Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 28, 2019shares | |
Entity Listings [Line Items] | |
Entity Central Index Key | 0000097745 |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 28, 2019 |
Document Transition Report | false |
Entity File Number | 1-8002 |
Entity Registrant Name | THERMO FISHER SCIENTIFIC INC. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 04-2209186 |
Entity Address, Address Line One | 168 Third Avenue |
Entity Address, City or Town | Waltham |
Entity Address, State or Province | MA |
Entity Address, Postal Zip Code | 02451 |
City Area Code | 781 |
Local Phone Number | 622-1000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 400,991,227 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Common Stock, $1.00 par value | |
Entity Listings [Line Items] | |
Title of 12(b) Security | Common Stock, $1.00 par value |
Trading Symbol | TMO |
Security Exchange Name | NYSE |
Floating Rate Notes due 2020 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | Floating Rate Notes due 2020 |
Trading Symbol | TMO /20A |
Security Exchange Name | NYSE |
2.150% Notes due 2022 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 2.150% Notes due 2022 |
Trading Symbol | TMO 22A |
Security Exchange Name | NYSE |
0.750% Notes due 2024 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 0.750% Notes due 2024 |
Trading Symbol | TMO 24A |
Security Exchange Name | NYSE |
0.125% Notes due 2025 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 0.125% Notes due 2025 |
Trading Symbol | TMO 25B |
Security Exchange Name | NYSE |
2.000% Notes due 2025 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 2.000% Notes due 2025 |
Trading Symbol | TMO 25 |
Security Exchange Name | NYSE |
1.400% Notes due 2026 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 1.400% Notes due 2026 |
Trading Symbol | TMO 26A |
Security Exchange Name | NYSE |
1.450% Notes due 2027 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 1.450% Notes due 2027 |
Trading Symbol | TMO 27 |
Security Exchange Name | NYSE |
0.500% Notes due 2028 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 0.500% Notes due 2028 |
Trading Symbol | TMO 28A |
Security Exchange Name | NYSE |
1.375% Notes due 2028 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 1.375% Notes due 2028 |
Trading Symbol | TMO 28 |
Security Exchange Name | NYSE |
1.950% Notes due 2029 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 1.950% Notes due 2029 |
Trading Symbol | TMO 29 |
Security Exchange Name | NYSE |
0.875% Notes due 2031 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 0.875% Notes due 2031 |
Trading Symbol | TMO 31 |
Security Exchange Name | NYSE |
2.875% Notes due 2037 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 2.875% Notes due 2037 |
Trading Symbol | TMO 37 |
Security Exchange Name | NYSE |
1.500% Notes due 2039 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 1.500% Notes due 2039 |
Trading Symbol | TMO 39 |
Security Exchange Name | NYSE |
1.875% Notes due 2049 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 1.875% Notes due 2049 |
Trading Symbol | TMO 49 |
Security Exchange Name | NYSE |
Consolidated Balance Sheet (Una
Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 1,273 | $ 2,103 |
Accounts receivable, less allowances of $106 and $117 | 4,384 | 4,136 |
Inventories | 3,308 | 3,005 |
Other current assets | 1,549 | 1,381 |
Total current assets | 10,514 | 10,625 |
Property, Plant and Equipment, Net | 4,420 | 4,165 |
Acquisition-related Intangible Assets, Net | 14,311 | 14,978 |
Other Assets | 1,860 | 1,117 |
Goodwill | 25,624 | 25,347 |
Total Assets | 56,729 | 56,232 |
Current Liabilities: | ||
Short-term obligations and current maturities of long-term obligations | 661 | 1,271 |
Accounts payable | 1,659 | 1,615 |
Accrued payroll and employee benefits | 883 | 982 |
Contract liabilities | 943 | 809 |
Other accrued expenses | 1,698 | 1,470 |
Total current liabilities | 5,844 | 6,147 |
Deferred Income Taxes | 2,001 | 2,265 |
Other Long-term Liabilities | 3,137 | 2,515 |
Long-term Obligations | 16,392 | 17,719 |
Shareholders' Equity: | ||
Preferred stock, $100 par value, 50,000 shares authorized; none issued | ||
Common stock, $1 par value, 1,200,000,000 shares authorized; 434,028,435 and 431,566,561 shares issued | 434 | 432 |
Capital in excess of par value | 14,964 | 14,621 |
Retained earnings | 21,165 | 18,696 |
Treasury stock at cost, 33,037,208 and 29,444,882 shares | (4,486) | (3,665) |
Accumulated other comprehensive items | (2,722) | (2,498) |
Total shareholders' equity | 29,355 | 27,586 |
Total Liabilities and Shareholders' Equity | $ 56,729 | $ 56,232 |
Consolidated Balance Sheet (U_2
Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable Allowances | $ 106 | $ 117 |
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, $1 Par Value - Shares Issued (in shares) | 434,028,435 | 431,566,561 |
Treasury Stock at Cost (in shares) | 33,037,208 | 29,444,882 |
Consolidated Statement of Incom
Consolidated Statement of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Revenues | ||||
Revenues | $ 6,272 | $ 5,920 | $ 18,713 | $ 17,851 |
Costs and Operating Expenses: | ||||
Selling, general and administrative expenses | 1,539 | 1,490 | 4,632 | 4,547 |
Research and development expenses | 247 | 240 | 741 | 716 |
Restructuring and other costs (income), net | 31 | (27) | (442) | 35 |
Total costs and operating expenses | 5,326 | 5,008 | 15,351 | 15,216 |
Operating Income | 946 | 912 | 3,362 | 2,635 |
Other Expense, Net | (124) | (102) | (330) | (385) |
Income Before Income Taxes | 822 | 810 | 3,032 | 2,250 |
Provision for Income Taxes | (62) | (101) | (338) | (210) |
Net Income | $ 760 | $ 709 | $ 2,694 | $ 2,040 |
Earnings per Share | ||||
Basic (in dollars per share) | $ 1.89 | $ 1.76 | $ 6.73 | $ 5.07 |
Diluted (in dollars per share) | $ 1.88 | $ 1.75 | $ 6.68 | $ 5.03 |
Weighted Average Shares | ||||
Basic (in shares) | 401 | 402 | 400 | 402 |
Diluted (in shares) | 404 | 406 | 403 | 406 |
Product [Member] | ||||
Revenues | ||||
Revenues | $ 4,798 | $ 4,571 | $ 14,345 | $ 13,807 |
Costs and Operating Expenses: | ||||
Cost of revenues | 2,471 | 2,357 | 7,363 | 7,072 |
Service [Member] | ||||
Revenues | ||||
Revenues | 1,474 | 1,349 | 4,368 | 4,044 |
Costs and Operating Expenses: | ||||
Cost of revenues | $ 1,038 | $ 948 | $ 3,057 | $ 2,846 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Currency translation adjustment: | ||||
Currency translation adjustment (net of tax provision of $77, $13, $92 and $60) | $ (91) | $ (32) | $ (222) | $ (447) |
Reclassification adjustment for losses included in net income | 30 | 0 | 30 | 0 |
Unrealized gains and losses on hedging instruments: | ||||
Unrealized losses on hedging instruments (net of tax benefit of $12, $0, $12 and $0) | (38) | 0 | (38) | 0 |
Reclassification adjustment for losses included in net income (net of tax benefit of $1, $1, $3 and $3) | 2 | 2 | 7 | 6 |
Pension and other postretirement benefit liability adjustments: | ||||
Pension and other postretirement benefit liability adjustments arising during the period (net of tax provision (benefit) of $2, $0, ($2) and $1) | 2 | 0 | (9) | 3 |
Amortization of net loss included in net periodic pension cost (net of tax benefit of $0, $0, $2 and $3) | 3 | 2 | 8 | 10 |
Total other comprehensive items | (92) | (28) | (224) | (428) |
Net Income | 760 | 709 | 2,694 | 2,040 |
Comprehensive Income | $ 668 | $ 681 | $ 2,470 | $ 1,612 |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax provision (benefit) on currency translation adjustment | $ 77 | $ 13 | $ 92 | $ 60 |
Tax provision (benefit) on unrealized holding gains and losses on hedging instruments arising during the period | (12) | 0 | (12) | 0 |
Tax provision (benefit) on reclassification adjustment for losses on hedging instruments recognized in net income | (1) | (1) | (3) | (3) |
Tax provision (benefit) on pension and other postretirement benefit liability adjustments arising during the period | 2 | 0 | (2) | 1 |
Tax provision (benefit) on amortization of net loss and prior service benefit included in net periodic pension cost | $ 0 | $ 0 | $ (2) | $ (3) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Operating Activities | ||
Net Income | $ 2,694 | $ 2,040 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 416 | 393 |
Amortization of acquisition-related intangible assets | 1,285 | 1,316 |
Change in deferred income taxes | (356) | (317) |
Gain on sales of businesses | (486) | 0 |
Non-cash stock-based compensation | 138 | 137 |
Other non-cash expenses, net | 123 | 77 |
Changes in assets and liabilities, excluding the effects of acquisitions and disposition: | ||
Accounts receivable | (321) | (64) |
Inventories | (449) | (333) |
Other assets | (186) | (185) |
Accounts payable | 70 | (45) |
Other liabilities | 172 | (199) |
Contributions to retirement plans | (40) | (78) |
Net cash provided by operating activities | 3,060 | 2,742 |
Investing Activities | ||
Acquisitions, net of cash acquired | (1,687) | (59) |
Proceeds from sale of business, net of cash divested | 1,128 | 0 |
Purchase of property, plant and equipment | (637) | (474) |
Proceeds from sale of property, plant and equipment | 18 | 6 |
Other investing activities, net | 30 | (5) |
Net cash used in investing activities | (1,148) | (532) |
Financing Activities | ||
Net proceeds from issuance of debt | 0 | 690 |
Repayment of debt | (1,702) | (2,048) |
Proceeds from issuance of commercial paper | 2,581 | 3,378 |
Repayments of commercial paper | (2,578) | (3,842) |
Purchases of company common stock | (750) | (250) |
Dividends paid | (221) | (198) |
Net proceeds from issuance of company common stock under employee stock plans | 115 | 97 |
Other financing activities | (49) | (51) |
Net cash (used in) provided by financing activities | (2,604) | (2,224) |
Exchange Rate Effect on Cash | (120) | (236) |
Decrease in Cash, Cash Equivalents and Restricted Cash | (812) | (250) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 2,117 | 1,361 |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 1,305 | $ 1,111 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Unaudited) - 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, 2017 | 428 | 27 | ||||
Balance at Dec. 31, 2017 | $ 25,413 | $ 428 | $ 14,177 | $ 15,914 | $ (3,103) | $ (2,003) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of accounting changes | 30 | 118 | (88) | |||
Issuance of shares under employees' and directors' stock plans (in shares) | 3 | 0 | ||||
Issuance of shares under employees' and directors' stock plans | 127 | $ 3 | 185 | $ (61) | ||
Stock-based compensation | 137 | 137 | ||||
Purchases of company common stock (in shares) | 1 | |||||
Purchases of company common stock | (250) | $ (250) | ||||
Dividends declared | (206) | (206) | ||||
Net Income | 2,040 | 2,040 | ||||
Other comprehensive items | (428) | (428) | ||||
Other | 27 | 27 | ||||
Balance (in shares) at Sep. 29, 2018 | 431 | 28 | ||||
Balance at Sep. 29, 2018 | 26,890 | $ 431 | 14,526 | 17,866 | $ (3,414) | (2,519) |
Balance (in shares) at Jun. 30, 2018 | 430 | 27 | ||||
Balance at Jun. 30, 2018 | 26,445 | $ 430 | 14,408 | 17,226 | $ (3,128) | (2,491) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of shares under employees' and directors' stock plans (in shares) | 1 | |||||
Issuance of shares under employees' and directors' stock plans | 37 | $ 1 | 72 | $ (36) | ||
Stock-based compensation | 46 | 46 | ||||
Purchases of company common stock (in shares) | 1 | |||||
Purchases of company common stock | (250) | $ (250) | ||||
Dividends declared | (69) | (69) | ||||
Net Income | 709 | 709 | ||||
Other comprehensive items | (28) | (28) | ||||
Balance (in shares) at Sep. 29, 2018 | 431 | 28 | ||||
Balance at Sep. 29, 2018 | 26,890 | $ 431 | 14,526 | 17,866 | $ (3,414) | (2,519) |
Balance (in shares) at Dec. 31, 2018 | 432 | 29 | ||||
Balance at Dec. 31, 2018 | 27,586 | $ 432 | 14,621 | 18,696 | $ (3,665) | (2,498) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of accounting changes | 4 | 4 | 0 | |||
Issuance of shares under employees' and directors' stock plans (in shares) | 2 | 1 | ||||
Issuance of shares under employees' and directors' stock plans | 136 | $ 2 | 205 | $ (71) | ||
Stock-based compensation | 138 | 138 | ||||
Purchases of company common stock (in shares) | 3 | |||||
Purchases of company common stock | (750) | $ (750) | ||||
Dividends declared | (229) | (229) | ||||
Net Income | 2,694 | 2,694 | ||||
Other comprehensive items | (224) | (224) | ||||
Balance (in shares) at Sep. 28, 2019 | 434 | 33 | ||||
Balance at Sep. 28, 2019 | 29,355 | $ 434 | 14,964 | 21,165 | $ (4,486) | (2,722) |
Balance (in shares) at Jun. 29, 2019 | 433 | 33 | ||||
Balance at Jun. 29, 2019 | 28,729 | $ 433 | 14,887 | 20,482 | $ (4,443) | (2,630) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of shares under employees' and directors' stock plans (in shares) | 1 | 0 | ||||
Issuance of shares under employees' and directors' stock plans | (7) | $ 1 | 35 | $ (43) | ||
Stock-based compensation | 42 | 42 | ||||
Dividends declared | (77) | (77) | ||||
Net Income | 760 | 760 | ||||
Other comprehensive items | (92) | (92) | ||||
Balance (in shares) at Sep. 28, 2019 | 434 | 33 | ||||
Balance at Sep. 28, 2019 | $ 29,355 | $ 434 | $ 14,964 | $ 21,165 | $ (4,486) | $ (2,722) |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders' Equity Consolidated Statement of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Cash Dividends Declared per Common Share (in dollars per share) | $ 0.19 | $ 0.17 | $ 0.57 | $ 0.51 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 28, 2019 | |
