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TMO · Thermo Fisher Scientific

42 filings

10-K

TMO 10-K Annual Reports

Thermo Fisher Scientific - 42 annual reports

Filing record · 2016–202610-K1110-Q338-K153

TMO filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 153 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Aug ’17Aug ’17
  2. Material agreement8-K · Oct ’19Oct ’19
  3. Leadership change8-K · Feb ’22Feb ’22
  4. Leadership change8-K · Jan ’26Jan ’26
  1. 2025

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2025

    Thermo Fisher Scientific Inc. reported solid financial performance for the fiscal year ended December 31, 2025, with revenues reaching $44.56 billion, a 4% increase compared to the previous year. This growth was primarily driven by strong demand in the pharmaceutical and biotechnology sectors, although a slowdown in COVID-19 related product and service demand partially offset this. The company experienced robust productivity improvements across its segments, particularly in Laboratory Products and Biopharma Services and Life Sciences Solutions, leading to an increase in both GAAP operating income margin (17.4%) and adjusted operating income margin (22.7%). Strategic acquisitions in 2025, including Olink Holding AB and a filtration and separation business, are expected to enhance Thermo Fisher's capabilities and market position, particularly in high-growth areas like proteomics and bioproduction. While the company faces headwinds such as macroeconomic uncertainties impacting academic and government markets and increased costs due to inflation and tariffs, its diversified business model and focus on innovation position it well for continued growth. The company's financial position remains strong, supported by significant free cash flow generation and a substantial cash balance, enabling ongoing investments in R&D, strategic acquisitions, and shareholder returns.

    Feb 26, 2026
  2. 2024

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2024

    Thermo Fisher Scientific Inc. reported relatively flat revenue for the year ended December 31, 2024, compared to the previous year, with consolidated revenues of $42.88 billion. While GAAP operating income saw a 7% increase to $7.34 billion, adjusted operating income slightly decreased by 1% to $9.71 billion. Diluted earnings per share (EPS) on a GAAP basis increased by 7% to $16.53, while adjusted EPS grew by 1% to $21.86. The company experienced a significant decline in COVID-19 related sales, which impacted the Life Sciences Solutions segment with a 3% revenue decrease. However, growth in Analytical Instruments and Specialty Diagnostics, alongside a slight increase in Laboratory Products and Biopharma Services, helped offset these declines. Strategic investments in innovation and commercial capabilities were noted as drivers for growth in academic, government, industrial, and applied markets, despite a muted macroeconomic environment impacting most end markets and geographies.

    Feb 20, 2025
  3. 2023

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2023

    Thermo Fisher Scientific Inc. reported a 5% decrease in revenue for the fiscal year ended December 30, 2023, primarily driven by a significant decline in COVID-19 related sales, which fell from $3.11 billion in 2022 to $0.33 billion in 2023. This reduction was partially offset by strong performance in the Analytical Instruments segment and the Laboratory Products and Biopharma Services segment, which saw revenue increases of 10% and 2% respectively on an organic basis. The company also executed significant restructuring actions, incurring $0.2 billion in charges to streamline operations, which are expected to yield $0.5 billion in annual cost savings. The company continues to focus on its three-pillar growth strategy: high-impact innovation, trusted partner status with customers, and an unparalleled commercial engine. Strategic acquisitions in 2023 included The Binding Site Group for specialty diagnostics and CorEvitas, LLC for real-world evidence solutions. Thermo Fisher also announced a proposed acquisition of Olink Holding AB for approximately $3.1 billion to expand its proteomics capabilities, subject to regulatory approvals and tender offer completion. Despite the revenue decline, the company maintained a strong free cash flow of $7.014 billion and returned capital to shareholders through share repurchases totaling $3.00 billion and dividend payments. The company ended the year with a robust cash position of $8.077 billion.

    Feb 22, 2024
  4. 2022

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2022

    Thermo Fisher Scientific's FY2022 10-K shows a year of very large top-line growth driven by the PPD acquisition, offset by a sharp fall in COVID-19 testing demand and higher amortization. Revenue rose 15% to $44.9 billion, but organic revenue growth was roughly flat at 0%, because acquisitions contributed 18 points and currency translation subtracted 3 points (about $1.35 billion unfavorable). GAAP operating margin fell to 18.7% from 25.6%, and GAAP diluted EPS declined 9% to $17.63. Adjusted EPS fell 8% to $23.24, and adjusted operating margin dropped to 24.5% from 31.0%. Management attributed the margin compression mainly to lower COVID-19 testing volume, strategic growth investments, and the dilution from recently acquired businesses, partly offset by pricing and productivity gains. COVID-19 product sales fell from $7.26 billion in 2021 to $3.11 billion in 2022, and the Life Sciences Solutions and Specialty Diagnostics segments bore most of that decline. Growth came from Laboratory Products and Biopharma Services, where revenue rose 51% to $22.5 billion, largely from PPD's clinical research business, which contributed $7.11 billion. Analytical Instruments grew organically on semiconductor and materials science demand. Free cash flow was steady at $6.9 billion, and the company returned $3.0 billion through buybacks and $0.46 billion through dividends. It also repurchased another $3.0 billion early in 2023, leaving $1.0 billion of authorization available. Balance sheet leverage remains significant. Total debt was $34.5 billion against $8.5 billion of cash, and goodwill plus intangibles total about $58.6 billion, which keeps impairment risk and future amortization meaningful. The company guides to a 2023 GAAP effective tax rate of 7% to 9%, an adjusted rate of about 11%, and capital expenditures of about $2.0 billion.

    Feb 23, 2023
  5. 2021

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2021

    Thermo Fisher Scientific's FY2021 10-K shows a company at a major inflection point. Revenue grew 22% to $39.21 billion (organic growth of 17%), GAAP operating income rose 29% to $10.03 billion, and GAAP diluted EPS climbed 22% to $19.46 (adjusted EPS $25.13, up 28%). Strength was broad-based, with COVID-19-related product sales of $9.23 billion, meaningful contributions from vaccine and therapy manufacturing, and recovery in the Analytical Instruments segment. Growth was partly fueled by acquisitions, most notably the $15.99 billion cash purchase of PPD, Inc. completed December 8, 2021, along with Mesa Biotech, PeproTech and a viral vector business. The balance sheet changed materially. Total debt rose from $21.7 billion to $34.9 billion, goodwill jumped to $41.9 billion, and total assets reached $95.1 billion, up from $69.1 billion. Cash fell to $4.5 billion from $10.3 billion. Free cash flow was roughly flat at $6.8 billion, and management repurchased $2.0 billion of stock in 2021 plus another $2.0 billion in early 2022, leaving $1.0 billion of authorization. Net leverage and the resulting interest burden are now key considerations, and the company has a 3.5x minimum interest coverage covenant on its revolver. Goodwill and intangibles total roughly $62 billion, so future impairment risk is significant if acquired businesses underperform. Management guides to a 2022 GAAP effective tax rate of 9-11% and adjusted tax rate near 13%, and capex of $2.5-2.7 billion. Investors should weigh the strong operating momentum and pandemic-driven demand against the risk that COVID-related revenue normalizes, the execution risk of integrating PPD, and the higher leverage taken on to fund the deal. Legal and environmental exposures appear manageable, with product liability accruals of $216 million and environmental liabilities of $65 million.

