(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 | ||||||||||||
THERMO FISHER SCIENTIFIC INC. | |||||||||||
Date: | February 2, 2022 | By: | /s/ Joseph R. Holmes | ||||||||
Joseph R. Holmes | |||||||||||
Vice President and Chief Accounting Officer |
FOR IMMEDIATE RELEASE | |||||
Media Contact Information: Ron O'Brien Thermo Fisher Scientific | Investor Contact Information: Rafael Tejada Thermo Fisher Scientific | ||||
Phone: 781-622-1242 | Phone: 781-622-1356 | ||||
E-mail: ron.obrien@thermofisher.com | E-mail: rafael.tejada@thermofisher.com |
Condensed Consolidated Statement of Income (unaudited) | ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
December 31, | % of | December 31, | % of | |||||||||||||||||||||||
(In millions except per share amounts) | 2021 | Revenues | 2020 | Revenues | ||||||||||||||||||||||
Revenues | $ | 10,702 | $ | 10,550 | ||||||||||||||||||||||
Costs and operating expenses: | ||||||||||||||||||||||||||
Cost of revenues (a) | 5,302 | 49.5 | % | 4,867 | 46.1 | % | ||||||||||||||||||||
Selling, general and administrative expenses (b) | 1,958 | 18.3 | % | 1,793 | 17.0 | % | ||||||||||||||||||||
Amortization of acquisition-related intangible assets | 466 | 4.4 | % | 411 | 3.9 | % | ||||||||||||||||||||
Research and development expenses | 392 | 3.7 | % | 376 | 3.6 | % | ||||||||||||||||||||
Restructuring and other costs (c) | 46 | 0.4 | % | 32 | 0.3 | % | ||||||||||||||||||||
8,164 | 76.3 | % | 7,479 | 70.9 | % | |||||||||||||||||||||
Operating income | 2,538 | 23.7 | % | 3,071 | 29.1 | % | ||||||||||||||||||||
Interest income | 11 | 12 | ||||||||||||||||||||||||
Interest expense | (161) | (146) | ||||||||||||||||||||||||
Other expense (d) | (526) | (43) | ||||||||||||||||||||||||
Income before income taxes | 1,862 | 2,894 | ||||||||||||||||||||||||
Provision for income taxes (e) | (202) | (394) | ||||||||||||||||||||||||
Equity in losses of unconsolidated entities | (1) | (1) | ||||||||||||||||||||||||
Net income | 1,659 | 2,499 | ||||||||||||||||||||||||
Less: net income attributable to noncontrolling interests and redeemable noncontrolling interest | 1 | 1 | ||||||||||||||||||||||||
Net income attributable to Thermo Fisher Scientific Inc. | $ | 1,658 | 15.5 | % | $ | 2,498 | 23.7 | % | ||||||||||||||||||
Earnings per share attributable to Thermo Fisher Scientific Inc.: | ||||||||||||||||||||||||||
Basic | $ | 4.20 | $ | 6.30 | ||||||||||||||||||||||
Diluted | $ | 4.17 | $ | 6.24 | ||||||||||||||||||||||
Weighted average shares: | ||||||||||||||||||||||||||
Basic | 394 | 397 | ||||||||||||||||||||||||
Diluted | 398 | 400 | ||||||||||||||||||||||||
Reconciliation of adjusted operating income and adjusted operating margin | ||||||||||||||||||||||||||
GAAP operating income | $ | 2,538 | 23.7 | % | $ | 3,071 | 29.1 | % | ||||||||||||||||||
Cost of revenues charges (a) | — | 0.0 | % | 1 | 0.0 | % | ||||||||||||||||||||
Selling, general and administrative charges (credits) (b) | 111 | 1.0 | % | (3) | 0.0 | % | ||||||||||||||||||||
Restructuring and other costs (c) | 46 | 0.4 | % | 32 | 0.3 | % | ||||||||||||||||||||
Amortization of acquisition-related intangible assets | 466 | 4.4 | % | 411 | 3.9 | % | ||||||||||||||||||||
Adjusted operating income (non-GAAP measure) | $ | 3,161 | 29.5 | % | $ | 3,512 | 33.3 | % | ||||||||||||||||||
Reconciliation of adjusted net income | ||||||||||||||||||||||||||
