | ||||||||
Selling, General and Administrative Charges, Net (d) | 47 | 0.4 | % | 11 | 0.1 | % | ||||||||
Restructuring and Other (Income) Costs, Net (e) | (473 | ) | -3.8 | % | 62 | 0.5 | % | |||||||
Amortization of Acquisition-related Intangible Assets | 851 | 6.8 | % | 885 | 7.4 | % | ||||||||
Adjusted Operating Income (b) | $ | 2,852 | 22.9 | % | $ | 2,689 | 22.5 | % | ||||||
Reconciliation of Adjusted Net Income | ||||||||||||||
GAAP Net Income (a) | $ | 1,934 | $ | 1,331 | ||||||||||
Cost of Revenues Charges (c) | 11 | 8 | ||||||||||||
Selling, General and Administrative Charges, Net (d) | 47 | 11 | ||||||||||||
Restructuring and Other (Income) Costs, Net (e) | (473 | ) | 62 | |||||||||||
Amortization of Acquisition-related Intangible Assets | 851 | 885 | ||||||||||||
Other (Income) Expense, Net (f) | (7 | ) | 9 | |||||||||||
Benefit from Income Taxes (g) | (3 | ) | (178 | ) | ||||||||||
Adjusted Net Income (b) | $ | 2,360 | $ | 2,128 | ||||||||||
Reconciliation of Adjusted Earnings per Share | ||||||||||||||
GAAP EPS (a) | $ | 4.80 | $ | 3.28 | ||||||||||
Cost of Revenues Charges, Net of Tax (c) | 0.02 | 0.01 | ||||||||||||
Selling, General and Administrative Charges, Net of Tax (d) | 0.09 | 0.02 | ||||||||||||
Restructuring and Other (Income) Costs, Net of Tax (e) | (0.72 | ) | 0.12 | |||||||||||
Amortization of Acquisition-related Intangible Assets, Net of Tax | 1.64 | 1.72 | ||||||||||||
Other (Income) Expense, Net of Tax (f) | (0.01 | ) | 0.02 | |||||||||||
Provision for Income Taxes (g) | 0.03 | 0.07 | ||||||||||||
Adjusted EPS (b) | $ | 5.85 | $ | 5.24 | ||||||||||
Reconciliation of Free Cash Flow | ||||||||||||||
GAAP Net Cash Provided by Operating Activities (a) | $ | 1,943 | $ | 1,522 | ||||||||||
Purchases of Property, Plant and Equipment | (421 | ) | (301 | ) | ||||||||||
Proceeds from Sale of Property, Plant and Equipment | 12 | 3 | ||||||||||||
Free Cash Flow | $ | 1,534 | $ | 1,224 |
Segment Data | Six Months Ended | |||||||||||||
June 29, | % of | June 30, | % of | |||||||||||
(In millions) | 2019 | Revenues | 2018 | Revenues | ||||||||||
Revenues | ||||||||||||||
Life Sciences Solutions | $ | 3,317 | 26.7 | % | $ | 3,068 | 25.7 | % | ||||||
Analytical Instruments | 2,646 | 21.3 | % | 2,568 | 21.5 | % | ||||||||
Specialty Diagnostics | 1,900 | 15.3 | % | 1,879 | 15.7 | % | ||||||||
Laboratory Products and Services | 5,146 | 41.4 | % | 4,963 | 41.6 | % | ||||||||
Eliminations | (568 | ) | -4.7 | % | (547 | ) | -4.5 | % | ||||||
Consolidated Revenues | $ | 12,441 | 100.0 | % | $ | 11,931 | 100.0 | % | ||||||
Operating Income and Operating Margin | ||||||||||||||
Life Sciences Solutions | $ | 1,170 | 35.3 | % | $ | 1,039 | 33.9 | % | ||||||
Analytical Instruments | 568 | 21.4 | % | 537 | 20.9 | % | ||||||||
Specialty Diagnostics | 484 | 25.5 | % | 496 | 26.4 | % | ||||||||
Laboratory Products and Services | 630 | 12.2 | % | 617 | 12.4 | % | ||||||||
Subtotal Reportable Segments | 2,852 | 22.9 | % | 2,689 | 22.5 | % | ||||||||
Cost of Revenues Charges (c) | (11 | ) | -0.1 | % | (8 | ) | -0.1 | % | ||||||
Selling, General and Administrative Charges, Net (d) | (47 | ) | -0.4 | % | (11 | ) | -0.1 | % | ||||||
Restructuring and Other Income (Costs), Net (e) | 473 | 3.8 | % | (62 | ) | -0.5 | % | |||||||
Amortization of Acquisition-related Intangible Assets | (851 | ) | -6.8 | % | (885 | ) | -7.4 | % | ||||||
GAAP Operating Income (a) | $ | 2,416 | 19.4 | % | $ | 1,723 | 14.4 | % | ||||||
(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 2019 and 2018 include i) $11 and $8 respectively, of charges for the sale of inventories revalued at the date of acquisition. | ||||||||||||||
(d) Reported results in 2019 and 2018 include i) $48 and $12, respectively, of certain third-party expenses, principally transaction/integration costs related to acquisitions and a divestiture and ii) $3 and $1 of credits from changes in estimates of contingent acquisition consideration. Reported results in 2019 also include $2 of accelerated depreciation on fixed assets to be abandoned due to integration synergies and facility consolidations. | ||||||||||||||
(e) Reported results in 2019 and 2018 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 2019 include $505 of gain on sale of the Anatomical Pathology business and $6 of charges for impairment of acquired technology in development. Reported results in 2018 include $6 of net charges for litigation and $4 of hurricane response costs. | ||||||||||||||