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 helping them accelerate life sciences research, solve complex analytical challenges, improve patient diagnostics, deliver medicines to market and increase laboratory productivity. Markets served include pharmaceutical and biotech, academic and government, industrial and applied, as well as healthcare and diagnostics. Interim Financial Statements The interim consolidated financial statements presented herein have been prepared by the company, are unaudited and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair statement of the financial position at September 28, 2019 , the results of operations for the three- and nine-month periods ended September 28, 2019 and September 29, 2018 , and the cash flows for the nine-month periods ended September 28, 2019 and September 29, 2018 . Interim results are not necessarily indicative of results for a full year. The consolidated balance sheet presented as of December 31, 2018 , has been derived from the audited consolidated financial statements as of that date. The consolidated financial statements and notes are presented as permitted by Form 10-Q and do not contain all information that is included in the annual financial statements and notes thereto of the company. The consolidated financial statements and notes included in this report should be read in conjunction with the 2018 financial statements and notes included in the company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC). Note 1 to the consolidated financial statements for 2018 describes the significant accounting estimates and policies used in preparation of the consolidated financial statements. Except for the accounting for leases, as noted below, there have been no material changes in the company’s significant accounting policies during the nine months ended September 28, 2019 . Leases The company determines whether an arrangement is, or contains, a lease at inception. Prior to 2019, the company generally accounted for operating lease payments by charging them to expense as incurred. Beginning in 2019, operating leases that have commenced are included in other assets, other accrued expenses and other long-term liabilities in the consolidated balance sheet. Classification of operating lease liabilities as either current or noncurrent is based on the expected timing of payments due under the company’s obligations. Right-of-use (ROU) assets represent the company’s right to use an underlying asset for the lease term and lease liabilities represent the company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. The company recognizes lease expense for these leases on a straight-line basis over the lease term. Because most of the company’s leases do not provide an implicit rate, the company estimates incremental borrowing rates based on the information available at the commencement date in determining the present value of lease payments. The company uses the implicit rate when readily determinable. Lease terms may include the effect of options to extend or terminate the lease when it is reasonably certain that the company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. As a lessee, the company accounts for the lease and non-lease components as a single lease component. See Note 9 additional information about the company's leases. Contract-related Balances Current contract assets and noncurrent contract assets are included within other current assets and other assets, respectively, in the accompanying balance sheet. Noncurrent contract liabilities are included within other long-term liabilities in the accompanying balance sheet. Contract asset and liability balances are as follows: September 28, December 31, (In millions) 2019 2018 Current Contract Assets, Net $ 609 $ 459 Noncurrent Contract Assets, Net 14 15 Current Contract Liabilities 943 809 Noncurrent Contract Liabilities 562 355 In the first nine months of 2019 , the company recognized revenue of $654 million that was included in the contract liabilities balance at December 31, 2018 . Contract assets increased in the first nine months of 2019 due to the timing of billing. Contract liabilities increased during the first nine months of 2019 primarily due to an advance payment from a customer and an acquisition. Warranty Obligations The liability for warranties is included in other accrued expenses in the accompanying balance sheet. The changes in the carrying amount of standard product warranty obligations are as follows: Nine Months Ended September 28, September 29, (In millions) 2019 2018 Beginning Balance $ 92 $ 87 Provision charged to income 80 89 Usage (83 ) (80 ) Adjustments to previously provided warranties, net (1 ) (3 ) Currency translation (2 ) (2 ) Ending Balance $ 86 $ 91 Inventories The components of inventories are as follows: September 28, December 31, (In millions) 2019 2018 Raw Materials $ 943 $ 812 Work in Process 514 430 Finished Goods 1,851 1,763 Inventories $ 3,308 $ 3,005 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. Actual results could differ from those estimates. Recent Accounting Pronouncements In August 2018, the FASB issued new guidance to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The company expects to adopt the guidance when it is effective in 2020 using a retrospective method. The adoption of this guidance is not expected to have a material impact on the company’s disclosures. In August 2018, the FASB issued new guidance to modify the disclosure requirements on fair value measurements. The company expects to adopt the guidance when it is effective in 2020 with some items requiring a prospective method and others requiring a retrospective method. The adoption of this guidance is not expected to have a material impact on the company’s disclosures. In June 2016, the FASB issued new guidance to require a financial asset measured at amortized cost basis, such as accounts receivable, to be presented at the net amount expected to be collected based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. During 2018 and 2019, the FASB issued additional guidance and clarification. The company expects to adopt the guidance when it is effective in 2020 using a modified retrospective method. The adoption of this guidance is not expected to have a material impact on the company’s consolidated financial statements. 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. During 2017 - 2019, the FASB issued additional guidance and clarification. The guidance became effective for the company in 2019. The company has elected to adopt the guidance using a modified retrospective method, by applying the transition approach as of the beginning of the period of adoption. Comparative periods have not been restated. As permitted upon transition, the company did not reassess whether any expired or existing contracts were or contained embedded leases, the lease classification for any expired or existing leases, initial direct costs for any leases, or whether land easements met the definition of a lease if they were not accounted for as leases under the prior guidance. Adoption of the new guidance impacted the company’s Consolidated Balance Sheet as follows: (In millions) December 31, Impact of Adopting New Lease Guidance January 1, Other Assets $ 1,117 $ 641 $ 1,758 Other Accrued Expenses 1,470 132 1,602 Other Long-term Liabilities 2,515 505 3,020 Retained Earnings 18,696 4 18,700 |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Sep. 28, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions [Text Block] | Note 2 . Acquisitions and Dispositions 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 acquisition 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. On April 30, 2019, the company acquired, within the Laboratory Products and Services segment, Brammer Bio for approximately $1.67 billion in cash. Brammer Bio is a leading viral vector contract development and manufacturing organization for gene and cell therapies. The acquisition expands the segment's contract manufacturing capabilities. Revenues of Brammer Bio were approximately $140 million in 2018. The purchase price exceeded the fair value of the identifiable net assets and, accordingly, $938 million was allocated to goodwill, $405 million of which is tax deductible. In addition, in the nine months ended September 28, 2019 the company acquired, within the Analytical Instruments segment, a Slovakia-based provider of mass spectrometry software used for identification of compounds, for an aggregate purchase price of $14 million . The components of the purchase price and net assets acquired for Brammer Bio are as follows: (In millions) Brammer Bio Purchase Price Cash paid $ 1,710 Cash acquired (36 ) $ 1,674 Net Assets Acquired Current assets $ 52 Property, plant and equipment 147 Definite-lived intangible assets: Customer relationships 744 Product technology 65 Tradenames 7 Goodwill 938 Other assets 49 Contract liabilities (109 ) Deferred tax liabilities (111 ) Other liabilities assumed (108 ) $ 1,674 T he weighted-average amortization periods for definite-lived intangible assets acquired in 2019 are 14 years for customer relationships, 13 years for product technology and 2 years for tradenames. The weighted average amortization period for all definite-lived intangible assets acquired in 2019 is 14 years . Disposition On June 28, 2019, the company sold its Anatomical Pathology business to PHC Holdings Corporation for $1.13 billion , net of cash divested. The business was part of the Specialty Diagnostics segment. The sale of this business resulted in a pre-tax gain of approximately $482 million , included in restructuring and other (income) costs, net. Revenues in 2019, through the date of sale, and the full year 2018 of the business sold were approximately $115 million and $238 million , respectively, net of retained sales through the company's healthcare market and research and safety market channel businesses. The assets and liabilities of the Anatomical Pathology business were as follows on December 31, 2018: (In millions) December 31, 2018 Current Assets $ 81 Long-term Assets 528 Current Liabilities 34 Long-term Liabilities 24 |
Revenue
Revenue | 9 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Note 3 . Revenue Disaggregated Revenue Revenue by type is as follows: Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (In millions) 2019 2018 2019 2018 Revenues Consumables 3,228 3,056 $ 9,726 9,345 Instruments 1,570 1,515 4,619 4,462 Services 1,474 1,349 4,368 4,044 Consolidated revenues $ 6,272 $ 5,920 $ 18,713 $ 17,851 Revenue by geographic region is as follows: Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (In millions) 2019 2018 2019 2018 Revenues (a) North America $ 3,220 $ 3,030 $ 9,509 $ 8,975 Europe 1,514 1,454 4,569 4,521 Asia-Pacific 1,349 1,251 4,080 3,809 Other regions 189 185 555 546 Consolidated revenues $ 6,272 $ 5,920 $ 18,713 $ 17,851 (a) Revenues are attributed to regions based on customer location. Each reportable segment earns revenues from consumables, instruments and services in North America, Europe, Asia-Pacific and other regions. See Note 4 for revenue by reportable segment and other geographic data. Remaining Performance Obligations The aggregate amount of the transaction price allocated to the remaining performance obligations for all open customer contracts as of September 28, 2019 was $6.76 billion . The company will recognize revenue for these performance obligations as they are satisfied, approximately 70% of which is expected to occur within the next twelve months . |
Business Segment and Geographic
Business Segment and Geographical Information | 9 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Business Segment and Geographical Information [Text Block] | Note 4 . Business Segment and Geographical Information 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 Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (In millions) 2019 2018 2019 2018 Revenues Life Sciences Solutions $ 1,701 $ 1,504 $ 5,018 $ 4,572 Analytical Instruments 1,358 1,333 4,004 3,901 Specialty Diagnostics 879 894 2,779 2,773 Laboratory Products and Services 2,619 2,470 7,765 7,433 Eliminations (285 ) (281 ) (853 ) (828 ) Consolidated revenues 6,272 5,920 18,713 17,851 Segment Income (a) Life Sciences Solutions 586 495 1,756 1,534 Analytical Instruments 311 294 879 831 Specialty Diagnostics 223 223 707 719 Laboratory Products and Services 303 299 933 916 Subtotal reportable segments (a) 1,423 1,311 4,275 4,000 Cost of revenues (charges) credits, net (5 ) 1 (16 ) (7 ) Selling, general and administrative (charges) credits, net (7 ) 4 (54 ) (7 ) Restructuring and other (costs) income, net (31 ) 27 442 (35 ) Amortization of acquisition-related intangible assets (434 ) (431 ) (1,285 ) (1,316 ) Consolidated operating income 946 912 3,362 2,635 Other expense, net (b) (124 ) (102 ) (330 ) (385 ) Income before income taxes $ 822 $ 810 $ 3,032 $ 2,250 (a) Represents operating income before certain charges to cost of revenues and selling, general and administrative expenses; restructuring and other costs/income, net; and amortization of acquisition-related intangibles. (b) The company does not allocate other expense, net to its segments. Geographical Information Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (In millions) 2019 2018 2019 2018 Revenues (c) United States $ 3,096 $ 2,918 $ 9,117 $ 8,588 China 694 629 2,072 1,818 Other 2,482 2,373 7,524 7,445 Consolidated revenues $ 6,272 $ 5,920 $ 18,713 $ 17,851 (c) Revenues are attributed to countries based on customer location. |
Other Expense, Net
Other Expense, Net | 9 Months Ended |
Sep. 28, 2019 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net [Text Block] | Note 5 . Other Expense, Net The components of other expense, net, in the accompanying statement of income are as follows: Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (In millions) 2019 2018 2019 2018 Interest Income $ 52 $ 41 $ 179 $ 92 Interest Expense (164 ) (162 ) (534 ) (495 ) Other Items, Net (12 ) 19 25 18 Other Expense, Net $ (124 ) $ (102 ) $ (330 ) $ (385 ) Other Items, Net In all periods, other items, net includes currency transaction gains and losses on monetary assets and liabilities and net periodic pension benefit cost/income, excluding the service cost component which is included in operating expenses on the accompanying statement of income. In 2019, other items, net in the above table includes $42 million of losses on the early extinguishment of debt (see Note 8 ). As discussed in Note 15 , the company incurred additional losses on the early extinguishment of debt in the fourth quarter of 2019. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | Note 6 . Income Taxes The provision for income taxes in the accompanying statement of income differs from the provision calculated by applying the statutory federal income tax rate to income before provision for income taxes due to the following: Nine Months Ended September 28, September 29, (In millions) 2019 2018 Statutory Federal Income Tax Rate 21 % 21 % Provision for Income Taxes at Statutory Rate $ 637 $ 473 Increases (Decreases) Resulting From: Foreign rate differential (172 ) (177 ) Foreign exchange loss on inter-company debt refinancing (62 ) — Income tax credits (242 ) (183 ) Global intangible low-taxed income 160 124 Foreign-derived intangible income (68 ) (34 ) Withholding taxes 30 — Singapore tax holiday (20 ) (29 ) Transition tax and other impacts of U.S. tax reform 8 117 Provision for (reversal of) tax reserves, net 16 (49 ) Excess tax benefits from stock options and restricted stock units (68 ) (59 ) Basis difference on disposal of business 72 — Other, net 47 27 Provision for income taxes $ 338 $ 210 The company has operations and a taxable presence in approximately 50 countries outside the U.S. Some of these countries have lower tax rates than the U.S. The company’s ability to obtain a benefit from lower tax rates outside the U.S. is dependent on its relative levels of income in countries outside the U.S. and on the statutory tax rates in those countries. In 2019, the company recorded a $62 million income tax benefit related to a foreign exchange loss for tax purposes on certain intercompany financing arrangements as well as a tax provision of $191 million related to the gain on sale of the Anatomical Pathology business. In addition, the company implemented foreign tax credit planning in Sweden which resulted in $75 million of foreign tax credits, with no related incremental U.S. income tax expense. During 2019, the company recorded a net tax provision of $1 million to adjust the impacts of U.S. tax reform based on final regulations issued by the U.S. Treasury in 2019. The income tax provision consists of an incremental charge of $8 million offset by a $7 million reduction of related unrecognized tax benefits. The company has significant operations 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 2019 and 2018 , the impact of this tax holiday decreased the annual effective tax rates by 0.6 percentage points and 1.3 percentage points, respectively, and increased diluted earnings per share by approximately $0.05 and $0.07 , respectively. Unrecognized Tax Benefits As of September 28, 2019 , the company had $1.47 billion of unrecognized tax benefits substantially all of 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) 2019 Balance at Beginning of Year $ 1,442 Additions for tax positions of current year 6 Additions for tax positions of prior years 35 Reductions for tax positions of prior years (7 ) Settlements (5 ) Balance at End of Period $ 1,471 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 7 . Earnings per Share Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (In millions except per share amounts) 2019 2018 2019 2018 Net Income $ 760 $ 709 $ 2,694 $ 2,040 Basic Weighted Average Shares 401 402 400 402 Plus Effect of: Stock options and restricted units 3 4 3 4 Diluted Weighted Average Shares 404 406 403 406 Basic Earnings per Share $ 1.89 $ 1.76 $ 6.73 $ 5.07 Diluted Earnings per Share $ 1.88 $ 1.75 $ 6.68 $ 5.03 Antidilutive Stock Options Excluded from Diluted Weighted Average Shares 1 2 1 2 |
