Cover
Cover | 6 Months Ended |
Jul. 01, 2023 shares | |
Entity Listings [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jul. 01, 2023 |
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 | 385,949,773 |
Entity Central Index Key | 0000097745 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q2 |
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 |
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 |
3.200% Notes due 2026 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 3.200% Notes due 2026 |
Trading Symbol | TMO 26B |
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 |
1.750% Notes due 2027 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 1.750% Notes due 2027 |
Trading Symbol | TMO 27B |
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 |
2.375% Notes due 2032 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 2.375% Notes due 2032 |
Trading Symbol | TMO 32 |
Security Exchange Name | NYSE |
3.650% Notes due 2034 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 3.650% Notes due 2034 |
Trading Symbol | TMO 34 |
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 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jul. 01, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 3,133 | $ 8,524 |
Accounts receivable, less allowances of $180 and $189 | 8,019 | 8,115 |
Inventories | 5,655 | 5,634 |
Contract assets, net | 1,467 | 1,312 |
Other current assets | 1,721 | 1,644 |
Total current assets | 19,995 | 25,229 |
Property, plant and equipment, net | 9,292 | 9,280 |
Acquisition-related intangible assets, net | 17,437 | 17,442 |
Other assets | 4,108 | 4,007 |
Goodwill | 43,273 | 41,196 |
Total assets | 94,105 | 97,154 |
Current liabilities: | ||
Short-term obligations and current maturities of long-term obligations | 4,814 | 5,579 |
Accounts payable | 2,423 | 3,381 |
Accrued payroll and employee benefits | 1,310 | 2,095 |
Contract liabilities | 2,590 | 2,601 |
Other accrued expenses | 2,975 | 3,354 |
Total current liabilities | 14,112 | 17,010 |
Deferred income taxes | 2,842 | 2,849 |
Other long-term liabilities | 4,042 | 4,238 |
Long-term obligations | 29,194 | 28,909 |
Redeemable noncontrolling interest | 113 | 116 |
Thermo Fisher Scientific Inc. shareholders’ equity: | ||
Preferred stock, $100 par value, 50,000 shares authorized; none issued | 0 | 0 |
Common stock, $1 par value, 1,200,000,000 shares authorized; 441,398,059 and 440,668,112 shares issued | 441 | 441 |
Capital in excess of par value | 17,030 | 16,743 |
Retained earnings | 44,289 | 41,910 |
Treasury stock at cost, 55,448,286 and 50,157,275 shares | (15,084) | (12,017) |
Accumulated other comprehensive income/(loss) | (2,924) | (3,099) |
Total Thermo Fisher Scientific Inc. shareholders’ equity | 43,752 | 43,978 |
Noncontrolling interests | 50 | 54 |
Total equity | 43,802 | 44,032 |
Total liabilities, redeemable noncontrolling interest and equity | $ 94,105 | $ 97,154 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jul. 01, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance | $ 180 | $ 189 |
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, $1 par value - shares issued (in shares) | 441,398,059 | 440,668,112 |
Treasury stock at cost (in shares) | 55,448,286 | 50,157,275 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Revenues | ||||
Revenues | $ 10,687 | $ 10,970 | $ 21,397 | $ 22,788 |
Costs and operating expenses: | ||||
Selling, general and administrative expenses | 2,145 | 2,209 | 4,264 | 4,486 |
Research and development expenses | 345 | 365 | 691 | 729 |
Restructuring and other costs | 183 | 24 | 295 | 26 |
Total costs and operating expenses | 9,109 | 8,969 | 18,256 | 17,966 |
Operating income | 1,578 | 2,001 | 3,141 | 4,822 |
Interest income | 178 | 36 | 324 | 54 |
Interest expense | (326) | (148) | (626) | (284) |
Other income/(expense) | 0 | 28 | (46) | (135) |
Income before income taxes | 1,430 | 1,917 | 2,793 | 4,457 |
Provision for income taxes | (52) | (198) | (98) | (499) |
Equity in earnings/(losses) of unconsolidated entities | (16) | (51) | (41) | (70) |
Net income | 1,362 | 1,668 | 2,654 | 3,888 |
Less: net income/(losses) attributable to noncontrolling interests and redeemable noncontrolling interest | 1 | 4 | 4 | 9 |
Net income attributable to Thermo Fisher Scientific Inc. | $ 1,361 | $ 1,664 | $ 2,650 | $ 3,879 |
Earnings per share attributable to Thermo Fisher Scientific Inc. | ||||
Basic (in dollars per share) | $ 3.53 | $ 4.25 | $ 6.86 | $ 9.90 |
Diluted (in dollars per share) | $ 3.51 | $ 4.22 | $ 6.83 | $ 9.83 |
Weighted average shares | ||||
Basic (in shares) | 386 | 392 | 386 | 392 |
Diluted (in shares) | 388 | 394 | 388 | 394 |
Product revenues | ||||
Revenues | ||||
Revenues | $ 6,271 | $ 7,003 | $ 12,675 | $ 15,020 |
Costs and operating expenses: | ||||
Cost of revenues | 3,278 | 3,516 | 6,615 | 7,071 |
Service revenues | ||||
Revenues | ||||
Revenues | 4,416 | 3,967 | 8,722 | 7,768 |
Costs and operating expenses: | ||||
Cost of revenues | $ 3,158 | $ 2,855 | $ 6,391 | $ 5,654 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Comprehensive income | ||||
Net income | $ 1,362 | $ 1,668 | $ 2,654 | $ 3,888 |
Currency translation adjustment: | ||||
Currency translation adjustment (net of tax provision (benefit) of $0, $173, $(36) and $262) | 125 | (386) | 169 | (416) |
Unrealized gains and losses on hedging instruments: | ||||
Reclassification adjustment for losses included in net income (net of tax benefit of $0, $1, $1 and $1) | 1 | 0 | 4 | 1 |
Pension and other postretirement benefit liability adjustments: | ||||
Pension and other postretirement benefit liability adjustments arising during the period (net of tax (provision) benefit of $1, $(2), $0 and $(3)) | (1) | 6 | 0 | 9 |
Amortization of net loss included in net periodic pension cost (net of tax benefit of $0, $1, $0 and $2) | (2) | 2 | (2) | 4 |
Total other comprehensive income/(loss) | 123 | (378) | 171 | (402) |
Comprehensive income | 1,485 | 1,290 | 2,825 | 3,486 |
Less: comprehensive income/(loss) attributable to noncontrolling interests and redeemable noncontrolling interest | (6) | 7 | 0 | 2 |
Comprehensive income attributable to Thermo Fisher Scientific Inc. | $ 1,491 | $ 1,283 | $ 2,825 | $ 3,484 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax provision (benefit) on currency translation adjustment | $ 0 | $ 173 | $ (36) | $ 262 |
Tax provision (benefit) on reclassification adjustment for losses on hedging instruments recognized in net income | 0 | (1) | (1) | (1) |
Tax benefit (provision) on pension and other postretirement benefit liability adjustments arising during the period | 1 | (2) | 0 | (3) |
Tax benefit on amortization of net loss and prior service benefit included in net periodic pension cost | $ 0 | $ 1 | $ 0 | $ 2 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Operating activities | ||
Net income | $ 2,654 | $ 3,888 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 523 | 486 |
Amortization of acquisition-related intangible assets | 1,191 | 1,209 |
Change in deferred income taxes | (328) | (601) |
Loss on early extinguishment of debt | 0 | 26 |
Stock-based compensation | 150 | 155 |
Other non-cash expenses, net | 330 | 291 |
Changes in assets and liabilities, excluding the effects of acquisitions | (2,251) | (1,724) |
Net cash provided by operating activities | 2,269 | 3,730 |
Investing activities | ||
Acquisitions, net of cash acquired | (2,751) | (40) |
Purchase of property, plant and equipment | (742) | (1,146) |
Proceeds from sale of property, plant and equipment | 10 | 14 |
Other investing activities, net | (102) | 83 |
Net cash used in investing activities | (3,585) | (1,089) |
Financing activities | ||
Repayment of debt | (1,000) | (375) |
Proceeds from issuance of commercial paper | 1,620 | 1,032 |
Repayments of commercial paper | (1,441) | (3,490) |
Purchases of company common stock | (3,000) | (2,000) |
Dividends paid | (252) | (220) |
Other financing activities, net | 24 | 3 |
Net cash used in financing activities | (4,049) | (5,050) |
Exchange rate effect on cash | (19) | (177) |
Decrease in cash, cash equivalents and restricted cash | (5,384) | (2,586) |
Cash, cash equivalents and restricted cash at beginning of period | 8,537 | 4,491 |
Cash, cash equivalents and restricted cash at end of period | $ 3,153 | $ 1,905 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Redeemable Noncontrolling Interest and Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock, $1.00 par value | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Items | Total Thermo Fisher Scientific Inc. Shareholders’ Equity | Noncontrolling Interests |
Beginning Balance at Dec. 31, 2021 | $ 122 | |||||||
Redeemable Noncontrolling Interest [Roll Forward] | ||||||||
Net income/(loss) | 9 | |||||||
Other comprehensive income/(loss) | (7) | |||||||
Contributions from (distributions to) noncontrolling interests | (7) | |||||||
Ending Balance at Jul. 02, 2022 | 117 | |||||||
Balance (in shares) at Dec. 31, 2021 | 439,000,000 | |||||||
Beginning Balance at Dec. 31, 2021 | 40,855 | $ 439 | $ 16,174 | $ 35,431 | $ (8,922) | $ (2,329) | $ 40,793 | $ 62 |
Treasury stock beginning balance (in shares) at Dec. 31, 2021 | 45,000,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under employees' and directors' stock plans (in shares) | 1,000,000 | |||||||
Issuance of shares under employees' and directors' stock plans | 97 | $ 1 | 138 | $ (42) | 97 | |||
Stock-based compensation | 155 | 155 | 155 | |||||
Purchases of company common stock (in shares) | 3,000,000 | |||||||
Purchases of company common stock | (2,000) | $ (2,000) | (2,000) | |||||
Dividends declared | (236) | (236) | (236) | |||||
Net income/(loss) | 3,879 | 3,879 | 3,879 | |||||
Other comprehensive items | (395) | (395) | (395) | |||||
Contributions from (distributions to) noncontrolling interests | (1) | (1) | ||||||
Balance (in shares) at Jul. 02, 2022 | 440,000,000 | |||||||
Treasury stock ending balance (in shares) at Jul. 02, 2022 | 48,000,000 | |||||||
Ending Balance at Jul. 02, 2022 | 42,354 | $ 440 | 16,467 | 39,074 | $ (10,964) | (2,724) | 42,293 | 61 |
Beginning Balance at Apr. 02, 2022 | 113 | |||||||
Redeemable Noncontrolling Interest [Roll Forward] | ||||||||
Net income/(loss) | 4 | |||||||
Other comprehensive income/(loss) | 4 | |||||||
Contributions from (distributions to) noncontrolling interests | (4) | |||||||
Ending Balance at Jul. 02, 2022 | 117 | |||||||
Balance (in shares) at Apr. 02, 2022 | 440,000,000 | |||||||
Beginning Balance at Apr. 02, 2022 | 41,018 | $ 440 | 16,292 | 37,528 | $ (10,961) | (2,343) | 40,956 | 62 |
Treasury stock beginning balance (in shares) at Apr. 02, 2022 | 48,000,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under employees' and directors' stock plans | 95 | 98 | $ (3) | 95 | ||||
Stock-based compensation | 77 | 77 | 77 | |||||
Dividends declared | (118) | (118) | (118) | |||||
Net income/(loss) | 1,664 | 1,664 | 1,664 | |||||
Other comprehensive items | (382) | (381) | (381) | (1) | ||||
Balance (in shares) at Jul. 02, 2022 | 440,000,000 | |||||||
Treasury stock ending balance (in shares) at Jul. 02, 2022 | 48,000,000 | |||||||
Ending Balance at Jul. 02, 2022 | 42,354 | $ 440 | 16,467 | 39,074 | $ (10,964) | (2,724) | 42,293 | 61 |
Beginning Balance at Dec. 31, 2022 | 116 | |||||||
Redeemable Noncontrolling Interest [Roll Forward] | ||||||||
Net income/(loss) | 8 | |||||||
Other comprehensive income/(loss) | (4) | |||||||
Contributions from (distributions to) noncontrolling interests | (7) | |||||||
Ending Balance at Jul. 01, 2023 | 113 | |||||||
Balance (in shares) at Dec. 31, 2022 | 441,000,000 | |||||||
Beginning Balance at Dec. 31, 2022 | $ 44,032 | $ 441 | 16,743 | 41,910 | $ (12,017) | (3,099) | 43,978 | 54 |
