Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 03, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Thermo Fisher Scientific Inc. | ||
Entity Central Index Key | 97,745 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 67,969,182 | ||
Entity Common Stock, Shares Outstanding | 401,784,066 | ||
Entity Stock Trading Symbol | TMO |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 1,335 | $ 786 |
Accounts receivable, less allowances of $109 and $77 | 3,879 | 3,049 |
Inventories | 2,971 | 2,213 |
Refundable income taxes | 432 | 378 |
Other current assets | 804 | 595 |
Total current assets | 9,421 | 7,021 |
Property, Plant and Equipment, Net | 4,047 | 2,578 |
Acquisition-related Intangible Assets, Net | 16,684 | 13,969 |
Other Assets | 1,227 | 1,012 |
Goodwill | 25,290 | 21,328 |
Total Assets | 56,669 | 45,908 |
Current Liabilities: | ||
Short-term obligations and current maturities of long-term obligations | 2,135 | 1,255 |
Accounts payable | 1,428 | 926 |
Accrued payroll and employee benefits | 918 | 709 |
Deferred revenue | 719 | 486 |
Other accrued expenses | 1,848 | 1,490 |
Total current liabilities | 7,048 | 4,866 |
Deferred Income Taxes | 2,766 | 2,557 |
Other Long-term Liabilities | 2,569 | 1,573 |
Long-term Obligations | 18,873 | 15,372 |
Commitments and Contingencies | ||
Shareholders' Equity: | ||
Preferred stock, $100 par value, 50,000 shares authorized; none issued | ||
Common stock, $1 par value, 1,200,000,000 shares authorized; 428,327,873 and 415,138,564 shares issued | 428 | 415 |
Capital in excess of par value | 14,177 | 12,140 |
Retained earnings | 15,914 | 13,927 |
Treasury stock at cost, 27,013,311 and 21,690,679 shares | (3,103) | (2,306) |
Accumulated other comprehensive items | (2,003) | (2,636) |
Total shareholders' equity | 25,413 | 21,540 |
Total Liabilities and Shareholders' Equity | $ 56,669 | $ 45,908 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable Allowances | $ 109 | $ 77 |
Preferred Stock, $100 Par Value - Par Value (in dollars per share) | $ 100 | $ 100 |
Preferred Stock, $100 Par Value - Shares Authorized (in shares) | 50,000 | 50,000 |
Preferred Stock, $100 Par Value - Shares Issued (in shares) | 0 | 0 |
Common Stock, $1 Par Value - Par Value (in dollars per share) | $ 1 | $ 1 |
Common Stock, $1 Par Value - Shares Authorized (in shares) | 1,200,000,000 | 1,200,000,000 |
Common Stock, $1 Par Value - Shares Issued (in shares) | 428,327,873 | 415,138,564 |
Treasury Stock at Cost (in shares) | 27,013,311 | 21,690,679 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Product revenues | $ 17,374 | $ 15,712 | $ 14,668 |
Service revenues | 3,544 | 2,562 | 2,297 |
Total revenues | 20,918 | 18,274 | 16,965 |
Costs and Operating Expenses: | |||
Cost of product revenues | 8,976 | 8,214 | 7,584 |
Cost of service revenues | 2,497 | 1,691 | 1,625 |
Selling, general and administrative expenses | 5,492 | 4,976 | 4,612 |
Research and development expenses | 888 | 755 | 692 |
Restructuring and other costs, net | 97 | 189 | 116 |
Total costs and operating expenses | 17,950 | 15,825 | 14,629 |
Operating Income | 2,968 | 2,449 | 2,336 |
Other Expense, Net | (539) | (425) | (400) |
Income from Continuing Operations Before Income Taxes | 2,429 | 2,024 | 1,936 |
(Provision for) Benefit from Income Taxes | (201) | 1 | 44 |
Income from Continuing Operations | 2,228 | 2,025 | 1,980 |
Loss from Discontinued Operations (net of income tax benefit of $2, $2 and $3) | (3) | (3) | (5) |
Net Income | $ 2,225 | $ 2,022 | $ 1,975 |
Earnings per Share from Continuing Operations | |||
Basic (in dollars per share) | $ 5.65 | $ 5.13 | $ 4.97 |
Diluted (in dollars per share) | 5.60 | 5.10 | 4.93 |
Earnings per Share | |||
Basic (in dollars per share) | 5.64 | 5.12 | 4.96 |
Diluted (in dollars per share) | $ 5.59 | $ 5.09 | $ 4.92 |
Weighted Average Shares | |||
Basic (in shares) | 395 | 395 | 399 |
Diluted (in shares) | 398 | 397 | 402 |
Cash Dividends Declared per Common Share (in dollars per share) | $ 0.6 | $ 0.6 | $ 0.6 |
Consolidated Statement of Inco5
Consolidated Statement of Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Provision for (Benefit from) Income Taxes on Income (Loss) from Discontinued Operations | $ (2) | $ (2) | $ (3) |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Comprehensive Income | |||
Net Income | $ 2,225 | $ 2,022 | $ 1,975 |
Other Comprehensive Items: | |||
Currency translation adjustment (net of tax benefit of $145, $0 and $0) | 588 | (566) | (706) |
Unrealized gains and losses on available-for-sale investments: | |||
Unrealized holding (losses) gains arising during the period (net of tax (benefit) provision of $0, $0 and $0) | (1) | (2) | 1 |
Reclassification adjustment for (gains) losses included in net income (net of tax (provision) benefit of ($1), $0 and $0) | (1) | 1 | 0 |
Unrealized gains and losses on hedging instruments: | |||
Unrealized losses on hedging instruments (net of tax benefit of $0, $22 and $6) | 0 | (37) | (9) |
Reclassification adjustment for losses included in net income (net of tax benefit of $5, $4 and $2) | 7 | 6 | 3 |
Pension and other postretirement benefit liability adjustments: | |||
Pension and other postretirement benefit liability adjustments arising during the period (net of tax provision (benefit) of $7, ($17) and ($5)) | 23 | (47) | (9) |
Amortization of net loss and prior service benefit included in net periodic pension cost (net of tax benefit of $5, $2 and $3) | 17 | 6 | 8 |
Total other comprehensive items | 633 | (639) | (712) |
Comprehensive Income | $ 2,858 | $ 1,383 | $ 1,263 |
Consolidated Statement of Comp7
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Tax provision (benefit) on currency translation adjustment | $ (145) | $ 0 | $ 0 |
Tax provision (benefit) on unrealized holding gains and losses on available-for-sale investments arising during the period | 0 | 0 | 0 |
Tax provision (benefit) on reclassification adjustment for gains on available-for-sale investments recognized in net income | 1 | 0 | 0 |
Tax provision (benefit) on unrealized holding gains and losses on hedging instruments arising during the period | 0 | (22) | (6) |
Tax provision (benefit) on reclassification adjustment for losses on hedging instruments recognized in net income | (5) | (4) | (2) |
Tax provision (benefit) on pension and other postretirement benefit liability adjustments arising during the period | 7 | (17) | (5) |
Tax provision (benefit) on amortization of net loss and prior service benefit included in net periodic pension cost | $ (5) | $ (2) | $ (3) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | |||
Net Income | $ 2,225 | $ 2,022 | $ 1,975 |
Loss from discontinued operations | 3 | 3 | 5 |
Income from continuing operations | 2,228 | 2,025 | 1,980 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||
Depreciation and amortization | 2,033 | 1,758 | 1,688 |
Change in deferred income taxes | (1,098) | (620) | (525) |
Non-cash stock-based compensation | 159 | 133 | 125 |
Non-cash charges for sale of inventories revalued at the date of acquisition | 87 | 75 | 7 |
Other non-cash expenses, net | 103 | 67 | 61 |
Changes in assets and liabilities, excluding the effects of acquisitions and dispositions: | |||
Accounts receivable | (362) | (352) | (149) |
Inventories | (81) | 98 | (141) |
Other assets | (153) | (153) | (254) |
Accounts payable | 274 | 56 | (3) |
Other liabilities | 1,016 | 216 | 200 |
Contributions to retirement plans | (200) | (43) | (38) |
Net cash provided by continuing operations | 4,006 | 3,260 | 2,951 |
Net cash used in discontinued operations | (1) | (2) | (9) |
Net cash provided by operating activities | 4,005 | 3,258 | 2,942 |
Investing Activities | |||
Acquisitions, net of cash acquired | (7,226) | (5,178) | (695) |
Purchase of property, plant and equipment | (508) | (444) | (423) |
Proceeds from sale of property, plant and equipment | 7 | 26 | 18 |
Proceeds from sale of investments | 22 | 81 | 12 |
Other investing activities, net | (24) | (5) | (5) |
Net cash used in investing activities | (7,729) | (5,520) | (1,093) |
Financing Activities | |||
Net proceeds from issuance of debt | 6,459 | 7,604 | 1,798 |
Repayment of debt | (3,299) | (4,334) | (3,789) |
Proceeds from issuance of commercial paper | 8,380 | 9,182 | 7,934 |
Repayments of commercial paper | (8,514) | (8,278) | (7,885) |
Purchases of company common stock | (750) | (1,250) | (500) |
Dividends paid | (237) | (238) | (241) |
Net proceeds from issuance of company common stock | 1,690 | 0 | 0 |
Net proceeds from issuance of company common stock under employee stock plans | 128 | 87 | 72 |
Other financing activities, net | (3) | (14) | (6) |
Net cash provided by (used in) financing activities | 3,854 | 2,759 | (2,617) |
Exchange Rate Effect on Cash | 420 | (152) | (130) |
Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 550 | 345 | (898) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 811 | 466 | 1,364 |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 1,361 | $ 811 | $ 466 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Items [Member] |
Balance (in shares) at Dec. 31, 2014 | 408 | 8 | ||||
Balance at Dec. 31, 2014 | $ 20,548 | $ 408 | $ 11,474 | $ 10,407 | $ (456) | $ (1,285) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of shares under employees' and directors' stock plans (in shares) | 4 | 0 | ||||
Issuance of shares under employees' and directors' stock plans | 91 | $ 4 | 139 | $ (52) | ||
Stock-based compensation | 125 | 125 | ||||
Tax benefit related to employees' and directors' stock plans | 63 | 63 | ||||
Purchases of company common stock (in shares) | 4 | |||||
Purchases of company common stock | (500) | $ (500) | ||||
Dividends declared | (240) | (240) | ||||
Net Income | 1,975 | 1,975 | ||||
Other comprehensive items | (712) | (712) | ||||
Balance (in shares) at Dec. 31, 2015 | 412 | 12 | ||||
Balance at Dec. 31, 2015 | 21,350 | $ 412 | 11,801 | 12,142 | $ (1,008) | (1,997) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of shares under employees' and directors' stock plans (in shares) | 3 | 1 | ||||
Issuance of shares under employees' and directors' stock plans | 108 | $ 3 | 153 | $ (48) | ||
Stock-based compensation | 133 | 133 | ||||
Tax benefit related to employees' and directors' stock plans | 53 | 53 | ||||
Purchases of company common stock (in shares) | 9 | |||||
Purchases of company common stock | (1,250) | $ (1,250) | ||||
Dividends declared | (237) | (237) | ||||
Net Income | 2,022 | 2,022 | ||||
Other comprehensive items | (639) | (639) | ||||
Balance (in shares) at Dec. 31, 2016 | 415 | 22 | ||||
Balance at Dec. 31, 2016 | 21,540 | $ 415 | 12,140 | 13,927 | $ (2,306) | (2,636) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of shares under employees' and directors' stock plans (in shares) | 3 | 0 | ||||
Issuance of shares under employees' and directors' stock plans | 152 | $ 3 | 196 | $ (47) | ||
Issuance of shares (in shares) | 10 | |||||
Issuance of shares | 1,690 | $ 10 | 1,680 | |||
Stock-based compensation | 159 | 159 | ||||
Purchases of company common stock (in shares) | 5 | |||||
Purchases of company common stock | (750) | $ (750) | ||||
Dividends declared | (238) | (238) | ||||
Net Income | 2,225 | 2,225 | ||||
Other comprehensive items | 633 | 633 | ||||
Other | 2 | 2 | ||||
Balance (in shares) at Dec. 31, 2017 | 428 | 27 | ||||
Balance at Dec. 31, 2017 | $ 25,413 | $ 428 | $ 14,177 | $ 15,914 | $ (3,103) | $ (2,003) |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies [Text Block] | Note 1 . Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Thermo Fisher Scientific Inc. (the company or Thermo Fisher) enables customers to make the world healthier, cleaner and safer by providing analytical instruments, equipment, reagents and consumables, software and services for research, manufacturing, analysis, discovery and diagnostics. Markets served include pharmaceutical and biotech, academic and government, industrial and applied, as well as healthcare and diagnostics. Principles of Consolidation The accompanying financial statements include the accounts of the company and its wholly and majority-owned subsidiaries. All material intercompany accounts and transactions have been eliminated. The company accounts for investments in businesses using the equity method when it has significant influence but not control (generally between 20% and 50% ownership) and is not the primary beneficiary. Revenue Recognition and Accounts Receivable Revenue is recognized after all significant obligations have been met, collectability is probable and title has passed, which typically occurs upon shipment or delivery or completion of services. If customer-specific acceptance criteria exist, the company recognizes revenue after demonstrating adherence to the acceptance criteria. The company recognizes revenue and related costs for arrangements with multiple deliverables, such as equipment and installation, as each element is delivered or completed based upon its relative fair value. When a portion of the customer’s payment is not due until installation or other deliverable occurs, the company defers that portion of the revenue until completion of installation or transfer of the deliverable. Provisions for discounts, warranties, rebates to customers, returns and other adjustments are provided for in the period the related sales are recorded. Sales taxes, value-added taxes and certain excise taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenue. Service revenues represent the company’s service offerings including clinical trial logistics, drug development and manufacturing, asset management, diagnostic testing, training, service contracts, and field service including related time and materials. Service revenues are recognized as the service is performed. Revenues for service contracts are recognized ratably over the contract period. The company records shipping and handling charges billed to customers in net sales and records shipping and handling costs in cost of product revenues for all periods presented. Accounts receivable are recorded at the invoiced amount and do not bear interest. The company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to pay amounts due. The allowance for doubtful accounts is the company’s best estimate of the amount of probable credit losses in existing accounts receivable. The company determines the allowance based on the age of the receivable, the creditworthiness of the customer and any other information that is relevant to the judgment. Account balances are charged off against the allowance when the company believes it is probable the receivable will not be recovered. The company does not have any off-balance-sheet credit exposure related to customers. The changes in the allowance for doubtful accounts are as follows: Year Ended December 31, (In millions) 2017 2016 2015 Beginning Balance $ 77 $ 70 $ 74 Provision charged to expense (a) 32 16 5 Accounts written off (10 ) (9 ) (4 ) Acquisitions, currency translation and other 10 — (5 ) Ending Balance $ 109 $ 77 $ 70 (a) In 2017, includes $6 million of charges to conform the accounting policies of Patheon to the company's accounting policies. In 2016, includes $9 million of charges to conform the accounting policies of FEI to the company's accounting policies. Deferred revenue in the accompanying balance sheet consists primarily of unearned revenue on service contracts, which is recognized ratably over the terms of the contracts. The majority of the deferred revenue in the accompanying 2017 balance sheet will be recognized within one year. Warranty Obligations The company provides for the estimated cost of standard product warranties, primarily from historical information, in cost of product revenues at the time product revenue is recognized. While the company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component supplies, the company’s warranty obligation is affected by product failure rates, utilization levels, material usage, service delivery costs incurred in correcting a product failure and supplier warranties on parts delivered to the company. Should actual product failure rates, utilization levels, material usage, service delivery costs or supplier warranties on parts differ from the company’s estimates, revisions to the estimated warranty liability would be required. The liability for warranties is included in other accrued expenses in the accompanying balance sheet. Extended warranty agreements are considered service contracts, which are discussed above. Costs of service contracts are recognized as incurred. The changes in the carrying amount of standard product warranty obligations are as follows: Year Ended December 31, December 31, (In millions) 2017 2016 Beginning Balance $ 78 $ 56 Provision charged to income 110 96 Usage (101 ) (87 ) Acquisitions — 17 Adjustments to previously provided warranties, net (4 ) (2 ) Currency translation 4 (2 ) Ending Balance $ 87 $ 78 Research and Development The company conducts research and development activities to increase its depth of capabilities in technologies, software and services. Research and development costs include employee compensation and benefits, consultants, facilities related costs, material costs, depreciation and travel. Research and development costs are expensed as incurred. Restructuring Costs Accounting for the timing and amount of termination benefits provided by the company to employees is determined based on whether: (a) the company has a substantive plan to provide such benefits, (b) the company has a written employment contract with the affected employees that includes a provision for such benefits, (c) the termination benefits are due to the occurrence of an event specified in an existing plan or agreement, or (d) the termination benefits are a one-time benefit. In certain circumstances, employee termination benefits may meet more than one of the characteristics listed above and therefore, may have individual elements that are subject to different accounting models. From time to time when executing a restructuring or exit plan, the company also incurs costs other than termination benefits, such as lease termination costs, that are not associated with or will not be incurred to generate revenues. These include costs that represent amounts under contractual obligations that exist prior to the restructuring plan communication date and will either continue after the restructuring plan is completed with no economic benefit or result in a penalty to cancel a contractual obligation. Such costs are recognized when incurred, which generally occurs at the contract termination or cease-use date but may continue over the remainder of the original contractual period. Income Taxes The company recognizes deferred income taxes based on the expected future tax consequences of differences between the financial statement basis and the tax basis of assets and liabilities, calculated using enacted tax rates in effect for the year in which the differences are expected to be reflected in the tax return. The financial statements reflect expected future tax consequences of uncertain tax positions that the company has taken or expects to take on a tax return presuming the taxing authorities’ full knowledge of the positions and all relevant facts, but without discounting for the time value of money (Note 7 ). Earnings per Share Basic earnings per share has been computed by dividing net income by the weighted average number of shares outstanding during the year. Except where the result would be antidilutive to income from continuing operations, diluted earnings per share has been computed using the treasury stock method for outstanding stock options and restricted units, as well as their related income tax effects (Note 8 ). Cash and Cash Equivalents Cash equivalents consists principally of money market funds, commercial paper and other marketable securities purchased with an original maturity of three months or less. These investments are carried at cost, which approximates market value. Inventories Inventories are valued at the lower of cost or net realizable value, cost being determined principally by the first-in, first-out (FIFO) method with certain of the company’s businesses utilizing the last-in, first-out (LIFO) method. The company periodically reviews quantities of inventories on hand and compares these amounts to the expected use of each product or product line. In addition, the company has certain inventory that is subject to fluctuating market pricing. The company assesses the carrying value of this inventory based on a lower of cost or net realizable value analysis. The company records a charge to cost of sales for the amount required to reduce the carrying value of inventory to net realizable value. Costs associated with the procurement of inventories, such as inbound freight charges, purchasing and receiving costs, and internal transfer costs, are included in cost of revenues in the accompanying statement of income. The components of inventories are as follows: December 31, December 31, (In millions) 2017 2016 Raw Materials $ 708 $ 466 Work in Process 505 328 Finished Goods 1,758 1,419 Inventories $ 2,971 $ 2,213 The value of inventories maintained using the LIFO method was $219 million and $207 million at December 31, 2017 and 2016 , respectively, which was below estimated replacement cost by $31 million and $28 million , respectively. Reductions to cost of revenues as a result of the liquidation of LIFO inventories were nominal during the three years ended December 31, 2017 . Property, Plant and Equipment Property, plant and equipment are recorded at cost. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. The company provides for depreciation and amortization using the straight-line method over the estimated useful lives of the property as follows: buildings and improvements, 25 to 40 years ; machinery and equipment (including software), 3 to 10 years ; and leasehold improvements, the shorter of the term of the lease or the life of the asset. When assets are retired or otherwise disposed of, the assets and related accumulated depreciation are eliminated from the accounts and the resulting gain or loss is reflected in the accompanying statement of income. Property, plant and equipment consists of the following: December 31, December 31, (In millions) 2017 2016 Land $ 401 $ 306 Buildings and Improvements 1,662 1,154 Machinery, Equipment and Leasehold Improvements 4,276 2,956 Property, Plant and Equipment, at Cost 6,339 4,416 Less: Accumulated Depreciation and Amortization 2,292 1,838 Property, Plant and Equipment, Net $ 4,047 $ 2,578 Depreciation and amortization expense of property, plant and equipment was $439 million , $380 million and $373 million in 2017 , 2016 and 2015 , respectively. Acquisition-related Intangible Assets Acquisition-related intangible assets include the costs of acquired customer relationships, product technology, tradenames and other specifically identifiable intangible assets, and are being amortized using the straight-line method over their estimated useful lives, which range from 3 to 20 years . In addition, the company has tradenames and in-process research and development that have indefinite lives and which are not amortized. The company reviews intangible assets for impairment when indication of potential impairment exists, such as a significant reduction in cash flows associated with the assets. Intangible assets with indefinite lives are reviewed for impairment annually or whenever events or changes in circumstances indicate they may be impaired. Acquisition-related intangible assets are as follows: Balance at December 31, 2017 Balance at December 31, 2016 (In millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Definite Lived: Customer relationships $ 17,356 $ (5,902 ) $ 11,454 $ 13,167 $ (4,821 ) $ 8,346 Product technology 6,046 (2,811 ) 3,235 5,680 (2,204 ) 3,476 Tradenames 1,538 (817 ) 721 1,452 (646 ) 806 Other 34 (34 ) — 33 (33 ) — 24,974 (9,564 ) 15,410 20,332 (7,704 ) 12,628 Indefinite Lived: Tradenames 1,235 — 1,235 1,235 — 1,235 In-process research and development 39 — 39 106 — 106 1,274 — 1,274 1,341 — 1,341 Acquisition-related Intangible Assets $ 26,248 $ (9,564 ) $ 16,684 $ 21,673 $ (7,704 ) $ 13,969 The estimated future amortization expense of acquisition-related intangible assets with definite lives is as follows: (In millions) 2018 $ 1,705 2019 1,698 2020 1,609 2021 1,510 2022 1,383 2023 and Thereafter 7,505 Estimated Future Amortization Expense of Definite-lived Intangible Assets $ 15,410 Amortization of acquisition-related intangible assets was $1.59 billion , $1.38 billion and $1.31 billion in 2017 , 2016 and 2015 , respectively. Other Assets Other assets in the accompanying balance sheet include deferred tax assets, cash surrender value of life insurance, insurance recovery receivables related to product liability matters, pension assets, cost-method and available-for-sale investments, notes receivable, restricted cash and other assets. Investments for which there are not readily determinable market values are accounted for under the cost method of accounting. The company periodically evaluates the carrying value of its investments accounted for under the cost method of accounting, which provides that they are recorded at the lower of cost or estimated net realizable value. At December 31, 2017 and 2016 , the company had cost method investments with carrying amounts of $32 million and $37 million , respectively, which are included in other assets. Goodwill The company assesses goodwill for impairment annually and whenever events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. Such events or circumstances generally include the occurrence of operating losses or a significant decline in earnings associated with one or more of the company’s reporting units. The company is permitted to first assess qualitative factors to determine whether the goodwill impairment test is necessary. If the qualitative assessment results in a determination that the fair value of a reporting unit is more-likely-than-not less than its carrying amount, the company performs the goodwill impairment test. The company may bypass the qualitative assessment for the reporting unit in any period and proceed directly to the goodwill impairment test. The company estimates the fair value of its reporting units by using forecasts of discounted future cash flows and peer market multiples. The company would record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. Prior to the annual impairment test in the fourth quarter of 2017 and adoption of new guidance discussed elsewhere in Note 1 , if an impairment had been indicated, any excess of the carrying value over the implied fair value of goodwill would have been recorded as an operating loss. The company determined that no impairments existed in 2017 , 2016 or 2015 . The changes in the carrying amount of goodwill by segment are as follows: (In millions) Life Sciences Solutions Analytical Instruments Specialty Diagnostics Laboratory Products and Services Total Balance at December 31, 2015 $ 7,617 $ 2,703 $ 3,771 $ 4,737 $ 18,828 Acquisitions 619 2,059 1 14 2,693 Finalization of purchase price allocations for 2015 acquisitions — — — 7 7 Currency translation (3 ) (80 ) (108 ) (31 ) (222 ) Other 13 4 (5 ) 10 22 Balance at December 31, 2016 8,246 4,686 3,659 4,737 21,328 Acquisitions 136 99 27 3,256 3,518 Finalization of purchase price allocations for 2016 acquisitions (4 ) 68 — (1 ) 63 Currency translation 14 174 171 25 384 Other (1 ) — (1 ) (1 ) (3 ) Balance at December 31, 2017 $ 8,391 $ 5,027 $ 3,856 $ 8,016 $ 25,290 Loss Contingencies Accruals are recorded for various contingencies, including legal proceedings, environmental, workers’ compensation, product, general and auto liabilities, self-insurance and other claims that arise in the normal course of business. The accruals are based on management’s judgment, historical claims experience, the probability of losses and, where applicable, the consideration of opinions of internal and/or external legal counsel and actuarial estimates. Additionally, the company records receivables from third-party insurers up to the amount of the loss when recovery has been determined to be probable. Liabilities acquired in acquisitions have been recorded at fair value and, as such, were discounted to present value at the dates of acquisition. Currency Translation All assets and liabilities of the company’s non-U.S. subsidiaries are translated at year-end exchange rates. Resulting translation adjustments are reflected in the "accumulated other comprehensive items" component of shareholders’ equity. Revenues and expenses are translated at average exchange rates for the year. Currency transaction (losses) gains are included in the accompanying statement of income and in aggregate were $(31) million , $19 million and $(11) million in 2017 , 2016 and 2015 , respectively. Derivative Contracts The company is exposed to certain risks relating to its ongoing business operations including changes to interest rates and currency exchange rates. The company uses derivative instruments primarily to manage currency exchange and interest rate risks. The company recognizes derivative instruments as either assets or liabilities and measures those instruments at fair value. If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative are either offset against the change in fair value of the hedged item through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. Derivatives that are not designated as hedges are recorded at fair value through earnings. The company uses short-term forward and option currency exchange contracts primarily to hedge certain balance sheet and operational exposures resulting from changes in currency exchange rates, predominantly intercompany loans and cash balances that are denominated in currencies other than the functional currencies of the respective operations. The currency-exchange contracts principally hedge transactions denominated in euro, British pounds sterling, Swedish kronor, Norwegian kroner, Swiss franc and Canadian dollars. The company does not hold or engage in transactions involving derivative instruments for purposes other than risk management. Cash flow hedges . For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Fair value hedges. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in earnings. During 2016, in connection with new debt issuances, the company entered into interest rate swap arrangements. The company includes the gain or loss on the hedged items (fixed-rate debt) in the same line item (interest expense) as the offsetting effective portion of the loss or gain on the related interest rate swaps. Net investment hedges. The company also uses foreign currency-denominated debt to partially hedge its net investments in foreign operations against adverse movements in exchange rates. The company’s euro-denominated senior notes have been designated as, and are effective as, economic hedges of part of the net investment in a foreign operation. Accordingly, foreign currency transaction gains or losses due to spot rate fluctuations on the euro-denominated debt instruments are included in currency translation adjustment within other comprehensive income and shareholders’ equity. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In addition, significant estimates were made in estimating future cash flows to assess potential impairment of assets and in determining the fair value of acquired intangible assets (Note 2 ) and the ultimate loss from abandoning leases at facilities being exited (Note 14 ). Actual results could differ from those estimates. Recent Accounting Pronouncements In February 2018, the FASB issued new guidance to allow reclassifications from accumulated other comprehensive income (AOCI) to retained earnings for certain tax effects on items within AOCI resulting from the Tax Cuts and Jobs Act of 2017 (the Tax Act). The guidance will be effective in 2019 and early adoption is permitted. The company may choose to record the reclassifications in the period of adoption or retrospectively. The company is currently evaluating the timing and method of adoption. In December 2017, the SEC staff issued guidance to address the application of accounting guidance in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act enacted on December 22, 2017. As discussed further in Note 7 , the company is reporting provisional amounts for certain income tax effects of the Tax Act for which a reasonable estimate can be determined but for which the accounting impact may change based on further analysis regarding the amount and composition of the company's historical foreign earnings and future issuance of interpretive regulations. Adjustments to provisional amounts identified during the measurement period, which may be up to December 22, 2018, will be included as adjustments to Benefit from (Provision for) Income Taxes in the period the amounts are determined. In August 2017, the FASB issued new guidance to simplify the application of hedge accounting guidance. Among other things, the new guidance will permit more hedging strategies to qualify for hedge accounting, allow for additional time to perform an initial assessment of a hedge’s effectiveness, and permit a qualitative effectiveness test for certain hedges after initial qualification. The company adopted this guidance in January 2018. The adoption of this guidance is not expected to have a material impact on the company’s consolidated financial statements. In March 2017, the FASB issued new guidance intended to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires the service cost component of net periodic cost be reported in the same line item(s) as other employee compensation costs and all other components of the net periodic cost be reported in the income statement below operating income. The guidance is effective for the company in 2018. The adoption of this guidance is not expected to have a material impact on the company’s consolidated financial statements. In January 2017, the FASB issued new guidance that eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, the new guidance requires entities to record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The company adopted this guidance when it performed its annual goodwill impairment test in the fourth quarter of 2017. The adoption of this guidance did not have a material impact on the company’s consolidated financial statements. In January 2017, the FASB issued new guidance clarifying the definition of a business and providing criteria to determine when an integrated set of assets and activities is not defined as a business. The new guidance requires such integrated sets to be defined as an asset (and not a business) if substantially all of the fair value of the gross assets acquired or disposed is concentrated in a single identifiable asset or a group of similar identifiable assets. The guidance is effective for the company in 2018. The adoption of this guidance is not expected to have a material impact on the company’s consolidated financial statements. In October 2016, the FASB issued new guidance eliminating the deferral of the tax effects of intra-entity asset transfers. The guidance is effective for the company in 2018. The impact of this guidance will be dependent on the extent of future asset transfers which usually occur in connection with planning around acquisitions and other business structuring activities. The adoption of this guidance is not expected to have a material impact on the company’s consolidated financial statements. In March 2016, the FASB issued new guidance which affects the accounting for stock-based co mpensatio n. The new guidance simplifies the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The company adopted this guidance on January 1, 2017 and applied the changes to the statement of cash flows retrospectively. Adoption of this guidance decreased the company's tax provision in 2017 by $65 million and increased diluted earnings per share for the same period by $0.16 . The impact in future periods will be dependent upon changes in the company's stock price, the volume of employee stock option exercises and the timing of service- and performance-based restricted unit vesting. In February 2016, the FASB issued new guidance which requires lessees to record most leases on their balance sheets as lease liabilities, initially measured at the present value of the future lease payments, with corresponding right-of-use assets. The new guidance also sets forth new disclosure requirements related to leases. The company plans to adopt the guidance in 2019 using a modified retrospective method. The company is currently evaluating the impact this guidance will have on its consolidated financial statements, however, assets and liabilities will increase upon adoption for right-of-use assets and lease liabilities. The company’s future commitments under lease obligations are summarized in Note 10 . In January 2016, the FASB issued new guidance which affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. This guidance retains the current accounting for classifying and measuring investments in debt securities and loans, but requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. The guidance also changes the accounting for investments without a readily determinable fair value and that do not qualify for the practical expedient permitted by the guidance to estimate fair value. A policy election can be made for these investments whereby estimated fair value may be measured at cost and adjusted in subsequent periods for any impairment or changes in observable prices of identical or similar investments. The guidance is effective for the company in 2018. The adoption of this guidance is not expected to have a material impact on the company’s consolidated financial statements. In July 2015, the FASB issued new guidance which requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance does not apply to inventory that is measured using last-in, first-out (LIFO). The guidance was effective for the company in 2017. Adoption of this guidance did not have a material impact on the company’s consolidated financial statements. In May 2014, the FASB issued new revenue recognition guidance which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity's nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. During 2016 and 2017, the FASB issued additional guidance and clarification, including the elimination of certain SEC Staff Guidance. The guidance is effective for the company in 2018. The company has elected to adopt this guidance through application of the modified retrospective method. The company substantially completed its analysis of the impact of the new guidance in 2017. Applying the new guidance to the majority of the company’s revenue arrangements based on its most commonly used customer terms and conditions and routine sales transactions, which generally consist of a single performance obligation to transfer promised goods or services, does not have a material impact to the company’s consolidated financial statements. While the timing of revenue recognition for some of the company’s other sales transactions has been affected by the new guidance, the impact is not expected to be material. The impact of recording the cumulative effect of the change in the accounting guidance in the company's balance sheet in the first quarter of 2018 is expected to be less than 1% of total assets, total liabilities, and total shareholders’ equity. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions [Text Block] | Note 2 . Acquisitions The company’s acquisitions have historically been made at prices above the determined fair value of the acquired identifiable net assets, resulting in goodwill, due to expectations of the synergies that will be realized by combining the businesses. These synergies include the elimination of redundant facilities, functions and staffing; use of the company’s existing commercial infrastructure to expand sales of the acquired businesses’ products; and use of the commercial infrastructure of the acquired businesses to cost-effectively expand sales of company products. Acquisitions have been accounted for using the purchase method of accounting, and the acquired companies’ results have been included in the accompanying financial statements from their respective dates of acquisition. Acquisition transaction costs are recorded in selling, general and administrative expenses as incurred. 