Cover
Cover - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 03, 2024 | Jun. 30, 2023 | |
Entity Listings [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 201,176,616 | ||
Entity Common Stock, Shares Outstanding | 381,312,268 | ||
Documents Incorporated by Reference [Text Block] | Sections of Thermo Fisher’s definitive Proxy Statement for the 2024 Annual Meeting of Shareholders (the “Proxy Statement”) are incorporated by reference into Part III of this report. | ||
Entity Central Index Key | 0000097745 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Common Stock, $1.00 par value | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Common Stock, $1.00 par value | ||
Entity Stock 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 | ||
Entity Stock 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 | ||
Entity Stock 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 | ||
Entity Stock 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 | ||
Entity Stock 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 | ||
Entity Stock 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 | ||
Entity Stock 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 | ||
Entity Stock 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 | ||
Entity Stock 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 | ||
Entity Stock 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 | ||
Entity Stock 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 | ||
Entity Stock 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 | ||
Entity Stock 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 | ||
Entity Stock 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 | ||
Entity Stock 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 | ||
Entity Stock 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 | ||
Entity Stock Trading Symbol | TMO 49 | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Boston, Massachusetts |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 8,077 | $ 8,524 |
Accounts receivable, less allowances of $193 and $189 | 8,221 | 8,115 |
Inventories | 5,088 | 5,634 |
Contract assets, net | 1,443 | 1,312 |
Other current assets | 1,760 | 1,644 |
Total current assets | 24,589 | 25,229 |
Property, plant and equipment, net | 9,448 | 9,280 |
Acquisition-related intangible assets, net | 16,670 | 17,442 |
Other assets | 3,999 | 4,007 |
Goodwill | 44,020 | 41,196 |
Total assets | 98,726 | 97,154 |
Current liabilities: | ||
Short-term obligations and current maturities of long-term obligations | 3,609 | 5,579 |
Accounts payable | 2,872 | 3,381 |
Accrued payroll and employee benefits | 1,596 | 2,095 |
Contract liabilities | 2,689 | 2,601 |
Other accrued expenses | 3,246 | 3,354 |
Total current liabilities | 14,012 | 17,010 |
Deferred income taxes | 1,922 | 2,849 |
Other long-term liabilities | 4,642 | 4,238 |
Long-term obligations | 31,308 | 28,909 |
Commitments and Contingencies | ||
Redeemable noncontrolling interest | 118 | 116 |
Thermo Fisher Scientific Inc. shareholders’ equity: | ||
Preferred stock, $100 par value, 50,000 shares authorized; none issued | ||
Common stock, $1 par value, 1,200,000,000 shares authorized; 442,188,634 and 440,668,112 shares issued | 442 | 441 |
Capital in excess of par value | 17,286 | 16,743 |
Retained earnings | 47,364 | 41,910 |
Treasury stock at cost, 55,541,290 and 50,157,275 shares | (15,133) | (12,017) |
Accumulated other comprehensive income/(loss) | (3,224) | (3,099) |
Total Thermo Fisher Scientific Inc. shareholders’ equity | 46,735 | 43,978 |
Noncontrolling interests | (11) | 54 |
Total equity | 46,724 | 44,032 |
Total liabilities, redeemable noncontrolling interest and equity | $ 98,726 | $ 97,154 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable Allowances | $ 193 | $ 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, $1 Par Value - Shares Issued (in shares) | 442,188,634 | 440,668,112 |
Treasury Stock at Cost (in shares) | 55,541,290 | 50,157,275 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | |||
Revenues | $ 42,857 | $ 44,915 | $ 39,211 |
Costs and operating expenses: | |||
Selling, general and administrative expenses | 8,445 | 8,993 | 8,007 |
Research and development expenses | 1,337 | 1,471 | 1,406 |
Restructuring and other costs | 459 | 114 | 197 |
Total costs and operating expenses | 35,998 | 36,522 | 29,183 |
Operating income | 6,859 | 8,393 | 10,028 |
Interest income | 879 | 272 | 43 |
Interest expense | (1,375) | (726) | (536) |
Other income/(expense) | (65) | (104) | (694) |
Income before income taxes | 6,298 | 7,835 | 8,841 |
Provision for income taxes | (284) | (703) | (1,109) |
Equity in earnings/(losses) of unconsolidated entities | (59) | (172) | (4) |
Net income | 5,955 | 6,960 | 7,728 |
Less: net (losses) income attributable to noncontrolling interests and redeemable noncontrolling interest | (40) | 10 | 3 |
Net income attributable to Thermo Fisher Scientific Inc. | $ 5,995 | $ 6,950 | $ 7,725 |
Earnings per share attributable to Thermo Fisher Scientific Inc. | |||
Basic (in dollars per share) | $ 15.52 | $ 17.75 | $ 19.62 |
Diluted (in dollars per share) | $ 15.45 | $ 17.63 | $ 19.46 |
Weighted average shares | |||
Basic (in shares) | 386 | 392 | 394 |
Diluted (in shares) | 388 | 394 | 397 |
Product revenues | |||
Revenues | |||
Revenues | $ 25,243 | $ 28,548 | $ 30,361 |
Costs and operating expenses: | |||
Cost of revenues | 13,168 | 14,247 | 13,594 |
Service revenues | |||
Revenues | |||
Revenues | 17,614 | 16,367 | 8,850 |
Costs and operating expenses: | |||
Cost of revenues | $ 12,589 | $ 11,697 | $ 5,979 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Comprehensive income | |||
Net income | $ 5,955 | $ 6,960 | $ 7,728 |
Currency translation adjustment: | |||
Currency translation adjustment (net of tax provision (benefit) of $(134), $173 and $231) | (69) | (822) | 373 |
Unrealized gains and losses on hedging instruments: | |||
Reclassification adjustment for losses included in net income (net of tax benefit of $2, $1 and $17) | 5 | 2 | 56 |
Pension and other postretirement benefit liability adjustments: | |||
Pension and other postretirement benefit liability adjustments arising during the period (net of tax provision (benefit) of $(22), $9 and $11) | (69) | 38 | 36 |
Amortization of net loss and prior service benefit included in net periodic pension cost (net of tax benefit of $1, $3 and $6) | 0 | 5 | 13 |
Total other comprehensive income/(loss) | (133) | (777) | 478 |
Comprehensive income | 5,822 | 6,183 | 8,206 |
Less: comprehensive income/(loss) attributable to noncontrolling interests and redeemable noncontrolling interest | (48) | 3 | 2 |
Comprehensive income attributable to Thermo Fisher Scientific Inc. | $ 5,870 | $ 6,180 | $ 8,204 |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Tax provision (benefit) on currency translation adjustment | $ (134) | $ 173 | $ 231 |
Tax benefit on reclassification adjustment for losses on hedging instruments recognized in net income | 2 | 1 | 17 |
Tax provision (benefit) on pension and other postretirement benefit liability adjustments arising during the period | (22) | 9 | 11 |
Tax benefit on amortization of net loss and prior service benefit included in net periodic pension cost | $ 1 | $ 3 | $ 6 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities | |||
Net income | $ 5,955 | $ 6,960 | $ 7,728 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of property, plant and equipment | 1,068 | 986 | 831 |
Amortization of acquisition-related intangible assets | 2,338 | 2,395 | 1,761 |
Change in deferred income taxes | (1,300) | (995) | (647) |
Stock-based compensation | 278 | 307 | 230 |
Loss on early extinguishment of debt | 0 | 26 | 767 |
Other non-cash expenses | 604 | 524 | 190 |
Changes in assets and liabilities, excluding the effects of acquisitions: | |||
Accounts receivable | (43) | (430) | (204) |
Inventories | 598 | (825) | (1,065) |
Contract assets/liabilities | 252 | (354) | 221 |
Accounts payable | (500) | 648 | 479 |
Contributions to retirement plans | (42) | (41) | (34) |
Other | (802) | (47) | (945) |
Net cash provided by operating activities | 8,406 | 9,154 | 9,312 |
Investing activities | |||
Acquisitions, net of cash acquired | (3,660) | (39) | (19,395) |
Purchase of property, plant and equipment | (1,479) | (2,243) | (2,523) |
Proceeds from sale of property, plant and equipment | 87 | 24 | 20 |
Proceeds from cross-currency interest rate swap interest settlements | 70 | 15 | 8 |
Other investing activities, net | (160) | 84 | (42) |
Net cash used in investing activities | (5,142) | (2,159) | (21,932) |
Financing activities | |||
Net proceeds from issuance of debt | 5,942 | 3,193 | 18,137 |
Repayment of debt | (5,782) | (375) | (11,738) |
Proceeds from issuance of commercial paper | 1,620 | 1,526 | 2,512 |
Repayments of commercial paper | (1,935) | (3,690) | 0 |
Purchases of company common stock | (3,000) | (3,000) | (2,000) |
Dividends paid | (523) | (455) | (395) |
Other financing activities, net | 56 | (9) | 65 |
Net cash (used in) provided by financing activities | (3,622) | (2,810) | 6,581 |
Exchange rate effect on cash | (82) | (139) | 194 |
(Decrease) increase in cash, cash equivalents and restricted cash | (440) | 4,046 | (5,845) |
Cash, cash equivalents and restricted cash at beginning of year | 8,537 | 4,491 | 10,336 |
Cash, cash equivalents and restricted cash at end of year | $ 8,097 | $ 8,537 | $ 4,491 |
Consolidated Statement of Redee
Consolidated Statement of Redeemable Noncontrolling Interest and Equity - USD ($) $ in Millions | Total | Total Thermo Fisher Scientific Inc. Shareholders’ Equity | Common Stock, $1.00 par value | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Items | Noncontrolling Interests |
Redeemable noncontrolling interest, beginning balance at Dec. 31, 2020 | $ 0 | |||||||
Redeemable Noncontrolling Interest [Roll Forward] | ||||||||
Recognition upon acquisition | 122 | |||||||
Net income/(loss) | 1 | |||||||
Other comprehensive income/(loss) | (1) | |||||||
Redeemable noncontrolling interest, ending balance at Dec. 31, 2021 | 122 | |||||||
Balance (in shares) at Dec. 31, 2020 | 437,000,000 | |||||||
Balance at Dec. 31, 2020 | 34,517 | $ 34,507 | $ 437 | $ 15,579 | $ 28,116 | $ (6,818) | $ (2,807) | $ 10 |
Balance, treasury stock (in shares) at Dec. 31, 2020 | 40,000,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under employees' and directors' stock plans (in shares) | 2,000,000 | 1,000,000 | ||||||
Issuance of shares under stock plans | 222 | 222 | $ 2 | 324 | $ (104) | |||
Stock-based compensation | 230 | 230 | 230 | |||||
Purchases of company common stock (in shares) | 4,000,000 | |||||||
Purchases of company common stock | (2,000) | (2,000) | $ (2,000) | |||||
Dividends declared | (410) | (410) | (410) | |||||
Net income/(loss) | 7,727 | 7,725 | 7,725 | 2 | ||||
Total other comprehensive income/(loss) | 478 | 478 | 478 | |||||
Contributions from (distributions to) noncontrolling interests | 50 | 50 | ||||||
Excise tax from stock repurchases | 0 | |||||||
Other | 41 | 41 | 41 | |||||
Balance (in shares) at Dec. 31, 2021 | 439,000,000 | |||||||
Balance at Dec. 31, 2021 | 40,855 | 40,793 | $ 439 | 16,174 | 35,431 | $ (8,922) | (2,329) | 62 |
Balance, treasury stock (in shares) at Dec. 31, 2021 | 45,000,000 | |||||||
Redeemable Noncontrolling Interest [Roll Forward] | ||||||||
Net income/(loss) | 15 | |||||||
Other comprehensive income/(loss) | (6) | |||||||
Contributions from (distributions to) noncontrolling interests | (15) | |||||||
Redeemable noncontrolling interest, ending balance at Dec. 31, 2022 | 116 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under employees' and directors' stock plans (in shares) | 2,000,000 | |||||||
Issuance of shares under stock plans | 169 | 169 | $ 2 | 262 | $ (95) | |||
Stock-based compensation | 307 | 307 | 307 | |||||
Purchases of company common stock (in shares) | 5,000,000 | |||||||
Purchases of company common stock | (3,000) | (3,000) | $ (3,000) | |||||
Dividends declared | (471) | (471) | (471) | |||||
Net income/(loss) | 6,945 | 6,950 | 6,950 | (5) | ||||
Total other comprehensive income/(loss) | (771) | (770) | (770) | (1) | ||||
Contributions from (distributions to) noncontrolling interests | (2) | (2) | ||||||
Excise tax from stock repurchases | 0 | |||||||
Balance (in shares) at Dec. 31, 2022 | 441,000,000 | |||||||
Balance at Dec. 31, 2022 | $ 44,032 | 43,978 | $ 441 | 16,743 | 41,910 | $ (12,017) | (3,099) | 54 |
Balance, treasury stock (in shares) at Dec. 31, 2022 | 50,157,275 | 50,000,000 | ||||||
Redeemable Noncontrolling Interest [Roll Forward] | ||||||||
Net income/(loss) | $ 19 | |||||||
Other comprehensive income/(loss) | (3) | |||||||
Contributions from (distributions to) noncontrolling interests | (14) | |||||||
Redeemable noncontrolling interest, ending balance at Dec. 31, 2023 | 118 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under employees' and directors' stock plans (in shares) | 1,000,000 | 1,000,000 | ||||||
Issuance of shares under stock plans | 178 | 178 | $ 1 | 265 | $ (88) | |||
Stock-based compensation | 278 | 278 | 278 | |||||
Purchases of company common stock (in shares) | 5,000,000 | |||||||
Purchases of company common stock | (3,000) | (3,000) | $ (3,000) | |||||
Dividends declared | (541) | (541) | (541) | |||||
Net income/(loss) | 5,936 | 5,995 | 5,995 | (59) | ||||
Total other comprehensive income/(loss) | (130) | (125) | (125) | (5) | ||||
Contributions from (distributions to) noncontrolling interests | (1) | (1) | ||||||
Excise tax from stock repurchases | (28) | (28) | (28) | |||||
Balance (in shares) at Dec. 31, 2023 | 442,000,000 | |||||||
Balance at Dec. 31, 2023 | $ 46,724 | $ 46,735 | $ 442 | $ 17,286 | $ 47,364 | $ (15,133) | $ (3,224) | $ (11) |
Balance, treasury stock (in shares) at Dec. 31, 2023 | 55,541,290 | 56,000,000 |
Consolidated Statement of Red_2
Consolidated Statement of Redeemable Noncontrolling Interest and Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared per common share (in dollars per share) | $ 1.40 | $ 1.20 | $ 1.04 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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. Principles of Consolidation The accompanying financial statements include the accounts of the company and its wholly and majority-owned subsidiaries. All material intercompany accounts and transactions have been eliminated. The company accounts for investments in businesses using the equity method when it has the ability to exercise significant influence but not control (generally between 20% and 50% ownership), is not the primary beneficiary and has not elected the fair value option. At December 31, 2023 and 2022, the company had such investments with carrying amounts of $489 million and $369 million, respectively. The company has elected the fair value option of accounting for certain of its investments with readily determinable fair values that would otherwise be accounted for under the equity method. At December 31, 2023 and 2022, the fair value of such investments was $5 million and $7 million, respectively. Redeemable Noncontrolling Interest The company owns 60% of its consolidated subsidiary PPD-SNBL K.K. The 40% ownership interest held by a third party is classified as a redeemable noncontrolling interest on the consolidated balance sheet due to certain put options under which the third party may require the company to purchase the remaining ownership interest at a premium upon the occurrence of certain events. Presentation Certain reclassifications of prior year amounts have been made to conform to the current year presentation. Revenue Recognition Consumables revenues consist of single-use products and are recognized at a point in time following the transfer of control of such products to the customer, which generally occurs upon shipment. Instruments revenues typically consist of longer-lived assets that, for the substantial majority of sales, are recognized at a point in time in a manner similar to consumables. Service revenues (primarily clinical research, pharmaceutical, and instrument and enterprise services) are recognized over time as customers receive and consume the benefits of such services. For revenues recognized over time, the company generally uses costs accumulated relative to total estimated costs to measure progress as this method approximates satisfaction of the performance obligation. For contracts that contain multiple performance obligations, the company allocates the consideration to which it expects to be entitled (i.e., the transaction price) to each performance obligation based on relative standalone selling prices and recognizes the related revenues when or as control of each individual performance obligation is transferred to customers. The company exercises judgment in determining the timing of revenue by analyzing the point in time or the period over which the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the asset. The company immediately expenses contract costs that would otherwise be capitalized and amortized over a period of less than one year. Changes to the scope of services contracts generally also include changes in the transaction price. Typically, these contract modifications are not distinct from existing services provided under the contract, and result in cumulative adjustments to revenue on the modification date. However, some modifications are distinct from existing services provided under the contract and recognized prospectively. Payments from customers for most instruments and consumables are typically due in a fixed number of days after shipment or delivery of the product. Service arrangements commonly call for payments in advance of performing the work (e.g., extended service contracts), upon completion of the service (e.g., pharmaceutical services) or a mix of both. Some arrangements include variable amounts of consideration that arise from discounts, rebates, and other programs and practices. In such arrangements, the company estimates the amount by which to reduce the stated contract amount to reflect the transaction price. The company records reimbursement for third-party pass-through and out-of-pocket costs as revenues and the related expenses as costs of revenues. Contract-related Balances Accounts receivable include unconditional rights to consideration from customers, which generally represent billings that do not bear interest. The company maintains allowances for doubtful accounts for estimates of expected losses resulting from the inability of its customers to pay amounts due. The allowance for doubtful accounts is the company’s best estimate of the amount of probable credit losses in existing accounts receivable. The company determines the allowance based on history of similarly aged receivables, the creditworthiness of the customer, reasons for delinquency, current economic conditions, expectations associated with future events and circumstances where reasonable and supportable forecasts are available and any other information that is relevant to the judgment. Receivables from academic and government customers as well as large, well-capitalized commercial customers have historically experienced less collectability risk. Account balances are charged off against the allowance when the company believes it is probable the receivable will not be recovered. The company does not have any off-balance-sheet credit exposure related to customers. Contract assets include revenues recognized in advance of billings where the company’s right to bill includes something other than the passage of time. Such amounts are recorded net of estimated losses resulting from the inability to invoice customers, which is primarily due to risk associated with the company’s performance. Contract assets are classified as current or noncurrent based on the amount of time expected to lapse until the company's right to consideration becomes unconditional. Contract liabilities include billings in excess of revenues recognized, such as those resulting from customer advances and deposits and unearned revenues on service contracts. Contract liabilities are classified as current or noncurrent based on the periods over which remaining performance obligations are expected to be transferred to customers. Contract assets and liabilities are presented on a net basis in the consolidated balance sheet if they arise from different performance obligations in the same contract. Warranty Obligations The company provides for the estimated cost of standard product warranties, primarily from historical information, in cost of product revenues at the time product revenues are recognized. The liability for warranties is included in other accrued expenses in the accompanying balance sheet. Extended warranty agreements are considered service contracts, which are discussed above. Costs of service contracts are recognized as incurred. Leases Operating leases that have commenced are included in other assets, other accrued expenses and other long-term liabilities in the consolidated balance sheet. Finance leases that have commenced are included in property, plant and equipment, net, current maturities of long-term obligations and long-term obligations in the consolidated balance sheet. Classification of lease liabilities as either current or noncurrent is based on the expected timing of payments due under the company’s obligations. Right-of-use (ROU) assets represent the company’s right to use an underlying asset for the lease term and lease liabilities represent the company’s obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. The company recognizes operating lease expense on a straight-line basis over the lease term. Finance lease expense includes depreciation, which is recognized on a straight-line basis over the expected life of the leased asset, and an immaterial amount of interest expense. Because most of the company’s leases do not provide an implicit interest rate, the company estimates incremental borrowing rates based on the information available at the commencement date in determining the present value of lease payments. The company uses the implicit rate when readily determinable. Lease terms include the effect of options to extend or terminate the lease when it is reasonably certain that the company will exercise that option. As a lessee, the company accounts for the lease and non-lease components as a single lease component. Research and Development The company conducts research and development activities to increase its depth of capabilities in technologies, software and services. Research and development costs include employee compensation and benefits, consultants, facilities related costs, material costs, depreciation and travel. Research and development costs are expensed as incurred. Restructuring Costs Accounting for the timing and amount of termination benefits provided by the company to employees is determined based on whether: (a) the company has a substantive plan to provide such benefits, (b) the company has a written employment contract with the affected employees that includes a provision for such benefits, (c) the termination benefits are due to the occurrence of an event specified in an existing plan or agreement, or (d) the termination benefits are a one-time benefit. In certain circumstances, employee termination benefits may meet more than one of the characteristics listed above and therefore, may have individual elements that are subject to different accounting models. From time to time when executing a restructuring or exit plan, the company also incurs costs other than termination benefits, such as lease termination costs, that are not associated with or will not be incurred to provide economic benefits to the company. These include costs that represent amounts under contractual obligations that exist prior to the restructuring plan communication date and will either continue after the restructuring plan is completed with no economic benefit or result in a penalty to cancel a contractual obligation. Such costs are recognized when incurred, which generally occurs at the contract termination or over the period from when a plan to abandon a leased facility is approved through the cease-use date but charges may continue over the remainder of the original contractual period. Income Taxes The company recognizes deferred income taxes based on the expected future tax consequences of differences between the financial statement basis and the tax basis of assets and liabilities, calculated using enacted tax rates in effect for the year in which the differences are expected to be reflected in the tax return. A valuation allowance is provided for tax assets that will more likely than not go unused. The financial statements reflect expected future tax consequences of uncertain tax positions that the company has taken or expects to take on a tax return presuming the taxing authorities’ full knowledge of the positions and all relevant facts, but without discounting for the time value of money. Earnings per Share Basic earnings per share has been computed by dividing net income attributable to Thermo Fisher Scientific Inc. by the weighted average number of shares outstanding during the year. Except where the result would be antidilutive to net income attributable to Thermo Fisher Scientific Inc., diluted earnings per share has been computed using the treasury stock method for outstanding stock options and restricted units. Cash and Cash Equivalents Cash equivalents consists principally of money market funds, commercial paper and other marketable securities purchased with an original maturity of three months or less. These investments are carried at cost, which approximates market value. Inventories Inventories are valued at the lower of cost or net realizable value, cost being determined by the first-in, first-out (FIFO) method. As discussed below, prior to the third quarter of 2021 certain of the company's businesses utilized the last-in, first-out (LIFO) method. The company periodically reviews quantities of inventories on hand and compares these amounts to the expected use of each product or product line. In addition, the company has certain inventory that is subject to fluctuating market pricing. The company records a charge to cost of sales for the amount required to reduce the carrying value of inventory to net realizable value. Costs associated with the procurement of inventories, such as inbound freight charges, purchasing and receiving costs, and internal transfer costs, are included in cost of revenues in the accompanying statement of income. The components of inventories are as follows: December 31, December 31, (In millions) 2023 2022 Raw materials $ 2,057 $ 2,405 Work in process 705 660 Finished goods 2,326 2,569 Inventories $ 5,088 $ 5,634 Prior to the third quarter of 2021, certain of the company’s businesses utilized the LIFO method of accounting for inventories. During the third quarter of 2021, these businesses, which comprised approximately 5% of consolidated inventories, changed from the LIFO method to the FIFO method. The company believes this change is preferable as it will provide a consistent, uniform costing method for all inventories across the company, better reflect the current value of inventories, and improve comparability with peers. Prior financial statements have not been retrospectively adjusted due to immateriality. The cumulative pre-tax effect of this change in accounting principle of $33 million was recorded as an increase to inventories and a decrease to cost of product revenues in the third quarter of 2021. This change was recorded in the Laboratory Products and Biopharma Services ($20 million) and Specialty Diagnostics ($13 million) segments. Reductions to cost of revenues as a result of the liquidation of LIFO inventories were nominal during the first half of 2021. Property, Plant and Equipment Property, plant and equipment are recorded at cost. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. The company generally provides for depreciation and amortization using the straight-line method over the estimated useful lives of the property as follows: buildings and improvements, 25 to 40 years; machinery and equipment (including software), 3 to 10 years; and leasehold improvements, the shorter of the term of the lease or the life of the asset. When assets are retired or otherwise disposed of, the assets and related accumulated depreciation are eliminated from the accounts and the resulting gain or loss is reflected in the accompanying statement of income. Property, plant and equipment consists of the following: December 31, December 31, (In millions) 2023 2022 Land $ 458 $ 454 Buildings and improvements 3,593 3,153 Machinery, equipment and leasehold improvements 9,235 7,967 Construction in progress 2,238 2,695 Property, plant and equipment, at cost 15,524 14,269 Less: Accumulated depreciation and amortization 6,076 4,989 Property, plant and equipment, net $ 9,448 $ 9,280 Acquisition-related Intangible Assets Acquisition-related intangible assets include the costs of acquired customer relationships, product technology, tradenames, backlog and other specifically identifiable intangible assets, and are being amortized using the straight-line method over their estimated useful lives, which range up to 20 years. The company reviews these intangible assets for impairment when indication of potential impairment exists, such as a significant reduction in cash flows associated with the assets. When impairment indicators exist, the company determines whether the carrying value of its intangible assets exceeds the related undiscounted cash flows. In these situations, the carrying value is written down to fair value. In addition, the company has tradenames that have indefinite lives and which are not amortized. Intangible assets with indefinite lives are reviewed for impairment annually or whenever events or changes in circumstances indicate they may be impaired. The company may perform an optional qualitative assessment. If the company determines that the fair value of the indefinite-lived intangible asset is more likely than not greater than its carrying amount, no additional testing is necessary. If not, or if the company bypasses the optional qualitative assessment, it writes the carrying value down to the fair value, if applicable. Acquisition-related intangible assets are as follows: Balance at December 31, 2023 Balance at December 31, 2022 (In millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Definite lived: Customer relationships $ 22,762 $ (9,410) $ 13,352 $ 21,792 $ (8,330) $ 13,462 Product technology 5,894 (4,591) 1,303 5,882 (4,360) 1,522 Tradenames 1,634 (1,079) 555 1,635 (1,008) 627 Backlog 1,084 (859) 225 1,038 (442) 596 31,374 (15,939) 15,435 30,347 (14,140) 16,207 Indefinite lived: Tradenames 1,235 N/A 1,235 1,235 N/A 1,235 Acquisition-related intangible assets $ 32,609 $ (15,939) $ 16,670 $ 31,582 $ (14,140) $ 17,442 The estimated future amortization expense of acquisition-related intangible assets with definite lives as of December 31, 2023 is as follows: (In millions) 2024 $ 1,931 2025 1,630 2026 1,460 2027 1,430 2028 1,398 2029 and thereafter 7,586 Estimated future amortization expense of definite-lived intangible assets $ 15,435 Other Assets Other assets in the accompanying balance sheet include operating lease right-of-use assets, investments, deferred tax assets, pension assets, insurance recovery receivables related to product liability matters, certain intangible assets and other assets. At December 31, 2023 and 2022, the company had $37 million and $36 million, respectively, of intangible assets not derived from acquisitions, net of accumulated amortization, which are being amortized using the straight-line method over their estimated useful lives, which range up to 20 years. Equity investments that do not have readily determinable fair values and are not eligible for the net asset value (NAV) practical expedient are measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer. The company performs qualitative assessments to identify impairments of these investments. At December 31, 2023 and 2022, the company had such investments with carrying amounts of $12 million and $55 million, respectively, and investments measured at NAV of $28 million and $22 million, respectively, which are included in other assets. Goodwill The company assesses goodwill for impairment at the reporting unit level annually and whenever events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Such events or circumstances generally include the occurrence of operating losses or a significant decline in earnings associated with one or more of the company’s reporting units. The company is permitted to first assess qualitative factors to determine whether the quantitative goodwill impairment test is necessary. If the qualitative assessment results in a determination that the fair value of a reporting unit is more likely than not less than its carrying amount, the company performs a quantitative goodwill impairment test. The company may bypass the qualitative assessment for the reporting unit in any period and proceed directly to the goodwill impairment test. The company estimates the fair value of its reporting units by using forecasts of discounted future cash flows and peer market multiples. The company would record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (limited to the amount of goodwill). The company determined that no impairments existed in 2023, 2022 or 2021. The changes in the carrying amount of goodwill by segment are as follows: (In millions) Life Sciences Analytical Specialty Laboratory Total Balance at December 31, 2021 $ 10,143 $ 5,043 $ 3,277 $ 23,461 $ 41,924 Acquisitions — 24 — — 24 Finalization of purchase price allocations for 2021 acquisitions 9 — — 168 177 Currency translation (6) (102) (186) (635) (929) Balance at December 31, 2022 10,146 4,965 3,091 22,994 41,196 Acquisitions — 31 1,741 627 2,399 Currency translation 5 55 91 274 425 Balance at December 31, 2023 $ 10,151 $ 5,051 $ 4,923 $ 23,895 $ 44,020 Loss Contingencies Accruals are recorded for various contingencies, including legal proceedings, environmental, workers’ compensation, product, general and auto liabilities, self-insurance and other claims that arise in the normal course of business. The accruals are based on management’s judgment, historical claims experience, the probability of losses and, where applicable, the consideration of opinions of internal and/or external legal counsel and actuarial estimates. Additionally, the company records receivables from third-party insurers up to the amount of the loss when recovery has been determined to be probable. Certain liabilities acquired in acquisitions have been recorded at readily determinable fair values and, as such, were discounted to present value at the dates of acquisition. Currency Translation All assets and liabilities of the company’s subsidiaries operating in non-U.S. dollar currencies are translated at period-end exchange rates. Resulting translation adjustments are reflected in the “accumulated other comprehensive items” component of shareholders’ equity. Revenues and expenses are translated at average exchange rates for the period. Currency transaction gains/(losses) are included in the accompanying statement of income and in aggregate were $(67) million, $62 million and $25 million in 2023, 2022 and 2021, respectively. Derivative Contracts The company is exposed to certain risks relating to its ongoing business operations including changes to interest rates and currency exchange rates. The company uses derivative instruments primarily to manage currency exchange and interest rate risks. The company recognizes derivative instruments as either assets or liabilities and measures those instruments at fair value. If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative are either offset against the change in fair value of the hedged item through earnings or recognized in other comprehensive items until the hedged item is recognized in earnings. Derivatives that are not designated as hedges are recorded at fair value through earnings. The company uses short-term forward and option currency exchange contracts primarily to hedge certain balance sheet and operational exposures resulting from changes in currency exchange rates, predominantly intercompany loans and cash balances that are denominated in currencies other than the functional currencies of the respective operations. The currency-exchange contracts principally hedge transactions denominated in euro, British pounds sterling, Canadian dollars, Singapore dollars, Czech koruna, Hong Kong dollars and Swedish krona. The company does not hold or engage in transactions involving derivative instruments for purposes other than risk management. Cash flow hedges . For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative is reported as a component of other comprehensive items and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. Fair value hedges. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in earnings. Net investment hedges. 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. Government Assistance From time to time, the company receives assistance from various governmental agencies generally in the form of cash or non-income tax credits. These programs help offset the costs of certain research and development activities, facility construction and expansion efforts, or hiring objectives. When the company believes that it is probable that it will meet the conditions tied to the assistance, it offsets the associated expense in the consolidated income statement. Such amounts were not material to the consolidated financial statements as of and for the years ended December 31, 2023 and 2022. 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 The following table provides a description of recent accounting pronouncements adopted and those standards not yet adopted with potential for a material impact on the company's financial statements or disclosures. Standard Description Effective date for Thermo Fisher and adoption approach Impact of adoption or other significant matters Standards recently adopted Accounting Standards Update (ASU) No. 2021-05, Leases (Topic 842): Lessors-Certain Leases with Variable Lease Payments Amended guidance to require lessors to classify leases as operating leases if they have certain variable lease payment structures and would have selling losses if they were classified as sales-type or direct financing leases. Third quarter of 2021 using a prospective method Not material ASU No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance New guidance 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. Fourth quarter of 2022 using a prospective method Not material ASU No. 2022-04, Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations New guidance 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 supplier finance programs for each period presented. Some aspects adopted in 2023 using a retrospective method and will adopt other aspects in 2024 using a prospective method Not material Standards not yet adopted ASU No. 2023-07, Segment Reporting (Topic 280): Improving Reportable Segment Disclosures Among other things, new guidance to disclose significant segment expenses and other items by reportable segment as well as information about the chief operating decision maker. 2024 annual report and interim periods thereafter using a retrospective method Will increase disclosures in Note 4 ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures Among other things, new guidance to disclose additional information about the tax rate reconciliation and income taxes paid. 2025 annual report and interim periods thereafter using a prospective or retrospective method Will increase disclosures in Note 8 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 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. Acquisition transaction costs are recorded in selling, general and administrative expenses as incurred. 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. On August 14, 2023, the company acquired, within the Laboratory Products and Biopharma Services segment, CorEvitas, LLC, a U.S.-based provider of regulatory-grade, real-world evidence for approved medical treatments and therapies. The acquisition expands the segment’s portfolio with the addition of highly complementary real-world evidence solutions to enhance decision-making as well as the time and cost of drug development. 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 CorEvitas Purchase price Cash paid $ 2,412 $ 730 Debt settled 307 184 Cash acquired (20) (4) $ 2,699 $ 910 Net assets acquired Definite-lived intangible assets Customer relationships $ 868 $ 260 Product technology 162 47 Tradenames 42 — Backlog — 46 Goodwill 1,741 627 Net tangible assets 174 (2) Deferred tax assets (liabilities) (288) (68) $ 2,699 $ 910 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 periods for definite-lived intangible assets acquired in 2023 are 18 years for customer relationships, 14 years for product technology, 15 years for tradenames, and 13 years for backlog. The weighted-average amortization period for definite-lived intangible assets acquired in 2023 is 17 years. Proposed Acquisition On October 17, 2023, the company entered into a purchase agreement to acquire all of the issued and outstanding shares of Olink Holding AB (publ) at a price of $26.00 per share, or approximately $3.1 billion. Olink is a leading provider of next-generation proteomics solutions that will expand the company’s capabilities in this field. The company has commenced a tender offer to acquire all of the American Depositary Shares and common shares of Olink. The transaction is expected to close by mid-year 2024, subject to the satisfaction of customary closing conditions including receipt of applicable regulatory approvals, and completion of the tender offer. Upon completion, Olink will become part of the Life Sciences Solutions segment. The company intends to finance the purchase price with cash on hand and the net proceeds from issuances of debt. 2022 In 2022, the company acquired, within the Analytical Instruments segment, a U.S.-based developer of Fourier-transform infrared gas analysis technologies. 2021 On January 15, 2021, the company acquired, within the Laboratory Products and Biopharma Services segment, the Belgium-based European viral vector manufacturing business of Groupe Novasep SAS. The European viral vector manufacturing business provides manufacturing services for vaccines and therapies to biotechnology companies and large biopharma customers. The acquisition expands the segment’s capabilities for cell and gene vaccines and therapies. The goodwill recorded as a result of this business combination is not tax deductible. On February 25, 2021, the company acquired, within the Life Sciences Solutions segment, Mesa Biotech, Inc., a U.S.-based molecular diagnostic company. Mesa Biotech has developed and commercialized a polymerase chain reaction (PCR) based rapid point-of-care testing platform available for detecting infectious diseases including COVID-19. The acquisition enables the company to accelerate the availability of reliable and accurate advanced molecular diagnostics at the point of care. The goodwill recorded as a result of this business combination is not tax deductible. On September 30, 2021, the company assumed operating responsibility, within the Laboratory Products and Biopharma Services segment, of a new state-of-the-art biologics manufacturing facility in Lengnau, Switzerland from CSL Limited to perform pharma services for CSL with capacity to serve other customers as well. The goodwill recorded as a result of this business combination is not tax deductible. On December 8, 2021, the company acquired, within the Laboratory Products and Biopharma Services segment, PPD, Inc., a U.S.-based global provider of clinical research services to the pharma and biotech industry. The addition of PPD’s clinical research services enhances our offering to biotech and pharma customers by enabling them to accelerate innovation and increase their productivity within the drug development process. The goodwill recorded as a result of this business combination is not tax deductible. On December 30, 2021, the company acquired, within the Life Sciences Solutions segment, PeproTech, Inc., a U.S.-based developer and manufacturer of recombinant proteins. PeproTech provides bioscience reagents known as recombinant proteins, including cytokines and growth factors. The acquisition expands the segment’s bioscience offerings. The goodwill recorded as a result of this business combination is not tax deductible. In addition, in 2021, the company acquired, within the Life Sciences Solutions segment, cell sorting technology assets, an Ireland-based life sciences distributor and a developer of a digital PCR platform; within the Analytical Instruments segment, a Belgium-based developer of micro-chip based technology for liquid chromatography columns; and within the Specialty Diagnostics segment, a transplant diagnostics information system provider. The components of the purchase price and net assets acquired for 2021 acquisitions are as follows: (In millions) PPD PeproTech European Viral Vector Business Mesa Biotech Lengnau biologics manufacturing facility Other Purchase price Cash paid $ 17,237 $ 1,946 $ 848 $ 421 $ 17 $ 298 Fair value of equity awards exchanged 43 — — — — — Fair value of contingent consideration — — — 65 1 117 Cash acquired (1,244) (83) (18) (14) — (12) $ 16,036 $ 1,863 $ 830 $ 472 $ 18 $ 403 Net assets acquired Current assets $ 2,477 $ 58 $ 39 $ 54 $ — $ 12 Property, plant and equipment 527 18 59 2 93 2 Definite-lived intangible assets: Customer relationships 6,257 510 302 — — 2 Product technology — 282 25 279 — 224 Tradenames 594 — — 2 — 2 Backlog 1,038 — — — — — Goodwill 13,949 1,198 600 237 18 198 Other assets 1,060 11 3 3 364 2 Contract liabilities (1,539) — (59) — — (1) Deferred tax assets (liabilities) (1,782) (192) (80) (72) — (27) Finance lease liabilities (90) — (24) — (82) — Debt assumed (4,299) — — — — — Other liabilities assumed (2,034) (22) (35) (33) (375) (11) Redeemable noncontrolling interest (122) — — — — — $ 16,036 $ 1,863 $ 830 $ 472 $ 18 $ 403 During 2022, we finalized the allocations of the purchase price for the Lengnau biologics manufacturing facility, PPD, Inc. and PeproTech, Inc., largely with respect to definite-lived intangible assets, property, plant and equipment, contract liabilities, equity method investments, asset retirement obligations, defined benefit pension plans, assumed contingent consideration and the related deferred taxes. The adjustments to the income statement recorded during 2022 were not material. The weighted-average amortization periods for definite-lived intangible assets acquired in 2021 are 17 years for customer relationships, 11 years for product technology, 7 years for tradenames and 3 years for backlog. The weighted average amortization period for all definite-lived intangible assets acquired in 2021 is 14 years. Unaudited Pro Forma Information The following unaudited pro forma information provides the effect of the company's 2021 acquisition of PPD as if the acquisition had occurred on January 1, 2020: Year Ended December 31, (In millions) 2021 Revenues $ 44,886 Net income attributable to Thermo Fisher Scientific Inc. $ 7,369 The historical consolidated financial information of the company and PPD has been adjusted in the pro forma information to give effect to pro forma events that are directly attributable to the acquisitions and related financing arrangements and are factually supportable. To reflect the acquisition of PPD as if it had occurred on January 1, 2020, the unaudited pro forma results include adjustments to reflect, among other things, the incremental intangible asset amortization to be incurred based on the values of each identifiable intangible asset and the interest expense from debt financings obtained to partially fund the cash consideration transferred. Pro forma adjustments were tax effected at the company's historical statutory rates in effect for the respective periods. The unaudited pro forma amounts are not necessarily indicative of the combined results of operations that would have been realized had the acquisitions and related financings occurred on the aforementioned dates nor are they meant to be indicative of any anticipated combined results of operations that the company will experience after the transaction. In addition, the amounts do not include any adjustments for actions that may be taken following the completion of the transaction, such as expected cost savings, operating synergies, or revenue enhancements that may be realized subsequent to the transaction. Pro forma net income attributable to Thermo Fisher Scientific Inc. for the year ended December 31, 2021, excludes $312 million of transaction costs, initial restructuring costs, and debt extinguishment costs directly attributable to the PPD acquisition that were included in the determination of net income attributable to Thermo Fisher Scientific Inc. for that period. The company’s results would not have been materially different from its pro forma results had the company’s other 2021 acquisitions occurred at the beginning of 2020. PPD’s revenues and losses attributable to Thermo Fisher Scientific Inc. in 2021, subsequent to the acquisition date, were $378 million and $(60) million, respectively. The loss includes non-recurring transaction and compensation costs. |
Revenue and Contract-related Ba
Revenue and Contract-related Balances | 12 Months Ended |
Dec. 31, 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: (In millions) 2023 2022 2021 Revenues Consumables $ 17,597 $ 20,624 $ 22,608 Instruments 7,646 7,924 7,753 Services 17,614 16,367 8,850 Consolidated revenues $ 42,857 $ 44,915 $ 39,211 Revenues by geographic region based on customer location are as follows: (In millions) 2023 2022 2021 Revenues North America $ 22,764 $ 24,594 $ 19,659 Europe 10,741 10,762 11,134 Asia-Pacific 7,873 8,115 7,218 Other regions 1,479 1,444 1,200 Consolidated revenues $ 42,857 $ 44,915 $ 39,211 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 December 31, 2023 was $26.92 billion. The company will recognize revenues for these performance obligations as they are satisfied, approximately 53% 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 to five years. 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: December 31, December 31, (In millions) 2023 2022 Current contract assets, net $ 1,443 $ 1,312 Noncurrent contract assets, net 4 7 Current contract liabilities 2,689 2,601 Noncurrent contract liabilities 1,499 1,179 Substantially all of the current contract liabilities balance at December 31, 2022 and 2021 was recognized in revenues during 2023 and 2022, respectively. Noncurrent contract liabilities increased during 2023 primarily due to advanced payments from a customer. |
Business Segment and Geographic
Business Segment and Geographical Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segment and Geographical Information | Business Segment and Geographical Information The company’s financial performance is reported in four segments. A description of each segment follows. Life Sciences Solutions: provides an extensive portfolio of reagents, instruments and consumables used in biological and medical research, discovery and production of new drugs and vaccines as well as diagnosis of infection and disease. These products and services are used by customers in pharmaceutical, biotechnology, agricultural, clinical, healthcare, academic, and government markets. Analytical Instruments: provides a broad offering of instruments and the supporting consumables, software and services that are used for a range of applications in the laboratory and in the field. These products and services are used by customers in pharmaceutical, biotechnology, academic, government, environmental and other research and industrial markets, as well as the clinical laboratory. Specialty Diagnostics: offers a wide range of diagnostic test kits, reagents, culture media, instruments and associated products to serve customers in healthcare, clinical, pharmaceutical, industrial, and food safety laboratories. Our healthcare products are used to increase the speed and accuracy of diagnoses, which improves patient care in a more cost-efficient manner. Laboratory Products and Biopharma Services: offers virtually everything needed for the laboratory. Our unique combination of self-manufactured and sourced products and extensive service offering enables our customers to focus on their core activities and helps them to be more innovative, productive and cost-efficient. The segment also includes a comprehensive offering of outsourced services used by the pharmaceutical and biotech industries for drug development, clinical research, clinical trials services and commercial drug manufacturing. The company’s management evaluates segment operating performance based on operating income before certain charges/credits to cost of revenues and selling, general and administrative expenses, principally associated with acquisition accounting; restructuring and other costs/income including costs arising from facility consolidations such as severance and abandoned lease expense and gains and losses from the sale of real estate and product lines as well as from significant litigation-related matters; and amortization of acquisition-related intangible assets. The company uses this measure because it helps management understand and evaluate the segments’ core operating results and facilitates comparison of performance for determining compensation. Business Segment Information (In millions) 2023 2022 2021 Revenues Life Sciences Solutions $ 9,977 $ 13,532 $ 15,631 Analytical Instruments 7,263 6,624 6,069 Specialty Diagnostics 4,405 4,763 5,659 Laboratory Products and Biopharma Services 23,041 22,511 14,862 Eliminations (1,829) (2,515) (3,010) Consolidated revenues 42,857 44,915 39,211 Segment Income Life Sciences Solutions 3,420 5,582 7,817 Analytical Instruments 1,908 1,507 1,197 Specialty Diagnostics 1,124 1,024 1,280 Laboratory Products and Biopharma Services 3,358 2,872 1,844 Subtotal reportable segments 9,810 10,985 12,138 Cost of revenues adjustments (95) (46) (8) Selling, general and administrative expenses adjustments (59) (37) (144) Restructuring and other costs (459) (114) (197) Amortization of acquisition-related intangible assets (2,338) (2,395) (1,761) Consolidated operating income 6,859 8,393 10,028 Interest income 879 272 43 Interest expense (1,375) (726) (536) Other income/(expense) (65) (104) (694) Consolidated income before taxes $ 6,298 $ 7,835 $ 8,841 Depreciation Life Sciences Solutions $ 220 $ 214 $ 197 Analytical Instruments 93 83 83 Specialty Diagnostics 86 75 128 Laboratory Products and Biopharma Services 669 614 423 Consolidated depreciation $ 1,068 $ 986 $ 831 Cost of revenues charges 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 abandonments of product lines, and accelerated depreciation on fixed assets to estimated salvage value in connection with the consolidation of operations. Selling, general and administrative charges/credits included in the above table consist of significant transaction/integration costs (including reimbursement thereof) related to recent/terminated acquisitions, charges/credits for changes in estimates of contingent acquisition consideration, and charges related to product liability litigation. (In millions) 2023 2022 2021 Total assets Life Sciences Solutions $ 20,191 $ 21,848 $ 22,751 Analytical Instruments 10,247 10,019 9,692 Specialty Diagnostics 8,636 5,542 6,010 Laboratory Products and Biopharma Services 51,091 51,281 52,639 Corporate/other (a) 8,561 8,464 4,031 Consolidated total assets $ 98,726 $ 97,154 $ 95,123 Capital expenditures Life Sciences Solutions $ 178 $ 490 $ 810 Analytical Instruments 87 140 79 Specialty Diagnostics 121 112 167 Laboratory Products and Biopharma Services 1,013 1,403 1,327 Corporate/other 80 98 140 Consolidated capital expenditures $ 1,479 $ 2,243 $ 2,523 (a) Corporate assets consist primarily of cash and cash equivalents and property and equipment at the company's corporate offices. Geographical Information (In millions) 2023 2022 2021 Revenues (b) United States $ 22,013 $ 23,820 $ 18,907 Other 20,844 21,095 20,304 Consolidated revenues $ 42,857 $ 44,915 $ 39,211 Long-lived Assets (c) United States $ 6,352 $ 6,308 $ 5,578 Other 4,652 4,565 4,286 Consolidated long-lived assets $ 11,004 $ 10,873 $ 9,864 (b) Revenues are attributed to countries based on customer location. (c) Includes property, plant and equipment, net, and operating lease ROU assets. |
Other Income_Expense
Other Income/Expense | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income/Expense | Other Income/(Expense) In all periods, other income/(expense) includes currency transaction gains/losses on non-operating monetary assets and liabilities and net periodic pension benefit cost/income, excluding the service cost component, which is included in operating expenses on the accompanying statements of income. In 2023, other income/(expense) includes $46 million of net losses on investments. In 2022, other income/(expense) includes $161 million of net losses on investments, $67 million of net gains on derivative instruments to address certain foreign currency risks, and $26 million of losses on the early extinguishment of debt (Note 10). In 2021, other income/(expense) includes $767 million of losses on the early extinguishment of debt (Note 10), $36 million of financing costs associated with obtaining bridge financing commitments in connection with the agreement to acquire PPD (Note 2), offset in part by $66 million of net gains on investments. The company had a cash outlay of $36 million in 2021 associated with obtaining the bridge financing commitments, included in other financing activities, net, in the accompanying statement of cash flows. |
Stock-based Compensation Expens
Stock-based Compensation Expense | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation Expense | Stock-based Compensation Expense The company has stock-based compensation plans for its key employees, directors and others. These plans permit the grant of a variety of stock and stock-based awards, including restricted stock units, stock options or performance-based shares, as determined by the compensation committee of the company’s Board of Directors or, for certain non-officer grants, by the company’s employee equity committee, which consists of its chief executive officer. The company generally issues new shares of its common stock to satisfy option exercises and restricted unit vesting. Grants of stock options and restricted units generally provide that in the event of both a change in control of the company and a qualifying termination of an option or unit holder’s employment, all options and service-based restricted unit awards held by the recipient become immediately vested (unless an employment or other agreement with the employee provides for different treatment). Compensation cost is based on the grant-date fair value and is recognized ratably over the requisite vesting period or to the date based on qualifying retirement eligibility, if earlier, and is primarily included in selling, general and administrative expenses. Stock Options The company’s practice is to grant stock options at fair market value. Options vest over 3-5 years with terms of 7-10 years, assuming continued employment with certain exceptions. Vesting of the option awards is contingent upon meeting certain service conditions. The fair value of most option grants is estimated using the Black-Scholes option pricing model. For option grants that require the achievement of both service and market conditions, a lattice model is used to estimate fair value. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. Expected volatility is calculated based on the historical volatility of the company’s stock. Historical data on exercise patterns is the basis for estimating the expected life of an option. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term which approximates the expected life assumed at the date of grant. The expected annual dividend rate is calculated by dividing the company’s annual dividend, based on the most recent quarterly dividend rate, by the closing stock price on the grant date. The compensation expense recognized for all stock-based awards is net of estimated forfeitures. Forfeitures are estimated based on an analysis of actual option forfeitures. The weighted average assumptions used in the Black-Scholes option pricing model are as follows: 2023 2022 2021 Expected stock price volatility 25 % 26 % 26 % Risk free interest rate 4.2 % 2.0 % 0.8 % Expected life of options (years) 4.7 4.7 4.3 Expected annual dividend 0.3 % 0.2 % 0.2 % The weighted average per share grant-date fair values of options granted during 2023, 2022 and 2021 were $159.32, $135.07 and $123.97, respectively. The total intrinsic value of options exercised during the same periods was $320 million, $336 million and $501 million, respectively. The intrinsic value is the difference between the market value of the shares on the exercise date and the exercise price of the option. A summary of the company’s option activity for the year ended December 31, 2023 is presented below: Shares Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic Outstanding at December 31, 2022 5.6 $ 359.27 Granted 0.7 546.94 Exercised (1.0) 218.82 Canceled/expired (0.3) 543.25 Outstanding at December 31, 2023 5.0 $ 401.30 3.9 $ 714 Vested and unvested expected to vest at December 31, 2023 4.8 $ 396.20 3.9 $ 712 Exercisable at December 31, 2023 2.8 $ 316.88 2.7 $ 635 As of December 31, 2023, there was $162 million of total unrecognized compensation cost related to unvested stock options granted. The cost is expected to be recognized through 2027 with a weighted average amortization period of 2.2 years. Restricted Share/Unit Awards Awards of restricted units convert into an equivalent number of shares of common stock. The awards generally vest over 3-4 years, assuming continued employment, with some exceptions. Vesting of the awards is contingent upon meeting certain service conditions and may also be contingent upon meeting certain performance and/or market conditions. The fair market value of the award at the time of the grant is amortized to expense over the requisite service period of the award, which is generally the vesting period. Recipients of restricted units have no voting rights but are entitled to accrue dividend equivalents. The fair value of service- and performance-based restricted unit awards is determined based on the number of units granted and the market value of the company’s shares on the grant date. For awards with market-based vesting conditions, the company uses a lattice model to estimate the grant-date fair value of the award. A summary of the company’s restricted unit activity for the year ended December 31, 2023 is presented below: Units Weighted Unvested at December 31, 2022 0.7 $ 495.39 Granted 0.4 545.73 Vested (0.4) 480.45 Forfeited (0.1) 528.59 Unvested at December 31, 2023 0.6 $ 533.65 The weighted average per share grant-date fair values of restricted units granted during 2022 and 2021 were $520.83 and $444.61, respectively. The total fair value of shares vested during 2023, 2022 and 2021 was $207 million, $163 million and $151 million, respectively. As of December 31, 2023, there was $179 million of total unrecognized compensation cost related to unvested restricted stock unit awards. The cost is expected to be recognized through 2027 with a weighted average amortization period of 1.9 years. Employee Stock Purchase Plans Qualifying employees are eligible to participate in an employee stock purchase plan sponsored by the company. Shares may be purchased under the program at 95% of the fair market value at the end of the purchase period and the shares purchased are not subject to a holding period. Shares are purchased through payroll deductions of up to 10% of each participating employee’s qualifying gross wages. The company issued 0.1 million, 0.2 million and 0.1 million shares, respectively, of its common stock in 2023, 2022 and 2021 under the employee stock purchase plan. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans 401(k) Savings Plan and Other Defined Contribution Plans The company’s 401(k) savings and other defined contribution plans cover the majority of the company’s eligible U.S. and certain non-U.S. employees. Contributions to the plans are made by both the employee and the company. Company contributions are based on the level of employee contributions, and are based on formulas determined by the company. In 2023, 2022 and 2021, the company charged to expense $468 million, $402 million and $299 million, respectively, related to its defined contribution plans. Defined Benefit Pension Plans Employees of a number of the company’s non-U.S. and certain U.S. subsidiaries participate in defined benefit pension plans covering substantially all full-time employees at those subsidiaries. Some of the plans are unfunded, as permitted under the plans and applicable laws. The company also maintains postretirement healthcare programs at several acquired businesses where certain employees are eligible to participate. The liabilities and costs associated with the company’s postretirement healthcare programs are generally funded on a self-insured and insured-premium basis and are not material for any period presented. The company recognizes the funded status of defined benefit pension and other postretirement benefit plans as an asset or liability. This amount is defined as the difference between the fair value of plan assets and the benefit obligation. The company is required to recognize as a component of other comprehensive items, net of tax, the actuarial gains/losses and prior service costs/credits that arise but were not previously required to be recognized as components of net periodic benefit cost. Other comprehensive items is adjusted as these amounts are later recognized in income as components of net periodic benefit cost. When a company with a pension plan is acquired, any excess of projected benefit obligation over the plan assets is recognized as a liability and any excess of plan assets over the projected benefit obligation is recognized as an asset. The recognition of a new liability or a new asset results in the elimination of (a) previously existing unrecognized net gain or loss and (b) unrecognized prior service cost or credits. The company funds annually, at a minimum, the statutorily required minimum amount as actuarially determined. Contributions to the plans included in the following table are estimated at between $30 million and $50 million for 2024. The following table provides a reconciliation of benefit obligations and plan assets of the company’s domestic and non-U.S. pension plans: Domestic pension benefits Non-U.S. pension benefits (In millions) 2023 2022 2023 2022 Accumulated benefit obligation $ 1,005 $ 995 $ 1,166 $ 1,016 Change in projected benefit obligations Projected benefit obligation at beginning of year $ 995 $ 1,260 $ 1,069 $ 1,552 Acquisitions — — 15 51 Service costs — — 26 34 Interest costs 47 27 42 20 Settlements — — (37) (31) Plan participants' contributions — — 9 9 Actuarial (gains) losses 42 (210) 65 (447) Benefits paid (79) (82) (25) (19) Currency translation and other — — 57 (100) Projected benefit obligation at end of year $ 1,005 $ 995 $ 1,221 $ 1,069 Change in fair value of plan assets Fair value of plan assets at beginning of year $ 937 $ 1,226 $ 868 $ 1,302 Acquisitions — — 15 14 Actual return on plan assets 84 (212) 29 (347) Employer contributions 5 5 36 36 Settlements — — (37) (31) Plan participants' contributions — — 9 9 Benefits paid (79) (82) (25) (19) Currency translation and other — — 49 (96) Fair value of plan assets at end of year $ 947 $ 937 $ 944 $ 868 Funded status $ (58) $ (58) $ (277) $ (201) Amounts recognized in balance sheet Noncurrent assets $ — $ — $ 65 $ 81 Current liability (6) (6) (11) (11) Noncurrent liabilities (52) (52) (331) (271) Net amount recognized $ (58) $ (58) $ (277) $ (201) Amounts recognized in accumulated other comprehensive items Net actuarial loss $ 217 $ 200 $ 151 $ 74 Prior service credits — — (5) (4) Net amount recognized $ 217 $ 200 $ 146 $ 70 For domestic pension plans, actuarial losses experienced in 2023 were driven by decreases in the weighted average discount rates used to determine the projected benefit obligation, as well as differences between actual and expected returns on plan assets for certain portions of plan benefits indexed to asset returns. For non-U.S. pension plans, actuarial losses experienced in 2023 were principally driven by decreases in the weighted average discount rates used to determine the projected benefit obligation. For domestic pension plans, actuarial gains experienced in 2022 were driven by increases in the weighted average discount rates used to determine the projected benefit obligation, as well as differences between actual and expected returns on plan assets for certain portions of plan benefits indexed to asset returns. For non-U.S. pension plans, actuarial gains experienced in 2022 were principally driven by increases in the weighted average discount rates used to determine the projected benefit obligation. The actuarial assumptions used to compute the funded status for the plans are based upon information available as of December 31, 2023 and 2022 and are as follows: Domestic pension benefits Non-U.S. pension benefits 2023 2022 2023 2022 Weighted average assumptions used to determine projected benefit obligations Discount rate for determining benefit obligation 4.82 % 5.01 % 3.47 % 3.91 % Interest crediting rate for cash balance plans 4.76 % 4.96 % 2.06 % 2.19 % Average rate of increase in employee compensation N/A N/A 2.64 % 2.78 % The actuarial assumptions used to compute the net periodic pension benefit cost (income) are based upon information available as of the beginning of the year, as presented in the following table: Domestic pension benefits Non-U.S. pension benefits 2023 2022 2021 2023 2022 2021 Weighted average assumptions used to determine net benefit cost (income) Discount rate - service cost N/A N/A N/A 3.62 % 1.00 % 0.65 % Discount rate - interest cost 5.01 % 2.70 % 2.33 % 3.95 % 1.36 % 0.80 % Average rate of increase in employee compensation N/A N/A N/A 2.77 % 2.73 % 2.30 % Expected long-term rate of return on assets 6.25 % 4.75 % 4.25 % 4.33 % 2.33 % 2.02 % The discount rate reflects the rate the company would have to pay to purchase high-quality investments that would provide cash sufficient to settle its current pension obligations. The discount rate is determined based on a range of factors, including the rates of return on high-quality, fixed-income corporate bonds and the related expected duration of the obligations or, in certain instances, the company has used a hypothetical portfolio of high quality instruments with maturities that mirror the benefit obligation in order to accurately estimate the discount rate relevant to a particular plan. The company utilizes a full yield curve approach in the estimation of these components by applying the specific spot-rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The expected long-term rate of return on plan assets reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for the benefits included in the projected benefit obligations. In determining the expected long-term rate of return on plan assets, the company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. In addition, the company may consult with and consider the opinions of financial and other professionals in developing appropriate return benchmarks. Asset management objectives include maintaining an adequate level of diversification to reduce interest rate and market risk and providing adequate liquidity to meet immediate and future benefit payment requirements. The expected rate of compensation increase reflects the long-term average rate of salary increases and is based on historic salary increase experience and management’s expectations of future salary increases. The projected benefit obligation and fair value of plan assets for the company’s qualified and non-qualified pension plans with projected benefit obligations in excess of plan assets are as follows: Pension plans (In millions) 2023 2022 Pension plans with projected benefit obligations in excess of plan assets Projected benefit obligation $ 1,752 $ 1,636 Fair value of plan assets 1,352 1,296 The accumulated benefit obligation and fair value of plan assets for the company's qualified and non-qualified pension plans with accumulated benefit obligations in excess of plan assets are as follows: Pension plans (In millions) 2023 2022 Pension plans with accumulated benefit obligations in excess of plan assets Accumulated benefit obligation $ 1,695 $ 1,583 Fair value of plan assets 1,349 1,294 The measurement date used to determine benefit information is December 31 for all plan assets and benefit obligations. The net periodic pension benefit cost (income) includes the following components: Domestic pension benefits Non-U.S. pension benefits (In millions) 2023 2022 2021 2023 2022 2021 Components of net benefit cost (income) Service cost $ — $ — $ — $ 26 $ 34 $ 27 Interest cost on benefit obligation 47 27 23 42 20 11 Expected return on plan assets (59) (45) (40) (37) (26) (19) Amortization of actuarial net loss — 4 7 2 7 12 Amortization of prior service cost (benefit) — — — (1) (1) — Settlement/curtailment loss (gain) — — — 1 (2) — Net periodic benefit cost (income) $ (12) $ (14) $ (10) $ 33 $ 32 $ 31 Expected benefit payments are estimated using the same assumptions used in determining the company’s benefit obligation at December 31, 2023. Benefit payments will depend on future employment and compensation levels, average years employed and average life spans, among other factors, and changes in any of these factors could significantly affect these estimated future benefit payments. Estimated future benefit payments during the next five years and in the aggregate for the five fiscal years thereafter, are as follows: (In millions) Domestic pension benefits Non-U.S. pension benefits Expected benefit payments 2024 $ 81 $ 52 2025 79 55 2026 80 59 2027 79 60 2028 79 65 2029-2033 374 354 Domestic Pension Plan Assets The company’s overall objective is to manage the assets in a liability framework where investments are selected that are expected to have similar changes in fair value as the related liabilities will have upon changes in interest rates. The company invests in a portfolio of both return-seeking and liability-hedging assets, primarily through the use of institutional collective funds, to achieve long-term growth and to insulate the funded position from interest rate volatility. The strategic asset allocation uses a combination of risk controlled and index strategies in fixed income and global equities. The target allocations for the investments are approximately 10% to funds investing in U.S. equities, approximately 10% to funds investing in international equities and approximately 80% to funds investing in fixed income securities. The portfolio maintains enough liquidity at all times to meet the near-term benefit payments. Non-U.S. Pension Plan Assets The company maintains specific plan assets for many of the individual pension plans outside the U.S. The investment strategy of each plan has been uniquely established based on the country specific standards and characteristics of the plans. Several of the plans have contracts with insurance companies whereby the market risks of the benefit obligations are borne by the insurance companies. When assets are held directly in investments, generally the objective is to invest in a portfolio of diversified assets with a variety of fund managers. The investments may include equity funds, fixed income funds, hedge funds, multi-asset funds, alternative investments and derivative funds with the target asset allocations ranging from approximately 0% - 25% for equity funds, 30% - 90% for fixed income funds, 0% - 40% for multi-asset funds, 0% - 4% for alternative investments, 0% - 4% for real estate funds and 0% - 45% for funds holding derivatives. The derivatives held by the funds are primarily interest rate swaps intended to match the movements in the plan liabilities. Each plan maintains enough liquidity at all times to meet the near-term benefit payments. The fair values of the company’s plan assets at December 31, 2023 and 2022, by asset category are as follows: December 31, Quoted Significant Significant Not subject to leveling (a) (In millions) 2023 (Level 1) (Level 2) (Level 3) Domestic pension plan assets U.S. equity funds $ 93 $ — $ — $ — $ 93 International equity funds 93 — — — 93 Fixed income funds 739 — — — 739 Money market funds 22 — — — 22 Total domestic pension plans $ 947 $ — $ — $ — $ 947 Non-U.S. pension plan assets Equity funds $ 7 $ — $ — $ — $ 7 Fixed income funds 346 9 — — 337 Multi-asset funds 66 — — — 66 Derivative funds 184 — — — 184 Alternative investments 1 — — — 1 Insurance contracts 333 — 333 — — Real estate funds 1 — — — 1 Cash / money market funds 6 4 — — 2 Total non-U.S. pension plans $ 944 $ 13 $ 333 $ — $ 598 (a) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. December 31, Quoted Significant Significant Not subject to leveling (a) (In millions) 2022 (Level 1) (Level 2) (Level 3) Domestic pension plan assets U.S. equity funds $ 89 $ — $ — $ — $ 89 International equity funds 91 — — — 91 Fixed income funds 739 — — — 739 Money market funds 18 — — — 18 Total domestic pension plans $ 937 $ — $ — $ — $ 937 Non-U.S. pension plan assets Equity funds $ 8 $ — $ — $ — $ 8 Fixed income funds 299 — — — 299 Multi-asset funds 56 — — — 56 Derivative funds 190 — — — 190 Insurance contracts 306 — 306 — — Cash / money market funds 9 4 — — 5 Total non-U.S. pension plans $ 868 $ 4 $ 306 $ — $ 558 (a) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The tables above present the fair value of the company’s plan assets in accordance with the fair value hierarchy (Note 14). Certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts of these investments presented in the above tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension plan assets. These investments were also redeemable at the balance sheet date or within limited time restrictions. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before provision for income taxes are as follows: (In millions) 2023 2022 2021 U.S. $ 2,431 $ 3,859 $ 3,340 Non-U.S. 3,867 3,976 5,501 Income before income taxes $ 6,298 $ 7,835 $ 8,841 The components of the provision for income taxes are as follows: (In millions) 2023 2022 2021 Current income tax provision Federal $ 228 $ 813 $ 446 Non-U.S. 1,206 633 1,148 State 150 254 160 1,584 1,700 1,754 Deferred income tax provision (benefit) Federal $ (551) $ (611) $ (227) Non-U.S. (647) (314) (399) State (102) (72) (19) (1,300) (997) (645) Provision for income taxes $ 284 $ 703 $ 1,109 The provision for income taxes in the accompanying statement of income differs from the provision calculated by applying the statutory federal income tax rate to income before income taxes due to the following: (In millions) 2023 2022 2021 Statutory federal income tax rate 21 % 21 % 21 % Provision for income taxes at statutory rate $ 1,323 $ 1,645 $ 1,857 Increases (decreases) resulting from: Foreign rate differential (223) (329) (255) Income tax credits (276) (202) (315) Global intangible low-taxed income 113 96 76 Foreign-derived intangible income (108) (149) (119) Excess tax benefits from stock options and restricted stock units (69) (80) (124) Provision for (reversal of) tax reserves, net 13 (544) (17) Intra-entity transfers (233) (18) (284) Foreign exchange loss on inter-company debt refinancing (112) — — Provision for (reversal of) valuation allowances, net (32) 344 36 Withholding taxes 33 84 164 Tax return reassessments and settlements (187) (210) 1 State income taxes, net of federal tax 70 111 82 Other, net (28) (45) 7 Provision for income taxes $ 284 $ 703 $ 1,109 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. During 2023, the company released valuation allowances of $32 million in jurisdictions where the deferred tax assets are now expected to be realized. In 2023 the company also recorded a tax benefit of $127 million for U.S. tax credits and the revaluation of net operating loss carryforwards due to higher tax rates as a result of its tax return resubmissions, a $91 million tax benefit, net of related tax expenses, from a foreign exchange loss on an intercompany debt refinancing transaction, and $233 million of tax benefits resulting from intra-entity transactions. During 2022, the company settled an IRS audit relating to the 2017 and 2018 tax years. The company recorded a $208 million net tax benefit primarily from this settlement and related impacts, which resulted in a decrease in the company’s unrecognized tax benefits of $658 million. The company recorded $49 million of charges for expired tax credits and other related components of the settlement. The company recorded a charge of $395 million to establish a valuation allowance against certain U.S. foreign tax credits which the company believes will more likely than not expire unutilized. The company also recorded $101 million of additional net unrecognized tax benefit liabilities related to other tax audits. During 2021, the company recorded a $188 million income tax benefit related to the deferred tax implications of an intra-entity transfer of assets. Also in 2021, the company recorded a $96 million income tax benefit related to a capital loss resulting from certain intra-entity transactions. The company generally receives a tax deduction upon the exercise of non-qualified stock options by employees, or the vesting of restricted stock units held by employees, for the difference between the exercise price and the market price of the underlying common stock on the date of exercise. The company uses the incremental tax benefit approach for utilization of tax attributes. These excess tax benefits reduce the tax provision. In 2023, 2022 and 2021, the company's tax provision was reduced by $69 million, $80 million and $124 million, respectively, of such benefits. Net deferred tax asset/(liability) in the accompanying balance sheet consists of the following: (In millions) 2023 2022 Deferred tax asset/(liability) Depreciation and amortization $ (4,286) $ (4,277) Net operating loss and credit carryforwards 2,385 1,951 Reserves and accruals 157 140 Accrued compensation 299 259 Inventory basis difference 275 364 Deferred interest 753 445 Research and development and other capitalized costs 380 220 Unrealized (gains) losses on hedging instruments (66) (199) Other, net 329 435 Deferred tax assets/(liabilities), net before valuation allowance 226 (662) Less: Valuation allowance 1,317 1,322 Deferred tax assets/(liabilities), net $ (1,091) $ (1,984) The company estimates the degree to which tax assets, losses and credit carryforwards will result in a benefit based on expected profitability by tax jurisdiction and provides a valuation allowance for tax assets and loss and credit carryforwards that it believes will more likely than not expire unutilized. At December 31, 2023, all of the company’s valuation allowance relates to deferred tax assets, primarily net operating losses and disallowed interest expense carryforward, for which any subsequently recognized tax benefits will reduce income tax expense. The changes in the valuation allowance are as follows: Year Ended December 31, (In millions) 2023 2022 2021 Beginning balance $ 1,322 $ 968 $ 933 Additions (reductions) charged to income tax provision, net (32) 344 24 Additions due to acquisitions 4 14 30 Currency translation and other 23 (4) (19) Ending balance $ 1,317 $ 1,322 $ 968 At December 31, 2023, the company had net federal, state and non-U.S. net operating loss carryforwards of $70 million, $93 million and $1.42 billion, respectively. Use of the carryforwards is limited based on the future income of certain subsidiaries. Of the federal net operating loss carryforwards, $30 million expire in the years 2024 through 2037, and the remainder do not expire. Of the state net operating loss carryforwards, $83 million expire in the years 2024 through 2042, and the remainder do not expire. Of the net non-U.S. net operating loss carryforwards, $435 million expire in the years 2026 through 2043, and the remainder do not expire. At December 31, 2023, the company had foreign tax credit carryforwards of $648 million and deferred interest carryforwards of $753 million. The foreign tax credit carryforwards will expire in the years 2025 through 2032. Of the deferred interest carryforwards, $149 million expire in the years 2025 through 2033 and the remainder do not expire. U.S. federal taxes have been recorded on approximately $34 billion of undistributed foreign earnings as of December 31, 2023. A provision has not been made for certain U.S. state income taxes or additional non-U.S. taxes that would be due when cash is repatriated to the U.S. as the company’s undistributed foreign earnings are intended to be reinvested outside of the U.S. indefinitely. The determination of the amount of the unrecognized deferred tax liability related to the undistributed foreign earnings is not practicable due to the uncertainty in the manner in which these earnings will be distributed. The company’s intent is to only make distributions from non-U.S. subsidiaries in the future when they can be made at no net tax cost. Unrecognized Tax Benefits As of December 31, 2023, the company had $0.54 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 2022 2021 Beginning balance $ 572 $ 1,124 $ 1,091 Additions due to acquisitions — 15 26 Additions for tax positions of current year 4 104 32 Additions for tax positions of prior years 34 24 60 Reductions for tax positions of prior years (43) (659) (5) Closure of tax years (6) (4) (27) Settlements (21) (32) (53) Ending balance $ 540 $ 572 $ 1,124 Substantially all of the unrecognized tax benefits are classified as long-term liabilities. The company does not expect its unrecognized tax benefits to change significantly over the next twelve months. During 2023, the company’s unrecognized tax benefits decreased by $12 million as a result of uncertain tax positions relating to foreign tax positions and decreased $19 million relating to U.S. federal and state tax positions. During 2022, the company’s unrecognized tax benefits increased by $143 million as a result of uncertain tax positions relating to foreign tax positions and decreased $610 million relating to U.S. federal and state tax positions which included $658 million from the settlement of the IRS audit of the 2017 and 2018 tax years. The company also assumed $15 million of uncertain tax benefits as part of the acquisition of PPD. During 2021, the company’s unrecognized tax benefits increased by $80 million as a result of uncertain tax positions relating to foreign tax positions and decreased $75 million relating to U.S. federal and state tax positions. The company also assumed $26 million of uncertain tax benefits as part of the acquisition of PPD. The company classified interest and penalties related to unrecognized tax benefits as income tax expense. The total amount of interest and penalties related to uncertain tax positions and recognized in the balance sheet as of December 31, 2023 and 2022 was $95 million and $74 million, respectively. The company conducts business globally and, as a result, Thermo Fisher or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as Australia, Canada, China, Denmark, Finland, France, Germany, Japan, Singapore, Sweden, the United Kingdom and the United States. With few exceptions, the company is no longer subject to U.S. state and local or non-U.S. income tax examinations for years before 2012 and no longer subject to U.S. federal income tax examinations for years before 2019. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share (In millions except per share amounts) 2023 2022 2021 Net income attributable to Thermo Fisher Scientific Inc. $ 5,995 $ 6,950 $ 7,725 Basic weighted average shares 386 392 394 Plus effect of: stock options and restricted stock units 2 2 3 Diluted weighted average shares 388 394 397 Basic earnings per share $ 15.52 $ 17.75 $ 19.62 Diluted earnings per share $ 15.45 $ 17.63 $ 19.46 Antidilutive stock options excluded from diluted weighted average shares 2 2 1 |
Debt and Other Financing Arrang
Debt and Other Financing Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Other Financing Arrangements | Debt and Other Financing Arrangements Effective interest rate at December 31, December 31, December 31, (Dollars in millions) 2023 2023 2022 Commercial Paper $ — $ 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 0.797% 2-Year Senior Notes, Due 10/18/2023 — 1,350 Floating Rate (EURIBOR + 0.20%) 2-Year Senior Notes Due 11/18/2023 (euro-denominated) — 1,819 0.000% 2-Year Senior Notes Due 11/18/2023 (euro-denominated) — 589 0.75% 8-Year Senior Notes, Due 9/12/2024 (euro-denominated) 0.93 % 1,104 1,071 Floating Rate (SOFR + 0.53%) 3-Year Senior Notes, Due 10/18/2024 — 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 % 883 857 2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) 2.10 % 706 686 0.853% 3-Year Senior Notes, Due 10/20/2025 (yen-denominated) 1.05 % 158 170 0.000% 4-Year Senior Notes Due 11/18/2025 (euro-denominated) 0.15 % 607 589 3.20% 3-Year Senior Notes, Due 1/21/2026 (euro-denominated) 3.39 % 552 535 1.40% 8.5-Year Senior Notes, Due 1/23/2026 (euro-denominated) 1.53 % 773 749 4.953% 3-Year Senior Notes, Due 8/10/2026 5.19 % 600 — 5.000% 3-Year Senior Notes due 12/5/2026 5.00 % 1,000 — 1.45% 10-Year Senior Notes, Due 3/16/2027 (euro-denominated) 1.65 % 552 535 1.75% 7-Year Senior Notes, Due 4/15/2027 (euro-denominated) 1.97 % 662 642 1.054% 5-Year Senior Notes, Due 10/20/2027 (yen-denominated) 1.18 % 205 221 4.80% 5-Year Senior Notes, Due 11/21/2027 5.00 % 600 600 Effective interest rate at December 31, December 31, December 31, (Dollars in millions) 2023 2023 2022 0.50% 8.5-Year Senior Notes, Due 3/1/2028 (euro-denominated) 0.77 % 883 857 0.77% 5-Year Senior Notes, Due 9/6/2028 (yen-denominated) 0.90 % 206 — 1.375% 12-Year Senior Notes, Due 9/12/2028 (euro-denominated) 1.46 % 662 642 1.750% 7-Year Senior Notes, Due 10/15/2028 1.89 % 700 700 5.000% 5-Year Senior Notes due 1/31/2029 5.00 % 1,000 — 1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) 2.08 % 773 749 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 4.977% 7-Year Senior Notes, Due 8/10/2030 5.12 % 750 — 0.80% 9-Year Senior Notes, Due 10/18/2030 (euro-denominated) 0.89 % 1,932 1,873 0.875% 12-Year Senior Notes, Due 10/1/2031 (euro-denominated) 1.13 % 993 963 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 % 662 642 1.49% 10-Year Senior Notes, Due 10/20/2032 (yen-denominated) 1.60 % 45 48 4.95% 10-Year Senior Notes, Due 11/21/2032 5.09 % 600 600 5.086% 10-Year Senior Notes, Due 8/10/2033 5.20 % 1,000 — 1.125% 12-Year Senior Notes, Due 10/18/2033 (euro-denominated) 1.20 % 1,656 1,606 5.200% 10-Year Senior Notes due 1/31/2034 5.20 % 500 — 3.65% 12-Year Senior Notes, Due 11/21/2034 (euro-denominated) 3.76 % 828 803 1.50% 12-Year Senior Notes, due 9/6/2035 (yen-denominated) 1.58 % 152 — 2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) 2.94 % 773 749 1.50% 20-Year Senior Notes, Due 10/1/2039 (euro-denominated) 1.73 % 993 963 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 % 1,380 1,339 2.069% 20-Year Senior Notes, Due 10/20/2042 (yen-denominated) 2.13 % 104 111 5.404% 20-Year Senior Notes, due 8/10/2043 5.50 % 600 — 2.02% 20-Year Senior Notes, due 9/6/2043 (yen-denominated) 2.06 % 206 — 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 % 1,104 1,071 2.00% 30-Year Senior Notes, Due 10/18/2051 (euro-denominated) 2.07 % 828 803 2.382% 30-Year Senior Notes, Due 10/18/2052 (yen-denominated) 2.43 % 236 254 Other 77 79 Total borrowings at par value 35,028 34,561 Unamortized discount (113) (112) Unamortized debt issuance costs (188) (171) Total borrowings at carrying value 34,727 34,278 Finance lease liabilities 190 210 Less: Short-term obligations and current maturities 3,609 5,579 Long-term obligations $ 31,308 $ 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 14 for fair value information pertaining to the company’s long-term borrowings. As of December 31, 2023, the annual repayment requirements for debt obligations are as follows: (In millions) Borrowings Finance Lease Liabilities 2024 $ 3,604 $ 5 2025 2,356 13 2026 2,925 12 2027 2,020 10 2028 2,451 8 2029 and thereafter 21,672 142 $ 35,028 $ 190 In addition to available borrowings under the company’s revolving credit agreements, discussed below, the company had unused lines of credit of $69 million as of December 31, 2023. These unused lines of credit generally provide for short-term unsecured borrowings at various interest rates. Credit Facilities The company has a revolving credit facility (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 December 31, 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, euro-denominated fixed rate senior notes and yen-denominated private placement notes may be redeemed at a redemption price of 100% of the principal amount plus a specified make-whole premium and accrued interest, together with swap breakage costs payable to holders of yen-denominated private placement notes who have entered into cross-currency swap agreements. The company is subject to certain affirmative and negative covenants under the indentures and note purchase agreement governing the senior notes, the most restrictive of which limits the ability of the company to pledge certain property and assets as security under borrowing arrangements. The company was in compliance with all covenants at December 31, 2023. In 2022 the company completed the full allocation of an amount equal to the net proceeds from the 0.000% senior notes due 2025 to finance or refinance, in whole or in part, certain COVID-19 response projects. In 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 statement of income. In 2021, the company redeemed some of its existing senior notes. In connection with these redemptions, the company incurred $767 million of losses on the early extinguishment of debt included in other income/(expense) on the accompanying statement of income. Upon redemption of the senior notes, the company terminated the related fixed to floating rate interest rate swap arrangements and received $22 million, included in other financing activities, net, in the accompanying statement of cash flows. Thermo Fisher Scientific (Finance I) B.V. (Thermo Fisher International), a wholly-owned finance subsidiary of the company, issued each of the following notes outstanding as of December 31, 2023, included in the table above (collectively, the “Euronotes”) in registered public offerings: the 0.00% Senior Notes due 2025, the 0.80% Senior Notes due 2030, the 1.125% Senior Notes due 2033, the 1.625% Senior Notes due 2041, and the 2.00% Senior Notes due 2051. The company has fully and unconditionally guaranteed all of Thermo Fisher International’s obligations under the Euronotes and all of Thermo Fisher International’s other debt securities, and no other subsidiary of the company will guarantee these obligations. Thermo Fisher International is a “finance subsidiary” as defined in Rule 13-01(a)(4)(vi) of the Exchange Act, with no assets or operations other than those related to the issuance, administration and repayment of the Euronotes and other debt securities issued by Thermo Fisher International from time to time. The financial condition, results of operations and cash flows of Thermo Fisher International are consolidated in the financial statements of the company. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases As a lessee, the company leases certain logistics, office, and manufacturing facilities, as well as vehicles, copiers, and other equipment. These operating leases generally have remaining lease terms between 1 month and 30 years, and some include options to extend (generally for 1 to 10 years) or have options to terminate the arrangement within 1 year. The company has guaranteed the residual value of three leased operating facilities with lease terms ending in 2024, 2025 and 2028. The company has agreed with the lessor to comply with certain financial covenants consistent with its other debt arrangements (Note 10). The aggregate maximum guarantee under these three lease arrangements is $147 million. Operating lease ROU assets and lease liabilities for these lease arrangements are recorded on the consolidated balance sheet as of December 31, 2023, but exclude any amounts for residual value guarantees. As a lessee, the consolidated financial statements include the following relating to operating leases: (Dollars in millions) 2023 2022 2021 Statement of income Operating lease costs $ 355 $ 351 $ 254 Variable lease costs 115 109 66 Statement of cash flows Cash used in operating activities for payments of amounts included in the measurement of operating lease liabilities $ 410 $ 289 $ 288 Operating lease ROU assets obtained in exchange for new operating lease liabilities 234 430 293 Balance sheet ROU assets - included in other assets $ 1,556 $ 1,593 Operating lease liabilities - included in other accrued expenses 263 272 Operating lease liabilities - included in other long-term liabilities 1,244 1,313 Weighted average at end of year Remaining operating lease term 9.2 years 9.4 years Discount rate 4.0 % 3.2 % Lease costs arising from finance leases, short-term leases, and sublease income are not material. See Note 10 for additional information relating to finance leases. As of December 31, 2023, future payments of operating lease liabilities are as follows: (In millions) 2024 $ 294 2025 288 2026 242 2027 172 2028 131 2029 and thereafter 723 Total lease payments 1,850 Less: imputed interest 343 Total operating lease liability $ 1,507 As a lessor, operating leases, sales-type leases and direct financing leases are not material. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations The company has entered into unconditional purchase obligations, in the ordinary course of business, that include agreements to purchase goods, services or fixed assets and to pay royalties that are enforceable and legally binding and that specify all significant terms including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Purchase obligations exclude agreements that are cancelable at any time without penalty. The aggregate amount of the company’s unconditional purchase obligations totaled $2.53 billion at December 31, 2023, the majority of which are expected to be settled during 2024. Letters of Credit, Guarantees and Other Commitments Outstanding letters of credit and bank guarantees totaled $315 million at December 31, 2023. Substantially all of these letters of credit and guarantees expire before 2040. Outstanding surety bonds and other guarantees totaled $93 million at December 31, 2023. The expiration of these bonds and guarantees ranges through 2025. The letters of credit, bank guarantees and surety bonds principally secure performance obligations, and allow the holder to draw funds up to the face amount of the letter of credit, bank guarantee or surety bond if the applicable business unit does not perform as contractually required. The company has funding commitments totaling $164 million at December 31, 2023, related to investments. The company is a guarantor of pension plan obligations of a divested business. The purchaser of the divested business has agreed to pay for the pension benefits, however the company was required to guarantee payment of these pension benefits should the purchaser fail to do so. The amount of the guarantee at December 31, 2023 was $24 million. In connection with the sale of businesses of the company, the buyers have assumed certain contractual obligations of such businesses and have agreed to indemnify the company with respect to those assumed liabilities. In the event a third-party to a transferred contract does not recognize the transfer of obligations or a buyer defaults on its obligations under the transferred contract, the company could be liable to the third-party for such obligations. However, in such event, the company would be entitled to seek indemnification from the buyer. Indemnifications In conjunction with certain transactions, primarily divestitures, the company has agreed to indemnify the other parties with respect to certain liabilities related to the businesses that were sold or leased properties that were abandoned (e.g., retention of certain environmental, tax, employee and product liabilities). The scope and duration of such indemnity obligations vary from transaction to transaction. Where probable, an obligation for such indemnifications is recorded as a liability. Generally, a maximum obligation cannot be reasonably estimated. Other than obligations recorded as liabilities at the time of divestiture, historically the company has not made significant payments for these indemnifications. In connection with the company’s efforts to reduce the number of facilities that it occupies, the company has vacated some of its leased facilities or sublet them to third parties. When the company sublets a facility to a third-party, it remains the primary obligor under the master lease agreement with the owner of the facility. As a result, if a third-party vacates the sublet facility, the company would be obligated to make lease or other payments under the master lease agreement. The company believes that the financial risk of default by sublessors is individually and in the aggregate not material to the company’s financial position or results of operations. In connection with the sale of products in the ordinary course of business, the company often makes representations affirming, among other things, that its products do not infringe on the intellectual property rights of others and agrees to indemnify customers against third-party claims for such infringement. The company has not been required to make material payments under such provisions. Environmental Matters The company is currently involved in various stages of investigation and remediation related to environmental matters. The company cannot predict all potential costs related to environmental remediation matters and the possible impact on future operations given the uncertainties regarding the extent of the required cleanup, the complexity and interpretation of applicable laws and regulations, the varying costs of alternative cleanup methods and the extent of the company’s responsibility. Expenses for environmental remediation matters related to the costs of installing, operating and maintaining groundwater-treatment systems and other remedial activities related to historical environmental contamination at the company’s domestic and international facilities were not material in any period presented. The company records accruals for environmental remediation liabilities, based on current interpretations of environmental laws and regulations, when it is probable that a liability has been incurred and the amount of such liability can be reasonably estimated. The company calculates estimates based upon several factors, including input from environmental specialists and management’s knowledge of and experience with these environmental matters. The company includes in these estimates potential costs for investigation, remediation and operation and maintenance of cleanup sites. At December 31, 2023 , the company’s total environmental liability was approximately 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. The company determines the probability and range of possible loss based on the current status of each of these matters. A liability is recorded in the financial statements if it is believed to be probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The company establishes a liability that is an estimate of amounts expected to be paid in the future for events that have already occurred. The company accrues the most likely amount or at least the minimum of the range of probable loss when a range of probable loss can be estimated. The accrued liabilities are based on management’s judgment as to the probability of losses for asserted and unasserted claims and, where applicable, actuarially determined estimates. Accrual estimates are adjusted as additional information becomes known or payments are made. The amount of ultimate loss may differ from these estimates. Due to the inherent uncertainties associated with pending litigation or claims, the company cannot predict the outcome, nor, with respect to certain pending litigation or claims where no liability has been accrued, make a meaningful estimate of the reasonably possible loss or range of loss that could result from an unfavorable outcome. The company has no material accruals for pending litigation or claims for which accrual amounts are not disclosed below, nor are material losses deemed probable for such matters. It is reasonably possible, however, that an unfavorable outcome that exceeds the company’s current accrual estimate, if any, for one or more of the matters described below could have a material adverse effect on the company’s results of operations, financial position and cash flows. Product Liability, Workers Compensation and Other Personal Injury Matters The company is involved in various proceedings and litigation that arise from time to time in connection with product liability, workers compensation and other personal injury matters. The range of probable loss for product liability, workers compensation and other personal injury matters of the company’s continuing operations at December 31, 2023, was approximately $222 million to $379 million. The company’s accrual for these matters totaled $224 million at December 31, 2023. The accrual includes estimated defense costs and is gross of estimated amounts due from insurers of $88 million at December 31, 2023 that are included in other assets in the accompanying balance sheet. In addition, as of December 31, 2023, the company had a product liability accrual of $20 million relating to divested businesses. |
Comprehensive Income and Shareh
Comprehensive Income and Shareholders Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income and Shareholders' Equity | Comprehensive Income/(Loss) and Shareholders' Equity Comprehensive Income (Loss) Changes in each component of accumulated other comprehensive items, net of tax are as follows: (In millions) Currency Unrealized Pension and Total Balance at December 31, 2022 $ (2,880) $ (33) $ (186) $ (3,099) Other comprehensive income/(loss) before reclassifications (69) — (69) (138) Amounts reclassified from accumulated other comprehensive income/(loss) 8 5 — 13 Net other comprehensive income/(loss) (61) 5 (69) (125) Balance at December 31, 2023 $ (2,941) $ (28) $ (255) $ (3,224) Shareholders’ Equity At December 31, 2023, the company had reserved 39 million unissued shares of its common stock for possible issuance under stock-based compensation plans. Early in the first quarter of 2024, the company repurchased $3.00 billion of the company's common stock (5.5 million shares). |
Fair Value Measurements and Fai
Fair Value Measurements and Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 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 company uses the market approach technique to value its financial instruments and there were no changes in valuation techniques during 2023. The company’s financial assets and liabilities carried at fair value are primarily comprised of investments in publicly traded securities, insurance contracts, investments in derivative contracts, mutual funds holding publicly traded securities and other investments in unit trusts held as assets to satisfy outstanding deferred compensation and retirement liabilities; and acquisition-related contingent consideration. Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities that the company has the ability to access. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data such as quoted prices, interest rates and yield curves. Level 3: Inputs are unobservable data points that are not corroborated by market data. The following tables present information about the company’s financial assets and liabilities measured at fair value on a recurring basis: December 31, Quoted Significant Significant (In millions) 2023 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 5,021 $ 5,021 $ — $ — Bank time deposits 3 3 — — Investments 20 20 — — Insurance contracts 210 — 210 — Derivative contracts 8 — 8 — Total assets $ 5,262 $ 5,044 $ 218 $ — Liabilities Derivative contracts $ 290 $ — $ 290 $ — Contingent consideration 87 — — 87 Total liabilities $ 377 $ — $ 290 $ 87 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. 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. (In millions) 2023 2022 Contingent consideration Beginning balance $ 174 $ 317 Acquisitions (including assumed balances) 1 (18) Payments (63) (66) Changes in fair value included in earnings (25) (59) Ending balance $ 87 $ 174 Derivative Contracts The following table provides the aggregate notional value of outstanding derivative contracts. December 31, December 31, (In millions) 2023 2022 Cross-currency interest rate swaps designated as net investment hedge - euro $ 1,000 $ 900 Cross-currency interest rate swaps designated as net investment hedge - Japanese yen 4,650 1,200 Cross-currency interest rate swaps designated as net investment hedge - Swiss franc 2,500 — Currency exchange contracts 1,567 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 December 31, December 31, December 31, December 31, (In millions) 2023 2022 2023 2022 Derivatives designated as hedging instruments Cross-currency interest rate swaps (a) $ 5 $ 77 $ 287 $ 85 Derivatives not designated as hedging instruments Currency exchange contracts (b) 3 2 3 16 Total derivatives $ 8 $ 79 $ 290 $ 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 (In millions) 2023 2022 2021 Fair value hedging relationships Cross-currency interest rate swaps Hedged long-term obligations - included in other income/(expense) $ — $ 77 $ — Derivatives designated as hedging instruments - included in other income/(expense) — (81) — Interest rate swaps Hedged long-term obligations - included in other income/(expense) — — 25 Derivatives designated as hedging instruments - included in other income/(expense) — — (3) Derivatives designated as cash flow hedges Interest rate swaps Amount reclassified from accumulated other comprehensive items to interest expense (4) — — Amount reclassified from accumulated other comprehensive items to other income/(expense) (3) (3) (73) Financial instruments designated as net investment hedges Foreign currency-denominated debt and other payables Included in currency translation adjustment within other comprehensive items (356) 695 922 Cross-currency interest rate swaps Included in currency translation adjustment within other comprehensive items (222) 52 71 Included in interest expense 120 19 8 Derivatives not designated as hedging instruments Currency exchange contracts Included in cost of product revenues 1 6 12 Included in other income/(expense) (29) 102 162 Gains and losses recognized on currency exchange contracts and the interest rate swaps designated as fair value hedges 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 and Note 10 for additional information on the company’s risk management objectives and strategies. Cash Flow Hedge Arrangements During 2021, in connection with the extinguishment of debt (Note 10), the company reclassified $65 million from accumulated other comprehensive income/(loss) to other income/(expense). Fair Value of Other Financial Instruments The carrying value and fair value of the company’s debt instruments are as follows: December 31, 2023 December 31, 2022 Carrying Fair Carrying Fair (In millions) value value value value Senior notes $ 34,650 $ 32,191 $ 33,889 $ 29,901 Commercial paper — — 310 310 Other 77 77 79 79 $ 34,727 $ 32,268 $ 34,278 $ 30,290 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information (In millions) 2023 2022 2021 Cash paid for: Interest $ 1,385 $ 667 $ 555 Income taxes 1,482 1,234 2,182 Non-cash investing and financing activities Acquired but unpaid property, plant and equipment 296 393 379 Fair value of equity awards exchanged — — 43 Fair value of acquisition contingent consideration — — 183 Finance lease ROU assets obtained in exchange for new finance lease liabilities 2 33 15 Declared but unpaid dividends 137 119 104 Issuance of stock upon vesting of restricted stock units 234 241 265 Excise tax from stock repurchases 28 — — Cash, cash equivalents and restricted cash is included in the consolidated balance sheet as follows: December 31, December 31, (In millions) 2023 2022 Cash and cash equivalents $ 8,077 $ 8,524 Restricted cash included in other current assets 6 12 Restricted cash included in other assets 14 1 Cash, cash equivalents and restricted cash $ 8,097 $ 8,537 |
Restructuring and Other Costs
Restructuring and Other Costs | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs | Restructuring and Other Costs Restructuring and other costs in 2023 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 5% of the company’s workforce. Restructuring and other costs in 2022 primarily included impairment of long-lived assets and continuing charges for headcount reductions and facility consolidations in an effort to streamline operations. In 2022, severance actions associated with facility consolidations and cost reduction measures affected less than 2% of the company’s workforce. Restructuring and other costs in 2021 primarily included charges for impairments of an acquired technology asset and a tradename asset, and, to a lesser extent, compensation due to employees at acquired businesses on the date of acquisition. In 2021, severance actions associated with facility consolidations and cost reduction measures affected less than 1% of the company’s workforce. As of February 22, 2024, the company has identified restructuring actions that will result in additional charges of approximately $70 million, primarily in 2024, 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: (In millions) 2023 2022 2021 Life Sciences Solutions $ 105 $ 30 $ 129 Analytical Instruments 33 1 6 Specialty Diagnostics 11 68 18 Laboratory Products and Biopharma Services 295 12 35 Corporate 15 3 9 $ 459 $ 114 $ 197 The following table summarizes the changes in the company’s accrued restructuring balance. Other amounts reported as restructuring and other costs (In millions) Total (a) Balance at December 31, 2020 $ 21 Net restructuring charges incurred in 2021 (b) 37 Payments (40) Currency translation (1) Balance at December 31, 2021 17 Net restructuring charges incurred in 2022 (c) 68 Payments (44) Balance at December 31, 2022 41 Net restructuring charges incurred in 2023 (d) (e) 194 Payments (175) Balance at December 31, 2023 $ 60 (a) The movements in the restructuring liability principally consist of severance and other costs associated with facility consolidations. (b) Excludes $160 million of charges, principally $122 million for impairments of an acquired technology asset and a tradename asset in the Life Sciences Solutions and Laboratory Products and Biopharma Services segments, principally resulting from a reduction in expected cash flows, and $35 million of charges for compensation contractually due to employees of acquired businesses at the date of acquisition in the Life Sciences Solutions and Laboratory Products and Biopharma Services segments. (c) Excludes $46 million of net charges, primarily charges for impairment of long-lived assets in the Specialty Diagnostic segment. (d) Excludes $264 million of net charges, principally $126 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 $19 million of net charges for pre-acquisition litigation and other matters in the Laboratory Products and Biopharma Services segment. (e) Excludes $93 million of charges in the Laboratory Products and Biopharma Services segment for impairments of a disposal group that was held for sale beginning in the third quarter of 2023. The loss attributable to Thermo Fisher Scientific Inc. was reduced by $46 million attributable to a noncontrolling interest. The company expects to pay accrued restructuring costs primarily through 2024. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Michael A. Boxer [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On December 13, 2023, Michael A. Boxer, our senior vice president, general counsel, adopted a trading plan intended to satisfy the conditions under Rule 10b5-1(c) of the Exchange Act. Mr. Boxer’s plan is for the exercise of vested stock options and the associated sale of up to 20,566 shares of company common stock through December 13, 2024. The foregoing exercises or sales will be made in accordance with the prices and formulas set forth in the plan and such plan terminates on the earlier of the date all the shares under the plan are sold and December 13, 2024. | |
Name | Michael A. Boxer | |
Title | senior vice president, general counsel | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 13, 2023 | |
Arrangement Duration | 366 days | |
Aggregate Available | 20,566 | 20,566 |
Lisa P. Britt [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On December 12, 2023, Lisa P. Britt, our senior vice president, chief human resources officer, adopted a trading plan intended to satisfy the conditions under Rule 10b5-1(c) of the Exchange Act. Ms. Britt’s plan is for the exercise of vested stock options and the associated sale of up to 14,345 shares of company common stock through November 11, 2024. The foregoing exercises or sales will be made in accordance with the prices and formulas set forth in the plan and such plan terminates on the earlier of the date all the shares under the plan are sold and November 12, 2024. | |
Name | Lisa P. Britt | |
Title | senior vice president, chief human resources officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 12, 2023 | |
Arrangement Duration | 336 days | |
Aggregate Available | 14,345 | 14,345 |
Marc N. Casper [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On November 10, 2023, Marc N. Casper, our chairman, president and chief executive officer, adopted a trading plan intended to satisfy the conditions under Rule 10b5-1(c) of the Exchange Act. Mr. Casper’s plan is for the exercise of vested stock options and the associated sale of up to 202,150 shares of company common stock through November 1, 2024. The foregoing exercises or sales will be made in accordance with the prices and formulas set forth in the plan and such plan terminates on the earlier of the date all the shares under the plan are sold and November 4, 2024. | |
Name | Marc N. Casper | |
Title | chairman, president and chief executive officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 10, 2023 | |
Arrangement Duration | 360 days | |
Aggregate Available | 202,150 | 202,150 |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying financial statements include the accounts of the company and its wholly and majority-owned subsidiaries. All material intercompany accounts and transactions have been eliminated. The company accounts for investments in businesses using the equity method when it has the ability to exercise significant influence but not control (generally between 20% and 50% ownership), is not the primary beneficiary and has not elected the fair value option. At December 31, 2023 and 2022, the company had such investments with carrying amounts of $489 million and $369 million, respectively. The company has elected the fair value option of accounting for certain of its investments with readily determinable fair values that would otherwise be accounted for under the equity method. At December 31, 2023 and 2022, the fair value of such investments was $5 million and $7 million, respectively. Redeemable Noncontrolling Interest The company owns 60% of its consolidated subsidiary PPD-SNBL K.K. The 40% ownership interest held by a third party is classified as a redeemable noncontrolling interest on the consolidated balance sheet due to certain put options under which the third party may require the company to purchase the remaining ownership interest at a premium upon the occurrence of certain events. |
Presentation | Presentation Certain reclassifications of prior year amounts have been made to conform to the current year presentation. |
Revenue Recognition | Revenue Recognition Consumables revenues consist of single-use products and are recognized at a point in time following the transfer of control of such products to the customer, which generally occurs upon shipment. Instruments revenues typically consist of longer-lived assets that, for the substantial majority of sales, are recognized at a point in time in a manner similar to consumables. Service revenues (primarily clinical research, pharmaceutical, and instrument and enterprise services) are recognized over time as customers receive and consume the benefits of such services. For revenues recognized over time, the company generally uses costs accumulated relative to total estimated costs to measure progress as this method approximates satisfaction of the performance obligation. For contracts that contain multiple performance obligations, the company allocates the consideration to which it expects to be entitled (i.e., the transaction price) to each performance obligation based on relative standalone selling prices and recognizes the related revenues when or as control of each individual performance obligation is transferred to customers. The company exercises judgment in determining the timing of revenue by analyzing the point in time or the period over which the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the asset. The company immediately expenses contract costs that would otherwise be capitalized and amortized over a period of less than one year. Changes to the scope of services contracts generally also include changes in the transaction price. Typically, these contract modifications are not distinct from existing services provided under the contract, and result in cumulative adjustments to revenue on the modification date. However, some modifications are distinct from existing services provided under the contract and recognized prospectively. Payments from customers for most instruments and consumables are typically due in a fixed number of days after shipment or delivery of the product. Service arrangements commonly call for payments in advance of performing the work (e.g., extended service contracts), upon completion of the service (e.g., pharmaceutical services) or a mix of both. Some arrangements include variable amounts of consideration that arise from discounts, rebates, and other programs and practices. In such arrangements, the company estimates the amount by which to reduce the stated contract amount to reflect the transaction price. The company records reimbursement for third-party pass-through and out-of-pocket costs as revenues and the related expenses as costs of revenues. Contract assets include revenues recognized in advance of billings where the company’s right to bill includes something other than the passage of time. Such amounts are recorded net of estimated losses resulting from the inability to invoice customers, which is primarily due to risk associated with the company’s performance. Contract assets are classified as current or noncurrent based on the amount of time expected to lapse until the company's right to consideration becomes unconditional. Contract liabilities include billings in excess of revenues recognized, such as those resulting from customer advances and deposits and unearned revenues on service contracts. Contract liabilities are classified as current or noncurrent based on the periods over which remaining performance obligations are expected to be transferred to customers. Contract assets and liabilities are presented on a net basis in the consolidated balance sheet if they arise from different performance obligations in the same contract. |
Contract-related Balances | Contract-related Balances Accounts receivable include unconditional rights to consideration from customers, which generally represent billings that do not bear interest. The company maintains allowances for doubtful accounts for estimates of expected losses resulting from the inability of its customers to pay amounts due. The allowance for doubtful accounts is the company’s best estimate of the amount of probable credit losses in existing accounts receivable. The company determines the allowance based on history of similarly aged receivables, the creditworthiness of the customer, reasons for delinquency, current economic conditions, expectations associated with future events and circumstances where reasonable and supportable forecasts are available and any other information that is relevant to the judgment. Receivables from academic and government customers as well as large, well-capitalized commercial customers have historically experienced less collectability risk. Account balances are charged off against the allowance when the company believes it is probable the receivable will not be recovered. The company does not have any off-balance-sheet credit exposure related to customers. |
Warranty Obligations | Warranty Obligations |
Leases | Leases Operating leases that have commenced are included in other assets, other accrued expenses and other long-term liabilities in the consolidated balance sheet. Finance leases that have commenced are included in property, plant and equipment, net, current maturities of long-term obligations and long-term obligations in the consolidated balance sheet. Classification of lease liabilities as either current or noncurrent is based on the expected timing of payments due under the company’s obligations. Right-of-use (ROU) assets represent the company’s right to use an underlying asset for the lease term and lease liabilities represent the company’s obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. The company recognizes operating lease expense on a straight-line basis over the lease term. Finance lease expense includes depreciation, which is recognized on a straight-line basis over the expected life of the leased asset, and an immaterial amount of interest expense. Because most of the company’s leases do not provide an implicit interest rate, the company estimates incremental borrowing rates based on the information available at the commencement date in determining the present value of lease payments. The company uses the implicit rate when readily determinable. Lease terms include the effect of options to extend or terminate the lease when it is reasonably certain that the company will exercise that option. |
Research and Development | Research and Development The company conducts research and development activities to increase its depth of capabilities in technologies, software and services. Research and development costs include employee compensation and benefits, consultants, facilities related costs, material costs, depreciation and travel. Research and development costs are expensed as incurred. |