    Feb 24, 2022
  6. 2020

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2020

    Thermo Fisher Scientific's 2020 10-K shows a year transformed by COVID-19 demand. Revenue rose 26% to $32.22 billion (up $6.47 billion organically, or 25%, excluding a $133 million currency benefit and a $78 million net acquisition contribution). Management attributes the growth primarily to $6.63 billion of sales of products addressing COVID-19 testing and treatment, concentrated in Life Sciences Solutions (up 77% to $12.17 billion) and Specialty Diagnostics (up 44% to $5.34 billion). Operating income nearly doubled... more precisely, it rose 70% to $7.79 billion, with operating margin expanding from 18.0% to 24.2%. Net income rose to $6.38 billion ($15.96 diluted EPS, versus $9.17 in 2019), helped by a lower effective tax rate of 11.8%. The Analytical Instruments segment was the notable laggard, with revenue down 7% to $5.12 billion and segment margin falling to 15.8%, reflecting industrial and academic customer closures during the pandemic. The company ended the year with $10.33 billion in cash, $21.74 billion in debt, and operating cash flow of $8.29 billion (up from $4.97 billion). It also repurchased $1.50 billion of stock, paid $337 million in dividends, and began 2021 with $853 million (Novasep viral vector business) and $450 million (Mesa Biotech) acquisitions pending or completed, along with approximately $197 million of debt extinguishment losses. For investors, the key questions are durability and quality of earnings. Management expects COVID-related revenue to continue into 2021 but states that its duration is uncertain and depends on customer testing demand. The 2021 effective tax rate guidance of 11% to 13% and the $2.2 to $2.4 billion capital expenditure plan both point to continued heavy investment. The filing also flags risks around goodwill ($26.04 billion) and intangible asset valuations, supply-chain concentration, pending litigation, and the Analytical Instruments supply-contract charge of $108 million.

    Feb 25, 2021
  7. 2019

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2019

    Thermo Fisher Scientific's FY2019 10-K shows a strong year: revenue rose 4.9% to $25.54 billion (about 6% organic growth excluding a $440 million currency headwind and a $153 million acquisition contribution), and operating income climbed 21% to $4.59 billion, lifting operating margin to 18.0% from 15.5%. Much of that margin expansion was helped by a $478 million pre-tax gain on the sale of the Anatomical Pathology business, which was booked within restructuring and other income. Excluding that item, segment income grew about 6% to $5.97 billion, with the reportable segment margin at 23.4% versus 23.1%. Net income rose to $3.70 billion, and diluted EPS reached $9.17 versus $7.24, though the gain and a $184 million loss on early debt extinguishment both affected reported results. Cash generation and balance-sheet activity were central to the year. Operating cash flow was $4.97 billion, up from $4.54 billion. The company spent $1.84 billion on acquisitions (led by Brammer Bio at about $1.67 billion), $926 million on capital expenditures, and $1.50 billion on share repurchases, while also paying $297 million in dividends. Total debt was about $17.75 billion at carrying value, and the company refinanced roughly $6.4 billion of senior notes. Management guided to an effective tax rate of 8% to 10% for 2020, and a $1.00 billion repurchase authorization remained as of February 26, 2020. The main forward-looking risks flagged in the filing are the emerging coronavirus outbreak in China, which management said could materially affect operations and sales, plus ongoing U.S.-China tariffs, currency volatility, and Brexit uncertainty. Goodwill and intangibles of roughly $27 billion (about 46% of total assets) carry impairment risk if the business underperforms, and the company is subject to covenant limits of 3.5x maximum leverage and 3.0x minimum interest coverage under its revolver.

    Feb 26, 2020
  8. 2018

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2018

    Thermo Fisher Scientific's 2018 Form 10-K shows a strong year of organic and acquisitive growth. Revenue rose 16% to $24.36 billion (about 8% organic growth, excluding $1.53 billion from acquisitions and $173 million from favorable currency), and GAAP operating income climbed 28% to $3.78 billion, with operating margin expanding to 15.5% from 14.2%. Net income grew 32% to $2.94 billion and diluted EPS rose to $7.24 from $5.59, helped by a lower U.S. tax rate under the Tax Act. Operating cash flow reached $4.54 billion, and capital expenditures were $758 million. Growth was broad across all four segments, with Laboratory Products and Services (up 28%, boosted by the Patheon acquisition) and Analytical Instruments (up 13%) leading. The balance sheet carries significant leverage from acquisitions. Total debt was about $19.0 billion at year-end, against $2.10 billion of cash, and goodwill plus intangibles total roughly $40 billion, or about 71% of total assets, which creates impairment risk if growth slows. Amortization of acquisition-related intangibles was $1.74 billion, a large drag on GAAP earnings. The company is also in the middle of portfolio reshaping: it agreed in January 2019 to sell Anatomical Pathology to PHC Holdings for about $1.14 billion, and it is acquiring Gatan for about $925 million. Management guides to a 2019 effective tax rate of 7% to 10%, and it repurchased $500 million of stock in 2018 and $750 million in January 2019. Key risks for investors include the Pharma Services reporting unit, where the fair value cushion over carrying value was only about 5% (carrying value $7.70 billion, goodwill $3.37 billion); tariff and trade exposure to China; heavy reliance on government and pharmaceutical customers; and a 3.5x maximum leverage covenant under the revolving credit facility. The company also faces ongoing environmental remediation obligations (accrued $69 million) and product liability claims.

    Feb 27, 2019
  9. 2017

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2017

    Thermo Fisher Scientific's fiscal 2017 10-K shows a company that grew revenue 14% to $20.92 billion, with about 5% organic growth ($949 million) alongside $1.63 billion from acquisitions, led by the $7.36 billion Patheon N.V. purchase closed in August 2017. Operating income rose 21% to $2.97 billion, and the operating margin expanded to 14.2% from 13.4%. Reportable segment income grew 15% to $4.86 billion, with the Analytical Instruments segment (up 38%) and Life Sciences Solutions (up 19%) leading. Cash from operations reached $4.01 billion, helped by a $1.02 billion increase in other liabilities tied to the one-time transition tax under the Tax Act. Net income rose to $2.23 billion from continuing operations, and diluted EPS from continuing operations was $5.60, up from $5.10. The balance sheet is considerably more leveraged. Total debt rose to about $21.0 billion from $16.6 billion, and goodwill plus intangibles now total roughly $43 billion, about 76% of total assets of $56.7 billion. Management guides to a 2018 effective tax rate of 6% to 9%, and the company remains in compliance with its covenants, with a maximum leverage ratio of 4.0x stepping down to 3.5x in Q3 2018. The company also issued about $1.69 billion of equity in 2017 to help fund the Patheon deal. Key risks for investors include debt-service burden, goodwill impairment sensitivity in the newly formed Patheon reporting unit (carrying value $7.33 billion, with only a qualitative test performed), a $1.41 billion unrecognized tax benefit reserve, and ongoing intellectual property litigation at Life Technologies. Overall, the filing shows strong organic demand and margin expansion, but growth in 2017 depended heavily on debt-financed M&A, which makes integration execution and deleveraging central to the investment case.

