Delaware | 1-8002 | 04-2209186 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) |
168 Third Avenue | ||||
Waltham, Massachusetts | 02451 | |||
(Address of principal executive offices) | (Zip Code) |
(781) 622-1000 | ||
(Registrant’s telephone number including area code) |
THERMO FISHER SCIENTIFIC INC. | |||
Date: | July 26, 2017 | By: | /s/ Peter E. Hornstra |
Peter E. Hornstra | |||
Vice President and Chief Accounting Officer |
FOR IMMEDIATE RELEASE | |
Media Contact Information: Karen Kirkwood | Investor Contact Information: Ken Apicerno |
Phone: 781-622-1306 | Phone: 781-622-1294 |
E-mail: karen.kirkwood@thermofisher.com | E-mail: ken.apicerno@thermofisher.com |
Website: www.thermofisher.com |
• | Reported revenue of $4.99 billion. |
• | Reported GAAP diluted earnings per share (EPS) of $1.56. |
• | Strengthened innovation leadership, highlighted by a new Q Exactive Orbitrap mass spectrometer to advance protein research, the new SeqStudio Genetic Analyzer for a range of sequencing applications, and FDA clearance of our B.R.A.H.M.S. PCT assay to support antibiotic stewardship. |
• | Made significant progress in precision medicine initiatives, including receiving FDA pre-market approval for our Oncomine Dx Target Test - the first next-generation sequencing-based companion diagnostic for non-small cell lung cancer. |
• | Opened Center of Excellence for electron microscopy in Saudi Arabia to enable scientific collaboration in the region and continue to increase our presence in fast-growing emerging markets. |
• | Announced agreement to acquire Patheon for $7.2 billion, gaining entry into the attractive contract development and manufacturing organization (CDMO) market and significantly enhancing our value proposition for pharma and biotech customers. |
Consolidated Statement of Income (unaudited) (a)(b) | ||||||||||||||
Three Months Ended | ||||||||||||||
July 1, | % of | July 2, | % of | |||||||||||
(In millions except per share amounts) | 2017 | Revenues | 2016 | Revenues | ||||||||||
Revenues | $ | 4,990.0 | $ | 4,535.2 | ||||||||||
Costs and Operating Expenses: | ||||||||||||||
Cost of revenues (c) | 2,578.3 | 51.7 | % | 2,349.4 | 51.8 | % | ||||||||
Selling, general and administrative expenses (d) | 1,035.2 | 20.7 | % | 992.4 | 21.9 | % | ||||||||
Amortization of acquisition-related intangible assets | 380.9 | 7.6 | % | 338.0 | 7.4 | % | ||||||||
Research and development expenses | 221.6 | 4.4 | % | 182.4 | 4.0 | % | ||||||||
Restructuring and other costs, net (e) | 22.5 | 0.5 | % | 35.4 | 0.8 | % | ||||||||
4,238.5 | 84.9 | % | 3,897.6 | 85.9 | % | |||||||||
Operating Income | 751.5 | 15.1 | % | 637.6 | 14.1 | % | ||||||||
Interest Income | 17.8 | 13.2 | ||||||||||||
Interest Expense | (133.6 | ) | (118.8 | ) | ||||||||||
Other Expense, Net (f) | (10.1 | ) | (10.9 | ) | ||||||||||
Income Before Income Taxes | 625.6 | 521.1 | ||||||||||||
Provision for Income Taxes (g) | (13.4 | ) | (4.3 | ) | ||||||||||
Income from Continuing Operations | 612.2 | 516.8 | ||||||||||||
Loss from Discontinued Operations | (0.6 | ) | (0.2 | ) | ||||||||||
Net Income | $ | 611.6 | 12.3 | % | $ | 516.6 | 11.4 | % | ||||||
Earnings per Share from Continuing Operations: | ||||||||||||||
