WALTHAM, Mass.--(BUSINESS WIRE)--
Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving
science, today reported its financial results for the fourth quarter and
full year ended December 31, 2015.
Fourth Quarter and Full Year 2015 Highlights
-
Grew fourth quarter adjusted earnings per share (EPS) by 7% to $2.12
and full year adjusted EPS by 6% to $7.39.
-
Increased fourth quarter revenue by 4% to $4.65 billion.
-
Expanded fourth quarter adjusted operating margin by 40 basis points
to 23.2%.
-
Launched significant new products in 2015 for research, clinical and
applied markets, highlighted by the QuantStudio 3 and 5 qPCR systems,
Orbitrap Fusion Lumos Tribrid mass spectrometer and the Ion S5 and S5
XL next-generation sequencing instruments.
-
Leveraged increasing scale in Asia-Pacific and emerging markets to
deliver strong growth, led by outstanding performance in China and
significant contributions from India and South Korea.
-
Successfully integrated the Life Technologies acquisition, which
strengthened our customer value proposition and accelerated growth.
-
In 2015, deployed nearly $700 million to expand our bioproduction and
laboratory chemicals offerings through acquisitions of Advanced
Scientifics, Inc. and Alfa Aesar; also repurchased $500 million of
stock.
-
Reduced debt by approximately $2.0 billion in 2015 and achieved target
leverage ratio.
-
After year end, announced agreement to acquire Affymetrix for $1.3
billion to strengthen leadership in biosciences and genetic analysis.
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.”
“I’m pleased to report that every business segment finished the year
strong, which contributed to an outstanding year for Thermo Fisher in a
challenging macro-environment,” said Marc N. Casper, president and chief
executive officer of Thermo Fisher Scientific. “We executed well to
extend our long track record of strong adjusted EPS growth and delivered
increased value to our customers to achieve excellent top-line results.
“Our strong performance in 2015 demonstrates the success of our growth
strategy, which is based on technology innovation, scale in Asia-Pacific
and emerging markets, and our unique customer value proposition. During
the year, we launched high-impact products across our technology
portfolio that strengthen our leadership positions and create new
avenues for growth. We expanded our capabilities in high-growth regions,
such as Singapore, Southeast Asia and the Middle East, while delivering
outstanding growth in China. We also successfully integrated Life
Technologies, leveraging our combined portfolios and commercial
strengths to create tremendous value for our customers.
“In terms of capital deployment, we invested about $1.4 billion during
2015 to expand our customer offerings through strategic M&A and return
capital through stock buybacks and dividends. At the same time, we
de-levered ahead of our original plan and kicked off 2016 with our
agreement to acquire Affymetrix.”
Casper concluded, “Our strong finish in the fourth quarter contributed
to a great year overall, and sets us up to deliver a successful 2016.”
Fourth Quarter 2015
For the fourth quarter of 2015, adjusted EPS grew 7% to $2.12, versus
$1.99 in the fourth quarter of 2014. Revenue for the quarter grew 4% to
$4.65 billion in 2015, versus $4.49 billion in 2014. Organic revenue
growth was 7%; acquisitions increased revenues by 1% and currency
translation reduced revenue by 4%. Adjusted operating income for the
fourth quarter of 2015 increased 5% compared with the year-ago quarter,
and adjusted operating margin expanded to 23.2%, compared with 22.8% in
the fourth quarter of 2014.
GAAP diluted EPS for the fourth quarter of 2015 was $1.50, versus $1.49
in the same quarter last year. GAAP operating income for the fourth
quarter of 2015 increased 8% to $690 million, compared with $639 million
in 2014. GAAP operating margin increased to 14.8%, compared with 14.2%
in the fourth quarter of 2014.
Full Year 2015
For the full year 2015, adjusted EPS grew 6% to $7.39, versus $6.96 in
2014. Revenue for 2015 grew to $16.97 billion, compared with $16.89
billion a year ago. Organic revenue grew 5%; acquisitions, net of
divestitures, increased revenue by 1% and currency translation reduced
revenue by 6%. Adjusted operating income for 2015 increased 3% compared
with 2014, and adjusted operating margin expanded 60 basis points to
22.5%, compared with 21.9% a year ago.
GAAP diluted EPS for 2015 was $4.92, versus $4.71 in 2014. GAAP
operating income for 2015 decreased to $2.34 billion, compared with
$2.50 billion a year ago. GAAP operating margin decreased to 13.8%,
compared with 14.8% in 2014. GAAP results reflect gains from the sale of
businesses in 2014.
Annual Guidance for 2016
The company will provide 2016 financial guidance on its earnings
conference call this morning at 8:30 a.m. EST.
Segment Results
Management uses adjusted operating results to monitor and evaluate
performance of the company’s four business segments, as highlighted
below. Year-over-year results were negatively affected by the impact of
foreign currency exchange rates.
Life Sciences Solutions Segment
In the fourth quarter of 2015, Life Sciences Solutions Segment revenue
grew to $1.21 billion, compared with revenue of $1.19 billion in the
fourth quarter of 2014. Segment adjusted operating margin increased to
31.6%, versus 30.8% in 2014.