    Feb 28, 2018
  10. 2016

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2016

    Thermo Fisher Scientific's FY2016 10-K shows a company that grew revenue 8% to $18.27 billion, with about 4% organic growth and roughly $733 million contributed by acquisitions, most notably Affymetrix (March 2016, $1.34 billion) and FEI Company (September 2016, $4.08 billion). Operating income rose 5% to $2.45 billion, but operating margin slipped to 13.4% from 13.8% because of higher restructuring and acquisition-related charges, strategic growth investments, and unfavorable sales mix. Diluted EPS from continuing operations was $5.10, versus $4.93 in 2015. Cash flow from operations improved to $3.16 billion. Management expects the 2017 effective tax rate to be below 3%, aided by foreign tax credit planning, and expects a continued currency headwind from the stronger U.S. dollar. The balance sheet took on significant leverage. Total debt rose to about $16.63 billion, from $12.47 billion at year-end 2015, to fund acquisitions. Goodwill and intangibles now total roughly $35 billion, or about 77% of total assets of $45.9 billion, which creates impairment risk. The 10-K flags that the Materials and Structural Analysis reporting unit (the former FEI business) had only a nominal fair-value cushion over book value at its October/November 2016 test date, with $1.99 billion of goodwill. Debt covenants require a total leverage ratio below 4.5x, stepping down to 3.5x, and an interest coverage ratio of at least 3.0x. For investors, the key trade-offs are strong organic demand from pharma and biotech and a growing analytical instruments franchise, against heavier debt, large acquisition-driven amortization of about $1.38 billion, a thin goodwill cushion in the FEI unit, and ongoing IP litigation in the Life Technologies business. Management reiterated a $0.15 quarterly dividend and repurchased $1.25 billion of stock during 2016, with $750 million left under the authorization as of February 28, 2017.

    Feb 28, 2017
  11. 2015

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2015

    Thermo Fisher Scientific's FY2015 10-K shows a company with $16.97 billion in revenue, up just 0.5% from $16.89 billion in 2014, but up about 5% on an organic basis after stripping out a $938 million currency headwind and roughly $212 million of net acquisition contributions. Operating income fell 7% to $2.34 billion, with operating margin dropping to 13.8% from 14.8%, largely because 2014 included roughly $895 million of gains on business divestitures that did not recur. Excluding those one-time items, segment income rose 3% to $3.82 billion, and reportable segment margin improved to 22.5% from 21.9%, driven by productivity gains and the Life Technologies integration. Diluted EPS from continuing operations was $4.93, up from $4.71, helped by a benefit from income taxes in 2015 and a lower interest expense of $65 million. The balance sheet and cash generation remain strong. Operating cash flow was $2.82 billion, and the company repaid $3.78 billion of long-term debt and repurchased $500 million of stock in 2015. Total debt fell to about $12.5 billion from $14.6 billion, and year-end cash was $452 million. Goodwill of $18.8 billion and definite-lived intangibles of $11.5 billion remain large relative to $40.9 billion of total assets, so impairment risk and continued amortization of roughly $1.3 billion per year are material considerations. Management expects a stronger U.S. dollar to weigh on 2016 revenue and operating income, and guided to an effective tax rate below 3%. The key forward-looking event is the agreed acquisition of Affymetrix for about $1.3 billion in cash, expected to close by mid-2016 and to be partly funded with new debt. Investors should weigh the deal's expansion into flow cytometry and single-cell biology against the added leverage, the currency headwinds, and the sustainability of a tax rate that management projects will be far below the historical level.

    Feb 25, 2016
  12. 2014-A

    Thermo Fisher Scientific Annual Report (Amendment), Year Ended Dec 31, 2014

    Thermo Fisher Scientific Inc. (TMO) filed its amended Annual Report (10-K/A) for the fiscal year ended December 31, 2014, on March 4, 2015. The primary purpose of this amendment was to correct a table within the "Results of Operations" section, with no other changes to the original filing. The report highlights a significant year driven by the acquisition of Life Technologies for $15.30 billion, which substantially boosted revenues and expanded the Life Sciences Solutions segment. Despite substantial integration costs and amortization related to the acquisition, Thermo Fisher demonstrated robust performance, with total revenues increasing by $3.80 billion year-over-year, reaching $16.89 billion. Operating income and margin also saw substantial improvements, largely attributable to the Life Technologies acquisition and gains from strategic divestitures. Investors should note the company's active M&A strategy, as evidenced by the Life Technologies acquisition and subsequent divestitures of non-core assets. The company also completed the sale of its Cole-Parmer specialty channel business. Management expressed confidence in the company's liquidity and ability to meet future cash requirements through existing cash, operational cash flow, and available credit facilities, despite facing some short-term debt obligations. The report also touches upon critical accounting policies, particularly concerning business combinations, intangible assets, and goodwill, reflecting the complexities introduced by recent acquisitions.

    Mar 5, 2015
  13. 2014

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2014

    Thermo Fisher Scientific's FY2014 10-K shows a transformational year driven by the February 3, 2014 acquisition of Life Technologies for a total purchase price of $15.30 billion (net of cash acquired, including $2.28 billion of assumed debt). Revenue rose 29% to $16.89 billion from $13.09 billion, with acquisitions contributing $3.31 billion and organic growth of about 4% ($549 million). Reported operating income more than doubled to $2.50 billion (14.8% margin) from $1.61 billion, but this was flattered by $895 million of net gains on business divestitures (sera and media businesses sold to GE Healthcare, and Cole-Parmer), offset by $1.33 billion of acquisition-related intangible amortization. Diluted EPS from continuing operations rose to $4.71 from $3.50. Note that the reported figures carry significant one-time items, so underlying profitability is better judged from segment income, which rose 45% to $3.69 billion, and from the organic growth rate. Balance sheet leverage increased sharply. Total assets grew to $42.85 billion, long-term obligations to $12.35 billion, and total debt to about $14.56 billion, with goodwill of $18.84 billion and intangibles of $14.11 billion representing a large share of assets and creating impairment risk if the Life Sciences Solutions segment underperforms (its goodwill cushion was only 9% at the October 2014 test). Operating cash flow of $2.62 billion comfortably covered $428 million of capex and $235 million of dividends, and the company repurchased $500 million of stock in early 2015 under a $910 million remaining authorization. Management flagged a significant expected negative currency impact on 2015 revenue and operating income from the stronger U.S. dollar, and expects a 2015 effective tax rate below 3%. Key risks for investors include the integration of Life Technologies, covenant compliance (leverage covenant of 4.5x stepping down to 3.5x by August 2015), exposure to U.S. government and NIH funding, currency translation, and ongoing intellectual property litigation inherited from Life Technologies, including a Promega case in which a $52 million award was overturned and then partially revived on appeal.