Debt and Other Financing Arrang
Debt and Other Financing Arrangements | 9 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Other Financing Arrangements [Text Block] | Note 8 . Debt and Other Financing Arrangements Effective Interest Rate at September 28, September 28, December 31, (Dollars in millions) 2019 2019 2018 Commercial Paper 0.84 % $ 683 $ 693 Floating Rate 2-Year Senior Notes, Due 7/24/2019 (euro-denominated) — 574 6.00% 10-Year Senior Notes, Due 3/1/2020 2.99 % 750 750 4.70% 10-Year Senior Notes, Due 5/1/2020 — 300 Floating Rate 2-Year Senior Notes, Due 8/7/2020 (euro-denominated) 0.16 % 656 688 1.50% 5-Year Senior Notes, Due 12/1/2020 (euro-denominated) 1.62 % 465 487 5.00% 10-Year Senior Notes, Due 1/15/2021 3.25 % 400 400 4.50% 10-Year Senior Notes, Due 3/1/2021 5.66 % 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 3.42 % 800 800 2.15% 7-Year Senior Notes, Due 7/21/2022 (euro-denominated) 2.27 % 547 574 3.15% 10-Year Senior Notes, Due 1/15/2023 — 800 3.00% 7-Year Senior Notes, Due 4/15/2023 5.29 % 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) 0.93 % 1,094 1,147 2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) 2.09 % 700 734 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 % 766 802 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) 1.65 % 547 574 3.20% 10-Year Senior Notes, Due 8/15/2027 3.39 % 750 750 1.375% 12-Year Senior Notes, Due 9/12/2028 (euro-denominated) 1.46 % 656 688 1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) 2.08 % 766 802 2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) 2.94 % 766 802 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 % 750 750 Other 20 21 Total Borrowings at Par Value 17,166 19,186 Fair Value Hedge Accounting Adjustments (10 ) (93 ) Unamortized Discount, Net (34 ) (21 ) Unamortized Debt Issuance Costs (69 ) (82 ) Total Borrowings at Carrying Value 17,053 18,990 Less: Short-term Obligations and Current Maturities 661 1,271 Long-term Obligations $ 16,392 $ 17,719 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 discussed in Note 15 , early in the fourth quarter of 2019, the company issued new long-term senior notes and is using the proceeds to redeem the outstanding commercial paper, the 6.00% Senior Notes due 2020, the 1.5% Senior Notes due 2020, the 5.00% Senior Notes due 2021, the 4.50% Senior Notes due 2021, the 3.60% Senior Notes due 2021 and the 3.30% Senior Notes due 2022 included in the table above. Accordingly, all of this debt has been reported as long-term at September 28, 2019. 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 facilities 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 3.5 :1.0. 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 September 28, 2019 , no borrowings were outstanding under the Facility, although available capacity was reduced by approximately $80 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 September 28, 2019 , outstanding borrowings under these programs were $683 million with a weighted average remaining period to maturity of 41 days . 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 and 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 September 2019, the company redeemed its 4.70% Senior Notes due 2020 and its 3.15% Senior Notes due 2023. In connection with these redemptions, the company incurred $42 million of losses on the early extinguishment of debt included in Other Expense, Net on the accompanying statement of income. In 2018, Thermo Fisher Scientific (Finance I) B.V., a wholly-owned finance subsidiary of the company, issued the Floating Rate Senior Notes due 2020 included in the table above. This subsidiary has no independent function other than financing activities. The Floating Rate Senior Notes due 2020 are fully and unconditionally guaranteed by the company and no other subsidiaries of the company have guaranteed the obligations. Interest Rate Swap Arrangements and related Cross-currency Interest Rate Swap Arrangements 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 on the interest rate swap arrangements and related cross-currency interest rate swap arrangements. The following table summarizes the outstanding interest rate swap arrangements on the company's senior notes at September 28, 2019 : Aggregate Notional Amount Pay Rate as of (Dollars in millions) Pay Rate September 28, Receive Rate 4.50% Senior Notes due 2021 (a) 1,000 1-month LIBOR + 3.4420% 5.5310 % 4.50 % 3.60% Senior Notes due 2021 (a) 1,100 1-month LIBOR + 2.5150% 4.5425 % 3.60 % 3.00% Senior Notes due 2023 (a) 1,000 1-month LIBOR + 1.7640% 3.7915 % 3.00 % (a) The payments on $1.8 billion notional value of these interest rate swaps are offset in part by cross-currency interest rate swaps which effectively reduced the pay rate as of September 28, 2019 from a weighted average of 4.50% to a weighted average of 1.78% . The company has entered into $1.8 billion notional value of cross-currency interest rate swaps, which effectively convert a portion of the semi-annual payments related to the variable rate, U.S. dollar denominated, LIBOR-based interest rate swaps to payments on variable rate, euro denominated, EURIBOR-based cross-currency interest rate swaps. As discussed above and in Note 15 , early in the fourth quarter of 2019, the company redeemed its 4.50% Senior Notes due 2021 and its 3.60% Senior Notes due 2021 and settled the related interest rate and cross-currency interest rate swaps. |
Leases
Leases | 9 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Note 9 . Leases As a lessee, the company leases certain logistics, office, and manufacturing facilities, as well as vehicles, copiers, and other equipment. These operating leases generally have remaining lease terms between 1 month and 30 years , and some include options to extend (generally for 1 to 10 years ) or have options to terminate the arrangement within 1 year . The company’s finance leases are not material. The company has guaranteed the residual value of three leased operating facilities with lease terms ending in 2020, 2023 and 2024. The company has agreed with the lessor to comply with certain financial covenants consistent with its other debt arrangements (Note 8 ). The aggregate maximum guarantee under these three lease arrangements is $147 million . Operating lease ROU assets and lease liabilities for these lease arrangements are recorded on the consolidated balance sheet as of September 28, 2019 , but exclude any amounts for residual value guarantees. As a lessee, the consolidated statement of income includes pre-tax operating lease costs of $51 million and $149 million and pre-tax variable lease costs of $10 million and $31 million for the three and nine months ended September 28, 2019 , respectively. Lease costs arising from finance leases, short-term leases, and sublease income are not material. Cash used in operating activities for payments of amounts included in the measurement of operating lease liabilities was $149 million in the nine months ended September 28, 2019 . Operating lease ROU assets of $108 million were obtained in exchange for new operating lease liabilities in the nine months ended September 28, 2019 . The weighted-average remaining operating lease term was 6.3 years and the weighted average discount rate was 4.0% as of September 28, 2019 . ROU assets of $645 million as of September 28, 2019 , are classified in other assets in the consolidated balance sheet. Operating lease liabilities of $158 million and $529 million as of September 28, 2019 , are classified in other accrued expenses and other long-term liabilities, respectively, in the consolidated balance sheet. As of September 28, 2019 , future payments of operating lease liabilities are as follows: (In millions) Remainder of 2019 $ 51 2020 180 2021 138 2022 106 2023 76 2024 55 2025 and Thereafter 175 Total Lease Payments 781 Less: Imputed Interest 94 Total Operating Lease Liability $ 687 As a lessor, operating leases, sales-type leases and direct financing leases are not material. As previously disclosed in the company's 2018 Annual Report on Form 10-K and under previous lease accounting guidance, the following is a summary of annual future minimum lease and rental commitments under noncancelable operating leases as of December 31, 2018 : (In millions) 2019 $ 192 2020 158 2021 118 2022 86 2023 58 2024 and Thereafter 177 $ 789 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Text Block] | Note 10 . Commitments and Contingencies 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 September 28, 2019 , the company’s total environmental liability was approximately $63 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 or in the company's 2018 financial statements and notes included in the company's Annual Report on Form 10-K filed with the SEC, 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 For product liability, workers compensation and other personal injury matters, the company accrues the most likely amount or at least the minimum of the range of possible loss when a range of possible loss can be estimated. The company records estimated amounts due from insurers related to certain product liabilities as an asset. 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 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 (PTAB) that found the challenged patent claims invalid. The United States Court of Appeals for the Federal Circuit upheld the PTAB’s ruling finding the challenged claims in the Unisone patent invalid. Unisone had until March 11, 2019 to file an appeal with the United States Supreme Court. Unisone did not appeal that decision, and consequently the case before the United States District Court, which had been stayed pending the outcome of the PTAB decision, has resumed with respect to similar Unisone patent claims that were not included in the PTAB proceeding. |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Sep. 28, 2019 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income and Shareholders' Equity [Text Block] | Note 11 . Comprehensive Income Comprehensive income 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. Changes in each component of accumulated other comprehensive items, net of tax, are as follows: (In millions) Currency Unrealized Pension and Total Balance at December 31, 2018 $ (2,243 ) $ (52 ) $ (203 ) $ (2,498 ) Other comprehensive items before reclassifications (222 ) (38 ) (9 ) (269 ) Amounts reclassified from accumulated other comprehensive items 30 7 8 45 Net other comprehensive items (192 ) (31 ) (1 ) (224 ) Balance at September 28, 2019 $ (2,435 ) $ (83 ) $ (204 ) $ (2,722 ) |
Fair Value Measurements and Fai
Fair Value Measurements and Fair Value of Financial Instruments | 9 Months Ended |
Sep. 28, 2019 | |
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 2019 . 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 September 28, 2019 and December 31, 2018 : September 28, Quoted Significant Significant (In millions) 2019 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 166 $ 166 $ — $ — Investments in common stock, mutual funds and other similar instruments 19 19 — — Warrants 6 — 6 — Insurance contracts 130 — 130 — Derivative contracts 114 — 114 — Total Assets $ 435 $ 185 $ 250 $ — Liabilities Derivative contracts $ 44 $ — $ 44 $ — Contingent consideration 55 — — 55 Total Liabilities $ 99 $ — $ 44 $ 55 December 31, Quoted Significant Significant (In millions) 2018 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 769 $ 769 $ — $ — Bank time deposits 2 2 — — Investments in mutual funds and other similar instruments 10 10 — — Warrants 8 — 8 — Insurance contracts 113 — 113 — Derivative contracts 31 — 31 — Total Assets $ 933 $ 781 $ 152 $ — Liabilities Derivative contracts $ 145 $ — $ 145 $ — Contingent consideration 37 — — 37 Total Liabilities $ 182 $ — $ 145 $ 37 The company uses the Black-Scholes model to value its warrants. 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 following table provides a rollforward of the fair value, as determined by level 3 inputs, of the contingent consideration. Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (In millions) 2019 2018 2019 2018 Contingent Consideration Beginning Balance $ 58 $ 40 $ 37 $ 35 Acquisitions (including assumed balances) — — 24 11 Payments (3 ) (3 ) (3 ) (8 ) Change in fair value included in earnings — (3 ) (3 ) (4 ) Ending Balance $ 55 $ 34 $ 55 $ 34 Derivative Contracts The following table provides the aggregate notional value of outstanding derivative contracts. September 28, December 31, (In millions) 2019 2018 Notional Amount Interest rate swaps (described in Note 8) $ 3,100 $ 3,100 Cross-currency interest rate swaps - designated as net investment hedges 1,800 1,500 Currency exchange contracts 5,693 3,424 As discussed in Note 15 , early in the fourth quarter of 2019, the company settled certain of its interest rate swaps and cross-currency interest rate swaps upon the redemption of the related debt securities. 