For the full year 2015, Life Sciences Solutions Segment revenue grew to
$4.44 billion, compared with revenue of $4.20 billion in 2014. Segment
adjusted operating margin rose to 30.1% in 2015 compared with 29.0% a
year ago.
Analytical Instruments Segment
Analytical Instruments Segment revenue increased 3% to $925 million in
the fourth quarter of 2015, compared with revenue of $902 million in the
fourth quarter of 2014. Segment adjusted operating margin grew to 22.1%,
versus 20.2% in the 2014 quarter.
For the full year 2015, Analytical Instruments Segment revenue was $3.21
billion, compared with revenue of $3.25 billion in 2014. Segment
adjusted operating margin rose to 19.1%, versus 17.9% in 2014.
Specialty Diagnostics Segment
Specialty Diagnostics Segment revenue in the fourth quarter increased to
$865 million in 2015, compared with revenue of $863 million in the
fourth quarter of 2014. Segment adjusted operating margin was 26.2%,
versus 27.1% in the 2014 quarter.
For the full year 2015, Specialty Diagnostics Segment revenue was $3.24
billion, compared with revenue of $3.34 billion in 2014. Segment
adjusted operating margin was 26.9%, versus 2014 results of 27.4%.
Laboratory Products and Services Segment
In the fourth quarter of 2015, Laboratory Products and Services Segment
revenue grew 8% to $1.82 billion, compared with revenue of $1.68 billion
in the fourth quarter of 2014. Segment adjusted operating margin
increased to 14.7%, versus 14.5% in the 2014 quarter.
For the full year 2015, Laboratory Products and Services Segment revenue
increased 1% to $6.66 billion, compared with revenue of $6.60 billion in
2014. Segment adjusted operating margin increased to 15.0%, versus 14.9%
in 2014.
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 restructuring and other
costs/income and amortization of acquisition-related intangible assets.
Adjusted EPS also excludes certain other gains and losses, tax
provisions/benefits related to the previous items, benefits from tax
credit carryforwards, the impact of significant tax audits or events and
discontinued operations. 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 excludes operating cash flows from
discontinued operations and deducts net capital expenditures. 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 5 to 20 years. In 2016, based on acquisitions
closed through the end of 2015, our adjusted EPS will exclude
approximately $2.23 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, benefits
from tax credit carryforwards and the impact of significant tax audits
or events (such as the one-time effect on deferred tax balances of
enacted changes in tax rates), which are either isolated or cannot be
expected to occur again with any regularity or 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, the
early retirement of debt and discontinued operations.
We also report free cash flow, which is operating cash flow, net of
capital expenditures, and also excludes operating cash flows from
discontinued operations 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’s earnings guidance, however, is only provided on an adjusted
basis. It is not feasible to provide GAAP EPS guidance because the items
excluded, other than the amortization expense, are difficult to predict
and estimate and are primarily dependent on future events, such as
acquisitions and decisions concerning the location and timing of
facility consolidations.
Conference Call
Thermo Fisher Scientific will hold its earnings conference call today,
January 28, 2016, at 8:30 a.m. Eastern time. To listen, dial (877)
201-0168 within the U.S. or (647) 788-4901 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, February 26, 2016.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. (NYSE: TMO) is the world leader in serving
science, with revenues of $17 billion and more than 50,000 employees in
50 countries. Our mission is to enable our customers to make the world
healthier, cleaner and safer. We help our customers accelerate life
sciences research, solve complex analytical challenges, improve patient
diagnostics and increase laboratory productivity. Through our premier
brands – Thermo Scientific, Applied Biosystems, Invitrogen, Fisher
Scientific and Unity Lab Services – we offer an unmatched combination of
innovative technologies, purchasing convenience and comprehensive
support. For more information, please visit www.thermofisher.com.
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. Important factors that could cause actual results to
differ materially from those indicated by forward-looking statements
include risks and uncertainties relating to: 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 exchange rate
fluctuations on international operations; the effect of healthcare
reform legislation; 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 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
Quarterly Report on Form 10-Q for the quarter ended September 26,
2015, which is 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.
