WALTHAM, Mass., April 22, 2020 /PRNewswire/ -- Thermo Fisher
Scientific Inc. (NYSE: TMO), the world leader in serving science,
today reported its financial results for the first quarter ended
March 28, 2020.
First Quarter 2020 Highlights
- First quarter revenue increased 2% to $6.23 billion.
- First quarter GAAP diluted earnings per share (EPS) decreased
2% to $1.97.
- First quarter adjusted EPS increased 5% to $2.94.
- Announced agreement to acquire QIAGEN N.V. for $11.5 billion, expanding our specialty
diagnostics portfolio with attractive molecular diagnostics
capabilities and enhancing our life sciences offering with
innovative sample preparation technologies. Commenced permanent
financing by raising $3.5 billion
through U.S. and European bond offerings.
- Responded to global demand for COVID-19 diagnostic testing by
developing the Applied Biosystems TaqPath COVID-19 Combo Kit, which
received Emergency Use Authorization from the U.S. FDA, the CE mark
in Europe and subsequent
authorizations worldwide. Also introduced the Thermo Scientific
AcroMetrix Coronavirus 2019 RNA Control to validate molecular
diagnostic tests.
- Launched new products to support a range of customer
applications, including the highly automated Thermo Scientific
Vanquish Core HPLC system for increased throughput in
pharmaceutical, food and industrial testing, and the Thermo
Scientific Labtainer Pro bioprocess container to improve drug and
vaccine production.
- Repurchased $1.5 billion of stock
and increased our dividend by 16 percent.
Adjusted EPS, adjusted operating income, adjusted operating
margin and free cash flow are non-GAAP measures that exclude
certain items detailed later in this press release under the
heading "Use of Non-GAAP Financial Measures."
"We're clearly living in unprecedented times, and the COVID-19
pandemic has put a spotlight on the importance of the work we do at
Thermo Fisher Scientific," said Marc N.
Casper, chairman, president and chief executive officer of
the company. "Our leading scale and depth of capabilities are key
advantages in navigating this environment, and we were pleased to
deliver a very good first quarter. Our performance reflects the
amazing effort of our teams who continued to meet our customers'
needs and quickly mobilized to provide solutions to analyze,
diagnose and protect from the virus globally.
"As you would expect, we're managing the company appropriately
and our guiding principles are to keep our colleagues safe, support
our customers' important work and ensure we come through this
period an even stronger industry leader."
Casper added, "We were also very excited to announce our
agreement to acquire QIAGEN, which will enhance our customer value
proposition in life sciences and specialty diagnostics, including
infectious disease testing. QIAGEN's offerings and expertise are a
perfect complement to our capabilities, and we remain on track to
complete the transaction in the first half of 2021."
First Quarter 2020
Revenue for the quarter grew 2% to $6.23
billion in 2020, versus $6.12
billion in 2019. Organic revenue growth was 2%;
acquisitions, net of a divestiture, increased revenue by 1% and
currency translation decreased revenue by 1%.
GAAP Earnings Results
GAAP diluted EPS in the first quarter of 2020 decreased 2% to
$1.97, versus $2.02 in the same quarter last year. GAAP
operating income for the first quarter of 2020 was $0.91 billion, compared with $0.92 billion in the year-ago quarter. GAAP
operating margin was 14.5%, compared with 15.0% in the first
quarter of 2019.
Non-GAAP Earnings Results
Adjusted EPS in the first quarter of 2020 increased 5% to
$2.94, versus $2.81 in the first quarter of 2019. Adjusted
operating income for the first quarter of 2020 grew 1% compared
with the year-ago quarter. Adjusted operating margin was 22.1%,
compared with 22.4% in the first quarter of 2019.
2020 Guidance
Thermo Fisher announced on
April 6, 2020, that it withdrew its
2020 annual guidance due to the evolving COVID-19 pandemic and
related customer impact.