Treasury stock beginning balance (in shares) at Dec. 31, 2022 | 50,157,275 | 50,000,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under employees' and directors' stock plans (in shares) | 0 | |||||||
Issuance of shares under employees' and directors' stock plans | $ 99 | 137 | $ (38) | 99 | ||||
Stock-based compensation | 150 | 150 | 150 | |||||
Purchases of company common stock (in shares) | 5,000,000 | |||||||
Purchases of company common stock | (3,000) | $ (3,000) | (3,000) | |||||
Dividends declared | (271) | (271) | (271) | |||||
Net income/(loss) | 2,646 | 2,650 | 2,650 | (4) | ||||
Other comprehensive items | 175 | 175 | 175 | |||||
Excise tax from stock repurchases | $ (29) | $ (29) | (29) | |||||
Balance (in shares) at Jul. 01, 2023 | 441,000,000 | |||||||
Treasury stock ending balance (in shares) at Jul. 01, 2023 | 55,448,286 | 55,000,000 | ||||||
Ending Balance at Jul. 01, 2023 | $ 43,802 | $ 441 | 17,030 | 44,289 | $ (15,084) | (2,924) | 43,752 | 50 |
Beginning Balance at Apr. 01, 2023 | 123 | |||||||
Redeemable Noncontrolling Interest [Roll Forward] | ||||||||
Net income/(loss) | 4 | |||||||
Other comprehensive income/(loss) | (7) | |||||||
Contributions from (distributions to) noncontrolling interests | (7) | |||||||
Ending Balance at Jul. 01, 2023 | 113 | |||||||
Balance (in shares) at Apr. 01, 2023 | 441,000,000 | |||||||
Beginning Balance at Apr. 01, 2023 | 42,310 | $ 441 | 16,889 | 43,064 | $ (15,083) | (3,054) | 42,257 | 53 |
Treasury stock beginning balance (in shares) at Apr. 01, 2023 | 55,000,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under employees' and directors' stock plans (in shares) | 0 | |||||||
Issuance of shares under employees' and directors' stock plans | 65 | 67 | $ (2) | 65 | ||||
Stock-based compensation | 74 | 74 | 74 | |||||
Dividends declared | (136) | (136) | (136) | |||||
Net income/(loss) | 1,358 | 1,361 | 1,361 | (3) | ||||
Other comprehensive items | 130 | 130 | 130 | |||||
Excise tax from stock repurchases | $ 1 | $ 1 | 1 | |||||
Balance (in shares) at Jul. 01, 2023 | 441,000,000 | |||||||
Treasury stock ending balance (in shares) at Jul. 01, 2023 | 55,448,286 | 55,000,000 | ||||||
Ending Balance at Jul. 01, 2023 | $ 43,802 | $ 441 | $ 17,030 | $ 44,289 | $ (15,084) | $ (2,924) | $ 43,752 | $ 50 |
Condensed Consolidated Statem_6
Condensed Consolidated Statement of Redeemable Noncontrolling Interest and Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 0.35 | $ 0.30 | $ 0.70 | $ 0.60 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | 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, increase laboratory productivity, and improve patient health through diagnostics and the development and manufacture of life-changing therapies. Markets served include pharmaceutical and biotech, academic and government, industrial and applied, as well as healthcare and diagnostics. Interim Financial Statements The interim condensed 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 July 1, 2023, the results of operations for the three- and six-month periods ended July 1, 2023 and July 2, 2022, and the cash flows for the six-month periods ended July 1, 2023 and July 2, 2022. Interim results are not necessarily indicative of results for a full year. The condensed consolidated balance sheet presented as of December 31, 2022 has been derived from the audited consolidated financial statements as of that date. The condensed 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 condensed consolidated financial statements and notes included in this report should be read in conjunction with the 2022 financial statements and notes included in the company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC). Certain reclassifications of prior year amounts have been made to conform to the current year presentation. Note 1 to the consolidated financial statements for 2022 describes the significant accounting estimates and policies used in preparation of the consolidated financial statements. There have been no material changes in the company’s significant accounting policies during the six months ended July 1, 2023. Inventories The components of inventories are as follows: (In millions) July 1, 2023 December 31, 2022 Raw materials $ 2,368 $ 2,405 Work in process 760 660 Finished goods 2,527 2,569 Inventories $ 5,655 $ 5,634 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. The company’s estimates include, among others, asset reserve requirements as well as the amounts of future cash flows associated with certain assets and businesses that are used in assessing the risk of impairment. Actual results could differ from those estimates. Recent Accounting Pronouncements In September 2022, the FASB issued new guidance to require entities to disclose information about supplier finance programs. Among other things, the new guidance requires expanded disclosure about key program terms, payment terms, and amounts outstanding for obligations under these programs for each period presented. The company adopted some aspects of this guidance in 2023 using a retrospective method and will adopt other aspects in 2024 using a prospective method. The adoption of this guidance did not have, and is not expected to have, a material impact on the company’s disclosures; however, the impact in future periods will be dependent on the extent of arrangements of this nature entered into by the company. In November 2021, the FASB issued new guidance to require entities to disclose information about certain types of government assistance they receive, including cash grants and tax credits. Among other things, the new guidance requires expanded disclosure regarding the qualitative and quantitative characteristics of the nature, amount, timing, and significant terms and conditions of transactions with a government arising from a grant or other forms of assistance accounted for under a contribution model. The company adopted this guidance in the fourth quarter of 2022 using a prospective method. The adoption of this guidance did not have a material impact on the company’s disclosures. |
Acquisitions
Acquisitions | 6 Months Ended |
Jul. 01, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions The company’s acquisitions have historically been made at prices above the determined fair value of the acquired identifiable net assets, resulting in goodwill, primarily due to expectations of the synergies that will be realized by combining the businesses and the benefits that will be gained from the assembled workforces. 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 services; and use of the commercial infrastructure of the acquired businesses to cost-effectively expand sales of company products and services. 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. 2023 On January 3, 2023, the company acquired, within the Specialty Diagnostics segment, The Binding Site Group, a U.K.-based provider of specialty diagnostic assays and instruments to improve the diagnosis and management of blood cancers and immune system disorders. The acquisition expands the segment’s portfolio with the addition of pioneering innovation in diagnostics and monitoring for multiple myeloma. The goodwill recorded as a result of this business combination is not tax deductible. The components of the purchase price and net assets acquired are as follows: (In millions) The Binding Site Purchase price Cash paid $ 2,412 Debt settled 307 Cash acquired (20) $ 2,699 Net assets acquired Definite-lived intangible assets: Customer relationships $ 868 Product technology 172 Tradenames 42 Goodwill 1,755 Net tangible assets 141 Deferred tax assets (liabilities) (279) $ 2,699 In addition, in 2023, the company acquired, within the Analytical Instruments segment, a U.S.-based developer of Raman-based spectroscopy solutions for in-line measurement. The weighted-average amortization period for definite-lived intangible assets acquired in 2023 are 18 years for customer relationships, 14 years for product technology and 15 years for tradenames. The weighted average amortization period for all definite-lived intangible assets acquired in 2023 is 17 years. Pending Acquisition The company has entered into an agreement to acquire CorEvitas, LLC for approximately $0.91 billion in cash. CorEvitas provides regulatory-grade, real-world evidence for approved medical treatments and therapies. The transaction, which is expected to be completed by the end of 2023, is subject to customary closing conditions, including regulatory approvals. Upon completion, CorEvitas will become part of the Laboratory Products and Biopharma Services segment. |
Revenue and Contract-related Ba
Revenue and Contract-related Balances | 6 Months Ended |
Jul. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Contract-related Balances | Revenues and Contract-related Balances Disaggregated Revenues Revenues by type are as follows: Three months ended Six months ended (In millions) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Revenues Consumables $ 4,433 $ 4,993 $ 8,939 $ 11,103 Instruments 1,838 2,010 3,736 3,917 Services 4,416 3,967 8,722 7,768 Consolidated revenues $ 10,687 $ 10,970 $ 21,397 $ 22,788 Revenues by geographic region based on customer location are as follows: Three months ended Six months ended (In millions) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Revenues North America $ 5,714 $ 6,032 $ 11,492 $ 12,355 Europe 2,654 2,551 5,255 5,601 Asia-Pacific 1,902 2,042 3,888 4,106 Other regions 417 345 762 726 Consolidated revenues $ 10,687 $ 10,970 $ 21,397 $ 22,788 Each reportable segment earns revenues from consumables, instruments and services in North America, Europe, Asia-Pacific and other regions. See Note 4 for revenues 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 July 1, 2023 was $25.39 billion. The company will recognize revenues for these performance obligations as they are satisfied, approximately 56% of which is expected to occur within the next twelve months. Amounts expected to occur thereafter generally relate to contract manufacturing, clinical research and extended warranty service agreements, which typically have durations of three Contract-related Balances Noncurrent contract assets and noncurrent contract liabilities are included within other assets and other long-term liabilities in the accompanying balance sheet, respectively. Contract asset and liability balances are as follows: (In millions) July 1, 2023 December 31, 2022 Current contract assets, net $ 1,467 $ 1,312 Noncurrent contract assets, net 6 7 Current contract liabilities 2,590 2,601 Noncurrent contract liabilities 1,098 1,179 In the three and six months ended July 1, 2023, the company recognized revenues of $0.68 billion and $1.98 billion, respectively, that were included in the contract liabilities balance at December 31, 2022. In the three and six months ended July 2, 2022, the company recognized revenues of $0.71 billion and $1.99 billion, respectively, that were included in the contract liabilities balance at December 31, 2021. |
Business Segment and Geographic
Business Segment and Geographical Information | 6 Months Ended |
Jul. 01, 2023 | |
Segment Reporting [Abstract] | |