    Feb 26, 2015
  14. 2013

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2013

    Thermo Fisher Scientific's FY2013 10-K, filed February 27, 2014, is dominated by its transformational acquisition of Life Technologies, which closed February 3, 2014 for roughly $13.6 billion in cash plus about $1.5 billion of assumed net debt. The filing reports 2013 revenue of $13.09 billion, up 4.6% year over year, with organic growth of about 3%. GAAP operating income rose to $1.61 billion (12.3% margin) from $1.48 billion, and diluted EPS from continuing operations was $3.50 versus $3.43. Income from continuing operations rose modestly to $1.28 billion, though 2013 results carried $126 million of acquisition and financing costs and $180 million of restructuring and other charges. Large amortization of acquired intangibles ($763 million) continues to weigh on GAAP earnings, and the effective tax rate was unusually low at 3.1%. The balance sheet changed sharply at year-end. Cash and equivalents rose to $5.83 billion, largely from $3.2 billion of senior notes issued in December 2013 ahead of the deal, and total assets grew to $31.9 billion. Total debt was about $10.5 billion at year-end, and the company then borrowed a $5.0 billion term loan and issued about 34.9 million shares through equity forwards (about $2.94 billion) in January and February 2014 to fund the purchase. Financial covenants cap the consolidated leverage ratio at 5.5x during the first six months after closing, stepping down to 3.5x after 18 months, with a minimum interest coverage of 3.0x. Investors should expect pro forma leverage to be elevated for some time. Management guided to a 2014 effective tax rate of 2% to 5%, and the company agreed to sell its sera and media, gene modulation and magnetic beads businesses to GE Healthcare for about $1.06 billion to secure antitrust clearance. The company is reorganizing into four reporting segments in 2014, with the new Life Sciences Solutions segment at its core. Management also disclosed a number of pending intellectual property lawsuits inherited from Life Technologies, including Illumina, Enzo, and Promega, with a $60.9 million Enzo judgment accrued. These matters, along with integration risk and the heavy goodwill and intangibles base (about $12.5 billion of goodwill and $1.34 billion of indefinite-lived tradenames), are the key risks the filing highlights.

    Feb 27, 2014
  15. 2012-A

    Thermo Fisher Scientific Annual Report (Amendment), Year Ended Dec 31, 2012

    Thermo Fisher Scientific Inc. (TMO) filed its 2012 10-K on February 27, 2013, detailing its financial performance and strategic positioning. The company continued to demonstrate strong execution, driven by its diverse portfolio of products and services that serve a broad range of customers in life sciences research, healthcare, industrial, and applied markets. Key to its success was the ongoing integration of its acquired businesses and a focus on innovation to maintain its competitive edge. Investors should note the company's commitment to expanding its global reach and investing in high-growth areas within the life sciences sector.

    Feb 28, 2013
  16. 2012

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2012

    Thermo Fisher Scientific's FY2012 10-K shows a company that grew revenue to $12.51 billion (up 8% from $11.56 billion), driven largely by the Phadia (Specialty Diagnostics) and Dionex (Analytical Technologies) acquisitions completed in 2011 and the One Lambda and Doe & Ingalls acquisitions in 2012. On a pro forma basis, revenue grew about 3% including acquisitions and about 4% at existing businesses, with academic/government and industrial demand slowing to nominal growth in the second half of 2012. Operating income rose 19% to $1.48 billion, with operating margin expanding to 11.8% from 10.8%, though GAAP results are heavily burdened by roughly $748 million of acquisition-related intangible amortization. Net income fell to $1.18 billion from $1.33 billion, largely because 2011 included a $305 million after-tax gain on the Athena and Lancaster divestitures, while income from continuing operations rose 23% to $1.26 billion. Balance sheet and cash flow are the key investor considerations. Total debt was about $7.12 billion at year-end, against $855 million of cash and short-term investments, and the company's leverage covenant caps Consolidated Leverage at 3.5x EBITDA. Operating cash flow was a strong $2.04 billion, which funded $1.08 billion of acquisitions, $315 million of capex, $1.15 billion of share repurchases and a newly initiated quarterly dividend. Goodwill of $12.47 billion and indefinite-lived tradenames of $1.34 billion represent a large share of total assets of $27.4 billion, so future impairment or integration shortfalls would be material. The effective tax rate fell to 0.9% in 2012 (aided by a Swedish tax rate cut and a $53 million deferred tax benefit), and management guides to a 5%-7% rate for 2013, which investors should treat as a non-recurring tailwind rather than a run-rate. Looking ahead, management expects continued softness in academic and government and industrial markets, cites a 2.3% medical device excise tax beginning in 2013 (an estimated $20-25 million annual cost increase), projects about $80 million of new 2013 restructuring charges, and plans a $1 billion share repurchase program starting January 1, 2013. Risk disclosures emphasize government funding uncertainty tied to sequestration, currency exposure (2012 currency translation reduced revenue by $227 million), and dependence on acquisition integration.

    Feb 27, 2013
  17. 2011

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2011

    Thermo Fisher Scientific's FY2011 10-K shows a year transformed by acquisitions. Revenue rose 11% to $11.73 billion, with pro forma organic growth of about 3% (the company cited weakness in academic and government markets in the second half). Operating income grew only 3% to $1.25 billion, and operating margin fell to 10.6% from 11.4%, driven by $124 million of higher acquisition-related charges and $93 million of higher amortization tied to the Phadia and Dionex deals. Net income of $1.33 billion was lifted by a $304 million after-tax gain from the sale of the Athena and Lancaster businesses, so underlying earnings from continuing operations were $1.02 billion, up about 2%. Diluted EPS from continuing operations was $2.65. The balance sheet is markedly more leveraged. Total assets rose to $26.8 billion, goodwill to $12.0 billion, and total debt to about $7.03 billion, versus $2.1 billion a year earlier, after roughly $5.7 billion of acquisition spending (Phadia for $3.5 billion net, and Dionex for $2.0 billion net). Shareholders' equity fell slightly to $15.0 billion, partly due to $1.34 billion of share repurchases. The company has about $650 million of buyback authorization left, and its covenant limit is a 3.5x debt-to-EBITDA ratio. Management says liquidity is sufficient for at least 24 months. The filing also announces the initiation of a quarterly cash dividend of $0.13 per share, payable April 16, 2012, a notable shift in capital allocation for a company that had previously relied on buybacks. Management guided to a 2012 effective tax rate of 11.5% to 13.5%, and noted an expected 2013 medical device excise tax cost of $20 to $30 million a year. Key risks include European sovereign debt stress, currency exposure, dependence on academic and government funding, goodwill and intangible impairment risk (together about $13.3 billion), and the integration of large acquisitions.

    Feb 29, 2012
  18. 2010

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2010

    Thermo Fisher Scientific (TMO) reported FY2010 revenue of $10.79 billion, up 7% from $10.11 billion in 2009 (about 4% organic after currency and acquisitions). Operating income rose 21% to $1.26 billion, with operating margin expanding to 11.7% from 10.4%, driven by profit on incremental sales, productivity gains, and restructuring savings. Diluted EPS was $2.53, up from $2.01. Demand recovered in Analytical Technologies (up 11% to $4.61 billion) and Laboratory Products and Services (up 4% to $6.69 billion), though the supply-contract cessation in the healthcare channel and a milder flu season cut growth by about 2 points. Cash generation remained solid, with operating cash flow of $1.50 billion, though down from $1.66 billion on working capital build. The company spent $606 million on acquisitions and $1.01 billion on share repurchases during 2010. Total debt ended at $2.14 billion, with $926 million in cash and short-term investments and $952 million of undrawn revolver capacity. Management guided to a 2011 effective tax rate of 15.5% to 17.5%. The key forward-looking event is the pending $2.1 billion cash acquisition of Dionex, funded by $2.2 billion of senior notes issued in February 2011, with a September 30, 2011 deadline for closing or the notes must be redeemed at 101%. Thermo also agreed to sell Athena Diagnostics and Lancaster Laboratories for $940 million in aggregate. Investors should weigh the integration and leverage risk from Dionex against the company's margin momentum and capital return program.