|
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|
|
|
|
Consolidated Statement of Income (a)(b)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
December 31,
|
|
% of
|
|
December 31,
|
|
% of
|
(In millions except per share amounts)
|
|
2015
|
|
Revenues
|
|
2014
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
4,652.5
|
|
|
|
|
$
|
4,492.8
|
|
|
|
Costs and Operating Expenses:
|
|
|
|
|
|
|
|
|
Cost of revenues (c)
|
|
2,439.9
|
|
|
52.4
|
%
|
|
2,290.8
|
|
|
51.0
|
%
|
Selling, general and administrative expenses (d)
|
|
968.7
|
|
|
20.8
|
%
|
|
1,007.4
|
|
|
22.4
|
%
|
Amortization of acquisition-related intangible assets
|
|
326.0
|
|
|
7.0
|
%
|
|
339.3
|
|
|
7.6
|
%
|
Research and development expenses
|
|
180.3
|
|
|
3.9
|
%
|
|
182.5
|
|
|
4.1
|
%
|
Restructuring and other costs, net (e)
|
|
47.4
|
|
|
1.0
|
%
|
|
33.7
|
|
|
0.7
|
%
|
|
|
3,962.3
|
|
|
85.2
|
%
|
|
3,853.7
|
|
|
85.8
|
%
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
690.2
|
|
|
14.8
|
%
|
|
639.1
|
|
|
14.2
|
%
|
Interest Income
|
|
8.7
|
|
|
|
|
9.3
|
|
|
|
Interest Expense
|
|
(103.0
|
)
|
|
|
|
(116.2
|
)
|
|
|
Other (Expense) Income, Net (f)
|
|
(13.2
|
)
|
|
|
|
4.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes
|
|
582.7
|
|
|
|
|
537.1
|
|
|
|
Benefit from Income Taxes (g)
|
|
23.6
|
|
|
|
|
66.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations
|
|
606.3
|
|
|
|
|
604.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Discontinued Operations
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|
(3.7
|
)
|
|
|
|
(2.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
602.6
|
|
|
13.0
|
%
|
|
$
|
601.2
|
|
|
13.4
|
%
|
|
|
|
|
|
|
|
|
|
Earnings per Share from Continuing Operations:
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|
|
|
|
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|
|
Basic
|
|
$
|
1.52
|
|
|
|
|
$
|
1.51
|
|
|
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Diluted
|
|
$
|
1.51
|
|
|
|
|
$
|
1.49
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.51
|
|
|
|
|
$
|
1.50
|
|
|
|
Diluted
|
|
$
|
1.50
|
|
|
|
|
$
|
1.49
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares:
|
|
|
|
|
|
|
|
|
Basic
|
|
399.5
|
|
|
|
|
400.4
|
|
|
|
Diluted
|
|
402.4
|
|
|
|
|
404.1
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
Reconciliation of Adjusted Operating Income and Adjusted
Operating Margin
|
|
|
|
|
|
|
|
|
GAAP Operating Income (a)
|
|
$
|
690.2
|
|
|
14.8
|
%
|
|
$
|
639.1
|
|
|
14.2
|
%
|
Cost of Revenues Charges (c)
|
|
6.6
|
|
|
0.2
|
%
|
|
0.9
|
|
|
0.0
|
%
|
Selling, General and Administrative Charges, Net (d)
|
|
10.9
|
|
|
0.2
|
%
|
|
12.7
|
|
|
0.3
|
%
|
Restructuring and Other Costs, Net (e)
|
|
47.4
|
|
|
1.0
|
%
|
|
33.7
|
|
|
0.7
|
%
|
Amortization of Acquisition-related Intangible Assets
|
|
326.0
|
|
|
7.0
|
%
|
|
339.3
|
|
|
7.6
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income (b)
|
|
$
|
1,081.1
|
|
|
23.2
|
%
|
|
$
|
1,025.7
|
|
|
22.8
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted Net Income
|
|
|
|
|
|
|
|
|
GAAP Net Income (a)
|
|
$
|
602.6
|
|
|
13.0
|
%
|
|
$
|
601.2
|
|
|
13.4
|
%
|
Cost of Revenues Charges (c)
|
|
6.6
|
|
|
0.2
|
%
|
|
0.9
|
|
|
0.0
|
%
|
Selling, General and Administrative Charges, Net (d)
|
|
10.9
|
|
|
0.2
|
%
|
|
12.7
|
|
|
0.3
|
%
|
Restructuring and Other Costs, Net (e)
|
|
47.4
|
|
|
1.0
|
%
|
|
33.7
|
|
|
0.7
|
%
|
Amortization of Acquisition-related Intangible Assets
|
|
326.0
|
|
|
7.0
|
%
|
|
339.3
|
|
|
7.6
|
%
|
Other Expense, Net (f)
|
|
6.3
|
|
|
0.1
|
%
|
|
3.7
|
|
|
0.1
|
%
|
Provision for Income Taxes (g)
|
|
(150.6
|
)
|
|
-3.2
|
%
|
|
(189.6
|
)
|
|
-4.2
|
%
|
Discontinued Operations, Net of Tax
|
|
3.7
|
|
|
0.0
|
%
|
|
2.8
|
|
|
0.0
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income (b)
|
|
$
|
852.9
|
|
|
18.3
|
%
|
|
$
|
804.7
|
|
|
17.9
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted Earnings per Share
|
|
|
|
|
|
|
|
|
GAAP EPS (a)
|
|
$
|
1.50
|
|
|
|
|
$
|
1.49
|
|
|
|
Cost of Revenues Charges, Net of Tax (c)
|
|