Basic | $ | 1.57 | $ | 1.31 | ||||||||||
Diluted | $ | 1.56 | $ | 1.30 | ||||||||||
Earnings per Share: | ||||||||||||||
Basic | $ | 1.57 | $ | 1.31 | ||||||||||
Diluted | $ | 1.56 | $ | 1.30 | ||||||||||
Weighted Average Shares: | ||||||||||||||
Basic | 390.0 | 393.9 | ||||||||||||
Diluted | 393.3 | 396.7 | ||||||||||||
Reconciliation of Adjusted Operating Income and Adjusted Operating Margin | ||||||||||||||
GAAP Operating Income (a) | $ | 751.5 | 15.1 | % | $ | 637.6 | 14.1 | % | ||||||
Cost of Revenues Charges (c) | 0.7 | 0.0 | % | 17.4 | 0.4 | % | ||||||||
Selling, General and Administrative Charges, Net (d) | 6.8 | 0.1 | % | 3.8 | 0.1 | % | ||||||||
Restructuring and Other Costs, Net (e) | 22.5 | 0.5 | % | 35.4 | 0.8 | % | ||||||||
Amortization of Acquisition-related Intangible Assets | 380.9 | 7.6 | % | 338.0 | 7.4 | % | ||||||||
Adjusted Operating Income (b) | $ | 1,162.4 | 23.3 | % | $ | 1,032.2 | 22.8 | % | ||||||
Reconciliation of Adjusted Net Income | ||||||||||||||
GAAP Net Income (a) | $ | 611.6 | 12.3 | % | $ | 516.6 | 11.4 | % | ||||||
Cost of Revenues Charges (c) | 0.7 | 0.0 | % | 17.4 | 0.4 | % | ||||||||
Selling, General and Administrative Charges, Net (d) | 6.8 | 0.1 | % | 3.8 | 0.1 | % | ||||||||
Restructuring and Other Costs, Net (e) | 22.5 | 0.5 | % | 35.4 | 0.8 | % | ||||||||
Amortization of Acquisition-related Intangible Assets | 380.9 | 7.6 | % | 338.0 | 7.4 | % | ||||||||
Other Expense, Net (f) | 2.8 | 0.1 | % | 16.8 | 0.4 | % | ||||||||
Provision for Income Taxes (g) | (123.1 | ) | -2.5 | % | (121.7 | ) | -2.7 | % | ||||||
Discontinued Operations, Net of Tax | 0.6 | 0.0 | % | 0.2 | 0.0 | % | ||||||||
Adjusted Net Income (b) | $ | 902.8 | 18.1 | % | $ | 806.5 | 17.8 | % | ||||||
Reconciliation of Adjusted Earnings per Share | ||||||||||||||
GAAP EPS (a) | $ | 1.56 | $ | 1.30 | ||||||||||
Cost of Revenues Charges, Net of Tax (c) | — | 0.03 | ||||||||||||
Selling, General and Administrative Charges, Net of Tax (d) | 0.01 | 0.01 | ||||||||||||
Restructuring and Other Costs, Net of Tax (e) | 0.04 | 0.06 | ||||||||||||
Amortization of Acquisition-related Intangible Assets, Net of Tax | 0.68 | 0.60 | ||||||||||||
Other Expense, Net of Tax (f) | 0.01 | 0.03 | ||||||||||||
Provision for Income Taxes (g) | — | — | ||||||||||||
Discontinued Operations, Net of Tax | — | — | ||||||||||||
Adjusted EPS (b) | $ | 2.30 | $ | 2.03 | ||||||||||
Reconciliation of Free Cash Flow | ||||||||||||||
GAAP Net Cash Provided by Operating Activities (a) | $ | 848.4 | $ | 913.6 | ||||||||||
Net Cash Used in Discontinued Operations | 0.2 | 0.4 | ||||||||||||
Purchases of Property, Plant and Equipment | (88.0 | ) | (114.8 | ) | ||||||||||
Proceeds from Sale of Property, Plant and Equipment | 1.2 | 15.7 | ||||||||||||
Free Cash Flow | $ | 761.8 | $ | 814.9 |
Segment Data | Three Months Ended | |||||||||||||
July 1, | % of | July 2, | % of | |||||||||||
(In millions) | 2017 | Revenues | 2016 | Revenues | ||||||||||
Revenues | ||||||||||||||
Life Sciences Solutions | $ | 1,404.6 | 28.1 | % | $ | 1,367.9 | 30.2 | % | ||||||
Analytical Instruments | 1,165.8 | 23.4 | % | 793.9 | 17.5 | % | ||||||||
Specialty Diagnostics | 861.8 | 17.3 | % | 851.3 | 18.8 | % | ||||||||