Business Segment and Geographical Information | Business Segment and Geographical Information Business Segment Information Three months ended Six months ended July 1, July 2, July 1, July 2, (In millions) 2023 2022 2023 2022 Revenues Life Sciences Solutions $ 2,463 $ 3,292 $ 5,075 $ 7,523 Analytical Instruments 1,749 1,607 3,472 3,125 Specialty Diagnostics 1,109 1,101 2,217 2,583 Laboratory Products and Biopharma Services 5,831 5,537 11,594 10,979 Eliminations (465) (567) (961) (1,422) Consolidated revenues 10,687 10,970 21,397 22,788 Segment Income Life Sciences Solutions 817 1,327 1,653 3,503 Analytical Instruments 432 344 853 645 Specialty Diagnostics 297 243 577 596 Laboratory Products and Biopharma Services 824 691 1,617 1,311 Subtotal reportable segments 2,370 2,605 4,700 6,055 Cost of revenues adjustments (18) (8) (59) (19) Selling, general and administrative expenses adjustments (6) 28 (14) 21 Restructuring and other costs (183) (24) (295) (26) Amortization of acquisition-related intangible assets (585) (600) (1,191) (1,209) Consolidated operating income 1,578 2,001 3,141 4,822 Interest income 178 36 324 54 Interest expense (326) (148) (626) (284) Other income/(expense) — 28 (46) (135) Consolidated income before taxes $ 1,430 $ 1,917 $ 2,793 $ 4,457 Cost of revenues adjustments included in the above table consist of charges for the sale of inventories revalued at the date of acquisition, inventory write-downs associated with large-scale abandonment of product lines, and accelerated depreciation on manufacturing assets to be abandoned due to facility consolidations. Selling, general and administrative expenses adjustments included in the above table consist of third-party transaction/integration costs related to recent acquisitions and charges/credits for changes in estimates of contingent acquisition consideration. Geographical Information Revenues by country based on customer location are as follows: Three months ended Six months ended (In millions) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Revenues United States $ 5,531 $ 5,846 $ 11,118 $ 11,943 China 856 1,001 1,726 1,911 Other 4,300 4,123 8,553 8,934 Consolidated revenues $ 10,687 $ 10,970 $ 21,397 $ 22,788 |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes in the accompanying statements 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: Six months ended (In millions) July 1, 2023 July 2, 2022 Statutory federal income tax rate 21 % 21 % Provision for income taxes at statutory rate $ 587 $ 936 Increases (decreases) resulting from: Foreign rate differential (125) (138) Income tax credits (136) (117) Global intangible low-taxed income 46 46 Foreign-derived intangible income (55) (71) Excess tax benefits from stock options and restricted stock units (37) (31) Provision for (reversal of) tax reserves, net 8 13 Intra-entity transfers (144) (18) Foreign exchange loss on inter-company debt refinancing (112) — Provision for (reversal of) valuation allowances, net 66 (175) Withholding taxes 12 33 Tax return reassessments and settlements (38) (4) State income taxes, net of federal tax 53 67 Other, net (27) (42) Provision for income taxes $ 98 $ 499 The company has operations and a taxable presence in approximately 70 countries outside the U.S. The company's effective income tax rate differs from the U.S. federal statutory rate each year due to certain operations that are subject to tax incentives, state and local taxes, and foreign taxes that are different than the U.S. federal statutory rate. Unrecognized Tax Benefits As of July 1, 2023 the company had $0.56 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) 2023 Balance at beginning of year $ 572 Additions for tax positions of current year 4 Additions for tax positions of prior years 26 Reductions for tax positions of prior years (27) Settlements (18) Balance at end of period $ 557 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jul. 01, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share Three months ended Six months ended July 1, July 2, July 1, July 2, (In millions except per share amounts) 2023 2022 2023 2022 Net income attributable to Thermo Fisher Scientific Inc. $ 1,361 $ 1,664 $ 2,650 $ 3,879 Basic weighted average shares 386 392 386 392 Plus effect of: stock options and restricted stock units 2 2 2 2 Diluted weighted average shares 388 394 388 394 Basic earnings per share $ 3.53 $ 4.25 $ 6.86 $ 9.90 Diluted earnings per share $ 3.51 $ 4.22 $ 6.83 $ 9.83 Antidilutive stock options excluded from diluted weighted average shares 2 2 2 2 |
Debt and Other Financing Arrang
Debt and Other Financing Arrangements | 6 Months Ended |
Jul. 01, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Other Financing Arrangements | Debt and Other Financing Arrangements Effective interest rate at July 1, July 1, December 31, (Dollars in millions) 2023 2023 2022 Commercial Paper 5.59 % $ 500 $ 310 Floating Rate (SOFR + 0.35%) 1.5-Year Senior Notes, Due 4/18/2023 — 1,000 Floating Rate (SOFR + 0.39%) 2-Year Senior Notes, Due 10/18/2023 500 500 0.797% 2-Year Senior Notes, Due 10/18/2023 1.03 % 1,350 1,350 Floating Rate (EURIBOR + 0.20%) 2-Year Senior Notes, Due 11/18/2023 (euro-denominated) 3.41 % 1,854 1,819 0.000% 2-Year Senior Notes, Due 11/18/2023 (euro-denominated) 0.06 % 600 589 0.75% 8-Year Senior Notes, Due 9/12/2024 (euro-denominated) 0.93 % 1,091 1,071 Floating Rate (SOFR + 0.53%) 3-Year Senior Notes, Due 10/18/2024 500 500 1.215% 3-Year Senior Notes, Due 10/18/2024 1.42 % 2,500 2,500 0.125% 5.5-Year Senior Notes, Due 3/1/2025 (euro-denominated) 0.41 % 873 857 2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) 2.10 % 698 686 0.853% 3-Year Senior Notes, Due 10/20/2025 (yen-denominated) 1.05 % 155 170 0.000% 4-Year Senior Notes, Due 11/18/2025 (euro-denominated) 0.15 % 600 589 3.20% 3-Year Senior Notes, Due 1/21/2026 (euro-denominated) 3.39 % 545 535 1.40% 8.5-Year Senior Notes, Due 1/23/2026 (euro-denominated) 1.53 % 764 749 1.45% 10-Year Senior Notes, Due 3/16/2027 (euro-denominated) 1.65 % 545 535 1.75% 7-Year Senior Notes, Due 4/15/2027 (euro-denominated) 1.96 % 654 642 1.054% 5-Year Senior Notes, Due 10/20/2027 (yen-denominated) 1.18 % 200 221 4.80% 5-Year Senior Notes, Due 11/21/2027 5.00 % 600 600 0.50% 8.5-Year Senior Notes, Due 3/1/2028 (euro-denominated) 0.77 % 873 857 1.375% 12-Year Senior Notes, Due 9/12/2028 (euro-denominated) 1.46 % 654 642 1.75% 7-Year Senior Notes, Due 10/15/2028 1.89 % 700 700 1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) 2.08 % 764 749 2.60% 10-Year Senior Notes, Due 10/1/2029 2.74 % 900 900 1.279% 7-Year Senior Notes, Due 10/19/2029 (yen-denominated) 1.44 % 33 36 0.80% 9-Year Senior Notes, Due 10/18/2030 (euro-denominated) 0.88 % 1,909 1,873 0.875% 12-Year Senior Notes, Due 10/1/2031 (euro-denominated) 1.13 % 982 963 2.00% 10-Year Senior Notes, Due 10/15/2031 2.23 % 1,200 1,200 2.375% 12-Year Senior Notes, Due 4/15/2032 (euro-denominated) 2.55 % 654 642 1.49% 10-Year Senior Notes, Due 10/20/2032 (yen-denominated) 1.60 % 44 48 4.95% 10-Year Senior Notes, Due 11/21/2032 5.09 % 600 600 1.125% 12-Year Senior Notes, Due 10/18/2033 (euro-denominated) 1.20 % 1,636 1,606 3.65% 12-Year Senior Notes, Due 11/21/2034 (euro-denominated) 3.76 % 818 803 2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) 2.94 % 764 749 1.50% 20-Year Senior Notes, Due 10/1/2039 (euro-denominated) 1.73 % 982 963 2.80% 20-Year Senior Notes, Due 10/15/2041 2.90 % 1,200 1,200 1.625% 20-Year Senior Notes, Due 10/18/2041 (euro-denominated) 1.77 % 1,364 1,339 2.069% 20-Year Senior Notes, Due 10/20/2042 (yen-denominated) 2.13 % 101 111 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 1.875% 30-Year Senior Notes, Due 10/1/2049 (euro-denominated) 1.98 % 1,091 1,071 Effective interest rate at July 1, July 1, December 31, (Dollars in millions) 2023 2023 2022 2.00% 30-Year Senior Notes, Due 10/18/2051 (euro-denominated) 2.07 % 818 803 2.382% 30-Year Senior Notes, Due 10/18/2052 (yen-denominated) 2.43 % 231 254 Other 76 79 Total borrowings at par value 34,073 34,561 Unamortized discount (112) (112) Unamortized debt issuance costs (155) (171) Total borrowings at carrying value 33,806 34,278 Finance lease liabilities 202 210 Less: Short-term obligations and current maturities 4,814 5,579 Long-term obligations $ 29,194 $ 28,909 SOFR - Secured Overnight Financing Rate EURIBOR - Euro Interbank Offered Rate The effective interest rates for the fixed-rate debt include the stated interest on the notes, the accretion of any discounts/premiums and the amortization of any debt issuance costs. See Note 10 for fair value information pertaining to the company’s long-term borrowings. Credit Facilities The company has a revolving credit facility (the Facility) with a bank group that provides for up to $5.00 billion of unsecured multi-currency revolving credit. The Facility expires on January 7, 2027. The revolving credit agreement calls for interest at either a Term SOFR, 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 the Facility include a Consolidated Net Interest Coverage Ratio (Consolidated EBITDA to Consolidated Net 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 minimum Consolidated Net Interest Coverage Ratio of 3.5:1.0 as of the last day of any fiscal quarter. As of July 1, 2023, no borrowings were outstanding under the Facility, although available capacity was reduced by immaterial 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. Senior Notes Interest is payable quarterly on the floating rate senior notes, annually on the euro-denominated fixed rate senior notes and semi-annually on all other senior notes. Each of the U.S. dollar and euro-denominated fixed rate senior notes may be redeemed at a redemption price of 100% of the principal amount plus a specified make-whole premium and accrued interest. Except for the euro-denominated floating rate senior notes, which may not be redeemed early, the floating rate senior notes may be redeemed in whole or in part on or after their applicable call dates at a redemption price of 100% of the principal amount plus accrued interest. The company is subject to certain affirmative and negative covenants under the indentures governing the senior notes, the most restrictive of which limits the ability of the company to pledge principal properties as security under borrowing arrangements. The company was in compliance with all covenants at July 1, 2023. In the first quarter of 2022, the company redeemed all of its 3.650% Senior Notes due 2025. In connection with the redemption, the company incurred $26 million of losses on the early extinguishment of debt included in other income/(expense) on the accompanying statements of income. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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. At July 1, 2023, there have been no material changes to the accruals for pending environmental-related matters disclosed in the company’s 2022 financial statements and notes included in the company’s Annual Report on Form 10-K. 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 and cash flows. Litigation and Related Contingencies The company is involved in various disputes, governmental and/or regulatory inspections, inquiries, investigations and proceedings, and litigation matters that arise from time to time in the ordinary course of business. The disputes and litigation matters include product liability, intellectual property, employment and commercial issues. 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 in the company’s 2022 financial statements and notes included in the company’s Annual Report on Form 10-K, 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 such matters 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 |
Comprehensive Income_(Loss)
Comprehensive Income/(Loss) | 6 Months Ended |
Jul. 01, 2023 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income/(Loss) | Comprehensive Income/(Loss) Changes in each component of accumulated other comprehensive income/(loss), net of tax, are as follows: (In millions) Currency Unrealized Pension and Total Balance at December 31, 2022 $ (2,880) $ (33) $ (186) $ (3,099) Other comprehensive income/(loss) before reclassifications 169 — — 169 Amounts reclassified from accumulated other comprehensive income/(loss) 4 4 (2) 6 Net other comprehensive income/(loss) 173 4 (2) 175 Balance at July 1, 2023 $ (2,707) $ (29) $ (188) $ (2,924) |