0.01
|
|
|
|
|
(0.03
|
)
|
|
|
Selling, General and Administrative Charges, Net of Tax (d)
|
|
0.02
|
|
|
|
|
0.02
|
|
|
|
Restructuring and Other Costs, Net of Tax (e)
|
|
0.07
|
|
|
|
|
0.02
|
|
|
|
Amortization of Acquisition-related Intangible Assets, Net of Tax
|
|
0.56
|
|
|
|
|
0.47
|
|
|
|
Other Expense, Net of Tax (f)
|
|
0.01
|
|
|
|
|
—
|
|
|
|
Provision for Income Taxes (g)
|
|
(0.06
|
)
|
|
|
|
0.01
|
|
|
|
Discontinued Operations, Net of Tax
|
|
0.01
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS (b)
|
|
$
|
2.12
|
|
|
|
|
$
|
1.99
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow
|
|
|
|
|
|
|
|
|
GAAP Net Cash Provided by Operating Activities (a)
|
|
$
|
1,228.1
|
|
|
|
|
$
|
953.7
|
|
|
|
Net Cash Used in Discontinued Operations
|
|
0.7
|
|
|
|
|
0.8
|
|
|
|
Purchases of Property, Plant and Equipment
|
|
(129.4
|
)
|
|
|
|
(156.7
|
)
|
|
|
Proceeds from Sale of Property, Plant and Equipment
|
|
10.6
|
|
|
|
|
29.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
|
|
$
|
1,110.0
|
|
|
|
|
$
|
827.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Data
|
|
Three Months Ended
|
|
|
December 31,
|
|
% of
|
|
December 31,
|
|
% of
|
(In millions)
|
|
2015
|
|
Revenues
|
|
2014
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
Life Sciences Solutions
|
|
$
|
1,209.8
|
|
|
26.0
|
%
|
|
$
|
1,185.2
|
|
|
26.4
|
%
|
Analytical Instruments
|
|
925.3
|
|
|
19.9
|
%
|
|
902.4
|
|
|
20.1
|
%
|
Specialty Diagnostics
|
|
864.7
|
|
|
18.6
|
%
|
|
863.0
|
|
|
19.2
|
%
|
Laboratory Products and Services
|
|
1,816.6
|
|
|
39.0
|
%
|
|
1,682.9
|
|
|
37.5
|
%
|
Eliminations
|
|
(163.9
|
)
|
|
-3.5
|
%
|
|
(140.7
|
)
|
|
-3.2
|
%
|
|
|
|
|
|
|
|
|
|
Consolidated Revenues
|
|
$
|
4,652.5
|
|
|
100.0
|
%
|
|
$
|
4,492.8
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
Operating Income and Operating Margin
|
|
|
|
|
|
|
|
|
Life Sciences Solutions
|
|
$
|
382.0
|
|
|
31.6
|
%
|
|
$
|
364.9
|
|
|
30.8
|
%
|
Analytical Instruments
|
|
205.0
|
|
|
22.1
|
%
|
|
182.0
|
|
|
20.2
|
%
|
Specialty Diagnostics
|
|
226.7
|
|
|
26.2
|
%
|
|
234.3
|
|
|
27.1
|
%
|
Laboratory Products and Services
|
|
267.4
|
|
|
14.7
|
%
|
|
244.5
|
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
Subtotal Reportable Segments
|
|
1,081.1
|
|
|
23.2
|
%
|
|
1,025.7
|
|
|
22.8
|
%
|
|
|
|
|
|
|
|
|
|
Cost of Revenues Charges (c)
|
|
(6.6
|
)
|
|
-0.2
|
%
|
|
(0.9
|
)
|
|
0.0
|
%
|
Selling, General and Administrative Charges, Net (d)
|
|
(10.9
|
)
|
|
-0.2
|
%
|
|
(12.7
|
)
|
|
-0.3
|
%
|
Restructuring and Other Costs, Net (e)
|
|
(47.4
|
)
|
|
-1.0
|
%
|
|
(33.7
|
)
|
|
-0.7
|
%
|
Amortization of Acquisition-related Intangible Assets
|
|
(326.0
|
)
|
|
-7.0
|
%
|
|
(339.3
|
)
|
|
-7.6
|
%
|
|
|
|
|
|
|
|
|
|
GAAP Operating Income (a)
|
|
$
|
690.2
|
|
|
14.8
|
%
|
|
$
|
639.1
|
|
|
14.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 regularity or 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 2015 and 2014 include i) $6.2 and $0.3, respectively, of
charges for the sale of inventories revalued at the date of acquisition
and ii) $0.4 and $0.6, respectively, of accelerated depreciation on
manufacturing assets to be abandoned due to facility consolidations.
(d)
Reported results in 2015 and 2014 include i) $4.6 and $11.9,
respectively, of third-party transaction/integration costs related to
the acquisitions of Alfa Aesar in 2015 and Life Technologies in 2014;
ii) $(0.3) and $0.2, respectively, of (gains)/charges for changes in
estimates of contingent consideration for acquisitions; and iii) $6.6
and $0.6, respectively, of accelerated depreciation on fixed assets to
be abandoned due to integration synergies.
(e) Reported results in
2015 and 2014 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 2015 include $16.5 of charges for
litigation at acquired businesses, $14.9 of impairment of acquired
technology in development and $1.7 of gains on the sale of real estate.
Reported results in 2014 include $29.3 of charges for pension
settlements and $14.8 of gains on the sale of real estate.