Segment Results
Management uses adjusted operating results to monitor and
evaluate performance of the company's four business segments, as
highlighted below. Since these results are used for this purpose,
they are also considered to be prepared in accordance with
GAAP.
Life Sciences Solutions Segment
In the first quarter of 2020, Life Sciences Solutions Segment
revenue grew 10% to $1.77 billion,
compared with revenue of $1.61
billion in the first quarter of 2019. Segment adjusted
operating margin increased to 38.0%, versus 34.9% in the 2019
quarter.
Analytical Instruments Segment
Analytical Instruments Segment revenue was $1.10 billion in the first quarter of 2020,
compared with revenue of $1.32
billion in the first quarter of 2019. Segment adjusted
operating margin was 15.5%, versus 21.3% in the 2019 quarter.
Specialty Diagnostics Segment
Specialty Diagnostics Segment revenue was flat at $0.96 billion in the first quarter of 2020,
compared with the first quarter of 2019, reflecting the divestiture
of the Anatomical Pathology business in June
2019. Segment adjusted operating margin was 24.7%, versus
25.3% in the 2019 quarter.
Laboratory Products and Services Segment
In the first quarter of 2020, Laboratory Products and Services
Segment revenue grew 9% to $2.73
billion, compared with revenue of $2.51 billion in the first quarter of 2019.
Segment adjusted operating margin was 10.8%, versus 11.3% in the
2019 quarter.
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance
with generally accepted accounting principles (GAAP), we use
certain non-GAAP financial measures, including adjusted EPS,
adjusted operating income and adjusted operating margin, which
exclude certain acquisition-related costs, including charges for
the sale of inventories revalued at the date of acquisition and
significant transaction costs; restructuring and other
costs/income; and amortization of acquisition-related intangible
assets. Adjusted EPS also excludes certain other gains and losses
that are either isolated or cannot be expected to occur again with
any predictability, tax provisions/benefits related to the previous
items, and the impact of significant tax audits or events. We
exclude the above items because they are outside of our normal
operations and/or, in certain cases, are difficult to forecast
accurately for future periods. We also use a non-GAAP measure, free
cash flow, which is operating cash flow, excluding net capital
expenditures to provide a view of the continuing operations'
ability to generate cash for use in acquisitions and other
investing and financing activities. We believe that the use of
non-GAAP measures helps investors to gain a better understanding of
our core operating results and future prospects, consistent with
how management measures and forecasts the company's performance,
especially when comparing such results to previous periods or
forecasts.
For example:
We exclude costs and tax effects associated with restructuring
activities, such as reducing overhead and consolidating facilities.
We believe that the costs related to these restructuring activities
are not indicative of our normal operating costs.
We exclude certain acquisition-related costs, including charges
for the sale of inventories revalued at the date of acquisition and
significant transaction costs. We exclude these costs because we do
not believe they are indicative of our normal operating costs.
We exclude the expense and tax effects associated with the
amortization of acquisition-related intangible assets because a
significant portion of the purchase price for acquisitions may be
allocated to intangible assets that have lives of 3 to 20 years.
Based on acquisitions closed through the end of the first quarter
of 2020, adjusted EPS will exclude approximately $3.31 of expense for the amortization of
acquisition-related intangible assets. Exclusion of the
amortization expense allows comparisons of operating results that
are consistent over time for both our newly acquired and long-held
businesses and with both acquisitive and non-acquisitive peer
companies.
We also exclude certain gains/losses and related tax effects,
the impact of significant tax audits or events (such as changes in
deferred taxes from enacted tax rate changes or the estimated
initial impacts of U.S. tax reform legislation), which are either
isolated or cannot be expected to occur again with any
predictability and that we believe are not indicative of our normal
operating gains and losses. For example, we exclude gains/losses
from items such as the sale of a business or real estate, gains or
losses on significant litigation-related matters, gains on
curtailments of pension plans and the early retirement of debt.