Fair Value Measurements and Fai
Fair Value Measurements and Fair Value of Financial Instruments | 6 Months Ended |
Jul. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Fair Value of Financial Instruments | Fair Value Measurements and Fair Value of Financial Instruments Fair Value Measurements The following tables present information about the company’s financial assets and liabilities measured at fair value on a recurring basis: July 1, Quoted Significant Significant (In millions) 2023 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 810 $ 810 $ — $ — Investments 23 23 — — Warrants 11 — 11 — Insurance contracts 192 — 192 — Derivative contracts 7 — 7 — Total assets $ 1,043 $ 833 $ 210 $ — Liabilities Derivative contracts $ 16 $ — $ 16 $ — Contingent consideration 90 — — 90 Total liabilities $ 106 $ — $ 16 $ 90 December 31, Quoted Significant Significant (In millions) 2022 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 5,804 $ 5,804 $ — $ — Investments 25 25 — — Warrants 12 — 12 — Insurance contracts 162 — 162 — Derivative contracts 79 — 79 — Total assets $ 6,082 $ 5,829 $ 253 $ — Liabilities Derivative contracts $ 101 $ — $ 101 $ — Contingent consideration 174 — — 174 Total liabilities $ 275 $ — $ 101 $ 174 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 initially measures the fair value of acquisition-related contingent consideration based on amounts expected to be transferred (probability-weighted) discounted to present value. Changes to the fair value of contingent consideration are recorded in selling, general and administrative expense. In the six months ended July 1, 2023, the company recorded $44 million, of net losses on investments, which are included in other income/(expense) in the accompanying statements of income. In the three and six months ended July 2, 2022, the company recorded $17 million and $(122) million, respectively, of net gains (losses) on investments, which are included in other income/(expense) in the accompanying statements of income. The following table provides a rollforward of the fair value, as determined by level 3 inputs (such as likelihood of achieving production or revenue milestones, as well as changes in the fair values of the investments underlying a recapitalization investment portfolio), of the contingent consideration. Three months ended Six months ended July 1, July 2, July 1, July 2, (In millions) 2023 2022 2023 2022 Contingent consideration Beginning balance $ 136 $ 261 $ 174 $ 317 Acquisitions (including assumed balances) 1 — 1 (18) Payments (43) (2) (58) (32) Changes in fair value included in earnings (4) (43) (27) (51) Ending balance $ 90 $ 216 $ 90 $ 216 Derivative Contracts The following table provides the aggregate notional value of outstanding derivative contracts. (In millions) July 1, 2023 December 31, 2022 Notional amount Cross-currency interest rate swaps - designated as net investment hedges $ 2,200 $ 2,100 Currency exchange contracts 1,500 2,434 While certain derivatives are subject to netting arrangements with counterparties, the company does not offset derivative assets and liabilities within the balance sheet. The following tables present the fair value of derivative instruments in the accompanying balance sheets and statements of income. Fair value – assets Fair value – liabilities July 1, December 31, July 1, December 31, (In millions) 2023 2022 2023 2022 Derivatives designated as hedging instruments Cross-currency interest rate swaps (a) $ 6 $ 77 $ 15 $ 85 Derivatives not designated as hedging instruments Currency exchange contracts (b) 1 2 1 16 Total derivatives $ 7 $ 79 $ 16 $ 101 (a) The fair value of the cross-currency interest rate swaps is included in the accompanying balance sheet under the caption other assets or other long-term liabilities. (b) The fair value of the currency exchange contracts is included in the accompanying balance sheet under the captions other current assets or other accrued expenses. Gain (loss) recognized Three months ended Six months ended July 1, July 2, July 1, July 2, (In millions) 2023 2022 2023 2022 Derivatives designated as cash flow hedges Interest rate swaps Amount reclassified from accumulated other comprehensive items to other income/(expense) $ (1) $ (1) $ (5) $ (2) Financial instruments designated as net investment hedges Foreign currency-denominated debt and other payables Included in currency translation adjustment within other comprehensive items (62) 671 (206) 1,033 Cross-currency interest rate swaps Included in currency translation adjustment within other comprehensive items 59 51 50 74 Included in other income/(expense) 16 4 33 6 Derivatives not designated as hedging instruments Currency exchange contracts Included in cost of product revenues — 21 (3) 12 Included in other income/(expense) (25) 13 (2) 12 Gains and losses recognized on currency exchange contracts are included in the accompanying statements of income together with the corresponding, offsetting losses and gains on the underlying hedged transactions. The company uses foreign currency-denominated debt, certain foreign currency-denominated payables, and cross-currency interest rate swaps to partially hedge its net investments in foreign operations against adverse movements in exchange rates. A portion of the company’s euro-denominated senior notes, certain foreign currency-denominated payables, and its 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 certain foreign currency-denominated payables, 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 2022 included in the company’s Annual Report on Form 10-K for additional information on the company’s risk management objectives and strategies. Fair Value of Other Financial Instruments The carrying value and fair value of the company’s debt instruments are as follows: July 1, 2023 December 31, 2022 Carrying Fair Carrying Fair (In millions) value value value value Senior notes $ 33,230 $ 29,536 $ 33,889 $ 29,901 Commercial paper 500 500 310 310 Other 76 76 79 79 $ 33,806 $ 30,112 $ 34,278 $ 30,290 The fair value of debt instruments 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 | 6 Months Ended |
Jul. 01, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Six months ended (In millions) July 1, 2023 July 2, 2022 Non-cash investing and financing activities Acquired but unpaid property, plant and equipment $ 231 $ 234 Declared but unpaid dividends 137 119 Issuance of stock upon vesting of restricted stock units 97 107 Excise tax from stock repurchases 29 — Cash, cash equivalents and restricted cash is included in the accompanying balance sheet as follows: (In millions) July 1, 2023 December 31, 2022 Cash and cash equivalents $ 3,133 $ 8,524 Restricted cash included in other current assets 13 12 Restricted cash included in other assets 7 1 Cash, cash equivalents and restricted cash $ 3,153 $ 8,537 Amounts included in restricted cash primarily 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 | 6 Months Ended |
Jul. 01, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs | Restructuring and Other Costs In the first six months of 2023, restructuring and other costs primarily included continuing charges for headcount reductions and facility consolidations in an effort to streamline operations, impairment of long-lived assets, and, to a lesser extent, net charges for pre-acquisition litigation and other matters. In 2023, severance actions associated with facility consolidations and cost reduction measures affected approximately 3% of the company’s workforce. As of August 4, 2023, the company has identified restructuring actions that will result in additional charges of approximately $85 million, primarily in 2023, and expects to identify additional actions in future periods which will be recorded when specified criteria are met, such as communication of benefit arrangements or when the costs have been incurred. Restructuring and other costs by segment are as follows: Three months ended Six months ended (In millions) July 1, 2023 July 1, 2023 Life Sciences Solutions $ 20 $ 80 Analytical Instruments 23 23 Specialty Diagnostics 2 10 Laboratory Products and Biopharma Services 133 176 Corporate 5 6 $ 183 $ 295 The following table summarizes the changes in the company’s accrued restructuring balance, which is included in other accrued expenses in the accompanying balance sheet. Other amounts reported as restructuring and other costs in the accompanying statements of income have been summarized in the notes to the table. (In millions) Total (a) Balance at December 31, 2022 $ 41 Net restructuring charges incurred in 2023 (b) 137 Payments (80) Balance at July 1, 2023 $ 98 (a) The movements in the restructuring liability principally consist of severance and other costs associated with facility consolidations. (b) Excludes $158 million of net charges, principally $99 million of charges for impairment of long-lived assets in the Laboratory Products and Biopharma Services and Life Sciences Solutions segments, $26 million of contract termination costs associated with facility closures in the Laboratory Products and Biopharma Services segment, and, to a lesser extent, $18 million of net charges for pre-acquisition litigation and other matters. The company expects to pay accrued restructuring costs primarily through 2023. |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Jul. 01, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | 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. The company’s estimates include, among others, asset reserve requirements as well as the amounts of future cash flows associated with certain assets and businesses that are used in assessing the risk of impairment. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In September 2022, the FASB issued new guidance to require entities to disclose information about supplier finance programs. Among other things, the new guidance requires expanded disclosure about key program terms, payment terms, and amounts outstanding for obligations under these programs for each period presented. The company adopted some aspects of this guidance in 2023 using a retrospective method and will adopt other aspects in 2024 using a prospective method. The adoption of this guidance did not have, and is not expected to have, a material impact on the company’s disclosures; however, the impact in future periods will be dependent on the extent of arrangements of this nature entered into by the company. In November 2021, the FASB issued new guidance to require entities to disclose information about certain types of government assistance they receive, including cash grants and tax credits. Among other things, the new guidance requires expanded disclosure regarding the qualitative and quantitative characteristics of the nature, amount, timing, and significant terms and conditions of transactions with a government arising from a grant or other forms of assistance accounted for under a contribution model. The company adopted this guidance in the fourth quarter of 2022 using a prospective method. The adoption of this guidance did not have a material impact on the company’s disclosures. |