Restructuring Costs | Restructuring Costs Accounting for the timing and amount of termination benefits provided by the company to employees is determined based on whether: (a) the company has a substantive plan to provide such benefits, (b) the company has a written employment contract with the affected employees that includes a provision for such benefits, (c) the termination benefits are due to the occurrence of an event specified in an existing plan or agreement, or (d) the termination benefits are a one-time benefit. In certain circumstances, employee termination benefits may meet more than one of the characteristics listed above and therefore, may have individual elements that are subject to different accounting models. From time to time when executing a restructuring or exit plan, the company also incurs costs other than termination benefits, such as lease termination costs, that are not associated with or will not be incurred to provide economic benefits to the company. These include costs that represent amounts under contractual obligations that exist prior to the restructuring plan communication date and will either continue after the restructuring plan is completed with no economic benefit or result in a penalty to cancel a contractual obligation. Such costs are recognized when incurred, which generally occurs at the contract termination or over the period from when a plan to abandon a leased facility is approved through the cease-use date but charges may continue over the remainder of the original contractual period. |
Income Taxes | Income Taxes The company recognizes deferred income taxes based on the expected future tax consequences of differences between the financial statement basis and the tax basis of assets and liabilities, calculated using enacted tax rates in effect for the year in which the differences are expected to be reflected in the tax return. A valuation allowance is provided for tax assets that will more likely than not go unused. The financial statements reflect expected future tax consequences of uncertain tax positions that the company has taken or expects to take on a tax return presuming the taxing authorities’ full knowledge of the positions and all relevant facts, but without discounting for the time value of money. |
Earnings per Share | Earnings per Share Basic earnings per share has been computed by dividing net income attributable to Thermo Fisher Scientific Inc. by the weighted average number of shares outstanding during the year. Except where the result would be antidilutive to net income attributable to Thermo Fisher Scientific Inc., diluted earnings per share has been computed using the treasury stock method for outstanding stock options and restricted units. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consists principally of money market funds, commercial paper and other marketable securities purchased with an original maturity of three months or less. These investments are carried at cost, which approximates market value. |
Inventories | Inventories |
Property, Plant and Equipment | Property, Plant and Equipment |
Acquisition-related Intangible Assets | Acquisition-related Intangible Assets Acquisition-related intangible assets include the costs of acquired customer relationships, product technology, tradenames, backlog and other specifically identifiable intangible assets, and are being amortized using the straight-line method over their estimated useful lives, which range up to 20 years. The company reviews these intangible assets for impairment when indication of potential impairment exists, such as a significant reduction in cash flows associated with the assets. When impairment indicators exist, the company determines whether the carrying value of its intangible assets exceeds the related undiscounted cash flows. In these situations, the carrying value is written down to fair value. |
Investments | Equity investments that do not have readily determinable fair values and are not eligible for the net asset value (NAV) practical expedient are measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer. The company performs qualitative assessments to identify impairments of these investments. |
Goodwill | Goodwill The company assesses goodwill for impairment at the reporting unit level annually and whenever events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Such events or circumstances generally include the occurrence of operating losses or a significant decline in earnings associated with one or more of the company’s reporting units. The company is permitted to first assess qualitative factors to determine whether the quantitative goodwill impairment test is necessary. If the qualitative assessment results in a determination that the fair value of a reporting unit is more likely than not less than its carrying amount, the company performs a quantitative goodwill impairment test. The company may bypass the qualitative assessment for the reporting unit in any period and proceed directly to the goodwill impairment test. The company estimates the fair value of its reporting units by using forecasts of discounted future cash flows and peer market multiples. The company would record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (limited to the amount of goodwill). The company determined that no impairments existed in 2023, 2022 or 2021. |
Loss Contingencies | Loss Contingencies Accruals are recorded for various contingencies, including legal proceedings, environmental, workers’ compensation, product, general and auto liabilities, self-insurance and other claims that arise in the normal course of business. The accruals are based on management’s judgment, historical claims experience, the probability of losses and, where applicable, the consideration of opinions of internal and/or external legal counsel and actuarial estimates. Additionally, the company records receivables from third-party insurers up to the amount of the loss when recovery has been determined to be probable. Certain liabilities acquired in acquisitions have been recorded at readily determinable fair values and, as such, were discounted to present value at the dates of acquisition. |
Currency Translation | Currency Translation |
Derivatives Contracts | Derivative Contracts The company is exposed to certain risks relating to its ongoing business operations including changes to interest rates and currency exchange rates. The company uses derivative instruments primarily to manage currency exchange and interest rate risks. The company recognizes derivative instruments as either assets or liabilities and measures those instruments at fair value. If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative are either offset against the change in fair value of the hedged item through earnings or recognized in other comprehensive items until the hedged item is recognized in earnings. Derivatives that are not designated as hedges are recorded at fair value through earnings. The company uses short-term forward and option currency exchange contracts primarily to hedge certain balance sheet and operational exposures resulting from changes in currency exchange rates, predominantly intercompany loans and cash balances that are denominated in currencies other than the functional currencies of the respective operations. The currency-exchange contracts principally hedge transactions denominated in euro, British pounds sterling, Canadian dollars, Singapore dollars, Czech koruna, Hong Kong dollars and Swedish krona. The company does not hold or engage in transactions involving derivative instruments for purposes other than risk management. Cash flow hedges . For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative is reported as a component of other comprehensive items and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. Fair value hedges. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in earnings. Net investment hedges. 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. |
Government Assistance | Government Assistance From time to time, the company receives assistance from various governmental agencies generally in the form of cash or non-income tax credits. These programs help offset the costs of certain research and development activities, facility construction and expansion efforts, or hiring objectives. When the company believes that it is probable that it will meet the conditions tied to the assistance, it offsets the associated expense in the consolidated income statement. Such amounts were not material to the consolidated financial statements as of and for the years ended December 31, 2023 and 2022. |
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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following table provides a description of recent accounting pronouncements adopted and those standards not yet adopted with potential for a material impact on the company's financial statements or disclosures. Standard Description Effective date for Thermo Fisher and adoption approach Impact of adoption or other significant matters Standards recently adopted Accounting Standards Update (ASU) No. 2021-05, Leases (Topic 842): Lessors-Certain Leases with Variable Lease Payments Amended guidance to require lessors to classify leases as operating leases if they have certain variable lease payment structures and would have selling losses if they were classified as sales-type or direct financing leases. Third quarter of 2021 using a prospective method Not material ASU No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance New guidance 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. Fourth quarter of 2022 using a prospective method Not material ASU No. 2022-04, Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations New guidance 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 supplier finance programs for each period presented. Some aspects adopted in 2023 using a retrospective method and will adopt other aspects in 2024 using a prospective method Not material Standards not yet adopted ASU No. 2023-07, Segment Reporting (Topic 280): Improving Reportable Segment Disclosures Among other things, new guidance to disclose significant segment expenses and other items by reportable segment as well as information about the chief operating decision maker. 2024 annual report and interim periods thereafter using a retrospective method Will increase disclosures in Note 4 ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures Among other things, new guidance to disclose additional information about the tax rate reconciliation and income taxes paid. 2025 annual report and interim periods thereafter using a prospective or retrospective method Will increase disclosures in Note 8 |
Business Combinations | 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. Acquisition transaction costs are recorded in selling, general and administrative expenses as incurred. |
Stock-based Compensation Expense | Compensation cost is based on the grant-date fair value and is recognized ratably over the requisite vesting period or to the date based on qualifying retirement eligibility, if earlier, and is primarily included in selling, general and administrative expenses. Stock Options The company’s practice is to grant stock options at fair market value. Options vest over 3-5 years with terms of 7-10 years, assuming continued employment with certain exceptions. Vesting of the option awards is contingent upon meeting certain service conditions. The fair value of most option grants is estimated using the Black-Scholes option pricing model. For option grants that require the achievement of both service and market conditions, a lattice model is used to estimate fair value. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. Expected volatility is calculated based on the historical volatility of the company’s stock. Historical data on exercise patterns is the basis for estimating the expected life of an option. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term which approximates the expected life assumed at the date of grant. The expected annual dividend rate is calculated by dividing the company’s annual dividend, based on the most recent quarterly dividend rate, by the closing stock price on the grant date. The compensation expense recognized for all stock-based awards is net of estimated forfeitures. Forfeitures are estimated based on an analysis of actual option forfeitures. Restricted Share/Unit Awards Awards of restricted units convert into an equivalent number of shares of common stock. The awards generally vest over 3-4 years, assuming continued employment, with some exceptions. Vesting of the awards is contingent upon meeting certain service conditions and may also be contingent upon meeting certain performance and/or market conditions. The fair market value of the award at the time of the grant is amortized to expense over the requisite service period of the award, which is generally the vesting period. Recipients of restricted units have no voting rights but are entitled to accrue dividend equivalents. The fair value of service- and performance-based restricted unit awards is determined based on the number of units granted and the market value of the company’s shares on the grant date. For awards with market-based vesting conditions, the company uses a lattice model to estimate the grant-date fair value of the award. |
Pension and Other Postretirement Benefit Plans | Defined Benefit Pension Plans Employees of a number of the company’s non-U.S. and certain U.S. subsidiaries participate in defined benefit pension plans covering substantially all full-time employees at those subsidiaries. Some of the plans are unfunded, as permitted under the plans and applicable laws. The company also maintains postretirement healthcare programs at several acquired businesses where certain employees are eligible to participate. The liabilities and costs associated with the company’s postretirement healthcare programs are generally funded on a self-insured and insured-premium basis and are not material for any period presented. The company recognizes the funded status of defined benefit pension and other postretirement benefit plans as an asset or liability. This amount is defined as the difference between the fair value of plan assets and the benefit obligation. The company is required to recognize as a component of other comprehensive items, net of tax, the actuarial gains/losses and prior service costs/credits that arise but were not previously required to be recognized as components of net periodic benefit cost. Other comprehensive items is adjusted as these amounts are later recognized in income as components of net periodic benefit cost. When a company with a pension plan is acquired, any excess of projected benefit obligation over the plan assets is recognized as a liability and any excess of plan assets over the projected benefit obligation is recognized as an asset. The recognition of a new liability or a new asset results in the elimination of (a) previously existing unrecognized net gain or loss and (b) unrecognized prior service cost or credits. The discount rate reflects the rate the company would have to pay to purchase high-quality investments that would provide cash sufficient to settle its current pension obligations. The discount rate is determined based on a range of factors, including the rates of return on high-quality, fixed-income corporate bonds and the related expected duration of the obligations or, in certain instances, the company has used a hypothetical portfolio of high quality instruments with maturities that mirror the benefit obligation in order to accurately estimate the discount rate relevant to a particular plan. The company utilizes a full yield curve approach in the estimation of these components by applying the specific spot-rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The expected long-term rate of return on plan assets reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for the benefits included in the projected benefit obligations. In determining the expected long-term rate of return on plan assets, the company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. In addition, the company may consult with and consider the opinions of financial and other professionals in developing appropriate return benchmarks. Asset management objectives include maintaining an adequate level of diversification to reduce interest rate and market risk and providing adequate liquidity to meet immediate and future benefit payment requirements. The expected rate of compensation increase reflects the long-term average rate of salary increases and is based on historic salary increase experience and management’s expectations of future salary increases. Domestic Pension Plan Assets The company’s overall objective is to manage the assets in a liability framework where investments are selected that are expected to have similar changes in fair value as the related liabilities will have upon changes in interest rates. The company invests in a portfolio of both return-seeking and liability-hedging assets, primarily through the use of institutional collective funds, to achieve long-term growth and to insulate the funded position from interest rate volatility. The strategic asset allocation uses a combination of risk controlled and index strategies in fixed income and global equities. The target allocations for the investments are approximately 10% to funds investing in U.S. equities, approximately 10% to funds investing in international equities and approximately 80% to funds investing in fixed income securities. The portfolio maintains enough liquidity at all times to meet the near-term benefit payments. Non-U.S. Pension Plan Assets The company maintains specific plan assets for many of the individual pension plans outside the U.S. The investment strategy of each plan has been uniquely established based on the country specific standards and characteristics of the plans. Several of the plans have contracts with insurance companies whereby the market risks of the benefit obligations are borne by the insurance companies. When assets are held directly in investments, generally the objective is to invest in a portfolio of diversified assets with a variety of fund managers. The investments may include equity funds, fixed income funds, hedge funds, multi-asset funds, alternative investments and derivative funds with the target asset allocations ranging from approximately 0% - 25% for equity funds, 30% - 90% for fixed income funds, 0% - 40% for multi-asset funds, 0% - 4% for alternative investments, 0% - 4% for real estate funds and 0% - 45% for funds holding derivatives. The derivatives held by the funds are primarily interest rate swaps intended to match the movements in the plan liabilities. Each plan maintains enough liquidity at all times to meet the near-term benefit payments. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Components of Inventories | The components of inventories are as follows: December 31, December 31, (In millions) 2023 2022 Raw materials $ 2,057 $ 2,405 Work in process 705 660 Finished goods 2,326 2,569 Inventories $ 5,088 $ 5,634 |
Schedule of Property, Plant and Equipment | Property, plant and equipment consists of the following: December 31, December 31, (In millions) 2023 2022 Land $ 458 $ 454 Buildings and improvements 3,593 3,153 Machinery, equipment and leasehold improvements 9,235 7,967 Construction in progress 2,238 2,695 Property, plant and equipment, at cost 15,524 14,269 Less: Accumulated depreciation and amortization 6,076 4,989 Property, plant and equipment, net $ 9,448 $ 9,280 |
Schedule of Acquisition-related Intangible Assets | Acquisition-related intangible assets are as follows: Balance at December 31, 2023 Balance at December 31, 2022 (In millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Definite lived: Customer relationships $ 22,762 $ (9,410) $ 13,352 $ 21,792 $ (8,330) $ 13,462 Product technology 5,894 (4,591) 1,303 5,882 (4,360) 1,522 Tradenames 1,634 (1,079) 555 1,635 (1,008) 627 Backlog 1,084 (859) 225 1,038 (442) 596 31,374 (15,939) 15,435 30,347 (14,140) 16,207 Indefinite lived: Tradenames 1,235 N/A 1,235 1,235 N/A 1,235 Acquisition-related intangible assets $ 32,609 $ (15,939) $ 16,670 $ 31,582 $ (14,140) $ 17,442 |
Schedule of Indefinite-Lived Acquisition-related Intangible Assets | Acquisition-related intangible assets are as follows: Balance at December 31, 2023 Balance at December 31, 2022 (In millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Definite lived: Customer relationships $ 22,762 $ (9,410) $ 13,352 $ 21,792 $ (8,330) $ 13,462 Product technology 5,894 (4,591) 1,303 5,882 (4,360) 1,522 Tradenames 1,634 (1,079) 555 1,635 (1,008) 627 Backlog 1,084 (859) 225 1,038 (442) 596 31,374 (15,939) 15,435 30,347 (14,140) 16,207 Indefinite lived: Tradenames 1,235 N/A 1,235 1,235 N/A 1,235 Acquisition-related intangible assets $ 32,609 $ (15,939) $ 16,670 $ 31,582 $ (14,140) $ 17,442 |
Schedule of Future Amortization Expense | The estimated future amortization expense of acquisition-related intangible assets with definite lives as of December 31, 2023 is as follows: (In millions) 2024 $ 1,931 2025 1,630 2026 1,460 2027 1,430 2028 1,398 2029 and thereafter 7,586 Estimated future amortization expense of definite-lived intangible assets $ 15,435 |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill by segment are as follows: (In millions) Life Sciences Analytical Specialty Laboratory Total Balance at December 31, 2021 $ 10,143 $ 5,043 $ 3,277 $ 23,461 $ 41,924 Acquisitions — 24 — — 24 Finalization of purchase price allocations for 2021 acquisitions 9 — — 168 177 Currency translation (6) (102) (186) (635) (929) Balance at December 31, 2022 10,146 4,965 3,091 22,994 41,196 Acquisitions — 31 1,741 627 2,399 Currency translation 5 55 91 274 425 Balance at December 31, 2023 $ 10,151 $ 5,051 $ 4,923 $ 23,895 $ 44,020 |
Recent Accounting Pronouncements | The following table provides a description of recent accounting pronouncements adopted and those standards not yet adopted with potential for a material impact on the company's financial statements or disclosures. Standard Description Effective date for Thermo Fisher and adoption approach Impact of adoption or other significant matters Standards recently adopted Accounting Standards Update (ASU) No. 2021-05, Leases (Topic 842): Lessors-Certain Leases with Variable Lease Payments Amended guidance to require lessors to classify leases as operating leases if they have certain variable lease payment structures and would have selling losses if they were classified as sales-type or direct financing leases. Third quarter of 2021 using a prospective method Not material ASU No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance New guidance 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. Fourth quarter of 2022 using a prospective method Not material ASU No. 2022-04, Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations New guidance 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 supplier finance programs for each period presented. Some aspects adopted in 2023 using a retrospective method and will adopt other aspects in 2024 using a prospective method Not material Standards not yet adopted ASU No. 2023-07, Segment Reporting (Topic 280): Improving Reportable Segment Disclosures Among other things, new guidance to disclose significant segment expenses and other items by reportable segment as well as information about the chief operating decision maker. 2024 annual report and interim periods thereafter using a retrospective method Will increase disclosures in Note 4 ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures Among other things, new guidance to disclose additional information about the tax rate reconciliation and income taxes paid. 2025 annual report and interim periods thereafter using a prospective or retrospective method Will increase disclosures in Note 8 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Components of Purchase Price | The components of the purchase price and net assets acquired are as follows: (In millions) The Binding Site CorEvitas Purchase price Cash paid $ 2,412 $ 730 Debt settled 307 184 Cash acquired (20) (4) $ 2,699 $ 910 Net assets acquired Definite-lived intangible assets Customer relationships $ 868 $ 260 Product technology 162 47 Tradenames 42 — Backlog — 46 Goodwill 1,741 627 Net tangible assets 174 (2) Deferred tax assets (liabilities) (288) (68) $ 2,699 $ 910 The components of the purchase price and net assets acquired for 2021 acquisitions are as follows: (In millions) PPD PeproTech European Viral Vector Business Mesa Biotech Lengnau biologics manufacturing facility Other Purchase price Cash paid $ 17,237 $ 1,946 $ 848 $ 421 $ 17 $ 298 Fair value of equity awards exchanged 43 — — — — — Fair value of contingent consideration — — — 65 1 117 Cash acquired (1,244) (83) (18) (14) — (12) $ 16,036 $ 1,863 $ 830 $ 472 $ 18 $ 403 Net assets acquired Current assets $ 2,477 $ 58 $ 39 $ 54 $ — $ 12 Property, plant and equipment 527 18 59 2 93 2 Definite-lived intangible assets: Customer relationships 6,257 510 302 — — 2 Product technology — 282 25 279 — 224 Tradenames 594 — — 2 — 2 Backlog 1,038 — — — — — Goodwill 13,949 1,198 600 237 18 198 Other assets 1,060 11 3 3 364 2 Contract liabilities (1,539) — (59) — — (1) Deferred tax assets (liabilities) (1,782) (192) (80) (72) — (27) Finance lease liabilities (90) — (24) — (82) — Debt assumed (4,299) — — — — — Other liabilities assumed (2,034) (22) (35) (33) (375) (11) Redeemable noncontrolling interest (122) — — — — — $ 16,036 $ 1,863 $ 830 $ 472 $ 18 $ 403 During 2022, we finalized the allocations of the purchase price for the Lengnau biologics manufacturing facility, PPD, Inc. and PeproTech, Inc., largely with respect to definite-lived intangible assets, property, plant and equipment, contract liabilities, equity method investments, asset retirement obligations, defined benefit pension plans, assumed contingent consideration and the related deferred taxes. The adjustments to the income statement recorded during 2022 were not material. |
Schedule of Pro Forma Information | The following unaudited pro forma information provides the effect of the company's 2021 acquisition of PPD as if the acquisition had occurred on January 1, 2020: Year Ended December 31, (In millions) 2021 Revenues $ 44,886 Net income attributable to Thermo Fisher Scientific Inc. $ 7,369 |
Revenue and Contract-related _2
Revenue and Contract-related Balances (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregated Revenues Revenues by type are as follows: (In millions) 2023 2022 2021 Revenues Consumables $ 17,597 $ 20,624 $ 22,608 Instruments 7,646 7,924 7,753 Services 17,614 16,367 8,850 Consolidated revenues $ 42,857 $ 44,915 $ 39,211 Revenues by geographic region based on customer location are as follows: (In millions) 2023 2022 2021 Revenues North America $ 22,764 $ 24,594 $ 19,659 Europe 10,741 10,762 11,134 Asia-Pacific 7,873 8,115 7,218 Other regions 1,479 1,444 1,200 Consolidated revenues $ 42,857 $ 44,915 $ 39,211 |
Schedule of 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: December 31, December 31, (In millions) 2023 2022 Current contract assets, net $ 1,443 $ 1,312 Noncurrent contract assets, net 4 7 Current contract liabilities 2,689 2,601 Noncurrent contract liabilities 1,499 1,179 |
Business Segment and Geograph_2
Business Segment and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Business Segment Information (In millions) 2023 2022 2021 Revenues Life Sciences Solutions $ 9,977 $ 13,532 $ 15,631 Analytical Instruments 7,263 6,624 6,069 Specialty Diagnostics 4,405 4,763 5,659 Laboratory Products and Biopharma Services 23,041 22,511 14,862 Eliminations (1,829) (2,515) (3,010) Consolidated revenues 42,857 44,915 39,211 Segment Income Life Sciences Solutions 3,420 5,582 7,817 Analytical Instruments 1,908 1,507 1,197 Specialty Diagnostics 1,124 1,024 1,280 Laboratory Products and Biopharma Services 3,358 2,872 1,844 Subtotal reportable segments 9,810 10,985 12,138 Cost of revenues adjustments (95) (46) (8) Selling, general and administrative expenses adjustments (59) (37) (144) Restructuring and other costs (459) (114) (197) Amortization of acquisition-related intangible assets (2,338) (2,395) (1,761) Consolidated operating income 6,859 8,393 10,028 Interest income 879 272 43 Interest expense (1,375) (726) (536) Other income/(expense) (65) (104) (694) Consolidated income before taxes $ 6,298 $ 7,835 $ 8,841 Depreciation Life Sciences Solutions $ 220 $ 214 $ 197 Analytical Instruments 93 83 83 Specialty Diagnostics 86 75 128 Laboratory Products and Biopharma Services 669 614 423 Consolidated depreciation $ 1,068 $ 986 $ 831 Cost of revenues charges 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 abandonments of product lines, and accelerated depreciation on fixed assets to estimated salvage value in connection with the consolidation of operations. Selling, general and administrative charges/credits included in the above table consist of significant transaction/integration costs (including reimbursement thereof) related to recent/terminated acquisitions, charges/credits for changes in estimates of contingent acquisition consideration, and charges related to product liability litigation. (In millions) 2023 2022 2021 Total assets Life Sciences Solutions $ 20,191 $ 21,848 $ 22,751 Analytical Instruments 10,247 10,019 9,692 Specialty Diagnostics 8,636 5,542 6,010 Laboratory Products and Biopharma Services 51,091 51,281 52,639 Corporate/other (a) 8,561 8,464 4,031 Consolidated total assets $ 98,726 $ 97,154 $ 95,123 Capital expenditures Life Sciences Solutions $ 178 $ 490 $ 810 Analytical Instruments 87 140 79 Specialty Diagnostics 121 112 167 Laboratory Products and Biopharma Services 1,013 1,403 1,327 Corporate/other 80 98 140 Consolidated capital expenditures $ 1,479 $ 2,243 $ 2,523 (a) Corporate assets consist primarily of cash and cash equivalents and property and equipment at the company's corporate offices. |
Schedule of Revenue by Geographical Areas | Geographical Information (In millions) 2023 2022 2021 Revenues (b) United States $ 22,013 $ 23,820 $ 18,907 Other 20,844 21,095 20,304 Consolidated revenues $ 42,857 $ 44,915 $ 39,211 Long-lived Assets (c) United States $ 6,352 $ 6,308 $ 5,578 Other 4,652 4,565 4,286 Consolidated long-lived assets $ 11,004 $ 10,873 $ 9,864 (b) Revenues are attributed to countries based on customer location. (c) Includes property, plant and equipment, net, and operating lease ROU assets. |
Stock-based Compensation Expe_2
Stock-based Compensation Expense (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Weighted Average Assumptions used in the Black-Scholes Option Pricing Model | The weighted average assumptions used in the Black-Scholes option pricing model are as follows: 2023 2022 2021 Expected stock price volatility 25 % 26 % 26 % Risk free interest rate 4.2 % 2.0 % 0.8 % Expected life of options (years) 4.7 4.7 4.3 Expected annual dividend 0.3 % 0.2 % 0.2 % |
Summary of the Company's Option Activity | A summary of the company’s option activity for the year ended December 31, 2023 is presented below: Shares Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic Outstanding at December 31, 2022 5.6 $ 359.27 Granted 0.7 546.94 Exercised (1.0) 218.82 Canceled/expired (0.3) 543.25 Outstanding at December 31, 2023 5.0 $ 401.30 3.9 $ 714 Vested and unvested expected to vest at December 31, 2023 4.8 $ 396.20 3.9 $ 712 Exercisable at December 31, 2023 2.8 $ 316.88 2.7 $ 635 |