2017 On August 29, 2017, the company acquired, within the Laboratory Products and Services segment, substantially all of the issued and outstanding shares of Patheon N.V., a leading global provider of high-quality drug development and delivery solutions to the pharmaceutical and biopharma sectors, for $35.00 per share in cash, or $7.36 billion , including the assumption of net debt. The company financed the purchase price, including the repayment of indebtedness of Patheon, with issuances of debt and equity. Patheon provides comprehensive, integrated and highly customizable solutions as well as the expertise to help biopharmaceutical companies of all sizes satisfy complex development and manufacturing needs. The acquisition provided entry into the pharmaceutical contract development and manufacturing organization market and added a complementary service to the company's existing pharmaceutical services portfolio. Patheon's revenues totaled $1.87 billion for the year ended October 31, 2016. The purchase price exceeded the fair market value of the identifiable net assets and, accordingly, $3.26 billion was allocated to goodwill, $125 million of which is tax deductible. On March 2, 2017, the company acquired, within the Analytical Instruments segment, Core Informatics, a North America-based provider of cloud-based platforms supporting scientific data management, for a total purchase price of $94 million , net of cash acquired. The acquisition enhanced the company's existing informatics solutions. Revenues of Core Informatics were approximately $10 million in 2016. The purchase price exceeded the fair market value of the identifiable net assets and, accordingly, $63 million was allocated to goodwill, $50 million of which is tax deductible. On February 14, 2017, the company acquired, within the Life Sciences Solutions segment, Finesse Solutions, Inc., a North America-based developer of scalable control automation systems and software for bioproduction, for a total purchase price of $221 million , net of cash acquired. The acquisition expanded the company's bioproduction offerings. Revenues of Finesse Solutions were approximately $50 million in 2016 . The purchase price exceeded the fair market value of the identifiable net assets and, accordingly, $136 million was allocated to goodwill, none of which is tax deductible. In addition, in 2017 the company acquired, within the Specialty Diagnostics segment, a North America-based molecular diagnostics company offering qPCR tests to the transplant community and, within the Analytical Instruments segment, a provider of desktop scanning electron microscopy solutions and a manufacturer of volatile organic compound monitoring instruments and integrated systems, for an aggregate purchase price of $110 million . The components of the purchase price and net assets acquired for 2017 acquisitions are as follows: (In millions) Patheon Core Informatics Finesse Solutions Other Total Purchase Price Cash paid $ 6,861 $ 95 $ 223 $ 97 $ 7,276 Debt assumed 488 — — — 488 Fair value of contingent consideration — 9 — 8 17 Fair value of equity awards exchanged 6 — — — 6 Fair value of previously held interest — — — 11 11 Purchase price payable 50 — — 7 57 Cash acquired (47 ) (10 ) (2 ) (13 ) (72 ) $ 7,358 $ 94 $ 221 $ 110 $ 7,783 Net Assets Acquired Current assets $ 1,046 $ 2 $ 17 $ 20 $ 1,085 Property, plant and equipment 1,288 — 1 3 1,292 Definite-lived intangible assets: Customer relationships 3,618 6 68 16 3,708 Product technology — 29 32 35 96 Tradenames and other 112 3 2 — 117 Indefinite-lived intangible assets: In-process research and development — — 2 — 2 Goodwill 3,255 63 136 64 3,518 Other assets 54 — — — 54 Deferred tax liabilities (1,091 ) (4 ) (22 ) (14 ) (1,131 ) Other liabilities assumed (924 ) (5 ) (15 ) (14 ) (958 ) $ 7,358 $ 94 $ 221 $ 110 $ 7,783 T he weighted-average amortization periods for definite-lived intangible assets acquired in 2017 are 17 years for customer relationships, 9 years for product technology and 4 years for tradenames and other. The weighted average amortization period for all definite-lived intangible assets acquired in 2017 is 16 years . 2016 On September 19, 2016, the company acquired, within the Analytical Instruments segment, FEI Company, a North America-based provider of high-performance electron microscopy, for a total purchase price of $4.08 billion , net of cash acquired. The acquisition strengthened the company's analytical instrument portfolio with the addition of high-end electron microscopes. Revenues of FEI were $930 million in 2015. The purchase price exceeded the fair value of the identifiable net assets and, accordingly, $2.13 billion was allocated to goodwill, approximately $65 million of which is tax deductible. On March 31, 2016, the company acquired, primarily within the Life Sciences Solutions segment, Affymetrix, Inc., a North America-based provider of cellular and genetic analysis products, for a total purchase price of $1.34 billion , net of cash acquired, including the assumption of $254 million of debt. The acquisition expanded the company's existing portfolio of antibodies and assays for flow cytometry and single-cell biology applications. Additionally, the acquisition expanded the company's genetic analysis portfolio through the addition of microarrays. Revenues of Affymetrix were $360 million in 2015. The purchase price exceeded the fair value of the identifiable net assets and, accordingly, $615 million was allocated to goodwill, none of which is tax deductible. In addition, in 2016, the company acquired, within the Life Sciences Solutions segment, a manufacturer of transfection reagents and cell-related products and selected assets of an existing channel partner, within the Analytical Instruments segment, a provider of X-ray diffraction solutions for material science and industrial applications and, within the Specialty Diagnostics segment, an existing channel partner for its microbiology media products, for an aggregate purchase price of $33 million . The components of the purchase price and net assets acquired for 2016 acquisitions are as follows: (In millions) FEI Affymetrix Other Total Purchase Price Cash paid $ 4,440 $ 1,165 $ 29 $ 5,634 Debt assumed — 254 1 255 Purchase price payable 11 1 3 15 Cash acquired (369 ) (78 ) — (447 ) $ 4,082 $ 1,342 $ 33 $ 5,457 Net Assets Acquired Current assets $ 619 $ 161 $ 3 $ 783 Property, plant and equipment 153 19 — 172 Definite-lived intangible assets: Customer relationships 1,051 501 9 1,561 Product technology 740 253 7 1,000 Tradenames and other 42 46 — 88 Indefinite-lived intangible assets: In-process research and development 105 14 — 119 Goodwill 2,125 615 16 2,756 Other assets 72 8 — 80 Liabilities assumed (825 ) (275 ) (2 ) (1,102 ) $ 4,082 $ 1,342 $ 33 $ 5,457 T he weighted-average amortization periods for definite-lived intangible assets acquired in 2016 are 16 years for customer relationships, 8 years for product technology and 8 years for tradenames and other. The weighted average amortization period for all definite-lived intangible assets acquired in 2016 is 13 years . The company recorded a deferred tax liability of $156 million in the acquisition accounting related to the outside basis difference of the Affymetrix Singapore operations as the company does not intend to permanently reinvest the pre-acquisition Singapore earnings. This deferred tax liability was reversed in 2017 as a result of the enactment of the Tax Act. 2015 On September 30, 2015, the company acquired, within the Laboratory Products and Services segment, Alfa Aesar, a U.K.-based global manufacturer of research chemicals from Johnson Matthey Plc, for £257 million ( $393 million ) in cash. The acquisition expanded the company’s existing portfolio of chemicals, solvents and reagents. Revenues of Alfa Aesar were approximately £78 million in 2014. The purchase price exceeded the fair value of the identifiable net assets and, accordingly, $125 million was allocated to goodwill, $41 million of which is tax deductible. In February 2015, the company acquired, within the Life Sciences Solutions segment, Advanced Scientifics, Inc., a North America-based global provider of single-use systems and process equipment for bioprocess production, for approximately $289 million . The acquisition expanded the company’s bioprocessing offerings. Revenues of Advanced Scientifics were approximately $80 million in 2014. The purchase price exceeded the fair value of the identifiable net assets and, accordingly, $124 million was allocated to goodwill, all of which is tax deductible. In addition, in 2015, the company acquired, within the Analytical Instruments segment, selected assets of certain existing channel partners for its chromatography and mass spectrometry products and, within the Specialty Diagnostics segment, an existing channel partner for its transplant diagnostics products, for an aggregate purchase price of $19 million . During 2015, the company made contingent purchase price payments totaling $11 million for acquisitions completed prior to 2015. The contingent purchase price payments were contractually due to the sellers upon achievement of certain performance criteria at the acquired businesses. The components of the purchase price and net assets acquired for 2015 acquisitions are as follows: (In millions) Alfa Aesar Advanced Scientifics Other Total Purchase Price Cash paid $ 393 $ 289 $ 19 $ 701 Purchase price payable — — 1 1 Cash acquired (4 ) — (1 ) (5 ) $ 389 $ 289 $ 19 $ 697 Net Assets Acquired Current assets $ 96 $ 29 $ 5 $ 130 Property, plant and equipment 39 11 — 50 Definite-lived intangible assets: Customer relationships 137 90 8 235 Product technology — 37 — 37 Tradenames and other 16 2 — 18 Goodwill 125 124 9 258 Other assets 5 — — 5 Liabilities assumed (29 ) (4 ) (3 ) (36 ) $ 389 $ 289 $ 19 $ 697 T he weighted-average amortization periods for definite-lived intangible assets acquired in 2015 are 15 years for customer relationships, 10 years for product technology and 10 years for tradenames and other. The weighted average amortization period for all definite-lived intangible assets acquired in 2015 is 14 years . Unaudited Pro Forma Information The following unaudited pro forma information provides the effect of the company's 2017 acquisition of Patheon as if the acquisition had occurred on January 1, 2016, and the effects of the company's 2016 acquisitions of FEI and Affymetrix as if the acquisitions had occurred on January 1, 2015: (In millions) 2017 2016 2015 Revenues $ 22,144 $ 20,807 $ 18,230 Net Income $ 2,258 $ 1,791 $ 1,684 The historical consolidated financial information of the company, Patheon, FEI, and Affymetrix has been adjusted in the pro forma information to give effect to pro forma events that are directly attributable to the acquisitions and related financing arrangements, are expected to have a continuing impact on the company, and are factually supportable. To reflect the acquisition of Patheon as if it had occurred on January 1, 2016, and the acquisitions of FEI and Affymetrix as if they had occurred on January 1, 2015, the unaudited pro forma results include adjustments to reflect, among other things, the incremental intangible asset amortization to be incurred based on the preliminary values of each identifiable intangible asset and the interest expense from debt financings obtained to partially fund the cash consideration transferred. Pro forma adjustments were tax effected at the company's historical statutory rates in effect for the respective periods. The unaudited pro forma amounts are not necessarily indicative of the combined results of operations that would have been realized had the acquisitions and related financings occurred on the aforementioned dates, nor are they meant to be indicative of any anticipated combined results of operations that the company will experience after the transaction. In addition, the amounts do not include any adjustments for actions that may be taken following the completion of the transaction, such as expected cost savings, operating synergies, or revenue enhancements that may be realized subsequent to the transaction. Pro forma net income for the year ended December 31, 2017, excludes certain items associated with the Patheon acquisition that were included in the determination of net income for that period. These items have been included in the determination of pro forma net income for the year ended December 31, 2016, and are as follows: $54 million of direct transaction costs, $39 million of accounting policy conformity adjustments, $21 million of initial restructuring costs, $40 million reduction of revenues for revaluing the deferred revenue obligations to fair value, and $55 million of expense related to the fair value adjustment to acquisition-date inventories. Pro forma net income for the year ended December 31, 2016, excludes certain items associated with the FEI and Affymetrix acquisitions that were included in the determination of net income for that period. These items have been included in the determination of pro forma net income for the year ended December 31, 2015, and are as follows: $102 million of direct transaction costs, $33 million of accounting policy conformity adjustments, $46 million of initial restructuring costs, $6 million reduction of revenues for revaluing the deferred revenue obligations to fair value, and $99 million of expense related to the fair value adjustment to acquisition-date inventories. The company’s results would not have been materially different from its pro forma results had the company’s other 2016 or 2017 acquisitions occurred at the beginning of 2015 or 2016, respectively. Revenues of Patheon in 2017, subsequent to the date of acquisition, were $722 million . Operating losses for the same period totaled $108 million , primarily due to acquisition-related charges and restructuring charges related to synergy actions. |
Business Segment and Geographic
Business Segment and Geographical Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segment and Geographical Information [Text Block] | Note 3 . 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) 2017 2016 2015 Revenues Life Sciences Solutions $ 5,728 $ 5,317 $ 4,774 Analytical Instruments 4,821 3,668 3,208 Specialty Diagnostics 3,486 3,339 3,244 Laboratory Products and Services 7,825 6,724 6,372 Eliminations (942 ) (774 ) (633 ) Consolidated revenues 20,918 18,274 16,965 Segment Income (a) Life Sciences Solutions 1,896 1,596 1,414 Analytical Instruments 1,027 745 613 Specialty Diagnostics 930 910 873 Laboratory Products and Services 1,007 971 922 Subtotal reportable segments (a) 4,860 4,222 3,822 Cost of revenues charges (123 ) (102 ) (9 ) Selling, general and administrative charges, net (78 ) (104 ) (46 ) Restructuring and other costs, net (97 ) (189 ) (116 ) Amortization of acquisition-related intangible assets (1,594 ) (1,378 ) (1,315 ) Consolidated operating income 2,968 2,449 2,336 Other expense, net (b) (539 ) (425 ) (400 ) Income from continuing operations before income taxes $ 2,429 $ 2,024 $ 1,936 Depreciation Life Sciences Solutions $ 129 $ 142 $ 147 Analytical Instruments 71 50 39 Specialty Diagnostics 72 70 74 Laboratory Products and Services 167 118 113 Consolidated depreciation $ 439 $ 380 $ 373 (a) Represents operating income before certain charges to cost of revenues and selling, general and administrative expenses; restructuring and other costs, net; and amortization of acquisition-related intangibles. (b) The company does not allocate other expense, net to its segments. (In millions) 2017 2016 2015 Total Assets Life Sciences Solutions $ 19,063 $ 19,065 $ 18,537 Analytical Instruments 9,960 9,520 4,763 Specialty Diagnostics 7,095 6,802 7,183 Laboratory Products and Services 19,181 9,405 9,614 Corporate/Other (c) 1,370 1,116 737 Consolidated total assets $ 56,669 $ 45,908 $ 40,834 Capital Expenditures Life Sciences Solutions $ 118 $ 122 $ 93 Analytical Instruments 56 34 60 Specialty Diagnostics 87 72 76 Laboratory Products and Services 178 111 90 Corporate/Other 69 105 104 Consolidated capital expenditures $ 508 $ 444 $ 423 (c) Corporate assets consist primarily of cash and cash equivalents, short-term investments, property and equipment at the company's corporate offices. Geographical Information (In millions) 2017 2016 2015 Revenues (d) United States $ 10,177 $ 9,086 $ 8,607 China 2,058 1,730 1,376 Other 8,683 7,458 6,982 Consolidated revenues $ 20,918 $ 18,274 $ 16,965 Long-lived Assets (e) United States $ 2,349 $ 1,630 $ 1,532 United Kingdom 277 217 261 Other 1,421 731 656 Consolidated long-lived assets $ 4,047 $ 2,578 $ 2,449 (d) Revenues are attributed to countries based on customer location. (e) Includes property, plant and equipment, net. |
Other Expense, Net
Other Expense, Net | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net [Text Block] | Note 4 . Other Expense, Net The components of other expense, net, in the accompanying statement of income are as follows: (In millions) 2017 2016 2015 Interest Income $ 81 $ 48 $ 31 Interest Expense (592 ) (469 ) (415 ) Other Items, Net (28 ) (4 ) (16 ) Other Expense, Net $ (539 ) $ (425 ) $ (400 ) Other Items, Net In all periods, other items, net includes currency transaction gains and losses on monetary assets and liabilities. In 2017, other items, net includes $32 million of charges related to amortization of fees paid to obtain bridge financing commitments related to the Patheon acquisition (Note 2 ) and $4 million of losses on the early extinguishment of debt, offset in part by $17 million of gains on investments. In 2016, other items, net includes $22 million of charges related to amortization of fees paid to obtain bridge financing commitments for the acquisition of FEI (Note 2 ) and $9 million of losses on the early extinguishment of debt, offset in part by $13 million of gains on investments. The investment gains include an $8 million gain on the sale of a joint venture for net proceeds of $65 million . In 2015, other items, net includes costs of $7 million associated with entering into interest rate swap arrangements and losses of $12 million for the early extinguishment of debt. |
Stock-based Compensation Expens
Stock-based Compensation Expense | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation Expense [Text Block] | Note 5 . Stock-based Compensation Expense The company has stock-based compensation plans for its key employees, directors and others. These plans permit the grant of a variety of stock and stock-based awards, including restricted stock units, stock options or performance-based shares, as determined by the compensation committee of the company’s Board of Directors or, for certain non-officer grants, by the company’s employee equity committee, which consists of its chief executive officer. The company generally issues new shares of its common stock to satisfy option exercises and restricted unit vestings. Grants of stock options and restricted units generally provide that in the event of both a change in control of the company and a qualifying termination of an option or unit holder’s employment, all options and service-based restricted unit awards held by the recipient become immediately vested (unless an employment or other agreement with the employee provides for different treatment). Compensation cost is based on the grant-date fair value and is recognized ratably over the requisite vesting period or to the date based on qualifying retirement eligibility, if earlier. The components of stock-based compensation expense are primarily included in selling, general and administrative expenses and are as follows: (In millions) 2017 2016 2015 Stock Option Awards $ 53 $ 41 $ 44 Restricted Unit Awards 106 92 81 Total Stock-based Compensation Expense $ 159 $ 133 $ 125 The company measures the tax benefit associated with excess tax deductions related to stock-based compensation expense by multiplying the excess tax deductions by the statutory tax rates. The company uses the incremental tax benefit approach for utilization of tax attributes. Following the adoption of new guidance discussed in Note 1 , tax benefits recognized as a reduction of the income tax provision were $65 million in 2017. Tax benefits recognized in capital in excess of par value in the accompanying balance sheet were $53 million and $63 million , respectively, in 2016 and 2015 . Stock Options The company’s practice is to grant stock options at fair market value. Options vest over 3 - 5 years with terms of 7 - 10 years, assuming continued employment with certain exceptions. Vesting of the option awards is contingent upon meeting certain service conditions. The fair value of most option grants is estimated using the Black-Scholes option pricing model. For option grants that require the achievement of both service and market conditions, a lattice model is used to estimate fair value. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. Expected volatility was calculated based on the historical volatility of the company’s stock. Historical data on exercise patterns is the basis for estimating the expected life of an option. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term which approximates the expected life assumed at the date of grant. The expected annual dividend rate was calculated by dividing the company’s annual dividend, based on the most recent quarterly dividend rate, by the closing stock price on the grant date. The compensation expense recognized for all stock-based awards is net of estimated forfeitures. Forfeitures are estimated based on an analysis of actual option forfeitures. The weighted average assumptions used in the Black-Scholes option pricing model are as follows: 2017 2016 2015 Expected Stock Price Volatility 20 % 21 % 24 % Risk Free Interest Rate 1.9 % 1.2 % 1.4 % Expected Life of Options (years) 4.3 4.3 4.3 Expected Annual Dividend 0.4 % 0.5 % 0.5 % The weighted average per share grant-date fair values of options granted during 2017 , 2016 and 2015 were $30.73 , $24.54 and $27.04 , respectively. The total intrinsic value of options exercised during the same periods was $199 million , $176 million and $181 million , respectively. The intrinsic value is the difference between the market value of the shares on the exercise date and the exercise price of the option. A summary of the company’s option activity for the year ended December 31, 2017 is presented below: Shares (in millions) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (a) (in millions) Outstanding at December 31, 2016 8.8 $ 98.69 Granted 2.6 167.59 Issued in connection with an acquisition 0.3 114.06 Exercised (2.2 ) 79.16 Canceled/Expired (0.5 ) 134.56 Outstanding at December 31, 2017 9.0 $ 121.78 4.2 Vested and Unvested Expected to Vest at December 31, 2017 8.5 $ 119.92 4.1 $ 597 Exercisable at December 31, 2017 4.1 $ 90.31 2.6 $ 413 (a) Market price per share on December 31, 2017 was $189.88 . The intrinsic value is zero for options with exercise prices above the market price. As of December 31, 2017 , there was $99 million of total unrecognized compensation cost related to unvested stock options granted. The cost is expected to be recognized through 2021 with a weighted average amortization period of 2.6 years . Restricted Share/Unit Awards Awards of restricted units convert into an equivalent number of shares of common stock. The awards generally vest over 3 - 4 years , assuming continued employment, with some exceptions. Vesting of the awards is contingent upon meeting certain service conditions and may also be contingent upon meeting certain performance and/or market conditions. The fair market value of the award at the time of the grant is amortized to expense over the requisite service period of the award, which is generally the vesting period. Recipients of restricted units have no voting rights but are entitled to accrue dividend equivalents. The fair value of service- and performance-based restricted unit awards is determined based on the number of units granted and the market value of the company’s shares on the grant date. For awards with market-based vesting conditions, the company uses a lattice model to estimate the grant-date fair value of the award. A summary of the company’s restricted unit activity for the year ended December 31, 2017 is presented below: Units (in millions) Weighted Average Grant-Date Fair Value Unvested at December 31, 2016 1.3 $ 129.80 Granted 0.8 157.80 Issued in connection with an acquisition 0.2 180.52 Vested (0.7 ) 132.67 Forfeited (0.2 ) 138.44 Unvested at December 31, 2017 1.4 $ 150.23 The total fair value of shares vested during 2017 , 2016 and 2015 was $97 million , $91 million and $80 million , respectively. As of December 31, 2017 , there was $147 million of total unrecognized compensation cost related to unvested restricted stock unit awards. The cost is expected to be recognized through 2021 with a weighted average amortization period of 2.0 years . Employee Stock Purchase Plans Qualifying employees are eligible to participate in an employee stock purchase plan sponsored by the company. Shares may be purchased under the program at 95% of the fair market value at the end of the purchase period and the shares purchased are not subject to a holding period. Shares are purchased through payroll deductions of up to 10% of each participating employee’s gross wages. The company issued 0.1 million , 0.2 million and 0.2 million shares, respectively, of its common stock for the 2017 , 2016 and 2015 plan years, which ended on December 31. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits, Description [Abstract] | |
Pension and Other Postretirement Benefit Plans [Text Block] | Note 6 . Pension and Other Postretirement Benefit Plans 401(k) Savings Plan and Other Defined Contribution Plans The company’s 401(k) savings and other defined contribution plans cover the majority of the company’s eligible U.S. and certain non-U.S. employees. Contributions to the plans are made by both the employee and the company. Company contributions are based on the level of employee contributions. Company contributions to these plans are based on formulas determined by the company. In 2017 , 2016 and 2015 , the company charged to expense $161 million , $140 million and $131 million , respectively, related to its defined contribution plans. Defined Benefit Pension Plans Employees of a number of the company’s non-U.S. and certain U.S. subsidiaries participate in defined benefit pension plans covering substantially all full-time employees at those subsidiaries. Some of the plans are unfunded, as permitted under the plans and applicable laws. The company also maintains postretirement healthcare programs at several acquired businesses where certain employees are eligible to participate. The costs of the postretirement healthcare programs are generally funded on a self-insured and insured-premium basis. The company recognizes the funded status of defined benefit pension and other postretirement benefit plans as an asset or liability. This amount is defined as the difference between the fair value of plan assets and the benefit obligation. The company is required to recognize as a component of other comprehensive income, net of tax, the actuarial gains/losses and prior service costs/credits that arise but were not previously required to be recognized as components of net periodic benefit cost. Other comprehensive income is adjusted as these amounts are later recognized in income as components of net periodic benefit cost. When a company with a pension plan is acquired, any excess of projected benefit obligation over the plan assets is recognized as a liability and any excess of plan assets over the projected benefit obligation is recognized as an asset. The recognition of a new liability or a new asset results in the elimination of (a) previously existing unrecognized net gain or loss and (b) unrecognized prior service cost or credits. The company funds annually, at a minimum, the statutorily required minimum amount as actuarially determined. During 2017 , 2016 and 2015 , the company made cash contributions of approximately $200 million , $43 million and $38 million , respectively. Additionally, in 2016, the company contributed insurance contracts valued at $16 million to two of its German defined benefit plans. Contributions to the plans included in the following table are estimated at between $35 and $65 million for 2018 . The following table provides a reconciliation of benefit obligations and plan assets of the company’s domestic and non-U.S. pension plans and postretirement benefit plans: Domestic Pension Benefits Non-U.S. Pension Benefits Postretirement Benefits (In millions) 2017 2016 2017 2016 2017 2016 Change in Projected Benefit Obligations Benefit Obligation at Beginning of Year $ 1,249 $ 1,213 $ 1,116 $ 1,036 $ 50 $ 49 Business combinations — 33 185 1 6 — Service costs — — 26 24 1 1 Interest costs 43 51 21 27 2 2 Settlements — — (60 ) (8 ) — — Plan participants' contributions — — 5 4 1 1 Actuarial (gains) losses 92 30 (34 ) 150 6 1 Benefits paid (84 ) (78 ) (37 ) (30 ) (4 ) (4 ) Currency translation and other — — 102 (88 ) 1 — Benefit Obligation at End of Year $ 1,300 $ 1,249 $ 1,324 $ 1,116 $ 63 $ 50 Change in Fair Value of Plan Assets Fair Value of Plan Assets at Beginning of Year $ 944 $ 945 $ 853 $ 817 $ 8 $ 7 Business combinations — — 101 — — — Actual return on plan assets 161 71 32 125 1 1 Employer contribution 160 6 37 50 3 3 Settlements — — (60 ) (8 ) — — Plan participants' contributions — — 5 4 1 1 Benefits paid (84 ) (78 ) (37 ) (30 ) (4 ) (4 ) Currency translation and other — — 80 (105 ) — — Fair Value of Plan Assets at End of Year $ 1,181 $ 944 $ 1,011 $ 853 $ 9 $ 8 Funded Status $ (119 ) $ (305 ) $ (313 ) $ (263 ) $ (54 ) $ (42 ) Accumulated Benefit Obligation $ 1,300 $ 1,249 $ 1,256 $ 1,048 Amounts Recognized in Balance Sheet Non-current asset $ — $ — $ 100 $ 63 $ 6 $ 4 Current liability (7 ) (10 ) (10 ) (6 ) (3 ) (3 ) Non-current liability (112 ) (295 ) (403 ) (320 ) (57 ) (43 ) Net amount recognized $ (119 ) $ (305 ) $ (313 ) $ (263 ) $ (54 ) $ (42 ) Amounts Recognized in Accumulated Other Comprehensive Loss Net actuarial loss $ 156 $ 171 $ 126 $ 170 $ 11 $ 6 Prior service credits — — 10 8 — — Net amount recognized $ 156 $ 171 $ 136 $ 178 $ 11 $ 6 The actuarial assumptions used to compute the funded status for the plans are based upon information available as of December 31, 2017 and 2016 and are as follows: Domestic Pension Benefits Non-U.S. Pension Benefits Postretirement Benefits 2017 2016 2017 2016 2017 2016 Weighted Average Assumptions Used to Determine Projected Benefit Obligations Discount rate 3.55 % 4.07 % 2.10 % 1.95 % 3.43 % 3.77 % Average rate of increase in employee compensation 4.00 % 4.00 % 2.59 % 3.09 % — — Initial healthcare cost trend rate 6.73 % 6.70 % Ultimate healthcare cost trend rate 5.04 % 5.08 % The actuarial assumptions used to compute the net periodic pension benefit cost (income) are based upon information available as of the beginning of the year, as presented in the following table: Domestic Pension Benefits Non-U.S. Pension Benefits 2017 2016 2015 2017 2016 2015 Weighted Average Assumptions Used to Determine Net Benefit Cost (Income) Discount rate 4.06 % 4.25 % 4.00 % 1.95 % 2.83 % 2.69 % Average rate of increase in employee compensation 4.00 % 4.00 % 4.00 % 3.10 % 3.06 % 3.03 % Expected long-term rate of return on assets 6.50 % 7.00 % 7.00 % 3.11 % 3.74 % 4.21 % The ultimate healthcare cost trend rates for the postretirement benefit plans are expected to be reached between 2018 and 2033 . The discount rate reflects the rate the company would have to pay to purchase high-quality investments that would provide cash sufficient to settle its current pension obligations. The discount rate is determined based on a range of factors, including the rates of return on high-quality, fixed-income corporate bonds and the related expected duration of the obligations or, in certain instances, the company has used a hypothetical portfolio of high quality instruments with maturities that mirror the benefit obligation in order to accurately estimate the discount rate relevant to a particular plan. The company utilizes a full yield curve approach in the estimation of these components by applying the specific spot-rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The expected long-term rate of return on plan assets reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for the benefits included in the projected benefit obligations. In determining the expected long-term rate of return on plan assets, the company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. In addition, the company may consult with and consider the opinions of financial and other professionals in developing appropriate return benchmarks. Asset management objectives include maintaining an adequate level of diversification to reduce interest rate and market risk and providing adequate liquidity to meet immediate and future benefit payment requirements. The expected rate of compensation increase reflects the long-term average rate of salary increases and is based on historic salary increase experience and management’s expectations of future salary increases. The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost in 2018 are not material. The projected benefit obligation and fair value of plan assets for the company’s qualified and non-qualified pension plans with projected benefit obligations in excess of plan assets are as follows: Pension Plans (In millions) 2017 2016 Pension Plans with Projected Benefit Obligations in Excess of Plan Assets Projected benefit obligation $ 2,059 $ 1,907 Fair value of plan assets 1,527 1,276 The accumulated benefit obligation and fair value of plan assets for the company's qualified and non-qualified pension plans with accumulated benefit obligations in excess of plan assets are as follows: Pension Plans (In millions) 2017 2016 Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets Accumulated benefit obligation $ 1,962 $ 1,847 Fair value of plan assets 1,495 1,275 The measurement date used to determine benefit information is December 31 for all plan assets and benefit obligations. The net periodic pension benefit cost (income) includes the following components: Domestic Pension Benefits Non-U.S. Pension Benefits (In millions) 2017 2016 2015 2017 2016 2015 Components of Net Benefit Cost (Income) Service cost-benefits earned $ — $ — $ — $ 26 $ 24 $ 25 Interest cost on benefit obligation 43 51 50 21 27 28 Expected return on plan assets (56 ) (49 ) (54 ) (29 ) (28 ) (33 ) Amortization of actuarial net loss 2 — — 9 7 9 Settlement/curtailment loss (gain) 1 — — 5 — 1 Special termination benefits — — — — — 1 Net periodic benefit cost (income) $ (10 ) $ 2 $ (4 ) $ 32 $ 30 $ 31 The net periodic postretirement benefit cost was not material in 2017 , 2016 and 2015 . Expected benefit payments are estimated using the same assumptions used in determining the company’s benefit obligation at December 31, 2017 . Benefit payments will depend on future employment and compensation levels, average years employed and average life spans, among other factors, and changes in any of these factors could significantly affect these estimated future benefit payments. Estimated future benefit payments during the next five years and in the aggregate for the five fiscal years thereafter, are as follows: (In millions) Domestic Pension Benefits Non-U.S. Pension Benefits Post- retirement Benefits Expected Benefit Payments 2018 $ 87 $ 46 $ 3 2019 84 37 3 2020 83 39 3 2021 85 41 3 2022 82 43 3 2023-2027 394 250 16 A change in the assumed healthcare cost trend rate by one percentage point effective January 2017 would not have caused a material change in the accumulated postretirement benefit obligation as of December 31, 2017 and the 2017 aggregate of service and interest costs. Domestic Pension Plan Assets The company’s overall objective is to manage the assets in a liability framework where investments are selected that are expected to have similar changes in fair value as the related liabilities will have upon changes in interest rates. The company invests in a portfolio of both return-seeking and liability-hedging assets, primarily through the use of institutional collective funds, to achieve long-term growth and to insulate the funded position from interest rate volatility. The strategic asset allocation uses a combination of risk controlled and index strategies in fixed income and global equities. The company also has a small portfolio (comprising less than 1% of invested assets) of private equity investments. The target allocations for the remaining investments are approximately 10% to funds investing in U.S. equities, approximately 10% to funds investing in international equities and approximately 80% to funds investing in fixed income securities. The portfolio maintains enough liquidity at all times to meet the near-term benefit payments. Non-U.S. Pension Plan Assets The company maintains specific plan assets for many of the individual pension plans outside the U.S. The investment strategy of each plan has been uniquely established based on the country specific standards and characteristics of the plans. Several of the plans have contracts with insurance companies whereby the market risks of the benefit obligations are borne by the insurance companies. When assets are held directly in investments, generally the objective is to invest in a portfolio of diversified assets with a variety of fund managers. The investments may include hedge funds, multi-asset funds, alternative investments and derivative funds with the target asset allocations ranging from approximately 0% - 25% for equities, 0% - 100% for fixed income, 0% - 20% for hedge funds, 0% - 45% for multi-asset funds, 0% to 15% for alternative investments and 0% - 22% for funds holding derivatives. The derivatives held by the funds are primarily interest rate swaps intended to match the movements in the plan liabilities as well as equity futures in a synthetic equity fund which provide targeted exposure to equity markets without the fund holding individual equity positions. Each plan maintains enough liquidity at all times to meet the near-term benefit payments. The fair values of the company’s plan assets at December 31, 2017 and 2016 , by asset category are as follows: December 31, Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Not Subject to Leveling (1) (In millions) 2017 (Level 1) (Level 2) (Level 3) Domestic Pension Plan Assets U.S. equity funds $ 163 $ — $ — $ — $ 163 International equity funds 180 — — — 180 Fixed income funds 761 — — — 761 Private equity funds 2 — — — 2 Money market funds 75 — — — 75 Total Domestic Pension Plans $ 1,181 $ — $ — $ — $ 1,181 Non-U.S. Pension Plan Assets Equity funds $ 75 $ — $ — $ — $ 75 Fixed income funds 312 — — — 312 Hedge funds 77 — — — 77 Multi-asset funds 79 — — — 79 Derivative funds 194 — — — 194 Alternative investments 17 — — — 17 Insurance contracts 202 — 202 — — Cash / money market funds 55 40 — — 15 Total Non-U.S. Pension Plans $ 1,011 $ 40 $ 202 $ — $ 769 (1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. December 31, Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Not Subject to Leveling (1) (In millions) 2016 (Level 1) (Level 2) (Level 3) Domestic Pension Plan Assets U.S. equity funds $ 259 $ — $ — $ — $ 259 International equity funds 229 — — — 229 Fixed income funds 437 — — — 437 Private equity funds 2 — — — 2 Money market funds 17 — — — 17 Total Domestic Pension Plans $ 944 $ — $ — $ — $ 944 Non-U.S. Pension Plan Assets Equity funds $ 123 $ 56 $ — $ — $ 67 Fixed income funds 294 20 — — 274 Hedge funds 80 — — — 80 Multi-asset funds 12 — — — 12 Derivative funds 158 — — — 158 Insurance contracts 177 — 177 — — Cash / money market funds 9 5 — — 4 Total Non-U.S. Pension Plans $ 853 $ 81 $ 177 $ — $ 595 (1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The tables above present the fair value of the company’s plan assets in accordance with the fair value hierarchy (Note 12 ). Certain pension plan assets are measured at net asset value per share and are reported as a level 2 investment above due to the company’s ability to redeem its investment either at the balance sheet date or within limited time restrictions. Certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts of these investments presented in the above tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension plan assets. These investments were also redeemable at the balance sheet date or within limited time restrictions. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | Note 7 . Income Taxes The components of income from continuing operations before provision for income taxes are as follows: (In millions) 2017 2016 2015 U.S. $ 655 $ 493 $ 851 Non-U.S. 1,774 1,531 1,085 Income from Continuing Operations $ 2,429 $ 2,024 $ 1,936 The components of the provision for income taxes of continuing operations are as follows: (In millions) 2017 2016 2015 Current Income Tax Provision Federal $ 1,259 $ 280 $ 184 Non-U.S. 576 349 363 State 62 9 9 1,897 638 556 Deferred Income Tax Provision (Benefit) Federal $ (1,437 ) $ (510 ) $ (297 ) Non-U.S. (271 ) (104 ) (288 ) State 12 (25 ) (15 ) (1,696 ) (639 ) (600 ) Provision for (benefit from) income taxes $ 201 $ (1 ) $ (44 ) The company generally receives a tax deduction upon the exercise of non-qualified stock options by employees, or the vesting of restricted stock units held by employees, for the difference between the exercise price and the market price of the underlying common stock on the date of exercise. Prior to 2017, the amount of the tax deduction in excess of compensation cost recognized was allocated to capital in excess of par value. Beginning in 2017, these excess tax benefits reduce the tax provision as described in Note 1 . In 2017 , the company's tax provision was reduced by $65 million of such benefits. In 2016 and 2015 , $53 million and $63 million , respectively, of such benefits were allocated to capital in excess of par value. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was enacted. The Tax Act includes significant changes to existing U.S. tax laws that affect the company, including a reduction of the U.S. corporate income tax rate from 35% to 21% beginning in 2018 and creation of a territorial tax system with a one-time transition tax on deemed repatriated earnings and profits of foreign subsidiaries (transition tax). The company recognized a net charge for certain aspects of the Tax Act in its 2017 financial statements for which the accounting is provisional, but reasonable estimates could be determined. The company recognized a $1.25 billion income tax charge for the year ended December 31, 2017, related to the transition tax. The company also remeasured its net U.S. deferred tax balances affected by the Tax Act’s reduction in the U.S. corporate income tax rate, which resulted in a $1.06 billion income tax benefit for the year ended December 31, 2017. Although the net $204 million charge represents what the company believes is a reasonable estimate of the impact of the Tax Act, the components of the net charge are provisional and may change. For example, these estimates may be impacted by the need for further analysis and future clarification and guidance regarding available tax accounting methods and elections, earnings and profits computations and state tax conformity to federal tax changes. The provision for income taxes in the accompanying statement of income differs from the provision calculated by applying the statutory federal income tax rate of 35% to income from continuing operations before provision for income taxes due to the following: (In millions) 2017 2016 2015 Provision for Income Taxes at Statutory Rate $ 850 $ 708 $ 678 Increases (Decreases) Resulting From: Foreign rate differential (380 ) (322 ) (275 ) Foreign exchange loss on inter-company debt refinancing (237 ) — — Income tax credits (273 ) (318 ) (316 ) Manufacturing deduction (42 ) (38 ) (38 ) Withholding taxes 55 — — Singapore tax holiday (25 ) (23 ) (21 ) Impact of change in tax laws and apportionment on deferred taxes (1,121 ) 2 (38 ) Transition tax 1,250 — — Provision of tax reserves, net 99 12 18 Excess tax benefits from stock options and restricted stock units (65 ) — — Tax return reassessments and settlements 8 (41 ) (54 ) Other, net 82 19 2 Provision for (benefit from) income taxes $ 201 $ (1 ) $ (44 ) The company has operations and a taxable presence in approximately 50 countries outside the U.S. The company's effective income tax rate differs from the U.S. federal statutory rate each year due to certain operations that are subject to tax incentives, state and local taxes, and foreign taxes that are different than the U.S. federal statutory rate. The foreign tax credits discussed below are the result of foreign earnings and profits remitted or deemed remitted to the U.S. during the reporting year and the U.S. treatment of taxes paid in the foreign jurisdictions in the years those profits were originally earned. In 2017, the company continued to implement tax planning initiatives related to non U.S. subsidiaries. These non-U.S. subsidiaries incurred foreign tax obligations, and made cash and deemed distributions to the company’s U.S. operations which resulted in no net tax cost. As a result of these distributions, the company benefitted from U.S. foreign tax credits of $86 million , offset in part by additional U.S. income taxes of $53 million on the related foreign income (which reduced the benefit from the foreign rate differential in 2017). The company also implemented foreign tax credit planning in Sweden which resulted in $20 million of foreign tax credits, with no related incremental U.S. income tax expense. In 2016, the company continued to implement tax planning initiatives related to non-U.S. subsidiaries. These non-U.S. subsidiaries incurred foreign tax obligations, and made cash and deemed distributions to the company’s U.S. operations which resulted in no net tax cost. As a result of these distributions, the company benefitted from U.S. foreign tax credits of $91 million , offset in part by additional U.S. income taxes of $37 million on the related foreign income (which reduced the benefit from the foreign rate differential in 2016). The company also implemented foreign tax credit planning in Sweden which resulted in $100 million of foreign tax credits, with no related incremental U.S. income tax expense. In 2015, the company implemented tax planning initiatives related to non-U.S. subsidiaries. These non-U.S. subsidiaries incurred foreign tax obligations, and made cash and deemed distributions to the company’s U.S. operations which resulted in no net tax cost. As a result of these distributions, the company benefitted from U.S. foreign tax credits of $111 million , offset in part by additional U.S. income taxes of $46 million on the related foreign income (which reduced the benefit from the foreign tax rate differential in 2015). The company also implemented foreign tax credit planning in Sweden which resulted in $80 million of foreign tax credits, with no related incremental U.S. income tax expense. Also in 2015, the company recorded benefits totaling $54 million related to additional prior year foreign tax and other credits as well as restructuring and other costs associated with the 2014 acquisition of Life Technologies. In 2017 the company refinanced certain long term inter-company debt which resulted in an income tax benefit of $237 million related to a foreign exchange loss recognized for income tax purposes. The company has significant activities in Singapore and has received considerable tax incentives. The local taxing authority granted the company pioneer company status which provides an incentive encouraging companies to undertake activities that have the effect of promoting economic or technological development in Singapore. This incentive equates to a tax exemption on earnings associated with most of the company’s manufacturing activities in Singapore and continues through December 31, 2026 . In 2017 , 2016 and 2015 , the impact of this tax holiday decreased the annual effective tax rates by 1.0 percentage points, 1.1 percentage points and 1.1 percentage points, respectively, and increased diluted earnings per share by approximately $0.06 , $0.06 and $0.05 , respectively. In connection with the March 2017 extension of this agreement until 2026, the company recorded a benefit in Q1 2017 of approximately $65 million ( $0.16 per diluted share) for the effect on deferred tax balances of the extended tax holiday. Net deferred tax asset (liability) in the accompanying balance sheet consists of the following: (In millions) 2017 2016 Deferred Tax Asset (Liability) Depreciation and amortization $ (3,957 ) $ (4,219 ) Net operating loss and credit carryforwards 1,150 1,453 Reserves and accruals 139 192 Accrued compensation 265 372 Foreign undistributed earnings — (156 ) Inventory basis difference 81 110 Other capitalized costs 61 84 Unrealized losses on hedging instruments 125 36 Other, net 126 66 Deferred tax assets (liabilities), net before valuation allowance (2,010 ) (2,062 ) Less: Valuation allowance 256 113 Deferred tax assets (liabilities), net $ (2,266 ) $ (2,175 ) The company estimates the degree to which tax assets and loss and credit carryforwards will result in a benefit based on expected profitability by tax jurisdiction and provides a valuation allowance for tax assets and loss and credit carryforwards that it believes will more likely than not expire unutilized. At December 31, 2017 , all of the company’s valuation allowance relates to deferred tax assets, primarily net operating losses, for which any subsequently recognized tax benefits will reduce income tax expense. The changes in the valuation allowance are as follows: Year Ended December 31, (In millions) 2017 2016 2015 Beginning Balance $ 113 $ 109 $ 116 Additions charged to income tax provision 28 — — Additions due to acquisitions 108 25 — Currency translation and other 7 (21 ) (7 ) Ending Balance $ 256 $ 113 $ 109 At December 31, 2017 , the company had federal, state and non-U.S. net operating loss carryforwards of $195 million , $1.86 billion and $4.09 billion , respectively. Use of the carryforwards is limited based on the future income of certain subsidiaries. The federal and state net operating loss carryforwards expire in the years 2018 through 2037 . Of the non-U.S. net operating loss carryforwards, $1.43 billion expire in the years 2018 through 2037 , and the remainder do not expire. The company operates in various jurisdictions around the world. A provision has not been made for certain U.S. state income taxes or additional non-U.S. taxes on $13.21 billion of undistributed earnings of international subsidiaries that could be subject to taxation if remitted to the U.S. because such amounts are intended to be reinvested outside the United States indefinitely. It is not practicable to estimate the unrecognized tax liability due to i) the extent of uncertainty as to which remittance structure would be used (among several possibilities) should a decision be made to repatriate; and ii) the implications of indirect taxes, including withholding taxes that could potentially be required depending on the repatriation structure. Unrecognized Tax Benefits As of December 31, 2017 , the company had $1.41 billion of unrecognized tax benefits which, if recognized, would reduce the effective tax rate. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: (In millions) 2017 2016 2015 Balance at beginning of year $ 802 $ 350 $ 214 Additions due to acquisitions 31 54 — Additions for tax positions of current year 565 342 14 Additions for tax positions of prior years 51 94 121 Closure of tax years — (28 ) (5 ) Settlements (40 ) (10 ) 6 Balance at end of year $ 1,409 $ 802 $ 350 During 2017, the company’s unrecognized tax benefits provisionally increased $511 million as a result of uncertain tax positions relating to the scope of the Tax Act’s one-time transition tax, $54 million relating to foreign tax positions, $43 million as a result of a foreign exchange loss recognized on the refinancing of certain long term inter-company debt and $31 million due to an acquisition. All of the total $1.41 billion liability is classified as a long-term liability. The company does not expect its unrecognized tax benefits to change significantly over the next twelve months. During 2016, the company’s unrecognized tax benefits increased $342 million due to the uncertainty around the deductibility of a foreign exchange loss on intercompany investments, $54 million due to acquisitions, $43 million due to tax planning related to prior years that resulted in amended tax filings, $35 million relating to foreign tax positions and $14 million due to the utilization of deferred tax assets. In 2016, the company also settled the Life Technologies tax audit for the 2012 to 2014 tax years which reduced the reserve on unrecognized tax benefits by $10 million . During 2015, the company’s unrecognized tax benefits increased $70 million due to the utilization of deferred tax assets and $28 million relating to foreign net operating losses on which the company has a deferred tax asset established. This increase was offset in part by a reduction of $10 million from a resolution of an IRS audit of Life Technologies for which a reserve had previously been established. The company classified interest and penalties related to unrecognized tax benefits as income tax expense. The total amount of interest and penalties related to uncertain tax positions and recognized in the balance sheet as of December 31, 2017 and 2016 was $31 million and $24 million , respectively. The company conducts business globally and, as a result, Thermo Fisher or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as Australia, Canada, China, Denmark, Finland, France, Germany, Japan, Singapore, Sweden, the United Kingdom and the United States. With few exceptions, the company is no longer subject to U.S. federal, state and local, or non-U.S., income tax examinations for years before 2011. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 8 . Earnings per Share (In millions except per share amounts) 2017 2016 2015 Income from Continuing Operations $ 2,228 $ 2,025 $ 1,980 Loss from Discontinued Operations (3 ) (3 ) (5 ) Net Income $ 2,225 $ 2,022 $ 1,975 Basic Weighted Average Shares 395 395 399 Plus Effect of: Stock options and restricted units 3 2 3 Diluted Weighted Average Shares 398 397 402 Basic Earnings per Share: Continuing operations $ 5.65 $ 5.13 $ 4.97 Discontinued operations (0.01 ) (0.01 ) (0.01 ) Basic Earnings per Share $ 5.64 $ 5.12 $ 4.96 Diluted Earnings per Share: Continuing operations $ 5.60 $ 5.10 $ 4.93 Discontinued operations (0.01 ) (0.01 ) (0.01 ) Diluted Earnings per Share $ 5.59 $ 5.09 $ 4.92 Antidilutive Stock Options Excluded from Diluted Weighted Average Shares 2 2 3 |
Debt and Other Financing Arrang
Debt and Other Financing Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt and Other Financing Arrangements [Text Block] | Note 9 . Debt and Other Financing Arrangements Effective Interest Rate at December 31, December 31, December 31, (Dollars in millions) 2017 2017 2016 Commercial Paper (0.26 )% $ 960 $ 953 Term Loan — 825 1.85% 5-Year Senior Notes, Due 1/15/2018 — 500 Floating Rate 2-Year Senior Notes, Due 8/9/2018 (euro-denominated) 0.37 % 721 631 2.15% 3-Year Senior Notes, Due 12/14/2018 2.35 % 450 450 2.40% 5-Year Senior Notes, Due 2/1/2019 2.59 % 900 900 Floating Rate 2-Year Senior Notes, Due 7/24/2019 (euro-denominated) 0.10 % 600 — 6.00% 10-Year Senior Notes, Due 3/1/2020 2.97 % 750 750 4.70% 10-Year Senior Notes, Due 5/1/2020 4.23 % 300 300 1.50% 5-Year Senior Notes, Due 12/1/2020 (euro-denominated) 1.62 % 510 447 5.00% 10-Year Senior Notes, Due 1/15/2021 3.24 % 400 400 4.50% 10-Year Senior Notes, Due 3/1/2021 5.37 % 1,000 1,000 3.60% 10-Year Senior Notes, Due 8/15/2021 5.19 % 1,100 1,100 3.30% 7-Year Senior Notes, Due 2/15/2022 3.43 % 800 800 2.15% 7-Year Senior Notes, Due 7/21/2022 (euro-denominated) 2.28 % 600 526 3.15% 10-Year Senior Notes, Due 1/15/2023 3.31 % 800 800 3.00% 7-Year Senior Notes, Due 4/15/2023 5.42 % 1,000 1,000 4.15% 10-Year Senior Notes, Due 2/1/2024 4.16 % 1,000 1,000 0.75% 8-Year Senior Notes, Due 9/12/2024 (euro-denominated) 0.95 % 1,201 1,052 2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) 2.10 % 768 673 3.65% 10-Year Senior Notes, Due 12/15/2025 3.77 % 350 350 1.40% 8.5-Year Senior Notes, Due 1/23/2026 (euro-denominated) 1.53 % 840 — 2.95% 10-Year Senior Notes, Due 9/19/2026 3.19 % 1,200 1,200 1.45% 10-Year Senior Notes, Due 3/16/2027 (euro-denominated) 1.66 % 600 — 3.20% 10-Year Senior Notes, Due 8/15/2027 3.39 % 750 — 1.375% 12-Year Senior Notes, Due 9/12/2028 (euro-denominated) 1.46 % 721 631 1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) 2.08 % 840 — 2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) 2.94 % 840 — 5.30% 30-Year Senior Notes, Due 2/1/2044 5.37 % 400 400 4.10% 30-Year Senior Notes, Due 8/15/2047 4.23 % 750 — Other 24 13 Total Borrowings at Par Value 21,175 16,701 Fair Value Hedge Accounting Adjustments (70 ) (50 ) Unamortized (Discount) Premium, Net (2 ) 52 Unamortized Debt Issuance Costs (95 ) (76 ) Total Borrowings at Carrying Value 21,008 16,627 Less: Short-term Obligations and Current Maturities 2,135 1,255 Long-term Obligations $ 18,873 $ 15,372 The effective interest rates for the fixed-rate debt include the stated interest on the notes, the accretion of any discount or amortization of any premium, the amortization of any debt issuance costs and, if applicable, adjustments related to hedging. See Note 12 for fair value information pertaining to the company’s long-term obligations. As of December 31, 2017 , the annual repayment requirements for debt obligations are as follows: (In millions) 2018 $ 2,135 2019 1,505 2020 1,564 2021 2,503 2022 1,403 2023 and Thereafter 12,065 $ 21,175 As of December 31, 2017 and 2016 , short-term obligations and current maturities of long-term obligations in the accompanying balance sheet included $960 million and $953 million , respectively, of commercial paper, short-term bank borrowings and borrowings under lines of credit of certain of the company’s subsidiaries. The weighted average interest rate for short-term borrowings was (0.26)% and 0.15% at December 31, 2017 and 2016 , respectively. In addition to available borrowings under the company’s revolving credit agreements, discussed below, the company had unused lines of credit of $73 million as of December 31, 2017 . These unused lines of credit generally provide for short-term unsecured borrowings at various interest rates. Credit Facilities The company has a revolving credit facility with a bank group that provides for up to $2.50 billion of unsecured multi-currency revolving credit. The facility expires in July 2021 . The agreement calls for interest at either a LIBOR-based rate, a EURIBOR-based rate (for funds drawn in Euro) or a rate based on the prime lending rate of the agent bank, at the company’s option. The agreement contains affirmative, negative and financial covenants, and events of default customary for financings of this type. The covenants in our revolving credit facility (the Facility) include a Consolidated Leverage Ratio (total debt-to-Consolidated EBITDA) and a Consolidated Interest Coverage ratio (Consolidated EBITDA to Consolidated Interest Expense), as such terms are defined in the Facility. Specifically, the company has agreed that, so long as any lender has any commitment under the Facility, any letter of credit is outstanding under the Facility, or any loan or other obligation is outstanding under the Facility, it will maintain a maximum Consolidated Leverage Ratio of 4.0 :1.0 for the first and second quarters of 2018 and then stepping down to 3.5 :1.0 for the third quarter of 2018 and thereafter. The company has also agreed that so long as any lender has any commitment under the Facility or any letter of credit is outstanding under the Facility, or any loan or other obligation is outstanding under the Facility, it will maintain a minimum Consolidated Interest Coverage Ratio of 3.0 :1.0 as of the last day of any fiscal quarter. As of December 31, 2017 , no borrowings were outstanding under the Facility, although available capacity was reduced by approximately $77 million as a result of outstanding letters of credit. Commercial Paper Programs The company has commercial paper programs pursuant to which it may issue and sell unsecured, short-term promissory notes (CP Notes). Under the U.S. program, a) maturities may not exceed 397 days from the date of issue and b) the CP Notes are issued on a private placement basis under customary terms in the commercial paper market and are not redeemable prior to maturity nor subject to voluntary prepayment. Under the euro program, maturities may not exceed 183 days and may be denominated in euro, U.S. dollars, Japanese yen, British pounds sterling, Swiss franc, Canadian dollars or other currencies. Under both programs, the CP Notes are issued at a discount from par (or premium to par, in the case of negative interest rates), or, alternatively, are sold at par and bear varying interest rates on a fixed or floating basis. As of December 31, 2017 , outstanding borrowings under these programs were $960 million , with a weighted average remaining period to maturity of 49 days and are classified as short-term obligations in the accompanying balance sheet. Senior Notes Interest on the floating rate senior notes is payable quarterly. Interest is payable annually on the other euro-denominated senior notes and semi-annually on all other senior notes. Each of the notes may be redeemed at a redemption price of 100% of the principal amount plus a specified make-whole premium plus accrued interest. The company is subject to certain affirmative and negative covenants under the indentures governing the senior notes, the most restrictive of which limits the ability of the company to pledge principal properties as security under borrowing arrangements. In 2016, Thermo Fisher Scientific (Finance I) B.V., a wholly-owned finance subsidiary of the company issued the Floating Rate Senior Notes due 2018 included in the table above. This subsidiary has no independent function other than financing activities. The Floating Rate Senior Notes due 2018 are fully and unconditionally guaranteed by the company and no other subsidiaries of the company have guaranteed the obligations. Prior to issuing the 3.00% Senior Notes due 2023, the company had entered into an agreement to hedge its exposure related to the interest rate on the anticipated borrowings (described under the heading "Cash Flow Hedge Arrangements" in Note 12 ) that was terminated in April 2016. The company had a cash outlay of $75 million in 2016 associated with termination of the arrangement, included in other financing activities, net, in the accompanying statement of cash flows. Interest Rate Swap Arrangements In 2016, the company terminated certain of its fixed to floating rate swap arrangements. The terminated swaps were accounted for as fair value hedges. As a result of terminating these arrangements, the company received $61 million (excluding accrued interest) in cash in 2016, included in other financing activities, net, in the accompanying statement of cash flows. The proceeds were recorded as part of the carrying value of the underlying debt and will be amortized as a reduction to interest expense over the remaining terms of the respective debt instruments. Subsequently, the company entered into new swap arrangements which are included in the table below. The company has entered into LIBOR-based interest rate swap arrangements with various banks on several of its outstanding senior notes. The aggregate amounts of the swaps are equal to the principal amounts of the notes and the payment dates of the swaps coincide with the interest payment dates of the notes. The swap contracts provide for the company to pay a variable interest rate and receive a fixed rate. The variable interest rates reset monthly. The swaps have been accounted for as fair value hedges of the notes. See Note 12 for additional information. The following table summarizes the outstanding interest rate swap arrangements on the company's senior notes at December 31, 2017 : Aggregate Notional Amount Pay Rate as of (Dollars in millions) Pay Rate December 31, Receive Rate 4.50% Senior Notes due 2021 1,000 1-month LIBOR + 3.4420% 4.8027 % 4.50 % 3.60% Senior Notes due 2021 1,100 1-month LIBOR + 2.5150% 3.9920 % 3.60 % 3.00% Senior Notes due 2023 1,000 1-month LIBOR + 1.7640% 3.2410 % 3.00 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Text Block] | Note 10 . Commitments and Contingencies Operating Leases The company leases certain logistics, office, and manufacturing facilities. Income from continuing operations includes expense from operating leases of $198 million , $182 million and $181 million in 2017 , 2016 and 2015 , respectively. The following is a summary of annual future minimum lease and rental commitments under noncancelable operating leases as of December 31, 2017 : (In millions) 2018 $ 188 2019 154 2020 123 2021 92 2022 80 2023 and Thereafter 169 $ 806 Purchase Obligations The company has entered into unconditional purchase obligations, in the ordinary course of business, that include agreements to purchase goods, services or fixed assets and to pay royalties that are enforceable and legally binding and that specify all significant terms including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Purchase obligations exclude agreements that are cancelable at any time without penalty. The aggregate amount of the company’s unconditional purchase obligations totaled $733 million at December 31, 2017 and the majority of these obligations are expected to be settled during 2018 . Letters of Credit, Guarantees and Other Commitments Outstanding letters of credit and bank guarantees totaled $183 million at December 31, 2017 . Substantially all of these letters of credit and guarantees expire before 2024. Outstanding surety bonds and other guarantees totaled $35 million at December 31, 2017 . The expiration of these bonds and guarantees ranges through 2020. The letters of credit, bank guarantees and surety bonds principally secure performance obligations, and allow the holder to draw funds up to the face amount of the letter of credit, bank guarantee or surety bond if the applicable business unit does not perform as contractually required. The company is a guarantor of pension plan obligations of a divested business. The purchaser of the divested business has agreed to pay for the pension benefits, however the company was required to guarantee payment of these pension benefits should the purchaser fail to do so. The amount of the guarantee at December 31, 2017 was $43 million . In connection with the sale of businesses of the company, the buyers have assumed certain contractual obligations of such businesses and have agreed to indemnify the company with respect to those assumed liabilities. In the event a third-party to a transferred contract does not recognize the transfer of obligations or a buyer defaults on its obligations under the transferred contract, the company could be liable to the third-party for such obligations. However, in such event, the company would be entitled to seek indemnification from the buyer. In 2016, the company entered into an off-balance sheet build-to-suit financing arrangement with a financial institution to fund construction of an operating facility in the U.S. Upon completion of construction in 2018, a five-year lease will commence with options to purchase the facility or renew the lease for up to three 5-year terms. The company has agreed with the lessor to comply with certain financial covenants consistent with its other debt arrangements (Note 9 ), and has guaranteed the facility's residual value at the end of the lease. The company has also guaranteed the residual value of two other leased operating facilities with initial lease terms ending in 2019 and 2020. The aggregate maximum guarantee under these three lease arrangements is $155 million . Indemnifications In conjunction with certain transactions, primarily divestitures, the company has agreed to indemnify the other parties with respect to certain liabilities related to the businesses that were sold or leased properties that were abandoned (e.g., retention of certain environmental, tax, employee and product liabilities). The scope and duration of such indemnity obligations vary from transaction to transaction. Where appropriate, an obligation for such indemnifications is recorded as a liability. Generally, a maximum obligation cannot be reasonably estimated. Other than obligations recorded as liabilities at the time of divestiture, historically the company has not made significant payments for these indemnifications. In connection with the company’s efforts to reduce the number of facilities that it occupies, the company has vacated some of its leased facilities or sublet them to third parties. When the company sublets a facility to a third-party, it remains the primary obligor under the master lease agreement with the owner of the facility. As a result, if a third-party vacates the sublet facility, the company would be obligated to make lease or other payments under the master lease agreement. The company believes that the financial risk of default by sublessors is individually and in the aggregate not material to the company’s financial position or results of operations. In connection with the sale of products in the ordinary course of business, the company often makes representations affirming, among other things, that its products do not infringe on the intellectual property rights of others and agrees to indemnify customers against third-party claims for such infringement. The company has not been required to make material payments under such provisions. Environmental Matters The company is currently involved in various stages of investigation and remediation related to environmental matters. The company cannot predict all potential costs related to environmental remediation matters and the possible impact on future operations given the uncertainties regarding the extent of the required cleanup, the complexity and interpretation of applicable laws and regulations, the varying costs of alternative cleanup methods and the extent of the company’s responsibility. Expenses for environmental remediation matters related to the costs of installing, operating and maintaining groundwater-treatment systems and other remedial activities related to historical environmental contamination at the company’s domestic and international facilities were not material in any period presented. The company records accruals for environmental remediation liabilities, based on current interpretations of environmental laws and regulations, when it is probable that a liability has been incurred and the amount of such liability can be reasonably estimated. The company calculates estimates based upon several factors, including reports prepared by environmental specialists and management’s knowledge of and experience with these environmental matters. The company includes in these estimates potential costs for investigation, remediation and operation and maintenance of cleanup sites. At December 31, 2017 , the company’s total environmental liability was approximately $52 million . While management believes the accruals for environmental remediation are adequate based on current estimates of remediation costs, the company may be subject to additional remedial or compliance costs due to future events such as changes in existing laws and regulations, changes in agency direction or enforcement policies, developments in remediation technologies or changes in the conduct of the company’s operations, which could have a material adverse effect on the company’s financial position, results of operations or cash flows. Litigation and Related Contingencies There are various lawsuits and claims pending against the company including matters involving product liability, intellectual property, employment and commercial issues. The company determines the probability and range of possible loss based on the current status of each of these matters. A liability is recorded in the financial statements if it is believed to be probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The company establishes a liability that is an estimate of amounts expected to be paid in the future for events that have already occurred. The company accrues the most likely amount or at least the minimum of the range of probable loss when a range of probable loss can be estimated. The accrued liabilities are based on management’s judgment as to the probability of losses for asserted and unasserted claims and, where applicable, actuarially determined estimates. Accrual estimates are adjusted as additional information becomes known or payments are made. The amount of ultimate loss may differ from these estimates. Due to the inherent uncertainties associated with pending litigation or claims, the company cannot predict the outcome, nor, with respect to certain pending litigation or claims where no liability has been accrued, make a meaningful estimate of the reasonably possible loss or range of loss that could result from an unfavorable outcome. The company has no material accruals for pending litigation or claims for which accrual amounts are not disclosed below , nor are material losses deemed probable for such matters. It is reasonably possible, however, that an unfavorable outcome that exceeds the company’s current accrual estimate, if any, for one or more of the matters described below could have a material adverse effect on the company’s results of operations, financial position and cash flows. Product Liability, Workers Compensation and Other Personal Injury Matters The range of probable loss for product liability, workers compensation and other personal injury matters of the company’s continuing operations at December 31, 2017 , was approximately $237 million to $388 million on an undiscounted basis. The portion of these liabilities assumed in the 2006 merger with Fisher was recorded at its fair (present) value at the date of merger. The company’s accrual for all such matters in total, including the discounted liabilities, was $220 million at December 31, 2017 (or $242 million undiscounted). The accrual includes estimated defense costs and is gross of estimated amounts due from insurers of $93 million at December 31, 2017 (or $107 million undiscounted) that are included in other assets in the accompanying balance sheet. The portion of these insurance assets assumed in the merger with Fisher was also recorded at its fair value at the date of merger. In addition to the above accrual, as of December 31, 2017 , the company had a product liability accrual of $10 million (undiscounted) relating to divested businesses. The assets and liabilities assumed at the Fisher merger date were ascribed a fair value based on the present value of expected future cash flows, using a discount rate equivalent to the risk free rate of interest for monetary assets with comparable maturities (weighted average discount rate of 4.67% ). The discount on the liabilities of approximately $22 million and the discount on the assets of approximately $14 million (net discount $8 million ) are being accreted to interest expense over the expected settlement period. Although the company believes that the amounts accrued and estimated recoveries are probable and appropriate based on available information, including actuarial studies of loss estimates, the process of estimating losses and insurance recoveries involves a considerable degree of judgment by management and the ultimate amounts could vary materially. Insurance contracts do not relieve the company of its primary obligation with respect to any losses incurred. The collectability of amounts due from its insurers is subject to the solvency and willingness of the insurer to pay, as well as the legal sufficiency of the insurance claims. Management monitors the payment history as well as the financial condition and ratings of its insurers on an ongoing basis. Intellectual Property Matters On June 6, 2004, Enzo Biochem, Enzo Life Sciences and Yale University filed a complaint against Life Technologies in United States District Court for the District of Connecticut. The plaintiffs allege patent infringement by Applera’s labeled DNA terminator products used in DNA sequencing and fragment analysis. The plaintiff sought damages for alleged willful infringement, attorneys’ fees, costs, prejudgment interest, and injunctive relief. In November 2012, the jury awarded damages of $49 million . Prejudgment interest of $12 million was also granted. The $61 million judgment and interest was accrued by Life Technologies and the liability was assumed by the company as of the date of the acquisition. In March 2015 the United States Court of Appeals for the Federal Circuit vacated the judgment and returned the case to the District Court for further proceedings. In February 2016, the District Court granted the company’s motion for summary judgment of non-infringement and entered judgment in its favor. Enzo appealed that decision to the Federal Circuit in March 2016. In August 2017, the Federal Circuit affirmed the District Court’s judgment that the company’s products at issue in the litigation do not infringe Enzo’s patent. Enzo's right to appeal lapsed in the fourth quarter of 2017 and the company reversed the accrual as a reduction of restructuring and other costs in the accompanying income statement. On May 26, 2010, Promega Corp. & Max-Planck-Gesellschaft Zur Forderung Der Wissenschaften EV filed a complaint against Life Technologies in the United States District Court for the Western District of Wisconsin. The plaintiffs allege patent infringement by sales and uses of Applied Biosystems’ short tandem repeat DNA identification products outside the scope of a 2006 license agreement. The plaintiff sought damages for alleged willful infringement, attorneys’ fees, costs, prejudgment interest, and injunctive relief. Although a jury initially found willful infringement and assessed damages at $52 million the District Court subsequently overturned the verdict on the grounds that the plaintiff had failed to prove infringement. The District Court entered judgment in favor of Life Technologies; and plaintiffs and Life Technologies filed cross-appeals with the United States Court of Appeals for the Federal Circuit. The $52 million award was accrued by Life Technologies and the liability was assumed by the company as of the date of the acquisition. On December 15, 2014, the Court of Appeals issued a decision invalidating four of the plaintiffs’ patents, but finding infringement by Life Technologies of the remaining fifth patent. The Court of Appeals also ordered a new trial on damages in the District Court. Life Technologies' petition to the U.S. Supreme Court seeking review of the Court of Appeals’ judgment was granted on June 27, 2016, and the case was stayed in the District Court pending the outcome of the Supreme Court’s review. On February 22, 2017, the Supreme Court issued a decision reversing the Court of Appeals’ judgment and remanding the case to the Court of Appeals for further proceedings in view of the Supreme Court’s legal interpretation of the patent law statute in question. On November 13, 2017 the Court of Appeals issued a decision holding that Promega is not entitled to recover any damages and affirming the District Court’s grant of judgment in favor of Life Technologies and denial of Promega’s motion for a new trial. The Court of Appeals denied Promega’s petition for rehearing on February 14, 2018, and Promega has 90 days therefrom to file a petition with the U.S. Supreme Court seeking review of the Court of Appeals' decision. The company has maintained the $52 million accrual, pending conclusion of this matter. On June 3, 2013, Unisone Strategic IP filed a complaint against Life Technologies in the United States District Court for the Southern District of California alleging patent infringement by Life Technologies’ supply chain management system software, which operates with product "supply centers" installed at customer sites. Plaintiff seeks damages for alleged willful infringement, attorneys’ fees, costs, and injunctive relief. On August 24, 2017, Unisone filed an appeal from a decision by the Patent Trial and Appeal Board that found the challenged patent claims invalid. Commercial Matters On May 5, 2015, and February 12, 2016, the Academy of Allergy & Asthma in Primary Care and United Biologics, LLC d/b/a United Allergy Services, a provider of on-site services to physicians in the delivery of testing and treatment of allergies, filed a complaint against Phadia U.S. Inc. (a subsidiary of the company) and Thermo Fisher Scientific Inc., respectively, in the United States District Court for the Western District of Texas. The plaintiffs alleged various claims of anticompetitive activities in violation of antitrust laws, tortious interference with contracts and existing and prospective business relations, and civil conspiracy. The litigation was settled in December 2017 for a payment of an immaterial amount by the company. |
Comprehensive Income and Shareh