Acquisitions | The company’s acquisitions have historically been made at prices above the determined fair value of the acquired identifiable net assets, resulting in goodwill, primarily due to expectations of the synergies that will be realized by combining the businesses and the benefits that will be gained from the assembled workforces. 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 services; and use of the commercial infrastructure of the acquired businesses to cost-effectively expand sales of company products and services. 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. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Components of Inventories | Inventories The components of inventories are as follows: (In millions) July 1, 2023 December 31, 2022 Raw materials $ 2,368 $ 2,405 Work in process 760 660 Finished goods 2,527 2,569 Inventories $ 5,655 $ 5,634 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Components of Purchase Price and Net Assets Acquired | The components of the purchase price and net assets acquired are as follows: (In millions) The Binding Site Purchase price Cash paid $ 2,412 Debt settled 307 Cash acquired (20) $ 2,699 Net assets acquired Definite-lived intangible assets: Customer relationships $ 868 Product technology 172 Tradenames 42 Goodwill 1,755 Net tangible assets 141 Deferred tax assets (liabilities) (279) $ 2,699 |
Revenue and Contract-related _2
Revenue and Contract-related Balances (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenues | Disaggregated Revenues Revenues by type are as follows: Three months ended Six months ended (In millions) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Revenues Consumables $ 4,433 $ 4,993 $ 8,939 $ 11,103 Instruments 1,838 2,010 3,736 3,917 Services 4,416 3,967 8,722 7,768 Consolidated revenues $ 10,687 $ 10,970 $ 21,397 $ 22,788 Revenues by geographic region based on customer location are as follows: Three months ended Six months ended (In millions) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Revenues North America $ 5,714 $ 6,032 $ 11,492 $ 12,355 Europe 2,654 2,551 5,255 5,601 Asia-Pacific 1,902 2,042 3,888 4,106 Other regions 417 345 762 726 Consolidated revenues $ 10,687 $ 10,970 $ 21,397 $ 22,788 |
Schedule of Contract Asset and Liability Balances | Noncurrent contract assets and noncurrent contract liabilities are included within other assets and other long-term liabilities in the accompanying balance sheet, respectively. Contract asset and liability balances are as follows: (In millions) July 1, 2023 December 31, 2022 Current contract assets, net $ 1,467 $ 1,312 Noncurrent contract assets, net 6 7 Current contract liabilities 2,590 2,601 Noncurrent contract liabilities 1,098 1,179 |
Business Segment and Geograph_2
Business Segment and Geographical Information (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Business Segment Information | Business Segment Information Three months ended Six months ended July 1, July 2, July 1, July 2, (In millions) 2023 2022 2023 2022 Revenues Life Sciences Solutions $ 2,463 $ 3,292 $ 5,075 $ 7,523 Analytical Instruments 1,749 1,607 3,472 3,125 Specialty Diagnostics 1,109 1,101 2,217 2,583 Laboratory Products and Biopharma Services 5,831 5,537 11,594 10,979 Eliminations (465) (567) (961) (1,422) Consolidated revenues 10,687 10,970 21,397 22,788 Segment Income Life Sciences Solutions 817 1,327 1,653 3,503 Analytical Instruments 432 344 853 645 Specialty Diagnostics 297 243 577 596 Laboratory Products and Biopharma Services 824 691 1,617 1,311 Subtotal reportable segments 2,370 2,605 4,700 6,055 Cost of revenues adjustments (18) (8) (59) (19) Selling, general and administrative expenses adjustments (6) 28 (14) 21 Restructuring and other costs (183) (24) (295) (26) Amortization of acquisition-related intangible assets (585) (600) (1,191) (1,209) Consolidated operating income 1,578 2,001 3,141 4,822 Interest income 178 36 324 54 Interest expense (326) (148) (626) (284) Other income/(expense) — 28 (46) (135) Consolidated income before taxes $ 1,430 $ 1,917 $ 2,793 $ 4,457 |
Schedule of Revenue by Country Based on Customer Location | Three months ended Six months ended (In millions) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Revenues United States $ 5,531 $ 5,846 $ 11,118 $ 11,943 China 856 1,001 1,726 1,911 Other 4,300 4,123 8,553 8,934 Consolidated revenues $ 10,687 $ 10,970 $ 21,397 $ 22,788 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of the Provision for Income Taxes | The provision for income taxes in the accompanying statements 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: Six months ended (In millions) July 1, 2023 July 2, 2022 Statutory federal income tax rate 21 % 21 % Provision for income taxes at statutory rate $ 587 $ 936 Increases (decreases) resulting from: Foreign rate differential (125) (138) Income tax credits (136) (117) Global intangible low-taxed income 46 46 Foreign-derived intangible income (55) (71) Excess tax benefits from stock options and restricted stock units (37) (31) Provision for (reversal of) tax reserves, net 8 13 Intra-entity transfers (144) (18) Foreign exchange loss on inter-company debt refinancing (112) — Provision for (reversal of) valuation allowances, net 66 (175) Withholding taxes 12 33 Tax return reassessments and settlements (38) (4) State income taxes, net of federal tax 53 67 Other, net (27) (42) Provision for income taxes $ 98 $ 499 |
Schedule of Unrecognized Tax Benefits | (In millions) 2023 Balance at beginning of year $ 572 Additions for tax positions of current year 4 Additions for tax positions of prior years 26 Reductions for tax positions of prior years (27) Settlements (18) Balance at end of period $ 557 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three months ended Six months ended July 1, July 2, July 1, July 2, (In millions except per share amounts) 2023 2022 2023 2022 Net income attributable to Thermo Fisher Scientific Inc. $ 1,361 $ 1,664 $ 2,650 $ 3,879 Basic weighted average shares 386 392 386 392 Plus effect of: stock options and restricted stock units 2 2 2 2 Diluted weighted average shares 388 394 388 394 Basic earnings per share $ 3.53 $ 4.25 $ 6.86 $ 9.90 Diluted earnings per share $ 3.51 $ 4.22 $ 6.83 $ 9.83 Antidilutive stock options excluded from diluted weighted average shares 2 2 2 2 |
Debt and Other Financing Arra_2
Debt and Other Financing Arrangements (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | Effective interest rate at July 1, July 1, December 31, (Dollars in millions) 2023 2023 2022 Commercial Paper 5.59 % $ 500 $ 310 Floating Rate (SOFR + 0.35%) 1.5-Year Senior Notes, Due 4/18/2023 — 1,000 Floating Rate (SOFR + 0.39%) 2-Year Senior Notes, Due 10/18/2023 500 500 0.797% 2-Year Senior Notes, Due 10/18/2023 1.03 % 1,350 1,350 Floating Rate (EURIBOR + 0.20%) 2-Year Senior Notes, Due 11/18/2023 (euro-denominated) 3.41 % 1,854 1,819 0.000% 2-Year Senior Notes, Due 11/18/2023 (euro-denominated) 0.06 % 600 589 0.75% 8-Year Senior Notes, Due 9/12/2024 (euro-denominated) 0.93 % 1,091 1,071 Floating Rate (SOFR + 0.53%) 3-Year Senior Notes, Due 10/18/2024 500 500 1.215% 3-Year Senior Notes, Due 10/18/2024 1.42 % 2,500 2,500 0.125% 5.5-Year Senior Notes, Due 3/1/2025 (euro-denominated) 0.41 % 873 857 2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) 2.10 % 698 686 0.853% 3-Year Senior Notes, Due 10/20/2025 (yen-denominated) 1.05 % 155 170 0.000% 4-Year Senior Notes, Due 11/18/2025 (euro-denominated) 0.15 % 600 589 3.20% 3-Year Senior Notes, Due 1/21/2026 (euro-denominated) 3.39 % 545 535 1.40% 8.5-Year Senior Notes, Due 1/23/2026 (euro-denominated) 1.53 % 764 749 1.45% 10-Year Senior Notes, Due 3/16/2027 (euro-denominated) 1.65 % 545 535 1.75% 7-Year Senior Notes, Due 4/15/2027 (euro-denominated) 1.96 % 654 642 1.054% 5-Year Senior Notes, Due 10/20/2027 (yen-denominated) 1.18 % 200 221 4.80% 5-Year Senior Notes, Due 11/21/2027 5.00 % 600 600 0.50% 8.5-Year Senior Notes, Due 3/1/2028 (euro-denominated) 0.77 % 873 857 1.375% 12-Year Senior Notes, Due 9/12/2028 (euro-denominated) 1.46 % 654 642 1.75% 7-Year Senior Notes, Due 10/15/2028 1.89 % 700 700 1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) 2.08 % 764 749 2.60% 10-Year Senior Notes, Due 10/1/2029 2.74 % 900 900 1.279% 7-Year Senior Notes, Due 10/19/2029 (yen-denominated) 1.44 % 33 36 0.80% 9-Year Senior Notes, Due 10/18/2030 (euro-denominated) 0.88 % 1,909 1,873 0.875% 12-Year Senior Notes, Due 10/1/2031 (euro-denominated) 1.13 % 982 963 2.00% 10-Year Senior Notes, Due 10/15/2031 2.23 % 1,200 1,200 2.375% 12-Year Senior Notes, Due 4/15/2032 (euro-denominated) 2.55 % 654 642 1.49% 10-Year Senior Notes, Due 10/20/2032 (yen-denominated) 1.60 % 44 48 4.95% 10-Year Senior Notes, Due 11/21/2032 5.09 % 600 600 1.125% 12-Year Senior Notes, Due 10/18/2033 (euro-denominated) 1.20 % 1,636 1,606 3.65% 12-Year Senior Notes, Due 11/21/2034 (euro-denominated) 3.76 % 818 803 2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) 2.94 % 764 749 1.50% 20-Year Senior Notes, Due 10/1/2039 (euro-denominated) 1.73 % 982 963 2.80% 20-Year Senior Notes, Due 10/15/2041 2.90 % 1,200 1,200 1.625% 20-Year Senior Notes, Due 10/18/2041 (euro-denominated) 1.77 % 1,364 1,339 2.069% 20-Year Senior Notes, Due 10/20/2042 (yen-denominated) 2.13 % 101 111 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 1.875% 30-Year Senior Notes, Due 10/1/2049 (euro-denominated) 1.98 % 1,091 1,071 Effective interest rate at July 1, July 1, December 31, (Dollars in millions) 2023 2023 2022 2.00% 30-Year Senior Notes, Due 10/18/2051 (euro-denominated) 2.07 % 818 803 2.382% 30-Year Senior Notes, Due 10/18/2052 (yen-denominated) 2.43 % 231 254 Other 76 79 Total borrowings at par value 34,073 34,561 Unamortized discount (112) (112) Unamortized debt issuance costs (155) (171) Total borrowings at carrying value 33,806 34,278 Finance lease liabilities 202 210 Less: Short-term obligations and current maturities 4,814 5,579 Long-term obligations $ 29,194 $ 28,909 SOFR - Secured Overnight Financing Rate EURIBOR - Euro Interbank Offered Rate |
Comprehensive Income_(Loss) (Ta
Comprehensive Income/(Loss) (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Changes in Each Component of Accumulated Other Comprehensive Items | Changes in each component of accumulated other comprehensive income/(loss), net of tax, are as follows: (In millions) Currency Unrealized Pension and Total Balance at December 31, 2022 $ (2,880) $ (33) $ (186) $ (3,099) Other comprehensive income/(loss) before reclassifications 169 — — 169 Amounts reclassified from accumulated other comprehensive income/(loss) 4 4 (2) 6 Net other comprehensive income/(loss) 173 4 (2) 175 Balance at July 1, 2023 $ (2,707) $ (29) $ (188) $ (2,924) |
Fair Value Measurements and F_2
Fair Value Measurements and Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Information About the Company's Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present information about the company’s financial assets and liabilities measured at fair value on a recurring basis: July 1, Quoted Significant Significant (In millions) 2023 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 810 $ 810 $ — $ — Investments 23 23 — — Warrants 11 — 11 — Insurance contracts 192 — 192 — Derivative contracts 7 — 7 — Total assets $ 1,043 $ 833 $ 210 $ — Liabilities Derivative contracts $ 16 $ — $ 16 $ — Contingent consideration 90 — — 90 Total liabilities $ 106 $ — $ 16 $ 90 December 31, Quoted Significant Significant (In millions) 2022 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 5,804 $ 5,804 $ — $ — Investments 25 25 — — Warrants 12 — 12 — Insurance contracts 162 — 162 — Derivative contracts 79 — 79 — Total assets $ 6,082 $ 5,829 $ 253 $ — Liabilities Derivative contracts $ 101 $ — $ 101 $ — Contingent consideration 174 — — 174 Total liabilities $ 275 $ — $ 101 $ 174 |
Rollforward of the Fair Value of Investments | The following table provides a rollforward of the fair value, as determined by level 3 inputs (such as likelihood of achieving production or revenue milestones, as well as changes in the fair values of the investments underlying a recapitalization investment portfolio), of the contingent consideration. Three months ended Six months ended July 1, July 2, July 1, July 2, (In millions) 2023 2022 2023 2022 Contingent consideration Beginning balance $ 136 $ 261 $ 174 $ 317 Acquisitions (including assumed balances) 1 — 1 (18) Payments (43) (2) (58) (32) Changes in fair value included in earnings (4) (43) (27) (51) Ending balance $ 90 $ 216 $ 90 $ 216 |