Summary of the Company's Restricted Unit Activity | A summary of the company’s restricted unit activity for the year ended December 31, 2023 is presented below: Units Weighted Unvested at December 31, 2022 0.7 $ 495.39 Granted 0.4 545.73 Vested (0.4) 480.45 Forfeited (0.1) 528.59 Unvested at December 31, 2023 0.6 $ 533.65 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Reconciliation of Benefit Obligations and Plan Assets | The following table provides a reconciliation of benefit obligations and plan assets of the company’s domestic and non-U.S. pension plans: Domestic pension benefits Non-U.S. pension benefits (In millions) 2023 2022 2023 2022 Accumulated benefit obligation $ 1,005 $ 995 $ 1,166 $ 1,016 Change in projected benefit obligations Projected benefit obligation at beginning of year $ 995 $ 1,260 $ 1,069 $ 1,552 Acquisitions — — 15 51 Service costs — — 26 34 Interest costs 47 27 42 20 Settlements — — (37) (31) Plan participants' contributions — — 9 9 Actuarial (gains) losses 42 (210) 65 (447) Benefits paid (79) (82) (25) (19) Currency translation and other — — 57 (100) Projected benefit obligation at end of year $ 1,005 $ 995 $ 1,221 $ 1,069 Change in fair value of plan assets Fair value of plan assets at beginning of year $ 937 $ 1,226 $ 868 $ 1,302 Acquisitions — — 15 14 Actual return on plan assets 84 (212) 29 (347) Employer contributions 5 5 36 36 Settlements — — (37) (31) Plan participants' contributions — — 9 9 Benefits paid (79) (82) (25) (19) Currency translation and other — — 49 (96) Fair value of plan assets at end of year $ 947 $ 937 $ 944 $ 868 Funded status $ (58) $ (58) $ (277) $ (201) Amounts recognized in balance sheet Noncurrent assets $ — $ — $ 65 $ 81 Current liability (6) (6) (11) (11) Noncurrent liabilities (52) (52) (331) (271) Net amount recognized $ (58) $ (58) $ (277) $ (201) Amounts recognized in accumulated other comprehensive items Net actuarial loss $ 217 $ 200 $ 151 $ 74 Prior service credits — — (5) (4) Net amount recognized $ 217 $ 200 $ 146 $ 70 |
Schedule of Actuarial Assumptions | The actuarial assumptions used to compute the funded status for the plans are based upon information available as of December 31, 2023 and 2022 and are as follows: Domestic pension benefits Non-U.S. pension benefits 2023 2022 2023 2022 Weighted average assumptions used to determine projected benefit obligations Discount rate for determining benefit obligation 4.82 % 5.01 % 3.47 % 3.91 % Interest crediting rate for cash balance plans 4.76 % 4.96 % 2.06 % 2.19 % Average rate of increase in employee compensation N/A N/A 2.64 % 2.78 % The actuarial assumptions used to compute the net periodic pension benefit cost (income) are based upon information available as of the beginning of the year, as presented in the following table: Domestic pension benefits Non-U.S. pension benefits 2023 2022 2021 2023 2022 2021 Weighted average assumptions used to determine net benefit cost (income) Discount rate - service cost N/A N/A N/A 3.62 % 1.00 % 0.65 % Discount rate - interest cost 5.01 % 2.70 % 2.33 % 3.95 % 1.36 % 0.80 % Average rate of increase in employee compensation N/A N/A N/A 2.77 % 2.73 % 2.30 % Expected long-term rate of return on assets 6.25 % 4.75 % 4.25 % 4.33 % 2.33 % 2.02 % |
Projected Benefit Obligation and Fair Value of Plan Assets | The projected benefit obligation and fair value of plan assets for the company’s qualified and non-qualified pension plans with projected benefit obligations in excess of plan assets are as follows: Pension plans (In millions) 2023 2022 Pension plans with projected benefit obligations in excess of plan assets Projected benefit obligation $ 1,752 $ 1,636 Fair value of plan assets 1,352 1,296 |
Accumulated Benefit Obligation and Fair Value of Plan Assets | The accumulated benefit obligation and fair value of plan assets for the company's qualified and non-qualified pension plans with accumulated benefit obligations in excess of plan assets are as follows: Pension plans (In millions) 2023 2022 Pension plans with accumulated benefit obligations in excess of plan assets Accumulated benefit obligation $ 1,695 $ 1,583 Fair value of plan assets 1,349 1,294 |
Schedule of Net Benefit Costs | The net periodic pension benefit cost (income) includes the following components: Domestic pension benefits Non-U.S. pension benefits (In millions) 2023 2022 2021 2023 2022 2021 Components of net benefit cost (income) Service cost $ — $ — $ — $ 26 $ 34 $ 27 Interest cost on benefit obligation 47 27 23 42 20 11 Expected return on plan assets (59) (45) (40) (37) (26) (19) Amortization of actuarial net loss — 4 7 2 7 12 Amortization of prior service cost (benefit) — — — (1) (1) — Settlement/curtailment loss (gain) — — — 1 (2) — Net periodic benefit cost (income) $ (12) $ (14) $ (10) $ 33 $ 32 $ 31 |
Schedule of Estimated Future Benefit Payments | Estimated future benefit payments during the next five years and in the aggregate for the five fiscal years thereafter, are as follows: (In millions) Domestic pension benefits Non-U.S. pension benefits Expected benefit payments 2024 $ 81 $ 52 2025 79 55 2026 80 59 2027 79 60 2028 79 65 2029-2033 374 354 |
Schedule of Fair Value of the Company's Plan Assets | The fair values of the company’s plan assets at December 31, 2023 and 2022, by asset category are as follows: December 31, Quoted Significant Significant Not subject to leveling (a) (In millions) 2023 (Level 1) (Level 2) (Level 3) Domestic pension plan assets U.S. equity funds $ 93 $ — $ — $ — $ 93 International equity funds 93 — — — 93 Fixed income funds 739 — — — 739 Money market funds 22 — — — 22 Total domestic pension plans $ 947 $ — $ — $ — $ 947 Non-U.S. pension plan assets Equity funds $ 7 $ — $ — $ — $ 7 Fixed income funds 346 9 — — 337 Multi-asset funds 66 — — — 66 Derivative funds 184 — — — 184 Alternative investments 1 — — — 1 Insurance contracts 333 — 333 — — Real estate funds 1 — — — 1 Cash / money market funds 6 4 — — 2 Total non-U.S. pension plans $ 944 $ 13 $ 333 $ — $ 598 (a) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. December 31, Quoted Significant Significant Not subject to leveling (a) (In millions) 2022 (Level 1) (Level 2) (Level 3) Domestic pension plan assets U.S. equity funds $ 89 $ — $ — $ — $ 89 International equity funds 91 — — — 91 Fixed income funds 739 — — — 739 Money market funds 18 — — — 18 Total domestic pension plans $ 937 $ — $ — $ — $ 937 Non-U.S. pension plan assets Equity funds $ 8 $ — $ — $ — $ 8 Fixed income funds 299 — — — 299 Multi-asset funds 56 — — — 56 Derivative funds 190 — — — 190 Insurance contracts 306 — 306 — — Cash / money market funds 9 4 — — 5 Total non-U.S. pension plans $ 868 $ 4 $ 306 $ — $ 558 (a) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Provision for Income Taxes | The components of income before provision for income taxes are as follows: (In millions) 2023 2022 2021 U.S. $ 2,431 $ 3,859 $ 3,340 Non-U.S. 3,867 3,976 5,501 Income before income taxes $ 6,298 $ 7,835 $ 8,841 |
Components of the Provision for Income Taxes | The components of the provision for income taxes are as follows: (In millions) 2023 2022 2021 Current income tax provision Federal $ 228 $ 813 $ 446 Non-U.S. 1,206 633 1,148 State 150 254 160 1,584 1,700 1,754 Deferred income tax provision (benefit) Federal $ (551) $ (611) $ (227) Non-U.S. (647) (314) (399) State (102) (72) (19) (1,300) (997) (645) Provision for income taxes $ 284 $ 703 $ 1,109 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes in the accompanying statement of income differs from the provision calculated by applying the statutory federal income tax rate to income before income taxes due to the following: (In millions) 2023 2022 2021 Statutory federal income tax rate 21 % 21 % 21 % Provision for income taxes at statutory rate $ 1,323 $ 1,645 $ 1,857 Increases (decreases) resulting from: Foreign rate differential (223) (329) (255) Income tax credits (276) (202) (315) Global intangible low-taxed income 113 96 76 Foreign-derived intangible income (108) (149) (119) Excess tax benefits from stock options and restricted stock units (69) (80) (124) Provision for (reversal of) tax reserves, net 13 (544) (17) Intra-entity transfers (233) (18) (284) Foreign exchange loss on inter-company debt refinancing (112) — — Provision for (reversal of) valuation allowances, net (32) 344 36 Withholding taxes 33 84 164 Tax return reassessments and settlements (187) (210) 1 State income taxes, net of federal tax 70 111 82 Other, net (28) (45) 7 Provision for income taxes $ 284 $ 703 $ 1,109 |
Schedule of Deferred Tax Asset (Liability) and Changes in Valuation Allowance | Net deferred tax asset/(liability) in the accompanying balance sheet consists of the following: (In millions) 2023 2022 Deferred tax asset/(liability) Depreciation and amortization $ (4,286) $ (4,277) Net operating loss and credit carryforwards 2,385 1,951 Reserves and accruals 157 140 Accrued compensation 299 259 Inventory basis difference 275 364 Deferred interest 753 445 Research and development and other capitalized costs 380 220 Unrealized (gains) losses on hedging instruments (66) (199) Other, net 329 435 Deferred tax assets/(liabilities), net before valuation allowance 226 (662) Less: Valuation allowance 1,317 1,322 Deferred tax assets/(liabilities), net $ (1,091) $ (1,984) The company estimates the degree to which tax assets, losses and credit carryforwards will result in a benefit based on expected profitability by tax jurisdiction and provides a valuation allowance for tax assets and loss and credit carryforwards that it believes will more likely than not expire unutilized. At December 31, 2023, all of the company’s valuation allowance relates to deferred tax assets, primarily net operating losses and disallowed interest expense carryforward, for which any subsequently recognized tax benefits will reduce income tax expense. The changes in the valuation allowance are as follows: Year Ended December 31, (In millions) 2023 2022 2021 Beginning balance $ 1,322 $ 968 $ 933 Additions (reductions) charged to income tax provision, net (32) 344 24 Additions due to acquisitions 4 14 30 Currency translation and other 23 (4) (19) Ending balance $ 1,317 $ 1,322 $ 968 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: (In millions) 2023 2022 2021 Beginning balance $ 572 $ 1,124 $ 1,091 Additions due to acquisitions — 15 26 Additions for tax positions of current year 4 104 32 Additions for tax positions of prior years 34 24 60 Reductions for tax positions of prior years (43) (659) (5) Closure of tax years (6) (4) (27) Settlements (21) (32) (53) Ending balance $ 540 $ 572 $ 1,124 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | (In millions except per share amounts) 2023 2022 2021 Net income attributable to Thermo Fisher Scientific Inc. $ 5,995 $ 6,950 $ 7,725 Basic weighted average shares 386 392 394 Plus effect of: stock options and restricted stock units 2 2 3 Diluted weighted average shares 388 394 397 Basic earnings per share $ 15.52 $ 17.75 $ 19.62 Diluted earnings per share $ 15.45 $ 17.63 $ 19.46 Antidilutive stock options excluded from diluted weighted average shares 2 2 1 |
Debt and Other Financing Arra_2
Debt and Other Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Effective interest rate at December 31, December 31, December 31, (Dollars in millions) 2023 2023 2022 Commercial Paper $ — $ 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 0.797% 2-Year Senior Notes, Due 10/18/2023 — 1,350 Floating Rate (EURIBOR + 0.20%) 2-Year Senior Notes Due 11/18/2023 (euro-denominated) — 1,819 0.000% 2-Year Senior Notes Due 11/18/2023 (euro-denominated) — 589 0.75% 8-Year Senior Notes, Due 9/12/2024 (euro-denominated) 0.93 % 1,104 1,071 Floating Rate (SOFR + 0.53%) 3-Year Senior Notes, Due 10/18/2024 — 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 % 883 857 2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) 2.10 % 706 686 0.853% 3-Year Senior Notes, Due 10/20/2025 (yen-denominated) 1.05 % 158 170 0.000% 4-Year Senior Notes Due 11/18/2025 (euro-denominated) 0.15 % 607 589 3.20% 3-Year Senior Notes, Due 1/21/2026 (euro-denominated) 3.39 % 552 535 1.40% 8.5-Year Senior Notes, Due 1/23/2026 (euro-denominated) 1.53 % 773 749 4.953% 3-Year Senior Notes, Due 8/10/2026 5.19 % 600 — 5.000% 3-Year Senior Notes due 12/5/2026 5.00 % 1,000 — 1.45% 10-Year Senior Notes, Due 3/16/2027 (euro-denominated) 1.65 % 552 535 1.75% 7-Year Senior Notes, Due 4/15/2027 (euro-denominated) 1.97 % 662 642 1.054% 5-Year Senior Notes, Due 10/20/2027 (yen-denominated) 1.18 % 205 221 4.80% 5-Year Senior Notes, Due 11/21/2027 5.00 % 600 600 Effective interest rate at December 31, December 31, December 31, (Dollars in millions) 2023 2023 2022 0.50% 8.5-Year Senior Notes, Due 3/1/2028 (euro-denominated) 0.77 % 883 857 0.77% 5-Year Senior Notes, Due 9/6/2028 (yen-denominated) 0.90 % 206 — 1.375% 12-Year Senior Notes, Due 9/12/2028 (euro-denominated) 1.46 % 662 642 1.750% 7-Year Senior Notes, Due 10/15/2028 1.89 % 700 700 5.000% 5-Year Senior Notes due 1/31/2029 5.00 % 1,000 — 1.95% 12-Year Senior Notes, Due 7/24/2029 (euro-denominated) 2.08 % 773 749 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 4.977% 7-Year Senior Notes, Due 8/10/2030 5.12 % 750 — 0.80% 9-Year Senior Notes, Due 10/18/2030 (euro-denominated) 0.89 % 1,932 1,873 0.875% 12-Year Senior Notes, Due 10/1/2031 (euro-denominated) 1.13 % 993 963 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 % 662 642 1.49% 10-Year Senior Notes, Due 10/20/2032 (yen-denominated) 1.60 % 45 48 4.95% 10-Year Senior Notes, Due 11/21/2032 5.09 % 600 600 5.086% 10-Year Senior Notes, Due 8/10/2033 5.20 % 1,000 — 1.125% 12-Year Senior Notes, Due 10/18/2033 (euro-denominated) 1.20 % 1,656 1,606 5.200% 10-Year Senior Notes due 1/31/2034 5.20 % 500 — 3.65% 12-Year Senior Notes, Due 11/21/2034 (euro-denominated) 3.76 % 828 803 1.50% 12-Year Senior Notes, due 9/6/2035 (yen-denominated) 1.58 % 152 — 2.875% 20-Year Senior Notes, Due 7/24/2037 (euro-denominated) 2.94 % 773 749 1.50% 20-Year Senior Notes, Due 10/1/2039 (euro-denominated) 1.73 % 993 963 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 % 1,380 1,339 2.069% 20-Year Senior Notes, Due 10/20/2042 (yen-denominated) 2.13 % 104 111 5.404% 20-Year Senior Notes, due 8/10/2043 5.50 % 600 — 2.02% 20-Year Senior Notes, due 9/6/2043 (yen-denominated) 2.06 % 206 — 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 % 1,104 1,071 2.00% 30-Year Senior Notes, Due 10/18/2051 (euro-denominated) 2.07 % 828 803 2.382% 30-Year Senior Notes, Due 10/18/2052 (yen-denominated) 2.43 % 236 254 Other 77 79 Total borrowings at par value 35,028 34,561 Unamortized discount (113) (112) Unamortized debt issuance costs (188) (171) Total borrowings at carrying value 34,727 34,278 Finance lease liabilities 190 210 Less: Short-term obligations and current maturities 3,609 5,579 Long-term obligations $ 31,308 $ 28,909 SOFR - Secured Overnight Financing Rate EURIBOR - Euro Interbank Offered Rate |
Schedule of Annual Repayment Requirements for Debt Obligations | As of December 31, 2023, the annual repayment requirements for debt obligations are as follows: (In millions) Borrowings Finance Lease Liabilities 2024 $ 3,604 $ 5 2025 2,356 13 2026 2,925 12 2027 2,020 10 2028 2,451 8 2029 and thereafter 21,672 142 $ 35,028 $ 190 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Operating Leases | As a lessee, the consolidated financial statements include the following relating to operating leases: (Dollars in millions) 2023 2022 2021 Statement of income Operating lease costs $ 355 $ 351 $ 254 Variable lease costs 115 109 66 Statement of cash flows Cash used in operating activities for payments of amounts included in the measurement of operating lease liabilities $ 410 $ 289 $ 288 Operating lease ROU assets obtained in exchange for new operating lease liabilities 234 430 293 Balance sheet ROU assets - included in other assets $ 1,556 $ 1,593 Operating lease liabilities - included in other accrued expenses 263 272 Operating lease liabilities - included in other long-term liabilities 1,244 1,313 Weighted average at end of year Remaining operating lease term 9.2 years 9.4 years Discount rate 4.0 % 3.2 % |
Schedule of Future Payments of Operating Lease Liabilities | As of December 31, 2023, future payments of operating lease liabilities are as follows: (In millions) 2024 $ 294 2025 288 2026 242 2027 172 2028 131 2029 and thereafter 723 Total lease payments 1,850 Less: imputed interest 343 Total operating lease liability $ 1,507 |
Comprehensive Income and Shar_2
Comprehensive Income and Shareholders Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Change in Each Component of Accumulated Other Comprehensive Items | Changes in each component of accumulated other comprehensive items, net of tax are as follows: (In millions) Currency Unrealized Pension and Total Balance at December 31, 2022 $ (2,880) $ (33) $ (186) $ (3,099) Other comprehensive income/(loss) before reclassifications (69) — (69) (138) Amounts reclassified from accumulated other comprehensive income/(loss) 8 5 — 13 Net other comprehensive income/(loss) (61) 5 (69) (125) Balance at December 31, 2023 $ (2,941) $ (28) $ (255) $ (3,224) |
Fair Value Measurements and F_2
Fair Value Measurements and Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value | The following tables present information about the company’s financial assets and liabilities measured at fair value on a recurring basis: December 31, Quoted Significant Significant (In millions) 2023 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 5,021 $ 5,021 $ — $ — Bank time deposits 3 3 — — Investments 20 20 — — Insurance contracts 210 — 210 — Derivative contracts 8 — 8 — Total assets $ 5,262 $ 5,044 $ 218 $ — Liabilities Derivative contracts $ 290 $ — $ 290 $ — Contingent consideration 87 — — 87 Total liabilities $ 377 $ — $ 290 $ 87 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. (In millions) 2023 2022 Contingent consideration Beginning balance $ 174 $ 317 Acquisitions (including assumed balances) 1 (18) Payments (63) (66) Changes in fair value included in earnings (25) (59) Ending balance $ 87 $ 174 |
Schedule of Aggregate Notional Value of Outstanding Derivative Contracts | The following table provides the aggregate notional value of outstanding derivative contracts. December 31, December 31, (In millions) 2023 2022 Cross-currency interest rate swaps designated as net investment hedge - euro $ 1,000 $ 900 Cross-currency interest rate swaps designated as net investment hedge - Japanese yen 4,650 1,200 Cross-currency interest rate swaps designated as net investment hedge - Swiss franc 2,500 — Currency exchange contracts 1,567 2,434 |
Schedule of 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 December 31, December 31, December 31, December 31, (In millions) 2023 2022 2023 2022 Derivatives designated as hedging instruments Cross-currency interest rate swaps (a) $ 5 $ 77 $ 287 $ 85 Derivatives not designated as hedging instruments Currency exchange contracts (b) 3 2 3 16 Total derivatives $ 8 $ 79 $ 290 $ 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) |
Schedule of Derivative Instruments, Gain (Loss) Recognized | Gain (loss) recognized (In millions) 2023 2022 2021 Fair value hedging relationships Cross-currency interest rate swaps Hedged long-term obligations - included in other income/(expense) $ — $ 77 $ — Derivatives designated as hedging instruments - included in other income/(expense) — (81) — Interest rate swaps Hedged long-term obligations - included in other income/(expense) — — 25 Derivatives designated as hedging instruments - included in other income/(expense) — — (3) Derivatives designated as cash flow hedges Interest rate swaps Amount reclassified from accumulated other comprehensive items to interest expense (4) — — Amount reclassified from accumulated other comprehensive items to other income/(expense) (3) (3) (73) Financial instruments designated as net investment hedges Foreign currency-denominated debt and other payables Included in currency translation adjustment within other comprehensive items (356) 695 922 Cross-currency interest rate swaps Included in currency translation adjustment within other comprehensive items (222) 52 71 Included in interest expense 120 19 8 Derivatives not designated as hedging instruments Currency exchange contracts Included in cost of product revenues 1 6 12 Included in other income/(expense) (29) 102 162 |
Schedule of Carrying Value and Fair Value of the Company's Debt Instruments | The carrying value and fair value of the company’s debt instruments are as follows: December 31, 2023 December 31, 2022 Carrying Fair Carrying Fair (In millions) value value value value Senior notes $ 34,650 $ 32,191 $ 33,889 $ 29,901 Commercial paper — — 310 310 Other 77 77 79 79 $ 34,727 $ 32,268 $ 34,278 $ 30,290 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Cash Flow Disclosures | (In millions) 2023 2022 2021 Cash paid for: Interest $ 1,385 $ 667 $ 555 Income taxes 1,482 1,234 2,182 Non-cash investing and financing activities Acquired but unpaid property, plant and equipment 296 393 379 Fair value of equity awards exchanged — — 43 Fair value of acquisition contingent consideration — — 183 Finance lease ROU assets obtained in exchange for new finance lease liabilities 2 33 15 Declared but unpaid dividends 137 119 104 Issuance of stock upon vesting of restricted stock units 234 241 265 Excise tax from stock repurchases 28 — — |
Schedule of Cash, Cash Equivalents and Restricted Cash | Cash, cash equivalents and restricted cash is included in the consolidated balance sheet as follows: December 31, December 31, (In millions) 2023 2022 Cash and cash equivalents $ 8,077 $ 8,524 Restricted cash included in other current assets 6 12 Restricted cash included in other assets 14 1 Cash, cash equivalents and restricted cash $ 8,097 $ 8,537 |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Other Costs by Segment | Restructuring and other costs by segment are as follows: (In millions) 2023 2022 2021 Life Sciences Solutions $ 105 $ 30 $ 129 Analytical Instruments 33 1 6 Specialty Diagnostics 11 68 18 Laboratory Products and Biopharma Services 295 12 35 Corporate 15 3 9 $ 459 $ 114 $ 197 |
Schedule of the Company's Accrued Restructuring Balance | The following table summarizes the changes in the company’s accrued restructuring balance. Other amounts reported as restructuring and other costs (In millions) Total (a) Balance at December 31, 2020 $ 21 Net restructuring charges incurred in 2021 (b) 37 Payments (40) Currency translation (1) Balance at December 31, 2021 17 Net restructuring charges incurred in 2022 (c) 68 Payments (44) Balance at December 31, 2022 41 Net restructuring charges incurred in 2023 (d) (e) 194 Payments (175) Balance at December 31, 2023 $ 60 (a) The movements in the restructuring liability principally consist of severance and other costs associated with facility consolidations. (b) Excludes $160 million of charges, principally $122 million for impairments of an acquired technology asset and a tradename asset in the Life Sciences Solutions and Laboratory Products and Biopharma Services segments, principally resulting from a reduction in expected cash flows, and $35 million of charges for compensation contractually due to employees of acquired businesses at the date of acquisition in the Life Sciences Solutions and Laboratory Products and Biopharma Services segments. (c) Excludes $46 million of net charges, primarily charges for impairment of long-lived assets in the Specialty Diagnostic segment. (d) Excludes $264 million of net charges, principally $126 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 $19 million of net charges for pre-acquisition litigation and other matters in the Laboratory Products and Biopharma Services segment. (e) Excludes $93 million of charges in the Laboratory Products and Biopharma Services segment for impairments of a disposal group that was held for sale beginning in the third quarter of 2023. The loss attributable to Thermo Fisher Scientific Inc. was reduced by $46 million attributable to a noncontrolling interest. |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Additional Accounting Policy and Balance Sheet Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Noncontrolling Interest [Line Items] | |||
Equity method investments | $ 489 | $ 369 | |
Fair value of investments | 5 | 7 | |
Cost method investments | 12 | 55 | |
Investments measured at NAV | 28 | 22 | |
Currency transaction gains (losses) | $ (67) | $ 62 | $ 25 |
PPD-SNBL K.K. | |||
Noncontrolling Interest [Line Items] | |||
Ownership percentage, parent | 60% | ||
Ownership interest, noncontrolling owners | 40% |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Oct. 02, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Raw materials | $ 2,057 | $ 2,405 | |||
Work in process | 705 | 660 | |||
Finished goods | 2,326 | 2,569 | |||
Inventories | 5,088 | 5,634 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Inventories | 5,088 | 5,634 | |||
Product revenues | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of goods and services sold | $ (13,168) | $ (14,247) | $ (13,594) | ||
Change in Accounting Principle, Other | |||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Inventories | $ 33 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Percentage of LIFO inventory | 5% | ||||
Inventories | 33 | ||||
Change in Accounting Principle, Other | Product revenues | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of goods and services sold | 33 | ||||
Change in Accounting Principle, Other | Laboratory Products and Biopharma Services | |||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Inventories | 20 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Inventories | 20 | ||||
Change in Accounting Principle, Other | Laboratory Products and Biopharma Services | Product revenues | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of goods and services sold | 20 | ||||
Change in Accounting Principle, Other | Specialty Diagnostics | |||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Inventories | 13 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Inventories | 13 | ||||
Change in Accounting Principle, Other | Specialty Diagnostics | Product revenues | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of goods and services sold | $ 13 |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 15,524 | $ 14,269 |
Less: Accumulated depreciation and amortization | 6,076 | 4,989 |
Property, plant and equipment, net | 9,448 | 9,280 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 458 | 454 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 3,593 | 3,153 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 25 years | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 40 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 2,238 | 2,695 |
Machinery, equipment and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 9,235 | $ 7,967 |
Machinery and Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 3 years | |
Machinery and Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 10 years |
Nature of Operations and Summ_7
Nature of Operations and Summary of Significant Accounting Policies - Acquisition-related Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross | $ 31,374 | $ 30,347 |
Accumulated Amortization | (15,939) | (14,140) |
Estimated future amortization expense of definite-lived intangible assets | 15,435 | 16,207 |
Acquisition-related intangible assets | 32,609 | 31,582 |
Acquisition-related intangible assets | 16,670 | 17,442 |
Finite-Lived Intangible Assets, Net, Future Amortization Expense [Abstract] | ||
2024 | 1,931 | |
2025 | 1,630 | |
2026 | 1,460 | |
2027 | 1,430 | |
2028 | 1,398 | |
2029 and thereafter | 7,586 | |
Estimated future amortization expense of definite-lived intangible assets | 15,435 | 16,207 |
Other intangible assets | $ 37 | 36 |
Maximum | ||
Intangible Assets [Line Items] | ||
Estimated useful life | 20 years | |
Tradenames | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 1,235 | 1,235 |
Customer relationships | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross | 22,762 | 21,792 |
Accumulated Amortization | (9,410) | (8,330) |
Estimated future amortization expense of definite-lived intangible assets | 13,352 | 13,462 |
Finite-Lived Intangible Assets, Net, Future Amortization Expense [Abstract] | ||
Estimated future amortization expense of definite-lived intangible assets | 13,352 | 13,462 |
Product technology | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross | 5,894 | 5,882 |
Accumulated Amortization | (4,591) | (4,360) |
Estimated future amortization expense of definite-lived intangible assets | 1,303 | 1,522 |
Finite-Lived Intangible Assets, Net, Future Amortization Expense [Abstract] | ||
Estimated future amortization expense of definite-lived intangible assets | 1,303 | 1,522 |
Tradenames | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross | 1,634 | 1,635 |
Accumulated Amortization | (1,079) | (1,008) |
Estimated future amortization expense of definite-lived intangible assets | 555 | 627 |
Finite-Lived Intangible Assets, Net, Future Amortization Expense [Abstract] | ||
Estimated future amortization expense of definite-lived intangible assets | 555 | 627 |
Backlog | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross | 1,084 | 1,038 |
Accumulated Amortization | (859) | (442) |
Estimated future amortization expense of definite-lived intangible assets | 225 | 596 |
Finite-Lived Intangible Assets, Net, Future Amortization Expense [Abstract] | ||
Estimated future amortization expense of definite-lived intangible assets | $ 225 | $ 596 |
Nature of Operations and Summ_8
Nature of Operations and Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 41,196 | $ 41,924 |
Acquisitions | 2,399 | 24 |
Finalization of purchase price allocations for 2022 acquisitions | 177 | |
Currency translation | 425 | (929) |
Ending balance | 44,020 | 41,196 |
Life Sciences Solutions | ||
Goodwill [Roll Forward] | ||
Beginning balance | 10,146 | 10,143 |
Acquisitions | 0 | 0 |
Finalization of purchase price allocations for 2022 acquisitions | 9 | |
Currency translation | 5 | (6) |
Ending balance | 10,151 | 10,146 |
Analytical Instruments | ||
Goodwill [Roll Forward] | ||
Beginning balance | 4,965 | 5,043 |
Acquisitions | 31 | 24 |
Finalization of purchase price allocations for 2022 acquisitions | 0 | |
Currency translation | 55 | (102) |
Ending balance | 5,051 | 4,965 |
Specialty Diagnostics | ||
Goodwill [Roll Forward] | ||
Beginning balance | 3,091 | 3,277 |
Acquisitions | 1,741 | 0 |
Finalization of purchase price allocations for 2022 acquisitions | 0 | |
Currency translation | 91 | (186) |
Ending balance | 4,923 | 3,091 |
Laboratory Products and Biopharma Services | ||
Goodwill [Roll Forward] | ||
Beginning balance | 22,994 | 23,461 |
Acquisitions | 627 | 0 |
Finalization of purchase price allocations for 2022 acquisitions | 168 | |
Currency translation | 274 | (635) |
Ending balance | $ 23,895 | $ 22,994 |
Nature of Operations and Summ_9
Nature of Operations and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable | $ 8,221 | $ 8,115 |
Retained earnings | $ 47,364 | $ 41,910 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||||
Oct. 17, 2023 | Dec. 31, 2023 | Dec. 31, 2021 | Dec. 30, 2021 | Dec. 08, 2021 | Sep. 30, 2021 | Feb. 25, 2021 | Jan. 15, 2021 | |
Business Acquisition [Line Items] | ||||||||
Weighted-average amortization period | 17 years | 14 years | ||||||
European Viral Vector Business | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill recorded | $ 0 | |||||||
Mesa Biotech | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill recorded | $ 0 | |||||||
Lengnau biologics manufacturing facility | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill recorded | $ 0 | |||||||
PPD | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill recorded | $ 0 | |||||||
Net income attributable to Thermo Fisher Scientific Inc. | $ 7,369 | |||||||
Pro forma revenues | 378 | |||||||
Pro forma losses | (60) | |||||||
PPD | Non-recurring Pro Forma Adjustments, Transaction Costs | ||||||||
Business Acquisition [Line Items] | ||||||||
Net income attributable to Thermo Fisher Scientific Inc. | $ 312 | |||||||
PeproTech | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill recorded | $ 0 | |||||||
Olink Holding AB | ||||||||
Business Acquisition [Line Items] | ||||||||
Expected price per share (dollars per share) | $ 26 | |||||||
Expected acquisition price | $ 3,100 | |||||||
Customer relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted-average amortization period | 18 years | 17 years | ||||||
Product technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted-average amortization period | 14 years | 11 years | ||||||
Tradenames | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted-average amortization period | 15 years | 7 years | ||||||