Comprehensive Income and Shareholders Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income and Shareholders' Equity [Text Block] | Note 11 . Comprehensive Income and Shareholders' Equity Comprehensive Income (Loss) Comprehensive income (loss) combines net income and other comprehensive items. Other comprehensive items represent certain amounts that are reported as components of shareholders’ equity in the accompanying balance sheet. In the fourth quarter of 2017, the company recorded an out of period adjustment to correct an error in the accounting for income taxes associated with the partial hedge of its net investment in a foreign operation in 2014 through the third quarter of 2017. The adjustment affected deferred income taxes and other comprehensive income and, in the aggregate, increased comprehensive income by $101 million for the year ended December 31, 2017. The adjustment does not have any impact on the company’s statements of income or cash flows. The company determined that the adjustment was not material to the consolidated financial statements for any previously reported annual or interim periods. Changes in each component of accumulated other comprehensive items, net of tax are as follows: (In millions) Currency Translation Adjustment Unrealized Gains (Losses) on Available-for- Sale Investments Unrealized Losses on Hedging Instruments Pension and Other Postretirement Benefit Liability Adjustment Total Balance at December 31, 2016 (2,343 ) 1 (57 ) (237 ) (2,636 ) Other comprehensive income (loss) before reclassifications 588 (1 ) — 23 610 Amounts reclassified from accumulated other comprehensive items — (1 ) 7 17 23 Net other comprehensive items 588 (2 ) 7 40 633 Balance at December 31, 2017 (1,755 ) (1 ) (50 ) (197 ) (2,003 ) Shareholders’ Equity At December 31, 2017 , the company had reserved 30 million unissued shares of its common stock for possible issuance under stock-based compensation plans. |
Fair Value Measurements and Fai
Fair Value Measurements and Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Fair Value of Financial Instruments [Text Block] | Note 12 . Fair Value Measurements and Fair Value of Financial Instruments Fair Value Measurements The company uses the market approach technique to value its financial instruments and there were no changes in valuation techniques during 2017 . The company’s financial assets and liabilities carried at fair value are primarily comprised of insurance contracts, investments in money market funds, derivative contracts, mutual funds holding publicly traded securities and other investments in unit trusts held as assets to satisfy outstanding deferred compensation and retirement liabilities; and acquisition-related contingent consideration. The fair value accounting guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities that the company has the ability to access. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data such as quoted prices, interest rates and yield curves. Level 3: Inputs are unobservable data points that are not corroborated by market data. The following tables present information about the company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and December 31, 2016 : December 31, Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (In millions) 2017 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 22 $ 22 $ — $ — Bank time deposits 2 2 — — Investments in mutual funds and other similar instruments 13 13 — — Warrants 2 — 2 — Insurance contracts 116 — 116 — Derivative contracts 10 — 10 — Total Assets $ 165 $ 37 $ 128 $ — Liabilities Derivative contracts $ 139 $ — $ 139 $ — Contingent consideration 35 — — 35 Total Liabilities $ 174 $ — $ 139 $ 35 December 31, Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (In millions) 2016 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 65 $ 65 $ — $ — Bank time deposits 2 2 — — Investments in mutual funds and other similar instruments 15 15 — — Warrants 2 — 2 — Insurance contracts 102 — 102 — Derivative contracts 16 — 16 — Total Assets $ 202 $ 82 $ 120 $ — Liabilities Derivative contracts $ 122 $ — $ 122 $ — Contingent consideration 3 — — 3 Total Liabilities $ 125 $ — $ 122 $ 3 The company determines the fair value of its insurance contracts by obtaining the cash surrender value of the contracts from the issuer. The fair value of derivative contracts is the estimated amount that the company would receive/pay upon liquidation of the contracts, taking into account the change in interest rates and currency exchange rates. The company determines the fair value of acquisition-related contingent consideration based on the probability-weighted discounted cash flows associated with such future payments. Changes to the fair value of contingent consideration are recorded in selling, general and administrative expense. The notional amounts of derivative contracts outstanding, consisting of interest rate swaps and currency exchange contracts, totaled $6.02 billion and $6.70 billion at December 31, 2017 and December 31, 2016 , respectively. While certain derivatives are subject to netting arrangements with counterparties, the company does not offset derivative assets and liabilities within the consolidated balance sheet. The following tables present the fair value of derivative instruments in the consolidated balance sheet and statement of income. Fair Value – Assets Fair Value – Liabilities December 31, December 31, December 31, December 31, (In millions) 2017 2016 2017 2016 Derivatives Designated as Hedging Instruments Interest rate swaps (a) $ — $ — $ 124 $ 110 Derivatives Not Designated as Hedging Instruments Currency exchange contracts (b) 10 16 15 12 (a) The fair value of the interest rate swaps is included in the consolidated balance sheet under the caption other long-term liabilities. (b) The fair value of the currency exchange contracts is included in the consolidated balance sheet under the captions other current assets or other accrued expenses. Gain (Loss) Recognized (In millions) 2017 2016 Derivatives Designated as Fair Value Hedges Interest rate swaps - effective portion $ — $ 21 Interest rate swaps - ineffective portion (5 ) (1 ) Derivatives Not Designated as Hedging Instruments Currency exchange contracts Included in cost of revenues $ (1 ) $ (15 ) Included in other expense, net 92 (99 ) Gains and losses recognized on currency exchange contracts and the effective portion of interest rate swaps are included in the consolidated statement of income together with the corresponding, offsetting losses and gains on the underlying hedged transactions. Gains and losses recognized on the ineffective portion of interest rate swaps are included in other expense, net in the accompanying statement of income. The company also uses foreign currency-denominated debt to partially hedge its net investments in foreign operations against adverse movements in exchange rates. The company’s euro-denominated senior notes have been designated as, and are effective as, economic hedges of part of the net investment in a foreign operation. Accordingly, foreign currency transaction gains or losses due to spot rate fluctuations on the euro-denominated debt instruments are included in currency translation adjustment within other comprehensive income and shareholders’ equity. In 2017 and 2016 , pre-tax net (losses) gains of $(664) million and $172 million , respectively, from the euro-denominated notes were included in currency translation adjustment. Cash Flow Hedge Arrangements In 2015, the company entered into interest rate swap arrangements to mitigate the risk of interest rates rising prior to completion of a debt offering in 2016. Based on the company’s conclusion that a debt offering was probable as a result of debt maturing in 2016 and that such debt would carry semi-annual interest payments over a 10 -year term, the swaps hedged the cash flow risk for each of the semi-annual fixed-rate interest payments on $1.00 billion of principal amount of the planned fixed-rate debt issue. The hedge was terminated in advance of completing a debt offering in April 2016 (Note 9 ). The fair value of the hedge at that time, $46 million , net of tax, was classified as a reduction to accumulated other comprehensive items and is being amortized to interest expense over the term of the debt. Fair Value of Other Financial Instruments The carrying value and fair value of the company’s notes receivable and debt obligations are as follows: December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair (In millions) Value Value Value Value Notes Receivable $ 89 $ 93 $ 56 $ 59 Debt Obligations: Senior notes $ 20,024 $ 20,639 $ 14,838 $ 15,184 Term loan — — 823 825 Commercial paper 960 960 953 953 Other 24 24 13 13 $ 21,008 $ 21,623 $ 16,627 $ 16,975 The fair value of debt obligations was determined based on quoted market prices and on borrowing rates available to the company at the respective period ends which represent level 2 measurements. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information [Text Block] | Note 13 . Supplemental Cash Flow Information (In millions) 2017 2016 2015 Cash Paid For: Interest $ 533 $ 458 $ 438 Income Taxes $ 479 $ 663 $ 477 Non-cash Activities Declared but unpaid dividends $ 61 $ 60 $ 61 Issuance of stock upon vesting of restricted stock units $ 125 $ 127 $ 131 Fair value of investments contributed to defined benefit plans $ — $ 16 $ — Cash, cash equivalents and restricted cash is included in the consolidated balance sheet as follows: December 31, December 31, (In millions) 2017 2016 Cash and Cash Equivalents $ 1,335 $ 786 Restricted Cash Included in Other Current Assets 24 18 Restricted Cash Included in Other Assets 2 7 Cash, Cash Equivalents and Restricted Cash $ 1,361 $ 811 Amounts included in restricted cash represent funds held as collateral for bank guarantees and incoming cash in China awaiting government administrative clearance. |
Restructuring and Other Costs,
Restructuring and Other Costs, Net | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs, Net [Text Block] | Note 14 . Restructuring and Other Costs, Net Restructuring and other costs in 2017 included continuing charges for headcount reductions and facility consolidations in an effort to streamline operations, including the closure and consolidation of operations within several facilities in the U.S., Europe and Asia; costs to achieve synergies related to acquisitions, including severance and abandoned facility costs; third-party acquisition transaction and integration costs primarily associated with the acquisitions of FEI and Patheon; sales of inventories revalued at the date of acquisition; charges to conform the accounting policies of Patheon to the company's accounting policies; charges for changes in estimates of acquisition contingent consideration; hurricane response/impairment costs; net charges for the settlement/curtailment of retirement plans; and net credits for litigation matters. In 2017, severance actions associated with facility consolidations and cost reduction measures affected less than 2% of the company’s workforce. Restructuring and other costs in 2016 included continuing charges for headcount reductions and facility consolidations in an effort to streamline operations, including the closure and consolidation of operations within several facilities in the U.S., Europe and Asia; third-party acquisition transaction and integration costs primarily associated with the acquisitions of FEI and Affymetrix; sales of inventories revalued at the date of acquisition; costs to conform the accounting policies of FEI and Affymetrix to the company's accounting policies; costs to achieve synergies related to acquisitions, including severance and abandoned facility costs; and net charges for environmental and litigation-related matters. These charges were partially offset by gains on sales of assets. In 2016, severance actions associated with facility consolidations and cost reduction measures affected less than 3% of the company’s workforce. Restructuring and other costs in 2015 primarily included continuing charges for headcount reductions and facility consolidations in an effort to streamline operations, including the closure and consolidation of operations within several facilities in the U.S., Europe and Asia; charges associated with product liability litigation and litigation at acquired businesses; impairment of acquired technology in development; and third-party acquisition transaction and integration costs related to recent acquisitions. These charges were partially offset by gains on the sale of a small product line and real estate, and, to a lesser extent, changes in estimates of contingent consideration. In 2015, severance actions associated with facility consolidations and cost reduction measures affected approximately 2% of the company’s workforce. As of February 28, 2018 , the company has identified restructuring actions that will result in additional charges of approximately $105 million , primarily in 2018 which will be recorded when specified criteria are met, such as communication of benefit arrangements and abandonment of leased facilities. 2017 During 2017 , the company recorded net restructuring and other costs by segment as follows: (In millions) Cost of Selling, Restructuring Total Life Sciences Solutions $ 1 $ 29 $ (16 ) $ 14 Analytical Instruments 31 (2 ) 30 59 Specialty Diagnostics 1 (2 ) 39 38 Laboratory Products and Services 90 61 41 192 Corporate — (8 ) 3 (5 ) $ 123 $ 78 $ 97 $ 298 The principal components of net restructuring and other costs by segment are as follows: Life Sciences Solutions In 2017 , the Life Sciences Solutions segment recorded $14 million of net restructuring and other charges. The segment recorded $29 million of charges to selling, general and administrative expenses, principally for changes in estimates of acquisition contingent consideration. The segment also recorded $16 million of restructuring and other income, net, including $64 million of net credits principally for pre-acquisition litigation-related matters, and, to a lesser extent, net gains on the settlement of retirement plans. These credits were largely offset by $48 million of cash restructuring costs, including $23 million of severance and related costs primarily to achieve acquisition synergies, and $25 million of abandoned facilities costs primarily for the consolidation of facilities in the U.S. Analytical Instruments In 2017 , the Analytical Instruments segment recorded $59 million of net restructuring and other charges. The segment recorded charges to cost of revenues of $31 million for the sales of inventory revalued at the date of acquisition, as well as $30 million of restructuring and other costs, primarily for severance and other costs to achieve acquisition synergies, as well as charges for the settlement of retirement plans. Specialty Diagnostics In 2017 , the Specialty Diagnostics segment recorded $38 million of net restructuring and other charges, principally charges for litigation-related matters, and, to a lesser extent, cash costs for employee severance and other costs associated with headcount reductions in the U.S. and Europe. Laboratory Products and Services In 2017 , the Laboratory Products and Services segment recorded $192 million of net restructuring and other charges. The segment recorded charges to cost of revenues of $90 million , including $33 million to conform the accounting policies of Patheon to the company's accounting policies and $55 million for sales of inventory revalued at the date of acquisition. The segment also recorded $61 million of charges to selling, general, and administrative expenses, including $55 million for third-party acquisition transaction costs, as well as $6 million to conform the accounting policies of Patheon to the company's accounting policies. The segment also recorded $41 million of restructuring and other costs, primarily for employee severance and compensation due at Patheon on the date of acquisition, and, to a lesser extent, hurricane response/impairment charges. Corporate In 2017 , the company recorded $5 million of net restructuring and other income, principally $8 million of income from favorable results of product liability litigation, partially offset by charges for the settlement of a retirement plan and severance at its corporate operations. 2016 During 2016, the company recorded net restructuring and other costs by segment as follows: (In millions) Cost of Selling, Restructuring Total Life Sciences Solutions $ 31 $ 36 $ 88 $ 155 Analytical Instruments 63 46 68 177 Specialty Diagnostics — — 15 15 Laboratory Products and Services 8 1 17 26 Corporate — 21 1 22 $ 102 $ 104 $ 189 $ 395 Life Sciences Solutions In 2016, the Life Sciences Solutions segment recorded $155 million of net restructuring and other charges. The segment recorded charges to cost of revenues of $31 million , including $27 million for sales of inventories revalued at the date of acquisition and $4 million to conform the accounting policies of Affymetrix to the company's accounting policies. The segment recorded $36 million of charges to selling, general and administrative expenses, including $34 million of third-party transaction and integration costs primarily related to the acquisition of Affymetrix, $4 million for accelerated depreciation at facilities closing due to real estate consolidation, offset in part by credits of $2 million from changes in estimates of contingent acquisition consideration. In addition, the segment recorded $78 million of cash restructuring costs, including $60 million of severance and related costs primarily to achieve acquisition synergies, and $18 million of abandoned facilities costs principally for the consolidation of facilities in the U.S. The segment also recorded $10 million of other costs, net, primarily for charges associated with litigation-related matters at acquired businesses. Analytical Instruments In 2016, the Analytical Instruments segment recorded $177 million of net restructuring and other charges. The segment recorded charges to cost of revenues of $63 million , including $21 million to conform the accounting policies of FEI to the company's accounting policies and $42 million for the sales of inventory revalued at the date of acquisition. The segment recorded $46 million of charges to selling, general, and administrative expense, including $38 million of third-party transaction costs related to the acquisition of FEI, as well as $9 million of charges to conform the accounting policies of FEI to the company's accounting policies. The segment also recorded $68 million of cash restructuring costs primarily for severance obligations payable to former FEI executives and charges associated with abandoned facilities, including remediation and other closure costs of a manufacturing facility in the U.S. Specialty Diagnostics In 2016, the Specialty Diagnostics segment recorded $15 million of net restructuring and other charges. These costs were principally comprised of $10 million for charges associated with litigation-related matters and $6 million of cash restructuring costs for severance and other costs associated with headcount reductions and facility consolidations. The segment also recorded $1 million of other income, net, primarily gains on the sale of real estate, offset in part by charges for the settlement of retirement plans. Laboratory Products and Services In 2016, the Laboratory Products and Services segment recorded $26 million of net restructuring and other charges. The segment recorded charges to cost of revenues of $8 million , including $6 million for sales of inventories revalued at the date of acquisition, and $2 million for accelerated depreciation at facilities closing due to real estate consolidation. The segment recorded $11 million of cash restructuring costs, primarily for employee severance and other costs associated with headcount reductions and facility consolidations. In addition, the segment recorded $8 million of charges for an increase in environmental remediation cost estimates associated with a Superfund site in the U.S., offset in part by $1 million of gains on the settlement of litigation. Corporate In 2016, the company recorded $22 million of restructuring and other costs, principally within selling, general, and administrative expenses, including $17 million of charges for product liability litigation and $4 million of accelerated depreciation on information systems to be abandoned due to integration synergies. The segment also recorded $1 million of restructuring charges for severance and other costs associated with facility consolidation at its corporate operations. 2015 During 2015, the company recorded net restructuring and other costs by segment as follows: (In millions) Cost of Revenues Selling, General and Administrative Expenses Restructuring and Other Costs, Net Total Life Sciences Solutions $ 2 $ 13 $ 65 $ 80 Analytical Instruments — — 27 27 Specialty Diagnostics 1 — 9 10 Laboratory Products and Services 6 6 13 25 Corporate — 27 2 29 $ 9 $ 46 $ 116 $ 171 The components of net restructuring and other costs by segment are as follows: Life Sciences Solutions In 2015, the Life Sciences Solutions segment recorded $80 million of net restructuring and other charges. The segment recorded charges to cost of revenues of $2 million for accelerated depreciation at facilities closing due to real estate consolidation and sales of inventories revalued at the date of acquisition. The segment also recorded $13 million of charges to selling, general and administrative expenses, including $6 million of third-party transaction and integration costs related to the acquisitions of Life Technologies and Advanced Scientifics, as well as $9 million for accelerated depreciation at facilities closing due to real estate consolidation. These charges were partially offset by $2 million of income for changes in estimates of contingent consideration. In addition, the segment recorded $65 million of restructuring and other costs, net, $40 million of which were cash costs. These costs included $5 million of cash compensation contractually due to employees of an acquired business on the date of acquisition; $1 million of charges associated with a previous sale of a business; and $35 million of costs primarily associated with headcount reductions and facility consolidations in the U.S. and Europe, including $24 million for severance, $4 million of abandoned facility costs, and $7 million of other cash costs, including retention and outplacement costs. The segment also recorded $20 million of charges for pre-acquisition litigation related matters and $15 million of impairment of acquired technology in development. These costs were partially offset by a $8 million gain on the sale of a small product line and a $3 million gain on the sale of real estate. Analytical Instruments In 2015, the Analytical Instruments segment recorded $27 million of net restructuring and other charges, $22 million of which were cash costs primarily associated with abandoned facilities, including remediation and other closure costs, and, to a lesser extent, headcount reductions. The segment also recorded $5 million of non-cash expense primarily for real estate writedowns of abandoned facilities held for sale. Specialty Diagnostics In 2015, the Specialty Diagnostics segment recorded $10 million of net restructuring and other charges. The segment recorded charges to cost of revenues of $1 million for accelerated depreciation at facilities closing due to real estate consolidation and $9 million of restructuring and other costs, net, primarily cash costs for employee severance and other costs associated with headcount reductions, as well as consolidation of facilities in the U.S. and Europe. Laboratory Products and Services In 2015, the Laboratory Products and Services segment recorded $25 million of net restructuring and other charges. The segment recorded charges to cost of revenues of $6 million for sales of inventories revalued at the date of acquisition, as well as $6 million of charges to selling, general and administrative expenses, primarily associated with third party transaction costs related to the acquisition of Alfa Aesar. In addition, the segment recorded $8 million of cash restructuring costs primarily for employee severance and other costs associated with headcount reductions. The segment also recorded $5 million of charges primarily associated with a litigation-related matter of a divested business. Corporate In 2015, the company recorded $29 million of restructuring and other costs, principally within selling, general and administrative expenses, including $19 million of charges for product liability litigation and $8 million of accelerated depreciation on information systems to be abandoned due to integration synergies. The segment also recorded $2 million of cash restructuring costs primarily for severance at its corporate operations. The following table summarizes the cash components of the company’s restructuring plans. The non-cash components and other amounts reported as restructuring and other costs, net, in the accompanying statement of income have been summarized in the notes to the tables. Accrued restructuring costs are included in other accrued expenses in the accompanying balance sheet. (In millions) Severance Abandonment of Excess Facilities Other (a) Total Balance at December 31, 2014 $ 38 $ 10 $ 6 $ 54 Costs incurred in 2015 (c) 57 19 14 90 Reserves reversed (b) (12 ) (1 ) (2 ) (15 ) Payments (67 ) (15 ) (15 ) (97 ) Currency translation (1 ) — — (1 ) Balance at December 31, 2015 15 13 3 31 Costs incurred in 2016 (d) 109 46 12 167 Reserves reversed (b) (2 ) — (1 ) (3 ) Payments (83 ) (27 ) (12 ) (122 ) Currency translation (1 ) — — (1 ) Balance at December 31, 2016 38 32 2 72 Costs incurred in 2017 (e) 62 27 17 106 Reserves reversed (b) (9 ) — — (9 ) Payments (62 ) (19 ) (12 ) (93 ) Currency translation 1 — (1 ) — Balance at December 31, 2017 $ 30 $ 40 $ 6 $ 76 (a) Other includes cash charges to monetize certain equity awards held by employees of Life Technologies at the date of acquisition, relocation and moving expenses associated with facility consolidations, as well as employee retention costs which are accrued ratably over the period through which employees must work to qualify for a payment. (b) Represents reductions in cost of plans. (c) Excludes $25 million of provision for losses on litigation-related matters; $15 million of impairment of acquired technology in development; a $8 million gain on the sale of a product line; $5 million of cash compensation contractually due to employees of an acquired business on the date of acquisition; $1 million of charges associated with a previous sale of a business; and an aggregate of $1 million of non-cash charges, net. (d) Excludes $24 million of provision for losses on litigation-related matters; $8 million of provision for environmental remediation; $5 million of net gains on the sale of real estate; and an aggregate of $3 million of non-cash income, net. (e) Excludes $27 million of net credits associated with litigation-related matters, and $27 million of other restructuring charges, net, primarily for hurricane response/impairment, charges associated with the settlement/curtailment of retirement plans, and non-cash compensation due at an acquired business. The company expects to pay accrued restructuring costs as follows: severance, employee-retention obligations and other costs, primarily through 2018 ; and abandoned-facility payments, over lease terms expiring through 2027 . |
Unaudited Quarterly Information
Unaudited Quarterly Information | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Information [Text Block] | Note 15 . Unaudited Quarterly Information 2017 (In millions except per share amounts) First (a) Second (b) Third (c) Fourth (d) Revenues $ 4,765 $ 4,990 $ 5,116 $ 6,047 Gross Profit 2,192 2,283 2,300 2,670 Net Income 551 612 534 528 Earnings per Share: Basic 1.41 1.57 1.35 1.32 Diluted 1.40 1.56 1.34 1.30 Cash Dividend Declared per Common Share 0.15 0.15 0.15 0.15 Amounts reflect aggregate restructuring and other items, net, as follows: (a) Costs of $86 million . (b) Costs of $30 million . (c) Costs of $131 million . (d) Costs of $51 million . 2016 (In millions except per share amounts) First (a) Second (b) Third (c) Fourth (d) Revenues $ 4,295 $ 4,535 $ 4,491 $ 4,953 Gross Profit 1,958 2,078 2,054 2,279 Net Income 402 517 473 630 Earnings per Share: Basic 1.02 1.31 1.20 1.60 Diluted 1.01 1.30 1.19 1.59 Cash Dividend Declared per Common Share 0.15 0.15 0.15 0.15 Amounts reflect aggregate restructuring and other items, net, as follows: (a) Costs of $90 million . (b) Costs of $57 million . (c) Costs of $150 million . (d) Costs of $98 million . |
Nature of Operations and Summ25
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation [Policy Text Block] | Principles of Consolidation The accompanying financial statements include the accounts of the company and its wholly and majority-owned subsidiaries. All material intercompany accounts and transactions have been eliminated. The company accounts for investments in businesses using the equity method when it has significant influence but not control (generally between 20% and 50% ownership) and is not the primary beneficiary. |
Revenue Recognition [Policy Text Block] | Revenue is recognized after all significant obligations have been met, collectability is probable and title has passed, which typically occurs upon shipment or delivery or completion of services. If customer-specific acceptance criteria exist, the company recognizes revenue after demonstrating adherence to the acceptance criteria. The company recognizes revenue and related costs for arrangements with multiple deliverables, such as equipment and installation, as each element is delivered or completed based upon its relative fair value. When a portion of the customer’s payment is not due until installation or other deliverable occurs, the company defers that portion of the revenue until completion of installation or transfer of the deliverable. Provisions for discounts, warranties, rebates to customers, returns and other adjustments are provided for in the period the related sales are recorded. Sales taxes, value-added taxes and certain excise taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenue. Service revenues represent the company’s service offerings including clinical trial logistics, drug development and manufacturing, asset management, diagnostic testing, training, service contracts, and field service including related time and materials. Service revenues are recognized as the service is performed. Revenues for service contracts are recognized ratably over the contract period. The company records shipping and handling charges billed to customers in net sales and records shipping and handling costs in cost of product revenues for all periods presented. |
Revenue Recognition, Service Revenue [Policy Text Block] | Service revenues represent the company’s service offerings including clinical trial logistics, drug development and manufacturing, asset management, diagnostic testing, training, service contracts, and field service including related time and materials. Service revenues are recognized as the service is performed. Revenues for service contracts are recognized ratably over the contract period. |
Shipping and Handling Charges [Policy Text Block] | The company records shipping and handling charges billed to customers in net sales and records shipping and handling costs in cost of product revenues for all periods presented. |
Accounts Receivable [Policy Text Block] | Accounts receivable are recorded at the invoiced amount and do not bear interest. The company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to pay amounts due. The allowance for doubtful accounts is the company’s best estimate of the amount of probable credit losses in existing accounts receivable. The company determines the allowance based on the age of the receivable, the creditworthiness of the customer and any other information that is relevant to the judgment. Account balances are charged off against the allowance when the company believes it is probable the receivable will not be recovered. The company does not have any off-balance-sheet credit exposure related to customers. |
Revenue Recognition, Deferred Revenue [Policy Text Block] | Deferred revenue in the accompanying balance sheet consists primarily of unearned revenue on service contracts, which is recognized ratably over the terms of the contracts. The majority of the deferred revenue in the accompanying 2017 balance sheet will be recognized within one year. |
Warranty Obligations [Policy Text Block] | Warranty Obligations The company provides for the estimated cost of standard product warranties, primarily from historical information, in cost of product revenues at the time product revenue is recognized. While the company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component supplies, the company’s warranty obligation is affected by product failure rates, utilization levels, material usage, service delivery costs incurred in correcting a product failure and supplier warranties on parts delivered to the company. Should actual product failure rates, utilization levels, material usage, service delivery costs or supplier warranties on parts differ from the company’s estimates, revisions to the estimated warranty liability would be required. The liability for warranties is included in other accrued expenses in the accompanying balance sheet. Extended warranty agreements are considered service contracts, which are discussed above. Costs of service contracts are recognized as incurred. |
Research and Development [Policy Text Block] | Research and Development The company conducts research and development activities to increase its depth of capabilities in technologies, software and services. Research and development costs include employee compensation and benefits, consultants, facilities related costs, material costs, depreciation and travel. Research and development costs are expensed as incurred. |
Restructuring [Policy Text Block] | Restructuring Costs Accounting for the timing and amount of termination benefits provided by the company to employees is determined based on whether: (a) the company has a substantive plan to provide such benefits, (b) the company has a written employment contract with the affected employees that includes a provision for such benefits, (c) the termination benefits are due to the occurrence of an event specified in an existing plan or agreement, or (d) the termination benefits are a one-time benefit. In certain circumstances, employee termination benefits may meet more than one of the characteristics listed above and therefore, may have individual elements that are subject to different accounting models. From time to time when executing a restructuring or exit plan, the company also incurs costs other than termination benefits, such as lease termination costs, that are not associated with or will not be incurred to generate revenues. These include costs that represent amounts under contractual obligations that exist prior to the restructuring plan communication date and will either continue after the restructuring plan is completed with no economic benefit or result in a penalty to cancel a contractual obligation. Such costs are recognized when incurred, which generally occurs at the contract termination or cease-use date but may continue over the remainder of the original contractual period. |
Income Taxes [Policy Text Block] | Income Taxes The company recognizes deferred income taxes based on the expected future tax consequences of differences between the financial statement basis and the tax basis of assets and liabilities, calculated using enacted tax rates in effect for the year in which the differences are expected to be reflected in the tax return. The financial statements reflect expected future tax consequences of uncertain tax positions that the company has taken or expects to take on a tax return presuming the taxing authorities’ full knowledge of the positions and all relevant facts, but without discounting for the time value of money (Note 7 ). |
Earnings Per Share [Policy Text Block] | Earnings per Share Basic earnings per share has been computed by dividing net income by the weighted average number of shares outstanding during the year. Except where the result would be antidilutive to income from continuing operations, diluted earnings per share has been computed using the treasury stock method for outstanding stock options and restricted units, as well as their related income tax effects (Note 8 ). |
Cash and Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents Cash equivalents consists principally of money market funds, commercial paper and other marketable securities purchased with an original maturity of three months or less. These investments are carried at cost, which approximates market value. |
Inventories [Policy Text Block] | Inventories Inventories are valued at the lower of cost or net realizable value, cost being determined principally by the first-in, first-out (FIFO) method with certain of the company’s businesses utilizing the last-in, first-out (LIFO) method. The company periodically reviews quantities of inventories on hand and compares these amounts to the expected use of each product or product line. In addition, the company has certain inventory that is subject to fluctuating market pricing. The company assesses the carrying value of this inventory based on a lower of cost or net realizable value analysis. The company records a charge to cost of sales for the amount required to reduce the carrying value of inventory to net realizable value. Costs associated with the procurement of inventories, such as inbound freight charges, purchasing and receiving costs, and internal transfer costs, are included in cost of revenues in the accompanying statement of income. |
Property, Plant and Equipment [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment are recorded at cost. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. The company provides for depreciation and amortization using the straight-line method over the estimated useful lives of the property as follows: buildings and improvements, 25 to 40 years ; machinery and equipment (including software), 3 to 10 years ; and leasehold improvements, the shorter of the term of the lease or the life of the asset. When assets are retired or otherwise disposed of, the assets and related accumulated depreciation are eliminated from the accounts and the resulting gain or loss is reflected in the accompanying statement of income. |
Acquisition-related Intangible Assets [Policy Text Block] | Acquisition-related Intangible Assets Acquisition-related intangible assets include the costs of acquired customer relationships, product technology, tradenames and other specifically identifiable intangible assets, and are being amortized using the straight-line method over their estimated useful lives, which range from 3 to 20 years . In addition, the company has tradenames and in-process research and development that have indefinite lives and which are not amortized. The company reviews intangible assets for impairment when indication of potential impairment exists, such as a significant reduction in cash flows associated with the assets. Intangible assets with indefinite lives are reviewed for impairment annually or whenever events or changes in circumstances indicate they may be impaired. |
Investments [Policy Text Block] | Investments for which there are not readily determinable market values are accounted for under the cost method of accounting. The company periodically evaluates the carrying value of its investments accounted for under the cost method of accounting, which provides that they are recorded at the lower of cost or estimated net realizable value. |
Goodwill [Policy Text Block] | Goodwill The company assesses goodwill for impairment annually and whenever events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. Such events or circumstances generally include the occurrence of operating losses or a significant decline in earnings associated with one or more of the company’s reporting units. The company is permitted to first assess qualitative factors to determine whether the goodwill impairment test is necessary. If the qualitative assessment results in a determination that the fair value of a reporting unit is more-likely-than-not less than its carrying amount, the company performs the goodwill impairment test. The company may bypass the qualitative assessment for the reporting unit in any period and proceed directly to the goodwill impairment test. The company estimates the fair value of its reporting units by using forecasts of discounted future cash flows and peer market multiples. The company would record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. Prior to the annual impairment test in the fourth quarter of 2017 and adoption of new guidance discussed elsewhere in Note 1 , if an impairment had been indicated, any excess of the carrying value over the implied fair value of goodwill would have been recorded as an operating loss. The company determined that no impairments existed in 2017 , 2016 or 2015 . |