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 September 28, December 31, September 28, December 31, (In millions) 2019 2018 2019 2018 Derivatives Designated as Hedging Instruments Interest rate swaps (a) $ — $ — $ 31 $ 129 Cross-currency interest rate swaps (b) 107 28 — — Derivatives Not Designated as Hedging Instruments Currency exchange contracts (c) 7 3 13 16 Total Derivatives $ 114 $ 31 $ 44 $ 145 (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 cross-currency interest rate swaps is included in the consolidated balance sheet under the caption other assets. (c) 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. The following amounts related to cumulative basis adjustments for fair value hedges were included in the consolidated balance sheet under the caption long-term obligations: Carrying Amount of the Hedged Liability Cumulative Amount of Fair Value Hedging Adjustment - Increase (Decrease) Included in Carrying Amount of Liability (d) September 28, December 31, September 28, December 31, (In millions) 2019 2018 2019 2018 Long-term Obligations $ 3,078 $ 3,291 $ (10 ) $ (93 ) (d) Includes increases in the carrying amount of $20 million and $30 million at September 28, 2019 and December 31, 2018 , respectively, on discontinued hedging relationships. Gain (Loss) Recognized Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (In millions) 2019 2018 2019 2018 Fair Value Hedging Relationships Interest rate swaps Hedged long-term obligations - included in other expense, net $ (14 ) $ 8 $ (95 ) $ 60 Derivatives designated as hedging instruments - included in other expense, net 15 (8 ) 98 (57 ) Derivatives Designated as Cash Flow Hedges Interest rate swaps Included in unrealized losses on hedging instruments within other comprehensive items (50 ) — (50 ) — Amount reclassified from accumulated other comprehensive items to other expense, net (3 ) (3 ) (10 ) (9 ) Financial Instruments Designated as Net Investment Hedges Foreign currency-denominated debt Included in currency translation adjustment within other comprehensive items 261 50 320 250 Cross-currency interest rate swaps Included in currency translation adjustment within other comprehensive items 72 5 79 8 Included in other expense, net 13 9 41 12 Derivatives Not Designated as Hedging Instruments Currency exchange contracts Included in cost of product revenues 1 1 — 1 Included in other expense, net 43 (2 ) 49 25 Gains and losses recognized on currency exchange contracts and the interest rate swaps designated as fair value hedges are included in the consolidated statement of income together with the corresponding, offsetting losses and gains on the underlying hedged transactions. The company also uses foreign currency-denominated debt and cross-currency interest rate swaps to partially hedge its net investments in foreign operations against adverse movements in exchange rates. The majority of the company’s euro-denominated senior notes and cross-currency interest rate swaps 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 and contract fair value changes on the cross-currency interest rate swaps, excluding interest accruals, are included in currency translation adjustment within other comprehensive items and shareholders’ equity. See Note 1 to the consolidated financial statements for 2018 included in the company's Annual Report on Form 10-K and Note 8 herein for additional information on the company's risk management objectives and strategies. Cash Flow Hedge Arrangements In September 2019, the company entered into interest rate swap arrangements to mitigate the risk of interest rates rising prior to completion of debt offerings. Based on the company's conclusion that the debt offerings were probable, the swaps hedged the cash flow risk for each of the interest payments on €1.80 billion plus $900 million aggregate principal amounts of the planned fixed-rate debt issues. The hedges were terminated in the third quarter of 2019, in connection with the early fourth quarter debt offerings (Note 15 ). The aggregate fair value of the hedges at that time, $38 million , net of tax, has been classified as a reduction to accumulated other comprehensive items and will be amortized to interest expense over the terms of the related debt issuances. The company had a cash outlay of $50 million in 2019 associated with termination of the arrangements, included in other financing activities, net, in the accompanying statement of cash flows. Fair Value of Other Financial Instruments The carrying value and fair value of the company’s notes receivable and debt obligations are as follows: September 28, 2019 December 31, 2018 Carrying Fair Carrying Fair (In millions) Value Value Value Value Debt Obligations: Senior notes $ 16,350 $ 17,513 $ 18,276 $ 18,322 Commercial paper 683 683 693 693 Other 20 20 21 21 $ 17,053 $ 18,216 $ 18,990 $ 19,036 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 | 9 Months Ended |
Sep. 28, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information [Text Block] | Note 13 . Supplemental Cash Flow Information Nine Months Ended September 28, September 29, (In millions) 2019 2018 Non-cash Investing and Financing Activities Declared but unpaid dividends $ 77 $ 69 Issuance of stock upon vesting of restricted stock units 179 167 Cash, cash equivalents and restricted cash is included in the consolidated balance sheet as follows: September 28, December 31, (In millions) 2019 2018 Cash and Cash Equivalents $ 1,273 $ 2,103 Restricted Cash Included in Other Current Assets 31 12 Restricted Cash Included in Other Assets 1 2 Cash, Cash Equivalents and Restricted Cash $ 1,305 $ 2,117 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 (Income), Net | 9 Months Ended |
Sep. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs, Net [Text Block] | Note 14 . Restructuring and Other Costs (Income), Net Restructuring and other costs (income), net, in the first nine months of 2019 primarily included the gain on the sale of the company's Anatomical Pathology business, and, to a lesser extent, transaction/integration costs related to acquisitions and a divestiture; sales of inventories revalued at the date of acquisition; and 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. and Europe. In the first nine months of 2019 , severance actions associated with facility consolidations and cost reduction measures affected approximately 1% of the company’s workforce. As of November 1, 2019 , the company has identified restructuring actions that will result in additional charges of approximately $80 million , primarily in 2019 and 2020, and expects to identify additional actions during 2019 which will be recorded when specified criteria are met, such as communication of benefit arrangements or when the costs have been incurred. During the third quarter of 2019 , the company recorded net restructuring and other costs (income) by segment as follows: (In millions) Cost of Selling, Restructuring Total Life Sciences Solutions $ 5 $ — $ 3 $ 8 Analytical Instruments — — 1 1 Specialty Diagnostics — — 23 23 Laboratory Products and Services — 8 4 12 Corporate — (1 ) — (1 ) $ 5 $ 7 $ 31 $ 43 During the first nine months of 2019 , the company recorded net restructuring and other costs (income) by segment as follows: (In millions) Cost of Selling, Restructuring Total Life Sciences Solutions $ 16 $ — $ 14 $ 30 Analytical Instruments — 24 10 34 Specialty Diagnostics — 4 (480 ) (476 ) Laboratory Products and Services — 27 12 39 Corporate — (1 ) 2 1 $ 16 $ 54 $ (442 ) $ (372 ) The principal components of net restructuring and other costs (income) by segment are as follows: Life Sciences Solutions In the first nine months of 2019 , the Life Sciences Solutions segment recorded $30 million of net restructuring and other costs, principally charges to cost of revenues of $16 million for the sales of inventory revalued at the date of acquisition. The segment also recorded $14 million of restructuring and other charges for the impairment of acquired technology in development, and severance and other costs associated with facility consolidations in the U.S. and Europe. Analytical Instruments In the first nine months of 2019 , the Analytical Instruments segment recorded $34 million of net restructuring and other charges, including $24 million of charges to selling, general, and administrative expense, principally transaction costs related to the acquisition of Gatan, subsequently terminated. The segment also recorded $10 million of restructuring and other costs, primarily for employee severance and other costs associated with facility consolidations in the U.S. and Europe. Specialty Diagnostics In the first nine months of 2019 , the Specialty Diagnostics segment recorded $476 million of net restructuring and other income, primarily a gain on the divestiture of its Anatomical Pathology business (see Note 2). The segment also recorded $4 million of charges to selling, general, and administrative expense for transaction costs in connection with the sale of the Anatomical Pathology business. Laboratory Products and Services In the first nine months of 2019 , the Laboratory Products and Services segment recorded $39 million of net restructuring and other charges. The segment recorded $27 million of charges to selling, general, and administrative expense, principally transaction costs related to the acquisition and integration of Brammer Bio. The segment also recorded $12 million of restructuring and other costs, primarily for employee severance at businesses streamlining operations and employee compensation due at Brammer Bio on the date of acquisition. Corporate In the first nine months of 2019 , the company recorded $1 million of net restructuring and other costs for severance at its corporate operations, partially offset by income from favorable results of product liability litigation. 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 (income), 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, 2018 $ 34 $ 42 $ 4 $ 80 Cumulative effect of accounting change (b) — (28 ) — (28 ) Costs incurred in 2019 (d) 25 3 9 37 Reserves reversed (c) (3 ) (1 ) — (4 ) Payments (29 ) (8 ) (8 ) (45 ) Currency translation (1 ) — — (1 ) Balance at September 28, 2019 $ 26 $ 8 $ 5 $ 39 (a) Other includes 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) Impact of adopting new lease accounting guidance on January 1, 2019. (c) Represents reductions in cost of plans. (d) Excludes $486 million net gain on the sale of businesses; $6 million of impairment of acquired in-process research and development; $3 million of compensation due to employees on the date of acquisition; and $2 million of other non-cash charges, net. The company expects to pay accrued restructuring costs primarily through 2019 . |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 28, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events Debt Issuances and Redemptions Early in the fourth quarter of 2019, the company issued the following senior notes: (In millions) Principal Value Issued 0.125% 5.5-Year Senior Notes, Due 3/1/2025 (euro-denominated) € 800 0.500% 8.5-Year Senior Notes, Due 3/1/2028 (euro-denominated) € 800 2.600% 10-Year Senior Notes, Due 10/1/2029 $ 900 0.875% 12-Year Senior Notes, Due 10/1/2031 (euro-denominated) € 900 1.500% 20-Year Senior Notes, Due 10/1/2039 (euro-denominated) € 900 1.875% 30-Year Senior Notes, Due 10/1/2049 (euro-denominated) € 1,000 Net proceeds from the issuance of the notes in the table above was approximately $5.6 billion , after deducting underwriting discounts and estimated offering expenses. The company is using the proceeds to repay commercial paper obligations and to redeem the following senior notes: (In millions) Principal Value Redeemed 6.00% 10-Year Senior Notes, Due 3/1/2020 $ 750 1.50% 5-Year Senior Notes, Due 12/1/2020 (euro-denominated) € 425 5.00% 10-Year Senior Notes, Due 1/15/2021 $ 400 4.50% 10-Year Senior Notes, Due 3/1/2021 $ 1,000 3.60% 10-Year Senior Notes, Due 8/15/2021 $ 1,100 3.30% 7-Year Senior Notes, Due 2/15/2022 $ 800 In connection with the redemptions, the company paid $21 million upon the termination of the fixed to floating rate swap arrangements on the redeemed senior notes and received $47 million upon termination of the related cross-currency interest rate swap arrangements (see Note 8 ). The company incurred approximately $142 million of losses on the early extinguishment of debt in October 2019 due to the redemptions and related interest rate swap terminations discussed above. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Lessee, Leases [Policy Text Block] | Leases The company determines whether an arrangement is, or contains, a lease at inception. Prior to 2019, the company generally accounted for operating lease payments by charging them to expense as incurred. Beginning in 2019, operating leases that have commenced are included in other assets, other accrued expenses and other long-term liabilities in the consolidated balance sheet. Classification of operating lease liabilities as either current or noncurrent is based on the expected timing of payments due under the company’s obligations. Right-of-use (ROU) assets represent the company’s right to use an underlying asset for the lease term and lease liabilities represent the company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. The company recognizes lease expense for these leases on a straight-line basis over the lease term. Because most of the company’s leases do not provide an implicit rate, the company estimates incremental borrowing rates based on the information available at the commencement date in determining the present value of lease payments. The company uses the implicit rate when readily determinable. Lease terms may include the effect of options to extend or terminate the lease when it is reasonably certain that the company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. As a lessee, the company accounts for the lease and non-lease components as a single lease component. |
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. Actual results could differ from those estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In August 2018, the FASB issued new guidance to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The company expects to adopt the guidance when it is effective in 2020 using a retrospective method. The adoption of this guidance is not expected to have a material impact on the company’s disclosures. In August 2018, the FASB issued new guidance to modify the disclosure requirements on fair value measurements. The company expects to adopt the guidance when it is effective in 2020 with some items requiring a prospective method and others requiring a retrospective method. The adoption of this guidance is not expected to have a material impact on the company’s disclosures. In June 2016, the FASB issued new guidance to require a financial asset measured at amortized cost basis, such as accounts receivable, to be presented at the net amount expected to be collected based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. During 2018 and 2019, the FASB issued additional guidance and clarification. The company expects to adopt the guidance when it is effective in 2020 using a modified retrospective method. The adoption of this guidance is not expected to have a material impact on the company’s consolidated financial statements. 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. During 2017 - 2019, the FASB issued additional guidance and clarification. The guidance became effective for the company in 2019. The company has elected to adopt the guidance using a modified retrospective method, by applying the transition approach as of the beginning of the period of adoption. Comparative periods have not been restated. As permitted upon transition, the company did not reassess whether any expired or existing contracts were or contained embedded leases, the lease classification for any expired or existing leases, initial direct costs for any leases, or whether land easements met the definition of a lease if they were not accounted for as leases under the prior guidance. Adoption of the new guidance impacted the company’s Consolidated Balance Sheet as follows: (In millions) December 31, Impact of Adopting New Lease Guidance January 1, Other Assets $ 1,117 $ 641 $ 1,758 Other Accrued Expenses 1,470 132 1,602 Other Long-term Liabilities 2,515 505 3,020 Retained Earnings 18,696 4 18,700 |