GAAP net income attributable to Thermo Fisher Scientific Inc. | $ | 1,658 | $ | 2,498 | ||||||||||||||||||||||
Cost of revenues charges (a) | — | 1 | ||||||||||||||||||||||||
Selling, general and administrative charges (credits) (b) | 111 | (3) | ||||||||||||||||||||||||
Restructuring and other costs (c) | 46 | 32 | ||||||||||||||||||||||||
Amortization of acquisition-related intangible assets | 466 | 411 | ||||||||||||||||||||||||
Other expense adjustments (d) | 532 | 42 | ||||||||||||||||||||||||
Benefit from income taxes (e) | (213) | (146) | ||||||||||||||||||||||||
Equity in losses of unconsolidated entities | 1 | 1 | ||||||||||||||||||||||||
Adjusted net income (non-GAAP measure) | $ | 2,601 | $ | 2,836 | ||||||||||||||||||||||
Reconciliation of adjusted earnings per share | ||||||||||||||||||||||||||
GAAP diluted EPS attributable to Thermo Fisher Scientific Inc. | $ | 4.17 | $ | 6.24 | ||||||||||||||||||||||
Cost of revenues charges (a) | 0.00 | 0.00 | ||||||||||||||||||||||||
Selling, general and administrative charges (credits) (b) | 0.28 | 0.00 | ||||||||||||||||||||||||
Restructuring and other costs (c) | 0.11 | 0.08 | ||||||||||||||||||||||||
Amortization of acquisition-related intangible assets | 1.17 | 1.03 | ||||||||||||||||||||||||
Other expense adjustments (d) | 1.34 | 0.10 | ||||||||||||||||||||||||
Benefit from income taxes (e) | (0.53) | (0.36) | ||||||||||||||||||||||||
Equity in losses of unconsolidated entities | 0.00 | 0.00 | ||||||||||||||||||||||||
Adjusted EPS (non-GAAP measure) | $ | 6.54 | $ | 7.09 | ||||||||||||||||||||||
Reconciliation of free cash flow | ||||||||||||||||||||||||||
GAAP net cash provided by operating activities | $ | 2,688 | $ | 3,339 | ||||||||||||||||||||||
Purchases of property, plant and equipment | (831) | (586) | ||||||||||||||||||||||||
Proceeds from sale of property, plant and equipment | 11 | 1 | ||||||||||||||||||||||||
Free cash flow (non-GAAP measure) | $ | 1,868 | $ | 2,754 |
Segment data | Three Months Ended | |||||||||||||||||||||||||
December 31, | % of | December 31, | % of | |||||||||||||||||||||||
(In millions) | 2021 | Revenues | 2020 | Revenues | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||
Life Sciences Solutions | $ | 4,150 | 38.8 | % | $ | 4,368 | 41.4 | % | ||||||||||||||||||
Analytical Instruments | 1,725 | 16.1 | % | 1,636 | 15.5 | % | ||||||||||||||||||||
Specialty Diagnostics | 1,447 | 13.5 | % | 1,967 | 18.6 | % | ||||||||||||||||||||
Laboratory Products and Biopharma Services | 4,195 | 39.2 | % | 3,616 | 34.3 | % | ||||||||||||||||||||
Eliminations | (815) | -7.6 | % | (1,037) | -9.8 | % | ||||||||||||||||||||
Consolidated revenues | $ | 10,702 | 100.0 | % | $ | 10,550 | 100.0 | % | ||||||||||||||||||
Operating income and operating margin | ||||||||||||||||||||||||||
Life Sciences Solutions | $ | 1,999 | 48.2 | % | $ | 2,321 | 53.1 | % | ||||||||||||||||||
Analytical Instruments | 381 | 22.1 | % | 331 | 20.2 | % | ||||||||||||||||||||
Specialty Diagnostics | 297 | 20.5 | % | 520 | 26.4 | % | ||||||||||||||||||||
Laboratory Products and Biopharma Services | 484 | 11.5 | % | 340 | 9.4 | % | ||||||||||||||||||||
Subtotal reportable segments | 3,161 | 29.5 | % | 3,512 | 33.3 | % | ||||||||||||||||||||
Cost of revenues charges (a) | — | 0.0 | % | (1) | 0.0 | % | ||||||||||||||||||||
Selling, general and administrative (charges) credits (b) | (111) | -1.0 | % | 3 | 0.0 | % | ||||||||||||||||||||