Laboratory Products and Services | 1,792.5 | 35.9 | % | 1,719.7 | 37.9 | % | ||||||||
Eliminations | (234.7 | ) | -4.7 | % | (197.6 | ) | -4.4 | % | ||||||
Consolidated Revenues | $ | 4,990.0 | 100.0 | % | $ | 4,535.2 | 100.0 | % | ||||||
Operating Income and Operating Margin | ||||||||||||||
Life Sciences Solutions | $ | 448.1 | 31.9 | % | $ | 389.6 | 28.5 | % | ||||||
Analytical Instruments | 232.6 | 20.0 | % | 144.9 | 18.3 | % | ||||||||
Specialty Diagnostics | 235.0 | 27.3 | % | 237.9 | 27.9 | % | ||||||||
Laboratory Products and Services | 246.7 | 13.8 | % | 259.8 | 15.1 | % | ||||||||
Subtotal Reportable Segments | 1,162.4 | 23.3 | % | 1,032.2 | 22.8 | % | ||||||||
Cost of Revenues Charges (c) | (0.7 | ) | 0.0 | % | (17.4 | ) | -0.4 | % | ||||||
Selling, General and Administrative Charges, Net (d) | (6.8 | ) | -0.1 | % | (3.8 | ) | -0.1 | % | ||||||
Restructuring and Other Costs, Net (e) | (22.5 | ) | -0.5 | % | (35.4 | ) | -0.8 | % | ||||||
Amortization of Acquisition-related Intangible Assets | (380.9 | ) | -7.6 | % | (338.0 | ) | -7.4 | % | ||||||
GAAP Operating Income (a) | $ | 751.5 | 15.1 | % | $ | 637.6 | 14.1 | % | ||||||
(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 2017 and 2016 include i) $0.3 and $16.2, respectively, of charges for the sale of inventories revalued at the date of acquisition and ii) $0.4 and $1.7, respectively, of accelerated depreciation on manufacturing assets to be abandoned due to facility consolidations. Reported results in 2016 include other credits of $0.5. | ||||||||||||||
(d) Reported results in 2017 and 2016 include i) $6.4 and $3.1, respectively, of third-party transaction/integration costs primarily related to the pending acquisition of Patheon and other recently completed acquisitions; and ii) $0.4 and $2.5, respectively, of accelerated depreciation on fixed assets to be abandoned due to integration synergies. Reported results in 2016 also include $1.8 of credits from changes in estimates of contingent acquisition consideration. | ||||||||||||||
(e) Reported results in 2017 and 2016 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. Reported results in 2017 include $1.8 of charges for the settlement of retirement plans. Reported results in 2016 include $7.8 of charges for litigation at acquired businesses, $6.8 of environmental remediation costs and $2.1 of gains on sales of real estate and settlement of a retirement plan. | ||||||||||||||
(f) Reported results in 2017 include a $3.4 charge related to fees paid to obtain bridge financing commitments for the pending acquisition of Patheon and $0.7 of losses on the early extinguishment of debt, offset in part by $1.3 of net gains on investments. Reported results in 2016 include $10.0 of charges related to fees paid to obtain bridge financing commitments for the acquisition of FEI, $6.2 of losses on the early extinguishment of debt and $0.6 of amortization of acquisition-related intangible assets of the company's equity-method investments. | ||||||||||||||