Loss Contingencies [Policy Text Block] | Loss Contingencies Accruals are recorded for various contingencies, including legal proceedings, environmental, workers’ compensation, product, general and auto liabilities, self-insurance and other claims that arise in the normal course of business. The accruals are based on management’s judgment, historical claims experience, the probability of losses and, where applicable, the consideration of opinions of internal and/or external legal counsel and actuarial estimates. Additionally, the company records receivables from third-party insurers up to the amount of the loss when recovery has been determined to be probable. Liabilities acquired in acquisitions have been recorded at fair value and, as such, were discounted to present value at the dates of acquisition. |
Currency Translation [Policy Text Block] | Currency Translation All assets and liabilities of the company’s non-U.S. subsidiaries are translated at year-end exchange rates. Resulting translation adjustments are reflected in the "accumulated other comprehensive items" component of shareholders’ equity. Revenues and expenses are translated at average exchange rates for the year. |
Derivatives Contracts [Policy Text Block] | Derivative Contracts The company is exposed to certain risks relating to its ongoing business operations including changes to interest rates and currency exchange rates. The company uses derivative instruments primarily to manage currency exchange and interest rate risks. The company recognizes derivative instruments as either assets or liabilities and measures those instruments at fair value. If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative are either offset against the change in fair value of the hedged item through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. Derivatives that are not designated as hedges are recorded at fair value through earnings. The company uses short-term forward and option currency exchange contracts primarily to hedge certain balance sheet and operational exposures resulting from changes in currency exchange rates, predominantly intercompany loans and cash balances that are denominated in currencies other than the functional currencies of the respective operations. The currency-exchange contracts principally hedge transactions denominated in euro, British pounds sterling, Swedish kronor, Norwegian kroner, Swiss franc and Canadian dollars. The company does not hold or engage in transactions involving derivative instruments for purposes other than risk management. Cash flow hedges . For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Fair value hedges. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in earnings. During 2016, in connection with new debt issuances, the company entered into interest rate swap arrangements. The company includes the gain or loss on the hedged items (fixed-rate debt) in the same line item (interest expense) as the offsetting effective portion of the loss or gain on the related interest rate swaps. Net investment hedges. The company also uses foreign currency-denominated debt to partially hedge its net investments in foreign operations against adverse movements in exchange rates. The company’s euro-denominated senior notes have been designated as, and are effective as, economic hedges of part of the net investment in a foreign operation. Accordingly, foreign currency transaction gains or losses due to spot rate fluctuations on the euro-denominated debt instruments are included in currency translation adjustment within other comprehensive income and shareholders’ equity. |
Use of Estimates [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In addition, significant estimates were made in estimating future cash flows to assess potential impairment of assets and in determining the fair value of acquired intangible assets (Note 2 ) and the ultimate loss from abandoning leases at facilities being exited (Note 14 ). Actual results could differ from those estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In February 2018, the FASB issued new guidance to allow reclassifications from accumulated other comprehensive income (AOCI) to retained earnings for certain tax effects on items within AOCI resulting from the Tax Cuts and Jobs Act of 2017 (the Tax Act). The guidance will be effective in 2019 and early adoption is permitted. The company may choose to record the reclassifications in the period of adoption or retrospectively. The company is currently evaluating the timing and method of adoption. In December 2017, the SEC staff issued guidance to address the application of accounting guidance in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act enacted on December 22, 2017. As discussed further in Note 7 , the company is reporting provisional amounts for certain income tax effects of the Tax Act for which a reasonable estimate can be determined but for which the accounting impact may change based on further analysis regarding the amount and composition of the company's historical foreign earnings and future issuance of interpretive regulations. Adjustments to provisional amounts identified during the measurement period, which may be up to December 22, 2018, will be included as adjustments to Benefit from (Provision for) Income Taxes in the period the amounts are determined. In August 2017, the FASB issued new guidance to simplify the application of hedge accounting guidance. Among other things, the new guidance will permit more hedging strategies to qualify for hedge accounting, allow for additional time to perform an initial assessment of a hedge’s effectiveness, and permit a qualitative effectiveness test for certain hedges after initial qualification. The company adopted this guidance in January 2018. The adoption of this guidance is not expected to have a material impact on the company’s consolidated financial statements. In March 2017, the FASB issued new guidance intended to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires the service cost component of net periodic cost be reported in the same line item(s) as other employee compensation costs and all other components of the net periodic cost be reported in the income statement below operating income. The guidance is effective for the company in 2018. The adoption of this guidance is not expected to have a material impact on the company’s consolidated financial statements. In January 2017, the FASB issued new guidance that eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, the new guidance requires entities to record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The company adopted this guidance when it performed its annual goodwill impairment test in the fourth quarter of 2017. The adoption of this guidance did not have a material impact on the company’s consolidated financial statements. In January 2017, the FASB issued new guidance clarifying the definition of a business and providing criteria to determine when an integrated set of assets and activities is not defined as a business. The new guidance requires such integrated sets to be defined as an asset (and not a business) if substantially all of the fair value of the gross assets acquired or disposed is concentrated in a single identifiable asset or a group of similar identifiable assets. The guidance is effective for the company in 2018. The adoption of this guidance is not expected to have a material impact on the company’s consolidated financial statements. In October 2016, the FASB issued new guidance eliminating the deferral of the tax effects of intra-entity asset transfers. The guidance is effective for the company in 2018. The impact of this guidance will be dependent on the extent of future asset transfers which usually occur in connection with planning around acquisitions and other business structuring activities. The adoption of this guidance is not expected to have a material impact on the company’s consolidated financial statements. In March 2016, the FASB issued new guidance which affects the accounting for stock-based co mpensatio n. The new guidance simplifies the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The company adopted this guidance on January 1, 2017 and applied the changes to the statement of cash flows retrospectively. Adoption of this guidance decreased the company's tax provision in 2017 by $65 million and increased diluted earnings per share for the same period by $0.16 . The impact in future periods will be dependent upon changes in the company's stock price, the volume of employee stock option exercises and the timing of service- and performance-based restricted unit vesting. In February 2016, the FASB issued new guidance which requires lessees to record most leases on their balance sheets as lease liabilities, initially measured at the present value of the future lease payments, with corresponding right-of-use assets. The new guidance also sets forth new disclosure requirements related to leases. The company plans to adopt the guidance in 2019 using a modified retrospective method. The company is currently evaluating the impact this guidance will have on its consolidated financial statements, however, assets and liabilities will increase upon adoption for right-of-use assets and lease liabilities. The company’s future commitments under lease obligations are summarized in Note 10 . In January 2016, the FASB issued new guidance which affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. This guidance retains the current accounting for classifying and measuring investments in debt securities and loans, but requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. The guidance also changes the accounting for investments without a readily determinable fair value and that do not qualify for the practical expedient permitted by the guidance to estimate fair value. A policy election can be made for these investments whereby estimated fair value may be measured at cost and adjusted in subsequent periods for any impairment or changes in observable prices of identical or similar investments. The guidance is effective for the company in 2018. The adoption of this guidance is not expected to have a material impact on the company’s consolidated financial statements. In July 2015, the FASB issued new guidance which requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance does not apply to inventory that is measured using last-in, first-out (LIFO). The guidance was effective for the company in 2017. Adoption of this guidance did not have a material impact on the company’s consolidated financial statements. In May 2014, the FASB issued new revenue recognition guidance which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity's nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. During 2016 and 2017, the FASB issued additional guidance and clarification, including the elimination of certain SEC Staff Guidance. The guidance is effective for the company in 2018. The company has elected to adopt this guidance through application of the modified retrospective method. The company substantially completed its analysis of the impact of the new guidance in 2017. Applying the new guidance to the majority of the company’s revenue arrangements based on its most commonly used customer terms and conditions and routine sales transactions, which generally consist of a single performance obligation to transfer promised goods or services, does not have a material impact to the company’s consolidated financial statements. While the timing of revenue recognition for some of the company’s other sales transactions has been affected by the new guidance, the impact is not expected to be material. The impact of recording the cumulative effect of the change in the accounting guidance in the company's balance sheet in the first quarter of 2018 is expected to be less than 1% of total assets, total liabilities, and total shareholders’ equity. |
Business Combinations Policy [Policy Text Block] | Acquisitions have been accounted for using the purchase method of accounting, and the acquired companies’ results have been included in the accompanying financial statements from their respective dates of acquisition. Acquisition transaction costs are recorded in selling, general and administrative expenses as incurred. |
Stock-based Compensation Expense Policies [Policy Text Block] | The company measures the tax benefit associated with excess tax deductions related to stock-based compensation expense by multiplying the excess tax deductions by the statutory tax rates. The company uses the incremental tax benefit approach for utilization of tax attributes. Following the adoption of new guidance discussed in Note 1 , tax benefits recognized as a reduction of the income tax provision were $65 million in 2017. Tax benefits recognized in capital in excess of par value in the accompanying balance sheet were $53 million and $63 million , respectively, in 2016 and 2015 . Stock Options The company’s practice is to grant stock options at fair market value. Options vest over 3 - 5 years with terms of 7 - 10 years, assuming continued employment with certain exceptions. Vesting of the option awards is contingent upon meeting certain service conditions. The fair value of most option grants is estimated using the Black-Scholes option pricing model. For option grants that require the achievement of both service and market conditions, a lattice model is used to estimate fair value. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. Expected volatility was calculated based on the historical volatility of the company’s stock. Historical data on exercise patterns is the basis for estimating the expected life of an option. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term which approximates the expected life assumed at the date of grant. The expected annual dividend rate was calculated by dividing the company’s annual dividend, based on the most recent quarterly dividend rate, by the closing stock price on the grant date. The compensation expense recognized for all stock-based awards is net of estimated forfeitures. Forfeitures are estimated based on an analysis of actual option forfeitures. Restricted Share/Unit Awards Awards of restricted units convert into an equivalent number of shares of common stock. The awards generally vest over 3 - 4 years , assuming continued employment, with some exceptions. Vesting of the awards is contingent upon meeting certain service conditions and may also be contingent upon meeting certain performance and/or market conditions. The fair market value of the award at the time of the grant is amortized to expense over the requisite service period of the award, which is generally the vesting period. Recipients of restricted units have no voting rights but are entitled to accrue dividend equivalents. The fair value of service- and performance-based restricted unit awards is determined based on the number of units granted and the market value of the company’s shares on the grant date. For awards with market-based vesting conditions, the company uses a lattice model to estimate the grant-date fair value of the award. Compensation cost is based on the grant-date fair value and is recognized ratably over the requisite vesting period or to the date based on qualifying retirement eligibility, if earlier. |
Pension and Other Postretirement Benefit Plans, Policies [Policy Text Block] | Domestic Pension Plan Assets The company’s overall objective is to manage the assets in a liability framework where investments are selected that are expected to have similar changes in fair value as the related liabilities will have upon changes in interest rates. The company invests in a portfolio of both return-seeking and liability-hedging assets, primarily through the use of institutional collective funds, to achieve long-term growth and to insulate the funded position from interest rate volatility. The strategic asset allocation uses a combination of risk controlled and index strategies in fixed income and global equities. The company also has a small portfolio (comprising less than 1% of invested assets) of private equity investments. The target allocations for the remaining investments are approximately 10% to funds investing in U.S. equities, approximately 10% to funds investing in international equities and approximately 80% to funds investing in fixed income securities. The portfolio maintains enough liquidity at all times to meet the near-term benefit payments. Non-U.S. Pension Plan Assets The company maintains specific plan assets for many of the individual pension plans outside the U.S. The investment strategy of each plan has been uniquely established based on the country specific standards and characteristics of the plans. Several of the plans have contracts with insurance companies whereby the market risks of the benefit obligations are borne by the insurance companies. When assets are held directly in investments, generally the objective is to invest in a portfolio of diversified assets with a variety of fund managers. The investments may include hedge funds, multi-asset funds, alternative investments and derivative funds with the target asset allocations ranging from approximately 0% - 25% for equities, 0% - 100% for fixed income, 0% - 20% for hedge funds, 0% - 45% for multi-asset funds, 0% to 15% for alternative investments and 0% - 22% for funds holding derivatives. The derivatives held by the funds are primarily interest rate swaps intended to match the movements in the plan liabilities as well as equity futures in a synthetic equity fund which provide targeted exposure to equity markets without the fund holding individual equity positions. Each plan maintains enough liquidity at all times to meet the near-term benefit payments. Defined Benefit Pension Plans Employees of a number of the company’s non-U.S. and certain U.S. subsidiaries participate in defined benefit pension plans covering substantially all full-time employees at those subsidiaries. Some of the plans are unfunded, as permitted under the plans and applicable laws. The company also maintains postretirement healthcare programs at several acquired businesses where certain employees are eligible to participate. The costs of the postretirement healthcare programs are generally funded on a self-insured and insured-premium basis. The company recognizes the funded status of defined benefit pension and other postretirement benefit plans as an asset or liability. This amount is defined as the difference between the fair value of plan assets and the benefit obligation. The company is required to recognize as a component of other comprehensive income, net of tax, the actuarial gains/losses and prior service costs/credits that arise but were not previously required to be recognized as components of net periodic benefit cost. Other comprehensive income is adjusted as these amounts are later recognized in income as components of net periodic benefit cost. When a company with a pension plan is acquired, any excess of projected benefit obligation over the plan assets is recognized as a liability and any excess of plan assets over the projected benefit obligation is recognized as an asset. The recognition of a new liability or a new asset results in the elimination of (a) previously existing unrecognized net gain or loss and (b) unrecognized prior service cost or credits. The company funds annually, at a minimum, the statutorily required minimum amount as actuarially determined. The discount rate reflects the rate the company would have to pay to purchase high-quality investments that would provide cash sufficient to settle its current pension obligations. The discount rate is determined based on a range of factors, including the rates of return on high-quality, fixed-income corporate bonds and the related expected duration of the obligations or, in certain instances, the company has used a hypothetical portfolio of high quality instruments with maturities that mirror the benefit obligation in order to accurately estimate the discount rate relevant to a particular plan. The company utilizes a full yield curve approach in the estimation of these components by applying the specific spot-rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The expected long-term rate of return on plan assets reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for the benefits included in the projected benefit obligations. In determining the expected long-term rate of return on plan assets, the company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. In addition, the company may consult with and consider the opinions of financial and other professionals in developing appropriate return benchmarks. Asset management objectives include maintaining an adequate level of diversification to reduce interest rate and market risk and providing adequate liquidity to meet immediate and future benefit payment requirements. The expected rate of compensation increase reflects the long-term average rate of salary increases and is based on historic salary increase experience and management’s expectations of future salary increases. |
Acquisitions (Policies)
Acquisitions (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combinations Policy [Policy Text Block] | Acquisitions have been accounted for using the purchase method of accounting, and the acquired companies’ results have been included in the accompanying financial statements from their respective dates of acquisition. Acquisition transaction costs are recorded in selling, general and administrative expenses as incurred. |
Stockbased Compensation Expense
Stockbased Compensation Expense (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation Expense Policies [Policy Text Block] | The company measures the tax benefit associated with excess tax deductions related to stock-based compensation expense by multiplying the excess tax deductions by the statutory tax rates. The company uses the incremental tax benefit approach for utilization of tax attributes. Following the adoption of new guidance discussed in Note 1 , tax benefits recognized as a reduction of the income tax provision were $65 million in 2017. Tax benefits recognized in capital in excess of par value in the accompanying balance sheet were $53 million and $63 million , respectively, in 2016 and 2015 . Stock Options The company’s practice is to grant stock options at fair market value. Options vest over 3 - 5 years with terms of 7 - 10 years, assuming continued employment with certain exceptions. Vesting of the option awards is contingent upon meeting certain service conditions. The fair value of most option grants is estimated using the Black-Scholes option pricing model. For option grants that require the achievement of both service and market conditions, a lattice model is used to estimate fair value. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. Expected volatility was calculated based on the historical volatility of the company’s stock. Historical data on exercise patterns is the basis for estimating the expected life of an option. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term which approximates the expected life assumed at the date of grant. The expected annual dividend rate was calculated by dividing the company’s annual dividend, based on the most recent quarterly dividend rate, by the closing stock price on the grant date. The compensation expense recognized for all stock-based awards is net of estimated forfeitures. Forfeitures are estimated based on an analysis of actual option forfeitures. Restricted Share/Unit Awards Awards of restricted units convert into an equivalent number of shares of common stock. The awards generally vest over 3 - 4 years , assuming continued employment, with some exceptions. Vesting of the awards is contingent upon meeting certain service conditions and may also be contingent upon meeting certain performance and/or market conditions. The fair market value of the award at the time of the grant is amortized to expense over the requisite service period of the award, which is generally the vesting period. Recipients of restricted units have no voting rights but are entitled to accrue dividend equivalents. The fair value of service- and performance-based restricted unit awards is determined based on the number of units granted and the market value of the company’s shares on the grant date. For awards with market-based vesting conditions, the company uses a lattice model to estimate the grant-date fair value of the award. Compensation cost is based on the grant-date fair value and is recognized ratably over the requisite vesting period or to the date based on qualifying retirement eligibility, if earlier. |
Pension and Other Postretirem28
Pension and Other Postretirement Benefit Plans (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits, Description [Abstract] | |
Pension and Other Postretirement Benefit Plans, Policies [Policy Text Block] | Domestic Pension Plan Assets The company’s overall objective is to manage the assets in a liability framework where investments are selected that are expected to have similar changes in fair value as the related liabilities will have upon changes in interest rates. The company invests in a portfolio of both return-seeking and liability-hedging assets, primarily through the use of institutional collective funds, to achieve long-term growth and to insulate the funded position from interest rate volatility. The strategic asset allocation uses a combination of risk controlled and index strategies in fixed income and global equities. The company also has a small portfolio (comprising less than 1% of invested assets) of private equity investments. The target allocations for the remaining investments are approximately 10% to funds investing in U.S. equities, approximately 10% to funds investing in international equities and approximately 80% to funds investing in fixed income securities. The portfolio maintains enough liquidity at all times to meet the near-term benefit payments. Non-U.S. Pension Plan Assets The company maintains specific plan assets for many of the individual pension plans outside the U.S. The investment strategy of each plan has been uniquely established based on the country specific standards and characteristics of the plans. Several of the plans have contracts with insurance companies whereby the market risks of the benefit obligations are borne by the insurance companies. When assets are held directly in investments, generally the objective is to invest in a portfolio of diversified assets with a variety of fund managers. The investments may include hedge funds, multi-asset funds, alternative investments and derivative funds with the target asset allocations ranging from approximately 0% - 25% for equities, 0% - 100% for fixed income, 0% - 20% for hedge funds, 0% - 45% for multi-asset funds, 0% to 15% for alternative investments and 0% - 22% for funds holding derivatives. The derivatives held by the funds are primarily interest rate swaps intended to match the movements in the plan liabilities as well as equity futures in a synthetic equity fund which provide targeted exposure to equity markets without the fund holding individual equity positions. Each plan maintains enough liquidity at all times to meet the near-term benefit payments. Defined Benefit Pension Plans Employees of a number of the company’s non-U.S. and certain U.S. subsidiaries participate in defined benefit pension plans covering substantially all full-time employees at those subsidiaries. Some of the plans are unfunded, as permitted under the plans and applicable laws. The company also maintains postretirement healthcare programs at several acquired businesses where certain employees are eligible to participate. The costs of the postretirement healthcare programs are generally funded on a self-insured and insured-premium basis. The company recognizes the funded status of defined benefit pension and other postretirement benefit plans as an asset or liability. This amount is defined as the difference between the fair value of plan assets and the benefit obligation. The company is required to recognize as a component of other comprehensive income, net of tax, the actuarial gains/losses and prior service costs/credits that arise but were not previously required to be recognized as components of net periodic benefit cost. Other comprehensive income is adjusted as these amounts are later recognized in income as components of net periodic benefit cost. When a company with a pension plan is acquired, any excess of projected benefit obligation over the plan assets is recognized as a liability and any excess of plan assets over the projected benefit obligation is recognized as an asset. The recognition of a new liability or a new asset results in the elimination of (a) previously existing unrecognized net gain or loss and (b) unrecognized prior service cost or credits. The company funds annually, at a minimum, the statutorily required minimum amount as actuarially determined. The discount rate reflects the rate the company would have to pay to purchase high-quality investments that would provide cash sufficient to settle its current pension obligations. The discount rate is determined based on a range of factors, including the rates of return on high-quality, fixed-income corporate bonds and the related expected duration of the obligations or, in certain instances, the company has used a hypothetical portfolio of high quality instruments with maturities that mirror the benefit obligation in order to accurately estimate the discount rate relevant to a particular plan. The company utilizes a full yield curve approach in the estimation of these components by applying the specific spot-rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The expected long-term rate of return on plan assets reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for the benefits included in the projected benefit obligations. In determining the expected long-term rate of return on plan assets, the company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. In addition, the company may consult with and consider the opinions of financial and other professionals in developing appropriate return benchmarks. Asset management objectives include maintaining an adequate level of diversification to reduce interest rate and market risk and providing adequate liquidity to meet immediate and future benefit payment requirements. The expected rate of compensation increase reflects the long-term average rate of salary increases and is based on historic salary increase experience and management’s expectations of future salary increases. |
Nature of Operations and Summ29
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Allowance for Doubtful Accounts [Table Text Block] | The changes in the allowance for doubtful accounts are as follows: Year Ended December 31, (In millions) 2017 2016 2015 Beginning Balance $ 77 $ 70 $ 74 Provision charged to expense (a) 32 16 5 Accounts written off (10 ) (9 ) (4 ) Acquisitions, currency translation and other 10 — (5 ) Ending Balance $ 109 $ 77 $ 70 (a) In 2017, includes $6 million of charges to conform the accounting policies of Patheon to the company's accounting policies. In 2016, includes $9 million of charges to conform the accounting policies of FEI to the company's accounting policies. |
Warranty Obligations [Table Text Block] | The changes in the carrying amount of standard product warranty obligations are as follows: Year Ended December 31, December 31, (In millions) 2017 2016 Beginning Balance $ 78 $ 56 Provision charged to income 110 96 Usage (101 ) (87 ) Acquisitions — 17 Adjustments to previously provided warranties, net (4 ) (2 ) Currency translation 4 (2 ) Ending Balance $ 87 $ 78 |
Inventories [Table Text Block] | The components of inventories are as follows: December 31, December 31, (In millions) 2017 2016 Raw Materials $ 708 $ 466 Work in Process 505 328 Finished Goods 1,758 1,419 Inventories $ 2,971 $ 2,213 |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment consists of the following: December 31, December 31, (In millions) 2017 2016 Land $ 401 $ 306 Buildings and Improvements 1,662 1,154 Machinery, Equipment and Leasehold Improvements 4,276 2,956 Property, Plant and Equipment, at Cost 6,339 4,416 Less: Accumulated Depreciation and Amortization 2,292 1,838 Property, Plant and Equipment, Net $ 4,047 $ 2,578 |
Finite-Lived Acquisition-related Intangible Assets [Table Text Block] | Acquisition-related intangible assets are as follows: Balance at December 31, 2017 Balance at December 31, 2016 (In millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Definite Lived: Customer relationships $ 17,356 $ (5,902 ) $ 11,454 $ 13,167 $ (4,821 ) $ 8,346 Product technology 6,046 (2,811 ) 3,235 5,680 (2,204 ) 3,476 Tradenames 1,538 (817 ) 721 1,452 (646 ) 806 Other 34 (34 ) — 33 (33 ) — 24,974 (9,564 ) 15,410 20,332 (7,704 ) 12,628 Indefinite Lived: Tradenames 1,235 — 1,235 1,235 — 1,235 In-process research and development 39 — 39 106 — 106 1,274 — 1,274 1,341 — 1,341 Acquisition-related Intangible Assets $ 26,248 $ (9,564 ) $ 16,684 $ 21,673 $ (7,704 ) $ 13,969 |
Indefinite-Lived Acquisition-related Intangible Assets [Table Text Block] | Acquisition-related intangible assets are as follows: Balance at December 31, 2017 Balance at December 31, 2016 (In millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Definite Lived: Customer relationships $ 17,356 $ (5,902 ) $ 11,454 $ 13,167 $ (4,821 ) $ 8,346 Product technology 6,046 (2,811 ) 3,235 5,680 (2,204 ) 3,476 Tradenames 1,538 (817 ) 721 1,452 (646 ) 806 Other 34 (34 ) — 33 (33 ) — 24,974 (9,564 ) 15,410 20,332 (7,704 ) 12,628 Indefinite Lived: Tradenames 1,235 — 1,235 1,235 — 1,235 In-process research and development 39 — 39 106 — 106 1,274 — 1,274 1,341 — 1,341 Acquisition-related Intangible Assets $ 26,248 $ (9,564 ) $ 16,684 $ 21,673 $ (7,704 ) $ 13,969 |
Finite-Lived Acquisition-related Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated future amortization expense of acquisition-related intangible assets with definite lives is as follows: (In millions) 2018 $ 1,705 2019 1,698 2020 1,609 2021 1,510 2022 1,383 2023 and Thereafter 7,505 Estimated Future Amortization Expense of Definite-lived Intangible Assets $ 15,410 |
Goodwill [Table Text Block] | The changes in the carrying amount of goodwill by segment are as follows: (In millions) Life Sciences Solutions Analytical Instruments Specialty Diagnostics Laboratory Products and Services Total Balance at December 31, 2015 $ 7,617 $ 2,703 $ 3,771 $ 4,737 $ 18,828 Acquisitions 619 2,059 1 14 2,693 Finalization of purchase price allocations for 2015 acquisitions — — — 7 7 Currency translation (3 ) (80 ) (108 ) (31 ) (222 ) Other 13 4 (5 ) 10 22 Balance at December 31, 2016 8,246 4,686 3,659 4,737 21,328 Acquisitions 136 99 27 3,256 3,518 Finalization of purchase price allocations for 2016 acquisitions (4 ) 68 — (1 ) 63 Currency translation 14 174 171 25 384 Other (1 ) — (1 ) (1 ) (3 ) Balance at December 31, 2017 $ 8,391 $ 5,027 $ 3,856 $ 8,016 $ 25,290 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The components of the purchase price and net assets acquired for 2016 acquisitions are as follows: (In millions) FEI Affymetrix Other Total Purchase Price Cash paid $ 4,440 $ 1,165 $ 29 $ 5,634 Debt assumed — 254 1 255 Purchase price payable 11 1 3 15 Cash acquired (369 ) (78 ) — (447 ) $ 4,082 $ 1,342 $ 33 $ 5,457 Net Assets Acquired Current assets $ 619 $ 161 $ 3 $ 783 Property, plant and equipment 153 19 — 172 Definite-lived intangible assets: Customer relationships 1,051 501 9 1,561 Product technology 740 253 7 1,000 Tradenames and other 42 46 — 88 Indefinite-lived intangible assets: In-process research and development 105 14 — 119 Goodwill 2,125 615 16 2,756 Other assets 72 8 — 80 Liabilities assumed (825 ) (275 ) (2 ) (1,102 ) $ 4,082 $ 1,342 $ 33 $ 5,457 The components of the purchase price and net assets acquired for 2017 acquisitions are as follows: (In millions) Patheon Core Informatics Finesse Solutions Other Total Purchase Price Cash paid $ 6,861 $ 95 $ 223 $ 97 $ 7,276 Debt assumed 488 — — — 488 Fair value of contingent consideration — 9 — 8 17 Fair value of equity awards exchanged 6 — — — 6 Fair value of previously held interest — — — 11 11 Purchase price payable 50 — — 7 57 Cash acquired (47 ) (10 ) (2 ) (13 ) (72 ) $ 7,358 $ 94 $ 221 $ 110 $ 7,783 Net Assets Acquired Current assets $ 1,046 $ 2 $ 17 $ 20 $ 1,085 Property, plant and equipment 1,288 — 1 3 1,292 Definite-lived intangible assets: Customer relationships 3,618 6 68 16 3,708 Product technology — 29 32 35 96 Tradenames and other 112 3 2 — 117 Indefinite-lived intangible assets: In-process research and development — — 2 — 2 Goodwill 3,255 63 136 64 3,518 Other assets 54 — — — 54 Deferred tax liabilities (1,091 ) (4 ) (22 ) (14 ) (1,131 ) Other liabilities assumed (924 ) (5 ) (15 ) (14 ) (958 ) $ 7,358 $ 94 $ 221 $ 110 $ 7,783 The components of the purchase price and net assets acquired for 2015 acquisitions are as follows: (In millions) Alfa Aesar Advanced Scientifics Other Total Purchase Price Cash paid $ 393 $ 289 $ 19 $ 701 Purchase price payable — — 1 1 Cash acquired (4 ) — (1 ) (5 ) $ 389 $ 289 $ 19 $ 697 Net Assets Acquired Current assets $ 96 $ 29 $ 5 $ 130 Property, plant and equipment 39 11 — 50 Definite-lived intangible assets: Customer relationships 137 90 8 235 Product technology — 37 — 37 Tradenames and other 16 2 — 18 Goodwill 125 124 9 258 Other assets 5 — — 5 Liabilities assumed (29 ) (4 ) (3 ) (36 ) $ 389 $ 289 $ 19 $ 697 |
Business Acquisition, Pro Forma Information [Table Text Block] | Unaudited Pro Forma Information The following unaudited pro forma information provides the effect of the company's 2017 acquisition of Patheon as if the acquisition had occurred on January 1, 2016, and the effects of the company's 2016 acquisitions of FEI and Affymetrix as if the acquisitions had occurred on January 1, 2015: (In millions) 2017 2016 2015 Revenues $ 22,144 $ 20,807 $ 18,230 Net Income $ 2,258 $ 1,791 $ 1,684 |
Business Segment and Geograph31
Business Segment and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Business Segment Information (In millions) 2017 2016 2015 Revenues Life Sciences Solutions $ 5,728 $ 5,317 $ 4,774 Analytical Instruments 4,821 3,668 3,208 Specialty Diagnostics 3,486 3,339 3,244 Laboratory Products and Services 7,825 6,724 6,372 Eliminations (942 ) (774 ) (633 ) Consolidated revenues 20,918 18,274 16,965 Segment Income (a) Life Sciences Solutions 1,896 1,596 1,414 Analytical Instruments 1,027 745 613 Specialty Diagnostics 930 910 873 Laboratory Products and Services 1,007 971 922 Subtotal reportable segments (a) 4,860 4,222 3,822 Cost of revenues charges (123 ) (102 ) (9 ) Selling, general and administrative charges, net (78 ) (104 ) (46 ) Restructuring and other costs, net (97 ) (189 ) (116 ) Amortization of acquisition-related intangible assets (1,594 ) (1,378 ) (1,315 ) Consolidated operating income 2,968 2,449 2,336 Other expense, net (b) (539 ) (425 ) (400 ) Income from continuing operations before income taxes $ 2,429 $ 2,024 $ 1,936 Depreciation Life Sciences Solutions $ 129 $ 142 $ 147 Analytical Instruments 71 50 39 Specialty Diagnostics 72 70 74 Laboratory Products and Services 167 118 113 Consolidated depreciation $ 439 $ 380 $ 373 (a) Represents operating income before certain charges to cost of revenues and selling, general and administrative expenses; restructuring and other costs, net; and amortization of acquisition-related intangibles. (b) The company does not allocate other expense, net to its segments. (In millions) 2017 2016 2015 Total Assets Life Sciences Solutions $ 19,063 $ 19,065 $ 18,537 Analytical Instruments 9,960 9,520 4,763 Specialty Diagnostics 7,095 6,802 7,183 Laboratory Products and Services 19,181 9,405 9,614 Corporate/Other (c) 1,370 1,116 737 Consolidated total assets $ 56,669 $ 45,908 $ 40,834 Capital Expenditures Life Sciences Solutions $ 118 $ 122 $ 93 Analytical Instruments 56 34 60 Specialty Diagnostics 87 72 76 Laboratory Products and Services 178 111 90 Corporate/Other 69 105 104 Consolidated capital expenditures $ 508 $ 444 $ 423 (c) Corporate assets consist primarily of cash and cash equivalents, short-term investments, property and equipment at the company's corporate offices. |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Business Segment Information (In millions) 2017 2016 2015 Revenues Life Sciences Solutions $ 5,728 $ 5,317 $ 4,774 Analytical Instruments 4,821 3,668 3,208 Specialty Diagnostics 3,486 3,339 3,244 Laboratory Products and Services 7,825 6,724 6,372 Eliminations (942 ) (774 ) (633 ) Consolidated revenues 20,918 18,274 16,965 Segment Income (a) Life Sciences Solutions 1,896 1,596 1,414 Analytical Instruments 1,027 745 613 Specialty Diagnostics 930 910 873 Laboratory Products and Services 1,007 971 922 Subtotal reportable segments (a) 4,860 4,222 3,822 Cost of revenues charges (123 ) (102 ) (9 ) Selling, general and administrative charges, net (78 ) (104 ) (46 ) Restructuring and other costs, net (97 ) (189 ) (116 ) Amortization of acquisition-related intangible assets (1,594 ) (1,378 ) (1,315 ) Consolidated operating income 2,968 2,449 2,336 Other expense, net (b) (539 ) (425 ) (400 ) Income from continuing operations before income taxes $ 2,429 $ 2,024 $ 1,936 Depreciation Life Sciences Solutions $ 129 $ 142 $ 147 Analytical Instruments 71 50 39 Specialty Diagnostics 72 70 74 Laboratory Products and Services 167 118 113 Consolidated depreciation $ 439 $ 380 $ 373 (a) Represents operating income before certain charges to cost of revenues and selling, general and administrative expenses; restructuring and other costs, net; and amortization of acquisition-related intangibles. (b) The company does not allocate other expense, net to its segments. |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Geographical Information (In millions) 2017 2016 2015 Revenues (d) United States $ 10,177 $ 9,086 $ 8,607 China 2,058 1,730 1,376 Other 8,683 7,458 6,982 Consolidated revenues $ 20,918 $ 18,274 $ 16,965 Long-lived Assets (e) United States $ 2,349 $ 1,630 $ 1,532 United Kingdom 277 217 261 Other 1,421 731 656 Consolidated long-lived assets $ 4,047 $ 2,578 $ 2,449 (d) Revenues are attributed to countries based on customer location. (e) Includes property, plant and equipment, net |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | The components of other expense, net, in the accompanying statement of income are as follows: (In millions) 2017 2016 2015 Interest Income $ 81 $ 48 $ 31 Interest Expense (592 ) (469 ) (415 ) Other Items, Net (28 ) (4 ) (16 ) Other Expense, Net $ (539 ) $ (425 ) $ (400 ) |