Schedule of the Aggregate Notional Value of Outstanding Derivative Contracts | The following table provides the aggregate notional value of outstanding derivative contracts. (In millions) July 1, 2023 December 31, 2022 Notional amount Cross-currency interest rate swaps - designated as net investment hedges $ 2,200 $ 2,100 Currency exchange contracts 1,500 2,434 |
Schedule of the Fair Value of Derivative Instruments | While certain derivatives are subject to netting arrangements with counterparties, the company does not offset derivative assets and liabilities within the balance sheet. The following tables present the fair value of derivative instruments in the accompanying balance sheets and statements of income. Fair value – assets Fair value – liabilities July 1, December 31, July 1, December 31, (In millions) 2023 2022 2023 2022 Derivatives designated as hedging instruments Cross-currency interest rate swaps (a) $ 6 $ 77 $ 15 $ 85 Derivatives not designated as hedging instruments Currency exchange contracts (b) 1 2 1 16 Total derivatives $ 7 $ 79 $ 16 $ 101 (a) The fair value of the cross-currency interest rate swaps is included in the accompanying balance sheet under the caption other assets or other long-term liabilities. (b) The fair value of the currency exchange contracts is included in the accompanying balance sheet under the captions other current assets or other accrued expenses. |
Schedule of Derivative Instruments Gains and Losses | Gain (loss) recognized Three months ended Six months ended July 1, July 2, July 1, July 2, (In millions) 2023 2022 2023 2022 Derivatives designated as cash flow hedges Interest rate swaps Amount reclassified from accumulated other comprehensive items to other income/(expense) $ (1) $ (1) $ (5) $ (2) Financial instruments designated as net investment hedges Foreign currency-denominated debt and other payables Included in currency translation adjustment within other comprehensive items (62) 671 (206) 1,033 Cross-currency interest rate swaps Included in currency translation adjustment within other comprehensive items 59 51 50 74 Included in other income/(expense) 16 4 33 6 Derivatives not designated as hedging instruments Currency exchange contracts Included in cost of product revenues — 21 (3) 12 Included in other income/(expense) (25) 13 (2) 12 |
Schedule of the Fair Value of the Company's Debt Instruments | The carrying value and fair value of the company’s debt instruments are as follows: July 1, 2023 December 31, 2022 Carrying Fair Carrying Fair (In millions) value value value value Senior notes $ 33,230 $ 29,536 $ 33,889 $ 29,901 Commercial paper 500 500 310 310 Other 76 76 79 79 $ 33,806 $ 30,112 $ 34,278 $ 30,290 The fair value of debt instruments 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 the Carrying Value of the Company's Debt Instruments | The carrying value and fair value of the company’s debt instruments are as follows: July 1, 2023 December 31, 2022 Carrying Fair Carrying Fair (In millions) value value value value Senior notes $ 33,230 $ 29,536 $ 33,889 $ 29,901 Commercial paper 500 500 310 310 Other 76 76 79 79 $ 33,806 $ 30,112 $ 34,278 $ 30,290 The fair value of debt instruments 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) | 6 Months Ended |
Jul. 01, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Cash Flow Information | Six months ended (In millions) July 1, 2023 July 2, 2022 Non-cash investing and financing activities Acquired but unpaid property, plant and equipment $ 231 $ 234 Declared but unpaid dividends 137 119 Issuance of stock upon vesting of restricted stock units 97 107 Excise tax from stock repurchases 29 — |
Schedule of Cash, Cash Equivalents and Restricted Cash | Cash, cash equivalents and restricted cash is included in the accompanying balance sheet as follows: (In millions) July 1, 2023 December 31, 2022 Cash and cash equivalents $ 3,133 $ 8,524 Restricted cash included in other current assets 13 12 Restricted cash included in other assets 7 1 Cash, cash equivalents and restricted cash $ 3,153 $ 8,537 |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Other Costs by Segment | Restructuring and other costs by segment are as follows: Three months ended Six months ended (In millions) July 1, 2023 July 1, 2023 Life Sciences Solutions $ 20 $ 80 Analytical Instruments 23 23 Specialty Diagnostics 2 10 Laboratory Products and Biopharma Services 133 176 Corporate 5 6 $ 183 $ 295 |
Summary of Changes in the Company's Accrued Restructuring Balance | The following table summarizes the changes in the company’s accrued restructuring balance, which is included in other accrued expenses in the accompanying balance sheet. Other amounts reported as restructuring and other costs in the accompanying statements of income have been summarized in the notes to the table. (In millions) Total (a) Balance at December 31, 2022 $ 41 Net restructuring charges incurred in 2023 (b) 137 Payments (80) Balance at July 1, 2023 $ 98 (a) The movements in the restructuring liability principally consist of severance and other costs associated with facility consolidations. (b) Excludes $158 million of net charges, principally $99 million of charges for impairment of long-lived assets in the Laboratory Products and Biopharma Services and Life Sciences Solutions segments, $26 million of contract termination costs associated with facility closures in the Laboratory Products and Biopharma Services segment, and, to a lesser extent, $18 million of net charges for pre-acquisition litigation and other matters. |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Schedule of Components of Inventories (Details) - USD ($) $ in Millions | Jul. 01, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 2,368 | $ 2,405 |
Work in process | 760 | 660 |
Finished goods | 2,527 | 2,569 |
Inventories | $ 5,655 | $ 5,634 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jan. 03, 2023 | Jul. 01, 2023 | |
The Binding Site Group | ||
Business Acquisition [Line Items] | ||
Cash paid | $ 2,412 | |
Debt settled | 307 | |
Cash acquired | (20) | |
Purchase price | 2,699 | |
Goodwill | 1,755 | |
Net tangible assets | 141 | |
Deferred tax assets (liabilities) | (279) | |
Net assets acquired | 2,699 | |
Weighted-average amortization period | 17 years | |
The Binding Site Group | Customer relationships | ||
Business Acquisition [Line Items] | ||
Definite-lived intangible assets: | 868 | |
Weighted-average amortization period | 18 years | |
The Binding Site Group | Product technology | ||
Business Acquisition [Line Items] | ||
Definite-lived intangible assets: | 172 | |
Weighted-average amortization period | 14 years | |
The Binding Site Group | Tradenames | ||
Business Acquisition [Line Items] | ||
Definite-lived intangible assets: | $ 42 | |
Weighted-average amortization period | 15 years | |
CorEvitas, LLC | ||
Business Acquisition [Line Items] | ||
Expected purchase price of acquisition | $ 910 |
Revenue and Contract-related _3
Revenue and Contract-related Balances - Schedule of Disaggregated Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 10,687 | $ 10,970 | $ 21,397 | $ 22,788 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,714 | 6,032 | 11,492 | 12,355 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,654 | 2,551 | 5,255 | 5,601 |
Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,902 | 2,042 | 3,888 | 4,106 |
Other regions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 417 | 345 | 762 | 726 |
Consumables | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,433 | 4,993 | 8,939 | 11,103 |
Instruments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,838 | 2,010 | 3,736 | 3,917 |
Service revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 4,416 | $ 3,967 | $ 8,722 | $ 7,768 |
Revenue and Contract-related _4
Revenue and Contract-related Balances - Revenue Performance Obligations (Details) $ in Millions | Jul. 01, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation amount | $ 25,390 |
Minimum [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Warranty agreement | 3 years |
Maximum [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Warranty agreement | 5 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-02 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation percentage | 56% |
Remaining performance obligation, expected timing | 12 months |
Revenue and Contract-related _5
Revenue and Contract-related Balances - Schedule of Contract Asset and Liability Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||||
Current contract assets, net | $ 1,467 | $ 1,467 | $ 1,312 | ||
Noncurrent contract assets, net | 6 | 6 | 7 | ||
Current contract liabilities | 2,590 | 2,590 | 2,601 | ||
Noncurrent contract liabilities | 1,098 | 1,098 | $ 1,179 | ||
Revenue recognized that was included in the current contract liability balance at the beginning of the period | $ 680 | $ 710 | $ 1,980 | $ 1,990 |
Business Segment and Geograph_3
Business Segment and Geographical Information - Schedule of Business Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 10,687 | $ 10,970 | $ 21,397 | $ 22,788 |
Segment Income | 1,578 | 2,001 | 3,141 | 4,822 |
Restructuring and other costs | (183) | (24) | (295) | (26) |
Amortization of acquisition-related intangible assets | (1,191) | (1,209) | ||
Interest income | 178 | 36 | 324 | 54 |
Interest expense | (326) | (148) | (626) | (284) |
Other income/(expense) | 0 | 28 | (46) | (135) |
Income before income taxes | 1,430 | 1,917 | 2,793 | 4,457 |
Total Reportable Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment Income | 2,370 | 2,605 | 4,700 | 6,055 |
Total Reportable Segments | Life Sciences Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,463 | 3,292 | 5,075 | 7,523 |
Segment Income | 817 | 1,327 | 1,653 | 3,503 |
Restructuring and other costs | (20) | (80) | ||
Total Reportable Segments | Analytical Instruments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,749 | 1,607 | 3,472 | 3,125 |
Segment Income | 432 | 344 | 853 | 645 |
Restructuring and other costs | (23) | (23) | ||
Total Reportable Segments | Specialty Diagnostics | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,109 | 1,101 | 2,217 | 2,583 |
Segment Income | 297 | 243 | 577 | 596 |
Restructuring and other costs | (2) | (10) | ||
Total Reportable Segments | Laboratory Products and Biopharma Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 5,831 | 5,537 | 11,594 | 10,979 |
Segment Income | 824 | 691 | 1,617 | 1,311 |
Restructuring and other costs | (133) | (176) | ||
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (465) | (567) | (961) | (1,422) |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Cost of revenues adjustments | (18) | (8) | (59) | (19) |
Selling, general and administrative expenses adjustments | (6) | 28 | (14) | 21 |
Restructuring and other costs | (183) | (24) | (295) | (26) |
Amortization of acquisition-related intangible assets | $ (585) | $ (600) | $ (1,191) | $ (1,209) |
Business Segment and Geograph_4
Business Segment and Geographical Information - Schedule of Revenue by Country Based on Customer Location (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 10,687 | $ 10,970 | $ 21,397 | $ 22,788 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 5,531 | 5,846 | 11,118 | 11,943 |
China | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 856 | 1,001 | 1,726 | 1,911 |
Other | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 4,300 | $ 4,123 | $ 8,553 | $ 8,934 |
Income Taxes - Schedule of the