(g) Reported provision for income taxes includes i) $124.1 and $121.5 of incremental tax benefit in 2017 and 2016, respectively, for the pre-tax reconciling items between GAAP and adjusted net income; ii) $1.0 of incremental tax provision in 2017 due to an audit settlement; and iii) $0.2 of incremental tax benefit in 2016 from adjusting the company's deferred tax balances as a result of tax rate changes. | ||||||||||||||
Notes: | ||||||||||||||
Consolidated depreciation expense is $97.3 and $97.1 in 2017 and 2016, respectively. | ||||||||||||||
Consolidated equity compensation expense included in both reported and adjusted results is $38.2 and $33.7 in 2017 and 2016, respectively. | ||||||||||||||
Consolidated Statement of Income (unaudited) (a)(b) | ||||||||||||||
Six Months Ended | ||||||||||||||
July 1, | % of | July 2, | % of | |||||||||||
(In millions except per share amounts) | 2017 | Revenues | 2016 | Revenues | ||||||||||
Revenues | $ | 9,755.0 | $ | 8,830.0 | ||||||||||
Costs and Operating Expenses: | ||||||||||||||
Cost of revenues (c) | 5,025.5 | 51.5 | % | 4,585.3 | 51.9 | % | ||||||||
Selling, general and administrative expenses (d) | 2,124.2 | 21.8 | % | 1,984.3 | 22.5 | % | ||||||||
Amortization of acquisition-related intangible assets | 748.4 | 7.7 | % | 660.0 | 7.5 | % | ||||||||
Research and development expenses | 437.0 | 4.5 | % | 358.9 | 4.1 | % | ||||||||
Restructuring and other costs, net (e) | 46.0 | 0.4 | % | 86.0 | 1.0 | % | ||||||||
8,381.1 | 85.9 | % | 7,674.5 | 86.9 | % | |||||||||
Operating Income | 1,373.9 | 14.1 | % | 1,155.5 | 13.1 | % | ||||||||
Interest Income | 36.3 | 24.0 | ||||||||||||
Interest Expense | (269.0 | ) | (225.0 | ) | ||||||||||
Other Expense, Net (f) | (12.7 | ) | (10.4 | ) | ||||||||||
Income Before Income Taxes | 1,128.5 | 944.1 | ||||||||||||
Benefit from (Provision for) Income Taxes (g) | 35.1 | (25.0 | ) | |||||||||||
Income from Continuing Operations | 1,163.6 | 919.1 | ||||||||||||
Loss from Discontinued Operations, Net of Tax | (0.6 | ) | (0.3 | ) | ||||||||||
Net Income | $ | 1,163.0 | 11.9 | % | $ | 918.8 | 10.4 | % | ||||||
Earnings per Share from Continuing Operations: | ||||||||||||||
Basic | $ | 2.98 | $ | 2.33 | ||||||||||
Diluted | $ | 2.96 | $ | 2.31 | ||||||||||
Earnings per Share: | ||||||||||||||
Basic | $ | 2.98 | $ | 2.33 | ||||||||||
Diluted | $ | 2.95 | $ | 2.31 | ||||||||||
Weighted Average Shares: | ||||||||||||||
Basic | 390.5 | 394.9 | ||||||||||||
Diluted | 393.7 | 397.7 | ||||||||||||
Reconciliation of Adjusted Operating Income and Adjusted Operating Margin | ||||||||||||||
GAAP Operating Income (a) | $ | 1,373.9 | 14.1 | % | $ | 1,155.5 | 13.1 | % | ||||||
Cost of Revenues Charges (c) | 31.6 | 0.3 | % | 28.0 | 0.3 | % | ||||||||
Selling, General and Administrative Charges, Net (d) | 38.3 | 0.4 | % | 32.7 | 0.3 | % | ||||||||
Restructuring and Other Costs, Net (e) | 46.0 | 0.4 | % | 86.0 | 1.0 | % | ||||||||
Amortization of Acquisition-related Intangible Assets | 748.4 | 7.7 | % | 660.0 | 7.5 | % | ||||||||
Adjusted Operating Income (b) | $ | 2,238.2 | 22.9 | % | $ | 1,962.2 | 22.2 | % | ||||||
Reconciliation of Adjusted Net Income | ||||||||||||||
GAAP Net Income (a) | $ | 1,163.0 | 11.9 | % | $ | 918.8 | 10.4 | % | ||||||
Cost of Revenues Charges (c) | 31.6 | 0.3 | % | 28.0 | 0.3 | % | ||||||||
Selling, General and Administrative Charges, Net (d) | 38.3 | 0.4 | % | 32.7 | 0.3 | % | ||||||||
