Business Segment and Geographical Information

12 Months Ended

Dec. 31, 2024

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, restructuring and other costs, 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.

The company's president, chairman and chief executive officer is its chief operating decision maker (CODM). The CODM uses total revenues and segment income predominantly in the strategic plan, annual operating plan and quarterly business review processes. During these processes, the CODM considers budget-to-actual variances to evaluate both internal (e.g., changes in selling prices, strategic growth investments, productivity, business mix, newly acquired/divested businesses, etc.) and external (e.g., inflation, foreign currency, etc.) events and conditions.

The company generally accounts for intersegment revenues at current market prices.

Other segment items included in the below tables consist of stock-based compensation and other incentive compensation expenses, allocations of corporate expenses and certain overhead expenses as well as elimination of intersegment and intrasegment profits, all of which are included in the company's measurement of segment income, but not regularly provided to the CODM at the segment level. Cost of revenues adjustments 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 adjustments 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. Restructuring and other costs include charges arising from headcount reductions and facility consolidations such as severance and abandoned lease expense and gains and losses on the sale of real estate and

product lines, as well as impacts of pre-acquisition matters and net charges for significant litigation-related matters (Note 6).

Segment assets included in the below tables consist of third-party accounts receivable and inventories, which are regularly provided to the CODM.

Geographical revenues are attributed to countries based on customer location. Long-lived assets by geographical location includes property, plant and equipment, net, and operating lease ROU assets.

Business Segment Information

2024

(In millions)	Life Sciences Solutions		Analytical Instruments		Specialty Diagnostics		Laboratory Products and Biopharma Services		Total
Revenues
Revenues from external customers	$	8,160	$	7,267	$	4,449	$	23,002	$	42,879
Intersegment revenues	1,471		196		63		155		1,885
	9,631		7,463		4,512		23,157		44,764
Elimination of intersegment revenues									(1,885)
Consolidated revenues									$	42,879
Segment Income
Cost of revenues	3,559		3,535		2,605		18,074
Selling, general, and administrative expenses	1,799		1,251		741		2,378
Research and development expenses	551		554		176		73
Other segment items	219		167		(168)		(459)
Segment income	3,503		1,955		1,159		3,090		9,707
Unallocated amounts
Cost of revenues adjustments									(47)
Selling, general and administrative expenses adjustments									8
Restructuring and other costs									(379)
Amortization of acquisition-related intangible assets									(1,952)
Interest income									1,078
Interest expense									(1,390)
Other income/(expense)									12
Consolidated income before income taxes									$	7,037

(In millions)	Unallocated amounts		Life Sciences Solutions		Analytical Instruments		Specialty Diagnostics		Laboratory Products and Biopharma Services		Consolidated
Segment assets	$	84,031	$	2,982	$	2,944	$	1,218	$	6,145	$	97,321
Purchases of property, plant and equipment	85		123		95		125		971		1,400
Depreciation of property, plant and equipment	—		230		103		104		721		1,156

2023

(In millions)	Life Sciences Solutions		Analytical Instruments		Specialty Diagnostics		Laboratory Products and Biopharma Services		Total
Revenues
Revenues from external customers	$	8,545	$	7,101	$	4,324	$	22,888	$	42,857
Intersegment revenues	1,432		163		82		154		1,829
	9,977		7,263		4,405		23,041		44,686
Elimination of intersegment revenues									(1,829)
Consolidated revenues									$	42,857
Segment Income
Cost of revenues	4,072		3,468		2,592		18,033
Selling, general, and administrative expenses	1,791		1,252		724		2,304
Research and development expenses	558		528		156		68
Other segment items	136		107		(191)		(722)
Segment income	3,420		1,908		1,124		3,358		9,810
Unallocated amounts
Cost of revenues adjustments									(95)
Selling, general and administrative expenses adjustments									(59)
Restructuring and other costs									(459)
Amortization of acquisition-related intangible assets									(2,338)
Interest income									879
Interest expense									(1,375)
Other income/(expense)									(65)
Consolidated income before income taxes									$	6,298

(In millions)	Unallocated amounts		Life Sciences Solutions		Analytical Instruments		Specialty Diagnostics		Laboratory Products and Biopharma Services		Consolidated
Segment assets	$	85,314	$	3,186	$	2,726	$	1,150	$	6,350	$	98,726
Purchases of property, plant and equipment	80		178		87		121		1,013		1,479
Depreciation of property, plant and equipment	—		220		93		86		669		1,068

2022

(In millions)	Life Sciences Solutions		Analytical Instruments		Specialty Diagnostics		Laboratory Products and Biopharma Services		Total
Revenues
Revenues from external customers	$	11,565	$	6,441	$	4,604	$	22,304	$	44,915
Intersegment revenues	1,967		182		158		207		2,515
	13,532		6,624		4,763		22,511		47,430
Elimination of intersegment revenues									(2,515)
Consolidated revenues									$	44,915
Segment Income
Cost of revenues	4,973		3,194		3,095		17,830
Selling, general, and administrative expenses	2,027		1,235		605		2,347
Research and development expenses	680		508		147		85
Other segment items	270		180		(108)		(623)
Segment income	5,582		1,507		1,024		2,872		10,985
Unallocated amounts
Cost of revenues adjustments									(46)
Selling, general and administrative expenses adjustments									(37)
Restructuring and other costs									(114)
Amortization of acquisition-related intangible assets									(2,395)
Interest income									272
Interest expense									(726)
Other income/(expense)									(104)
Consolidated income before income taxes									$	7,835

(In millions)	Unallocated amounts		Life Sciences Solutions		Analytical Instruments		Specialty Diagnostics		Laboratory Products and Biopharma Services		Consolidated
Segment assets	$	83,340	$	3,845	$	2,465	$	1,076	$	6,428	$	97,154
Purchases of property, plant and equipment	98		490		140		112		1,403		2,243
Depreciation of property, plant and equipment	—		214		83		75		614		986

Geographical Information

(In millions)	2024		2023		2022
Revenues
United States	$	21,755	$	22,013	$	23,820
Other	21,124		20,844		21,095
Consolidated revenues	$	42,879	$	42,857	$	44,915
Long-lived Assets
United States	$	6,245	$	6,352	$	6,308
Other	4,550		4,652		4,565
Consolidated long-lived assets	$	10,795	$	11,004	$	10,873