(f)
Reported results in 2015 and 2014 include i) $0.1 and $(3.1),
respectively, of net gains (losses) on investments and ii) $0.6 and
$0.6, respectively, of amortization of acquisition-related intangible
assets of the company's equity-method investments. Reported results in
2015 also include a loss of $5.8 on the early extinguishment of debt.
(g)
Reported provision for income taxes includes i) $126.6 and $194.8 of
incremental tax benefit in 2015 and 2014, respectively, for the pre-tax
reconciling items between GAAP and adjusted net income; and ii) in 2015
and 2014, $24.0 and $(5.2), respectively, of incremental tax
benefit/(provision) from adjusting the company's deferred tax balances
as a result of tax rate changes.
Notes:
Consolidated depreciation expense is $98.5 and $89.4 in 2015
and 2014, respectively.
Consolidated equity compensation expense
included in both reported and adjusted results is $33.2 and $30.5 in
2015 and 2014, respectively.
Certain pre-acquisition equity awards
of Life Technologies were converted to rights to receive future cash
payments over the remaining vesting period. In addition to the equity
compensation expense noted above, reported and adjusted results in 2015
and 2014 include $4.3 and $8.5, respectively, of expense for such cash
payments.
|
|
|
|
|
|
|
|
|
Consolidated Statement of Income (a)(b)
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
December 31,
|
|
% of
|
|
December 31,
|
|
% of
|
(In millions except per share amounts)
|
|
2015
|
|
Revenues
|
|
2014
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
16,965.4
|
|
|
|
|
$
|
16,889.6
|
|
|
|
Costs and Operating Expenses:
|
|
|
|
|
|
|
|
|
Cost of revenues (c)
|
|
8,782.7
|
|
|
51.8
|
%
|
|
8,970.6
|
|
|
53.1
|
%
|
Selling, general and administrative expenses (d)
|
|
3,724.1
|
|
|
22.0
|
%
|
|
3,991.4
|
|
|
23.6
|
%
|
Amortization of acquisition-related intangible assets
|
|
1,314.8
|
|
|
7.7
|
%
|
|
1,331.7
|
|
|
7.9
|
%
|
Research and development expenses
|
|
692.3
|
|
|
4.1
|
%
|
|
691.1
|
|
|
4.1
|
%
|
Restructuring and other costs (income), net (e)
|
|
115.3
|
|
|
0.7
|
%
|
|
(598.2
|
)
|
|
-3.5
|
%
|
|
|
14,629.2
|
|
|
86.2
|
%
|
|
14,386.6
|
|
|
85.2
|
%
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
2,336.2
|
|
|
13.8
|
%
|
|
2,503.0
|
|
|
14.8
|
%
|
Interest Income
|
|
30.6
|
|
|
|
|
47.7
|
|
|
|
Interest Expense
|
|
(414.9
|
)
|
|
|
|
(479.9
|
)
|
|
|
Other (Expense) Income, Net (f)
|
|
(15.5
|
)
|
|
|
|
16.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes
|
|
1,936.4
|
|
|
|
|
2,087.2
|
|
|
|
Benefit from (Provision for) Income Taxes (g)
|
|
43.9
|
|
|
|
|
(191.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations
|
|
1,980.3
|
|
|
|
|
1,895.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Discontinued Operations, Net of Tax
|
|
(4.9
|
)
|
|
|
|
(1.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
1,975.4
|
|
|
11.6
|
%
|
|
$
|
1,894.4
|
|
|
11.2
|
%
|
|
|
|
|
|
|
|
|
|
Earnings per Share from Continuing Operations:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
4.97
|
|
|
|
|
$
|
4.76
|
|
|
|
Diluted
|
|
$
|
4.93
|
|
|
|
|
$
|
4.71
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
4.96
|
|
|
|
|
$
|
4.76
|
|
|
|
Diluted
|
|
$
|
4.92
|
|
|
|
|
$
|
4.71
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares:
|
|
|
|
|
|
|
|
|
Basic
|
|
398.7
|
|
|
|
|
398.2
|
|
|
|
Diluted
|
|
401.9
|
|
|
|
|
402.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted Operating Income and Adjusted
Operating Margin
|
|
|
|
|
|
|
|
|
GAAP Operating Income (a)
|
|
$
|
2,336.2
|
|
|
13.8
|
%
|
|
2,503.0
|
|
|
14.8
|
%
|
Cost of Revenues Charges (c)
|
|
9.1
|
|
|
0.0
|
%
|
|
327.6
|
|
|
1.9
|
%
|
Selling, General and Administrative Charges, Net (d)
|
|
46.3
|
|
|
0.3
|
%
|
|
130.7
|
|
|
0.8
|
%
|
Restructuring and Other Costs (Income), Net (e)
|
|
115.3
|
|
|
0.7
|
%