    Feb 24, 2011
  19. 2009

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2009

    Thermo Fisher Scientific (NYSE: TMO) closed 2009 with revenues of $10.11 billion, down 4% from $10.50 billion in 2008, as the global economic downturn reduced demand for equipment and, to a lesser extent, services. Consumables held up better. Organic revenue fell about 3%, with currency translation (-$211 million) and acquisitions (+$165 million net) making up the rest of the change. Operating income declined 15% to $1.05 billion, and the operating margin compressed to 10.4% from 11.7%. Net income was $850.3 million, or $2.01 per diluted share, versus $2.25 in 2008. The effective tax rate fell to 8.2%, which flattered the bottom line. Management expects a 17%-19% rate in 2010, so earnings quality on a go-forward basis deserves scrutiny. Cash generation was a bright spot. Operating cash flow rose to $1.66 billion from $1.42 billion, driven mainly by working-capital releases in receivables and inventories. Cash and short-term investments reached $1.57 billion at year-end. The company spent $637 million on acquisitions, including B.R.A.H.M.S. AG (about $482 million) and Biolab (about $132 million), and repurchased $415 million of stock. Total debt is $2.18 billion, of which about $0.66 billion is convertible. The company refinanced by issuing $748 million of new senior notes and retired its 6.75% notes and a portion of its 2.50% converts. Management states that cash and facilities are sufficient for at least the next 24 months. The key watch items for investors are the 2010 outlook and the segment mix. Analytical Technologies fell 7% in revenue and its margin declined to 20.2%. Laboratory Products and Services was flat in revenue and its margin declined to 13.7%. The company also disclosed that a significant healthcare supplier is ending an arrangement, reducing sales by roughly $130 million year over year in 2010 (about $75 million of product sales expected in 2010 versus $205 million in 2009, partly offset by a new supplier). Goodwill and intangibles total roughly $15.3 billion, or about 71% of assets, so impairment risk is material if the recovery stalls. Restructuring actions are expected to yield about $107 million of annual savings. Management notes an unfavorable reading of the global recession and healthcare reform as risks.

    Feb 26, 2010
  20. 2008

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2008

    Thermo Fisher Scientific (TMO) reported full-year 2008 revenue of $10.50 billion, up 8% from $9.75 billion in 2007, with operating income rising 26% to $1.23 billion (11.7% margin, versus 10.0% in 2007). Growth was driven mainly by higher demand and price increases at existing businesses, with Asia strong, North America moderate and Europe modest; acquisitions added about $186 million and currency translation about $113 million. Diluted EPS from continuing operations rose to $2.27 from $1.76, and net income was $994.2 million, though the effective tax rate increased to 14.0% from 11.5%. Both segments grew, with Analytical Technologies up 7% and Laboratory Products and Services up 9%, and segment operating margins expanded in both. The filing also flags headwinds heading into 2009. Management expects roughly 4% currency translation pressure on 2009 revenue (about $0.15 of EPS) at early-2009 exchange rates, and noted that the economic downturn led to restructuring actions and a market capitalization decline to roughly book value at year-end. Balance sheet highlights include $1.28 billion of cash and equivalents, $2.06 billion of debt (about $969 million convertible, with $295 million currently convertible as of February 27, 2009), and $950 million of available revolver capacity. Goodwill and intangibles remain large at about $8.7 billion and $6.4 billion, so future impairment or integration issues are a meaningful risk. The company also faces an ongoing patent suit from Applera/Applied Biosystems over its mass spectrometer systems, which could have a material adverse effect if resolved unfavorably. For investors, the key takeaways are solid organic growth and margin expansion from merger integration and productivity gains, a strengthened cash position, and a stock that fell sharply in late 2008 (Q4 low of $26.65). Risks center on a likely weaker 2009 demand environment, a stronger U.S. dollar, a higher share of convertible debt maturing or being put in 2010 and 2011, and the mounting cost of acquisition-related amortization (about $603 million in 2008).

    Feb 27, 2009
  21. 2007

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2007

    Thermo Fisher Scientific's 2007 10-K shows a company transformed by the November 2006 merger with Fisher Scientific International. Revenue rose to $9.75 billion in 2007 from $3.79 billion in 2006, with Laboratory Products and Services contributing $5.84 billion (60%) and Analytical Technologies $4.26 billion (44% before eliminations). Pro forma growth was more modest: had the merger occurred January 1, 2006, revenue would have grown about $876 million, or roughly 10%, with organic growth at existing businesses of about $507 million. Operating income rose to $974 million (10.0% margin) from $242 million (6.4%), though the comparison is distorted by merger charges in 2006 and roughly $571 million of acquisition-related intangible amortization in 2007. Net income was $761 million, or $1.72 diluted EPS, versus $169 million ($0.84) in 2006. Income from continuing operations of $780 million was helped by a one-time $32 million tax benefit from UK, Danish, Canadian and German rate cuts, which pushed the effective tax rate down to 11.5%. Cash flow from operations reached $1.48 billion, and the company repurchased $898 million of its stock. Leverage is significant: total debt was about $2.20 billion, with $955 million available under the revolver and cash and short-term investments of $639 million. Goodwill ($8.71 billion) and intangibles ($7.16 billion) make up a large share of $21.2 billion in total assets, so impairment risk and integration execution are key watch items. Pending litigation with Applera/Applied Biosystems over mass spectrometer patents is disclosed as a potential material adverse risk.

    Feb 29, 2008
  22. 2006

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2006

    Thermo Fisher Scientific (TMO) closed its transformational merger with Fisher Scientific International on November 9, 2006, which reshaped the company's scale and balance sheet. Revenue rose 44% to $3.79 billion in 2006 (about 32 points from the merger), and organic growth was roughly 6%, driven by demand in mass spectrometry and spectroscopy and by stronger pricing. Reported operating income fell to $242 million from $263 million, with the margin dropping to 6.4% from 10.0%. The decline reflects $125 million of merger-related charges (including inventory step-up, accelerated stock compensation, and in-process R&D) and $93 million of higher acquisition-related amortization. Net income fell to $169 million from $223 million, and diluted EPS was $0.84 versus $1.36. The effective tax rate fell to 20.6% from 30.6%, which partly cushioned the decline in earnings. The balance sheet changed dramatically. Total assets grew to $21.3 billion from $4.3 billion, goodwill rose to $8.5 billion, and acquisition-related intangibles reached $7.5 billion. Total debt is about $2.7 billion, of which roughly 77% matures in 2009 or later, and the company has $691 million in cash and short-term investments plus $635 million of available revolver capacity. Operating cash flow was $406 million, up from $271 million, though it was held down by $157 million of merger-related outflows. Management expects roughly $470 million of annual amortization from the Fisher intangibles, which will keep reported margins under pressure in 2007 and beyond. Management also guided capital expenditures of $240–260 million for 2007 and authorized a new $300 million share repurchase program. Investors should weigh the strategic logic of a combined portfolio spanning analytical instruments, reagents, consumables, and lab supplies against the integration risk, the heavier leverage, and the continuing litigation over mass spectrometer patents. The company also faces a UK Competition Commission review of its GV Instruments acquisition. Integration is still in progress, and the company says cost synergies and restructuring actions are expected to be finalized within a year of the merger.