Business Combinations Policy [Policy Text Block] | 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 acquisition 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. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Policies) | 9 Months Ended |
Sep. 28, 2019 | |
Business Combinations [Abstract] | |
Business Combinations Policy [Policy Text Block] | 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 acquisition 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. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | Contract asset and liability balances are as follows: September 28, December 31, (In millions) 2019 2018 Current Contract Assets, Net $ 609 $ 459 Noncurrent Contract Assets, Net 14 15 Current Contract Liabilities 943 809 Noncurrent Contract Liabilities 562 355 |
Warranty Obligations [Table Text Block] | Warranty Obligations The liability for warranties is included in other accrued expenses in the accompanying balance sheet. The changes in the carrying amount of standard product warranty obligations are as follows: Nine Months Ended September 28, September 29, (In millions) 2019 2018 Beginning Balance $ 92 $ 87 Provision charged to income 80 89 Usage (83 ) (80 ) Adjustments to previously provided warranties, net (1 ) (3 ) Currency translation (2 ) (2 ) Ending Balance $ 86 $ 91 |
Inventories [Table Text Block] | Inventories The components of inventories are as follows: September 28, December 31, (In millions) 2019 2018 Raw Materials $ 943 $ 812 Work in Process 514 430 Finished Goods 1,851 1,763 Inventories $ 3,308 $ 3,005 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | (In millions) December 31, Impact of Adopting New Lease Guidance January 1, Other Assets $ 1,117 $ 641 $ 1,758 Other Accrued Expenses 1,470 132 1,602 Other Long-term Liabilities 2,515 505 3,020 Retained Earnings 18,696 4 18,700 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The components of the purchase price and net assets acquired for Brammer Bio are as follows: (In millions) Brammer Bio Purchase Price Cash paid $ 1,710 Cash acquired (36 ) $ 1,674 Net Assets Acquired Current assets $ 52 Property, plant and equipment 147 Definite-lived intangible assets: Customer relationships 744 Product technology 65 Tradenames 7 Goodwill 938 Other assets 49 Contract liabilities (109 ) Deferred tax liabilities (111 ) Other liabilities assumed (108 ) $ 1,674 |
Disposal Groups, Including Discontinued Operations [Table Text Block] | (In millions) December 31, 2018 Current Assets $ 81 Long-term Assets 528 Current Liabilities 34 Long-term Liabilities 24 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregated Revenue Revenue by type is as follows: Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (In millions) 2019 2018 2019 2018 Revenues Consumables 3,228 3,056 $ 9,726 9,345 Instruments 1,570 1,515 4,619 4,462 Services 1,474 1,349 4,368 4,044 Consolidated revenues $ 6,272 $ 5,920 $ 18,713 $ 17,851 Revenue by geographic region is as follows: Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (In millions) 2019 2018 2019 2018 Revenues (a) North America $ 3,220 $ 3,030 $ 9,509 $ 8,975 Europe 1,514 1,454 4,569 4,521 Asia-Pacific 1,349 1,251 4,080 3,809 Other regions 189 185 555 546 Consolidated revenues $ 6,272 $ 5,920 $ 18,713 $ 17,851 (a) Revenues are attributed to regions based on customer location. |
Business Segment and Geograph_2
Business Segment and Geographical Information (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Business Segment Information Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (In millions) 2019 2018 2019 2018 Revenues Life Sciences Solutions $ 1,701 $ 1,504 $ 5,018 $ 4,572 Analytical Instruments 1,358 1,333 4,004 3,901 Specialty Diagnostics 879 894 2,779 2,773 Laboratory Products and Services 2,619 2,470 7,765 7,433 Eliminations (285 ) (281 ) (853 ) (828 ) Consolidated revenues 6,272 5,920 18,713 17,851 Segment Income (a) Life Sciences Solutions 586 495 1,756 1,534 Analytical Instruments 311 294 879 831 Specialty Diagnostics 223 223 707 719 Laboratory Products and Services 303 299 933 916 Subtotal reportable segments (a) 1,423 1,311 4,275 4,000 Cost of revenues (charges) credits, net (5 ) 1 (16 ) (7 ) Selling, general and administrative (charges) credits, net (7 ) 4 (54 ) (7 ) Restructuring and other (costs) income, net (31 ) 27 442 (35 ) Amortization of acquisition-related intangible assets (434 ) (431 ) (1,285 ) (1,316 ) Consolidated operating income 946 912 3,362 2,635 Other expense, net (b) (124 ) (102 ) (330 ) (385 ) Income before income taxes $ 822 $ 810 $ 3,032 $ 2,250 (a) Represents operating income before certain charges to cost of revenues and selling, general and administrative expenses; restructuring and other costs/income, net; and amortization of acquisition-related intangibles. (b) The company does not allocate other expense, net to its segments. |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Business Segment Information Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (In millions) 2019 2018 2019 2018 Revenues Life Sciences Solutions $ 1,701 $ 1,504 $ 5,018 $ 4,572 Analytical Instruments 1,358 1,333 4,004 3,901 Specialty Diagnostics 879 894 2,779 2,773 Laboratory Products and Services 2,619 2,470 7,765 7,433 Eliminations (285 ) (281 ) (853 ) (828 ) Consolidated revenues 6,272 5,920 18,713 17,851 Segment Income (a) Life Sciences Solutions 586 495 1,756 1,534 Analytical Instruments 311 294 879 831 Specialty Diagnostics 223 223 707 719 Laboratory Products and Services 303 299 933 916 Subtotal reportable segments (a) 1,423 1,311 4,275 4,000 Cost of revenues (charges) credits, net (5 ) 1 (16 ) (7 ) Selling, general and administrative (charges) credits, net (7 ) 4 (54 ) (7 ) Restructuring and other (costs) income, net (31 ) 27 442 (35 ) Amortization of acquisition-related intangible assets (434 ) (431 ) (1,285 ) (1,316 ) Consolidated operating income 946 912 3,362 2,635 Other expense, net (b) (124 ) (102 ) (330 ) (385 ) Income before income taxes $ 822 $ 810 $ 3,032 $ 2,250 (a) Represents operating income before certain charges to cost of revenues and selling, general and administrative expenses; restructuring and other costs/income, net; and amortization of acquisition-related intangibles. (b) The company does not allocate other expense, net to its segments. |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Geographical Information Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (In millions) 2019 2018 2019 2018 Revenues (c) United States $ 3,096 $ 2,918 $ 9,117 $ 8,588 China 694 629 2,072 1,818 Other 2,482 2,373 7,524 7,445 Consolidated revenues $ 6,272 $ 5,920 $ 18,713 $ 17,851 (c) Revenues are attributed to countries based on customer location. |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
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: Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (In millions) 2019 2018 2019 2018 Interest Income $ 52 $ 41 $ 179 $ 92 Interest Expense (164 ) (162 ) (534 ) (495 ) Other Items, Net (12 ) 19 25 18 Other Expense, Net $ (124 ) $ (102 ) $ (330 ) $ (385 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
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 to income before provision for income taxes due to the following: Nine Months Ended September 28, September 29, (In millions) 2019 2018 Statutory Federal Income Tax Rate 21 % 21 % Provision for Income Taxes at Statutory Rate $ 637 $ 473 Increases (Decreases) Resulting From: Foreign rate differential (172 ) (177 ) Foreign exchange loss on inter-company debt refinancing (62 ) — Income tax credits (242 ) (183 ) Global intangible low-taxed income 160 124 Foreign-derived intangible income (68 ) (34 ) Withholding taxes 30 — Singapore tax holiday (20 ) (29 ) Transition tax and other impacts of U.S. tax reform 8 117 Provision for (reversal of) tax reserves, net 16 (49 ) Excess tax benefits from stock options and restricted stock units (68 ) (59 ) Basis difference on disposal of business 72 — Other, net 47 27 Provision for income taxes $ 338 $ 210 |
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) 2019 Balance at Beginning of Year $ 1,442 Additions for tax positions of current year 6 Additions for tax positions of prior years 35 Reductions for tax positions of prior years (7 ) Settlements (5 ) Balance at End of Period $ 1,471 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (In millions except per share amounts) 2019 2018 2019 2018 Net Income $ 760 $ 709 $ 2,694 $ 2,040 Basic Weighted Average Shares 401 402 400 402 Plus Effect of: Stock options and restricted units 3 4 3 4 Diluted Weighted Average Shares 404 406 403 406 Basic Earnings per Share $ 1.89 $ 1.76 $ 6.73 $ 5.07 Diluted Earnings per Share $ 1.88 $ 1.75 $ 6.68 $ 5.03 Antidilutive Stock Options Excluded from Diluted Weighted Average Shares 1 2 1 2 |
Debt and Other Financing Arra_2
Debt and Other Financing Arrangements (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Effective Interest Rate at September 28, September 28, December 31, (Dollars in millions) 2019 2019 2018 Commercial Paper 0.84 % $ 683 $ 693 Floating Rate 2-Year Senior Notes, Due 7/24/2019 (euro-denominated) — 574 6.00% 10-Year Senior Notes, Due 3/1/2020 2.99 % 750 750 4.70% 10-Year Senior Notes, Due 5/1/2020 — 300 Floating Rate 2-Year Senior Notes, Due 8/7/2020 (euro-denominated) 0.16 % 656 688 1.50% 5-Year Senior Notes, Due 12/1/2020 (euro-denominated) 1.62 % 465 487 5.00% 10-Year Senior Notes, Due 1/15/2021 3.25 % 400 400 4.50% 10-Year Senior Notes, Due 3/1/2021 5.66 % 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 3.42 % 800 800 2.15% 7-Year Senior Notes, Due 7/21/2022 (euro-denominated) 2.27 % 547 574 3.15% 10-Year Senior Notes, Due 1/15/2023 — 800 3.00% 7-Year Senior Notes, Due 4/15/2023 5.29 % 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) 0.93 % 1,094 1,147 2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) 2.09 % 700 734 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 % 766 802 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) 1.65 % 547 574 3.20% 10-Year Senior Notes, Due 8/15/2027 3.39 % 750 750 1.375% 12-Year Senior Notes, Due 9/12/2028 (euro-denominated) 1.46 % 656 688 1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) 2.08 % 766 802 2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) 2.94 % 766 802 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 % 750 750 Other 20 21 Total Borrowings at Par Value 17,166 19,186 Fair Value Hedge Accounting Adjustments (10 ) (93 ) Unamortized Discount, Net (34 ) (21 ) Unamortized Debt Issuance Costs (69 ) (82 ) Total Borrowings at Carrying Value 17,053 18,990 Less: Short-term Obligations and Current Maturities 661 1,271 Long-term Obligations $ 16,392 $ 17,719 |
Schedule of Derivative Instruments [Table Text Block] | Aggregate Notional Amount Pay Rate as of (Dollars in millions) Pay Rate September 28, Receive Rate 4.50% Senior Notes due 2021 (a) 1,000 1-month LIBOR + 3.4420% 5.5310 % 4.50 % 3.60% Senior Notes due 2021 (a) 1,100 1-month LIBOR + 2.5150% 4.5425 % 3.60 % 3.00% Senior Notes due 2023 (a) 1,000 1-month LIBOR + 1.7640% 3.7915 % 3.00 % (a) The payments on $1.8 billion notional value of these interest rate swaps are offset in part by cross-currency interest rate swaps which effectively reduced the pay rate as of September 28, 2019 from a weighted average of 4.50% to a weighted average of 1.78% . |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | of operating lease liabilities are as follows: (In millions) Remainder of 2019 $ 51 2020 180 2021 138 2022 106 2023 76 2024 55 2025 and Thereafter 175 Total Lease Payments 781 Less: Imputed Interest 94 Total Operating Lease Liability $ 687 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As previously disclosed in the company's 2018 Annual Report on Form 10-K and under previous lease accounting guidance, the following is a summary of annual future minimum lease and rental commitments under noncancelable operating leases as of December 31, 2018 : (In millions) 2019 $ 192 2020 158 2021 118 2022 86 2023 58 2024 and Thereafter 177 $ 789 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
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 Unrealized Pension and Total Balance at December 31, 2018 $ (2,243 ) $ (52 ) $ (203 ) $ (2,498 ) Other comprehensive items before reclassifications (222 ) (38 ) (9 ) (269 ) Amounts reclassified from accumulated other comprehensive items 30 7 8 45 Net other comprehensive items (192 ) (31 ) (1 ) (224 ) Balance at September 28, 2019 $ (2,435 ) $ (83 ) $ (204 ) $ (2,722 ) |
Fair Value Measurements and F_2
Fair Value Measurements and Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