Restructuring and other costs (c) | (46) | -0.4 | % | (32) | -0.3 | % | ||||||||||||||||||||
Amortization of acquisition-related intangible assets | (466) | -4.4 | % | (411) | -3.9 | % | ||||||||||||||||||||
GAAP operating income | $ | 2,538 | 23.7 | % | $ | 3,071 | 29.1 | % | ||||||||||||||||||
(a) Reported results in 2020 include accelerated depreciation on manufacturing assets to be abandoned due to facility consolidations. | ||||||||||||||||||||||||||
(b) Reported results in 2021 and 2020 include certain third-party expenses (credits), principally transaction/integration costs (including reimbursement thereof) related to recent/terminated acquisitions, charges/credits for changes in estimates of contingent acquisition consideration, and costs associated with product liability litigation. | ||||||||||||||||||||||||||
(c) Reported results in 2021 and 2020 include restructuring and other costs consisting principally of severance, abandoned facility and other expenses of headcount reductions within several businesses and real estate consolidations, and charges for impairment of acquired intangible assets. Reported results in 2021 also include $22 of charges for compensation due to employees at recently acquired businesses at the date of acquisition. | ||||||||||||||||||||||||||
(d) Reported results in 2021 and 2020 include net gains on investments. Reported results in 2021 include $570 of losses on the early extinguishment of debt and $10 of charges for the amortization of bridge loan commitment fees related to recent acquisitions. Reported results in 2020 include $42 of charges related to terminated interest rate swaps and $2 of net charges for the settlement/curtailment of pension plans. | ||||||||||||||||||||||||||
(e) Reported provision for income taxes in 2021 and 2020 includes incremental tax benefit for the pre-tax reconciling items between GAAP and adjusted net income, incremental tax impacts from audit settlements, and incremental tax impacts from adjusting the company's non-U.S. deferred tax balances as a result of tax rate changes. | ||||||||||||||||||||||||||
Notes: | ||||||||||||||||||||||||||
Consolidated depreciation expense is $217 and $191 in 2021 and 2020, respectively. | ||||||||||||||||||||||||||
For more information related to non-GAAP financial measures, refer to the section titled “Supplemental Information Regarding Non-GAAP Financial Measures” of this release. | ||||||||||||||||||||||||||
Base business organic revenue growth | |||||||||||
Three Months Ended | |||||||||||
December 31, | |||||||||||
2021 | |||||||||||
Revenue growth | 1 | % | |||||||||
Impact of COVID-19 response revenue (a) (b) | -11 | % | |||||||||
Base business revenue growth | 12 | % | |||||||||
Impact of acquisitions | 6 | % | |||||||||
Impact of currency translation | -1 | % | |||||||||
Base business organic revenue growth (non-GAAP measure) | 8 | % | * | ||||||||
* Results do not sum due to rounding. | |||||||||||
(a) COVID-19 response revenue includes effects of COVID-19 response revenues from acquired businesses and foreign currency translation. | |||||||||||
(b) Adjustment to exclude the impact of COVID-19 response revenue. | |||||||||||
Notes: | |||||||||||
For more information related to non-GAAP financial measures, refer to the section titled “Supplemental Information Regarding Non-GAAP Financial Measures” of this release. |