Stockbased Compensation Expen33
Stockbased Compensation Expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | The components of stock-based compensation expense are primarily included in selling, general and administrative expenses and are as follows: (In millions) 2017 2016 2015 Stock Option Awards $ 53 $ 41 $ 44 Restricted Unit Awards 106 92 81 Total Stock-based Compensation Expense $ 159 $ 133 $ 125 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The weighted average assumptions used in the Black-Scholes option pricing model are as follows: 2017 2016 2015 Expected Stock Price Volatility 20 % 21 % 24 % Risk Free Interest Rate 1.9 % 1.2 % 1.4 % Expected Life of Options (years) 4.3 4.3 4.3 Expected Annual Dividend 0.4 % 0.5 % 0.5 % |
Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the company’s option activity for the year ended December 31, 2017 is presented below: Shares (in millions) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (a) (in millions) Outstanding at December 31, 2016 8.8 $ 98.69 Granted 2.6 167.59 Issued in connection with an acquisition 0.3 114.06 Exercised (2.2 ) 79.16 Canceled/Expired (0.5 ) 134.56 Outstanding at December 31, 2017 9.0 $ 121.78 4.2 Vested and Unvested Expected to Vest at December 31, 2017 8.5 $ 119.92 4.1 $ 597 Exercisable at December 31, 2017 4.1 $ 90.31 2.6 $ 413 (a) Market price per share on December 31, 2017 was $189.88 . The intrinsic value is zero for options with exercise prices above the market price. |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | A summary of the company’s option activity for the year ended December 31, 2017 is presented below: Shares (in millions) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (a) (in millions) Outstanding at December 31, 2016 8.8 $ 98.69 Granted 2.6 167.59 Issued in connection with an acquisition 0.3 114.06 Exercised (2.2 ) 79.16 Canceled/Expired (0.5 ) 134.56 Outstanding at December 31, 2017 9.0 $ 121.78 4.2 Vested and Unvested Expected to Vest at December 31, 2017 8.5 $ 119.92 4.1 $ 597 Exercisable at December 31, 2017 4.1 $ 90.31 2.6 $ 413 (a) Market price per share on December 31, 2017 was $189.88 . The intrinsic value is zero for options with exercise prices above the market price. |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | A summary of the company’s restricted unit activity for the year ended December 31, 2017 is presented below: Units (in millions) Weighted Average Grant-Date Fair Value Unvested at December 31, 2016 1.3 $ 129.80 Granted 0.8 157.80 Issued in connection with an acquisition 0.2 180.52 Vested (0.7 ) 132.67 Forfeited (0.2 ) 138.44 Unvested at December 31, 2017 1.4 $ 150.23 |
Pension and Other Postretirem34
Pension and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits, Description [Abstract] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] | The following table provides a reconciliation of benefit obligations and plan assets of the company’s domestic and non-U.S. pension plans and postretirement benefit plans: Domestic Pension Benefits Non-U.S. Pension Benefits Postretirement Benefits (In millions) 2017 2016 2017 2016 2017 2016 Change in Projected Benefit Obligations Benefit Obligation at Beginning of Year $ 1,249 $ 1,213 $ 1,116 $ 1,036 $ 50 $ 49 Business combinations — 33 185 1 6 — Service costs — — 26 24 1 1 Interest costs 43 51 21 27 2 2 Settlements — — (60 ) (8 ) — — Plan participants' contributions — — 5 4 1 1 Actuarial (gains) losses 92 30 (34 ) 150 6 1 Benefits paid (84 ) (78 ) (37 ) (30 ) (4 ) (4 ) Currency translation and other — — 102 (88 ) 1 — Benefit Obligation at End of Year $ 1,300 $ 1,249 $ 1,324 $ 1,116 $ 63 $ 50 Change in Fair Value of Plan Assets Fair Value of Plan Assets at Beginning of Year $ 944 $ 945 $ 853 $ 817 $ 8 $ 7 Business combinations — — 101 — — — Actual return on plan assets 161 71 32 125 1 1 Employer contribution 160 6 37 50 3 3 Settlements — — (60 ) (8 ) — — Plan participants' contributions — — 5 4 1 1 Benefits paid (84 ) (78 ) (37 ) (30 ) (4 ) (4 ) Currency translation and other — — 80 (105 ) — — Fair Value of Plan Assets at End of Year $ 1,181 $ 944 $ 1,011 $ 853 $ 9 $ 8 Funded Status $ (119 ) $ (305 ) $ (313 ) $ (263 ) $ (54 ) $ (42 ) Accumulated Benefit Obligation $ 1,300 $ 1,249 $ 1,256 $ 1,048 Amounts Recognized in Balance Sheet Non-current asset $ — $ — $ 100 $ 63 $ 6 $ 4 Current liability (7 ) (10 ) (10 ) (6 ) (3 ) (3 ) Non-current liability (112 ) (295 ) (403 ) (320 ) (57 ) (43 ) Net amount recognized $ (119 ) $ (305 ) $ (313 ) $ (263 ) $ (54 ) $ (42 ) Amounts Recognized in Accumulated Other Comprehensive Loss Net actuarial loss $ 156 $ 171 $ 126 $ 170 $ 11 $ 6 Prior service credits — — 10 8 — — Net amount recognized $ 156 $ 171 $ 136 $ 178 $ 11 $ 6 |
Schedule of Assumptions Used [Table Text Block] | The actuarial assumptions used to compute the funded status for the plans are based upon information available as of December 31, 2017 and 2016 and are as follows: Domestic Pension Benefits Non-U.S. Pension Benefits Postretirement Benefits 2017 2016 2017 2016 2017 2016 Weighted Average Assumptions Used to Determine Projected Benefit Obligations Discount rate 3.55 % 4.07 % 2.10 % 1.95 % 3.43 % 3.77 % Average rate of increase in employee compensation 4.00 % 4.00 % 2.59 % 3.09 % — — Initial healthcare cost trend rate 6.73 % 6.70 % Ultimate healthcare cost trend rate 5.04 % 5.08 % The actuarial assumptions used to compute the net periodic pension benefit cost (income) are based upon information available as of the beginning of the year, as presented in the following table: Domestic Pension Benefits Non-U.S. Pension Benefits 2017 2016 2015 2017 2016 2015 Weighted Average Assumptions Used to Determine Net Benefit Cost (Income) Discount rate 4.06 % 4.25 % 4.00 % 1.95 % 2.83 % 2.69 % Average rate of increase in employee compensation 4.00 % 4.00 % 4.00 % 3.10 % 3.06 % 3.03 % Expected long-term rate of return on assets 6.50 % 7.00 % 7.00 % 3.11 % 3.74 % 4.21 % |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | The projected benefit obligation and fair value of plan assets for the company’s qualified and non-qualified pension plans with projected benefit obligations in excess of plan assets are as follows: Pension Plans (In millions) 2017 2016 Pension Plans with Projected Benefit Obligations in Excess of Plan Assets Projected benefit obligation $ 2,059 $ 1,907 Fair value of plan assets 1,527 1,276 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | The accumulated benefit obligation and fair value of plan assets for the company's qualified and non-qualified pension plans with accumulated benefit obligations in excess of plan assets are as follows: Pension Plans (In millions) 2017 2016 Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets Accumulated benefit obligation $ 1,962 $ 1,847 Fair value of plan assets 1,495 1,275 |
Schedule of Net Benefit Costs [Table Text Block] | The net periodic pension benefit cost (income) includes the following components: Domestic Pension Benefits Non-U.S. Pension Benefits (In millions) 2017 2016 2015 2017 2016 2015 Components of Net Benefit Cost (Income) Service cost-benefits earned $ — $ — $ — $ 26 $ 24 $ 25 Interest cost on benefit obligation 43 51 50 21 27 28 Expected return on plan assets (56 ) (49 ) (54 ) (29 ) (28 ) (33 ) Amortization of actuarial net loss 2 — — 9 7 9 Settlement/curtailment loss (gain) 1 — — 5 — 1 Special termination benefits — — — — — 1 Net periodic benefit cost (income) $ (10 ) $ 2 $ (4 ) $ 32 $ 30 $ 31 |
Schedule of Expected Benefit Payments [Table Text Block] | Estimated future benefit payments during the next five years and in the aggregate for the five fiscal years thereafter, are as follows: (In millions) Domestic Pension Benefits Non-U.S. Pension Benefits Post- retirement Benefits Expected Benefit Payments 2018 $ 87 $ 46 $ 3 2019 84 37 3 2020 83 39 3 2021 85 41 3 2022 82 43 3 2023-2027 394 250 16 |
Schedule of Allocation of Plan Assets [Table Text Block] | The fair values of the company’s plan assets at December 31, 2017 and 2016 , by asset category are as follows: December 31, Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Not Subject to Leveling (1) (In millions) 2017 (Level 1) (Level 2) (Level 3) Domestic Pension Plan Assets U.S. equity funds $ 163 $ — $ — $ — $ 163 International equity funds 180 — — — 180 Fixed income funds 761 — — — 761 Private equity funds 2 — — — 2 Money market funds 75 — — — 75 Total Domestic Pension Plans $ 1,181 $ — $ — $ — $ 1,181 Non-U.S. Pension Plan Assets Equity funds $ 75 $ — $ — $ — $ 75 Fixed income funds 312 — — — 312 Hedge funds 77 — — — 77 Multi-asset funds 79 — — — 79 Derivative funds 194 — — — 194 Alternative investments 17 — — — 17 Insurance contracts 202 — 202 — — Cash / money market funds 55 40 — — 15 Total Non-U.S. Pension Plans $ 1,011 $ 40 $ 202 $ — $ 769 (1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. December 31, Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Not Subject to Leveling (1) (In millions) 2016 (Level 1) (Level 2) (Level 3) Domestic Pension Plan Assets U.S. equity funds $ 259 $ — $ — $ — $ 259 International equity funds 229 — — — 229 Fixed income funds 437 — — — 437 Private equity funds 2 — — — 2 Money market funds 17 — — — 17 Total Domestic Pension Plans $ 944 $ — $ — $ — $ 944 Non-U.S. Pension Plan Assets Equity funds $ 123 $ 56 $ — $ — $ 67 Fixed income funds 294 20 — — 274 Hedge funds 80 — — — 80 Multi-asset funds 12 — — — 12 Derivative funds 158 — — — 158 Insurance contracts 177 — 177 — — Cash / money market funds 9 5 — — 4 Total Non-U.S. Pension Plans $ 853 $ 81 $ 177 $ — $ 595 (1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The components of income from continuing operations before provision for income taxes are as follows: (In millions) 2017 2016 2015 U.S. $ 655 $ 493 $ 851 Non-U.S. 1,774 1,531 1,085 Income from Continuing Operations $ 2,429 $ 2,024 $ 1,936 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of the provision for income taxes of continuing operations are as follows: (In millions) 2017 2016 2015 Current Income Tax Provision Federal $ 1,259 $ 280 $ 184 Non-U.S. 576 349 363 State 62 9 9 1,897 638 556 Deferred Income Tax Provision (Benefit) Federal $ (1,437 ) $ (510 ) $ (297 ) Non-U.S. (271 ) (104 ) (288 ) State 12 (25 ) (15 ) (1,696 ) (639 ) (600 ) Provision for (benefit from) income taxes $ 201 $ (1 ) $ (44 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The provision for income taxes in the accompanying statement of income differs from the provision calculated by applying the statutory federal income tax rate of 35% to income from continuing operations before provision for income taxes due to the following: (In millions) 2017 2016 2015 Provision for Income Taxes at Statutory Rate $ 850 $ 708 $ 678 Increases (Decreases) Resulting From: Foreign rate differential (380 ) (322 ) (275 ) Foreign exchange loss on inter-company debt refinancing (237 ) — — Income tax credits (273 ) (318 ) (316 ) Manufacturing deduction (42 ) (38 ) (38 ) Withholding taxes 55 — — Singapore tax holiday (25 ) (23 ) (21 ) Impact of change in tax laws and apportionment on deferred taxes (1,121 ) 2 (38 ) Transition tax 1,250 — — Provision of tax reserves, net 99 12 18 Excess tax benefits from stock options and restricted stock units (65 ) — — Tax return reassessments and settlements 8 (41 ) (54 ) Other, net 82 19 2 Provision for (benefit from) income taxes $ 201 $ (1 ) $ (44 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Net deferred tax asset (liability) in the accompanying balance sheet consists of the following: (In millions) 2017 2016 Deferred Tax Asset (Liability) Depreciation and amortization $ (3,957 ) $ (4,219 ) Net operating loss and credit carryforwards 1,150 1,453 Reserves and accruals 139 192 Accrued compensation 265 372 Foreign undistributed earnings — (156 ) Inventory basis difference 81 110 Other capitalized costs 61 84 Unrealized losses on hedging instruments 125 36 Other, net 126 66 Deferred tax assets (liabilities), net before valuation allowance (2,010 ) (2,062 ) Less: Valuation allowance 256 113 Deferred tax assets (liabilities), net $ (2,266 ) $ (2,175 ) The changes in the valuation allowance are as follows: Year Ended December 31, (In millions) 2017 2016 2015 Beginning Balance $ 113 $ 109 $ 116 Additions charged to income tax provision 28 — — Additions due to acquisitions 108 25 — Currency translation and other 7 (21 ) (7 ) Ending Balance $ 256 $ 113 $ 109 |
Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: (In millions) 2017 2016 2015 Balance at beginning of year $ 802 $ 350 $ 214 Additions due to acquisitions 31 54 — Additions for tax positions of current year 565 342 14 Additions for tax positions of prior years 51 94 121 Closure of tax years — (28 ) (5 ) Settlements (40 ) (10 ) 6 Balance at end of year $ 1,409 $ 802 $ 350 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | (In millions except per share amounts) 2017 2016 2015 Income from Continuing Operations $ 2,228 $ 2,025 $ 1,980 Loss from Discontinued Operations (3 ) (3 ) (5 ) Net Income $ 2,225 $ 2,022 $ 1,975 Basic Weighted Average Shares 395 395 399 Plus Effect of: Stock options and restricted units 3 2 3 Diluted Weighted Average Shares 398 397 402 Basic Earnings per Share: Continuing operations $ 5.65 $ 5.13 $ 4.97 Discontinued operations (0.01 ) (0.01 ) (0.01 ) Basic Earnings per Share $ 5.64 $ 5.12 $ 4.96 Diluted Earnings per Share: Continuing operations $ 5.60 $ 5.10 $ 4.93 Discontinued operations (0.01 ) (0.01 ) (0.01 ) Diluted Earnings per Share $ 5.59 $ 5.09 $ 4.92 Antidilutive Stock Options Excluded from Diluted Weighted Average Shares 2 2 3 |
Debt and Other Financing Arra37
Debt and Other Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Effective Interest Rate at December 31, December 31, December 31, (Dollars in millions) 2017 2017 2016 Commercial Paper (0.26 )% $ 960 $ 953 Term Loan — 825 1.85% 5-Year Senior Notes, Due 1/15/2018 — 500 Floating Rate 2-Year Senior Notes, Due 8/9/2018 (euro-denominated) 0.37 % 721 631 2.15% 3-Year Senior Notes, Due 12/14/2018 2.35 % 450 450 2.40% 5-Year Senior Notes, Due 2/1/2019 2.59 % 900 900 Floating Rate 2-Year Senior Notes, Due 7/24/2019 (euro-denominated) 0.10 % 600 — 6.00% 10-Year Senior Notes, Due 3/1/2020 2.97 % 750 750 4.70% 10-Year Senior Notes, Due 5/1/2020 4.23 % 300 300 1.50% 5-Year Senior Notes, Due 12/1/2020 (euro-denominated) 1.62 % 510 447 5.00% 10-Year Senior Notes, Due 1/15/2021 3.24 % 400 400 4.50% 10-Year Senior Notes, Due 3/1/2021 5.37 % 1,000 1,000 3.60% 10-Year Senior Notes, Due 8/15/2021 5.19 % 1,100 1,100 3.30% 7-Year Senior Notes, Due 2/15/2022 3.43 % 800 800 2.15% 7-Year Senior Notes, Due 7/21/2022 (euro-denominated) 2.28 % 600 526 3.15% 10-Year Senior Notes, Due 1/15/2023 3.31 % 800 800 3.00% 7-Year Senior Notes, Due 4/15/2023 5.42 % 1,000 1,000 4.15% 10-Year Senior Notes, Due 2/1/2024 4.16 % 1,000 1,000 0.75% 8-Year Senior Notes, Due 9/12/2024 (euro-denominated) 0.95 % 1,201 1,052 2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) 2.10 % 768 673 3.65% 10-Year Senior Notes, Due 12/15/2025 3.77 % 350 350 1.40% 8.5-Year Senior Notes, Due 1/23/2026 (euro-denominated) 1.53 % 840 — 2.95% 10-Year Senior Notes, Due 9/19/2026 3.19 % 1,200 1,200 1.45% 10-Year Senior Notes, Due 3/16/2027 (euro-denominated) 1.66 % 600 — 3.20% 10-Year Senior Notes, Due 8/15/2027 3.39 % 750 — 1.375% 12-Year Senior Notes, Due 9/12/2028 (euro-denominated) 1.46 % 721 631 1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) 2.08 % 840 — 2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) 2.94 % 840 — 5.30% 30-Year Senior Notes, Due 2/1/2044 5.37 % 400 400 4.10% 30-Year Senior Notes, Due 8/15/2047 4.23 % 750 — Other 24 13 Total Borrowings at Par Value 21,175 16,701 Fair Value Hedge Accounting Adjustments (70 ) (50 ) Unamortized (Discount) Premium, Net (2 ) 52 Unamortized Debt Issuance Costs (95 ) (76 ) Total Borrowings at Carrying Value 21,008 16,627 Less: Short-term Obligations and Current Maturities 2,135 1,255 Long-term Obligations $ 18,873 $ 15,372 |
Schedule of Maturities of Long-term Debt [Table Text Block] | As of December 31, 2017 , the annual repayment requirements for debt obligations are as follows: (In millions) 2018 $ 2,135 2019 1,505 2020 1,564 2021 2,503 2022 1,403 2023 and Thereafter 12,065 $ 21,175 |
Schedule of Derivative Instruments [Table Text Block] | The following table summarizes the outstanding interest rate swap arrangements on the company's senior notes at December 31, 2017 : Aggregate Notional Amount Pay Rate as of (Dollars in millions) Pay Rate December 31, Receive Rate 4.50% Senior Notes due 2021 1,000 1-month LIBOR + 3.4420% 4.8027 % 4.50 % 3.60% Senior Notes due 2021 1,100 1-month LIBOR + 2.5150% 3.9920 % 3.60 % 3.00% Senior Notes due 2023 1,000 1-month LIBOR + 1.7640% 3.2410 % 3.00 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The following is a summary of annual future minimum lease and rental commitments under noncancelable operating leases as of December 31, 2017 : (In millions) 2018 $ 188 2019 154 2020 123 2021 92 2022 80 2023 and Thereafter 169 $ 806 |
Comprehensive Income and Shar39
Comprehensive Income and Shareholders Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in each component of accumulated other comprehensive items, net of tax are as follows: (In millions) Currency Translation Adjustment Unrealized Gains (Losses) on Available-for- Sale Investments Unrealized Losses on Hedging Instruments Pension and Other Postretirement Benefit Liability Adjustment Total Balance at December 31, 2016 (2,343 ) 1 (57 ) (237 ) (2,636 ) Other comprehensive income (loss) before reclassifications 588 (1 ) — 23 610 Amounts reclassified from accumulated other comprehensive items — (1 ) 7 17 23 Net other comprehensive items 588 (2 ) 7 40 633 Balance at December 31, 2017 (1,755 ) (1 ) (50 ) (197 ) (2,003 ) |
Fair Value Measurements and F40
Fair Value Measurements and Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following tables present information about the company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and December 31, 2016 : December 31, Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (In millions) 2017 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 22 $ 22 $ — $ — Bank time deposits 2 2 — — Investments in mutual funds and other similar instruments 13 13 — — Warrants 2 — 2 — Insurance contracts 116 — 116 — Derivative contracts 10 — 10 — Total Assets $ 165 $ 37 $ 128 $ — Liabilities Derivative contracts $ 139 $ — $ 139 $ — Contingent consideration 35 — — 35 Total Liabilities $ 174 $ — $ 139 $ 35 December 31, Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (In millions) 2016 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 65 $ 65 $ — $ — Bank time deposits 2 2 — — Investments in mutual funds and other similar instruments 15 15 — — Warrants 2 — 2 — Insurance contracts 102 — 102 — Derivative contracts 16 — 16 — Total Assets $ 202 $ 82 $ 120 $ — Liabilities Derivative contracts $ 122 $ — $ 122 $ — Contingent consideration 3 — — 3 Total Liabilities $ 125 $ — $ 122 $ 3 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Fair Value – Assets Fair Value – Liabilities December 31, December 31, December 31, December 31, (In millions) 2017 2016 2017 2016 Derivatives Designated as Hedging Instruments Interest rate swaps (a) $ — $ — $ 124 $ 110 Derivatives Not Designated as Hedging Instruments Currency exchange contracts (b) 10 16 15 12 (a) The fair value of the interest rate swaps is included in the consolidated balance sheet under the caption other long-term liabilities. (b) The fair value of the currency exchange contracts is included in the consolidated balance sheet under the captions other current assets or other accrued expenses. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | Gain (Loss) Recognized (In millions) 2017 2016 Derivatives Designated as Fair Value Hedges Interest rate swaps - effective portion $ — $ 21 Interest rate swaps - ineffective portion (5 ) (1 ) Derivatives Not Designated as Hedging Instruments Currency exchange contracts Included in cost of revenues $ (1 ) $ (15 ) Included in other expense, net 92 (99 ) Gains and losses recognized on currency exchange contracts and the effective portion of interest rate swaps are included in the consolidated statement of income together with the corresponding, offsetting losses and gains on the underlying hedged transactions. Gains and losses recognized on the ineffective portion of interest rate swaps are included in other expense, net in the accompanying statement of income. |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying value and fair value of the company’s notes receivable and debt obligations are as follows: December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair (In millions) Value Value Value Value Notes Receivable $ 89 $ 93 $ 56 $ 59 Debt Obligations: Senior notes $ 20,024 $ 20,639 $ 14,838 $ 15,184 Term loan — — 823 825 Commercial paper 960 960 953 953 Other 24 24 13 13 $ 21,008 $ 21,623 $ 16,627 $ 16,975 The fair value of debt obligations was determined based on quoted market prices and on borrowing rates available to the company at the respective period ends which represent level 2 measurements. |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | The carrying value and fair value of the company’s notes receivable and debt obligations are as follows: December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair (In millions) Value Value Value Value Notes Receivable $ 89 $ 93 $ 56 $ 59 Debt Obligations: Senior notes $ 20,024 $ 20,639 $ 14,838 $ 15,184 Term loan — — 823 825 Commercial paper 960 960 953 953 Other 24 24 13 13 $ 21,008 $ 21,623 $ 16,627 $ 16,975 The fair value of debt obligations was determined based on quoted market prices and on borrowing rates available to the company at the respective period ends which represent level 2 measurements. |
Supplemental Cash Flow Inform41
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | (In millions) 2017 2016 2015 Cash Paid For: Interest $ 533 $ 458 $ 438 Income Taxes $ 479 $ 663 $ 477 Non-cash Activities Declared but unpaid dividends $ 61 $ 60 $ 61 Issuance of stock upon vesting of restricted stock units $ 125 $ 127 $ 131 Fair value of investments contributed to defined benefit plans $ — $ 16 $ — |
Restrictions on Cash and Cash Equivalents [Table Text Block] | Cash, cash equivalents and restricted cash is included in the consolidated balance sheet as follows: December 31, December 31, (In millions) 2017 2016 Cash and Cash Equivalents $ 1,335 $ 786 Restricted Cash Included in Other Current Assets 24 18 Restricted Cash Included in Other Assets 2 7 Cash, Cash Equivalents and Restricted Cash $ 1,361 $ 811 |
Restructuring and Other Costs42
Restructuring and Other Costs, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs [Table Text Block] | During 2017 , the company recorded net restructuring and other costs by segment as follows: (In millions) Cost of Selling, Restructuring Total Life Sciences Solutions $ 1 $ 29 $ (16 ) $ 14 Analytical Instruments 31 (2 ) 30 59 Specialty Diagnostics 1 (2 ) 39 38 Laboratory Products and Services 90 61 41 192 Corporate — (8 ) 3 (5 ) $ 123 $ 78 $ 97 $ 298 During 2016, the company recorded net restructuring and other costs by segment as follows: (In millions) Cost of Selling, Restructuring Total Life Sciences Solutions $ 31 $ 36 $ 88 $ 155 Analytical Instruments 63 46 68 177 Specialty Diagnostics — — 15 15 Laboratory Products and Services 8 1 17 26 Corporate — 21 1 22 $ 102 $ 104 $ 189 $ 395 During 2015, the company recorded net restructuring and other costs by segment as follows: (In millions) Cost of Revenues Selling, General and Administrative Expenses Restructuring and Other Costs, Net Total Life Sciences Solutions $ 2 $ 13 $ 65 $ 80 Analytical Instruments — — 27 27 Specialty Diagnostics 1 — 9 10 Laboratory Products and Services 6 6 13 25 Corporate — 27 2 29 $ 9 $ 46 $ 116 $ 171 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the cash components of the company’s restructuring plans. The non-cash components and other amounts reported as restructuring and other costs, net, in the accompanying statement of income have been summarized in the notes to the tables. Accrued restructuring costs are included in other accrued expenses in the accompanying balance sheet. (In millions) Severance Abandonment of Excess Facilities Other (a) Total Balance at December 31, 2014 $ 38 $ 10 $ 6 $ 54 Costs incurred in 2015 (c) 57 19 14 90 Reserves reversed (b) (12 ) (1 ) (2 ) (15 ) Payments (67 ) (15 ) (15 ) (97 ) Currency translation (1 ) — — (1 ) Balance at December 31, 2015 15 13 3 31 Costs incurred in 2016 (d) 109 46 12 167 Reserves reversed (b) (2 ) — (1 ) (3 ) Payments (83 ) (27 ) (12 ) (122 ) Currency translation (1 ) — — (1 ) Balance at December 31, 2016 38 32 2 72 Costs incurred in 2017 (e) 62 27 17 106 Reserves reversed (b) (9 ) — — (9 ) Payments (62 ) (19 ) (12 ) (93 ) Currency translation 1 — (1 ) — Balance at December 31, 2017 $ 30 $ 40 $ 6 $ 76 (a) Other includes cash charges to monetize certain equity awards held by employees of Life Technologies at the date of acquisition, relocation and moving expenses associated with facility consolidations, as well as employee retention costs which are accrued ratably over the period through which employees must work to qualify for a payment. (b) Represents reductions in cost of plans. (c) Excludes $25 million of provision for losses on litigation-related matters; $15 million of impairment of acquired technology in development; a $8 million gain on the sale of a product line; $5 million of cash compensation contractually due to employees of an acquired business on the date of acquisition; $1 million of charges associated with a previous sale of a business; and an aggregate of $1 million of non-cash charges, net. (d) Excludes $24 million of provision for losses on litigation-related matters; $8 million of provision for environmental remediation; $5 million of net gains on the sale of real estate; and an aggregate of $3 million of non-cash income, net. (e) Excludes $27 million of net credits associated with litigation-related matters, and $27 million of other restructuring charges, net, primarily for hurricane response/impairment, charges associated with the settlement/curtailment of retirement plans, and non-cash compensation due at an acquired business. |
Unaudited Quarterly Informati43
Unaudited Quarterly Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | 2017 (In millions except per share amounts) First (a) Second (b) Third (c) Fourth (d) Revenues $ 4,765 $ 4,990 $ 5,116 $ 6,047 Gross Profit 2,192 2,283 2,300 2,670 Net Income 551 612 534 528 Earnings per Share: Basic 1.41 1.57 1.35 1.32 Diluted 1.40 1.56 1.34 1.30 Cash Dividend Declared per Common Share 0.15 0.15 0.15 0.15 Amounts reflect aggregate restructuring and other items, net, as follows: (a) Costs of $86 million . (b) Costs of $30 million . (c) Costs of $131 million . (d) Costs of $51 million . 2016 (In millions except per share amounts) First (a) Second (b) Third (c) Fourth (d) Revenues $ 4,295 $ 4,535 $ 4,491 $ 4,953 Gross Profit 1,958 2,078 2,054 2,279 Net Income 402 517 473 630 Earnings per Share: Basic 1.02 1.31 1.20 1.60 Diluted 1.01 1.30 1.19 1.59 Cash Dividend Declared per Common Share 0.15 0.15 0.15 0.15 Amounts reflect aggregate restructuring and other items, net, as follows: (a) Costs of $90 million . (b) Costs of $57 million . (c) Costs of $150 million . (d) Costs of $98 million . |
Allowance For Doubtful Accounts
Allowance For Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||
Beginning Balance | $ 77 | $ 70 | $ 74 | ||
Provision charged to expense | 32 | [1] | 16 | [1] | 5 |
Accounts written off | (10) | (9) | (4) | ||
Acquisitions, currency translation and other | 10 | (5) | |||
Ending Balance | 109 | 77 | 70 | ||
Selling, General and Administrative Expenses | 78 | 104 | 46 | ||
Laboratory Products and Services [Member] | |||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||
Selling, General and Administrative Expenses | 61 | 1 | 6 | ||
Analytical Instruments [Member] | |||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||
Selling, General and Administrative Expenses | (2) | 46 | $ 0 | ||
Costs to Conform Accounting Policies [Member] | Laboratory Products and Services [Member] | |||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||
Selling, General and Administrative Expenses | $ 6 | ||||
Costs to Conform Accounting Policies [Member] | Analytical Instruments [Member] | |||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||
Selling, General and Administrative Expenses | $ 9 | ||||
[1] | In 2017, includes $6 million of charges to conform the accounting policies of Patheon to the company's accounting policies. In 2016, includes $9 million of charges to conform the accounting policies of FEI to the company's accounting policies. |
Warranty Obligations (Details)
Warranty Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Warranty Obligations [Roll Forward] | ||
Beginning Balance | $ 78 | $ 56 |
Provision charged to income | 110 | 96 |
Usage | (101) | (87) |
Acquisitions | 17 | |
Adjustments to previously provided warranties, net | (4) | (2) |
Currency translation | 4 | (2) |
Ending Balance | $ 87 | $ 78 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 708 | $ 466 |
Work in Process | 505 | 328 |
Finished Goods | 1,758 | 1,419 |
Inventories | 2,971 | 2,213 |
LIFO Method Inventories [Abstract] | ||
Value of inventories maintained using the LIFO method | 219 | 207 |
Excess of estimated replacement cost over stated LIFO value | $ 31 | $ 28 |
Property, Plant and Equipment (
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, at Cost | $ 6,339 | $ 4,416 | |
Less: Accumulated Depreciation and Amortization | 2,292 | 1,838 | |
Property, Plant and Equipment, Net | 4,047 | 2,578 | $ 2,449 |
Depreciation and amortization expense of property, plant and equipment | 439 | 380 | $ 373 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, at Cost | 401 | 306 | |
Buildings and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, at Cost | $ 1,662 | 1,154 | |
Buildings and Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 25 years | ||
Buildings and Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Machinery, Equipment and Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, at Cost | $ 4,276 | $ 2,956 | |
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years |
Acquisition-related Intangible
Acquisition-related Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible Assets [Line Items] | |||
Definite-Lived Intangible Assets, Gross | $ 24,974 | $ 20,332 | |
Accumulated Amortization | (9,564) | (7,704) | |
Definite-Lived Intangible Assets, Net | 15,410 | 12,628 | |
Indefinite-Lived Intangible Assets | 1,274 | 1,341 | |
Acquisition-related Intangible Assets, Gross | 26,248 | 21,673 | |
Acquisition-related Intangible Assets, net of Accumulated Amortization | 16,684 | 13,969 | |
Amortization of Acquisition-related Intangible Assets | $ 1,590 | 1,380 | $ 1,310 |
Minimum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life (in years) | 3 years | ||
Maximum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life (in years) | 20 years | ||
Tradenames [Member] | |||
Intangible Assets [Line Items] | |||
Indefinite-Lived Intangible Assets | $ 1,235 | 1,235 | |
In-Process Research and Development [Member] | |||
Intangible Assets [Line Items] | |||
Indefinite-Lived Intangible Assets | 39 | 106 | |
Customer Relationships [Member] | |||
Intangible Assets [Line Items] | |||
Definite-Lived Intangible Assets, Gross | 17,356 | 13,167 | |
Accumulated Amortization | (5,902) | (4,821) | |
Definite-Lived Intangible Assets, Net | 11,454 | 8,346 | |
Product Technology [Member] | |||
Intangible Assets [Line Items] | |||
Definite-Lived Intangible Assets, Gross | 6,046 | 5,680 | |
Accumulated Amortization | (2,811) | (2,204) | |
Definite-Lived Intangible Assets, Net | 3,235 | 3,476 | |
Tradenames [Member] | |||
Intangible Assets [Line Items] | |||
Definite-Lived Intangible Assets, Gross | 1,538 | 1,452 | |
Accumulated Amortization | (817) | (646) | |
Definite-Lived Intangible Assets, Net | 721 | 806 | |
Other Intangible Assets [Member] | |||
Intangible Assets [Line Items] | |||
Definite-Lived Intangible Assets, Gross | 34 | 33 | |
Accumulated Amortization | (34) | (33) | |
Definite-Lived Intangible Assets, Net | $ 0 | $ 0 |
Acquisition-related Intangibl49
Acquisition-related Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets, Net, Future Amortization Expense [Abstract] | ||
2,018 | $ 1,705 | |
2,019 | 1,698 | |
2,020 | 1,609 | |
2,021 | 1,510 | |
2,022 | 1,383 | |
2023 and Thereafter | 7,505 | |
Definite-Lived Intangible Assets, Net | $ 15,410 | $ 12,628 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 21,328 | $ 18,828 |
Acquisitions | 3,518 | 2,693 |
Finalization of purchase price allocations for prior year acquisitions | 63 | 7 |
Currency translation | 384 | (222) |
Other | (3) | 22 |
Ending balance | 25,290 | 21,328 |
Life Sciences Solutions [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 8,246 | 7,617 |
Acquisitions | 136 | 619 |
Finalization of purchase price allocations for prior year acquisitions | (4) | |
Currency translation | 14 | (3) |
Other | (1) | 13 |
Ending balance | 8,391 | 8,246 |
Analytical Instruments [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 4,686 | 2,703 |
Acquisitions | 99 | 2,059 |
Finalization of purchase price allocations for prior year acquisitions | 68 | |
Currency translation | 174 | (80) |
Other | 4 | |
Ending balance | 5,027 | 4,686 |
Specialty Diagnostics [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 3,659 | 3,771 |
Acquisitions | 27 | 1 |
Currency translation | 171 | (108) |
Other | (1) | (5) |
Ending balance | 3,856 | 3,659 |
Laboratory Products and Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 4,737 | 4,737 |
Acquisitions | 3,256 | 14 |
Finalization of purchase price allocations for prior year acquisitions | (1) | 7 |
Currency translation | 25 | (31) |
Other | (1) | 10 |
Ending balance | $ 8,016 | $ 4,737 |
Additional Accounting Policy an
Additional Accounting Policy and Balance Sheet Disclosures (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||||||||||
Cost Method Investments | $ 32 | $ 37 | $ 32 | $ 37 | |||||||
Foreign Currency Transaction Gain (Loss), before Tax | (31) | 19 | $ (11) | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Income Tax Expense (Benefit) | $ 201 | $ (1) | $ (44) | ||||||||
Diluted Earnings Per Share (in dollars per share) | $ 1.30 | $ 1.34 | $ 1.56 | $ 1.40 | $ 1.59 | $ 1.19 | $ 1.30 | $ 1.01 | $ 5.59 | $ 5.09 | $ 4.92 |
Accounting Standards Update 2016-09 [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Income Tax Expense (Benefit) | $ (65) | ||||||||||
Diluted Earnings Per Share (in dollars per share) | $ 0.16 |
Acquisitions Purchase Price (De
Acquisitions Purchase Price (Details) $ / shares in Units, £ in Millions, $ in Millions | Aug. 29, 2017USD ($)$ / shares | Mar. 02, 2017USD ($) | Feb. 14, 2017USD ($) | Sep. 19, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015GBP (£) | Feb. 28, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014GBP (£) |
Purchase Price | ||||||||||||||
Cash paid | $ 7,276 | $ 5,634 | $ 701 | |||||||||||
Debt Assumed | 488 | 255 | ||||||||||||
Fair Value of Contingent Consideration | 17 | |||||||||||||
Fair Value of Equity Awards Exchanged | 6 | |||||||||||||
Fair Value of Previously Held Interest | 11 | |||||||||||||
Purchase Price Payable | 57 | 15 | 1 | |||||||||||
Cash Acquired | (72) | (447) | (5) | |||||||||||
Total Purchase Price | 7,783 | 5,457 | 697 | |||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Current assets | 1,085 | 783 | 130 | |||||||||||
Property, plant and equipment | 1,292 | 172 | 50 | |||||||||||
Goodwill | 3,518 | 2,756 | 258 | |||||||||||
Other assets | 54 | 80 | 5 | |||||||||||
Deferred tax liabilities | (1,131) | |||||||||||||
Other liabilities assumed | (958) | |||||||||||||
Liabilities assumed | (1,102) | (36) | ||||||||||||
Total Net Assets Acquired | $ 7,783 | $ 5,457 | $ 697 | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (in years) | 16 years | 13 years | 14 years | |||||||||||
Other Information | ||||||||||||||
Purchase Price Paid For Acquisitions Completed In A Prior Year | $ 11 | |||||||||||||
Deferred Tax Liabilities, Undistributed Foreign Earnings | $ 156 | |||||||||||||
In-Process Research and Development [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Indefinite-lived intangible assets | $ 2 | 119 | ||||||||||||
Customer Relationships [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | $ 3,708 | $ 1,561 | $ 235 | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (in years) | 17 years | 16 years | 15 years | |||||||||||
Product Technology [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | $ 96 | $ 1,000 | $ 37 | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (in years) | 9 years | 8 years | 10 years | |||||||||||
Tradenames and other [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | $ 117 | $ 88 | $ 18 | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (in years) | 4 years | 8 years | 10 years | |||||||||||
Patheon N.V. [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business Acquisition, Share Price | $ / shares | $ 35 | |||||||||||||
Purchase Price | ||||||||||||||
Cash paid | $ 6,861 | |||||||||||||
Debt Assumed | 488 | |||||||||||||
Fair Value of Equity Awards Exchanged | 6 | |||||||||||||
Purchase Price Payable | 50 | |||||||||||||
Cash Acquired | (47) | |||||||||||||
Total Purchase Price | 7,358 | |||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Current assets | 1,046 | |||||||||||||
Property, plant and equipment | 1,288 | |||||||||||||
Goodwill | 3,255 | |||||||||||||
Other assets | 54 | |||||||||||||
Deferred tax liabilities | (1,091) | |||||||||||||
Other liabilities assumed | (924) | |||||||||||||
Total Net Assets Acquired | 7,358 | |||||||||||||
Other Information | ||||||||||||||
Revenue Reported by Acquired Entity | $ 1,870 | |||||||||||||
Goodwill, Expected Tax Deductible Amount | 125 | |||||||||||||
Patheon N.V. [Member] | Customer Relationships [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | 3,618 | |||||||||||||
Patheon N.V. [Member] | Tradenames and other [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | $ 112 | |||||||||||||
Core Informatics [Member] | ||||||||||||||
Purchase Price | ||||||||||||||
Cash paid | $ 95 | |||||||||||||
Fair Value of Contingent Consideration | 9 | |||||||||||||
Cash Acquired | (10) | |||||||||||||
Total Purchase Price | 94 | |||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Current assets | 2 | |||||||||||||