Restructuring and Other Costs, Net (e) | 46.0 | 0.4 | % | 86.0 | 1.0 | % | ||||||||
Amortization of Acquisition-related Intangible Assets | 748.4 | 7.7 | % | 660.0 | 7.5 | % | ||||||||
Other Expense, Net (f) | 0.2 | 0.0 | % | 15.5 | 0.2 | % | ||||||||
Provision for Income Taxes (g) | (305.1 | ) | -3.1 | % | (217.7 | ) | -2.4 | % | ||||||
Discontinued Operations, Net of Tax | 0.6 | 0.1 | % | 0.3 | 0.0 | % | ||||||||
Adjusted Net Income (b) | $ | 1,723.0 | 17.7 | % | $ | 1,523.6 | 17.3 | % | ||||||
Reconciliation of Adjusted Earnings per Share | ||||||||||||||
GAAP EPS (a) | $ | 2.95 | $ | 2.31 | ||||||||||
Cost of Revenues Charges, Net of Tax (c) | 0.05 | 0.05 | ||||||||||||
Selling, General and Administrative Charges, Net of Tax (d) | 0.07 | 0.06 | ||||||||||||
Restructuring and Other Costs, Net of Tax (e) | 0.08 | 0.15 | ||||||||||||
Amortization of Acquisition-related Intangible Assets, Net of Tax | 1.38 | 1.21 | ||||||||||||
Other Expense, Net of Tax (f) | — | 0.03 | ||||||||||||
(Benefit from) Provision for Income Taxes (g) | (0.15 | ) | 0.02 | |||||||||||
Discontinued Operations, Net of Tax | — | — | ||||||||||||
Adjusted EPS (b) | $ | 4.38 | $ | 3.83 | ||||||||||
Reconciliation of Free Cash Flow | ||||||||||||||
GAAP Net Cash Provided by Operating Activities (a) | $ | 1,209.9 | $ | 1,248.3 | ||||||||||
Net Cash Used in Discontinued Operations | 1.1 | 1.9 | ||||||||||||
Purchases of Property, Plant and Equipment | (181.4 | ) | (229.9 | ) | ||||||||||
Proceeds from Sale of Property, Plant and Equipment | 2.3 | 21.7 | ||||||||||||
Free Cash Flow | $ | 1,031.9 | $ | 1,042.0 |
Segment Data | Six Months Ended | |||||||||||||
July 1, | % of | July 2, | % of | |||||||||||
(In millions) | 2017 | Revenues | 2016 | Revenues | ||||||||||
Revenues | ||||||||||||||
Life Sciences Solutions | $ | 2,768.1 | 28.4 | % | $ | 2,585.6 | 29.3 | % | ||||||
Analytical Instruments | 2,217.8 | 22.7 | % | 1,553.2 | 17.6 | % | ||||||||
Specialty Diagnostics | 1,728.2 | 17.7 | % | 1,705.9 | 19.3 | % | ||||||||
Laboratory Products and Services | 3,491.5 | 35.8 | % | 3,368.5 | 38.1 | % | ||||||||
Eliminations | (450.6 | ) | -4.6 | % | (383.2 | ) | -4.3 | % | ||||||
Consolidated Revenues | $ | 9,755.0 | 100.0 | % | $ | 8,830.0 | 100.0 | % | ||||||
Operating Income and Operating Margin | ||||||||||||||
Life Sciences Solutions | $ | 882.0 | 31.9 | % | $ | 740.9 | 28.7 | % | ||||||
Analytical Instruments | 424.4 | 19.1 | % | 256.6 | 16.5 | % | ||||||||
Specialty Diagnostics | 468.9 | 27.1 | % | 468.0 | 27.4 | % | ||||||||
Laboratory Products and Services | 462.9 | 13.3 | % | 496.7 | 14.7 | % | ||||||||
Subtotal Reportable Segments | 2,238.2 | 22.9 | % | 1,962.2 | 22.2 | % | ||||||||
Cost of Revenues Charges (c) | (31.6 | ) | -0.3 | % | (28.0 | ) | -0.3 | % | ||||||
Selling, General and Administrative Charges, Net (d) | (38.3 | ) | -0.4 | % | (32.7 | ) | -0.3 | % | ||||||
Restructuring and Other Costs, Net (e) | (46.0 | ) | -0.4 | % | (86.0 | ) | -1.0 | % | ||||||
Amortization of Acquisition-related Intangible Assets | (748.4 | ) | -7.7 | % | (660.0 | ) | -7.5 | % | ||||||
GAAP Operating Income (a) | $ | 1,373.9 | 14.1 | % | $ | 1,155.5 | 13.1 | % | ||||||