|
|
(598.2
|
)
|
|
-3.5
|
%
|
Amortization of Acquisition-related Intangible Assets
|
|
1,314.8
|
|
|
7.7
|
%
|
|
1,331.7
|
|
|
7.9
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income (b)
|
|
$
|
3,821.7
|
|
|
22.5
|
%
|
|
3,694.8
|
|
|
21.9
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted Net Income
|
|
|
|
|
|
|
|
|
GAAP Net Income (a)
|
|
$
|
1,975.4
|
|
|
11.6
|
%
|
|
$
|
1,894.4
|
|
|
11.2
|
%
|
Cost of Revenues Charges (c)
|
|
9.1
|
|
|
0.0
|
%
|
|
327.6
|
|
|
1.9
|
%
|
Selling, General and Administrative Charges, Net (d)
|
|
46.3
|
|
|
0.3
|
%
|
|
130.7
|
|
|
0.8
|
%
|
Restructuring and Other Costs (Income), Net (e)
|
|
115.3
|
|
|
0.7
|
%
|
|
(598.2
|
)
|
|
-3.5
|
%
|
Amortization of Acquisition-related Intangible Assets
|
|
1,314.8
|
|
|
7.7
|
%
|
|
1,331.7
|
|
|
7.9
|
%
|
Other Expense (Income), Net (f)
|
|
21.5
|
|
|
0.2
|
%
|
|
(3.1
|
)
|
|
0.0
|
%
|
Provision for Income Taxes (g)
|
|
(515.8
|
)
|
|
-3.0
|
%
|
|
(283.3
|
)
|
|
-1.7
|
%
|
Discontinued Operations, Net of Tax
|
|
4.9
|
|
|
0.0
|
%
|
|
1.1
|
|
|
0.0
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income (b)
|
|
$
|
2,971.5
|
|
|
17.5
|
%
|
|
$
|
2,800.9
|
|
|
16.6
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted Earnings per Share
|
|
|
|
|
|
|
|
|
GAAP EPS (a)
|
|
$
|
4.92
|
|
|
|
|
$
|
4.71
|
|
|
|
Cost of Revenues Charges, Net of Tax (c)
|
|
0.01
|
|
|
|
|
0.55
|
|
|
|
Selling, General and Administrative Charges, Net of Tax (d)
|
|
0.05
|
|
|
|
|
0.24
|
|
|
|
Restructuring and Other Costs (Income), Net of Tax (e)
|
|
0.19
|
|
|
|
|
(0.79
|
)
|
|
|
Amortization of Acquisition-related Intangible Assets, Net of Tax
|
|
2.27
|
|
|
|
|
2.27
|
|
|
|
Other Expense (Income), Net of Tax (f)
|
|
0.03
|
|
|
|
|
(0.01
|
)
|
|
|
Provision for Income Taxes (g)
|
|
(0.09
|
)
|
|
|
|
(0.01
|
)
|
|
|
Discontinued Operations, Net of Tax
|
|
0.01
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS (b)
|
|
$
|
7.39
|
|
|
|
|
$
|
6.96
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow
|
|
|
|
|
|
|
|
|
GAAP Net Cash Provided by Operating Activities (a)
|
|
$
|
2,816.9
|
|
|
|
|
$
|
2,619.6
|
|
|
|
Net Cash Used in Discontinued Operations
|
|
8.7
|
|
|
|
|
4.3
|
|
|
|
Purchases of Property, Plant and Equipment
|
|
(422.9
|
)
|
|
|
|
(427.6
|
)
|
|
|
Proceeds from Sale of Property, Plant and Equipment
|
|
18.1
|
|
|
|
|
49.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
|
|
$
|
2,420.8
|
|
|
|
|
$
|
2,245.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Data
|
|
Year Ended
|
|
|
December 31,
|
|
% of
|
|
December 31,
|
|
% of
|
(In millions)
|
|
2015
|
|
Revenues
|
|
2014
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
Life Sciences Solutions
|
|
$
|
4,439.4
|
|
|
26.2
|
%
|
|
$
|
4,195.7
|
|
|
24.8
|
%
|
Analytical Instruments
|
|
3,208.2
|
|
|
18.9
|
%
|
|
3,252.2
|
|
|
19.3
|
%
|
Specialty Diagnostics
|
|
3,243.9
|
|
|
19.1
|
%
|
|
3,343.6
|
|
|
19.8
|
%
|
Laboratory Products and Services
|
|
6,661.5
|
|
|
39.3
|
%
|
|
6,601.5
|
|
|
39.1
|
%
|
Eliminations
|
|
(587.6
|
)
|
|
-3.5
|
%
|
|
(503.4
|
)
|
|
-3.0
|
%
|
|
|
|
|
|
|
|
|
|
Consolidated Revenues
|
|
$
|
16,965.4
|
|
|
100.0
|
%
|
|
$
|
16,889.6
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
Operating Income and Operating Margin
|
|
|
|
|
|
|
|
|
Life Sciences Solutions
|
|
$
|
1,336.9
|
|
|
30.1
|
%
|
|
$
|
1,214.9
|
|
|
29.0
|
%
|
Analytical Instruments
|
|
612.8
|
|
|
19.1
|
%
|
|
581.1
|
|
|
17.9
|
%
|
Specialty Diagnostics
|
|
872.9
|
|
|
26.9
|
%
|
|
916.0
|
|
|
27.4
|
%
|
Laboratory Products and Services
|
|
999.1
|
|
|
15.0
|
%
|
|
982.8
|
|
|
14.9
|
%
|
|
|
|
|
|
|
|
|
|
Subtotal Reportable Segments
|
|
3,821.7
|
|
|
22.5
|
%
|
|
3,694.8
|
|
|
21.9
|
%
|
|
|
|
|
|
|
|
|
|
Cost of Revenues Charges (c)
|
|
(9.1
|
)
|
|
0.0
|
%
|
|
(327.6
|
)
|
|
-1.9
|
%
|
Selling, General and Administrative Charges, Net (d)
|
|
