Business Segment and Geographical Information

12 Months Ended

Dec. 31, 2021

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 (including COVID-19 through its polymerase chain reaction (PCR) testing and sample preparation capabilities). 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 Biopharma Services (formerly known as 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, clinical research services 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)	2021		2020		2019
Revenues
Life Sciences Solutions	$	15,631	$	12,168	$	6,856
Analytical Instruments	6,069		5,124		5,522
Specialty Diagnostics	5,659		5,343		3,718
Laboratory Products and Biopharma Services	14,862		12,245		10,599
Eliminations	(3,010)		(2,662)		(1,153)
Consolidated revenues	39,211		32,218		25,542
Segment Income
Life Sciences Solutions	7,817		6,109		2,446
Analytical Instruments	1,197		808		1,273
Specialty Diagnostics	1,280		1,368		930
Laboratory Products and Biopharma Services	1,844		1,271		1,324
Subtotal reportable segments	12,138		9,556		5,973
Cost of revenues charges	(8)		(6)		(17)
Selling, general and administrative (charges) credits	(144)		10		(62)
Restructuring and other (costs) income	(197)		(99)		413
Amortization of acquisition-related intangible assets	(1,761)		(1,667)		(1,713)
Consolidated operating income	10,028		7,794		4,594
Interest income	43		65		224
Interest expense	(536)		(553)		(676)
Other income/(expense)	(694)		(76)		(70)
Income before income taxes	$	8,841	$	7,230	$	4,072
Depreciation
Life Sciences Solutions	$	197	$	140	$	130
Analytical Instruments	83		76		75
Specialty Diagnostics	128		100		67
Laboratory Products and Biopharma Services	423		342		292
Consolidated depreciation	$	831	$	658	$	564

Cost of revenues charges included in the above table consist of charges for the sale of inventories revalued at the date of acquisition and accelerated depreciation on fixed assets to estimated disposal value in connection with the consolidation of operations. Selling, general and administrative charges/credits included in the above table consist of third-party transaction/integration costs (including reimbursement thereof) related to recent/terminated acquisitions, charges/credits for changes in estimates of contingent acquisition consideration, and charges/credits related to product liability litigation.

(In millions)	2021		2020		2019
Total assets
Life Sciences Solutions	$	22,751	$	20,209	$	18,306
Analytical Instruments	9,692		9,773		9,896
Specialty Diagnostics	6,010		6,534		5,867
Laboratory Products and Biopharma Services	52,639		22,711		21,761
Corporate/other (a)	4,031		9,825		2,551
Consolidated total assets	$	95,123	$	69,052	$	58,381
Capital expenditures
Life Sciences Solutions	$	810	$	392	$	151
Analytical Instruments	79		74		64
Specialty Diagnostics	167		175		83
Laboratory Products and Biopharma Services	1,327		772		554
Corporate/other	140		61		74
Consolidated capital expenditures	$	2,523	$	1,474	$	926

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

Geographical Information

(In millions)	2021		2020		2019
Revenues (b)
United States	$	18,907	$	16,435	$	12,366
China	3,444		2,797		2,752
Other	16,860		12,986		10,424
Consolidated revenues	$	39,211	$	32,218	$	25,542
Long-lived Assets (c)
United States	$	5,578	$	3,686	$	3,099
Other	4,286		3,001		2,349
Consolidated long-lived assets	$	9,864	$	6,687	$	5,448

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

(c)Includes property, plant and equipment, net, and operating lease ROU assets.