Goodwill | 63 | |||||||||||||
Deferred tax liabilities | (4) | |||||||||||||
Other liabilities assumed | (5) | |||||||||||||
Total Net Assets Acquired | 94 | |||||||||||||
Other Information | ||||||||||||||
Revenue Reported by Acquired Entity | $ 10 | |||||||||||||
Goodwill, Expected Tax Deductible Amount | 50 | |||||||||||||
Core Informatics [Member] | Customer Relationships [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | 6 | |||||||||||||
Core Informatics [Member] | Product Technology [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | 29 | |||||||||||||
Core Informatics [Member] | Tradenames and other [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | $ 3 | |||||||||||||
Finesse Solutions, Inc. [Member] | ||||||||||||||
Purchase Price | ||||||||||||||
Cash paid | $ 223 | |||||||||||||
Cash Acquired | (2) | |||||||||||||
Total Purchase Price | 221 | |||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Current assets | 17 | |||||||||||||
Property, plant and equipment | 1 | |||||||||||||
Goodwill | 136 | |||||||||||||
Deferred tax liabilities | (22) | |||||||||||||
Other liabilities assumed | (15) | |||||||||||||
Total Net Assets Acquired | 221 | |||||||||||||
Other Information | ||||||||||||||
Revenue Reported by Acquired Entity | 50 | |||||||||||||
Goodwill, Expected Tax Deductible Amount | 0 | |||||||||||||
Finesse Solutions, Inc. [Member] | In-Process Research and Development [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Indefinite-lived intangible assets | 2 | |||||||||||||
Finesse Solutions, Inc. [Member] | Customer Relationships [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | 68 | |||||||||||||
Finesse Solutions, Inc. [Member] | Product Technology [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | 32 | |||||||||||||
Finesse Solutions, Inc. [Member] | Tradenames and other [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | $ 2 | |||||||||||||
FEI Company [Member] | ||||||||||||||
Purchase Price | ||||||||||||||
Cash paid | $ 4,440 | |||||||||||||
Purchase Price Payable | 11 | |||||||||||||
Cash Acquired | (369) | |||||||||||||
Total Purchase Price | 4,082 | |||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Current assets | 619 | |||||||||||||
Property, plant and equipment | 153 | |||||||||||||
Goodwill | 2,125 | |||||||||||||
Other assets | 72 | |||||||||||||
Liabilities assumed | (825) | |||||||||||||
Total Net Assets Acquired | 4,082 | |||||||||||||
Other Information | ||||||||||||||
Revenue Reported by Acquired Entity | $ 930 | |||||||||||||
Goodwill, Expected Tax Deductible Amount | 65 | |||||||||||||
FEI Company [Member] | In-Process Research and Development [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Indefinite-lived intangible assets | 105 | |||||||||||||
FEI Company [Member] | Customer Relationships [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | 1,051 | |||||||||||||
FEI Company [Member] | Product Technology [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | 740 | |||||||||||||
FEI Company [Member] | Tradenames and other [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | $ 42 | |||||||||||||
Affymetrix, Inc. [Member] | ||||||||||||||
Purchase Price | ||||||||||||||
Cash paid | $ 1,165 | |||||||||||||
Debt Assumed | 254 | |||||||||||||
Purchase Price Payable | 1 | |||||||||||||
Cash Acquired | (78) | |||||||||||||
Total Purchase Price | 1,342 | |||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Current assets | 161 | |||||||||||||
Property, plant and equipment | 19 | |||||||||||||
Goodwill | 615 | |||||||||||||
Other assets | 8 | |||||||||||||
Liabilities assumed | (275) | |||||||||||||
Total Net Assets Acquired | 1,342 | |||||||||||||
Other Information | ||||||||||||||
Revenue Reported by Acquired Entity | 360 | |||||||||||||
Goodwill, Expected Tax Deductible Amount | 0 | |||||||||||||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 156 | |||||||||||||
Affymetrix, Inc. [Member] | In-Process Research and Development [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Indefinite-lived intangible assets | 14 | |||||||||||||
Affymetrix, Inc. [Member] | Customer Relationships [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | 501 | |||||||||||||
Affymetrix, Inc. [Member] | Product Technology [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | 253 | |||||||||||||
Affymetrix, Inc. [Member] | Tradenames and other [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | $ 46 | |||||||||||||
Alfa Aesar [Member] | ||||||||||||||
Purchase Price | ||||||||||||||
Cash paid | $ 393 | £ 257 | ||||||||||||
Cash Acquired | (4) | |||||||||||||
Total Purchase Price | 389 | |||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Current assets | 96 | |||||||||||||
Property, plant and equipment | 39 | |||||||||||||
Goodwill | 125 | |||||||||||||
Other assets | 5 | |||||||||||||
Liabilities assumed | (29) | |||||||||||||
Total Net Assets Acquired | 389 | |||||||||||||
Other Information | ||||||||||||||
Revenue Reported by Acquired Entity | £ | £ 78 | |||||||||||||
Goodwill, Expected Tax Deductible Amount | 41 | |||||||||||||
Alfa Aesar [Member] | Customer Relationships [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | 137 | |||||||||||||
Alfa Aesar [Member] | Tradenames and other [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | $ 16 | |||||||||||||
Advanced Scientifics, Inc. [Member] | ||||||||||||||
Purchase Price | ||||||||||||||
Cash paid | $ 289 | |||||||||||||
Cash Acquired | 0 | |||||||||||||
Total Purchase Price | 289 | |||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Current assets | 29 | |||||||||||||
Property, plant and equipment | 11 | |||||||||||||
Goodwill | 124 | |||||||||||||
Other assets | 0 | |||||||||||||
Liabilities assumed | (4) | |||||||||||||
Total Net Assets Acquired | 289 | |||||||||||||
Other Information | ||||||||||||||
Revenue Reported by Acquired Entity | $ 80 | |||||||||||||
Goodwill, Expected Tax Deductible Amount | 124 | |||||||||||||
Advanced Scientifics, Inc. [Member] | Customer Relationships [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | 90 | |||||||||||||
Advanced Scientifics, Inc. [Member] | Product Technology [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | 37 | |||||||||||||
Advanced Scientifics, Inc. [Member] | Tradenames and other [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | $ 2 | |||||||||||||
Other [Member] | ||||||||||||||
Purchase Price | ||||||||||||||
Cash paid | $ 97 | 29 | 19 | |||||||||||
Debt Assumed | 1 | |||||||||||||
Fair Value of Contingent Consideration | 8 | |||||||||||||
Fair Value of Previously Held Interest | 11 | |||||||||||||
Purchase Price Payable | 7 | 3 | 1 | |||||||||||
Cash Acquired | (13) | (1) | ||||||||||||
Total Purchase Price | 110 | 33 | 19 | |||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Current assets | 20 | 3 | 5 | |||||||||||
Property, plant and equipment | 3 | 0 | ||||||||||||
Goodwill | 64 | 16 | 9 | |||||||||||
Deferred tax liabilities | (14) | |||||||||||||
Other liabilities assumed | (14) | |||||||||||||
Liabilities assumed | (2) | (3) | ||||||||||||
Total Net Assets Acquired | 110 | 33 | 19 | |||||||||||
Other [Member] | Customer Relationships [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | 16 | 9 | $ 8 | |||||||||||
Other [Member] | Product Technology [Member] | ||||||||||||||
Net Assets Acquired [Abstract] | ||||||||||||||
Definite-lived intangible assets | $ 35 | $ 7 |
Acquisition Pro Forma Results (
Acquisition Pro Forma Results (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition, Pro Forma Information [Abstract] | |||
Revenues | $ 22,144 | $ 20,807 | $ 18,230 |
Net Income | 2,258 | 1,791 | 1,684 |
Patheon N.V. [Member] | |||
Business Acquisition, Pro Forma Information [Abstract] | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 722 | ||
Business Combination, Pro Forma Information, Operating Income (Loss) of Acquiree since Acquisition Date, Actual | (108) | ||
Non-recurring Pro Forma Adjustments, Deferred Revenue [Member] | Patheon N.V. [Member] | |||
Business Acquisition, Pro Forma Information [Abstract] | |||
Net Income | 40 | (40) | |
Non-recurring Pro Forma Adjustments, Deferred Revenue [Member] | FEI Company & Affymetrix, Inc. [Member] | |||
Business Acquisition, Pro Forma Information [Abstract] | |||
Net Income | 6 | (6) | |
Non-recurring Pro Forma Adjustments, Fair Value Adjustment to Inventories [Member] | Patheon N.V. [Member] | |||
Business Acquisition, Pro Forma Information [Abstract] | |||
Net Income | 55 | (55) | |
Non-recurring Pro Forma Adjustments, Fair Value Adjustment to Inventories [Member] | FEI Company & Affymetrix, Inc. [Member] | |||
Business Acquisition, Pro Forma Information [Abstract] | |||
Net Income | 99 | (99) | |
Non-recurring Pro Forma Adjustments, Transaction Costs [Member] | Patheon N.V. [Member] | |||
Business Acquisition, Pro Forma Information [Abstract] | |||
Net Income | 54 | (54) | |
Non-recurring Pro Forma Adjustments, Transaction Costs [Member] | FEI Company & Affymetrix, Inc. [Member] | |||
Business Acquisition, Pro Forma Information [Abstract] | |||
Net Income | 102 | (102) | |
Non-recurring Pro Forma Adjustments, Conform Accounting Policies [Member] | Patheon N.V. [Member] | |||
Business Acquisition, Pro Forma Information [Abstract] | |||
Net Income | 39 | (39) | |
Non-recurring Pro Forma Adjustments, Conform Accounting Policies [Member] | FEI Company & Affymetrix, Inc. [Member] | |||
Business Acquisition, Pro Forma Information [Abstract] | |||
Net Income | 33 | (33) | |
Non-recurring Pro Forma Adjustments, Initial Restructuring Charges [Member] | Patheon N.V. [Member] | |||
Business Acquisition, Pro Forma Information [Abstract] | |||
Net Income | $ 21 | (21) | |
Non-recurring Pro Forma Adjustments, Initial Restructuring Charges [Member] | FEI Company & Affymetrix, Inc. [Member] | |||
Business Acquisition, Pro Forma Information [Abstract] | |||
Net Income | $ 46 | $ (46) |
Business Segment Information (D
Business Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jul. 01, 2017USD ($) | Apr. 01, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 01, 2016USD ($) | Jul. 02, 2016USD ($) | Apr. 02, 2016USD ($) | Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Segment Reporting Information [Line Items] | ||||||||||||
Number of Reportable Segments | Segment | 4 | |||||||||||
Revenues | $ 6,047 | $ 5,116 | $ 4,990 | $ 4,765 | $ 4,953 | $ 4,491 | $ 4,535 | $ 4,295 | $ 20,918 | $ 18,274 | $ 16,965 | |
Cost of revenues charges | (123) | (102) | (9) | |||||||||
Selling, general and administrative charges, net | (78) | (104) | (46) | |||||||||
Restructuring and other costs, net | (97) | (189) | (116) | |||||||||
Amortization of acquisition-related intangible assets | (1,590) | (1,380) | (1,310) | |||||||||
Operating Income | 2,968 | 2,449 | 2,336 | |||||||||
Other expense, net | (539) | (425) | (400) | |||||||||
Income from Continuing Operations Before Income Taxes | 2,429 | 2,024 | 1,936 | |||||||||
Depreciation | 439 | 380 | 373 | |||||||||
Total Assets | 56,669 | 45,908 | 56,669 | 45,908 | 40,834 | |||||||
Capital Expenditures | 508 | 444 | 423 | |||||||||
Life Sciences Solutions [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Cost of revenues charges | (1) | (31) | (2) | |||||||||
Selling, general and administrative charges, net | (29) | (36) | (13) | |||||||||
Restructuring and other costs, net | 16 | (88) | (65) | |||||||||
Total Assets | 19,063 | 19,065 | 19,063 | 19,065 | 18,537 | |||||||
Capital Expenditures | 118 | 122 | 93 | |||||||||
Analytical Instruments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Cost of revenues charges | (31) | (63) | 0 | |||||||||
Selling, general and administrative charges, net | 2 | (46) | 0 | |||||||||
Restructuring and other costs, net | (30) | (68) | (27) | |||||||||
Total Assets | 9,960 | 9,520 | 9,960 | 9,520 | 4,763 | |||||||
Capital Expenditures | 56 | 34 | 60 | |||||||||
Specialty Diagnostics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Cost of revenues charges | (1) | (1) | ||||||||||
Selling, general and administrative charges, net | 2 | 0 | 0 | |||||||||
Restructuring and other costs, net | (39) | (15) | (9) | |||||||||
Total Assets | 7,095 | 6,802 | 7,095 | 6,802 | 7,183 | |||||||
Capital Expenditures | 87 | 72 | 76 | |||||||||
Laboratory Products and Services [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Cost of revenues charges | (90) | (8) | (6) | |||||||||
Selling, general and administrative charges, net | (61) | (1) | (6) | |||||||||
Restructuring and other costs, net | (41) | (17) | (13) | |||||||||
Total Assets | 19,181 | 9,405 | 19,181 | 9,405 | 9,614 | |||||||
Capital Expenditures | 178 | 111 | 90 | |||||||||
Corporate and Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Assets | [1] | $ 1,370 | $ 1,116 | 1,370 | 1,116 | 737 | ||||||
Capital Expenditures | 69 | 105 | 104 | |||||||||
Total Reportable Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating Income | [2] | 4,860 | 4,222 | 3,822 | ||||||||
Total Reportable Segments [Member] | Life Sciences Solutions [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 5,728 | 5,317 | 4,774 | |||||||||
Operating Income | [2] | 1,896 | 1,596 | 1,414 | ||||||||
Depreciation | 129 | 142 | 147 | |||||||||
Total Reportable Segments [Member] | Analytical Instruments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 4,821 | 3,668 | 3,208 | |||||||||
Operating Income | [2] | 1,027 | 745 | 613 | ||||||||
Depreciation | 71 | 50 | 39 | |||||||||
Total Reportable Segments [Member] | Specialty Diagnostics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 3,486 | 3,339 | 3,244 | |||||||||
Operating Income | [2] | 930 | 910 | 873 | ||||||||
Depreciation | 72 | 70 | 74 | |||||||||
Total Reportable Segments [Member] | Laboratory Products and Services [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 7,825 | 6,724 | 6,372 | |||||||||
Operating Income | [2] | 1,007 | 971 | 922 | ||||||||
Depreciation | 167 | 118 | 113 | |||||||||
Intersegment Eliminations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | (942) | (774) | (633) | |||||||||
Segment Reconciling Items [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Cost of revenues charges | (123) | (102) | (9) | |||||||||
Selling, general and administrative charges, net | (78) | (104) | (46) | |||||||||
Restructuring and other costs, net | (97) | (189) | (116) | |||||||||
Amortization of acquisition-related intangible assets | $ (1,594) | $ (1,378) | $ (1,315) | |||||||||
[1] | Corporate assets consist primarily of cash and cash equivalents, short-term investments, property and equipment at the company's corporate offices. | |||||||||||
[2] | Represents operating income before certain charges to cost of revenues and selling, general and administrative expenses; restructuring and other costs, net; and amortization of acquisition-related intangibles. |
Geographical Information (Detai
Geographical Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Revenues | $ 6,047 | $ 5,116 | $ 4,990 | $ 4,765 | $ 4,953 | $ 4,491 | $ 4,535 | $ 4,295 | $ 20,918 | $ 18,274 | $ 16,965 | |
Long-lived Assets | 4,047 | 2,578 | 4,047 | 2,578 | 2,449 | |||||||
United States | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Revenues | [1] | 10,177 | 9,086 | 8,607 | ||||||||
Long-lived Assets | 2,349 | 1,630 | 2,349 | 1,630 | 1,532 | |||||||
China | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Revenues | [1] | 2,058 | 1,730 | 1,376 | ||||||||
United Kingdom | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Long-lived Assets | 277 | 217 | 277 | 217 | 261 | |||||||
All Other Countries | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Revenues | [1] | 8,683 | 7,458 | 6,982 | ||||||||
Long-lived Assets | $ 1,421 | $ 731 | $ 1,421 | $ 731 | $ 656 | |||||||
[1] | Revenues are attributed to countries based on customer location. |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment [Line Items] | |||
Interest Income | $ 81 | $ 48 | $ 31 |
Interest Expense | (592) | (469) | (415) |
Other Items, Net | (28) | (4) | (16) |
Other Expense, Net | (539) | (425) | (400) |
Fees Associated with Short-term Financing Commitments | 32 | 22 | |
Costs associated with entering into interest rate swap arrangements | 7 | ||
Losses on Extinguishment of Debt | 4 | 9 | $ 12 |
Gain on Sale of Investments | $ 17 | 13 | |
Joint Venture [Member] | |||
Investment [Line Items] | |||
Gain on Sale of Investments | 8 | ||
Proceeds from Divestiture of Interest in Joint Venture | $ 65 |
Stockbased Compensation Expen57
Stockbased Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Option Awards | $ 53 | $ 41 | $ 44 |
Restricted Unit Awards | 106 | 92 | 81 |
Stock-based Compensation Expense | 159 | 133 | 125 |
Excess tax benefits from stock-based compensation recorded as a reduction of the income tax provision | 65 | ||
Excess income tax benefits from stock-based compensation plans recognized in equity | $ 53 | $ 63 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized Compensation Costs On Nonvested Awards | $ 99 | ||
Unrecognized Compensation Costs On Nonvested Awards, Weighted Average Period Of Recognition | 2 years 7 months | ||
Employee Stock Option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized Compensation Costs on Nonvested Awards, Period of Recognition | 4 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized Compensation Costs On Nonvested Awards | $ 147 | ||
Unrecognized Compensation Costs On Nonvested Awards, Weighted Average Period Of Recognition | 2 years | ||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized Compensation Costs on Nonvested Awards, Period of Recognition | 4 years |
Stockbased Compensation, Stock
Stockbased Compensation, Stock Option Disclosures (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected Stock Price Volatility | 20.00% | 21.00% | 24.00% | |
Risk Free Interest Rate | 1.90% | 1.20% | 1.40% | |
Expected Life of Options (years) | 4 years 4 months | 4 years 4 months | 4 years 4 months | |
Expected Annual Dividend | 0.40% | 0.50% | 0.50% | |
Weighted Average Grant Date Fair Value of Options Granted in Period (in dollars per share) | $ 30.73 | $ 24.54 | $ 27.04 | |
Total Intrinsic Value of Options Exercised in Period | $ 199 | $ 176 | $ 181 | |
Options Outstanding [Roll Forward] | ||||
Options Outstanding, Beginning Balance | 8.8 | |||
Granted | 2.6 | |||
Issued in connection with an acquisition | 0.3 | |||
Exercised | (2.2) | |||
Canceled / Expired | (0.5) | |||
Options Outstanding, Ending Balance | 9 | 8.8 | ||
Options, Additional Disclosures [Abstract] | ||||
Options Outstanding, Weighted Average Exercise Price, Beginning of Period (in dollars per share) | $ 98.69 | |||
Grants in Period, Weighted Average Exercise Price (in dollars per share) | 167.59 | |||
Issued in Connection with an Acquisition in Period, Weighted Average Exercise Price | 114.06 | |||
Exercises in Period, Weighted Average Exercise Price (in dollars per share) | 79.16 | |||
Canceled / Expired in Period, Weighted Average Exercise Price (in dollars per share) | 134.56 | |||
Options Outstanding, Weighted Average Exercise Price, End of Period (in dollars per share) | $ 121.78 | $ 98.69 | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 4 years 2 months | |||
Options Vested and Unvested Expected to Vest | 8.5 | |||
Options Vested and Unvested Expected to Vest, Weighted Average Exercise Price (in dollars per share) | $ 119.92 | |||
Options Vested and Unvested Expected to Vest, Weighted Average Remaining Contractual Term | 4 years 1 month | |||
Options Vested and Unvested Expected to Vest, Aggregate Intrinsic Value | [1] | $ 597 | ||
Options Exercisable | 4.1 | |||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 90.31 | |||
Options Exercisable, Weighted Average Remaining Contractual Term | 2 years 7 months | |||
Options Exercisable, Intrinsic Value | [1] | $ 413 | ||
Common Stock, Market Value Per Share | $ 189.88 | |||
Minimum [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award Requisite Service Period | 3 years | |||
Option Term | 7 years | |||
Maximum [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award Requisite Service Period | 5 years | |||
Option Term | 10 years | |||
[1] | Market price per share on December 31, 2017 was $189.88. The intrinsic value is zero for options with exercise prices above the market price. |
Stockbased Compensation, Restri
Stockbased Compensation, Restricted Units Disclosures (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Unvested Restricted Units [Roll Forward] | |||
Unvested Restricted Units, Beginning Balance | 1.3 | ||
Granted | 0.8 | ||
Issued in connection with an acquisition | 0.2 | ||
Vested | (0.7) | ||
Forfeited | (0.2) | ||
Unvested Restricted Units, Ending Balance | 1.4 | 1.3 | |
Restricted Units, Additional Disclosures [Abstract] | |||
Unvested Restricted Units, Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ 129.80 | ||
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 157.80 | ||
Issued in Connection with an Acquisition, Weighted Average Grant Date Fair Value (in dollars per share) | 180.52 | ||
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 132.67 | ||
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | 138.44 | ||
Unvested Restricted Units, Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ 150.23 | $ 129.80 | |
Fair Value of Units Vested | $ 97 | $ 91 | $ 80 |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award Requisite Service Period | 3 years | ||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award Requisite Service Period | 4 years |
Employee Stock Purchase Plans (
Employee Stock Purchase Plans (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Purchase Price (% of Market Price on Purchase Date) | 95.00% | ||
Maximum Employee Subscription Rate (% of Gross Wages) | 10.00% | ||
Stock Issued During Period, Employee Stock Purchase Plans (in shares) | 0.1 | 0.2 | 0.2 |
Pensions DC Plans (Details)
Pensions DC Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan [Abstract] | |||
Defined Contribution Plan, Cost | $ 161 | $ 140 | $ 131 |
Pensions Funded Status (Details
Pensions Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Cash contributions to retirement plans | $ 200 | $ 43 | $ 38 |
Fair value of investments contributed to defined benefit plans | 16 | ||
Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated Employer Contributions in Next Fiscal Year | 35 | ||
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated Employer Contributions in Next Fiscal Year | 65 | ||
Pension Plans, Defined Benefit [Member] | United States | |||
Change in Projected Benefit Obligation [Roll Forward] | |||
Benefit Obligation at Beginning of Year | 1,249 | 1,213 | |
Business combinations | 33 | ||
Interest costs | 43 | 51 | 50 |
Actuarial (gains) losses | 92 | 30 | |
Benefits paid | (84) | (78) | |
Benefit Obligation at End of Year | 1,300 | 1,249 | 1,213 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair Value of Plan Assets at Beginning of Year | 944 | 945 | |
Actual return on plan assets | 161 | 71 | |
Employer contribution | 160 | 6 | |
Benefits paid | (84) | (78) | |
Fair Value of Plan Assets at End of Year | 1,181 | 944 | 945 |
Funded Status | (119) | (305) | |
Accumulated Benefit Obligation | 1,300 | 1,249 | |
Amounts Recognized in Balance Sheet [Abstract] | |||
Current liability | (7) | (10) | |
Non-current liability | (112) | (295) | |
Net amount recognized | (119) | (305) | |
Amounts Recognized in Accumulated Other Comprehensive Loss [Abstract] | |||
Net actuarial loss | 156 | 171 | |
Net amount recognized | $ 156 | $ 171 | |
Weighted Average Assumptions Used to Determine Benefit Obligation [Abstract] | |||
Discount rate | 3.55% | 4.07% | |
Average rate of increase in employee compensation | 4.00% | 4.00% | |
Pension Plans, Defined Benefit [Member] | Foreign Plan [Member] | |||
Change in Projected Benefit Obligation [Roll Forward] | |||
Benefit Obligation at Beginning of Year | $ 1,116 | $ 1,036 | |
Business combinations | 185 | 1 | |
Service costs | 26 | 24 | 25 |
Interest costs | 21 | 27 | 28 |
Settlements | (60) | (8) | |
Plan participants' contributions | 5 | 4 | |
Actuarial (gains) losses | (34) | 150 | |
Benefits paid | (37) | (30) | |
Currency translation and other | 102 | (88) | |
Benefit Obligation at End of Year | 1,324 | 1,116 | 1,036 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair Value of Plan Assets at Beginning of Year | 853 | 817 | |
Business combinations | 101 | ||
Actual return on plan assets | 32 | 125 | |
Employer contribution | 37 | 50 | |
Settlements | (60) | (8) | |
Plan participants' contributions | 5 | 4 | |
Benefits paid | (37) | (30) | |
Currency translation and other | 80 | (105) | |
Fair Value of Plan Assets at End of Year | 1,011 | 853 | 817 |
Funded Status | (313) | (263) | |
Accumulated Benefit Obligation | 1,256 | 1,048 | |
Amounts Recognized in Balance Sheet [Abstract] | |||
Non-current asset | 100 | 63 | |
Current liability | (10) | (6) | |
Non-current liability | (403) | (320) | |
Net amount recognized | (313) | (263) | |
Amounts Recognized in Accumulated Other Comprehensive Loss [Abstract] | |||
Net actuarial loss | 126 | 170 | |
Prior service credits | 10 | 8 | |
Net amount recognized | $ 136 | $ 178 | |
Weighted Average Assumptions Used to Determine Benefit Obligation [Abstract] | |||
Discount rate | 2.10% | 1.95% | |
Average rate of increase in employee compensation | 2.59% | 3.09% | |
Postretirement Benefits [Member] | |||
Change in Projected Benefit Obligation [Roll Forward] | |||
Benefit Obligation at Beginning of Year | $ 50 | $ 49 | |
Business combinations | 6 | ||
Service costs | 1 | 1 | |
Interest costs | 2 | 2 | |
Plan participants' contributions | 1 | 1 | |
Actuarial (gains) losses | 6 | 1 | |
Benefits paid | (4) | (4) | |
Currency translation and other | 1 | ||
Benefit Obligation at End of Year | 63 | 50 | 49 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair Value of Plan Assets at Beginning of Year | 8 | 7 | |
Actual return on plan assets | 1 | 1 | |
Employer contribution | 3 | 3 | |
Plan participants' contributions | 1 | 1 | |
Benefits paid | (4) | (4) | |
Fair Value of Plan Assets at End of Year | 9 | 8 | $ 7 |
Funded Status | (54) | (42) | |
Amounts Recognized in Balance Sheet [Abstract] | |||
Non-current asset | 6 | 4 | |
Current liability | (3) | (3) | |
Non-current liability | (57) | (43) | |
Net amount recognized | (54) | (42) | |
Amounts Recognized in Accumulated Other Comprehensive Loss [Abstract] | |||
Net actuarial loss | 11 | 6 | |
Net amount recognized | $ 11 | $ 6 | |
Weighted Average Assumptions Used to Determine Benefit Obligation [Abstract] | |||
Discount rate | 3.43% | 3.77% | |
Initial healthcare cost trend rate | 6.73% | 6.70% | |
Ultimate healthcare cost trend rate | 5.04% | 5.08% | |
Postretirement Benefits [Member] | Minimum [Member] | |||
Weighted Average Assumptions Used to Determine Benefit Obligation [Abstract] | |||
Year that Healthcare Cost Rate Reaches Ultimate Trend Rate | 2,018 | ||
Postretirement Benefits [Member] | Maximum [Member] | |||
Weighted Average Assumptions Used to Determine Benefit Obligation [Abstract] | |||
Year that Healthcare Cost Rate Reaches Ultimate Trend Rate | 2,033 |
Pensions Net Benefit Cost (Deta
Pensions Net Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plans, Defined Benefit [Member] | United States | |||
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost (Income) [Abstract] | |||
Discount rate | 4.06% | 4.25% | 4.00% |
Average rate of increase in employee compensation | 4.00% | 4.00% | 4.00% |
Expected long-term rate of return on assets | 6.50% | 7.00% | 7.00% |
Components of Net Periodic Benefit Cost (Income) [Abstract] | |||
Interest cost on benefit obligation | $ 43 | $ 51 | $ 50 |
Expected return on plan assets | (56) | (49) | (54) |
Amortization of actuarial net loss | 2 | ||
Settlement/curtailment loss (gain) | 1 | ||
Net periodic benefit cost (income) | $ (10) | $ 2 | $ (4) |
Pension Plans, Defined Benefit [Member] | Foreign Plan [Member] | |||
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost (Income) [Abstract] | |||
Discount rate | 1.95% | 2.83% | 2.69% |
Average rate of increase in employee compensation | 3.10% | 3.06% | 3.03% |
Expected long-term rate of return on assets | 3.11% | 3.74% | 4.21% |
Components of Net Periodic Benefit Cost (Income) [Abstract] | |||
Service cost-benefits earned | $ 26 | $ 24 | $ 25 |
Interest cost on benefit obligation | 21 | 27 | 28 |
Expected return on plan assets | (29) | (28) | (33) |
Amortization of actuarial net loss | 9 | 7 | 9 |
Settlement/curtailment loss (gain) | 5 | 1 | |
Special termination benefits | 1 | ||
Net periodic benefit cost (income) | 32 | 30 | $ 31 |
Postretirement Benefits [Member] | |||
Components of Net Periodic Benefit Cost (Income) [Abstract] | |||
Service cost-benefits earned | 1 | 1 | |
Interest cost on benefit obligation | $ 2 | $ 2 |
Pensions Benefit Obligation in
Pensions Benefit Obligation in Excess of Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan, Plan with Benefit Obligation in Excess of Plan Assets [Abstract] | ||
Projected benefit obligation | $ 2,059 | $ 1,907 |
Fair value of plan assets | 1,527 | 1,276 |
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | ||
Accumulated benefit obligation | 1,962 | 1,847 |
Fair value of plan assets | $ 1,495 | $ 1,275 |
Pension Expected Benefit Paymen
Pension Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2017USD ($) |
Pension Plans, Defined Benefit [Member] | United States | |
Defined Benefit Plan, Expected Future Benefit Payments [Abstract] | |
2,018 | $ 87 |
2,019 | 84 |
2,020 | 83 |
2,021 | 85 |
2,022 | 82 |
2023-2027 | 394 |
Pension Plans, Defined Benefit [Member] | Foreign Plan [Member] | |
Defined Benefit Plan, Expected Future Benefit Payments [Abstract] | |
2,018 | 46 |
2,019 | 37 |
2,020 | 39 |
2,021 | 41 |
2,022 | 43 |
2023-2027 | 250 |
Postretirement Benefits [Member] | |
Defined Benefit Plan, Expected Future Benefit Payments [Abstract] | |
2,018 | 3 |
2,019 | 3 |
2,020 | 3 |
2,021 | 3 |
2,022 | 3 |
2023-2027 | $ 16 |
Pensions FV Assets (Details)
Pensions FV Assets (Details) - Pension Plans, Defined Benefit [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 1,181 | $ 944 | $ 945 | |
Net Asset Value Excluded From Fair Value By Input | [1] | $ 1,181 | 944 | |
United States | U.S. Equity Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 10.00% | |||
Fair Value of Plan Assets | $ 163 | 259 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | $ 163 | 259 | |
United States | International Equity Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 10.00% | |||
Fair Value of Plan Assets | $ 180 | 229 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | $ 180 | 229 | |
United States | Fixed Income Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 80.00% | |||
Fair Value of Plan Assets | $ 761 | 437 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 761 | 437 | |
United States | Private Equity Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 2 | 2 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 2 | 2 | |
United States | Money Market Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 75 | 17 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | $ 75 | 17 | |
United States | Maximum [Member] | Private Equity Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 1.00% | |||
Foreign Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 1,011 | 853 | $ 817 | |
Net Asset Value Excluded From Fair Value By Input | [1] | 769 | 595 | |
Foreign Plan [Member] | Quoted Prices in Active Markets (Level I) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 40 | 81 | ||
Foreign Plan [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 202 | 177 | ||
Foreign Plan [Member] | Fixed Income Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 312 | 294 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 312 | 274 | |
Foreign Plan [Member] | Fixed Income Funds [Member] | Quoted Prices in Active Markets (Level I) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 20 | |||
Foreign Plan [Member] | Equity Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 75 | 123 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 75 | 67 | |
Foreign Plan [Member] | Equity Funds [Member] | Quoted Prices in Active Markets (Level I) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 56 | |||
Foreign Plan [Member] | Hedge Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 77 | 80 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 77 | 80 | |
Foreign Plan [Member] | Multi-asset Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 79 | 12 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 79 | 12 | |
Foreign Plan [Member] | Alternative Investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 17 | |||
Net Asset Value Excluded From Fair Value By Input | [1] | 17 | ||
Foreign Plan [Member] | Derivative Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 194 | 158 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 194 | 158 | |
Foreign Plan [Member] | Insurance Contracts [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 202 | 177 | ||
Foreign Plan [Member] | Insurance Contracts [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 202 | 177 | ||
Foreign Plan [Member] | Cash / Money Market Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 55 | 9 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 15 | 4 | |
Foreign Plan [Member] | Cash / Money Market Funds [Member] | Quoted Prices in Active Markets (Level I) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 40 | $ 5 | ||
Foreign Plan [Member] | Minimum [Member] | Fixed Income Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | |||
Foreign Plan [Member] | Minimum [Member] | Equity Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | |||
Foreign Plan [Member] | Minimum [Member] | Hedge Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | |||
Foreign Plan [Member] | Minimum [Member] | Multi-asset Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | |||
Foreign Plan [Member] | Minimum [Member] | Alternative Investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | |||
Foreign Plan [Member] | Minimum [Member] | Derivative Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | |||
Foreign Plan [Member] | Maximum [Member] | Fixed Income Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | |||
Foreign Plan [Member] | Maximum [Member] | Equity Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 25.00% | |||
Foreign Plan [Member] | Maximum [Member] | Hedge Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 20.00% | |||
Foreign Plan [Member] | Maximum [Member] | Multi-asset Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 45.00% | |||
Foreign Plan [Member] | Maximum [Member] | Alternative Investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 15.00% | |||
Foreign Plan [Member] | Maximum [Member] | Derivative Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 22.00% | |||
[1] | Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Income Taxes Components (Detail
Income Taxes Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of Income From Continuing Operations Before Income Taxes [Abstract] | |||
U.S. | $ 655 | $ 493 | $ 851 |
Non-U.S. | 1,774 | 1,531 | 1,085 |
Income from Continuing Operations Before Income Taxes | 2,429 | 2,024 | 1,936 |
Current Income Tax Provision [Abstract] | |||
Federal | 1,259 | 280 | 184 |
Non-U.S. | 576 | 349 | 363 |
State | 62 | 9 | 9 |
Total Current Income Tax Provision | 1,897 | 638 | 556 |
Deferred Income Tax Provision (Benefit) [Abstract] | |||
Federal | (1,437) | (510) | (297) |
Non-U.S. | (271) | (104) | (288) |
State | 12 | (25) | (15) |
Total Deferred Income Tax Provision (Benefit) | (1,696) | (639) | (600) |
Provision for (benefit from) income taxes | $ 201 | (1) | (44) |
Excess income tax benefits from stock-based compensation plans recognized in equity | $ 53 | $ 63 |
Income Taxes Rate Reconciliatio
Income Taxes Rate Reconciliation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Apr. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Reconciliation [Line Items] | |||||
Tax Cuts And Jobs Act of 2017, Transition Tax | $ 1,250 | ||||
Tax Cuts And Jobs Act of 2017, Remeasurement of Deferred Taxes due to Change In Tax Rate | (1,060) | ||||
Tax Cuts And Jobs Act of 2017, Income Tax Expense (Benefit) | $ 204 | ||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||
Federal Statutory Income Tax Rate | 35.00% | 35.00% | 35.00% | ||
Provision for Income Taxes at Statutory Rate | $ 850 | $ 708 | $ 678 | ||
Foreign rate differential | (380) | (322) | (275) | ||
Foreign exchange loss on inter-company debt refinancing | (237) | ||||
Income tax credits | (273) | (318) | (316) | ||
Manufacturing deduction | (42) | (38) | (38) | ||
Withholding taxes | 55 | ||||
Singapore tax holiday | (25) | (23) | (21) | ||
Impact of change in tax laws and apportionment on deferred taxes | (1,121) | 2 | (38) | ||
Transition tax | 1,250 | ||||
Provision of tax reserves, net | 99 | 12 | 18 | ||
Excess tax benefits from stock options and restricted stock units | (65) | ||||
Tax return reassessments and settlements | 8 | (41) | (54) | ||
Other, net | 82 | 19 | 2 | ||
Provision for (benefit from) income taxes | 201 | (1) | (44) | ||
US foreign tax credits generated by repatriation of foreign earnings | 86 | 91 | 111 | ||
US Income taxes on repatriated foreign earnings | 53 | 37 | 46 | ||
Income Tax Holiday [Line Items] | |||||
Change in Enacted Tax Rate, Amount | $ (1,121) | $ 2 | $ (38) | ||
Scenario, Forecast [Member] | |||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||
Federal Statutory Income Tax Rate | 21.00% | ||||
Singapore | |||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||
Impact of change in tax laws and apportionment on deferred taxes | $ (65) | ||||
Income Tax Holiday [Line Items] | |||||
Income Tax Holiday, Termination Date | 12/31/2026 | ||||
Effective Income Tax Rate Reconciliation, Tax Holiday, Percent | 1.00% | 1.10% | 1.10% | ||
Income Tax Holiday, Income Tax Benefits Per Share | $ 0.06 | $ 0.06 | $ 0.05 | ||
Change in Enacted Tax Rate, Amount | $ (65) | ||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Per Diluted Share | $ 0.16 | ||||
Credits Generated Due To Tax Planning Initiatives, Sweden [Member] | |||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||
US foreign tax credits generated by repatriation of foreign earnings | $ 20 | $ 100 | $ 80 |
Income Taxes Deferred Taxes (De
Income Taxes Deferred Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Tax Assets (Liabilities) [Abstract] | |||||
Depreciation and amortization | $ (3,957) | $ (4,219) | |||
Net operating loss and credit carryforwards | 1,150 | 1,453 | |||
Reserves and accruals | 139 | 192 | |||
Accrued compensation | 265 | 372 | |||
Foreign undistributed earnings | (156) | ||||
Inventory basis difference | 81 | 110 | |||
Other capitalized costs | 61 | 84 | |||
Unrealized losses on hedging instruments | 125 | 36 | |||
Other, net | 126 | 66 | |||
Deferred tax assets (liabilities), net before valuation allowance | (2,010) | (2,062) | |||
Valuation Allowance | $ 113 | $ 109 | $ 116 | 256 | 113 |
Deferred tax assets (liabilities), net | $ (2,266) | $ (2,175) | |||
Valuation Allowance [Roll Forward] | |||||
Beginning Balance | 113 | 109 | 116 | ||
Additions charged to income tax provision | 28 | ||||
Additions due to acquisitions | 108 | 25 | |||
Increase (decrease) from currency translation and other | 7 | (21) | (7) | ||
Ending Balance | $ 256 | $ 113 | $ 109 |
Income Taxes Loss Carryforwards
Income Taxes Loss Carryforwards (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Undistributed Earnings of Foreign Subsidiaries | $ 13,210 |
Federal and State [Member] | Minimum [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2018 |
Federal and State [Member] | Maximum [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2037 |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards | $ 195 |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards | 1,860 |
Non- U.S. [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards | 4,090 |
Portion of Non- U.S. with expiration dates [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Loss Carryforwards | $ 1,430 |
Portion of Non- U.S. with expiration dates [Member] | Minimum [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2018 |
Portion of Non- U.S. with expiration dates [Member] | Maximum [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2037 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at beginning of year | $ 802 | $ 350 | $ 214 |
Additions due to acquisitions | 31 | 54 | |
Additions for tax positions of current year | 565 | 342 | 14 |
Additions for tax positions of prior years | 51 | 94 | 121 |
Closure of tax years | (28) | (5) | |
Settlements | 40 | 10 | (6) |
Balance at end of year | 1,409 | 802 | 350 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 31 | 24 | |
IRS [Member] | |||