Backlog | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted-average amortization period | 13 years | 3 years |
Acquisitions - Schedule of Comp
Acquisitions - Schedule of Components of Purchase Price (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||||
Aug. 14, 2023 | Jan. 03, 2023 | Dec. 30, 2021 | Dec. 08, 2021 | Sep. 30, 2021 | Feb. 25, 2021 | Jan. 15, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Purchase Price | ||||||||||
Fair value of equity awards exchanged | $ 0 | $ 0 | $ 43 | |||||||
Fair value of contingent consideration | $ 0 | 0 | 183 | |||||||
The Binding Site Group | ||||||||||
Purchase Price | ||||||||||
Cash paid | $ 2,412 | |||||||||
Debt settled | 307 | |||||||||
Cash acquired | 20 | |||||||||
Total purchase price | 2,699 | |||||||||
Net Assets Acquired [Abstract] | ||||||||||
Goodwill | 1,741 | |||||||||
Net tangible assets | 174 | |||||||||
Deferred tax assets (liabilities) | (288) | |||||||||
Total net assets acquired | 2,699 | |||||||||
The Binding Site Group | Customer relationships | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 868 | |||||||||
The Binding Site Group | Tradenames | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 42 | |||||||||
The Binding Site Group | Backlog | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 0 | |||||||||
The Binding Site Group | Technology-Based Intangible Assets | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | $ 162 | |||||||||
PPD | ||||||||||
Purchase Price | ||||||||||
Cash paid | $ 17,237 | |||||||||
Fair value of equity awards exchanged | 43 | |||||||||
Fair value of contingent consideration | 0 | |||||||||
Cash acquired | (1,244) | |||||||||
Total purchase price | 16,036 | |||||||||
Net Assets Acquired [Abstract] | ||||||||||
Current assets | 2,477 | |||||||||
Property, plant and equipment | 527 | |||||||||
Goodwill | 13,949 | |||||||||
Other assets | 1,060 | |||||||||
Contract liabilities | (1,539) | |||||||||
Deferred tax assets (liabilities) | (1,782) | |||||||||
Finance lease liabilities | (90) | |||||||||
Debt assumed | (4,299) | |||||||||
Other liabilities assumed | (2,034) | |||||||||
Redeemable noncontrolling interest | (122) | |||||||||
Total net assets acquired | 16,036 | |||||||||
PPD | Customer relationships | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 6,257 | |||||||||
PPD | Product technology | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 0 | |||||||||
PPD | Tradenames | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 594 | |||||||||
PPD | Backlog | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | $ 1,038 | |||||||||
PeproTech | ||||||||||
Purchase Price | ||||||||||
Cash paid | $ 1,946 | |||||||||
Fair value of contingent consideration | 0 | |||||||||
Cash acquired | (83) | |||||||||
Total purchase price | 1,863 | |||||||||
Net Assets Acquired [Abstract] | ||||||||||
Current assets | 58 | |||||||||
Property, plant and equipment | 18 | |||||||||
Goodwill | 1,198 | |||||||||
Other assets | 11 | |||||||||
Contract liabilities | 0 | |||||||||
Deferred tax assets (liabilities) | (192) | |||||||||
Finance lease liabilities | 0 | |||||||||
Debt assumed | 0 | |||||||||
Other liabilities assumed | (22) | |||||||||
Total net assets acquired | 1,863 | |||||||||
PeproTech | Customer relationships | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 510 | |||||||||
PeproTech | Product technology | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 282 | |||||||||
PeproTech | Tradenames | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | $ 0 | |||||||||
European Viral Vector Business | ||||||||||
Purchase Price | ||||||||||
Cash paid | $ 848 | |||||||||
Fair value of contingent consideration | 0 | |||||||||
Cash acquired | (18) | |||||||||
Total purchase price | 830 | |||||||||
Net Assets Acquired [Abstract] | ||||||||||
Current assets | 39 | |||||||||
Property, plant and equipment | 59 | |||||||||
Goodwill | 600 | |||||||||
Other assets | 3 | |||||||||
Contract liabilities | (59) | |||||||||
Deferred tax assets (liabilities) | (80) | |||||||||
Finance lease liabilities | (24) | |||||||||
Debt assumed | 0 | |||||||||
Other liabilities assumed | (35) | |||||||||
Total net assets acquired | 830 | |||||||||
European Viral Vector Business | Customer relationships | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 302 | |||||||||
European Viral Vector Business | Product technology | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 25 | |||||||||
European Viral Vector Business | Tradenames | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | $ 0 | |||||||||
Mesa Biotech | ||||||||||
Purchase Price | ||||||||||
Cash paid | $ 421 | |||||||||
Fair value of contingent consideration | 65 | |||||||||
Cash acquired | (14) | |||||||||
Total purchase price | 472 | |||||||||
Net Assets Acquired [Abstract] | ||||||||||
Current assets | 54 | |||||||||
Property, plant and equipment | 2 | |||||||||
Goodwill | 237 | |||||||||
Other assets | 3 | |||||||||
Contract liabilities | 0 | |||||||||
Deferred tax assets (liabilities) | (72) | |||||||||
Finance lease liabilities | 0 | |||||||||
Debt assumed | 0 | |||||||||
Other liabilities assumed | (33) | |||||||||
Total net assets acquired | 472 | |||||||||
Mesa Biotech | Customer relationships | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 0 | |||||||||
Mesa Biotech | Product technology | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 279 | |||||||||
Mesa Biotech | Tradenames | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | $ 2 | |||||||||
Lengnau biologics manufacturing facility | ||||||||||
Purchase Price | ||||||||||
Cash paid | $ 17 | |||||||||
Fair value of contingent consideration | 1 | |||||||||
Cash acquired | 0 | |||||||||
Total purchase price | 18 | |||||||||
Net Assets Acquired [Abstract] | ||||||||||
Current assets | 0 | |||||||||
Property, plant and equipment | 93 | |||||||||
Goodwill | 18 | |||||||||
Other assets | 364 | |||||||||
Contract liabilities | 0 | |||||||||
Deferred tax assets (liabilities) | 0 | |||||||||
Finance lease liabilities | (82) | |||||||||
Debt assumed | 0 | |||||||||
Other liabilities assumed | (375) | |||||||||
Total net assets acquired | 18 | |||||||||
Lengnau biologics manufacturing facility | Customer relationships | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 0 | |||||||||
Lengnau biologics manufacturing facility | Product technology | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 0 | |||||||||
Lengnau biologics manufacturing facility | Tradenames | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | $ 0 | |||||||||
Other | ||||||||||
Purchase Price | ||||||||||
Cash paid | 298 | |||||||||
Fair value of contingent consideration | 117 | |||||||||
Cash acquired | (12) | |||||||||
Total purchase price | $ 403 | |||||||||
Net Assets Acquired [Abstract] | ||||||||||
Current assets | 12 | |||||||||
Property, plant and equipment | 2 | |||||||||
Goodwill | 198 | |||||||||
Other assets | 2 | |||||||||
Contract liabilities | (1) | |||||||||
Deferred tax assets (liabilities) | (27) | |||||||||
Finance lease liabilities | 0 | |||||||||
Debt assumed | 0 | |||||||||
Other liabilities assumed | (11) | |||||||||
Total net assets acquired | 403 | |||||||||
Other | Customer relationships | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 2 | |||||||||
Other | Product technology | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 224 | |||||||||
Other | Tradenames | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | $ 2 | |||||||||
CorEvitas, LLC | ||||||||||
Purchase Price | ||||||||||
Cash paid | $ 730 | |||||||||
Debt settled | 184 | |||||||||
Cash acquired | 4 | |||||||||
Total purchase price | 910 | |||||||||
Net Assets Acquired [Abstract] | ||||||||||
Net tangible assets | (2) | |||||||||
Deferred tax assets (liabilities) | (68) | |||||||||
Total net assets acquired | 910 | |||||||||
CorEvitas, LLC | Customer relationships | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 260 | |||||||||
CorEvitas, LLC | Tradenames | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 0 | |||||||||
CorEvitas, LLC | Backlog | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | 46 | |||||||||
Goodwill | 627 | |||||||||
CorEvitas, LLC | Technology-Based Intangible Assets | ||||||||||
Net Assets Acquired [Abstract] | ||||||||||
Definite-lived intangible assets: | $ 47 |
Acquisitions - Schedule of Pro
Acquisitions - Schedule of Pro Forma Information (Details) - PPD $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Business Acquisition, Pro Forma Information [Abstract] | |
Revenues | $ 44,886 |
Net income attributable to Thermo Fisher Scientific Inc. | $ 7,369 |
Revenue & Contract-related Bala
Revenue & Contract-related Balances - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 42,857 | $ 44,915 | $ 39,211 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 22,764 | 24,594 | 19,659 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 10,741 | 10,762 | 11,134 |
Asia-Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 7,873 | 8,115 | 7,218 |
Other regions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,479 | 1,444 | 1,200 |
Consumables | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 17,597 | 20,624 | 22,608 |
Instruments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 7,646 | 7,924 | 7,753 |
Service revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 17,614 | $ 16,367 | $ 8,850 |
Revenue & Contract-related Ba_2
Revenue & Contract-related Balances - Revenue Performance Obligations (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Transaction price allocated to remaining performance obligation | $ 26,920 |
Revenue, Performance Obligation, Description of Timing | Amounts expected to occur thereafter generally relate to contract manufacturing, clinical research and extended warranty service agreements, which typically have durations of three to five years. |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation percentage | 53% |
Expected timing of satisfaction of remaining performance obligation | 12 months |
Revenue & Contract-related Ba_3
Revenue & Contract-related Balances - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, net | $ 1,443 | $ 1,312 |
Noncurrent contract assets, net | 4 | 7 |
Contract liabilities | 2,689 | 2,601 |
Noncurrent contract liabilities | $ 1,499 | $ 1,179 |
Business Segment and Geograph_3
Business Segment and Geographical Information - Schedule of Segment Reporting Information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Segment Reporting Information [Line Items] | ||||
Reportable segments | Segment | 4 | |||
Revenues | $ 42,857 | $ 44,915 | $ 39,211 | |
Subtotal reportable segments | 6,859 | 8,393 | 10,028 | |
Restructuring and other costs | (459) | (114) | (197) | |
Amortization of acquisition-related intangible assets | (2,338) | (2,395) | (1,761) | |
Consolidated operating income | 6,859 | 8,393 | 10,028 | |
Interest income | 879 | 272 | 43 | |
Interest expense | (1,375) | (726) | (536) | |
Other income/(expense) | (65) | (104) | (694) | |
Income before income taxes | 6,298 | 7,835 | 8,841 | |
Depreciation of property, plant and equipment | 1,068 | 986 | 831 | |
Total assets | 98,726 | 97,154 | 95,123 | |
Capital expenditures | 1,479 | 2,243 | 2,523 | |
Total Reportable Segments | ||||
Segment Reporting Information [Line Items] | ||||
Subtotal reportable segments | 9,810 | 10,985 | 12,138 | |
Consolidated operating income | 9,810 | 10,985 | 12,138 | |
Total Reportable Segments | Life Sciences Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 9,977 | 13,532 | 15,631 | |
Subtotal reportable segments | 3,420 | 5,582 | 7,817 | |
Restructuring and other costs | (105) | (30) | (129) | |
Consolidated operating income | 3,420 | 5,582 | 7,817 | |
Depreciation of property, plant and equipment | 220 | 214 | 197 | |
Total assets | 20,191 | 21,848 | 22,751 | |
Capital expenditures | 178 | 490 | 810 | |
Total Reportable Segments | Analytical Instruments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,263 | 6,624 | 6,069 | |
Subtotal reportable segments | 1,908 | 1,507 | 1,197 | |
Restructuring and other costs | (33) | (1) | (6) | |
Consolidated operating income | 1,908 | 1,507 | 1,197 | |
Depreciation of property, plant and equipment | 93 | 83 | 83 | |
Total assets | 10,247 | 10,019 | 9,692 | |
Capital expenditures | 87 | 140 | 79 | |
Total Reportable Segments | Specialty Diagnostics | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,405 | 4,763 | 5,659 | |
Subtotal reportable segments | 1,124 | 1,024 | 1,280 | |
Restructuring and other costs | (11) | (68) | (18) | |
Consolidated operating income | 1,124 | 1,024 | 1,280 | |
Depreciation of property, plant and equipment | 86 | 75 | 128 | |
Total assets | 8,636 | 5,542 | 6,010 | |
Capital expenditures | 121 | 112 | 167 | |
Total Reportable Segments | Laboratory Products and Biopharma Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 23,041 | 22,511 | 14,862 | |
Subtotal reportable segments | 3,358 | 2,872 | 1,844 | |
Restructuring and other costs | (295) | (12) | (35) | |
Consolidated operating income | 3,358 | 2,872 | 1,844 | |
Depreciation of property, plant and equipment | 669 | 614 | 423 | |
Total assets | 51,091 | 51,281 | 52,639 | |
Capital expenditures | 1,013 | 1,403 | 1,327 | |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (1,829) | (2,515) | (3,010) | |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Cost of revenues adjustments | (95) | (46) | (8) | |
Selling, general and administrative expenses adjustments | (59) | (37) | (144) | |
Restructuring and other costs | (459) | (114) | (197) | |
Amortization of acquisition-related intangible assets | (2,338) | (2,395) | (1,761) | |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other costs | (15) | (3) | (9) | |
Total assets | [1] | 8,561 | 8,464 | 4,031 |
Capital expenditures | $ 80 | $ 98 | $ 140 | |
[1] Corporate assets consist primarily of cash and cash equivalents and property and equipment at the company's corporate offices. |
Business Segment and Geograph_4
Business Segment and Geographical Information - Schedule of Revenue by Geographical Areas (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 42,857 | $ 44,915 | $ 39,211 | |
Long-lived Assets | [1] | 11,004 | 10,873 | 9,864 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | [2] | 22,013 | 23,820 | 18,907 |
Long-lived Assets | [1] | 6,352 | 6,308 | 5,578 |
Other | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | [2] | 20,844 | 21,095 | 20,304 |
Long-lived Assets | [1] | $ 4,652 | $ 4,565 | $ 4,286 |
[1] Includes property, plant and equipment, net, and operating lease ROU assets. Revenues are attributed to countries based on customer location. |
Other Income_Expense (Details)
Other Income/Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Gain (loss) on investments | $ (46) | $ (161) | $ 66 |
Net gains on derivative instruments | 67 | ||
Loss on early extinguishment of debt | $ 0 | $ (26) | (767) |
Cash outlay | 36 | ||
Interest rate swaps - fair value hedges | Cash Flow Hedging | Other Expense | |||
Schedule of Equity Method Investments [Line Items] | |||
Amount reclassified from accumulated other comprehensive items to interest expense | $ 65 |
Stock-based Compensation Expe_3
Stock-based Compensation Expense - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 159.32 | $ 135.07 | $ 123.97 |
Total intrinsic value | $ 320 | $ 336 | $ 501 |
Fair value of shares vested | $ 207 | $ 163 | $ 151 |
Purchase price percentage | 95% | ||
Payroll deductions | 10% | ||
Shares issued under ESPP (shares) | 0.1 | 0.2 | 0.1 |
Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 162 | ||
Weighted average amortization period | 2 years 2 months 12 days | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 179 | ||
Weighted average amortization period | 1 year 10 months 24 days | ||
Minimum | Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Term | 7 years | ||
Minimum | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Maximum | Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Term | 10 years | ||
Maximum | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years |
Stock-based Compensation Expe_4
Stock-based Compensation Expense - Schedule of Weighted Average Assumptions used in the Black-Scholes Option Pricing Model (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Expected stock price volatility | 25% | 26% | 26% |
Risk free interest rate | 4.20% | 2% | 0.80% |
Expected life of options (years) | 4 years 8 months 12 days | 4 years 8 months 12 days | 4 years 3 months 18 days |
Expected annual dividend | 0.30% | 0.20% | 0.20% |
Stock-based Compensation Expe_5
Stock-based Compensation Expense - Summary of the Company's Option Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Options Outstanding [Roll Forward] | |
Outstanding, beginning balance (shares) | shares | 5.6 |
Granted (shares) | shares | 0.7 |
Exercised (shares) | shares | (1) |
Canceled/expired (shares) | shares | (0.3) |
Outstanding, ending balance (shares) | shares | 5 |
Vested and unvested expected to vest (shares) | shares | 4.8 |
Exercisable (shares) | shares | 2.8 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 359.27 |
Granted (in dollars per share) | $ / shares | 546.94 |
Exercised (in dollars per share) | $ / shares | 218.82 |
Canceled/expired (in dollars per share) | $ / shares | 543.25 |
Outstanding, end of period (in dollars per share) | $ / shares | 401.30 |
Vested and unvested expected to vest (in dollars per share) | $ / shares | 396.20 |
Exercisable (in dollars per share) | $ / shares | $ 316.88 |
Options, Additional Disclosures [Abstract] | |
Options outstanding, weighted average remaining contractual term | 3 years 10 months 24 days |
Options vested and expected to vest, weighted average remaining contractual term | 3 years 10 months 24 days |
Options exercisable, weighted average remaining contractual term | 2 years 8 months 12 days |
Options outstanding, aggregate intrinsic value | $ | $ 714 |
Options vested and expected to vest, aggregate intrinsic value | $ | 712 |
Options exercisable, aggregate intrinsic value | $ | $ 635 |
Stock-based Compensation Expe_6
Stock-based Compensation Expense - Summary of the Company's Restricted Unit Activity (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Unvested Restricted Units [Roll Forward] | |||
Unvested, beginning balance (shares) | 0.7 | ||
Granted (shares) | 0.4 | ||
Vested (shares) | (0.4) | ||
Forfeited (shares) | (0.1) | ||
Unvested, ending balance (shares) | 0.6 | 0.7 | |
Restricted Units, Additional Disclosures [Abstract] | |||
Unvested, weighted average grant-date fair value, beginning (in dollars per share) | $ 495.39 | ||
Granted (in dollars per share) | 545.73 | $ 520.83 | $ 444.61 |
Vested (in dollars per share) | 480.45 | ||
Forfeited (in dollars per share) | 528.59 | ||
Unvested, weighted average grant-date fair value, ending (in dollars per share) | $ 533.65 | $ 495.39 | |
Restricted Stock Units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan expense | $ 468 | $ 402 | $ 299 |
Cash contributions to retirement plans | $ 42 | $ 41 | $ 34 |
U.S. equity funds | United States | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for investments | 10% | ||
International equity funds | United States | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for investments | 10% | ||
Fixed income funds | United States | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for investments | 80% | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated contributions to plan | $ 30 | ||
Minimum | Fixed income funds | Foreign Plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for investments | 30% | ||
Minimum | Equity funds | Foreign Plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for investments | 0% | ||
Minimum | Multi-asset funds | Foreign Plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for investments | 0% | ||
Minimum | Alternative investments | Foreign Plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for investments | 0% | ||
Minimum | Derivative funds | Foreign Plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for investments | 0% | ||
Minimum | Real estate funds | Foreign Plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for investments | 0% | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated contributions to plan | $ 50 | ||
Maximum | Fixed income funds | Foreign Plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for investments | 90% | ||
Maximum | Equity funds | Foreign Plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for investments | 25% | ||
Maximum | Multi-asset funds | Foreign Plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for investments | 40% | ||
Maximum | Alternative investments | Foreign Plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for investments | 4% | ||
Maximum | Derivative funds | Foreign Plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for investments | 45% | ||
Maximum | Real estate funds | Foreign Plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocations for investments | 4% |
Pensions and Other Postretire_2
Pensions and Other Postretirement Benefit Plans - Reconciliation of Benefit Obligations and Plan Assets (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 1,005 | $ 995 | |
Change in projected benefit obligations | |||
Projected benefit obligation at beginning of year | 995 | 1,260 | |
Acquisitions | 0 | 0 | |
Service costs | 0 | 0 | $ 0 |
Interest costs | 47 | 27 | 23 |
Settlements | 0 | 0 | |
Plan participants' contributions | 0 | 0 | |
Actuarial (gains) losses | 42 | (210) | |
Benefits paid | (79) | (82) | |
Currency translation and other | 0 | 0 | |
Projected benefit obligation at end of year | 1,005 | 995 | 1,260 |
Change in fair value of plan assets | |||
Fair value of plan assets at beginning of year | 937 | 1,226 | |
Acquisitions | 0 | 0 | |
Actual return on plan assets | 84 | (212) | |
Employer contributions | 5 | 5 | |
Settlements | 0 | 0 | |
Plan participants' contributions | 0 | 0 | |
Benefits paid | (79) | (82) | |
Currency translation and other | 0 | 0 | |
Fair value of plan assets at end of year | 947 | 937 | 1,226 |
Funded status | (58) | (58) | |
Amounts recognized in balance sheet | |||
Noncurrent assets | 0 | 0 | |
Current liability | (6) | (6) | |
Noncurrent liabilities | (52) | (52) | |
Net amount recognized | (58) | (58) | |
Amounts recognized in accumulated other comprehensive items | |||
Net actuarial loss | 217 | 200 | |
Prior service credits | 0 | 0 | |
Net amount recognized | 217 | 200 | |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 1,166 | 1,016 | |
Change in projected benefit obligations | |||
Projected benefit obligation at beginning of year | 1,069 | 1,552 | |
Acquisitions | 15 | 51 | |
Service costs | 26 | 34 | 27 |
Interest costs | 42 | 20 | 11 |
Settlements | (37) | (31) | |
Plan participants' contributions | 9 | 9 | |
Actuarial (gains) losses | 65 | (447) | |
Benefits paid | (25) | (19) | |
Currency translation and other | 57 | (100) | |
Projected benefit obligation at end of year | 1,221 | 1,069 | 1,552 |
Change in fair value of plan assets | |||
Fair value of plan assets at beginning of year | 868 | 1,302 | |
Acquisitions | 15 | 14 | |
Actual return on plan assets | 29 | (347) | |
Employer contributions | 36 | 36 | |
Settlements | (37) | (31) | |
Plan participants' contributions | 9 | 9 | |
Benefits paid | (25) | (19) | |
Currency translation and other | 49 | (96) | |
Fair value of plan assets at end of year | 944 | 868 | $ 1,302 |
Funded status | (277) | (201) | |
Amounts recognized in balance sheet | |||
Noncurrent assets | 65 | 81 | |
Current liability | (11) | (11) | |
Noncurrent liabilities | (331) | (271) | |
Net amount recognized | (277) | (201) | |
Amounts recognized in accumulated other comprehensive items | |||
Net actuarial loss | 151 | 74 | |
Prior service credits | (5) | (4) | |
Net amount recognized | $ 146 | $ 70 |
Pensions and Other Postretire_3
Pensions and Other Postretirement Benefit Plans - Actuarial Assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of Net Periodic Benefit Cost (Income) [Abstract] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible List] | Other income/(expense) | ||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible List] | Other income/(expense) | ||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible List] | Other income/(expense) | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible List] | Other income/(expense) | ||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement and Curtailment Gain (Loss), Statement of Income or Comprehensive Income [Extensible List] | Other income/(expense) | ||
Pension Plans, Defined Benefit | United States | |||
Weighted Average Assumptions Used to Determine Benefit Obligation [Abstract] | |||
Discount rate for determining benefit obligation | 4.82% | 5.01% | |
Interest crediting rate for cash balance plans | 4.76% | 4.96% | |
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost (Income) [Abstract] | |||
Discount rate - interest cost | 5.01% | 2.70% | 2.33% |
Expected long-term rate of return on assets | 6.25% | 4.75% | 4.25% |
Components of Net Periodic Benefit Cost (Income) [Abstract] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost on benefit obligation | 47 | 27 | 23 |
Expected return on plan assets | (59) | (45) | (40) |
Amortization of actuarial net loss | 0 | 4 | 7 |
Amortization of prior service cost (benefit) | 0 | 0 | 0 |
Settlement/curtailment loss (gain) | 0 | 0 | 0 |
Net periodic benefit cost (income) | $ (12) | $ (14) | $ (10) |
Pension Plans, Defined Benefit | Foreign Plan | |||
Weighted Average Assumptions Used to Determine Benefit Obligation [Abstract] | |||
Discount rate for determining benefit obligation | 3.47% | 3.91% | |
Interest crediting rate for cash balance plans | 2.06% | 2.19% | |
Average rate of increase in employee compensation | 2.64% | 2.78% | |
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost (Income) [Abstract] | |||
Discount rate - service cost | 3.62% | 1% | 0.65% |
Discount rate - interest cost | 3.95% | 1.36% | 0.80% |
Average rate of increase in employee compensation | 2.77% | 2.73% | 2.30% |
Expected long-term rate of return on assets | 4.33% | 2.33% | 2.02% |
Components of Net Periodic Benefit Cost (Income) [Abstract] | |||
Service cost | $ 26 | $ 34 | $ 27 |
Interest cost on benefit obligation | 42 | 20 | 11 |
Expected return on plan assets | (37) | (26) | (19) |
Amortization of actuarial net loss | 2 | 7 | 12 |
Amortization of prior service cost (benefit) | (1) | (1) | 0 |
Settlement/curtailment loss (gain) | 1 | (2) | 0 |
Net periodic benefit cost (income) | $ 33 | $ 32 | $ 31 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Plans - Accumulated and Projected Benefit Obligation and Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Pension plans with projected benefit obligations in excess of plan assets | ||
Projected benefit obligation | $ 1,752 | $ 1,636 |
Fair value of plan assets | 1,352 | 1,296 |
Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 1,695 | 1,583 |
Fair value of plan assets | $ 1,349 | $ 1,294 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefit Plans - Schedule of Estimated Future Benefit Payments (Details) - Pension Plans, Defined Benefit $ in Millions | Dec. 31, 2023 USD ($) |
United States | |
Defined Benefit Plan, Expected Future Benefit Payments [Abstract] | |
2024 | $ 81 |
2025 | 79 |
2026 | 80 |
2027 | 79 |
2028 | 79 |
2029-2033 | 374 |
Foreign Plan | |
Defined Benefit Plan, Expected Future Benefit Payments [Abstract] | |
2024 | 52 |
2025 | 55 |
2026 | 59 |
2027 | 60 |
2028 | 65 |
2029-2033 | $ 354 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefit Plans - Schedule of Fair Value of the Company's Plan Assets (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 947 | $ 937 | $ 1,226 | |
United States | Quoted Prices in Active Markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | Significant Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | Fair Value Measured at Net Asset Value Per Share | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 947 | 937 | [1] | |
United States | U.S. equity funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 93 | 89 | ||
United States | U.S. equity funds | Quoted Prices in Active Markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | U.S. equity funds | Significant Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | U.S. equity funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | U.S. equity funds | Fair Value Measured at Net Asset Value Per Share | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 93 | 89 | [1] | |
United States | International equity funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 93 | 91 | ||
United States | International equity funds | Quoted Prices in Active Markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | International equity funds | Significant Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | International equity funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | International equity funds | Fair Value Measured at Net Asset Value Per Share | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 93 | 91 | [1] | |
United States | Fixed income funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 739 | 739 | ||
United States | Fixed income funds | Quoted Prices in Active Markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | Fixed income funds | Significant Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | Fixed income funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | Fixed income funds | Fair Value Measured at Net Asset Value Per Share | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 739 | 739 | [1] | |
United States | Money market funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 22 | 18 | ||
United States | Money market funds | Quoted Prices in Active Markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | Money market funds | Significant Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | Money market funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | Money market funds | Fair Value Measured at Net Asset Value Per Share | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 22 | 18 | [1] | |
Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 944 | 868 | $ 1,302 | |
Foreign Plan | Quoted Prices in Active Markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 13 | 4 | ||
Foreign Plan | Significant Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 333 | 306 | ||
Foreign Plan | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign Plan | Fair Value Measured at Net Asset Value Per Share | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 598 | 558 | [1] | |
Foreign Plan | Fixed income funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 346 | 299 | ||
Foreign Plan | Fixed income funds | Quoted Prices in Active Markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 9 | 0 | ||
Foreign Plan | Fixed income funds | Significant Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign Plan | Fixed income funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign Plan | Fixed income funds | Fair Value Measured at Net Asset Value Per Share | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 337 | 299 | [1] | |
Foreign Plan | Equity funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 7 | 8 | ||
Foreign Plan | Equity funds | Quoted Prices in Active Markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign Plan | Equity funds | Significant Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign Plan | Equity funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign Plan | Equity funds | Fair Value Measured at Net Asset Value Per Share | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 7 | 8 | [1] | |
Foreign Plan | Multi-asset funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 66 | 56 | ||
Foreign Plan | Multi-asset funds | Quoted Prices in Active Markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign Plan | Multi-asset funds | Significant Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign Plan | Multi-asset funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign Plan | Multi-asset funds | Fair Value Measured at Net Asset Value Per Share | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 66 | 56 | [1] | |