Income Taxes - Schedule of the Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Statutory federal income tax rate | 21% | 21% | ||
Provision for income taxes at statutory rate | $ 587 | $ 936 | ||
Foreign rate differential | (125) | (138) | ||
Income tax credits | (136) | (117) | ||
Global intangible low-taxed income | 46 | 46 | ||
Foreign-derived intangible income | (55) | (71) | ||
Excess tax benefits from stock options and restricted stock units | (37) | (31) | ||
Provision for (reversal of) tax reserves, net | 8 | 13 | ||
Intra-entity transfers | (144) | (18) | ||
Foreign exchange loss on inter-company debt refinancing | (112) | 0 | ||
Provision for (reversal of) valuation allowances, net | 66 | (175) | ||
Withholding taxes | 12 | 33 | ||
Tax return reassessments and settlements | (38) | (4) | ||
State income taxes, net of federal tax | 53 | 67 | ||
Other, net | (27) | (42) | ||
Provision for income taxes | $ 52 | $ 198 | $ 98 | $ 499 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Millions | Jul. 01, 2023 USD ($) country | Dec. 31, 2022 USD ($) |
Income Tax Disclosure [Abstract] | ||
Countries with taxable presence | country | 70 | |
Unrecognized tax benefits | $ | $ 557 | $ 572 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) $ in Millions | 6 Months Ended |
Jul. 01, 2023 USD ($) | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |
Balance at beginning of year | $ 572 |
Additions for tax positions of current year | 4 |
Additions for tax positions of prior years | 26 |
Reductions for tax positions of prior years | (27) |
Settlements | (18) |
Balance at end of period | $ 557 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 1,361 | $ 1,664 | $ 2,650 | $ 3,879 |
Basic weighted average shares (in shares) | 386 | 392 | 386 | 392 |
Plus effect of: stock options and restricted stock units (in shares) | 2 | 2 | 2 | 2 |
Diluted weighted average shares (in shares) | 388 | 394 | 388 | 394 |
Basic (in dollars per share) | $ 3.53 | $ 4.25 | $ 6.86 | $ 9.90 |
Diluted (in dollars per share) | $ 3.51 | $ 4.22 | $ 6.83 | $ 9.83 |
Antidilutive stock options excluded from diluted weighted average shares (in shares) | 2 | 2 | 2 | 2 |
Debt and Other Financing Arra_3
Debt and Other Financing Arrangements - Schedule of Outstanding Debt (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 01, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Total borrowings at par value | $ 34,073 | $ 34,561 |
Unamortized discount | (112) | (112) |
Unamortized debt issuance costs | (155) | (171) |
Total borrowings at carrying value | 33,806 | 34,278 |
Finance lease liabilities | 202 | 210 |
Less: Short-term obligations and current maturities | 4,814 | 5,579 |
Long-term obligations | $ 29,194 | 28,909 |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 5.59% | |
Total borrowings at par value | $ 500 | 310 |
Total borrowings at carrying value | 500 | 310 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Total borrowings at carrying value | $ 33,230 | 33,889 |
Senior Notes | Floating Rate (SOFR + 0.35%) 1.5-Year Senior Notes, Due 4/18/2023 | ||
Debt Instrument [Line Items] | ||
Variable rate, basis spread | 0.35% | |
Term | 1 year 6 months | |
Total borrowings at par value | 1,000 | |
Senior Notes | Floating Rate (SOFR + 0.39%) 2-Year Senior Notes, Due 10/18/2023 | ||
Debt Instrument [Line Items] | ||
Variable rate, basis spread | 0.39% | |
Term | 2 years | |
Total borrowings at par value | $ 500 | 500 |
Senior Notes | 0.797% 2-Year Senior Notes, Due 10/18/2023 | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.797% | |
Term | 2 years | |
Effective interest rate | 1.03% | |
Total borrowings at par value | $ 1,350 | 1,350 |
Senior Notes | Floating Rate (EURIBOR + 0.20%) 2-Year Senior Notes, Due 11/18/2023 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Variable rate, basis spread | 0.20% | |
Term | 2 years | |
Effective interest rate | 3.41% | |
Total borrowings at par value | $ 1,854 | 1,819 |
Senior Notes | 0.000% 2-Year Senior Notes, Due 11/18/2023 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 0% | |
Term | 2 years | |
Effective interest rate | 0.06% | |
Total borrowings at par value | $ 600 | 589 |
Senior Notes | 0.75% 8-Year Senior Notes, Due 9/12/2024 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.75% | |
Term | 8 years | |
Effective interest rate | 0.93% | |
Total borrowings at par value | $ 1,091 | 1,071 |
Senior Notes | Floating Rate (SOFR + 0.53%) 3-Year Senior Notes, Due 10/18/2024 | ||
Debt Instrument [Line Items] | ||
Variable rate, basis spread | 0.53% | |
Term | 3 years | |
Total borrowings at par value | $ 500 | 500 |
Senior Notes | 1.215% 3-Year Senior Notes, Due 10/18/2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.215% | |
Term | 3 years | |
Effective interest rate | 1.42% | |
Total borrowings at par value | $ 2,500 | 2,500 |
Senior Notes | 0.125% 5.5-Year Senior Notes, Due 3/1/2025 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.125% | |
Term | 5 years 6 months | |
Effective interest rate | 0.41% | |
Total borrowings at par value | $ 873 | 857 |
Senior Notes | 2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 2% | |
Term | 10 years | |
Effective interest rate | 2.10% | |
Total borrowings at par value | $ 698 | 686 |
Senior Notes | 0.853% 3-Year Senior Notes, Due 10/20/2025 (yen-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.853% | |
Term | 3 years | |
Effective interest rate | 1.05% | |
Total borrowings at par value | $ 155 | 170 |
Senior Notes | 0.000% 4-Year Senior Notes, Due 11/18/2025 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 0% | |
Term | 4 years | |
Effective interest rate | 0.15% | |
Total borrowings at par value | $ 600 | 589 |
Senior Notes | 3.20% 3-Year Senior Notes, Due 1/21/2026 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.20% | |
Term | 3 years | |
Effective interest rate | 3.39% | |
Total borrowings at par value | $ 545 | 535 |
Senior Notes | 1.40% 8.5-Year Senior Notes, Due 1/23/2026 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.40% | |
Term | 8 years 6 months | |
Effective interest rate | 1.53% | |
Total borrowings at par value | $ 764 | 749 |
Senior Notes | 1.45% 10-Year Senior Notes, Due 3/16/2027 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.45% | |
Term | 10 years | |
Effective interest rate | 1.65% | |
Total borrowings at par value | $ 545 | 535 |
Senior Notes | 1.75% 7-Year Senior Notes, Due 4/15/2027 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.75% | |
Term | 7 years | |
Effective interest rate | 1.96% | |
Total borrowings at par value | $ 654 | 642 |
Senior Notes | 1.054% 5-Year Senior Notes, Due 10/20/2027 (yen-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.054% | |
Term | 5 years | |
Effective interest rate | 1.18% | |
Total borrowings at par value | $ 200 | 221 |
Senior Notes | 4.80% 5-Year Senior Notes, Due 11/21/2027 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.80% | |
Term | 5 years | |
Effective interest rate | 5% | |
Total borrowings at par value | $ 600 | 600 |
Senior Notes | 0.50% 8.5-Year Senior Notes, Due 3/1/2028 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.50% | |
Term | 8 years 6 months | |
Effective interest rate | 0.77% | |
Total borrowings at par value | $ 873 | 857 |
Senior Notes | 1.375% 12-Year Senior Notes, Due 9/12/2028 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.375% | |
Term | 12 years | |
Effective interest rate | 1.46% | |
Total borrowings at par value | $ 654 | 642 |
Senior Notes | 1.75% 7-Year Senior Notes, Due 10/15/2028 | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.75% | |
Term | 7 years | |
Effective interest rate | 1.89% | |
Total borrowings at par value | $ 700 | 700 |
Senior Notes | 1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.95% | |
Term | 12 years | |
Effective interest rate | 2.08% | |
Total borrowings at par value | $ 764 | 749 |
Senior Notes | 2.60% 10-Year Senior Notes, Due 10/1/2029 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.60% | |
Term | 10 years | |
Effective interest rate | 2.74% | |
Total borrowings at par value | $ 900 | 900 |
Senior Notes | 1.279% 7-Year Senior Notes, Due 10/19/2029 (yen-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.279% | |
Term | 7 years | |
Effective interest rate | 1.44% | |
Total borrowings at par value | $ 33 | 36 |
Senior Notes | 0.80% 9-Year Senior Notes, Due 10/18/2030 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.80% | |
Term | 9 years | |
Effective interest rate | 0.88% | |
Total borrowings at par value | $ 1,909 | 1,873 |
Senior Notes | 0.875% 12-Year Senior Notes, Due 10/1/2031 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.875% | |
Term | 12 years | |
Effective interest rate | 1.13% | |
Total borrowings at par value | $ 982 | 963 |
Senior Notes | 2.00% 10-Year Senior Notes, Due 10/15/2031 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2% | |
Term | 10 years | |
Effective interest rate | 2.23% | |
Total borrowings at par value | $ 1,200 | 1,200 |
Senior Notes | 2.375% 12-Year Senior Notes, Due 4/15/2032 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.375% | |
Term | 12 years | |
Effective interest rate | 2.55% | |
Total borrowings at par value | $ 654 | 642 |
Senior Notes | 1.49% 10-Year Senior Notes, Due 10/20/2032 (yen-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.49% | |
Term | 10 years | |
Effective interest rate | 1.60% | |
Total borrowings at par value | $ 44 | 48 |
Senior Notes | 4.95% 10-Year Senior Notes, Due 11/21/2032 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.95% | |
Term | 10 years | |
Effective interest rate | 5.09% | |
Total borrowings at par value | $ 600 | 600 |
Senior Notes | 1.125% 12-Year Senior Notes, Due 10/18/2033 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.125% | |
Term | 12 years | |
Effective interest rate | 1.20% | |
Total borrowings at par value | $ 1,636 | 1,606 |
Senior Notes | 3.65% 12-Year Senior Notes, Due 11/21/2034 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.65% | |
Term | 12 years | |
Effective interest rate | 3.76% | |
Total borrowings at par value | $ 818 | 803 |
Senior Notes | 2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.875% | |
Term | 20 years | |
Effective interest rate | 2.94% | |
Total borrowings at par value | $ 764 | 749 |
Senior Notes | 1.50% 20-Year Senior Notes, Due 10/1/2039 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.50% | |
Term | 20 years | |
Effective interest rate | 1.73% | |
Total borrowings at par value | $ 982 | 963 |
Senior Notes | 2.80% 20-Year Senior Notes, Due 10/15/2041 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.80% | |
Term | 20 years | |
Effective interest rate | 2.90% | |
Total borrowings at par value | $ 1,200 | 1,200 |
Senior Notes | 1.625% 20-Year Senior Notes, Due 10/18/2041 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.625% | |
Term | 20 years | |
Effective interest rate | 1.77% | |
Total borrowings at par value | $ 1,364 | 1,339 |
Senior Notes | 2.069% 20-Year Senior Notes, Due 10/20/2042 (yen-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.069% | |
Term | 20 years | |
Effective interest rate | 2.13% | |
Total borrowings at par value | $ 101 | 111 |
Senior Notes | 5.30% 30-Year Senior Notes, Due 2/1/2044 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.30% | |
Term | 30 years | |
Effective interest rate | 5.37% | |
Total borrowings at par value | $ 400 | 400 |
Senior Notes | 4.10% 30-Year Senior Notes, Due 8/15/2047 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.10% | |
Term | 30 years | |
Effective interest rate | 4.23% | |
Total borrowings at par value | $ 750 | 750 |
Senior Notes | 1.875% 30-Year Senior Notes, Due 10/1/2049 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.875% | |
Term | 30 years | |
Effective interest rate | 1.98% | |