We also report free cash flow, which is operating cash flow,
excluding net capital expenditures to provide a view of the
continuing operations' ability to generate cash for use in
acquisitions and other investing and financing activities.
Thermo Fisher's management uses
these non-GAAP measures, in addition to GAAP financial measures, as
the basis for measuring the company's core operating performance
and comparing such performance to that of prior periods and to the
performance of our competitors. Such measures are also used by
management in their financial and operating decision-making and for
compensation purposes.
The non-GAAP financial measures of Thermo Fisher's results of operations and cash
flows included in this press release are not meant to be considered
superior to or a substitute for Thermo
Fisher's results of operations prepared in accordance with
GAAP. Reconciliations of such non-GAAP financial measures to the
most directly comparable GAAP financial measures are set forth in
the accompanying tables. Thermo
Fisher does not provide GAAP financial measures on a
forward-looking basis because we are unable to predict with
reasonable certainty and without unreasonable effort items such as
the timing and amount of future restructuring actions and
acquisition-related charges as well as gains or losses from sales
of real estate and businesses, the early retirement of debt and the
outcome of legal proceedings. The timing and amount of these items
are uncertain and could be material to Thermo Fisher's results computed in accordance
with GAAP.
Conference Call
Thermo Fisher Scientific will hold its earnings conference call
today, April 22, 2020, at
8:30 a.m. Eastern time. To listen,
dial (877) 273-7122 within the U.S. or (647) 689-5496 outside the
U.S. You may also listen to the call live on our website,
www.thermofisher.com, by clicking on "Investors." You will find
this press release, including the accompanying reconciliation of
non-GAAP financial measures and related information, in that
section of our website under "Financial Results." An audio archive
of the call will be available under "Webcasts and Presentations"
through Friday, May 29, 2020.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. is the world leader in serving
science, with annual revenue exceeding $25
billion. Our Mission is to enable our customers to make the
world healthier, cleaner and safer. Whether our customers are
accelerating life sciences research, solving complex analytical
challenges, improving patient diagnostics and therapies or
increasing productivity in their laboratories, we are here to
support them. Our global team of more than 75,000 colleagues
delivers an unrivaled combination of innovative technologies,
purchasing convenience and pharmaceutical services through our
industry-leading brands, including Thermo Scientific, Applied
Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services and
Patheon. For more information, please visit
www.thermofisher.com.
Safe Harbor Statement
The following constitutes a "Safe Harbor" statement under the
Private Securities Litigation Reform Act of 1995: This press
release contains forward-looking statements that involve a number
of risks and uncertainties, including statements about expected
revenue growth and long-term impacts of the COVID-19 pandemic.
Important factors that could cause actual results to differ
materially from those indicated by forward-looking statements
include risks and uncertainties relating to: the duration and
severity of the COVID-19 pandemic; the need to develop new products
and adapt to significant technological change; implementation of
strategies for improving growth; general economic conditions and
related uncertainties; dependence on customers' capital spending
policies and government funding policies; the effect of economic
and political conditions and exchange rate fluctuations on
international operations; use and protection of intellectual
property; the effect of changes in governmental regulations; and
the effect of laws and regulations governing government contracts,
as well as the possibility that expected benefits related to recent
or pending acquisitions, including our pending acquisition of
QIAGEN N.V., may not materialize as expected. Additional important
factors that could cause actual results to differ materially from
those indicated by such forward-looking statements are set forth in
our Annual Report on Form 10-K for the year ended December 31, 2019 and our Current Report on Form
8-K filed on March 23,
2020, which are on file with the SEC and available
in the "Investors" section of our website under the heading "SEC
Filings." While we may elect to update forward-looking statements
at some point in the future, we specifically disclaim any
obligation to do so, even if estimates change and, therefore, you
should not rely on these forward-looking statements as representing
our views as of any date subsequent to today.