(46.3
|
)
|
|
-0.3
|
%
|
|
(130.7
|
)
|
|
-0.8
|
%
|
Restructuring and Other (Costs) Income, Net (e)
|
|
(115.3
|
)
|
|
-0.7
|
%
|
|
598.2
|
|
|
3.5
|
%
|
Amortization of Acquisition-related Intangible Assets
|
|
(1,314.8
|
)
|
|
-7.7
|
%
|
|
(1,331.7
|
)
|
|
-7.9
|
%
|
|
|
|
|
|
|
|
|
|
GAAP Operating Income (a)
|
|
$
|
2,336.2
|
|
|
13.8
|
%
|
|
$
|
2,503.0
|
|
|
14.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 regularity or 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 2015 and 2014 include i) $6.9 and $303.4, respectively, of
charges for the sale of inventories revalued at the date of acquisition
and ii) $2.2 and $2.8, respectively, of accelerated depreciation on
manufacturing assets to be abandoned due to facility consolidations.
Reported results in 2014 also include a charge of $21.4 to conform the
accounting policies of Life Technologies with the company's accounting
policies.
(d) Reported results in 2015 and 2014 include i) $12.2
and $100.5, respectively, of third-party transaction/integration costs
primarily related to the acquisitions of Life Technologies and in 2015,
Alfa Aesar; ii) charges of $19.4 and $5.2, respectively, associated with
product liability litigation; iii) $(2.8) and $8.2, respectively, of
(gains)/charges for changes in estimates of contingent consideration for
acquisitions and iv) $17.5 and $0.6, respectively, of accelerated
depreciation on fixed assets to be abandoned due to integration
synergies. Reported results in 2014 also include a charge of $16.2 to
conform the accounting policies of Life Technologies with the company's
accounting policies.
(e) Reported results in 2015 and 2014 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
2015 include gains of $11.2 on the sale of product lines and real
estate, charges of $20.0 for litigation at an acquired business, $14.9
of impairment of acquired technology in development, and $5.0 of cash
compensation contractually due to employees of an acquired business on
the date of acquisition. Reported results in 2014 include gains of
$895.4 on the sale of businesses, principally the sera and media, gene
modulation and magnetic beads businesses and the Cole-Parmer business,
and a charge of $91.7 for cash compensation to monetize certain equity
awards held by Life Technologies employees at the date of acquisition.
(f)
Reported results in 2015 and 2014 include i) $0.1 and $6.3,
respectively, of net gains from investments and ii) $2.2 and $2.2,
respectively, of amortization of acquisition-related intangible assets
of the company's equity-method investments. Reported results in 2015
also include $7.5 of costs associated with entering into interest rate
swap arrangements and losses of $11.9 on the early extinguishment of
debt. Reported results in 2014 also include $1.0 of charges related to
amortization of fees paid to obtain financing commitments related to the
Life Technologies acquisition.
(g) Reported provision for income
taxes includes i) $478.3 and $277.8 of incremental tax benefit in 2015
and 2014, respectively, for the pre-tax reconciling items between GAAP
and adjusted net income; and ii) in 2015 and 2014, $37.5 and $5.5,
respectively, of incremental tax benefit from adjusting the company's
deferred tax balances as a result of tax rate changes.
Notes:
Consolidated depreciation expense is $373.4 and $353.1 in
2015 and 2014, respectively.
Consolidated equity compensation
expense included in both reported and adjusted results is $125.0 and
$117.1 in 2015 and 2014, respectively.
Certain pre-acquisition
equity awards of Life Technologies were converted to rights to receive
future cash payments over the remaining vesting period. In addition to
the equity compensation expense noted above, reported and adjusted
results in 2015 and 2014 include $22.4 and $34.8, respectively, of
expense for such cash payments.