    Mar 1, 2007
  23. 2005

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2005

    Thermo Fisher Scientific Inc. (TMO) reported strong revenue growth in 2005, driven by significant acquisitions and organic demand across its key segments. The company's strategy of augmenting internal growth with strategic acquisitions has bolstered its presence, particularly in the Life and Laboratory Sciences segment, which saw a substantial increase in sales due to the acquisition of Kendro. The Measurement and Control segment also experienced growth, benefiting from demand in industrial and environmental applications. While the company experienced higher operating income, its operating income margin saw a slight decrease due to increased amortization expenses from acquisition-related intangible assets. Management is focused on integrating acquired businesses to realize synergies and improve productivity. The company maintains a solid financial position with sufficient liquidity and manages its market risks through operational activities and hedging strategies.

    Mar 2, 2006
  24. 2004

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2004

    Thermo Electron Corporation (NYSE: TMO) reported a strong 2004 fiscal year, with revenues rising 16% to $2.206 billion (about 4% organic growth, with the rest from currency and acquisitions). Operating income improved to $237.5 million, a 10.8% margin versus 9.9% in 2003, largely because restructuring charges fell to $19.2 million from $45.3 million. Net income more than tripled to $361.8 million, but that figure is inflated by roughly $143.5 million of after-tax discontinued-operations income, including the sale of Spectra-Physics and tax-audit benefits. Income from continuing operations rose a more modest 25% to $218.4 million, and the effective tax rate fell to 15.8% thanks to a $33.8 million audit settlement benefit. The company expects a normalized rate of about 29% in 2005. The company is now a pure-play instrument business with two segments: Life and Laboratory Sciences (71% of revenue, 14.3% margin) and Measurement and Control (29%, 8.4% margin). Balance sheet strength is solid, with $512 million in cash and short-term investments, $241 million of debt, and shareholders' equity of $2.67 billion. Cash flow from operations was $264.5 million. The main forward-looking event is the agreed January 2005 purchase of Kendro Laboratory Products from SPX for $833.5 million, funded by up to $600 million of bridge financing plus existing cash, with a further $10-20 million of integration charges expected. Investors should watch the integration of Kendro, the pending patent-infringement suit from Applied Biosystems/MDS (which the filing says could have a material adverse effect if lost), and the Lemelson machine-vision patent claim.

    Mar 16, 2005
  25. 2003

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 2003

    Thermo Electron Corporation (NYSE: TMO) reported essentially flat 2003 results, with revenue of $2.097 billion versus $2.086 billion in 2002. Reported growth was driven by a $120.8 million favorable currency translation effect, while underlying sales fell about 5% on weaker demand, particularly in Measurement and Control and Optical Technologies. Operating income rose to $184.8 million (8.8% margin) from $155.5 million (7.5%), helped by roughly $58 million of annualized cost savings from restructuring and facility consolidation. Net income fell to $200.0 million from $309.7 million, but that comparison is distorted by large 2002 gains from FLIR and discontinued operations. Income from continuing operations declined to $172.7 million from $194.4 million, mainly because investment gains dropped by about $88 million. Management points to early signs of recovery: Life and Laboratory Sciences grew sales 7% and Optical Technologies backlog rose 11% in Q4. Year-end backlog grew to $425 million from $381 million. The company also completed the December 31, 2003 acquisition of Jouan SA (about $94 million in 2003 revenue) and LMSi, and it cut debt substantially, reducing outstanding debt to $275.5 million from roughly $700 million. Cash and short-term investments fell to $418.2 million, and management expects the effective tax rate in 2004 to rise to 28% to 29%, up from 21% in 2003 due to one-time benefits that will not recur. For investors, the key issues are whether the top-line recovery holds in 2004, whether margins can keep improving beyond the cost savings already in hand, and how much of 2003 earnings quality reflects non-recurring items such as investment gains, tax benefits, and discontinued operations gains. The company also faces an unresolved IRS examination and a material Lemelson patent lawsuit, both of which could affect future results. Goodwill of $1.6 billion, about 46% of total assets, is an ongoing impairment risk if the cyclical downturn in Optical Technologies and Measurement and Control persists.

    Mar 2, 2004
  26. 2002-A

    Thermo Fisher Scientific Annual Report (Amendment), Year Ended Dec 28, 2002

    This filing is an amendment (10-K/A) to Thermo Fisher Scientific Inc.'s (TMO) annual report for the fiscal year ended December 28, 2002. The primary purpose of this amendment is to provide updated exhibit information, specifically adding exhibits related to restricted stock agreements for key executives (Marc N. Casper and Guy Broadbent) and a description of the company's Supplemental Long Term Disability Plan. The company confirms its compliance with SEC filing requirements, stating it has filed all reports for the preceding 12 months and has been subject to filing requirements for at least the past 90 days, identifying itself as an accelerated filer. Investors should note that this amendment primarily concerns administrative and disclosure-related updates rather than significant changes to the company's core financial performance or strategic direction for the 2002 fiscal year. The certifications from the CEO and CFO reaffirm the accuracy and completeness of the previously filed financial statements and disclosure controls, indicating no material issues were found during their review.

    Mar 27, 2003
  27. 2002

    Thermo Fisher Scientific Annual Report, Year Ended Dec 28, 2002

    Thermo Electron Corporation (NYSE: TMO) reported fiscal 2002 results in its 10-K filed March 7, 2003, with continuing operations consisting solely of three instrument sectors: Life and Laboratory Sciences, Measurement and Control, and Optical Technologies. Revenue declined 5% to $2.086 billion, and operating income rose to $155.5 million from $34.2 million, though the improvement was largely driven by lower restructuring charges and the end of goodwill amortization under SFAS No. 142. Net income was $309.7 million, boosted by $111.4 million of gains from selling FLIR Systems shares and a $115.4 million net gain from discontinued operations. Income from continuing operations was $195.3 million, compared with $49.6 million a year earlier. Excluding restructuring and FLIR gains, income from continuing operations rose to $164.4 million, which is the more representative measure of underlying performance. The weakness is in the core businesses. Optical Technologies (Spectra-Physics lasers and semiconductor equipment) posted an operating loss and revenue fell 16% organically amid a semiconductor downturn, and Measurement and Control revenue fell 7% organically, mainly in temperature control. Life and Laboratory Sciences, the largest segment at $1.14 billion, was roughly flat, with pharmaceutical customers delaying capital purchases. Backlog fell 12% to $380.6 million. Balance sheet and capital allocation moved meaningfully. The company redeemed about $590.7 million of convertible debentures, funded partly by $311.1 million of short-term notes and securities-lending borrowings, and repurchased $285.6 million of common stock. Long-term obligations fell to $451.3 million from $727.5 million, and shareholders' equity rose to $2.03 billion. The company does not pay dividends. Management expects cost savings of about $43 million from 2002 restructuring, and it is consolidating its brands into Thermo Electron and Spectra-Physics. Investors should watch whether organic revenue recovers as semiconductor and pharmaceutical capital spending improves, and whether the company's roughly $1.4 billion of goodwill holds up if the downturn persists.