Media Contact Information:
Karen Kirkwood
Phone: 781-622-1306
E-mail: karen.kirkwood@thermofisher.com
Website: www.thermofisher.com
Investor Contact Information:
Ken Apicerno
Phone: 781-622-1294
E-mail: ken.apicerno@thermofisher.com
Consolidated
Statement of Income (unaudited) (a)(b)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 28,
|
|
% of
|
|
March 30,
|
|
% of
|
(In millions except
per share amounts)
|
|
2020
|
|
Revenues
|
|
2019
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
6,230
|
|
|
|
|
$
|
6,125
|
|
|
|
Costs and Operating
Expenses:
|
|
|
|
|
|
|
|
|
Cost of revenues
(c)
|
|
3,365
|
|
|
54.0
|
%
|
|
3,293
|
|
|
53.8
|
%
|
Selling, general and
administrative expenses (d)
|
|
1,251
|
|
|
20.1
|
%
|
|
1,231
|
|
|
20.1
|
%
|
Amortization of
acquisition-related intangible assets
|
|
425
|
|
|
6.8
|
%
|
|
422
|
|
|
6.9
|
%
|
Research and
development expenses
|
|
245
|
|
|
3.9
|
%
|
|
248
|
|
|
4.0
|
%
|
Restructuring and
other costs, net (e)
|
|
38
|
|
|
0.6
|
%
|
|
11
|
|
|
0.2
|
%
|
|
|
5,324
|
|
|
85.5
|
%
|
|
5,205
|
|
|
85.0
|
%
|
Operating
Income
|
|
906
|
|
|
14.5
|
%
|
|
920
|
|
|
15.0
|
%
|
Interest
Income
|
|
36
|
|
|
|
|
67
|
|
|
|
Interest
Expense
|
|
(126)
|
|
|
|
|
(189)
|
|
|
|
Other Income, Net
(f)
|
|
12
|
|
|
|
|
19
|
|
|
|
Income Before Income
Taxes
|
|
828
|
|
|
|
|
817
|
|
|
|
Provision for Income
Taxes (g)
|
|
(40)
|
|
|
|
|
(2)
|
|
|
|
Net Income
|
|
$
|
788
|
|
|
12.6
|
%
|
|
$
|
815
|
|
|
13.3
|
%
|
|
|
|
|
|
|
|
|
|
Earnings per
Share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.99
|
|
|
|
|
$
|
2.04
|
|
|
|
Diluted
|
|
$
|
1.97
|
|
|
|
|
$
|
2.02
|
|
|
|
Weighted Average
Shares:
|
|
|
|
|
|
|
|
|
Basic
|
|
397
|
|
|
|
|
400
|
|
|
|
Diluted
|
|
400
|
|
|
|
|
403
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Operating Income and Adjusted Operating
Margin
|
|
|
|
|
|
|
|
|
GAAP Operating Income
(a)
|
|
$
|
906
|
|
|
14.5
|
%
|
|
$
|
920
|
|
|
15.0
|
%
|
Cost of Revenues
Charges (c)
|
|
2
|
|
|
0.1
|
%
|
|
6
|
|
|
0.1
|
%
|
Selling, General and
Administrative Charges, Net (d)
|
|
6
|
|
|
0.1
|
%
|
|
11
|
|
|
0.2
|
%
|
Restructuring and
Other Costs, Net (e)
|
|
38
|
|
|
0.6
|
%
|
|
11
|
|
|
0.2
|
%
|
Amortization of
Acquisition-related Intangible Assets
|
|
425
|
|
|
6.8
|
%
|
|
422
|
|
|
6.9
|
%
|
Adjusted Operating
Income (b)
|
|
$
|
1,377
|
|
|
22.1
|
%
|
|
$
|
1,370
|
|
|
22.4
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Net Income
|
|
|
|
|
|
|
|
|
GAAP Net Income
(a)
|
|
$
|
788
|
|
|
|
|
$
|
815
|
|
|
|
Cost of Revenues
Charges (c)
|
|
2
|
|
|
|
|
6
|
|
|
|
Selling, General and
Administrative Charges, Net (d)
|
|
6
|
|
|
|
|
11
|
|
|
|
Restructuring and
Other Costs, Net (e)
|
