Business Segment and Geographical Information

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Business Segment and Geographical Information [Text Block]

Note 4. Business Segment and Geographical 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 for customers in research, academic, government, industrial and healthcare settings. The segment also includes a comprehensive offering of outsourced services used by the pharmaceutical and biotech industries for drug development, clinical trials logistics and commercial drug manufacturing.

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

(In millions)	2019		2018		2017
Revenues
Life Sciences Solutions	$	6,856	$	6,269	$	5,728
Analytical Instruments	5,522		5,469		4,821
Specialty Diagnostics	3,718		3,724		3,486
Laboratory Products and Services	10,599		10,035		7,825
Eliminations	(1,153)		(1,139)		(942)
Consolidated revenues	25,542		24,358		20,918
Segment Income (a)
Life Sciences Solutions	2,446		2,158		1,894
Analytical Instruments	1,273		1,247		1,027
Specialty Diagnostics	930		952		927
Laboratory Products and Services	1,324		1,258		1,004
Subtotal reportable segments (a)	5,973		5,615		4,852
Cost of revenues charges, net	(17)		(12)		(123)
Selling, general and administrative charges, net	(62)		(29)		(78)
Restructuring and other income (costs), net	413		(50)		(97)
Amortization of acquisition-related intangible assets	(1,713)		(1,741)		(1,594)
Consolidated operating income	4,594		3,783		2,960
Interest income (b)	224		137		81
Interest expense (b)	(676)		(667)		(592)
Other (expense) income, net (b)	(72)		9		(20)
Income from Continuing Operations Before Income Taxes	$	4,070	$	3,262	$	2,429
Depreciation
Life Sciences Solutions	$	130	$	119	$	129
Analytical Instruments	75		73		71
Specialty Diagnostics	67		76		72
Laboratory Products and Services	292		258		167
Consolidated depreciation	$	564	$	526	$	439

(a)Represents operating income before certain charges to cost of revenues and selling, general and administrative expenses; restructuring and other costs/income, net; and amortization of acquisition-related intangibles.

(b)The company does not allocate interest or other expense/income, net to its segments.

(In millions)	2019		2018		2017
Total Assets
Life Sciences Solutions	$	18,306	$	18,774	$	19,063
Analytical Instruments	9,896		9,907		9,960
Specialty Diagnostics	5,867		6,663		7,095
Laboratory Products and Services	21,761		19,051		19,181
Corporate/Other (c)	2,551		1,837		1,370
Consolidated total assets	$	58,381	$	56,232	$	56,669
Capital Expenditures
Life Sciences Solutions	$	151	$	107	$	118
Analytical Instruments	64		85		56
Specialty Diagnostics	83		103		87
Laboratory Products and Services	554		374		178
Corporate/Other	74		89		69
Consolidated capital expenditures	$	926	$	758	$	508

(c)Corporate assets consist primarily of cash and cash equivalents and property and equipment at the company's corporate offices.

Geographical Information

(In millions)	2019		2018		2017
Revenues (d)
United States	$	12,366	$	11,629	$	10,129
China	2,752		2,504		2,060
Other	10,424		10,225		8,729
Consolidated revenues	$	25,542	$	24,358	$	20,918
Long-lived Assets (e)
United States	$	3,099	$	2,444	$	2,349
Other	2,349		1,721		1,698
Consolidated long-lived assets	$	5,448	$	4,165	$	4,047

(d)Revenues are attributed to countries based on customer location.

(e)Includes property, plant and equipment, net, and beginning in 2019, operating lease right-of-use assets.