|
|
|
|
|
Condensed Consolidated Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
(In millions)
|
|
2015
|
|
2014
|
|
|
|
|
|
Assets
|
|
|
|
|
Current Assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
452.1
|
|
|
$
|
1,343.5
|
Accounts receivable, net
|
|
2,544.9
|
|
|
2,473.6
|
Inventories
|
|
1,991.7
|
|
|
1,859.5
|
Other current assets
|
|
663.7
|
|
|
863.2
|
|
|
|
|
|
Total current assets
|
|
5,652.4
|
|
|
6,539.8
|
|
|
|
|
|
Property, Plant and Equipment, Net
|
|
2,448.8
|
|
|
2,426.5
|
|
|
|
|
|
Acquisition-related Intangible Assets
|
|
12,758.3
|
|
|
14,110.1
|
|
|
|
|
|
Other Assets
|
|
1,312.0
|
|
|
933.1
|
|
|
|
|
|
Goodwill
|
|
18,827.6
|
|
|
18,842.6
|
|
|
|
|
|
Total Assets
|
|
$
|
40,999.1
|
|
|
$
|
42,852.1
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
Short-term obligations and current maturities of long-term
obligations
|
|
$
|
1,052.8
|
|
|
$
|
2,212.4
|
Other current liabilities
|
|
3,048.4
|
|
|
3,137.4
|
|
|
|
|
|
Total current liabilities
|
|
4,101.2
|
|
|
5,349.8
|
|
|
|
|
|
Other Long-term Liabilities
|
|
4,030.0
|
|
|
4,602.6
|
|
|
|
|
|
Long-term Obligations
|
|
11,473.9
|
|
|
12,351.6
|
|
|
|
|
|
Total Shareholders' Equity
|
|
21,394.0
|
|
|
20,548.1
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity
|
|
$
|
40,999.1
|
|
|
$
|
42,852.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statement of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
(In millions)
|
|
2015
|
|
2014
|
|
|
|
|
|
Operating Activities
|
|
|
|
|
Net income
|
|
$
|
1,975.4
|
|
|
$
|
1,894.4
|
|
Loss from discontinued operations
|
|
4.9
|
|
|
1.1
|
|
Income from continuing operations
|
|
1,980.3
|
|
|
1,895.5
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
1,688.2
|
|
|
1,684.8
|
|
Change in deferred income taxes
|
|
(511.8
|
)
|
|
(621.8
|
)
|
Net gains on sale of businesses
|
|
(7.6
|
)
|
|
(895.4
|
)
|
Other non-cash expenses, net
|
|
126.4
|
|
|
392.9
|
|
Changes in assets and liabilities, excluding the effects of
acquisitions and dispositions
|
|
(449.9
|
)
|
|
167.9
|
|
|
|
|
|
|
Net cash provided by continuing operations
|
|
2,825.6
|
|
|
2,623.9
|
|
Net cash used in discontinued operations
|
|
(8.7
|
)
|
|
(4.3
|
)
|
|
|
|
|
|
Net cash provided by operating activities
|
|
2,816.9
|
|
|
2,619.6
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
Acquisitions, net of cash acquired
|
|
(694.6
|
)
|
|
(13,060.1
|
)
|
Purchases of property, plant and equipment
|
|
(422.9
|
)
|
|
(427.6
|
)
|
Proceeds from sale of property, plant and equipment
|
|
18.1
|
|
|
49.3
|
|
Proceeds from sale of businesses, net of cash divested
|
|
—
|
|
|
1,521.8
|
|
Other investing activities, net
|
|
12.0
|
|
|
133.9
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
(1,087.4
|
)
|
|
(11,782.7
|
)
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
Net proceeds from issuance of debt
|
|
1,798.0
|
|
|
6,592.3
|
|
Repayment of long-term obligations
|
|
(3,780.2
|
)
|
|
(4,429.4
|
)
|
Increase (decrease) in commercial paper, net
|
|
49.5
|
|
|
(249.9
|
)
|
Decrease in short-term notes payable
|
|
—
|
|
|
(36.6
|
)
|
Purchases of company common stock
|
|
(500.0
|
)
|
|
—
|
|
Dividends paid
|
|
(240.6
|
)
|
|
(234.8
|
)
|
Net proceeds from issuance of company common stock
|
|
—
|
|
|
2,942.0
|
|
Net proceeds from issuance of company common stock under employee
stock plans
|
|
124.0
|
|
|
155.4
|
|
Tax benefits from stock-based compensation awards
|
|
64.1
|
|
|
65.6
|
|
Other financing activities, net
|
|
(6.1
|
)
|
|
(8.5
|
)
|
|
|
|
|
|
Net cash (used in) provided by financing activities
|
|
(2,491.3
|
)
|
|
4,796.1
|
|
|
|
|
|
|
Exchange Rate Effect on Cash
|
|
(129.6
|
)
|
|
(115.5
|
)
|
|
|
|
|
|
Decrease in Cash and Cash Equivalents
|
|
(891.4
|
)
|
|
(4,482.5
|
)
|
Cash and Cash Equivalents at Beginning of Period
|
|
1,343.5
|
|
|
5,826.0
|
|
|
|
|
|
|
Cash and Cash Equivalents at End of Period
|
|
$
|
452.1
|
|
|
$
|
1,343.5
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow (a)(b)
|
|
$
|
2,420.8
|
|
|
$
|
2,245.6
|
|
|
|
|
|
|
|
|
|
|
|
(a) Free cash flow is net cash provided by operating activities of
continuing operations less net purchases of property, plant and
equipment.
(b) Free cash flow in 2014 was reduced by $325.1 of cash
outlays related to the acquisition of Life Technologies including
monetizing certain equity awards, severance obligations and third-party
transaction/integration costs.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160128005181/en/
Source: Thermo Fisher Scientific Inc.