(f) Reported results in 2019 include $8 of gains from investments and $1 of net charges for the settlement/curtailment of pension plans. Reported results in 2018 include $4 of net losses from investments, $3 of losses on the early extinguishment of debt and $2 of net charges for the settlement/curtailment of pension plans. | ||||||||||||||
(g) Reported provision for income taxes includes i) $16 and $208 of incremental tax benefit in 2019 and 2018, respectively, for the pre-tax reconciling items between GAAP and adjusted net income; ii) $11 and $9 in 2019 and 2018, respectively, of incremental tax provision from adjusting the company's non-U.S. deferred tax balances as a result of tax rate changes; and iii) $2 and $21 of incremental tax provision in 2019 and 2018, respectively, principally to adjust the impacts of U.S. tax reform legislation based on new guidance/regulations issued during the period. | ||||||||||||||
Notes: | ||||||||||||||
Consolidated depreciation expense is $275 and $261 in 2019 and 2018, respectively. | ||||||||||||||
Condensed Consolidated Balance Sheet (unaudited) | ||||||||
June 29, | December 31, | |||||||
(In millions) | 2019 | 2018 | ||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 2,288 | $ | 2,103 | ||||
Accounts receivable, net | 4,129 | 4,136 | ||||||
Inventories | 3,209 | 3,005 | ||||||
Other current assets | 1,597 | 1,381 | ||||||
Total current assets | 11,223 | 10,625 | ||||||
Property, Plant and Equipment, Net | 4,394 | 4,165 | ||||||
Acquisition-related Intangible Assets | 14,863 | 14,978 | ||||||
Other Assets | 1,733 | 1,117 | ||||||
Goodwill | 25,757 | 25,347 | ||||||
Total Assets | $ | 57,970 | $ | 56,232 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current Liabilities: | ||||||||
Short-term obligations and current maturities of long-term obligations | $ | 2,377 | $ | 1,271 | ||||
Other current liabilities | 5,132 | 4,876 | ||||||
Total current liabilities | 7,509 | 6,147 | ||||||
Other Long-term Liabilities | 5,069 | 4,780 | ||||||
Long-term Obligations | 16,663 | 17,719 | ||||||
Total Shareholders' Equity | 28,729 | 27,586 | ||||||
Total Liabilities and Shareholders' Equity | $ | 57,970 | $ | 56,232 |
Condensed Consolidated Statement of Cash Flows (unaudited) | ||||||||
Six Months Ended | ||||||||
June 29, | June 30, | |||||||
(In millions) | 2019 | 2018 | ||||||
Operating Activities | ||||||||
Net income | $ | 1,934 | $ | 1,331 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 1,126 | 1,146 | ||||||
Change in deferred income taxes | (365 | ) | (99 | ) | ||||
Net gain on sale of business | (505 | ) | — | |||||
Other non-cash expenses, net | 144 | 154 | ||||||
Changes in assets and liabilities, excluding the effects of acquisitions and disposition | (391 | ) | (1,010 | ) | ||||
Net cash provided by operating activities | 1,943 | 1,522 | ||||||
Investing Activities | ||||||||
Acquisitions, net of cash acquired | (1,686 | ) | (59 | ) | ||||
Purchases of property, plant and equipment | (421 | ) | (301 | ) | ||||
Proceeds from sale of property, plant and equipment | 12 | 3 | ||||||
Proceeds from sale of business, net of cash divested | 1,126 | — | ||||||
Other investing activities, net | 19 | (7 | ) | |||||
Net cash used in investing activities | (950 | ) | (364 | ) | ||||
Financing Activities | ||||||||
Repayment of debt | (3 | ) | (1,353 | ) | ||||
Net proceeds from issuance of commercial paper | 1,895 | 2,761 | ||||||
Repayment of commercial paper | (1,855 | ) | (2,655 | ) | ||||
Purchases of company common stock | (750 | ) | — | |||||
Dividends paid | (144 | ) | (129 | ) | ||||
Net proceeds from issuance of company common stock under employee stock plans | 122 | 78 | ||||||
Other financing activities, net | — | (50 | ) | |||||
Net cash used in financing activities | (735 | ) | (1,348 | ) | ||||
Exchange Rate Effect on Cash | (61 | ) | (215 | ) | ||||
Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 197 | (405 | ) | |||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 2,117 | 1,361 | ||||||
Cash, Cash Equivalents and Restricted Cash at End of Period | $ | 2,314 | $ | 956 | ||||
Free Cash Flow (a) | $ | 1,534 | $ | 1,224 | ||||
(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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