Condensed Consolidated Statement of Income (unaudited) | ||||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||||
December 31, | % of | December 31, | % of | |||||||||||||||||||||||
(In millions except per share amounts) | 2021 | Revenues | 2020 | Revenues | ||||||||||||||||||||||
Revenues | $ | 39,211 | $ | 32,218 | ||||||||||||||||||||||
Costs and operating expenses: | ||||||||||||||||||||||||||
Cost of revenues (a) | 18,977 | 48.4 | % | 15,713 | 48.8 | % | ||||||||||||||||||||
Selling, general and administrative expenses (b) | 6,842 | 17.4 | % | 5,764 | 17.9 | % | ||||||||||||||||||||
Amortization of acquisition-related intangible assets | 1,761 | 4.5 | % | 1,667 | 5.2 | % | ||||||||||||||||||||
Research and development expenses | 1,406 | 3.6 | % | 1,181 | 3.7 | % | ||||||||||||||||||||
Restructuring and other costs (c) | 197 | 0.5 | % | 99 | 0.3 | % | ||||||||||||||||||||
29,183 | 74.4 | % | 24,424 | 75.8 | % | |||||||||||||||||||||
Operating income | 10,028 | 25.6 | % | 7,794 | 24.2 | % | ||||||||||||||||||||
Interest income | 43 | 65 | ||||||||||||||||||||||||
Interest expense | (536) | (553) | ||||||||||||||||||||||||
Other expense (d) | (694) | (76) | ||||||||||||||||||||||||
Income before income taxes | 8,841 | 7,230 | ||||||||||||||||||||||||
Provision for income taxes (e) | (1,109) | (850) | ||||||||||||||||||||||||
Equity in losses of unconsolidated entities | (4) | (3) | ||||||||||||||||||||||||
Net income | 7,728 | 6,377 | ||||||||||||||||||||||||
Less: net income attributable to noncontrolling interests and redeemable noncontrolling interest | 3 | 2 | ||||||||||||||||||||||||
Net income attributable to Thermo Fisher Scientific Inc. | $ | 7,725 | 19.7 | % | $ | 6,375 | 19.8 | % | ||||||||||||||||||
Earnings per share attributable to Thermo Fisher Scientific Inc.: | ||||||||||||||||||||||||||
Basic | $ | 19.62 | $ | 16.09 | ||||||||||||||||||||||
Diluted | $ | 19.46 | $ | 15.96 | ||||||||||||||||||||||
Weighted average shares: | ||||||||||||||||||||||||||
Basic | 394 | 396 | ||||||||||||||||||||||||
Diluted | 397 | 399 | ||||||||||||||||||||||||
Reconciliation of adjusted operating income and adjusted operating margin | ||||||||||||||||||||||||||
GAAP operating income | $ | 10,028 | 25.6 | % | $ | 7,794 | 24.2 | % | ||||||||||||||||||
Cost of revenues charges (a) | 8 | 0.0 | % | 6 | 0.0 | % | ||||||||||||||||||||
Selling, general and administrative charges (credits) (b) | 144 | 0.4 | % | (10) | 0.0 | % | ||||||||||||||||||||
Restructuring and other costs (c) | 197 | 0.5 | % | 99 | 0.3 | % | ||||||||||||||||||||
Amortization of acquisition-related intangible assets | 1,761 | 4.5 | % | 1,667 | 5.2 | % | ||||||||||||||||||||
Adjusted operating income (non-GAAP measure) | $ | 12,138 | 31.0 | % | $ | 9,556 | 29.7 | % | ||||||||||||||||||
Reconciliation of adjusted net income | ||||||||||||||||||||||||||
GAAP net income attributable to Thermo Fisher Scientific Inc. | $ | 7,725 | $ | 6,375 | ||||||||||||||||||||||
Cost of revenues charges (a) | 8 | 6 | ||||||||||||||||||||||||
Selling, general and administrative charges (credits) (b) | 144 | (10) | ||||||||||||||||||||||||
Restructuring and other costs (c) | 197 | 99 | ||||||||||||||||||||||||
Amortization of acquisition-related intangible assets | 1,761 | 1,667 | ||||||||||||||||||||||||
Other expense adjustments (d) | 732 | 121 | ||||||||||||||||||||||||