|
38
|
|
|
|
|
11
|
|
|
|
Amortization of
Acquisition-related Intangible Assets
|
|
425
|
|
|
|
|
422
|
|
|
|
Other Expense
(Income), Net (f)
|
|
14
|
|
|
|
|
(7)
|
|
|
|
Benefit from Income
Taxes (g)
|
|
(98)
|
|
|
|
|
(125)
|
|
|
|
Adjusted Net Income
(b)
|
|
$
|
1,175
|
|
|
|
|
$
|
1,133
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Earnings per Share
|
|
|
|
|
|
|
|
|
GAAP EPS
(a)
|
|
$
|
1.97
|
|
|
|
|
$
|
2.02
|
|
|
|
Cost of Revenues
Charges, Net of Tax (c)
|
|
0.01
|
|
|
|
|
0.01
|
|
|
|
Selling, General and
Administrative Charges, Net of Tax (d)
|
|
0.01
|
|
|
|
|
0.02
|
|
|
|
Restructuring and
Other Costs, Net of Tax (e)
|
|
0.07
|
|
|
|
|
0.02
|
|
|
|
Amortization of
Acquisition-related Intangible Assets, Net of Tax
|
|
0.83
|
|
|
|
|
0.81
|
|
|
|
Other Expense
(Income), Net of Tax (f)
|
|
0.03
|
|
|
|
|
(0.01)
|
|
|
|
Provision for (Benefit
from) Income Taxes (g)
|
|
0.02
|
|
|
|
|
(0.06)
|
|
|
|
Adjusted EPS
(b)
|
|
$
|
2.94
|
|
|
|
|
$
|
2.81
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Free Cash Flow
|
|
|
|
|
|
|
|
|
GAAP Net Cash Provided
by Operating Activities (a)
|
|
$
|
356
|
|
|
|
|
$
|
649
|
|
|
|
Purchases of Property,
Plant and Equipment
|
|
(253)
|
|
|
|
|
(201)
|
|
|
|
Proceeds from Sale of
Property, Plant and Equipment
|
|
4
|
|
|
|
|
6
|
|
|
|
Free Cash
Flow
|
|
$
|
107
|
|
|
|
|
$
|
454
|
|
|
|
Segment
Data
|
|
Three Months
Ended
|
|
|
March 28,
|
|
% of
|
|
March 30,
|
|
% of
|
(In
millions)
|
|
2020
|
|
Revenues
|
|
2019
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
Life Sciences
Solutions
|
|
$
|
1,774
|
|
|
28.5
|
%
|
|
$
|
1,607
|
|
|
26.2
|
%
|
Analytical
Instruments
|
|
1,101
|
|
|
17.7
|
%
|
|
1,322
|
|
|
21.6
|
%
|
Specialty
Diagnostics
|
|
958
|
|
|
15.4
|
%
|
|
957
|
|
|
15.6
|
%
|
Laboratory Products
and Services
|
|
2,730
|
|
|
43.8
|
%
|
|
2,513
|
|
|
41.0
|
%
|
Eliminations
|
|
(333)
|
|
|
-5.4
|
%
|
|
(274)
|
|
|
-4.4
|
%
|
Consolidated
Revenues
|
|
$
|
6,230
|
|
|
100.0
|
%
|
|
$
|
6,125
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
Operating Income
and Operating Margin
|
|
|
|
|
|
|
|
|
Life Sciences
Solutions
|
|
$
|
675
|
|
|
38.0
|
%
|
|
$
|
561
|
|
|
34.9
|
%
|
Analytical
Instruments
|
|
171
|
|
|
15.5
|
%
|
|
282
|
|
|
21.3
|
%
|
Specialty
Diagnostics
|
|
236
|
|
|
24.7
|
%
|
|
242
|
|
|
25.3
|
%
|
Laboratory Products
and Services
|
|
295
|
|
|
10.8
|
%
|
|
285
|
|
|
11.3
|
%
|
Subtotal Reportable
Segments
|
|
1,377
|
|
|
22.1
|
%
|
|
1,370
|
|
|
22.4
|
%
|
|
|
|
|
|
|
|
|
|
Cost of Revenues
Charges (c)
|
|
(2)
|
|
|
-0.1
|
%
|
|
(6)
|
|
|
-0.1
|
%
|
Selling, General and
Administrative Charges, Net (d)
|
|
(6)
|
|
|
-0.1
|
%
|
|
(11)
|
|
|
-0.2
|
%
|
Restructuring and