(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 2017 and 2016 include i) $31.0 and $22.4, respectively, of charges for the sale of inventories revalued at the date of acquisition and ii) $0.6 and $1.7, respectively, of accelerated depreciation on manufacturing assets to be abandoned due to facility consolidations. Reported results in 2016 also include charges of $3.9 to conform the accounting policies of Affymetrix with the company's accounting policies. | ||||||||||||||
(d) Reported results in 2017 and 2016 include i) $11.9 and $26.7, respectively, of third-party transaction/integration costs primarily related to recently completed acquisitions and the pending acquisition of Patheon; ii) $25.4 and $(1.9), respectively, of charges/(credits) from changes in estimates of contingent acquisition consideration; and iii) $1.0 and $7.9, respectively, of accelerated depreciation on fixed assets to be abandoned due to integration synergies. | ||||||||||||||
(e) Reported results in 2017 and 2016 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. Reported results in 2017 include $3.5 of litigation charges and $1.8 of charges for the settlement of retirement plans. Reported results in 2016 include $6.8 of environment remediation costs, $5.5 of net gains on litigation at acquired businesses and $5.0 of gains on sales of real estate and settlement of a retirement plan. | ||||||||||||||
(f) Reported results in 2017 include a $3.4 charge related to fees paid to obtain bridge financing commitments for the pending acquisition of Patheon and $3.9 of losses on extinguishment of debt, offset in part by $7.1 of net gains from investments. Reported results in 2016 include $10.0 of charges related to fees paid to obtain bridge financing commitments for the acquisition of FEI, $6.2 of losses on the early extinguishment of debt and $1.1 of amortization of acquisition-related intangible assets of the company's equity-method investments, offset in part by $1.8 of net gains from investments. | ||||||||||||||
(g) Reported provision for income taxes includes i) $243.3 and $226.5 of incremental tax benefit in 2017 and 2016, respectively, for the pre-tax reconciling items between GAAP and adjusted net income; ii) $62.8 and $(8.8) of incremental tax benefit (provision) in 2017 and 2016, respectively, from adjusting the company's deferred tax balances as a result of tax rate changes and iii) $1.0 of incremental tax provision in 2017 due to an audit settlement. | ||||||||||||||
Notes: | ||||||||||||||
Consolidated depreciation expense is $194.3 and $191.2 in 2017 and 2016, respectively. | ||||||||||||||
Consolidated equity compensation expense included in both reported and adjusted results is $71.2 and $67.1 in 2017 and 2016, respectively. | ||||||||||||||
Condensed Consolidated Balance Sheet (unaudited) | ||||||||
July 1, | December 31, | |||||||
(In millions) | 2017 | 2016 | ||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 611.0 | $ | 786.2 | ||||
Accounts receivable, net | 3,258.3 | 3,048.5 | ||||||
Inventories | 2,422.2 | 2,213.3 | ||||||
Other current assets | 1,161.0 | 973.0 | ||||||
Total current assets | 7,452.5 | 7,021.0 | ||||||
Property, Plant and Equipment, Net | 2,599.7 | 2,577.8 | ||||||