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 September 28, 2019 and December 31, 2018 : September 28, Quoted Significant Significant (In millions) 2019 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 166 $ 166 $ — $ — Investments in common stock, mutual funds and other similar instruments 19 19 — — Warrants 6 — 6 — Insurance contracts 130 — 130 — Derivative contracts 114 — 114 — Total Assets $ 435 $ 185 $ 250 $ — Liabilities Derivative contracts $ 44 $ — $ 44 $ — Contingent consideration 55 — — 55 Total Liabilities $ 99 $ — $ 44 $ 55 December 31, Quoted Significant Significant (In millions) 2018 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 769 $ 769 $ — $ — Bank time deposits 2 2 — — Investments in mutual funds and other similar instruments 10 10 — — Warrants 8 — 8 — Insurance contracts 113 — 113 — Derivative contracts 31 — 31 — Total Assets $ 933 $ 781 $ 152 $ — Liabilities Derivative contracts $ 145 $ — $ 145 $ — Contingent consideration 37 — — 37 Total Liabilities $ 182 $ — $ 145 $ 37 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table provides a rollforward of the fair value, as determined by level 3 inputs, of the contingent consideration. Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (In millions) 2019 2018 2019 2018 Contingent Consideration Beginning Balance $ 58 $ 40 $ 37 $ 35 Acquisitions (including assumed balances) — — 24 11 Payments (3 ) (3 ) (3 ) (8 ) Change in fair value included in earnings — (3 ) (3 ) (4 ) Ending Balance $ 55 $ 34 $ 55 $ 34 |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table provides the aggregate notional value of outstanding derivative contracts. September 28, December 31, (In millions) 2019 2018 Notional Amount Interest rate swaps (described in Note 8) $ 3,100 $ 3,100 Cross-currency interest rate swaps - designated as net investment hedges 1,800 1,500 Currency exchange contracts 5,693 3,424 As discussed in Note 15 , early in the fourth quarter of 2019, the company settled certain of its interest rate swaps and cross-currency interest rate swaps upon the redemption of the related debt securities. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Fair Value – Assets Fair Value – Liabilities September 28, December 31, September 28, December 31, (In millions) 2019 2018 2019 2018 Derivatives Designated as Hedging Instruments Interest rate swaps (a) $ — $ — $ 31 $ 129 Cross-currency interest rate swaps (b) 107 28 — — Derivatives Not Designated as Hedging Instruments Currency exchange contracts (c) 7 3 13 16 Total Derivatives $ 114 $ 31 $ 44 $ 145 (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 cross-currency interest rate swaps is included in the consolidated balance sheet under the caption other assets. (c) 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. The following amounts related to cumulative basis adjustments for fair value hedges were included in the consolidated balance sheet under the caption long-term obligations: Carrying Amount of the Hedged Liability Cumulative Amount of Fair Value Hedging Adjustment - Increase (Decrease) Included in Carrying Amount of Liability (d) September 28, December 31, September 28, December 31, (In millions) 2019 2018 2019 2018 Long-term Obligations $ 3,078 $ 3,291 $ (10 ) $ (93 ) (d) Includes increases in the carrying amount of $20 million and $30 million at September 28, 2019 and December 31, 2018 , respectively, on discontinued hedging relationships. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | Gain (Loss) Recognized Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, (In millions) 2019 2018 2019 2018 Fair Value Hedging Relationships Interest rate swaps Hedged long-term obligations - included in other expense, net $ (14 ) $ 8 $ (95 ) $ 60 Derivatives designated as hedging instruments - included in other expense, net 15 (8 ) 98 (57 ) Derivatives Designated as Cash Flow Hedges Interest rate swaps Included in unrealized losses on hedging instruments within other comprehensive items (50 ) — (50 ) — Amount reclassified from accumulated other comprehensive items to other expense, net (3 ) (3 ) (10 ) (9 ) Financial Instruments Designated as Net Investment Hedges Foreign currency-denominated debt Included in currency translation adjustment within other comprehensive items 261 50 320 250 Cross-currency interest rate swaps Included in currency translation adjustment within other comprehensive items 72 5 79 8 Included in other expense, net 13 9 41 12 Derivatives Not Designated as Hedging Instruments Currency exchange contracts Included in cost of product revenues 1 1 — 1 Included in other expense, net 43 (2 ) 49 25 |
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: September 28, 2019 December 31, 2018 Carrying Fair Carrying Fair (In millions) Value Value Value Value Debt Obligations: Senior notes $ 16,350 $ 17,513 $ 18,276 $ 18,322 Commercial paper 683 683 693 693 Other 20 20 21 21 $ 17,053 $ 18,216 $ 18,990 $ 19,036 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: September 28, 2019 December 31, 2018 Carrying Fair Carrying Fair (In millions) Value Value Value Value Debt Obligations: Senior notes $ 16,350 $ 17,513 $ 18,276 $ 18,322 Commercial paper 683 683 693 693 Other 20 20 21 21 $ 17,053 $ 18,216 $ 18,990 $ 19,036 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 Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Nine Months Ended September 28, September 29, (In millions) 2019 2018 Non-cash Investing and Financing Activities Declared but unpaid dividends $ 77 $ 69 Issuance of stock upon vesting of restricted stock units 179 167 |
Restrictions on Cash and Cash Equivalents [Table Text Block] | Cash, cash equivalents and restricted cash is included in the consolidated balance sheet as follows: September 28, December 31, (In millions) 2019 2018 Cash and Cash Equivalents $ 1,273 $ 2,103 Restricted Cash Included in Other Current Assets 31 12 Restricted Cash Included in Other Assets 1 2 Cash, Cash Equivalents and Restricted Cash $ 1,305 $ 2,117 |
Restructuring and Other Costs_2
Restructuring and Other Costs (Income), Net (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs [Table Text Block] | During the third quarter of 2019 , the company recorded net restructuring and other costs (income) by segment as follows: (In millions) Cost of Selling, Restructuring Total Life Sciences Solutions $ 5 $ — $ 3 $ 8 Analytical Instruments — — 1 1 Specialty Diagnostics — — 23 23 Laboratory Products and Services — 8 4 12 Corporate — (1 ) — (1 ) $ 5 $ 7 $ 31 $ 43 During the first nine months of 2019 , the company recorded net restructuring and other costs (income) by segment as follows: (In millions) Cost of Selling, Restructuring Total Life Sciences Solutions $ 16 $ — $ 14 $ 30 Analytical Instruments — 24 10 34 Specialty Diagnostics — 4 (480 ) (476 ) Laboratory Products and Services — 27 12 39 Corporate — (1 ) 2 1 $ 16 $ 54 $ (442 ) $ (372 ) |
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 (income), 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, 2018 $ 34 $ 42 $ 4 $ 80 Cumulative effect of accounting change (b) — (28 ) — (28 ) Costs incurred in 2019 (d) 25 3 9 37 Reserves reversed (c) (3 ) (1 ) — (4 ) Payments (29 ) (8 ) (8 ) (45 ) Currency translation (1 ) — — (1 ) Balance at September 28, 2019 $ 26 $ 8 $ 5 $ 39 (a) Other includes 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) Impact of adopting new lease accounting guidance on January 1, 2019. (c) Represents reductions in cost of plans. (d) Excludes $486 million net gain on the sale of businesses; $6 million of impairment of acquired in-process research and development; $3 million of compensation due to employees on the date of acquisition; and $2 million of other non-cash charges, net. |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Subsequent Events [Abstract] | |
Schedule of Subsequent Events [Table Text Block] | 2019, the company issued the following senior notes: (In millions) Principal Value Issued 0.125% 5.5-Year Senior Notes, Due 3/1/2025 (euro-denominated) € 800 0.500% 8.5-Year Senior Notes, Due 3/1/2028 (euro-denominated) € 800 2.600% 10-Year Senior Notes, Due 10/1/2029 $ 900 0.875% 12-Year Senior Notes, Due 10/1/2031 (euro-denominated) € 900 1.500% 20-Year Senior Notes, Due 10/1/2039 (euro-denominated) € 900 1.875% 30-Year Senior Notes, Due 10/1/2049 (euro-denominated) € 1,000 (In millions) Principal Value Redeemed 6.00% 10-Year Senior Notes, Due 3/1/2020 $ 750 1.50% 5-Year Senior Notes, Due 12/1/2020 (euro-denominated) € 425 5.00% 10-Year Senior Notes, Due 1/15/2021 $ 400 4.50% 10-Year Senior Notes, Due 3/1/2021 $ 1,000 3.60% 10-Year Senior Notes, Due 8/15/2021 $ 1,100 3.30% 7-Year Senior Notes, Due 2/15/2022 $ 800 |
Contract Assets and Liabilities
Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 28, 2019 | Dec. 31, 2018 | |
Contract with Customer, Asset and Liability [Abstract] | ||
Current Contract Assets, Net | $ 609 | $ 459 |
Noncurrent Contract Asset, Net | 14 | 15 |
Current Contract Liabilities | 943 | 809 |
Noncurrent Contract Liabilities | 562 | $ 355 |
Revenue recognized that was included in the current contract liability balance at the beginning of the period | $ 654 |
Warranty Obligations (Details)
Warranty Obligations (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Warranty Obligations [Roll Forward] | ||
Beginning Balance | $ 92 | $ 87 |
Provision charged to income | 80 | 89 |
Usage | (83) | (80) |
Adjustments to previously provided warranties, net | (1) | (3) |
Currency translation | (2) | (2) |
Ending Balance | $ 86 | $ 91 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 943 | $ 812 |
Work in Process | 514 | 430 |
Finished Goods | 1,851 | 1,763 |
Inventories | $ 3,308 | $ 3,005 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other Assets | $ 1,860 | $ 1,758 | $ 1,117 |
Other accrued expenses | 1,698 | 1,602 | 1,470 |
Other Long-term Liabilities | 3,137 | 3,020 | 2,515 |
Retained earnings | $ 21,165 | 18,700 | $ 18,696 |
Impact of Adopting New Lease Guidance [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other Assets | 641 | ||
Other accrued expenses | 132 | ||
Other Long-term Liabilities | 505 | ||
Retained earnings | $ 4 |
Acquisitions Purchase Price (De
Acquisitions Purchase Price (Details) - USD ($) $ in Millions | Apr. 30, 2019 | Sep. 28, 2019 | Dec. 31, 2018 |
Net Assets Acquired [Abstract] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (in years) | 14 years | ||
Customer Relationships [Member] | |||
Net Assets Acquired [Abstract] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (in years) | 14 years | ||
Product Technology [Member] | |||
Net Assets Acquired [Abstract] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (in years) | 13 years | ||
Tradenames [Member] | |||
Net Assets Acquired [Abstract] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (in years) | 2 years | ||
Brammer Bio [Member] | |||
Purchase Price | |||
Payments to Acquire Businesses, Gross | $ 1,710 | ||
Cash acquired | (36) | ||
Total Purchase Price | 1,674 | ||
Net Assets Acquired [Abstract] | |||
Current assets | 52 | ||
Property, plant and equipment | 147 | ||
Goodwill | 938 | ||
Other assets | 49 | ||
Contract Liabilities | (109) | ||
Deferred tax liabilities | (111) | ||
Other liabilities assumed | (108) | ||
Net Assets Acquired | 1,674 | ||
Revenue Reported by Acquired Entity | $ 140 | ||
Goodwill, Expected Tax Deductible Amount | 405 | ||
Brammer Bio [Member] | Customer Relationships [Member] | |||
Net Assets Acquired [Abstract] | |||
Definite-lived intangible assets | 744 | ||
Brammer Bio [Member] | Product Technology [Member] | |||
Net Assets Acquired [Abstract] | |||
Definite-lived intangible assets | 65 | ||
Brammer Bio [Member] | Tradenames [Member] | |||
Net Assets Acquired [Abstract] | |||
Definite-lived intangible assets | $ 7 | ||
Other [Member] | |||
Purchase Price | |||
Total Purchase Price | $ 14 |
Dispositions (Details)
Dispositions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 31, 2018 | Jun. 28, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain (Loss) on Disposition of Business | $ 486 | $ 0 | ||||
Revenues | $ 6,272 | $ 5,920 | 18,713 | $ 17,851 | ||
Current Assets | 10,514 | 10,514 | $ 10,625 | |||
Current Liabilities | $ 5,844 | 5,844 | 6,147 | |||
Anatomical Pathology business [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 1,130 | |||||
Gain (Loss) on Disposition of Business | 482 | |||||
Revenues | $ 115 | 238 | ||||
Current Assets | 81 | |||||
Long-term Assets | 528 | |||||
Current Liabilities | 34 | |||||
Long-term Liabilities | $ 24 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 6,272 | $ 5,920 | $ 18,713 | $ 17,851 | |
North America [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | 3,220 | 3,030 | 9,509 | 8,975 |
Europe [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | 1,514 | 1,454 | 4,569 | 4,521 |
Asia Pacific [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | 1,349 | 1,251 | 4,080 | 3,809 |
Other Regions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | 189 | 185 | 555 | 546 |
Consumables [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 3,228 | 3,056 | 9,726 | 9,345 | |
Instruments [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,570 | 1,515 | 4,619 | 4,462 | |
Service [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 1,474 | $ 1,349 | $ 4,368 | $ 4,044 | |
[1] | Revenues are attributed to regions based on customer location. |
Revenue Performance Obligations
Revenue Performance Obligations (Details) $ in Millions | Sep. 28, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 6,760 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-09-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 70.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 6,272 | $ 5,920 | $ 18,713 | $ 17,851 | |
Cost of revenues (charges) credits, net | (5) | (16) | |||
Selling, general and administrative (charges) credits, net | (7) | (54) | |||
Restructuring and other costs, net | (31) | 27 | 442 | (35) | |
Amortization of acquisition-related intangible assets | (1,285) | (1,316) | |||
Operating Income | 946 | 912 | 3,362 | 2,635 | |
Other expense, net | (124) | (102) | (330) | (385) | |
Income Before Income Taxes | 822 | 810 | 3,032 | 2,250 | |
Life Sciences Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of revenues (charges) credits, net | (5) | (16) | |||
Restructuring and other costs, net | (3) | (14) | |||
Analytical Instruments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Selling, general and administrative (charges) credits, net | (24) | ||||
Restructuring and other costs, net | (1) | (10) | |||
Specialty Diagnostics [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Selling, general and administrative (charges) credits, net | (4) | ||||
Restructuring and other costs, net | (23) | 480 | |||
Laboratory Products and Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Selling, general and administrative (charges) credits, net | (8) | (27) | |||
Restructuring and other costs, net | (4) | (12) | |||
Total Reportable Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Income | [1] | 1,423 | 1,311 | 4,275 | 4,000 |
Total Reportable Segments [Member] | Life Sciences Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,701 | 1,504 | 5,018 | 4,572 | |
Operating Income | [1] | 586 | 495 | 1,756 | 1,534 |
Total Reportable Segments [Member] | Analytical Instruments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,358 | 1,333 | 4,004 | 3,901 | |
Operating Income | [1] | 311 | 294 | 879 | 831 |
Total Reportable Segments [Member] | Specialty Diagnostics [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 879 | 894 | 2,779 | 2,773 | |
Operating Income | [1] | 223 | 223 | 707 | 719 |
Total Reportable Segments [Member] | Laboratory Products and Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,619 | 2,470 | 7,765 | 7,433 | |
Operating Income | [1] | 303 | 299 | 933 | 916 |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (285) | (281) | (853) | (828) | |
Segment Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of revenues (charges) credits, net | (5) | 1 | (16) | (7) | |
Selling, general and administrative (charges) credits, net | (7) | 4 | (54) | (7) | |
Restructuring and other costs, net | (31) | 27 | 442 | (35) | |
Amortization of acquisition-related intangible assets | $ (434) | $ (431) | $ (1,285) | $ (1,316) | |
[1] | Represents operating income before certain charges to cost of revenues and selling, general and administrative expenses; restructuring and other costs/income, net; and amortization of acquisition-related intangibles. |
Geographical Information (Detai
Geographical Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 6,272 | $ 5,920 | $ 18,713 | $ 17,851 | |
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [1] | 3,096 | 2,918 | 9,117 | 8,588 |
China | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [1] | 694 | 629 | 2,072 | 1,818 |
All Other Countries | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [1] | $ 2,482 | $ 2,373 | $ 7,524 | $ 7,445 |
[1] | Revenues are attributed to countries based on customer location. |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Other Income and Expenses [Abstract] | ||||
Interest Income | $ 52 | $ 41 | $ 179 | $ 92 |
Interest Expense | (164) | (162) | (534) | (495) |
Other Items, Net | (12) | 19 | 25 | 18 |
Other Expense, Net | $ (124) | $ (102) | (330) | $ (385) |