    Mar 7, 2003
  28. 2001

    Thermo Fisher Scientific Annual Report, Year Ended Dec 29, 2001

    Thermo Electron Corporation (NYSE: TMO) closed fiscal 2001 with revenues of $2.19 billion, down about 4% from $2.28 billion in 2000, and a near-breakeven net loss of $0.8 million, compared with a $36.1 million loss in 2000. Operating income fell sharply to $34.2 million from $266.0 million, largely because of $161.6 million in restructuring and related charges tied to a slowdown in telecommunications, semiconductor and other industrial markets. Excluding unusual items, the company says segment income was $232.4 million in 2001 versus $252.5 million in 2000. Continuing revenues grew about 5% organically excluding acquisitions, divestitures and currency, but the Optical Technologies and Measurement and Control backlogs fell 33% and 21%, respectively, which signals weaker near-term revenue. The filing describes a company completing a multi-year reorganization that converted Thermo Electron from a holding company of publicly traded subsidiaries into an integrated instrument company organized into three segments: Life Sciences, Optical Technologies and Measurement and Control. The company took private its remaining public subsidiaries, spun off Kadant and Viasys Healthcare, and sold noncore businesses. Spectra-Physics was brought to 93.6% ownership and then merged in February 2002. Investors should weigh the cleaner structure and cost-reduction plan (about $63 million in annualized savings) against meaningful balance-sheet and contingent items: $468 million of subordinated convertible debentures being redeemed in March 2002, roughly $207.8 million in guarantees (including $153 million of Kadant debentures), a Thoratec share position whose value is exposed to market swings, and several pending lawsuits. Liquidity remains solid, with $1.04 billion in cash and short-term investments against $1.20 billion of long-term obligations (of which $470 million is due in 2002). Total assets declined to $3.83 billion, and shareholders' investment fell to $1.91 billion after the spinoffs and $511 million of share and debt repurchases. Management believes existing resources are sufficient for at least the next 24 months, and it authorized an additional $100 million repurchase program in March 2002.

    Mar 15, 2002
  29. 2000

    Thermo Fisher Scientific Annual Report, Year Ended Dec 30, 2000

    Thermo Electron Corporation's fiscal 2000 10-K (fiscal year ended December 30, 2000) describes a company in the middle of a major portfolio reorganization. Reported 2000 revenues from continuing operations were $2.28 billion, roughly flat versus $2.29 billion in 1999, but up about 7% excluding acquisitions, divestitures and currency effects. Operating income rose to $266.0 million from $182.1 million, helped largely by roughly $126 million of gains on business sales, while net income was a loss of $36.1 million ($0.22 per share) after a $100 million after-tax charge for loss on disposal of discontinued operations and a $12.9 million cumulative accounting change from SAB No. 101 adoption. Income from continuing operations was $62.0 million, or $0.36 per diluted share, against $37.3 million a year earlier. Management's strategy is to refocus on three segments, Life Sciences, Optical Technologies and Measurement and Control, by selling noncore businesses with more than $1 billion of aggregate revenue and spinning off Thermo Fibertek and a medical products company. The power generation business was agreed for sale in February 2001, and Thermo Cardiosystems was sold to Thoratec for about 19.3 million Thoratec shares, whose market value will drive the ultimate disposal proceeds. The balance sheet remains substantial, with $1.03 billion in cash and short-term investments, $1.53 billion of long-term obligations, and shareholders' investment of $2.53 billion. Investors should weigh the value of the discontinued operations and the Thoratec stake, the goodwill of about $1.4 billion, and a cyclical Optical Technologies segment that management expects to slow in 2001. The filing also flags that the company has chosen to delay the spinoffs until the second half of 2001 because of weak financial markets, and that the spinoffs carry execution risk around the companies' liquidity and management. Results are sensitive to currency translation, which reduced 2000 revenues by $80 million, and to ongoing patent litigation involving Finnigan, though management does not expect these matters to be material to financial position.

    Mar 21, 2001
  30. 2000-A

    Thermo Fisher Scientific Annual Report (Amendment), Year Ended Jan 1, 2000

    This is Amendment No. 1 on Form 10-K/A for Thermo Electron Corporation, the predecessor entity to today's Thermo Fisher Scientific (the filing is under the Thermo Electron name, though the request refers to TMO). It amends only Item 5 (Market for Registrant's Common Equity) for the fiscal year ended January 1, 2000, and filed June 27, 2000. It contains no financial statements, income statement, balance sheet, or segment data. Those remain in the 1999 Annual Report to Shareholders, which the filing incorporates by reference, so this document cannot be used to assess the company's operating performance. The substantive disclosure concerns the company's use of "costless collar" option transactions as an alternative to its traditional open-market share repurchase program. From 1998 through 1999, Thermo Electron sold put options on 5,701,000 shares and bought call options on 2,850,500 shares with an institutional counterparty, with no cash exchanged at inception. During 1999 the company bought back 1,536,000 shares under the puts for $24.6 million, and puts on 1,798,000 shares expired unexercised. As of March 22, 2000, the remaining maximum put obligation covered 2,367,000 shares at a weighted average exercise price of $14.06, or roughly $33.3 million in aggregate, with all options exercisable only at maturity between April and May 2000. For investors, the amendment highlights a capital-allocation practice that ties potential share purchases to option strike prices rather than market timing, and it quantifies the near-term cash exposure. The stated market value of non-affiliate equity was approximately $2.49 billion as of January 28, 2000, against 156,800,687 common shares outstanding. Investors evaluating the company should review the incorporated annual report for the financial results that this amendment does not provide.

    Jun 27, 2000
  31. 2000

    Thermo Fisher Scientific Annual Report, Year Ended Jan 1, 2000

    Thermo Electron Corporation's fiscal 1999 10-K (year ended January 1, 2000) reports a year of sharp contrast: continuing-operations revenue rose 20% to $2.47 billion, driven largely by acquisitions such as Spectra-Physics, but the company posted a net loss of $174.6 million ($1.13 per diluted share). The loss was driven by $149.6 million of restructuring and other unusual costs in continuing operations, a $50 million provision for loss on disposal of discontinued operations (including a $174 million tax provision), and a $111.5 million loss from discontinued operations. Operating income fell to $99.0 million from $233.7 million, and the effective tax rate reached 88%. Continuing operations' segment income declined, with Power Generation (Thermo Ecotek) the most affected after fixed-rate California power contracts expired and the company wrote down its coal-beneficiation plant and Delano facilities. The filing's main story is a major reorganization announced January 31, 2000. Thermo Electron plans to refocus solely on measurement and detection instruments, spin off Thermo Fibertek and a medical products company as dividends, sell non-core businesses with aggregate revenues above $1 billion (expected proceeds of about $1 billion in 2000), and take private most of its remaining majority-owned public subsidiaries, which carries an estimated cash outlay of roughly $325 million. Management expects these steps to simplify the structure and free capital for internal growth in life sciences and telecommunications-linked instrumentation. Investors should weigh the execution risk: many transactions depend on IRS rulings, SEC reviews, 90% ownership thresholds, and asset sale timing. Balance sheet strength remains substantial, with $877.4 million in cash and investments (most held by majority-owned subsidiaries), working capital of $1.45 billion, and long-term obligations of $1.57 billion, largely convertible debentures. Notably, the company has never paid cash dividends and does not expect to do so, and a significant portion of its cash is not freely accessible to the parent because it sits in majority-owned subsidiaries.