Foreign Plan | Derivative funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 184 | 190 | ||
Foreign Plan | Derivative funds | Quoted Prices in Active Markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign Plan | Derivative funds | Significant Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign Plan | Derivative funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign Plan | Derivative funds | Fair Value Measured at Net Asset Value Per Share | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 184 | 190 | [1] | |
Foreign Plan | Alternative investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1 | |||
Foreign Plan | Alternative investments | Quoted Prices in Active Markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
Foreign Plan | Alternative investments | Significant Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
Foreign Plan | Alternative investments | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
Foreign Plan | Alternative investments | Fair Value Measured at Net Asset Value Per Share | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1 | |||
Foreign Plan | Insurance contracts | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 333 | 306 | ||
Foreign Plan | Insurance contracts | Quoted Prices in Active Markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign Plan | Insurance contracts | Significant Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 333 | 306 | ||
Foreign Plan | Insurance contracts | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign Plan | Insurance contracts | Fair Value Measured at Net Asset Value Per Share | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | [1] | |
Foreign Plan | Real estate funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1 | |||
Foreign Plan | Real estate funds | Quoted Prices in Active Markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
Foreign Plan | Real estate funds | Significant Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
Foreign Plan | Real estate funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
Foreign Plan | Real estate funds | Fair Value Measured at Net Asset Value Per Share | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1 | |||
Foreign Plan | Cash / money market funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 6 | 9 | ||
Foreign Plan | Cash / money market funds | Quoted Prices in Active Markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 4 | 4 | ||
Foreign Plan | Cash / money market funds | Significant Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign Plan | Cash / money market funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign Plan | Cash / money market funds | Fair Value Measured at Net Asset Value Per Share | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 2 | $ 5 | [1] | |
[1] Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Income Taxes - Components of In
Income Taxes - Components of Income Before Provision for Income Taxes and Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of Income From Continuing Operations Before Income Taxes [Abstract] | |||
U.S. | $ 2,431 | $ 3,859 | $ 3,340 |
Non-U.S. | 3,867 | 3,976 | 5,501 |
Income before income taxes | 6,298 | 7,835 | 8,841 |
Current income tax provision | |||
Federal | 228 | 813 | 446 |
Non-U.S. | 1,206 | 633 | 1,148 |
State | 150 | 254 | 160 |
Current income tax provision | 1,584 | 1,700 | 1,754 |
Deferred income tax provision (benefit) | |||
Federal | (551) | (611) | (227) |
Non-U.S. | (647) | (314) | (399) |
State | (102) | (72) | (19) |
Deferred income tax provision (benefit) | (1,300) | (997) | (645) |
Provision for income taxes | $ 284 | $ 703 | $ 1,109 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21% | 21% | 21% |
Provision for income taxes at statutory rate | $ 1,323 | $ 1,645 | $ 1,857 |
Foreign rate differential | (223) | (329) | (255) |
Income tax credits | (276) | (202) | (315) |
Global intangible low-taxed income | 113 | 96 | 76 |
Foreign-derived intangible income | (108) | (149) | (119) |
Excess tax benefits from stock options and restricted stock units | (69) | (80) | (124) |
Provision for (reversal of) tax reserves, net | 13 | (544) | (17) |
Intra-entity transfers | (233) | (18) | (284) |
Foreign exchange loss on inter-company debt refinancing | (112) | 0 | 0 |
Provision for (reversal of) valuation allowances, net | (32) | 344 | 36 |
Withholding taxes | 33 | 84 | 164 |
Tax return reassessments and settlements | (187) | (210) | 1 |
State income taxes, net of federal tax | 70 | 111 | 82 |
Other, net | (28) | (45) | 7 |
Provision for income taxes | $ 284 | $ 703 | $ 1,109 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||||
Provision for (reversal of) valuation allowances, net | $ (32) | $ 344 | $ 36 | |
Tax benefit from foreign exchange loss on an intercompany debt refinancing transaction | 91 | |||
Research credits and incentives | 127 | |||
Intra-entity transfers | (233) | (18) | (284) | |
Tax return reassessments and settlements | 187 | 210 | (1) | |
Excess tax benefits from stock options and restricted stock units | (69) | (80) | (124) | |
Undistributed earnings | 34,000 | |||
Unrecognized tax benefits | 540 | 572 | 1,124 | $ 1,091 |
Additions due to acquisitions | 0 | 15 | 26 | |
UTB, interest and penalties | 95 | 74 | ||
Foreign Tax Credit Carryforwards | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | 648 | |||
Deferred Interest Carryforward | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | 753 | |||
Deferred Interest Carryforward | Tax Years 2025-2033 | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | 149 | |||
Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
NOL carryforwards | 70 | |||
Domestic NOL Expires | ||||
Operating Loss Carryforwards [Line Items] | ||||
NOL carryforwards | 30 | |||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
NOL carryforwards | 93 | |||
State NOL Expires | ||||
Operating Loss Carryforwards [Line Items] | ||||
NOL carryforwards | 83 | |||
Non- U.S. | ||||
Operating Loss Carryforwards [Line Items] | ||||
NOL carryforwards | 1,420 | |||
Portion of Non- U.S. with expiration dates | ||||
Operating Loss Carryforwards [Line Items] | ||||
NOL carryforwards | 435 | |||
Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Provision for (reversal of) valuation allowances, net | 395 | |||
Tax return reassessments and settlements | 208 | |||
Provision for (reversal of) tax reserves, net | 658 | |||
Charge for expired tax credits | 49 | |||
Unrecognized tax benefits reclassed to accrued income taxes in connection with IRS settlement | 101 | |||
Foreign | ||||
Operating Loss Carryforwards [Line Items] | ||||
Increase (decrease) in UTB | 12 | (143) | (80) | |
Federal and State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Increase (decrease) in UTB | $ 19 | $ 610 | 75 | |
Deferred Tax Implications | ||||
Operating Loss Carryforwards [Line Items] | ||||
Intra-entity transfers | 188 | |||
Capital Loss | ||||
Operating Loss Carryforwards [Line Items] | ||||
Intra-entity transfers | $ 96 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Asset (Liability) and Changes in Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Tax Assets (Liabilities) [Abstract] | |||
Depreciation and amortization | $ (4,286) | $ (4,277) | |
Net operating loss and credit carryforwards | 2,385 | 1,951 | |
Reserves and accruals | 157 | 140 | |
Accrued compensation | 299 | 259 | |
Inventory basis difference | 275 | 364 | |
Deferred interest | 753 | 445 | |
Research and development and other capitalized costs | 380 | 220 | |
Unrealized (gains) losses on hedging instruments | (66) | (199) | |
Other, net | 329 | 435 | |
Deferred tax assets/(liabilities), net before valuation allowance | 226 | (662) | |
Valuation Allowance | 1,317 | 1,322 | $ 968 |
Deferred tax assets/(liabilities), net | (1,091) | (1,984) | |
Valuation Allowance [Roll Forward] | |||
Beginning Balance | 1,322 | 968 | 933 |
Additions (reductions) charged to income tax provision, net | (32) | 344 | 24 |
Additions due to acquisitions | 4 | 14 | 30 |
Currency translation and other | 23 | (4) | (19) |
Ending Balance | $ 1,317 | $ 1,322 | $ 968 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 572 | $ 1,124 | $ 1,091 |
Additions due to acquisitions | 0 | 15 | 26 |
Additions for tax positions of current year | 4 | 104 | 32 |
Additions for tax positions of prior years | 34 | 24 | 60 |
Reductions for tax positions of prior years | (43) | (659) | (5) |
Closure of tax years | (6) | (4) | (27) |
Settlements | (21) | (32) | (53) |
Ending balance | $ 540 | $ 572 | $ 1,124 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net income | $ 5,995 | $ 6,950 | $ 7,725 |
Basic (in shares) | 386 | 392 | 394 |
Plus effect of: stock options and restricted stock units (shares) | 2 | 2 | 3 |
Diluted weighted average shares (shares) | 388 | 394 | 397 |
Basic Earnings Per Share (in dollars per share) | $ 15.52 | $ 17.75 | $ 19.62 |
Diluted Earnings Per Share (in dollars per share) | $ 15.45 | $ 17.63 | $ 19.46 |
Antidilutive stock options excluded from diluted weighted averages shares (shares) | 2 | 2 | 1 |
Debt and Other Financing Arra_3
Debt and Other Financing Arrangements - Schedule of Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Total borrowings at par value | $ 35,028 | $ 34,561 |
Unamortized discount | (113) | (112) |
Unamortized debt issuance costs | (188) | (171) |
Total borrowings at carrying value | 34,727 | 34,278 |
Finance lease liabilities | 190 | 210 |
Less: Short-term obligations and current maturities | 3,609 | 5,579 |
Long-term obligations | $ 31,308 | $ 28,909 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Long-term obligations | Long-term obligations |
Commercial Paper Programs | ||
Debt Instrument [Line Items] | ||
Total borrowings at par value | $ 0 | $ 310 |
Total borrowings at carrying value | 0 | 310 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Total borrowings at carrying value | $ 34,650 | 33,889 |
Senior Notes | Floating Rate (SOFR + 0.35%) 1.5-Year Senior Notes, Due 4/18/2023 | ||
Debt Instrument [Line Items] | ||
Variable rate | 0.35% | |
Term | 1 year 6 months | |
Total borrowings at par value | $ 0 | 1,000 |
Senior Notes | Floating Rate (SOFR + 0.39%) 2-Year Senior Notes, Due 10/18/2023 | ||
Debt Instrument [Line Items] | ||
Variable rate | 0.39% | |
Term | 2 years | |
Total borrowings at par value | $ 0 | 500 |
Senior Notes | 0.797% 2-Year Senior Notes, Due 10/18/2023 | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.797% | |
Term | 2 years | |
Total borrowings at par value | $ 0 | 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 | 0.20% | |
Term | 2 years | |
Total borrowings at par value | $ 0 | 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 | |
Total borrowings at par value | $ 0 | 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 | $ 1,104 | 1,071 |
Senior Notes | Floating Rate (SOFR + 0.53%) 3-Year Senior Notes, Due 10/18/2024 | ||
Debt Instrument [Line Items] | ||
Variable rate | 0.53% | |
Term | 3 years | |
Total borrowings at par value | $ 0 | 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 | $ 883 | 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 | $ 706 | 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 | $ 158 | 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 | $ 607 | 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 | $ 552 | 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 | $ 773 | 749 |
Senior Notes | 4.953% 3-Year Senior Notes, Due 8/10/2026 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.953% | |
Term | 3 years | |
Effective interest rate | 5.19% | |
Total borrowings at par value | $ 600 | 0 |
Senior Notes | 5.000% 3-Year Senior Notes due 12/5/2026 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5% | |
Term | 3 years | |
Effective interest rate | 5% | |
Total borrowings at par value | $ 1,000 | 0 |
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 | $ 552 | 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 | 1.97% | |
Total borrowings at par value | $ 662 | 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 | $ 205 | 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 | $ 883 | 857 |
Senior Notes | 0.77% 5-Year Senior Notes, Due 9/6/2028 (yen-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.77% | |
Term | 5 years | |
Effective interest rate | 0.90% | |
Total borrowings at par value | $ 206 | 0 |
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 | $ 662 | 642 |
Senior Notes | 1.750% 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 | 5.000% 5-Year Senior Notes due 1/31/2029 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5% | |
Term | 5 years | |
Effective interest rate | 5% | |
Total borrowings at par value | $ 1,000 | 0 |
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 | $ 773 | 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 | 4.977% 7-Year Senior Notes, Due 8/10/2030 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.977% | |
Term | 7 years | |
Effective interest rate | 5.12% | |
Total borrowings at par value | $ 750 | 0 |
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 | 0.89% | |
Total borrowings at par value | $ 1,932 | 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 | $ 993 | 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 | $ 662 | 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 | $ 45 | 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 | 5.086% 10-Year Senior Notes, Due 8/10/2033 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.086% | |
Term | 10 years | |
Effective interest rate | 5.20% | |
Total borrowings at par value | $ 1,000 | 0 |
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 | $ 1,656 | 1,606 |
Senior Notes | 5.200% 10-Year Senior Notes due 1/31/2034 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.20% | |
Term | 10 years | |
Effective interest rate | 5.20% | |
Total borrowings at par value | $ 500 | 0 |
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 | $ 828 | 803 |
Senior Notes | 1.50% 12-Year Senior Notes, due 9/6/2035 (yen-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.50% | |
Term | 12 years | |
Effective interest rate | 1.58% | |
Total borrowings at par value | $ 152 | 0 |
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 | $ 773 | 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 | $ 993 | 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 | $ 1,380 | 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 | $ 104 | 111 |
Senior Notes | 5.404% 20-Year Senior Notes, due 8/10/2043 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.404% | |
Term | 20 years | |
Effective interest rate | 5.50% | |
Total borrowings at par value | $ 600 | 0 |
Senior Notes | 2.02% 20-Year Senior Notes, due 9/6/2043 (yen-denominated) | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.02% | |
Term | 20 years | |
Effective interest rate | 2.06% | |
Total borrowings at par value | $ 206 | 0 |
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 | $ 1,104 | 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 | $ 828 | 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 | $ 236 | 254 |
Other Debt | ||
Debt Instrument [Line Items] | ||
Total borrowings at par value | 77 | 79 |
Total borrowings at carrying value | $ 77 | $ 79 |
Debt and Other Financing Arra_4
Debt and Other Financing Arrangements - Schedule of Annual Repayment Requirements for Debt Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 3,604 | |
2025 | 2,356 | |
2026 | 2,925 | |
2027 | 2,020 | |
2028 | 2,451 | |
2029 and thereafter | 21,672 | |
Total borrowings at par value | 35,028 | $ 34,561 |
2024 | 5 | |
2025 | 13 | |
2026 | 12 | |
2027 | 10 | |
2028 | 8 | |
2029 and thereafter | 142 | |
Finance lease liabilities | $ 190 | $ 210 |
Debt and Other Financing Arra_5
Debt and Other Financing Arrangements - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Short-term Financing [Line Items] | |||
Unused lines of credit | $ 69,000,000 | ||
Loss on early extinguishment of debt | $ 0 | $ 26,000,000 | $ 767,000,000 |
Senior Notes | |||
Short-term Financing [Line Items] | |||
Redemption price | 100% | ||
Interest rate swaps - fair value hedges | |||
Short-term Financing [Line Items] | |||
Proceeds from interest rate swap | $ 22,000,000 | ||
U.S. Commercial Paper Program | Commercial Paper Programs | |||
Short-term Financing [Line Items] | |||
Maximum period prior to maturity | 397 days | ||
Euro Commercial Paper Program | Commercial Paper Programs | |||
Short-term Financing [Line Items] | |||
Maximum period prior to maturity | 183 days | ||
Senior Notes 3.65% Due 2025 [Member] | Senior Notes | |||
Short-term Financing [Line Items] | |||
Interest rate | 3.65% | ||
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% | ||
Revolving Credit Facility | |||
Short-term Financing [Line Items] | |||
Revolving credit facility capacity | $ 5,000,000,000 | ||
Minimum consolidated net interest coverage ratio | 3.5 | ||
Borrowings outstanding | $ 0 |
Leases- Narrative (Details)
Leases- Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) lease | |
Lessee, Lease, Description [Line Items] | |
Leased operating facilities | lease | 3 |
Lease Residual Value Guarantee | |
Lessee, Lease, Description [Line Items] | |
Maximum guarantee under lease arrangements | $ | $ 147 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 month |
Options to extend, renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 30 years |
Options to extend, renewal term | 10 years |
Option to terminate, term | 1 year |
Leases - Schedule of Operating
Leases - Schedule of Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease costs | $ 355 | $ 351 | $ 254 |
Variable lease costs | 115 | 109 | 66 |
Cash used in operating activities for payments of amounts included in the measurement of operating lease liabilities | 410 | 289 | 288 |
Operating lease ROU assets obtained in exchange for new operating lease liabilities | 234 | 430 | $ 293 |
ROU assets | 1,556 | 1,593 | |
Operating lease liabilities - current | 263 | 272 | |
Operating lease liabilities - noncurrent | $ 1,244 | $ 1,313 | |
Remaining operating lease term | 9 years 2 months 12 days | 9 years 4 months 24 days | |
Discount rate | 4% | 3.20% | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other accrued expenses | Other accrued expenses | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other accrued expenses |
Leases - Schedule of Future Pay
Leases - Schedule of Future Payments of Operating Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 294 | |
2025 | 288 | |
2026 | 242 | |
2027 | 172 | |
2028 | 131 | |
2029 and thereafter | 723 | |
Total lease payments | 1,850 | |
Less: imputed interest | $ 343 | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other accrued expenses, Other long-term liabilities | Other accrued expenses, Other long-term liabilities |
Total operating lease liability | $ 1,507 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Unconditional Purchase Obligations [Abstract] | |
Unconditional purchase obligations | $ 2,530 |
Accrual for Environmental Loss Contingencies Disclosure [Abstract] | |
Environmental liability | $ 75 |
Loss Contingency [Abstract] | |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other accrued expenses, Other long-term liabilities |
Letters of Credit / Bank Guarantees | |
Guarantor Obligations [Line Items] | |
Maximum guarantee under lease arrangements | $ 315 |
Surety Bonds and Other Guarantees | |
Guarantor Obligations [Line Items] | |
Maximum guarantee under lease arrangements | 93 |
Investments | |
Guarantor Obligations [Line Items] | |
Maximum guarantee under lease arrangements | 164 |
Businesses Sold | Pension Obligation Guarantee | |
Guarantor Obligations [Line Items] | |
Maximum guarantee under lease arrangements | 24 |
Product Liability, Workers Compensation and Other Personal Injury Matters | |
Loss Contingency [Abstract] | |
Loss accrual | 224 |
Estimated amounts due from insurers | 88 |
Undiscounted product liability accrual | 20 |
Product Liability, Workers Compensation and Other Personal Injury Matters | Minimum | |
Loss Contingency [Abstract] | |
Range of probable loss | 222 |
Product Liability, Workers Compensation and Other Personal Injury Matters | Maximum | |
Loss Contingency [Abstract] | |
Range of probable loss | $ 379 |
Comprehensive Income and Shar_3
Comprehensive Income and Shareholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 2 Months Ended | 12 Months Ended | ||
Feb. 22, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ 46,724 | $ 44,032 | $ 40,855 | $ 34,517 |
Total other comprehensive income/(loss) | (133) | (777) | 478 | |
Balance | $ 46,724 | 44,032 | 40,855 | |
Unissued shares of common stock (in shares) | 39 | |||
Purchases of company common stock | $ 3,000 | 3,000 | 2,000 | |
Currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (2,941) | (2,880) | ||
Other comprehensive income/(loss) before reclassifications | (69) | |||
Amounts reclassified from accumulated other comprehensive income/(loss) | 8 | |||
Total other comprehensive income/(loss) | (61) | |||
Balance | (2,941) | (2,880) | ||
Unrealized losses on hedging instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (28) | (33) | ||
Other comprehensive income/(loss) before reclassifications | 0 | |||
Amounts reclassified from accumulated other comprehensive income/(loss) | 5 | |||
Total other comprehensive income/(loss) | 5 | |||
Balance | (28) | (33) | ||
Pension and other postretirement benefit liability adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (255) | (186) | ||
Other comprehensive income/(loss) before reclassifications | (69) | |||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | |||
Total other comprehensive income/(loss) | (69) | |||
Balance | (255) | (186) | ||
Accumulated Other Comprehensive Items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (3,224) | (3,099) | (2,329) | (2,807) |
Other comprehensive income/(loss) before reclassifications | (138) | |||
Amounts reclassified from accumulated other comprehensive income/(loss) | 13 | |||
Total other comprehensive income/(loss) | (125) | |||
Balance | $ (3,224) | $ (3,099) | $ (2,329) | |
Subsequent Event | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Purchases of company common stock | $ 3,000 | |||
Purchases of company common stock (in shares) | 5.5 |
Fair Value Measurements and F_3
Fair Value Measurements and Fair Value of Financial Instruments - Schedule of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Liabilities [Abstract] | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | |
Fair Value, Recurring | ||
Assets [Abstract] | ||
Cash equivalents | $ 5,021 | $ 5,804 |
Bank time deposits | 3 | |
Investments | 20 | 25 |
Warrants | 12 | |
Insurance contracts | 210 | 162 |
Derivative contracts | 8 | 79 |
Total assets | 5,262 | 6,082 |
Liabilities [Abstract] | ||
Derivative contracts | 290 | 101 |
Contingent consideration | 87 | 174 |
Total liabilities | 377 | 275 |
Fair Value, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Assets [Abstract] | ||
Cash equivalents | 5,021 | 5,804 |
Bank time deposits | 3 | |
Investments | 20 | 25 |
Warrants | 0 | |
Insurance contracts | 0 | 0 |
Derivative contracts | 0 | 0 |
Total assets | 5,044 | 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 |
Bank time deposits | 0 | |
Investments | 0 | 0 |
Warrants | 12 | |
Insurance contracts | 210 | 162 |
Derivative contracts | 8 | 79 |
Total assets | 218 | 253 |
Liabilities [Abstract] | ||
Derivative contracts | 290 | 101 |
Contingent consideration | 0 | 0 |
Total liabilities | 290 | 101 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets [Abstract] | ||
Cash equivalents | 0 | 0 |
Bank time deposits | 0 | |
Investments | 0 | 0 |
Warrants | 0 | |
Insurance contracts | 0 | 0 |
Derivative contracts | 0 | 0 |
Total assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative contracts | 0 | 0 |
Contingent consideration | 87 | 174 |
Total liabilities | $ 87 | $ 174 |
Fair Value Measurements and F_4
Fair Value Measurements and Fair Value of Financial Instruments - Rollforward of the Fair Value of Investments (Details) - Contingent Consideration - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 174 | $ 317 |
Acquisitions (including assumed balances) | 1 | (18) |
Payments | (63) | (66) |
Changes in fair value included in earnings | (25) | (59) |
Ending balance | $ 87 | $ 174 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive 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 - Schedule of Aggregate Notional Value and Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets, Other assets | |
Cross-currency interest rate swaps - designated as net investment hedges | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair value – assets | $ 5 | $ 77 |
Fair value – liabilities | 287 | 85 |
Cross-currency interest rate swaps - designated as net investment hedges | Net Investment Hedging | Cross-currency interest rate swaps designated as net investment hedge - euro | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 1,000 | 900 |
Cross-currency interest rate swaps - designated as net investment hedges | Net Investment Hedging | Cross-currency interest rate swaps designated as net investment hedge - Japanese yen | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 4,650 | 1,200 |
Cross-currency interest rate swaps - designated as net investment hedges | Net Investment Hedging | Cross-currency interest rate swaps designated as net investment hedge - Swiss franc | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 2,500 | 0 |
Currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 1,567 | 2,434 |
Currency exchange contracts | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair value – assets | 3 | 2 |
Fair value – liabilities | 3 | 16 |
Fair Value, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
Fair value – assets | 8 | 79 |
Fair value – liabilities | $ 290 | $ 101 |
Fair Value Measurements and F_6
Fair Value Measurements and Fair Value of Financial Instruments - Schedule of Derivative Instruments, Gain (Loss) Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Currency exchange contracts | Other Expense | Derivatives not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Included in interest expense | $ (29) | $ 102 | $ 162 |
Currency exchange contracts | Cost of Sales | Derivatives not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Included in interest expense | 1 | 6 | 12 |
Fair Value Hedging | Interest rate swaps - fair value hedges | Derivatives designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Included in interest expense | 0 | 0 | (3) |
Fair Value Hedging | Interest rate swaps - fair value hedges | Other Expense | Derivatives designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged long-term obligations - included in other income/(expense) | 0 | 0 | 25 |
Fair Value Hedging | Cross-currency interest rate swaps - designated as net investment hedges | Derivatives designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Included in interest expense | 0 | (81) | 0 |
Fair Value Hedging | Cross-currency interest rate swaps - designated as net investment hedges | Other Expense | Derivatives designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged long-term obligations - included in other income/(expense) | 0 | 77 | 0 |
Cash Flow Hedging | Interest rate swaps - fair value hedges | Other Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive items to interest expense | (65) | ||
Cash Flow Hedging | Interest rate swaps - fair value hedges | Other Expense | Derivatives designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive items to interest expense | 3 | 3 | 73 |
Cash Flow Hedging | Interest rate swaps - fair value hedges | Interest Expense | Derivatives designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified from accumulated other comprehensive items to interest expense | 4 | 0 | 0 |
Net Investment Hedging | Foreign currency-denominated debt | Derivatives designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Included in currency translation adjustment within other comprehensive items | (356) | 695 | 922 |
Net Investment Hedging | Cross-currency interest rate swaps - designated as net investment hedges | Derivatives designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Included in interest expense | 120 | 19 | 8 |
Included in currency translation adjustment within other comprehensive items | $ (222) | $ 52 | $ 71 |
Fair Value Measurements and F_7
Fair Value Measurements and Fair Value of Financial Instruments - Schedule of Carrying Value and Fair Value of the Company's Debt Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value | $ 34,727 | $ 34,278 |
Fair value | 32,268 | 30,290 |
Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value | 34,650 | 33,889 |
Fair value | 32,191 | 29,901 |
Commercial Paper Programs | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value | 0 | 310 |
Fair value | 0 | 310 |
Other Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value | 77 | 79 |
Fair value | $ 77 | $ 79 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest | $ 1,385 | $ 667 | $ 555 |
Income taxes | 1,482 | 1,234 | 2,182 |
Non-cash investing and financing activities | |||
Acquired but unpaid property, plant and equipment | 296 | 393 | 379 |
Fair value of equity awards exchanged | 0 | 0 | 43 |
Fair value of contingent consideration | 0 | 0 | 183 |
Finance lease ROU assets obtained in exchange for new finance lease liabilities | 2 | 33 | 15 |
Declared but unpaid dividends | 137 | 119 | 104 |
Issuance of stock upon vesting of restricted stock units | 234 | 241 | 265 |
Excise tax from stock repurchases | $ 28 | $ 0 | $ 0 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Supplemental Cash Flow Information [Abstract] | ||||
Cash and cash equivalents | $ 8,077 | $ 8,524 | ||
Restricted cash included in other current assets | 6 | 12 | ||
Restricted cash included in other assets | 14 | 1 | ||
Cash, cash equivalents and restricted cash | $ 8,097 | $ 8,537 | $ 4,491 | $ 10,336 |
Restricted Cash and Cash Equivalents, Current, Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets | |||
Restricted Cash and Cash Equivalents, Noncurrent, Asset, Statement of Financial Position [Extensible Enumeration] | Other assets |
Restructuring and Other Costs -
Restructuring and Other Costs - Schedule of the Company's Accrued Restructuring Balance (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 22, 2024 | |
Restructuring Cost and Reserve [Line Items] | ||||
Eliminated workforce percentage | 5% | 2% | 1% | |
Restructuring and other costs | $ 459 | $ 114 | $ 197 | |
Subsequent Event | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Future restructuring costs | $ 70 | |||
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other costs | 15 | 3 | 9 | |
Life Sciences Solutions | Total Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other costs | 105 | 30 | 129 | |
Analytical Instruments | Total Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other costs | 33 | 1 | 6 | |
Specialty Diagnostics | Total Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other costs | 11 | 68 | 18 | |
Laboratory Products and Biopharma Services | Total Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other costs | $ 295 | $ 12 | $ 35 |
Restructuring and Other Costs_2
Restructuring and Other Costs - Schedule of the Company's Accrued Restructuring Balance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 41 | $ 17 | $ 21 |
Net restructuring charges incurred | 194 | 68 | 37 |
Payments | (175) | (44) | (40) |
Currency translation | (1) | ||
Ending balance | 60 | 41 | 17 |
Other non-cash restructuring costs | 264 | $ 46 | 160 |
Impairment of intangible assets | 122 | ||
Cash compensation charges | $ 35 | ||
Impairment of long-lived assets | 126 | ||
Loss on contract termination | 26 | ||
Pre-acquisition litigation costs | 19 | ||
Impairment of disposal group | 93 | ||
Loss attributable to noncontrolling interest | $ 46 | ||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring and other costs |