Benefit from income taxes (e) | (593) | (449) | ||||||||||||||||||||||||
Equity in losses of unconsolidated entities | 4 | 3 | ||||||||||||||||||||||||
Adjusted net income (non-GAAP measure) | $ | 9,978 | $ | 7,812 | ||||||||||||||||||||||
Reconciliation of adjusted earnings per share | ||||||||||||||||||||||||||
GAAP diluted EPS attributable to Thermo Fisher Scientific Inc. | $ | 19.46 | $ | 15.96 | ||||||||||||||||||||||
Cost of revenues charges (a) | 0.02 | 0.01 | ||||||||||||||||||||||||
Selling, general and administrative charges (credits) (b) | 0.36 | (0.02) | ||||||||||||||||||||||||
Restructuring and other costs (c) | 0.50 | 0.25 | ||||||||||||||||||||||||
Amortization of acquisition-related intangible assets | 4.43 | 4.17 | ||||||||||||||||||||||||
Other expense adjustments (d) | 1.84 | 0.30 | ||||||||||||||||||||||||
Benefit from income taxes (e) | (1.49) | (1.12) | ||||||||||||||||||||||||
Equity in losses of unconsolidated entities | 0.01 | 0.01 | ||||||||||||||||||||||||
Adjusted EPS (non-GAAP measure) | $ | 25.13 | $ | 19.56 | ||||||||||||||||||||||
Reconciliation of free cash flow | ||||||||||||||||||||||||||
GAAP net cash provided by operating activities | $ | 9,543 | $ | 8,289 | ||||||||||||||||||||||
Purchases of property, plant and equipment | (2,523) | (1,474) | ||||||||||||||||||||||||
Proceeds from sale of property, plant and equipment | 20 | 8 | ||||||||||||||||||||||||
Free cash flow (non-GAAP measure) | $ | 7,040 | $ | 6,823 |
Segment data | Year ended | |||||||||||||||||||||||||
December 31, | % of | December 31, | % of | |||||||||||||||||||||||
(In millions) | 2021 | Revenues | 2020 | Revenues | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||
Life Sciences Solutions | $ | 15,631 | 39.9 | % | $ | 12,168 | 37.8 | % | ||||||||||||||||||
Analytical Instruments | 6,069 | 15.5 | % | 5,124 | 15.9 | % | ||||||||||||||||||||
Specialty Diagnostics | 5,659 | 14.4 | % | 5,343 | 16.6 | % | ||||||||||||||||||||
Laboratory Products and Biopharma Services | 14,862 | 37.9 | % | 12,245 | 38.0 | % | ||||||||||||||||||||
Eliminations | (3,010) | -7.7 | % | (2,662) | -8.3 | % | ||||||||||||||||||||
Consolidated revenues | $ | 39,211 | 100.0 | % | $ | 32,218 | 100.0 | % | ||||||||||||||||||
Operating income and operating margin | ||||||||||||||||||||||||||
Life Sciences Solutions | $ | 7,817 | 50.0 | % | $ | 6,109 | 50.2 | % | ||||||||||||||||||
Analytical Instruments | 1,197 | 19.7 | % | 808 | 15.8 | % | ||||||||||||||||||||
Specialty Diagnostics | 1,280 | 22.6 | % | 1,368 | 25.6 | % | ||||||||||||||||||||
Laboratory Products and Biopharma Services | 1,844 | 12.4 | % | 1,271 | 10.4 | % | ||||||||||||||||||||
Subtotal reportable segments | 12,138 | 31.0 | % | 9,556 | 29.7 | % | ||||||||||||||||||||
Cost of revenues charges (a) | (8) | 0.0 | % | (6) | 0.0 | % | ||||||||||||||||||||
Selling, general and administrative (charges) credits (b) | (144) | -0.4 | % | 10 | 0.0 | % | ||||||||||||||||||||
Restructuring and other costs (c) | (197) | -0.5 | % | (99) | -0.3 | % | ||||||||||||||||||||
Amortization of acquisition-related intangible assets | (1,761) | -4.5 | % | (1,667) | -5.2 | % | ||||||||||||||||||||
GAAP operating income | $ | 10,028 | 25.6 | % | $ | 7,794 | 24.2 | % | ||||||||||||||||||