Other Costs, Net (e)
|
|
(38)
|
|
|
-0.6
|
%
|
|
(11)
|
|
|
-0.2
|
%
|
Amortization of
Acquisition-related Intangible Assets
|
|
(425)
|
|
|
-6.8
|
%
|
|
(422)
|
|
|
-6.9
|
%
|
GAAP Operating Income
(a)
|
|
$
|
906
|
|
|
14.5
|
%
|
|
$
|
920
|
|
|
15.0
|
%
|
|
(a) "GAAP" (reported)
results were determined in accordance with U.S. generally accepted
accounting principles (GAAP).
|
|
(b) Adjusted results
are non-GAAP measures and, for income measures, exclude certain
charges to cost of revenues (see note (c) for details); certain
credits/charges to selling, general and administrative expenses
(see note (d) for details); amortization of acquisition-related
intangible assets; restructuring and other costs, net (see note (e)
for details); certain other gains or losses that are either
isolated or cannot be expected to occur again with any
predictability (see note (f) for details); and the tax consequences
of the preceding items and certain other tax items (see note (g)
for details).
|
|
(c) Reported results
in 2020 include $2 of charges to conform the accounting policies of
a recently acquired business with the company's accounting
policies. Reported results in 2019 include $6 of charges for the
sale of inventories revalued at the date of acquisition.
|
|
(d) Reported results
in 2020 and 2019 include i) $6 and $11, respectively, of certain
third-party expenses, principally transaction/integration costs
related to acquisitions and a divestiture.
|
|
(e) Reported results
in 2020 and 2019 include restructuring and other costs, net,
consisting principally of severance, abandoned facility and other
expenses of headcount reductions within several businesses and real
estate consolidations.
|
|
(f) Reported results
in 2020 include $17 of costs for the Qiagen acquisition, primarily
for entering hedging contracts and amortization of bridge loan
commitments fees, and $1 of net charges for the
settlement/curtailment of pension plans, offset in part by $4 of
gains from investments. Reported results in 2019 include $7 of
gains from investments.
|
|
(g) Reported
provision for income taxes includes i) $104 and $102 of incremental
tax benefit in 2020 and 2019, respectively, for the pre-tax
reconciling items between GAAP and adjusted net income; ii) $6 and
$4 in 2020 and 2019, respectively, of incremental tax provision
from adjusting the company's non-U.S. deferred tax balances as a
result of tax rate changes; and iii) $27 of incremental tax benefit
in 2019, to adjust the impacts of U.S. tax reform legislation based
on new guidance/regulations issued during the period.
|
|
Notes:
|
Consolidated
depreciation expense is $149 and $133 in 2020 and 2019,
respectively.