Losses on Extinguishment of Debt | $ 42 |
Income Taxes Rate Reconciliatio
Income Taxes Rate Reconciliation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Statutory Federal Income Tax Rate | 21.00% | 21.00% | ||
Provision for Income Taxes at Statutory Rate | $ 637 | $ 473 | ||
Foreign rate differential | (172) | (177) | ||
Foreign exchange loss on inter-company debt refinancing | (62) | |||
Income tax credits | (242) | (183) | ||
Global intangible low-taxed income | 160 | 124 | ||
Foreign-derived intangible income | (68) | (34) | ||
Withholding taxes | 30 | |||
Singapore tax holiday | (20) | (29) | ||
Transition tax and other impacts of U.S. tax reform | 8 | 117 | ||
Provision for (reversal of) tax reserves, net | 16 | (49) | ||
Excess tax benefits from stock options and restricted stock units | (68) | (59) | ||
Basis difference on disposal of business | 72 | 0 | ||
Other, net | 47 | 27 | ||
Provision for income taxes | $ 62 | $ 101 | 338 | $ 210 |
Income Tax Provision Related to Gain of Sale of Business | 191 | |||
US foreign tax credits generated by repatriation of foreign earnings | 75 | |||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 7 | |||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 35 | |||
Tax Cuts and Jobs Act, Income Tax Expense (Benefit) | $ 1 | |||
Singapore | ||||
Income Tax Holiday [Line Items] | ||||
Income Tax Holiday, Termination Date | Dec. 31, 2026 | |||
Effective Income Tax Rate Reconciliation, Tax Holiday, Percent | 0.60% | 1.30% | ||
Income Tax Holiday, Income Tax Benefits Per Share | $ 0.05 | $ 0.07 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) $ in Millions | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |
Balance at beginning of year | $ 1,442 |
Additions for tax positions of current year | 6 |
Additions for tax positions of prior years | 35 |
Reductions for tax positions of prior years | (7) |
Settlements | (5) |
Balance at end of year | $ 1,471 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net Income | $ 760 | $ 709 | $ 2,694 | $ 2,040 |
Basic Weighted Average Shares | 401 | 402 | 400 | 402 |
Effect of Stock Options and Restricted Units | 3 | 4 | 3 | 4 |
Diluted Weighted Average Shares | 404 | 406 | 403 | 406 |
Basic Earnings Per Share (in dollars per share) | $ 1.89 | $ 1.76 | $ 6.73 | $ 5.07 |
Diluted Earnings Per Share (in dollars per share) | $ 1.88 | $ 1.75 | $ 6.68 | $ 5.03 |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Stock Options Excluded From Computation Of Earnings Per Share | 1 | 2 | 1 | 2 |
Debt Outstanding Debt (Details)
Debt Outstanding Debt (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 28, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Total Borrowings at Par Value | $ 17,166 | $ 19,186 |
Fair Value Hedge Accounting Adjustments | (10) | (93) |
Unamortized Discount, Net | (34) | (21) |
Unamortized Debt Issuance Costs | (69) | (82) |
Total Borrowings at Carrying Value | 17,053 | 18,990 |
Less: Short-term Obligations and Current Maturities | 661 | 1,271 |
Long-term Obligations | 16,392 | 17,719 |
Losses on Extinguishment of Debt | $ 42 | |
Commercial Paper Programs [Member] | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 0.84% | |
Total Borrowings at Par Value | $ 683 | 693 |
Total Borrowings at Carrying Value | 683 | 693 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total Borrowings at Carrying Value | $ 16,350 | 18,276 |
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 and accrued interest. | |
Senior Notes [Member] | Floating Rate 2-Year Senior Notes, Due 7/24/2019 (euro-denominated) [Member] | ||
Debt Instrument [Line Items] | ||
Total Borrowings at Par Value | 574 | |
Senior Notes [Member] | 6.00% 10-Year Senior Notes, Due 3/1/2020 | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 6.00% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | Mar. 1, 2020 | |
Effective Interest Rate | 2.99% | |
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 | |
Total Borrowings at Par Value | 300 | |
Senior Notes [Member] | Floating Rate 2-Year Senior Notes, Due 8/7/2020 (euro-denominated) [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 2 years | |
Debt Instrument, Maturity Date | Aug. 7, 2020 | |
Effective Interest Rate | 0.16% | |
Total Borrowings at Par Value | $ 656 | 688 |
Senior Notes [Member] | 1.50% 5-Year Senior Notes, Due 12/1/2020 (euro-denominated) | ||
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 | $ 465 | 487 |
Senior Notes [Member] | 5.00% 10-Year Senior Notes, Due 1/15/2021 | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 5.00% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | Jan. 15, 2021 | |
Effective Interest Rate | 3.25% | |
Total Borrowings at Par Value | $ 400 | 400 |
Senior Notes [Member] | 4.50% 10-Year Senior Notes, Due 3/1/2021 | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 4.50% | |
Debt Instrument, Term | 10 years | |
Debt Instrument, Maturity Date | Mar. 1, 2021 | |
Effective Interest Rate | 5.66% | |
Total Borrowings at Par Value | $ 1,000 | 1,000 |
Senior Notes [Member] | 3.60% 10-Year Senior Notes, Due 8/15/2021 | ||
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 | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate | 3.30% | |
Debt Instrument, Term | 7 years | |
Debt Instrument, Maturity Date | Feb. 15, 2022 | |
Effective Interest Rate | 3.42% | |
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 | 2.27% | |
Total Borrowings at Par Value | $ 547 | 574 |
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 | |
Total Borrowings at Par Value | 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 | 5.29% | |
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 | 0.93% | |
Total Borrowings at Par Value | $ 1,094 | 1,147 |
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 | 2.09% | |
Total Borrowings at Par Value | $ 700 | 734 |
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 | $ 766 | 802 |
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 | 1.65% | |
Total Borrowings at Par Value | $ 547 | 574 |
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 | 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 | $ 656 | 688 |
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 | $ 766 | 802 |
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 | $ 766 | 802 |
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 | 750 |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total Borrowings at Par Value | 20 | 21 |
Total Borrowings at Carrying Value | $ 20 | $ 21 |
Debt Short-term Financing (Deta
Debt Short-term Financing (Details) | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Revolving Credit Facility [Member] | |
Short-term Financing [Line Items] | |
Debt, Covenant, Maximum Consolidated Total Leverage Ratio of Debt to EBITDA | 3.5 |
Debt, Covenant, Minimum Consolidated Interest Coverage Ratio | 3 |
Maximum Borrowing Capacity | $ 2,500,000,000 |
Letters of Credit Outstanding, Amount | 80,000,000 |
Line of Credit Facility, Amount Outstanding | $ 0 |
Commercial Paper Programs [Member] | |
Short-term Financing [Line Items] | |
Short-term Debt, Period to Maturity | 41 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 | Sep. 28, 2019 | Dec. 31, 2018 | |
Interest Rate Swaps [Member] | |||
Debt Instrument [Line Items] | |||
Notional Amount Of Derivatives | $ 3,100 | $ 3,100 | |
Interest Rate Swap, Pay Rate at Period End | 4.50% | ||
Cross Currency Interest Rate Contract [Member] | |||
Debt Instrument [Line Items] | |||
Notional Amount Of Derivatives | $ 1,800 | $ 1,500 | |
Interest Rate Swap, Pay Rate at Period End | 1.78% | ||
Senior Notes [Member] | 4.50% Senior Notes Due 2021 [Member] | Interest Rate Swaps [Member] | |||
Debt Instrument [Line Items] | |||
Notional Amount Of Derivatives | [1] | $ 1,000 | |
Interest Rate Swap, Pay Rate Spread above One-month LIBOR | 3.442% | ||
Interest Rate Swap, Pay Rate at Period End | [1] | 5.531% | |
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] | $ 1,100 | |
Interest Rate Swap, Pay Rate Spread above One-month LIBOR | 2.515% | ||
Interest Rate Swap, Pay Rate at Period End | [1] | 4.5425% | |
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] | $ 1,000 | |
Interest Rate Swap, Pay Rate Spread above One-month LIBOR | 1.764% | ||
Interest Rate Swap, Pay Rate at Period End | [1] | 3.7915% | |
Interest Rate Swap, Fixed Receive Rate | 3.00% | ||
[1] | The payments on $1.8 billion notional value of these interest rate swaps are offset in part by cross-currency interest rate swaps which effectively reduced the pay rate as of September 28, 2019 from a weighted average of 4.50% to a weighted average of 1.78% . |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 28, 2019 | Sep. 28, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Cost | $ 51 | $ 149 | |
Variable Lease, Cost | $ 10 | 31 | |
Operating Lease, Payments | 149 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 108 | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years 3 months 18 days | 6 years 3 months 18 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.00% | 4.00% | |
Operating Lease, Right-of-Use Asset | $ 645 | $ 645 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | |
Operating Lease, Liability, Current | $ 158 | $ 158 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | |
Operating Lease, Liability, Noncurrent | $ 529 | $ 529 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
Remainder of 2019 | $ 51 | $ 51 | |
2020 | 180 | 180 | |
2021 | 138 | 138 | |
2022 | 106 | 106 | |
2023 | 76 | 76 | |
2024 | 55 | 55 | |
2025 and Thereafter | 175 | 175 | |
Total Lease Payments | 781 | 781 | |
Less: Imputed Interest | 94 | 94 | |
Total Operating Lease Liability | $ 687 | $ 687 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2019 | $ 192 | ||
2020 | 158 | ||
2021 | 118 | ||
2022 | 86 | ||
2023 | 58 | ||
2024 and Thereafter | 177 | ||
Operating Leases, Future Minimum Payments Due | $ 789 | ||
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Remaining Lease Term, Operating Leases | 1 month | ||
Lessee, Operating Lease, Renewal Term | 1 year | 1 year | |
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Remaining Lease Term, Operating Leases | 30 years | ||
Lessee, Operating Lease, Renewal Term | 10 years | 10 years | |
Lessee, Operating Lease, Option to Terminate, Term | 1 year | ||
Guarantee Type, Other [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Maximum Residual Value Guarantee | $ 147 | $ 147 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 28, 2019USD ($) |
Accrual for Environmental Loss Contingencies Disclosure [Abstract] | |
Accrual for Environmental Loss Contingencies, Net | $ 63 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ 28,729 | $ 26,445 | $ 27,586 | $ 25,413 |
Other comprehensive items before reclassifications | (269) | |||
Amounts reclassified from accumulated other comprehensive items | 45 | |||
Total other comprehensive items | (92) | (28) | (224) | (428) |
Balance | 29,355 | 26,890 | 29,355 | 26,890 |
Currency Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (2,243) | |||
Other comprehensive items before reclassifications | (222) | |||
Amounts reclassified from accumulated other comprehensive items | 30 | |||
Total other comprehensive items | (192) | |||
Balance | (2,435) | (2,435) | ||
Unrealized Losses on Hedging Instruments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (52) | |||
Other comprehensive items before reclassifications | (38) | |||
Amounts reclassified from accumulated other comprehensive items | 7 | |||
Total other comprehensive items | (31) | |||
Balance | (83) | (83) | ||
Pension and Other Postretirement Benefit Liability Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (203) | |||
Other comprehensive items before reclassifications | (9) | |||
Amounts reclassified from accumulated other comprehensive items | 8 | |||
Total other comprehensive items | (1) | |||
Balance | (204) | (204) | ||
Accumulated Other Comprehensive Items [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (2,630) | (2,491) | (2,498) | (2,003) |
Total other comprehensive items | (92) | (28) | (224) | (428) |
Balance | $ (2,722) | $ (2,519) | $ (2,722) | $ (2,519) |
Fair Value Measurements, Assets
Fair Value Measurements, Assets and Liabilities (Details) - Fair Value, Recurring [Member] - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 31, 2018 |
Assets [Abstract] | ||
Cash equivalents | $ 166 | $ 769 |
Bank time deposits | 2 | |
Investments in common stock, mutual funds and other similar instruments | 19 | 10 |
Warrants | 6 | 8 |
Insurance contracts | 130 | 113 |
Derivative contracts | 114 | 31 |
Total Assets | 435 | 933 |
Liabilities [Abstract] | ||
Derivative contracts | 44 | 145 |
Contingent consideration | 55 | 37 |
Total Liabilities | 99 | 182 |
Quoted Prices in Active Markets (Level I) [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 166 | 769 |
Bank time deposits | 2 | |
Investments in common stock, mutual funds and other similar instruments | 19 | 10 |
Total Assets | 185 | 781 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Warrants | 6 | 8 |
Insurance contracts | 130 | 113 |
Derivative contracts | 114 | 31 |
Total Assets | 250 | 152 |
Liabilities [Abstract] | ||
Derivative contracts | 44 | 145 |
Total Liabilities | 44 | 145 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Liabilities [Abstract] | ||
Contingent consideration | 55 | 37 |
Total Liabilities | $ 55 | $ 37 |
Fair Value Measurements and F_3
Fair Value Measurements and Fair Value of Financial Instruments Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - Contingent Consideration [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | $ 58 | $ 40 | $ 37 | $ 35 |
Acquisitions (including assumed balances) | 24 | 11 | ||
Payments | (3) | (3) | (3) | (8) |
Change in fair value included in earnings | (3) | (3) | (4) | |
Ending Balance | $ 55 | $ 34 | $ 55 | $ 34 |
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement of Income [Extensible List] | us-gaap:SellingGeneralAndAdministrativeExpense |
Fair Value Measurements, Deriva
Fair Value Measurements, Derivative Assets & Liabilities (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Cumulative Amount of Fair Value Hedging Adjustment - Increase (Decrease) Included in Carrying Amount of Liability | $ (10) | $ (93) |
Long-term Obligations [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedged Liability, Fair Value Hedge | 3,078 | 3,291 |
Cumulative Amount of Fair Value Hedging Adjustment - Increase (Decrease) Included in Carrying Amount of Liability | (10) | (93) |
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 20 | 30 |
Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount Of Derivatives | 3,100 | 3,100 |
Interest Rate Swaps [Member] | Derivatives Designated as Hedging Instrument [Member] | Other Long-term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 31 | 129 |
Cross Currency Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount Of Derivatives | 1,800 | 1,500 |
Cross Currency Interest Rate Contract [Member] | Derivatives Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 107 | 28 |
Currency Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount Of Derivatives | 5,693 | 3,424 |