(a) Reported results in 2021 include charges for the sale of inventories revalued at the date of acquisition. Reported results in 2020 include $4 of accelerated depreciation on manufacturing assets to be abandoned due to facility consolidations and $2 of charges to conform the accounting policies of recently acquired businesses with the company’s accounting policies. | ||||||||||||||||||||||||||
(b) Reported results in 2021 and 2020 include certain third-party expenses (credits), principally transaction/integration costs (including reimbursement thereof) related to recent/terminated acquisitions, charges/credits for changes in estimates of contingent acquisition consideration, and costs associated with product liability litigation. | ||||||||||||||||||||||||||
(c) Reported results in 2021 and 2020 include restructuring and other costs consisting principally of severance, abandoned facility and other expenses of headcount reductions within several businesses and real estate consolidations, and charges for impairment of acquired intangible assets. Reported results in 2021 include $35 of charges for compensation due to employees of recently acquired businesses at the date of acquisition. | ||||||||||||||||||||||||||
(d) Reported results in 2021 and 2020 include net gains on investments and charges for amortization of bridge loan commitment fees and entering hedging contracts for recent/terminated acquisitions. Reported results in 2021 include $767 of losses on the early extinguishment of debt. Reported results in 2020 include $42 of charges related to terminated interest rate swaps and $8 of net charges for the settlement/curtailment of pension plans. | ||||||||||||||||||||||||||
(e) Reported provision for income taxes in 2021 and 2020 includes incremental tax benefit for the pre-tax reconciling items between GAAP and adjusted net income, incremental tax impacts from audit settlements, and incremental tax impacts from adjusting the company's non-U.S. deferred tax balances as a result of tax rate changes. | ||||||||||||||||||||||||||
Notes: | ||||||||||||||||||||||||||
Consolidated depreciation expense is $831 and $658 in 2021 and 2020, respectively. | ||||||||||||||||||||||||||
For more information related to non-GAAP financial measures, refer to the section titled “Supplemental Information Regarding Non-GAAP Financial Measures” of this release. | ||||||||||||||||||||||||||
Base business organic revenue growth | |||||||||||
Year Ended | |||||||||||
December 31, | |||||||||||
2021 | |||||||||||
Revenue growth | 22 | % | |||||||||
Impact of COVID-19 response revenue (a) (b) | 5 | % | |||||||||
Base business revenue growth | 17 | % | |||||||||
Impact of acquisitions | 2 | % | |||||||||
Impact of currency translation | 2 | % | |||||||||
Base business organic revenue growth (non-GAAP measure) | 14 | % | * | ||||||||
* Results do not sum due to rounding. | |||||||||||
(a) COVID-19 response revenue includes effects of COVID-19 response revenues from acquired businesses and foreign currency translation. | |||||||||||
(b) Adjustment to exclude the impact of COVID-19 response revenue. | |||||||||||
Notes: | |||||||||||
For more information related to non-GAAP financial measures, refer to the section titled “Supplemental Information Regarding Non-GAAP Financial Measures” of this release. |
Condensed Consolidated Balance Sheet (unaudited) | ||||||||||||||
December 31, | December 31, | |||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 4,477 | $ | 10,325 | ||||||||||
Accounts receivable, net | 7,977 | 5,741 | ||||||||||||