|
Condensed
Consolidated Balance Sheet (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
March 28,
|
|
December
31,
|
(In
millions)
|
|
2020
|
|
2019
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
2,981
|
|
|
$
|
2,399
|
|
Accounts receivable,
net
|
|
4,508
|
|
|
4,349
|
|
Inventories
|
|
3,454
|
|
|
3,370
|
|
Other current
assets
|
|
1,795
|
|
|
1,775
|
|
Total current
assets
|
|
12,738
|
|
|
11,893
|
|
Property, Plant and
Equipment, Net
|
|
4,736
|
|
|
4,749
|
|
Acquisition-related
Intangible Assets
|
|
13,543
|
|
|
14,014
|
|
Other
Assets
|
|
2,057
|
|
|
2,011
|
|
Goodwill
|
|
25,614
|
|
|
25,714
|
|
Total
Assets
|
|
$
|
58,688
|
|
|
$
|
58,381
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Short-term obligations
and current maturities of long-term obligations
|
|
$
|
738
|
|
|
$
|
676
|
|
Other current
liabilities
|
|
4,762
|
|
|
5,521
|
|
Total current
liabilities
|
|
5,500
|
|
|
6,197
|
|
Other Long-term
Liabilities
|
|
5,398
|
|
|
5,433
|
|
Long-term
Obligations
|
|
19,231
|
|
|
17,076
|
|
Total Shareholders'
Equity
|
|
28,559
|
|
|
29,675
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
|
58,688
|
|
|
$
|
58,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statement of Cash Flows (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 28,
|
|
March 30,
|
(In
millions)
|
|
2020
|
|
2019
|
|
|
|
|
|
Operating
Activities
|
|
|
|
|
Net income
|
|
$
|
788
|
|
|
$
|
815
|
|
|
|
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
574
|
|
|
555
|
|
Change in deferred
income taxes
|
|
(41)
|
|
|
(106)
|
|
Other non-cash
expenses, net
|
|
110
|
|
|
62
|
|
Changes in assets and
liabilities, excluding the effects of acquisitions and
disposition
|
|
(1,075)
|
|
|
(677)
|
|
Net cash provided by
operating activities
|
|
356
|
|
|
649
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Acquisitions, net of
cash acquired
|
|
(4)
|
|
|
(1)
|
|
Purchases of property,
plant and equipment
|
|
(253)
|
|
|
(201)
|
|
Proceeds from sale of
property, plant and equipment
|
|
4
|
|
|
6
|
|
Other investing
activities, net
|
|
(7)
|
|
|
15
|
|
Net cash used in
investing activities
|
|
(260)
|
|
|
(181)
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Net proceeds from
issuance of debt
|
|
2,185
|
|
|
—
|
|
Repayment of
debt
|
|
(1)
|
|
|
(1)
|
|
Net proceeds from
issuance of commercial paper
|
|
382
|
|
|
100
|
|
Repayment of
commercial paper
|
|
(321)
|
|
|
(787)
|
|
Purchases of company
common stock
|
|
(1,500)
|
|
|
(750)
|
|
Dividends
paid
|
|
(76)
|
|
|
(68)
|
|
Net proceeds from
issuance of company common stock under employee stock
plans
|
|
48
|
|
|
81
|
|
Other financing
activities, net
|
|
(98)
|
|
|
—
|
|
Net cash provided by
(used in) financing activities
|
|
619
|
|
|
(1,425)
|
|
|
|
|
|
|
Exchange Rate Effect
on Cash
|
|
(127)
|
|
|
(32)
|
|
Increase (Decrease)
in Cash, Cash Equivalents and Restricted Cash
|
|
588
|
|
|
(989)
|
|
Cash, Cash
Equivalents and Restricted Cash at Beginning of Period
|
|
2,422
|
|
|
2,117
|
|
Cash, Cash
Equivalents and Restricted Cash at End of Period
|
|
$
|
3,010
|
|
|
$
|
1,128
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
(a)
|
|
$
|
107
|
|
|
$
|
454
|
|
|
|
|
|
|
(a) Free cash flow is
net cash provided by operating activities less net purchases of
property, plant and equipment.
|
View original
content:http://www.prnewswire.com/news-releases/thermo-fisher-scientific-reports-first-quarter-2020-results-301044750.html
SOURCE Thermo Fisher Scientific