Currency Exchange Contracts [Member] | Derivatives Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 7 | 3 |
Currency Exchange Contracts [Member] | Derivatives Not Designated as Hedging Instrument [Member] | Other Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 13 | 16 |
Fair Value, Recurring [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 114 | 31 |
Derivative Liabilities | $ 44 | $ 145 |
Fair Value Measurements, Deri_2
Fair Value Measurements, Derivative Instruments, Gains & Losses (Details) € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | Sep. 28, 2019EUR (€) | Dec. 31, 2018USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Unrealized losses on hedging instruments, net of tax | $ (38) | $ 0 | $ (38) | $ 0 | ||
Interest Rate Swaps [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Notional Amount Of Derivatives | 3,100 | 3,100 | $ 3,100 | |||
Cross Currency Interest Rate Contract [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Notional Amount Of Derivatives | 1,800 | 1,800 | 1,500 | |||
Currency Exchange Contracts [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Notional Amount Of Derivatives | 5,693 | 5,693 | $ 3,424 | |||
Currency Exchange Contracts [Member] | Cost of Product Revenues [Member] | Derivatives Not Designated as Hedging Instrument [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) on Derivative, Net | 1 | 1 | 1 | |||
Currency Exchange Contracts [Member] | Other Expense, Net [Member] | Derivatives Not Designated as Hedging Instrument [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) on Derivative, Net | 43 | (2) | 49 | 25 | ||
Fair Value Hedging [Member] | Interest Rate Swaps [Member] | Other Expense, Net [Member] | Derivatives Designated as Hedging Instrument [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) on Hedged Debt in Fair Value Hedge | (14) | 8 | (95) | 60 | ||
Gain (Loss) on Derivative, Net | 15 | (8) | 98 | (57) | ||
Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | Derivatives Designated as Hedging Instrument [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) in OCI on Cash Flow Hedge | (50) | 0 | (50) | 0 | ||
Notional Amount Of Derivatives | 900 | 900 | € 1,800 | |||
Payments for Hedge, Financing Activities | 50 | |||||
Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | Other Expense, Net [Member] | Derivatives Designated as Hedging Instrument [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) on Cash Flow Hedge Reclassified from AOCI | (3) | (3) | (10) | (9) | ||
Net Investment Hedging [Member] | Foreign currency-denominated debt [Member] | Derivatives Designated as Hedging Instrument [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) in Currency Translation Adjustment on Net Investment Hedge | 261 | 50 | 320 | 250 | ||
Net Investment Hedging [Member] | Cross Currency Interest Rate Contract [Member] | Derivatives Designated as Hedging Instrument [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) in Currency Translation Adjustment on Net Investment Hedge | 72 | 5 | 79 | 8 | ||
Net Investment Hedging [Member] | Cross Currency Interest Rate Contract [Member] | Other Expense, Net [Member] | Derivatives Designated as Hedging Instrument [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) on Derivative, Net | $ 13 | $ 9 | $ 41 | $ 12 |
Fair Value of Other Instruments
Fair Value of Other Instruments (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 18,216 | $ 19,036 |
Long-term Debt | 17,053 | 18,990 |
Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 17,513 | 18,322 |
Long-term Debt | 16,350 | 18,276 |
Commercial Paper Programs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 683 | 693 |
Long-term Debt | 683 | 693 |
Other Debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 20 | 21 |
Long-term Debt | $ 20 | $ 21 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-cash Investing and Financing Activities [Abstract] | ||||
Declared but unpaid dividends | $ 77 | $ 69 | ||
Issuance of stock upon vesting of restricted stock units | 179 | 167 | ||
Cash and Cash Equivalents | 1,273 | $ 2,103 | ||
Restricted Cash Included in Other Current Assets | 31 | 12 | ||
Restricted Cash Included in Other Assets | 1 | 2 | ||
Cash, Cash Equivalents and Restricted Cash | $ 1,305 | $ 1,111 | $ 2,117 | $ 1,361 |
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 Costs_3
Restructuring and Other Costs (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Nov. 01, 2019 | ||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Percentage of Total Workforce Eliminated less than | 1.00% | |||||
Cost of Revenues | $ 5 | $ 16 | ||||
Selling, General and Administrative Expenses | 7 | 54 | ||||
Restructuring and other costs (income), net | 31 | $ (27) | (442) | $ 35 | ||
Total Restructuring and Other Costs (Income), Net | 43 | (372) | ||||
Restructuring and Related Costs, Cash Costs | [1] | 37 | ||||
Restructuring and Related Costs, Other Costs (Income), Net | 2 | |||||
Impairment of Acquired In-process Research and Development | 6 | |||||
Loss (Gain) on Divestiture of Businesses | $ (486) | $ 0 | ||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income [Extensible List] | tmo:RestructuringAndOtherCostsIncomeNet | |||||
Severance [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Costs, Cash Costs | $ 25 | |||||
Charges For Cash Compensation Contractually Due To Employees Of Acquired Business [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other costs (income), net | 3 | |||||
Abandonment of Excess Facilities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Costs, Cash Costs | 3 | |||||
Other Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Costs, Cash Costs | [2] | 9 | ||||
Life Sciences Solutions [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cost of Revenues | 5 | 16 | ||||
Restructuring and other costs (income), net | 3 | 14 | ||||
Total Restructuring and Other Costs (Income), Net | 8 | 30 | ||||
Analytical Instruments [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Selling, General and Administrative Expenses | 24 | |||||
Restructuring and other costs (income), net | 1 | 10 | ||||
Total Restructuring and Other Costs (Income), Net | 1 | 34 | ||||
Specialty Diagnostics [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Selling, General and Administrative Expenses | 4 | |||||
Restructuring and other costs (income), net | 23 | (480) | ||||
Total Restructuring and Other Costs (Income), Net | 23 | (476) | ||||
Laboratory Products and Services [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Selling, General and Administrative Expenses | 8 | 27 | ||||
Restructuring and other costs (income), net | 4 | 12 | ||||
Total Restructuring and Other Costs (Income), Net | 12 | 39 | ||||
Corporate [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Selling, General and Administrative Expenses | (1) | (1) | ||||
Restructuring and other costs (income), net | 2 | |||||
Total Restructuring and Other Costs (Income), Net | $ (1) | $ 1 | ||||
Forecast [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Identified Future Restructuring Costs | $ 80 | |||||
[1] | Excludes $486 million net gain on the sale of businesses; $6 million of impairment of acquired in-process research and development; $3 million of compensation due to employees on the date of acquisition; and $2 million of other non-cash charges, net. | |||||
[2] | Other includes relocation and moving expenses associated with facility consolidations, as well as employee retention costs which are accrued ratably over the period through which employees must work to qualify for a payment. |
Restructuring Reserves (Details
Restructuring Reserves (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | $ 80 | ||||
Cumulative Effect of Accounting Change | [1] | (28) | |||
Costs incurred | [2] | 37 | |||
Reserves reversed | [3] | (4) | |||
Payments | (45) | ||||
Currency translation | (1) | ||||
Ending balance | $ 39 | 39 | |||
Loss (Gain) on Divestiture of Businesses | (486) | $ 0 | |||
Impairment of Acquired In-process Research and Development | 6 | ||||
Restructuring and other costs (income), net | 31 | $ (27) | (442) | $ 35 | |
Restructuring and Related Costs, Other Costs (Income), Net | $ 2 | ||||
Restructuring Reserve, Expected Final Year of Payments | 2019 | ||||
Charges For Cash Compensation Contractually Due To Employees Of Acquired Business [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring and other costs (income), net | $ 3 | ||||
Severance [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 34 | ||||
Costs incurred | 25 | ||||
Reserves reversed | [3] | (3) | |||
Payments | (29) | ||||
Currency translation | (1) | ||||
Ending balance | 26 | 26 | |||
Abandonment of Excess Facilities [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 42 | ||||
Cumulative Effect of Accounting Change | [1] | (28) | |||
Costs incurred | 3 | ||||
Reserves reversed | [3] | (1) | |||
Payments | (8) | ||||
Ending balance | 8 | 8 | |||
Other Restructuring [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | [4] | 4 | |||
Costs incurred | [4] | 9 | |||
Payments | [4] | (8) | |||
Ending balance | [4] | $ 5 | $ 5 | ||
[1] | Impact of adopting new lease accounting guidance on January 1, 2019. | ||||
[2] | Excludes $486 million net gain on the sale of businesses; $6 million of impairment of acquired in-process research and development; $3 million of compensation due to employees on the date of acquisition; and $2 million of other non-cash charges, net. | ||||
[3] | Represents reductions in cost of plans. | ||||
[4] | Other includes 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. |
Subsequent Events (Details)
Subsequent Events (Details) € in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | ||||
Oct. 31, 2019USD ($) | Oct. 31, 2019EUR (€) | Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | Oct. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | |
Subsequent Event [Line Items] | ||||||
Total Borrowings at Par Value | $ 17,166 | $ 19,186 | ||||
Proceeds from Issuance of Long-term Debt | 0 | $ 690 | ||||
Losses on Extinguishment of Debt | $ 42 | |||||
Senior Notes [Member] | 6.00% 10-Year Senior Notes, Due 3/1/2020 | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||
Debt Instrument, Term | 10 years | |||||
Debt Instrument, Maturity Date | Mar. 1, 2020 | |||||
Total Borrowings at Par Value | $ 750 | 750 | ||||
Senior Notes [Member] | 1.50% 5-Year Senior Notes, Due 12/1/2020 (euro-denominated) | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | |||||
Debt Instrument, Term | 5 years | |||||
Debt Instrument, Maturity Date | Dec. 1, 2020 | |||||
Total Borrowings at Par Value | $ 465 | 487 | ||||
Senior Notes [Member] | 5.00% 10-Year Senior Notes, Due 1/15/2021 | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||
Debt Instrument, Term | 10 years | |||||
Debt Instrument, Maturity Date | Jan. 15, 2021 | |||||
Total Borrowings at Par Value | $ 400 | 400 | ||||
Senior Notes [Member] | 4.50% 10-Year Senior Notes, Due 3/1/2021 | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||||
Debt Instrument, Term | 10 years | |||||
Debt Instrument, Maturity Date | Mar. 1, 2021 | |||||
Total Borrowings at Par Value | $ 1,000 | 1,000 | ||||
Senior Notes [Member] | 3.60% 10-Year Senior Notes, Due 8/15/2021 | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.60% | |||||
Debt Instrument, Term | 10 years | |||||
Debt Instrument, Maturity Date | Aug. 15, 2021 | |||||
Total Borrowings at Par Value | $ 1,100 | 1,100 | ||||
Senior Notes [Member] | 3.30% 7-Year Senior Notes, Due 2/15/2022 | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.30% | |||||
Debt Instrument, Term | 7 years | |||||
Debt Instrument, Maturity Date | Feb. 15, 2022 | |||||
Total Borrowings at Par Value | $ 800 | $ 800 | ||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Proceeds from Issuance of Long-term Debt | $ 5,600 | |||||
Payments for Hedge, Financing Activities | 21 | |||||
Proceeds from Hedge, Investing Activities | 47 | |||||
Losses on Extinguishment of Debt | $ 142 | |||||
Subsequent Event [Member] | Senior Notes [Member] | 0.125% 5.5-Year Senior Notes, Due 3/1/2025 (euro-denominated) | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.125% | 0.125% | ||||
Debt Instrument, Term | 5 years 6 months | 5 years 6 months | ||||
Debt Instrument, Maturity Date | Mar. 1, 2025 | Mar. 1, 2025 | ||||
Total Borrowings at Par Value | € | € 800 | |||||
Subsequent Event [Member] | Senior Notes [Member] | 0.500% 8.5-Year Senior Notes, Due 3/1/2028 (euro-denominated) | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | 0.50% | ||||
Debt Instrument, Term | 8 years 6 months | 8 years 6 months | ||||
Debt Instrument, Maturity Date | Mar. 1, 2028 | Mar. 1, 2028 | ||||
Total Borrowings at Par Value | € | € 800 | |||||
Subsequent Event [Member] | Senior Notes [Member] | 2.600% 10-Year Senior Notes, Due 10/1/2029 | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.60% | 2.60% | ||||
Debt Instrument, Term | 10 years | 10 years | ||||
Debt Instrument, Maturity Date | Oct. 1, 2029 | Oct. 1, 2029 | ||||
Total Borrowings at Par Value | $ 900 | |||||
Subsequent Event [Member] | Senior Notes [Member] | 0.875% 12-Year Senior Notes, Due 10/1/2031 (euro-denominated) | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.875% | 0.875% | ||||
Debt Instrument, Term | 12 years | 12 years | ||||
Debt Instrument, Maturity Date | Oct. 1, 2031 | Oct. 1, 2031 | ||||
Total Borrowings at Par Value | € | € 900 | |||||
Subsequent Event [Member] | Senior Notes [Member] | 1.500% 20-Year Senior Notes, Due 10/1/2039 (euro-denominated) | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | 1.50% | ||||
Debt Instrument, Term | 20 years | 20 years | ||||
Debt Instrument, Maturity Date | Oct. 1, 2039 | Oct. 1, 2039 | ||||
Total Borrowings at Par Value | € | € 900 | |||||
Subsequent Event [Member] | Senior Notes [Member] | 1.875% 30-Year Senior Notes, Due 10/1/2049 (euro-denominated) | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.875% | 1.875% | ||||
Debt Instrument, Term | 30 years | 30 years | ||||
Debt Instrument, Maturity Date | Oct. 1, 2049 | Oct. 1, 2049 | ||||
Total Borrowings at Par Value | € | € 1,000 | |||||
Subsequent Event [Member] | Senior Notes [Member] | 6.00% 10-Year Senior Notes, Due 3/1/2020 | ||||||
Subsequent Event [Line Items] | ||||||
Principal Value Redeemed | $ 750 | |||||
Subsequent Event [Member] | Senior Notes [Member] | 1.50% 5-Year Senior Notes, Due 12/1/2020 (euro-denominated) | ||||||
Subsequent Event [Line Items] | ||||||
Principal Value Redeemed | € | € 425 | |||||
Subsequent Event [Member] | Senior Notes [Member] | 5.00% 10-Year Senior Notes, Due 1/15/2021 | ||||||
Subsequent Event [Line Items] | ||||||
Principal Value Redeemed | 400 | |||||
Subsequent Event [Member] | Senior Notes [Member] | 4.50% 10-Year Senior Notes, Due 3/1/2021 | ||||||
Subsequent Event [Line Items] | ||||||
Principal Value Redeemed | 1,000 | |||||
Subsequent Event [Member] | Senior Notes [Member] | 3.60% 10-Year Senior Notes, Due 8/15/2021 | ||||||
Subsequent Event [Line Items] | ||||||
Principal Value Redeemed | 1,100 | |||||
Subsequent Event [Member] | Senior Notes [Member] | 3.30% 7-Year Senior Notes, Due 2/15/2022 | ||||||
Subsequent Event [Line Items] | ||||||
Principal Value Redeemed | $ 800 |