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 10 | ||
Tax Cuts and Jobs Act of 2017, Uncertain Tax Positions [Member] | |||
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Additions for tax positions of current year | 511 | ||
Tax Planning Related To Prior Years [Member] | |||
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Additions for tax positions of prior years | 43 | ||
Foreign Tax Positions [Member] | |||
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Additions for tax positions of current year | 54 | ||
Additions for tax positions of prior years | 35 | ||
Foreign Exchange Loss On Refinancing Long-term Intercompany Debt [Member] | |||
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Additions for tax positions of prior years | $ 43 | ||
Utilization of Deferred Tax Assets [Member] | |||
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Additions for tax positions of prior years | $ 14 | 70 | |
Foreign Net Operating Losses [Member] | |||
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Additions for tax positions of prior years | $ 28 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Income from Continuing Operations | $ 2,228 | $ 2,025 | $ 1,980 | ||||||||
Loss from Discontinued Operations | (3) | (3) | (5) | ||||||||
Net Income | $ 528 | $ 534 | $ 612 | $ 551 | $ 630 | $ 473 | $ 517 | $ 402 | $ 2,225 | $ 2,022 | $ 1,975 |
Basic Weighted Average Shares | 395 | 395 | 399 | ||||||||
Effect of Stock Options and Restricted Units | 3 | 2 | 3 | ||||||||
Diluted Weighted Average Shares | 398 | 397 | 402 | ||||||||
Basic Earnings per Share: | |||||||||||
Continuing operations (in dollars per share) | $ 5.65 | $ 5.13 | $ 4.97 | ||||||||
Discontinued operations (in dollars per share) | (0.01) | (0.01) | (0.01) | ||||||||
Basic Earnings Per Share (in dollars per share) | $ 1.32 | $ 1.35 | $ 1.57 | $ 1.41 | $ 1.60 | $ 1.20 | $ 1.31 | $ 1.02 | 5.64 | 5.12 | 4.96 |
Diluted Earnings per Share: | |||||||||||
Continuing operations (in dollars per share) | 5.60 | 5.10 | 4.93 | ||||||||
Discontinued operations (in dollars per share) | (0.01) | (0.01) | (0.01) | ||||||||
Diluted Earnings Per Share (in dollars per share) | $ 1.30 | $ 1.34 | $ 1.56 | $ 1.40 | $ 1.59 | $ 1.19 | $ 1.30 | $ 1.01 | $ 5.59 | $ 5.09 | $ 4.92 |
Employee Stock Option [Member] | |||||||||||
Diluted Earnings per Share: | |||||||||||
Antidilutive Stock Options Excluded From Computation Of Earnings Per Share | 2 | 2 | 3 |
Debt Outstanding Debt (Details)
Debt Outstanding Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Total Borrowings at Par Value | $ 21,175 | $ 16,701 |
Fair Value Hedge Accounting Adjustments | (70) | (50) |
Unamortized (Discount) Premium, Net | (2) | 52 |
Unamortized Debt Issuance Costs | (95) | (76) |
Total Borrowings at Carrying Value | 21,008 | 16,627 |
Less: Short-term Obligations and Current Maturities | 2,135 | 1,255 |
Long-term Obligations | $ 18,873 | 15,372 |
Commercial Paper Programs [Member] | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | (0.26%) | |
Total Borrowings at Par Value | $ 960 | 953 |
Total Borrowings at Carrying Value | 960 | 953 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total Borrowings at Par Value | 825 | |
Total Borrowings at Carrying Value | 823 | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total Borrowings at Carrying Value | $ 20,024 | 14,838 |
Debt Instrument, Call Feature | Each of the notes may be redeemed at a redemption price of 100% of the principal amount plus a specified make-whole premium plus accrued interest. | |
Senior Notes [Member] | 1.85% 5-Year Senior Notes, Due 1/15/2018 [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 1.85% | |
Debt Instrument, Term | 5 years | |
Debt Instrument, Maturity Date | Jan. 15, 2018 | |
Total Borrowings at Par Value | 500 | |
Senior Notes [Member] | Floating Rate 2-Year Senior Notes, Due 8/9/2018 (euro-denominated) [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 2 years | |
Debt Instrument, Maturity Date | Aug. 9, 2018 | |
Effective Interest Rate | 0.37% | |
Total Borrowings at Par Value | $ 721 | 631 |
Senior Notes [Member] | 2.15% 3-Year Senior Notes, Due 12/14/2018 [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 2.15% | |
Debt Instrument, Term | 3 years | |
Debt Instrument, Maturity Date | Dec. 14, 2018 | |
Effective Interest Rate | 2.35% | |
Total Borrowings at Par Value | $ 450 | 450 |
Senior Notes [Member] | 2.40% 5-Year Senior Notes, Due 2/1/2019 [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 2.40% | |
Debt Instrument, Term | 5 years | |
Debt Instrument, Maturity Date | Feb. 1, 2019 | |
Effective Interest Rate | 2.59% | |
Total Borrowings at Par Value | $ 900 | 900 |
Senior Notes [Member] | Floating Rate 2-Year Senior Notes, Due 7/24/2019 (euro-denominated) [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 2 years | |
Debt Instrument, Maturity Date | Jul. 24, 2019 | |
Effective Interest Rate | 0.10% | |
Total Borrowings at Par Value | $ 600 | |
Senior Notes [Member] | 6.00% 10-Year Senior Notes, Due 3/1/2020 [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 6.00% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | Mar. 1, 2020 | |
Effective Interest Rate | 2.97% | |
Total Borrowings at Par Value | $ 750 | 750 |
Senior Notes [Member] | 4.70% 10-Year Senior Notes, Due 5/1/2020 [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 4.70% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | May 1, 2020 | |
Effective Interest Rate | 4.23% | |
Total Borrowings at Par Value | $ 300 | 300 |
Senior Notes [Member] | 1.50% 5-Year Senior Notes, Due 12/1/2020 (euro-denominated) [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 1.50% | |
Debt Instrument, Term | 5 years | |
Debt Instrument, Maturity Date | Dec. 1, 2020 | |
Effective Interest Rate | 1.62% | |
Total Borrowings at Par Value | $ 510 | 447 |
Senior Notes [Member] | 5.00% 10-Year Senior Notes, Due 1/15/2021 [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 5.00% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | Jan. 15, 2021 | |
Effective Interest Rate | 3.24% | |
Total Borrowings at Par Value | $ 400 | 400 |
Senior Notes [Member] | 4.50% 10-Year Senior Notes, Due 3/1/2021 [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 4.50% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | Mar. 1, 2021 | |
Effective Interest Rate | 5.37% | |
Total Borrowings at Par Value | $ 1,000 | 1,000 |
Senior Notes [Member] | 3.60% 10-Year Senior Notes, Due 8/15/2021 [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 3.60% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | Aug. 15, 2021 | |
Effective Interest Rate | 5.19% | |
Total Borrowings at Par Value | $ 1,100 | 1,100 |
Senior Notes [Member] | 3.30% 7-Year Senior Notes, Due 2/15/2022 [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 3.30% | |
Debt Instrument, Term | 7 years | |
Debt Instrument, Maturity Date | Feb. 15, 2022 | |
Effective Interest Rate | 3.43% | |
Total Borrowings at Par Value | $ 800 | 800 |
Senior Notes [Member] | 2.15% 7-Year Senior Notes, Due 7/21/2022 (euro-denominated) [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 2.15% | |
Debt Instrument, Term | 7 years | |
Debt Instrument, Maturity Date | Jul. 21, 2022 | |
Effective Interest Rate | 2.28% | |
Total Borrowings at Par Value | $ 600 | 526 |
Senior Notes [Member] | 3.15% 10-Year Senior Notes, Due 1/15/2023 [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 3.15% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | Jan. 15, 2023 | |
Effective Interest Rate | 3.31% | |
Total Borrowings at Par Value | $ 800 | 800 |
Senior Notes [Member] | 3.00% 7-Year Senior Notes, Due 4/15/2023 [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 3.00% | |
Debt Instrument, Term | 7 years | |
Debt Instrument, Maturity Date | Apr. 15, 2023 | |
Effective Interest Rate | 5.42% | |
Total Borrowings at Par Value | $ 1,000 | 1,000 |
Senior Notes [Member] | 4.15% 10-Year Senior Notes, Due 2/1/2024 [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 4.15% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | Feb. 1, 2024 | |
Effective Interest Rate | 4.16% | |
Total Borrowings at Par Value | $ 1,000 | 1,000 |
Senior Notes [Member] | 0.75% 8-Year Senior Notes, Due 9/12/2024 (euro-denominated) [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 0.75% | |
Debt Instrument, Term | 8 years | |
Debt Instrument, Maturity Date | Sep. 12, 2024 | |
Effective Interest Rate | 0.95% | |
Total Borrowings at Par Value | $ 1,201 | 1,052 |
Senior Notes [Member] | 2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 2.00% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | Apr. 15, 2025 | |
Effective Interest Rate | 2.10% | |
Total Borrowings at Par Value | $ 768 | 673 |
Senior Notes [Member] | 3.65% 10-Year Senior Notes, Due 12/15/2025 [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 3.65% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | Dec. 15, 2025 | |
Effective Interest Rate | 3.77% | |
Total Borrowings at Par Value | $ 350 | 350 |
Senior Notes [Member] | 1.40% 8.5-Year Senior Notes, Due 1/23/2026 (euro-denominated) [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 1.40% | |
Debt Instrument, Term | 8 years 6 months | |
Debt Instrument, Maturity Date | Jan. 23, 2026 | |
Effective Interest Rate | 1.53% | |
Total Borrowings at Par Value | $ 840 | |
Senior Notes [Member] | 2.95% 10-Year Senior Notes, Due 9/19/2026 [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 2.95% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | Sep. 19, 2026 | |
Effective Interest Rate | 3.19% | |
Total Borrowings at Par Value | $ 1,200 | 1,200 |
Senior Notes [Member] | 1.45% 10-Year Senior Notes, Due 3/16/2027 (euro-denominated) [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 1.45% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | Mar. 16, 2027 | |
Effective Interest Rate | 1.66% | |
Total Borrowings at Par Value | $ 600 | |
Senior Notes [Member] | 3.20% 10-Year Senior Notes, Due 8/15/2027 [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 3.20% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | Aug. 15, 2027 | |
Effective Interest Rate | 3.39% | |
Total Borrowings at Par Value | $ 750 | |
Senior Notes [Member] | 1.375% 12-Year Senior Notes, Due 9/12/2028 (euro-denominated) [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 1.375% | |
Debt Instrument, Term | 12 years | |
Debt Instrument, Maturity Date | Sep. 12, 2028 | |
Effective Interest Rate | 1.46% | |
Total Borrowings at Par Value | $ 721 | 631 |
Senior Notes [Member] | 1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 1.95% | |
Debt Instrument, Term | 12 years | |
Debt Instrument, Maturity Date | Jul. 24, 2029 | |
Effective Interest Rate | 2.08% | |
Total Borrowings at Par Value | $ 840 | |
Senior Notes [Member] | 2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 2.875% | |
Debt Instrument, Term | 20 years | |
Debt Instrument, Maturity Date | Jul. 24, 2037 | |
Effective Interest Rate | 2.94% | |
Total Borrowings at Par Value | $ 840 | |
Senior Notes [Member] | 5.30% 30-Year Senior Notes, Due 2/1/2044 [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 5.30% | |
Debt Instrument, Term | 30 years | |
Debt Instrument, Maturity Date | Feb. 1, 2044 | |
Effective Interest Rate | 5.37% | |
Total Borrowings at Par Value | $ 400 | 400 |
Senior Notes [Member] | 4.10% 30-Year Senior Notes, Due 8/15/2047 [Member] | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 4.10% | |
Debt Instrument, Term | 30 years | |
Debt Instrument, Maturity Date | Aug. 15, 2047 | |
Effective Interest Rate | 4.23% | |
Total Borrowings at Par Value | $ 750 | |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total Borrowings at Par Value | 24 | 13 |
Total Borrowings at Carrying Value | $ 24 | $ 13 |
Debt Future Repayments (Details
Debt Future Repayments (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Maturities of Long-term Debt [Abstract] | ||
2,018 | $ 2,135 | |
2,019 | 1,505 | |
2,020 | 1,564 | |
2,021 | 2,503 | |
2,022 | 1,403 | |
2023 and Thereafter | 12,065 | |
Total Repayments of Principal | $ 21,175 | $ 16,701 |
Debt Short-term Financing (Deta
Debt Short-term Financing (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Short-term Financing [Line Items] | ||
Short-term Borrowings | $ 960,000,000 | $ 953,000,000 |
Short-term Borrowings, Weighted Average Interest Rate | (0.26%) | 0.15% |
Line of Credit Facility, Remaining Borrowing Capacity | $ 73,000,000 | |
Revolving Credit Facility [Member] | ||
Short-term Financing [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500,000,000 | |
Line of Credit Facility, Expiration Date | Jul. 1, 2021 | |
Debt, Covenant, Maximum Consolidated Total Leverage Ratio of Debt to EBITDA, Third and Fourth Quarter After Acquisition | 4 | |
Debt, Covenant, Maximum Consolidated Total Leverage Ratio of Debt to EBITDA, Beginning in the Fifth Quarter After Acquisition | 3.5 | |
Debt, Covenant, Minimum Consolidated Interest Coverage Ratio | 3 | |
Line of Credit Facility, Amount Outstanding | $ 0 | |
Letters of Credit Outstanding, Amount | $ 77,000,000 | |
Commercial Paper Programs [Member] | ||
Short-term Financing [Line Items] | ||
Short-term Debt, Period to Maturity | 49 days | |
Commercial Paper Programs [Member] | U.S. Commercial Paper Program [Member] | ||
Short-term Financing [Line Items] | ||
Maximum Period to Maturity Allowed Under Program | 397 days | |
Commercial Paper Programs [Member] | Euro Commercial Paper Program [Member] | ||
Short-term Financing [Line Items] | ||
Maximum Period to Maturity Allowed Under Program | 183 days |
Debt, Interest Rate Swap Arrang
Debt, Interest Rate Swap Arrangements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Payments for Hedge, Financing Activities | $ 75 | |
Proceeds from Hedge, Financing Activities | 61 | |
Notional Amount Of Derivatives | $ 6,700 | $ 6,020 |
Senior Notes [Member] | 4.50% Senior Notes Due 2021 [Member] | Interest Rate Swaps [Member] | ||
Debt Instrument [Line Items] | ||
Notional Amount Of Derivatives | $ 1,000 | |
Interest Rate Swap, Pay Rate Spread above One-month LIBOR | 3.442% | |
Interest Rate Swap, Pay Rate at Period End | 4.8027% | |
Interest Rate Swap, Fixed Receive Rate | 4.50% | |
Senior Notes [Member] | 3.60% Senior Notes Due 2021 [Member] | Interest Rate Swaps [Member] | ||
Debt Instrument [Line Items] | ||
Notional Amount Of Derivatives | $ 1,100 | |
Interest Rate Swap, Pay Rate Spread above One-month LIBOR | 2.515% | |
Interest Rate Swap, Pay Rate at Period End | 3.992% | |
Interest Rate Swap, Fixed Receive Rate | 3.60% | |
Senior Notes [Member] | 3.00% Senior Notes Due 2023 [Member] | Interest Rate Swaps [Member] | ||
Debt Instrument [Line Items] | ||
Notional Amount Of Derivatives | $ 1,000 | |
Interest Rate Swap, Pay Rate Spread above One-month LIBOR | 1.764% | |
Interest Rate Swap, Pay Rate at Period End | 3.241% | |
Interest Rate Swap, Fixed Receive Rate | 3.00% |
Commitments and Contingencies77
Commitments and Contingencies (Details) - USD ($) $ in Millions | Feb. 03, 2014 | Nov. 30, 2012 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Leases [Abstract] | |||||
Operating Leases, Rent Expense, Net | $ 198 | $ 182 | $ 181 | ||
Operating Leases, Future Minimum Payments Due [Abstract] | |||||
2,018 | 188 | ||||
2,019 | 154 | ||||
2,020 | 123 | ||||
2,021 | 92 | ||||
2,022 | 80 | ||||
2023 and Thereafter | 169 | ||||
Operating Leases, Future Minimum Payments Due, Total | 806 | ||||
Unconditional Purchase Obligations [Abstract] | |||||
Unrecorded Unconditional Purchase Obligation | $ 733 | ||||
Date by which the majority of unrecorded Unconditional purchase obligations will be settled | Dec. 31, 2018 | ||||
Accrual for Environmental Loss Contingencies Disclosure [Abstract] | |||||
Accrual for Environmental Loss Contingencies, Net | $ 52 | ||||
Enzo Biochem, Enzo Life Sciences and Yale Univ [Member] | Life Technologies Corporation [Member] | |||||
Loss Contingency [Abstract] | |||||
Damages Awarded | $ 49 | ||||
Prejudgment Interest Awarded | $ 12 | ||||
Loss Contingency Accrued | $ 61 | ||||
Promega Corp and Max-Plank-Gesellschaft [Member] | |||||
Loss Contingency [Abstract] | |||||
Loss Contingency Accrued | 52 | ||||
Promega Corp and Max-Plank-Gesellschaft [Member] | Life Technologies Corporation [Member] | |||||
Loss Contingency [Abstract] | |||||
Damages Awarded | 52 | ||||
Loss Contingency Accrued | $ 52 | ||||
Letters of Credit / Bank Guarantees [Member] | |||||
Guarantor Obligations [Line Items] | |||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 183 | ||||
Guarantor Obligations, Term | Substantially all of these letters of credit and guarantees expire before 2024. | ||||
Surety Bonds and Other Guarantees [Member] | |||||
Guarantor Obligations [Line Items] | |||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 35 | ||||
Guarantor Obligations, Term | The expiration of these bonds and guarantees ranges through 2020. | ||||
Lease Residual Value Guarantee [Member] | |||||
Guarantor Obligations [Line Items] | |||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 155 | ||||
Businesses Sold [Member] | Pension Obligation Guarantee [Member] | |||||
Guarantor Obligations [Line Items] | |||||
Guarantor Obligations, Maximum Exposure, Undiscounted | 43 | ||||
Product Liability, Workers Compensation and Other Personal Injury Matters [Member] | |||||
Loss Contingency [Abstract] | |||||
Loss Contingency Accrued | 220 | ||||
Loss Contingency, Accrual, Gross | 242 | ||||
Estimated Amount Due from Insurers, Net | 93 | ||||
Estimated Amount Due from Insurers, Undiscounted | $ 107 | ||||
Loss Contingency, Accrual, Weighted Average Discount Rate | 4.67% | ||||
Loss Contingency, Accrual, Discount Amount | $ 22 | ||||
Estimated Amount Due from Insurers, Discount Amount | 14 | ||||
Loss Contingency, Net, Discount Amount | 8 | ||||
Loss Contingency Accrual, Product Liability, Gross, Divested Business | 10 | ||||
Product Liability, Workers Compensation and Other Personal Injury Matters [Member] | Minimum [Member] | |||||
Loss Contingency [Abstract] | |||||
Loss Contingency, Estimate of Possible Loss | 237 | ||||
Product Liability, Workers Compensation and Other Personal Injury Matters [Member] | Maximum [Member] | |||||
Loss Contingency [Abstract] | |||||
Loss Contingency, Estimate of Possible Loss | $ 388 |
Comprehensive Income and Shar78
Comprehensive Income and Shareholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Comprehensive Income | $ 2,858 | $ 1,383 | $ 1,263 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 21,540 | 21,350 | 20,548 | |
Other comprehensive income (loss) before reclassifications | 610 | |||
Amounts reclassified from accumulated other comprehensive items | 23 | |||
Total other comprehensive items | 633 | (639) | (712) | |
Balance | $ 25,413 | $ 25,413 | 21,540 | 21,350 |
Class of Stock Disclosures [Abstract] | ||||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 30 | 30 | ||
Currency Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ (2,343) | |||
Other comprehensive income (loss) before reclassifications | 588 | |||
Total other comprehensive items | 588 | |||
Balance | $ (1,755) | (1,755) | (2,343) | |
Unrealized Gains on Available-for-Sale Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 1 | |||
Other comprehensive income (loss) before reclassifications | (1) | |||
Amounts reclassified from accumulated other comprehensive items | (1) | |||
Total other comprehensive items | (2) | |||
Balance | (1) | (1) | 1 | |
Unrealized Losses on Hedging Instruments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (57) | |||
Amounts reclassified from accumulated other comprehensive items | 7 | |||
Total other comprehensive items | 7 | |||
Balance | (50) | (50) | (57) | |
Pension and Other Postretirement Benefit Liability Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (237) | |||
Other comprehensive income (loss) before reclassifications | 23 | |||
Amounts reclassified from accumulated other comprehensive items | 17 | |||
Total other comprehensive items | 40 | |||
Balance | (197) | (197) | (237) | |
Accumulated Other Comprehensive Items [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (2,636) | (1,997) | (1,285) | |
Total other comprehensive items | 633 | (639) | (712) | |
Balance | (2,003) | $ (2,003) | $ (2,636) | $ (1,997) |
Income Taxes on Net Investment Hedge [Member] | Restatement Adjustment [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Comprehensive Income | $ 101 |
Fair Value Measurements, Assets
Fair Value Measurements, Assets and Liabilities (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||
Cash equivalents | $ 22 | $ 65 |
Bank time deposits | 2 | 2 |
Investments in mutual funds and other similar instruments | 13 | 15 |
Warrants | 2 | 2 |
Insurance contracts | 116 | 102 |
Derivative contracts | 10 | 16 |
Total Assets | 165 | 202 |
Liabilities [Abstract] | ||
Derivative contracts | 139 | 122 |
Contingent consideration | 35 | 3 |
Total Liabilities | 174 | 125 |
Quoted Prices in Active Markets (Level I) [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 22 | 65 |
Bank time deposits | 2 | 2 |
Investments in mutual funds and other similar instruments | 13 | 15 |
Total Assets | 37 | 82 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Warrants | 2 | 2 |
Insurance contracts | 116 | 102 |
Derivative contracts | 10 | 16 |
Total Assets | 128 | 120 |
Liabilities [Abstract] | ||
Derivative contracts | 139 | 122 |
Total Liabilities | 139 | 122 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Liabilities [Abstract] | ||
Contingent consideration | 35 | 3 |
Total Liabilities | $ 35 | $ 3 |
Fair Value Measurements, Deriva
Fair Value Measurements, Derivative Assets & Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Interest Rate Swaps [Member] | Derivatives Designated as Hedging Instrument [Member] | Other Long-term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value | $ 124 | $ 110 |
Foreign Currency Exchange Contracts [Member] | Derivatives Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value | 10 | 16 |
Foreign Currency Exchange Contracts [Member] | Derivatives Not Designated as Hedging Instrument [Member] | Other Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value | $ 15 | $ 12 |
Fair Value Measurements, Deri81
Fair Value Measurements, Derivative Instruments, Gains & Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Apr. 30, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) in Currency Translation Adjustment on Net Investment Hedge | $ (664) | $ 172 | ||
Notional Amount Of Derivatives | 6,020 | 6,700 | ||
Foreign Currency Exchange Contracts [Member] | Cost of Sales [Member] | Derivatives Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective Portion of Gain (Loss) on Derivative, Net | (1) | (15) | ||
Foreign Currency Exchange Contracts [Member] | Other Expense [Member] | Derivatives Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective Portion of Gain (Loss) on Derivative, Net | 92 | (99) | ||
Fair Value Hedging [Member] | Interest Rate Swaps [Member] | Other Expense [Member] | Derivatives Designated as Fair Value Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective Portion of Gain (Loss) on Derivative, Net | 21 | |||
Ineffective Portion of Gain (Loss) on Derivative, Net | $ (5) | $ (1) | ||
Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Debt Instrument, Term | 10 years | |||
Notional Amount Of Derivatives | $ 1,000 | |||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $ (46) |
Fair Value of Other Instruments
Fair Value of Other Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes Receivable - Carrying Value | $ 89 | $ 56 |
Notes Receivable - Fair Value | 93 | 59 |
Debt Obligations - Carrying Value | 21,008 | 16,627 |
Debt Instrument, Fair Value Disclosure | 21,623 | 16,975 |
Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Obligations - Carrying Value | 20,024 | 14,838 |
Debt Instrument, Fair Value Disclosure | 20,639 | 15,184 |
Term Loan [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Obligations - Carrying Value | 823 | |
Debt Instrument, Fair Value Disclosure | 825 | |
Commercial Paper Programs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Obligations - Carrying Value | 960 | 953 |
Debt Instrument, Fair Value Disclosure | 960 | 953 |
Other Debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Obligations - Carrying Value | 24 | 13 |
Debt Instrument, Fair Value Disclosure | $ 24 | $ 13 |
Supplemental Cash Flow Inform83
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Cash Flow Information [Abstract] | ||||
Cash Paid For Interest | $ 533 | $ 458 | $ 438 | |
Cash Paid For Income Taxes | 479 | 663 | 477 | |
Non-cash Activities [Abstract] | ||||
Declared but unpaid dividends | 61 | 60 | 61 | |
Issuance of stock upon vesting of restricted stock units | 125 | 127 | 131 | |
Fair value of investments contributed to defined benefit plans | 16 | |||
Cash and cash equivalents | 1,335 | 786 | ||
Restricted Cash Included in Other Current Assets | 24 | 18 | ||
Restricted Cash Included in Other Assets | 2 | 7 | ||
Cash, Cash Equivalents and Restricted Cash | $ 1,361 | $ 811 | $ 466 | $ 1,364 |
Restricted Cash and Cash Equivalents, Current, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsCurrent | |||
Restricted Cash and Cash Equivalents, Noncurrent, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent |
Restructuring and Other Costs84
Restructuring and Other Costs, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 28, 2018 | |||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and Related Cost, Percentage of Total Workforce Eliminated, Less Than | 2.00% | 3.00% | 2.00% | |||||||||||||
Cost of Revenues | $ 123 | $ 102 | $ 9 | |||||||||||||
Selling, General and Administrative Expenses | 78 | 104 | 46 | |||||||||||||
Restructuring and Other Costs (Income), Net | 97 | 189 | 116 | |||||||||||||
Total Restructuring and Other Costs (Income), Net | $ 51 | $ 131 | $ 30 | $ 86 | $ 98 | $ 150 | $ 57 | $ 90 | 298 | 395 | 171 | |||||
Restructuring and Related Costs, Cash Costs | 106 | [1] | 167 | [2] | 90 | [3] | ||||||||||
Restructuring and Related Costs, Other Costs (Income), Net | 27 | (3) | 1 | |||||||||||||
Loss (Gain) Related to Litigation-related Matter | (27) | 24 | 25 | |||||||||||||
Loss (Gain) on Disposition of Property Plant Equipment | 5 | |||||||||||||||
Severance [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and Related Costs, Cash Costs | $ 62 | 109 | 57 | |||||||||||||
Restructuring Reserve, Expected Final Year of Payments | 2,018 | |||||||||||||||
Abandonment of Excess Facilities [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and Related Costs, Cash Costs | $ 27 | 46 | 19 | |||||||||||||
Restructuring Reserve, Expected Final Year of Payments | 2,027 | |||||||||||||||
Other Restructuring [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and Related Costs, Cash Costs | [4] | $ 17 | 12 | 14 | ||||||||||||
Restructuring Reserve, Expected Final Year of Payments | 2,018 | |||||||||||||||
Life Sciences Solutions [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Cost of Revenues | $ 1 | 31 | 2 | |||||||||||||
Selling, General and Administrative Expenses | 29 | 36 | 13 | |||||||||||||
Restructuring and Other Costs (Income), Net | (16) | 88 | 65 | |||||||||||||
Total Restructuring and Other Costs (Income), Net | 14 | 155 | 80 | |||||||||||||
Restructuring and Related Costs, Cash Costs | 48 | 78 | 40 | |||||||||||||
Restructuring and Related Costs, Other Costs (Income), Net | 10 | |||||||||||||||
Loss (Gain) Related to Litigation-related Matter | (64) | 20 | ||||||||||||||
Impairment of Acquired Technology in Development | 15 | |||||||||||||||
Loss (Gain) on Disposition of Property Plant Equipment | (3) | |||||||||||||||
Loss (Gain) on Divestiture of Businesses | (8) | |||||||||||||||
Life Sciences Solutions [Member] | Charges for Sales of Inventories Revalued at Acquisition [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Cost of Revenues | 27 | |||||||||||||||
Life Sciences Solutions [Member] | Accelerated Depreciation Related to Facility Consolidations [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Selling, General and Administrative Expenses | 4 | 9 | ||||||||||||||
Life Sciences Solutions [Member] | Costs to Conform Accounting Policies [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Cost of Revenues | 4 | |||||||||||||||
Life Sciences Solutions [Member] | Transaction Costs Related to Acquisition [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Selling, General and Administrative Expenses | 34 | 6 | ||||||||||||||
Life Sciences Solutions [Member] | Transaction Costs Related to Divestiture [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and Related Costs, Cash Costs | 1 | |||||||||||||||
Life Sciences Solutions [Member] | Charges for Changes in Estimates of Contingent Consideration for Acquisitions [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Selling, General and Administrative Expenses | (2) | (2) | ||||||||||||||
Life Sciences Solutions [Member] | Cash costs associated with headcount reductions and facility consolidations [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and Related Costs, Cash Costs | 35 | |||||||||||||||
Life Sciences Solutions [Member] | Severance [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and Related Costs, Cash Costs | 23 | 60 | 24 | |||||||||||||
Life Sciences Solutions [Member] | Charges For Cash Compensation Contractually Due To Employees Of Acquired Business [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and Related Costs, Cash Costs | 5 | |||||||||||||||
Life Sciences Solutions [Member] | Abandonment of Excess Facilities [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and Related Costs, Cash Costs | 25 | 18 | 4 | |||||||||||||
Life Sciences Solutions [Member] | Other Restructuring [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and Related Costs, Cash Costs | 7 | |||||||||||||||
Analytical Instruments [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Cost of Revenues | 31 | 63 | 0 | |||||||||||||
Selling, General and Administrative Expenses | (2) | 46 | 0 | |||||||||||||
Restructuring and Other Costs (Income), Net | 30 | 68 | 27 | |||||||||||||
Total Restructuring and Other Costs (Income), Net | 59 | 177 | 27 | |||||||||||||
Restructuring and Related Costs, Cash Costs | 68 | 22 | ||||||||||||||
Asset Writedowns | 5 | |||||||||||||||
Analytical Instruments [Member] | Charges for Sales of Inventories Revalued at Acquisition [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Cost of Revenues | 42 | |||||||||||||||
Analytical Instruments [Member] | Costs to Conform Accounting Policies [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Cost of Revenues | 21 | |||||||||||||||
Selling, General and Administrative Expenses | 9 | |||||||||||||||
Analytical Instruments [Member] | Transaction Costs Related to Acquisition [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Selling, General and Administrative Expenses | 38 | |||||||||||||||
Specialty Diagnostics [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Cost of Revenues | 1 | 1 | ||||||||||||||
Selling, General and Administrative Expenses | (2) | 0 | 0 | |||||||||||||
Restructuring and Other Costs (Income), Net | 39 | 15 | 9 | |||||||||||||
Total Restructuring and Other Costs (Income), Net | 38 | 15 | 10 | |||||||||||||
Restructuring and Related Costs, Cash Costs | 6 | |||||||||||||||
Restructuring and Related Costs, Other Costs (Income), Net | (1) | |||||||||||||||
Loss (Gain) Related to Litigation-related Matter | 10 | |||||||||||||||
Laboratory Products and Services [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Cost of Revenues | 90 | 8 | 6 | |||||||||||||
Selling, General and Administrative Expenses | 61 | 1 | 6 | |||||||||||||
Restructuring and Other Costs (Income), Net | 41 | 17 | 13 | |||||||||||||
Total Restructuring and Other Costs (Income), Net | 192 | 26 | 25 | |||||||||||||
Restructuring and Related Costs, Cash Costs | 11 | 8 | ||||||||||||||
Loss (Gain) Related to Litigation-related Matter | (1) | 5 | ||||||||||||||
Environmental Remediation Expense | 8 | |||||||||||||||
Laboratory Products and Services [Member] | Charges for Sales of Inventories Revalued at Acquisition [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Cost of Revenues | 55 | 6 | ||||||||||||||
Laboratory Products and Services [Member] | Accelerated Depreciation Related to Facility Consolidations [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Cost of Revenues | 2 | |||||||||||||||
Laboratory Products and Services [Member] | Costs to Conform Accounting Policies [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Cost of Revenues | 33 | |||||||||||||||
Selling, General and Administrative Expenses | 6 | |||||||||||||||
Laboratory Products and Services [Member] | Transaction Costs Related to Acquisition [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Selling, General and Administrative Expenses | 55 | |||||||||||||||
Corporate [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Selling, General and Administrative Expenses | (8) | 21 | 27 | |||||||||||||
Restructuring and Other Costs (Income), Net | 3 | 1 | 2 | |||||||||||||
Total Restructuring and Other Costs (Income), Net | (5) | 22 | 29 | |||||||||||||
Restructuring and Related Costs, Cash Costs | 1 | |||||||||||||||
Corporate [Member] | Accelerated Depreciation Related to Facility Consolidations [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Selling, General and Administrative Expenses | 4 | 8 | ||||||||||||||
Corporate [Member] | Product Liability, Workers Compensation and Other Personal Injury Matters [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Selling, General and Administrative Expenses | $ (8) | $ 17 | 19 | |||||||||||||
Corporate [Member] | Severance [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Restructuring and Related Costs, Cash Costs | $ 2 | |||||||||||||||
Scenario, Forecast [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Identified Future Restructuring Costs | $ 105 | |||||||||||||||
[1] | Excludes $27 million of net credits associated with litigation-related matters, and $27 million of other restructuring charges, net, primarily for hurricane response/impairment, charges associated with the settlement/curtailment of retirement plans, and non-cash compensation due at an acquired business. | |||||||||||||||
[2] | Excludes $24 million of provision for losses on litigation-related matters; $8 million of provision for environmental remediation; $5 million of net gains on the sale of real estate; and an aggregate of $3 million of non-cash income, net. | |||||||||||||||
[3] | Excludes $25 million of provision for losses on litigation-related matters; $15 million of impairment of acquired technology in development; a $8 million gain on the sale of a product line; $5 million of cash compensation contractually due to employees of an acquired business on the date of acquisition; $1 million of charges associated with a previous sale of a business; and an aggregate of $1 million of non-cash charges, net. | |||||||||||||||
[4] | Other includes cash charges to monetize certain equity awards held by employees of Life Technologies at the date of acquisition, relocation and moving expenses associated with facility consolidations, as well as employee retention costs which are accrued ratably over the period through which employees must work to qualify for a payment. |
Restructuring Reserves (Details
Restructuring Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | $ 72 | $ 31 | $ 54 | ||||
Costs incurred | 106 | [1] | 167 | [2] | 90 | [3] | |
Reserves reversed | [4] | (9) | (3) | (15) | |||
Payments | (93) | (122) | (97) | ||||
Currency translation | (1) | (1) | |||||
Ending balance | 76 | 72 | 31 | ||||
Restructuring and other costs, net | 97 | 189 | 116 | ||||
Gain (Loss) on Disposition of Property Plant Equipment | (5) | ||||||
Restructuring and Related Costs, Other Costs (Income), Net | 27 | (3) | 1 | ||||
Loss (Gain) Related to Litigation-related Matter | (27) | 24 | 25 | ||||
Severance [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | 38 | 15 | 38 | ||||
Costs incurred | 62 | 109 | 57 | ||||
Reserves reversed | [4] | (9) | (2) | (12) | |||
Payments | (62) | (83) | (67) | ||||
Currency translation | 1 | (1) | (1) | ||||
Ending balance | $ 30 | 38 | 15 | ||||
Restructuring Reserve, Expected Final Year of Payments | 2,018 | ||||||
Abandonment of Excess Facilities [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | $ 32 | 13 | 10 | ||||
Costs incurred | 27 | 46 | 19 | ||||
Reserves reversed | [4] | (1) | |||||
Payments | (19) | (27) | (15) | ||||
Ending balance | $ 40 | 32 | 13 | ||||
Restructuring Reserve, Expected Final Year of Payments | 2,027 | ||||||
Other Restructuring [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | [5] | $ 2 | 3 | 6 | |||
Costs incurred | [5] | 17 | 12 | 14 | |||
Reserves reversed | [4],[5] | (1) | (2) | ||||
Payments | [5] | (12) | (12) | (15) | |||
Currency translation | [5] | (1) | |||||
Ending balance | [5] | $ 6 | 2 | 3 | |||
Restructuring Reserve, Expected Final Year of Payments | 2,018 | ||||||
Laboratory Products and Services [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Costs incurred | 11 | 8 | |||||
Environmental Remediation Expense | 8 | ||||||
Restructuring and other costs, net | $ 41 | 17 | 13 | ||||
Loss (Gain) Related to Litigation-related Matter | (1) | 5 | |||||
Life Sciences Solutions [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Costs incurred | 48 | 78 | 40 | ||||
Restructuring and other costs, net | (16) | 88 | 65 | ||||
Gain (Loss) on Disposition of Property Plant Equipment | 3 | ||||||
Loss (Gain) on Divestiture of Businesses | (8) | ||||||
Restructuring and Related Costs, Other Costs (Income), Net | 10 | ||||||
Loss (Gain) Related to Litigation-related Matter | (64) | 20 | |||||
Impairment of Acquired Technology in Development | 15 | ||||||
Life Sciences Solutions [Member] | Severance [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Costs incurred | 23 | 60 | 24 | ||||
Life Sciences Solutions [Member] | Abandonment of Excess Facilities [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Costs incurred | $ 25 | $ 18 | 4 | ||||
Life Sciences Solutions [Member] | Other Restructuring [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Costs incurred | $ 7 | ||||||
[1] | Excludes $27 million of net credits associated with litigation-related matters, and $27 million of other restructuring charges, net, primarily for hurricane response/impairment, charges associated with the settlement/curtailment of retirement plans, and non-cash compensation due at an acquired business. | ||||||
[2] | Excludes $24 million of provision for losses on litigation-related matters; $8 million of provision for environmental remediation; $5 million of net gains on the sale of real estate; and an aggregate of $3 million of non-cash income, net. | ||||||
[3] | Excludes $25 million of provision for losses on litigation-related matters; $15 million of impairment of acquired technology in development; a $8 million gain on the sale of a product line; $5 million of cash compensation contractually due to employees of an acquired business on the date of acquisition; $1 million of charges associated with a previous sale of a business; and an aggregate of $1 million of non-cash charges, net. | ||||||
[4] | Represents reductions in cost of plans. | ||||||
[5] | Other includes cash charges to monetize certain equity awards held by employees of Life Technologies at the date of acquisition, relocation and moving expenses associated with facility consolidations, as well as employee retention costs which are accrued ratably over the period through which employees must work to qualify for a payment. |
Unaudited Quarterly Informati86
Unaudited Quarterly Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 6,047 | $ 5,116 | $ 4,990 | $ 4,765 | $ 4,953 | $ 4,491 | $ 4,535 | $ 4,295 | $ 20,918 | $ 18,274 | $ 16,965 |
Gross Profit | 2,670 | 2,300 | 2,283 | 2,192 | 2,279 | 2,054 | 2,078 | 1,958 | |||
Income from continuing operations | 2,228 | 2,025 | 1,980 | ||||||||
Net Income | $ 528 | $ 534 | $ 612 | $ 551 | $ 630 | $ 473 | $ 517 | $ 402 | $ 2,225 | $ 2,022 | $ 1,975 |
Earnings per Share from Continuing Operations [Abstract] | |||||||||||
Basic (in dollars per share) | $ 5.65 | $ 5.13 | $ 4.97 | ||||||||
Diluted (in dollars per share) | 5.60 | 5.10 | 4.93 | ||||||||
Earnings per Share | |||||||||||
Basic (in dollars per share) | $ 1.32 | $ 1.35 | $ 1.57 | $ 1.41 | $ 1.60 | $ 1.20 | $ 1.31 | $ 1.02 | 5.64 | 5.12 | 4.96 |
Diluted (in dollars per share) | 1.30 | 1.34 | 1.56 | 1.40 | 1.59 | 1.19 | 1.30 | 1.01 | 5.59 | 5.09 | 4.92 |
Cash Dividends Declared per Common Share (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.6 | $ 0.6 | $ 0.6 |
Total Restructuring and Other Costs (Income), Net | $ 51 | $ 131 | $ 30 | $ 86 | $ 98 | $ 150 | $ 57 | $ 90 | $ 298 | $ 395 | $ 171 |