Inventories | 5,051 | 4,029 | ||||||||||||
Other current assets | 2,564 | 1,862 | ||||||||||||
Total current assets | 20,069 | 21,957 | ||||||||||||
Property, plant and equipment, net | 8,333 | 5,912 | ||||||||||||
Acquisition-related intangible assets, net | 20,113 | 12,685 | ||||||||||||
Other assets | 4,352 | 2,457 | ||||||||||||
Goodwill | 41,924 | 26,041 | ||||||||||||
Total assets | $ | 94,791 | $ | 69,052 | ||||||||||
Liabilities, redeemable noncontrolling interest and equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Short-term obligations and current maturities of long-term obligations | $ | 2,537 | $ | 2,628 | ||||||||||
Other current liabilities | 10,806 | 7,676 | ||||||||||||
Total current liabilities | 13,343 | 10,304 | ||||||||||||
Other long-term liabilities | 8,138 | 5,124 | ||||||||||||
Long-term obligations | 32,333 | 19,107 | ||||||||||||
Redeemable noncontrolling interest | 122 | — | ||||||||||||
Total equity | 40,855 | 34,517 | ||||||||||||
Total liabilities, redeemable noncontrolling interest and equity | $ | 94,791 | $ | 69,052 |
Condensed Consolidated Statement of Cash Flows (unaudited) | ||||||||||||||
Year ended | ||||||||||||||
December 31, | December 31, | |||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Operating activities | ||||||||||||||
Net income | $ | 7,728 | $ | 6,377 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 2,592 | 2,325 | ||||||||||||
Change in deferred income taxes | (406) | (552) | ||||||||||||
Other non-cash expenses, net | 1,187 | 534 | ||||||||||||
Changes in assets and liabilities, excluding the effects of acquisitions and disposition | (1,558) | (395) | ||||||||||||
Net cash provided by operating activities | 9,543 | 8,289 | ||||||||||||
Investing activities | ||||||||||||||
Acquisitions, net of cash acquired | (19,395) | (38) | ||||||||||||
Purchases of property, plant and equipment | (2,523) | (1,474) | ||||||||||||
Proceeds from sale of property, plant and equipment | 20 | 8 | ||||||||||||
Other investing activities, net | (34) | (6) | ||||||||||||
Net cash used in investing activities | (21,932) | (1,510) | ||||||||||||
Financing activities | ||||||||||||||
Net proceeds from issuance of debt | 18,137 | 3,464 | ||||||||||||
Repayment of debt | (11,738) | (710) | ||||||||||||
Net proceeds from issuance of commercial paper | 2,512 | 383 | ||||||||||||
Repayment of commercial paper | — | (387) | ||||||||||||
Purchases of company common stock | (2,000) | (1,500) | ||||||||||||
Dividends paid | (395) | (337) | ||||||||||||
Net proceeds from issuance of company common stock under employee stock plans | 156 | 196 | ||||||||||||
Other financing activities, net | (91) | (150) | ||||||||||||
Net cash provided by financing activities | 6,581 | 959 | ||||||||||||
Exchange rate effect on cash | (37) | 176 | ||||||||||||
(Decrease) increase in cash, cash equivalents and restricted cash | (5,845) | 7,914 | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 10,336 | 2,422 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 4,491 | $ | 10,336 | ||||||||||
Free cash flow (non-GAAP measure) | $ | 7,040 | $ | 6,823 | ||||||||||
Notes: | ||||||||||||||
For more information related to non-GAAP financial measures, refer to the section titled “Supplemental Information Regarding Non-GAAP Financial Measures” of this release. | ||||||||||||||
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