Acquisition-related Intangible Assets | 13,575.6 | 13,969.0 | ||||||
Other Assets | 1,040.4 | 1,011.9 | ||||||
Goodwill | 21,845.5 | 21,327.8 | ||||||
Total Assets | $ | 46,513.7 | $ | 45,907.5 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current Liabilities: | ||||||||
Short-term obligations and current maturities of long-term obligations | $ | 1,540.4 | $ | 1,255.5 | ||||
Other current liabilities | 3,535.4 | 3,610.3 | ||||||
Total current liabilities | 5,075.8 | 4,865.8 | ||||||
Other Long-term Liabilities | 3,790.6 | 4,130.0 | ||||||
Long-term Obligations | 15,255.7 | 15,372.4 | ||||||
Total Shareholders' Equity | 22,391.6 | 21,539.3 | ||||||
Total Liabilities and Shareholders' Equity | $ | 46,513.7 | $ | 45,907.5 |
Condensed Consolidated Statement of Cash Flows (unaudited) | ||||||||
Six Months Ended | ||||||||
July 1, | July 2, | |||||||
(In millions) | 2017 | 2016 | ||||||
Operating Activities | ||||||||
Net income | $ | 1,163.0 | $ | 918.8 | ||||
Loss from discontinued operations | 0.6 | 0.3 | ||||||
Income from continuing operations | 1,163.6 | 919.1 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 942.7 | 851.2 | ||||||
Change in deferred income taxes | (298.8 | ) | (304.5 | ) | ||||
Other non-cash expenses, net | 147.6 | 121.2 | ||||||
Changes in assets and liabilities, excluding the effects of acquisitions and dispositions | (744.1 | ) | (336.8 | ) | ||||
Net cash provided by continuing operations | 1,211.0 | 1,250.2 | ||||||
Net cash used in discontinued operations | (1.1 | ) | (1.9 | ) | ||||
Net cash provided by operating activities | 1,209.9 | 1,248.3 | ||||||
Investing Activities | ||||||||
Acquisitions, net of cash acquired | (307.0 | ) | (1,033.0 | ) | ||||
Purchases of property, plant and equipment | (181.4 | ) | (229.9 | ) | ||||
Proceeds from sale of property, plant and equipment | 2.3 | 21.7 | ||||||
Other investing activities, net | 8.8 | 5.9 | ||||||
Net cash used in investing activities | (477.3 | ) | (1,235.3 | ) | ||||
Financing Activities | ||||||||
Net proceeds from issuance of debt | 518.9 | 1,985.6 | ||||||
Repayment of debt | (1,328.9 | ) | (1,638.0 | ) | ||||
Net proceeds from issuance of commercial paper | 4,487.1 | 3,509.5 | ||||||
Repayment of commercial paper | (3,990.7 | ) | (2,573.4 | ) | ||||
Purchases of company common stock | (750.0 | ) | (1,000.0 | ) | ||||
Dividends paid | (117.8 | ) | (119.4 | ) | ||||
Net proceeds from issuance of company common stock under employee stock plans | 99.1 | 78.4 | ||||||
Other financing activities, net | — | (13.6 | ) | |||||
Net cash (used in) provided by financing activities | (1,082.3 | ) | 229.1 | |||||
Exchange Rate Effect on Cash | 168.2 | (18.6 | ) | |||||
(Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | (181.5 | ) | 223.5 | |||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 810.8 | 466.3 | ||||||
Cash, Cash Equivalents and Restricted Cash at End of Period | $ | 629.3 | $ | 689.8 | ||||
Free Cash Flow (a) | $ | 1,031.9 | $ | 1,042.0 | ||||
(a) Free cash flow is net cash provided by operating activities of continuing operations less net purchases of property, plant and equipment. | ||||||||
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end