Total borrowings at par value | $ 1,091 | 1,071 |
Senior Notes | 2.00% 30-Year Senior Notes, Due 10/18/2051 (euro-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 2% | |
Term | 30 years | |
Effective interest rate | 2.07% | |
Total borrowings at par value | $ 818 | 803 |
Senior Notes | 2.382% 30-Year Senior Notes, Due 10/18/2052 (yen-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.382% | |
Term | 30 years | |
Effective interest rate | 2.43% | |
Total borrowings at par value | $ 231 | 254 |
Other | ||
Debt Instrument [Line Items] | ||
Total borrowings at par value | 76 | 79 |
Total borrowings at carrying value | $ 76 | $ 79 |
Debt and Other Financing Arra_4
Debt and Other Financing Arrangements (Details) | 3 Months Ended | 6 Months Ended | |
Apr. 02, 2022 USD ($) | Jul. 01, 2023 USD ($) | Jul. 02, 2022 USD ($) | |
Short-term Financing [Line Items] | |||
Loss on early extinguishment of debt | $ 26,000,000 | $ 0 | $ 26,000,000 |
Senior Notes | |||
Short-term Financing [Line Items] | |||
Redemption price | 100% | ||
Revolving Credit Facility | |||
Short-term Financing [Line Items] | |||
Borrowing capacity | $ 5,000,000,000 | ||
Minimum consolidated interest coverage ratio | 3.5 | ||
Borrowings outstanding | $ 0 | ||
Senior Notes 3.65% Due 2025 [Member] | Senior Notes | |||
Short-term Financing [Line Items] | |||
Interest rate | 3.65% | ||
0.000% 2-Year Senior Notes, Due 11/18/2023 (euro-denominated) | Senior Notes | |||
Short-term Financing [Line Items] | |||
Interest rate | 0% | ||
0.000% 4-Year Senior Notes, Due 11/18/2025 (euro-denominated) | Senior Notes | |||
Short-term Financing [Line Items] | |||
Interest rate | 0% | ||
0.80% 9-Year Senior Notes, Due 10/18/2030 (euro-denominated) | Senior Notes | |||
Short-term Financing [Line Items] | |||
Interest rate | 0.80% | ||
1.125% 12-Year Senior Notes, Due 10/18/2033 (euro-denominated) | Senior Notes | |||
Short-term Financing [Line Items] | |||
Interest rate | 1.125% | ||
1.625% 20-Year Senior Notes, Due 10/18/2041 (euro-denominated) | Senior Notes | |||
Short-term Financing [Line Items] | |||
Interest rate | 1.625% | ||
2.00% 30-Year Senior Notes, Due 10/18/2051 (euro-denominated) | Senior Notes | |||
Short-term Financing [Line Items] | |||
Interest rate | 2% | ||
Commercial Paper | U.S. Commercial Paper Program | |||
Short-term Financing [Line Items] | |||
Maximum maturity period | 397 days | ||
Commercial Paper | Euro Commercial Paper Program | |||
Short-term Financing [Line Items] | |||
Maximum maturity period | 183 days |
Comprehensive Income_(Loss) - S
Comprehensive Income/(Loss) - Schedule of Changes in Each Component of Accumulated Other Comprehensive Items (Details) $ in Millions | 6 Months Ended |
Jul. 01, 2023 USD ($) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning Balance | $ 44,032 |
Ending Balance | 43,802 |
Currency translation adjustment | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning Balance | (2,880) |
Other comprehensive income/(loss) before reclassifications | 169 |
Amounts reclassified from accumulated other comprehensive income/(loss) | 4 |
Other Comprehensive Income, Other, Net of Tax | 173 |
Ending Balance | (2,707) |
Unrealized losses on hedging instruments | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning Balance | (33) |
Other comprehensive income/(loss) before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive income/(loss) | 4 |
Other Comprehensive Income, Other, Net of Tax | 4 |
Ending Balance | (29) |
Pension and other postretirement benefit liability adjustment | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning Balance | (186) |
Other comprehensive income/(loss) before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive income/(loss) | (2) |
Other Comprehensive Income, Other, Net of Tax | (2) |
Ending Balance | (188) |
Accumulated Other Comprehensive Items | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning Balance | (3,099) |
Other comprehensive income/(loss) before reclassifications | 169 |
Amounts reclassified from accumulated other comprehensive income/(loss) | 6 |
Other Comprehensive Income, Other, Net of Tax | 175 |
Ending Balance | $ (2,924) |
Fair Value Measurements and F_3
Fair Value Measurements and Fair Value of Financial Instruments - Assets and Liabilities on a Recurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | Dec. 31, 2022 | |
Liabilities [Abstract] | ||||
Gain (loss) on sale of investments | $ 17 | $ (44) | $ (122) | |
Fair Value, Recurring | ||||
Assets [Abstract] | ||||
Cash equivalents | 810 | $ 5,804 | ||
Investments | 23 | 25 | ||
Warrants | 11 | 12 | ||
Insurance contracts | 192 | 162 | ||
Derivative contracts | 7 | 79 | ||
Total Assets | 1,043 | 6,082 | ||
Liabilities [Abstract] | ||||
Derivative contracts | 16 | 101 | ||
Contingent consideration | 90 | 174 | ||
Total Liabilities | 106 | 275 | ||
Fair Value, Recurring | Quoted Prices in Active Markets (Level I) | ||||
Assets [Abstract] | ||||
Cash equivalents | 810 | 5,804 | ||
Investments | 23 | 25 | ||
Warrants | 0 | 0 | ||
Insurance contracts | 0 | 0 | ||
Derivative contracts | 0 | 0 | ||
Total Assets | 833 | 5,829 | ||
Liabilities [Abstract] | ||||
Derivative contracts | 0 | 0 | ||
Contingent consideration | 0 | 0 | ||
Total Liabilities | 0 | 0 | ||
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||||
Assets [Abstract] | ||||
Cash equivalents | 0 | 0 | ||
Investments | 0 | 0 | ||
Warrants | 11 | 12 | ||
Insurance contracts | 192 | 162 | ||
Derivative contracts | 7 | 79 | ||
Total Assets | 210 | 253 | ||
Liabilities [Abstract] | ||||
Derivative contracts | 16 | 101 | ||
Contingent consideration | 0 | 0 | ||
Total Liabilities | 16 | 101 | ||
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||||
Assets [Abstract] | ||||
Cash equivalents | 0 | 0 | ||
Investments | 0 | 0 | ||
Warrants | 0 | 0 | ||
Insurance contracts | 0 | 0 | ||
Derivative contracts | 0 | 0 | ||
Total Assets | 0 | 0 | ||
Liabilities [Abstract] | ||||
Derivative contracts | 0 | 0 | ||
Contingent consideration | 90 | 174 | ||
Total Liabilities | $ 90 | $ 174 |
Fair Value Measurements and F_4
Fair Value Measurements and Fair Value of Financial Instruments - Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - Contingent consideration - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 136 | $ 261 | $ 174 | $ 317 |
Acquisitions (including assumed balances) | 1 | 0 | 1 | (18) |
Payments | (43) | (2) | (58) | (32) |
Changes in fair value included in earnings | (4) | (43) | (27) | (51) |
Ending balance | $ 90 | $ 216 | $ 90 | $ 216 |
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement of Income [Extensible Enumeration] | Selling, general and administrative expenses | Selling, general and administrative expenses |
Fair Value Measurements and F_5
Fair Value Measurements and Fair Value of Financial Instruments - Derivative Assets & Liabilities (Details) - USD ($) $ in Millions | Jul. 01, 2023 | Dec. 31, 2022 |
Cross-currency interest rate swaps | Derivatives Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Fair value – assets | $ 6 | $ 77 |
Fair value – liabilities | 15 | 85 |
Cross-currency interest rate swaps | Financial instruments designated as net investment hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 2,200 | 2,100 |
Currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 1,500 | 2,434 |
Currency exchange contracts | Derivatives Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Fair value – assets | 1 | 2 |
Fair value – liabilities | 1 | 16 |
Fair Value, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
Fair value – assets | 7 | 79 |
Fair value – liabilities | $ 16 | $ 101 |
Fair Value Measurements and F_6
Fair Value Measurements and Fair Value of Financial Instruments - Derivative Instruments, Gains & Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Currency exchange contracts | Included in cost of product revenues | Derivatives Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative | $ 0 | $ 21 | $ (3) | $ 12 |
Currency exchange contracts | Included in other income/(expense) | Derivatives Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative | (25) | 13 | (2) | 12 |
Derivatives designated as cash flow hedges | Interest rate swaps | Included in other income/(expense) | Derivatives Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on cash flow hedge reclassified from AOCI | (1) | (1) | (5) | (2) |
Financial instruments designated as net investment hedges | Foreign currency-denominated debt and other payables | Derivatives Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on currency translation adjustment | (62) | 671 | (206) | 1,033 |
Financial instruments designated as net investment hedges | Cross-currency interest rate swaps | Derivatives Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on currency translation adjustment | 59 | 51 | 50 | 74 |
Gain (loss) on derivative | $ 16 | $ 4 | $ 33 | $ 6 |
Fair Value Measurements and F_7
Fair Value Measurements and Fair Value of Financial Instruments - Fair Value of Other Instruments (Details) - USD ($) $ in Millions | Jul. 01, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value | $ 33,806 | $ 34,278 |
Fair value | 30,112 | 30,290 |
Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value | 33,230 | 33,889 |
Fair value | 29,536 | 29,901 |
Commercial Paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value | 500 | 310 |
Fair value | 500 | 310 |
Other | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value | 76 | 79 |
Fair value | $ 76 | $ 79 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jul. 01, 2023 | Jul. 02, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Non-cash Investing and Financing Activities [Abstract] | ||||
Acquired but unpaid property, plant and equipment | $ 231 | $ 234 | ||
Declared but unpaid dividends | 137 | 119 | ||
Issuance of stock upon vesting of restricted stock units | 97 | 107 | ||
Excise tax from stock repurchases | 29 | 0 | ||
Cash and cash equivalents | 3,133 | $ 8,524 | ||
Restricted cash included in other current assets | 13 | 12 | ||
Restricted cash included in other assets | 7 | 1 | ||
Cash, cash equivalents and restricted cash | $ 3,153 | $ 1,905 | $ 8,537 | $ 4,491 |
Restricted Cash and Cash Equivalents, Current, Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets | Other current assets | ||
Restricted Cash and Cash Equivalents, Noncurrent, Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Restructuring and Other Costs_2
Restructuring and Other Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | Aug. 04, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||||
Workforce reduction | 3% | ||||
Restructuring and other costs | $ 183 | $ 24 | $ 295 | $ 26 | |
Corporate, Non-Segment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other costs | 5 | 6 | |||
Life Sciences Solutions | Total Reportable Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other costs | 20 | 80 | |||
Analytical Instruments | Total Reportable Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other costs | 23 | 23 | |||
Specialty Diagnostics | Total Reportable Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other costs | 2 | 10 | |||
Laboratory Products and Biopharma Services | Total Reportable Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other costs | $ 133 | $ 176 | |||
Forecast | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Additional restructuring charges | $ 85 |
Restructuring and Other Costs -
Restructuring and Other Costs - Reserves (Details) $ in Millions | 6 Months Ended |
Jul. 01, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 41 |
Net restructuring charges incurred in 2022 | 137 |
Payments | (80) |
Ending balance | 98 |
Non-cash charges | 158 |
Impairment charges | 99 |
Contract termination costs | 26 |
Pre-acquisition litigation charges | $ 18 |