    Mar 22, 2000
  32. 1999

    Thermo Fisher Scientific Annual Report, Year Ended Jan 2, 1999

    Thermo Electron Corporation's (NYSE: TMO) 10-K for fiscal 1998 (year ended January 2, 1999) shows a company that grew revenue but saw profits fall sharply. Revenue rose 9% to $3,867.6 million, yet net income fell 24% to $181.9 million and diluted EPS dropped to $1.07 from $1.41. Operating income fell to $331.3 million from $405.8 million, reflecting $44.5 million of restructuring costs, $8.6 million of inventory write-downs, and weakness in Asian and semiconductor-related demand. The decline in gains from subsidiary stock issuances (down to $51.8 million from $80.1 million) and a higher effective tax rate also weighed on earnings. Investors should note that the company's structure, which spins out majority-owned public subsidiaries, has historically generated large non-operating gains that may not recur. The balance sheet remains substantial, with $6.3 billion in total assets, $1.64 billion in cash and available-for-sale investments, and shareholders' investment of $2.25 billion. Long-term obligations rose to $2.03 billion, largely subordinated convertible debentures, and the company issued $150 million of 7 5/8% senior notes and $250 million of 4% convertible debentures during the year. Management also disclosed a proposed reorganization that would reduce the number of majority-owned public subsidiaries from 23 to 16, and it announced a planned CEO transition to Richard F. Syron effective June 1, 1999. The February 1999 acquisition of Spectra-Physics for about $355 million adds to the company's measurement and detection portfolio. Several risks deserve attention. Thermo Ecotek's California power contracts move to avoided-cost pricing in 1999-2000, which management expects to materially reduce that unit's profitability. ThermoLase's spa business is loss-making and under review, and the Trex Medical mammography system faces FDA uncertainty. The company's stock fell to a closing price of $16 5/8 on January 29, 1999, from a 1998 high of $44 1/4. The filing also notes that the company has never paid cash dividends and that a portion of consolidated cash is held by majority-owned subsidiaries and may not be readily available to the parent.

    Mar 23, 1999
  33. 1998-A

    Thermo Fisher Scientific Annual Report (Amendment), Year Ended Jan 3, 1998

    This filing is Amendment No. 1 on Form 10-K/A from Thermo Electron Corporation (NYSE: TMO) for the fiscal year ended January 3, 1998, filed April 3, 1998. The amendment largely restates the business description and attaches the 1997 Annual Report (Exhibit 13) containing audited financials. Thermo Electron is a diversified technology holding company that operates through majority-owned public and private subsidiaries across six segments: Instruments, Alternative-energy Systems, Paper Recycling, Biomedical Products, Industrial Outsourcing, and Advanced Technologies. Its spinout model has produced substantial value, but it also creates a dependence on the subsidiaries' capital markets activity. Reported 1997 revenue rose 21% to $3,558.3 million, and operating income rose 65% to $405.8 million. Net income increased 25% to $239.3 million, or $1.41 diluted EPS. Investors should note that net income includes $80.1 million of nontaxable gains on stock issuances by subsidiaries, down from $126.6 million in 1996. Much of the earnings quality therefore depends on the timing of subsidiary equity transactions, a risk management itself flags. Instruments drove most of the growth through acquisitions, including Life Sciences International and Fisons. The balance sheet expanded materially, with total assets up to $5.8 billion and goodwill up 56% to $1.69 billion, driven by acquisitions. Convertible debt rose to roughly $1.66 billion carrying value, and minority interest reached $719.6 million. Consolidated cash and investments were $1.59 billion, of which $1.33 billion sat in majority-owned subsidiaries. Management also flagged several legal and operational risks, including the Fischer patent suit, the Bruker/Finnigan ITC matter, a Thermo Ecotek Gillette plant that is still struggling operationally, and New Hampshire utility deregulation exposure at Thermo Ecotek.

    Apr 3, 1998
  34. 1998

    Thermo Fisher Scientific Annual Report, Year Ended Jan 3, 1998

    Thermo Electron Corporation (NYSE: TMO) reported fiscal 1997 (53 weeks ended January 3, 1998) revenue of $3.56 billion, up 21% from $2.93 billion in 1996, with operating income up 65% to $405.8 million and net income up 25% to $239.3 million. Diluted EPS rose to $1.41 from $1.17. Growth was driven largely by acquisitions, most notably Life Sciences International (Instruments) and Peek plc (Alternative-energy Systems), with the Instruments segment contributing the bulk of revenue growth (sales up 32% to $1.59 billion) and segment income up sharply. Backlog reached $895.5 million, up about 10% year over year. Investors should note the quality of earnings. Net income includes $80.1 million of non-operating gains from subsidiaries issuing stock, down from $126.6 million in 1996, and such gains have been a substantial part of reported profits in certain periods. The company's model relies on a spinout strategy in which majority-owned public subsidiaries sell minority stakes, which creates gains but also means a large share of cash ($1.33 billion of $1.59 billion in cash and investments) sits in subsidiaries that are not wholly owned. Long-term obligations rose to $1.74 billion, largely in convertible debentures issued by the parent and its subsidiaries, and the company disclosed a pending FASB proposal that could eliminate subsidiary-stock issuance gains. Several risks were disclosed: Thermo Ecotek faces uncertainty from New Hampshire utility deregulation and operational problems at its Gillette coal-beneficiation plant; the Thermo Cardiosystems LVAS sales decline awaits FDA approval; ThermoLase is posting growing losses; and there are pending litigation matters, including an arbitration with former Epsilon employees claiming $27-46 million in damages and a patent dispute involving ThermoQuest. The company has never paid cash dividends.

    Mar 12, 1998
  35. 1997-A

    Thermo Fisher Scientific Annual Report (Amendment), Year Ended Apr 24, 1997

    This is Amendment No. 1 on Form 10-K/A to the annual report of Thermo Electron Corporation (NYSE: TMO) for fiscal 1996, which ended December 28, 1996. The filing is not a Thermo Fisher Scientific filing: that company was formed in 2006 through the merger of Thermo Electron and Fisher Scientific. The document contains no financial statements, revenue, earnings, or balance sheet data. Those were incorporated by reference from the Annual Report to Shareholders. This amendment supplies only the Part III information (directors, executive compensation, security ownership, and related-party transactions) that the company originally planned to incorporate from its proxy statement. The filing shows a company with a large equity value, about $5.27 billion held by non-affiliates as of January 24, 1997, and roughly 149.9 million common shares outstanding. Founder and Chairman George N. Hatsopoulos is the dominant insider, owning about 2.3% of the common stock. Directors and executive officers as a group own about 4.1%. John N. Hatsopoulos became President effective January 1, 1997, while George Hatsopoulos remained Chairman and CEO. The company's 1996 reported compensation for George Hatsopoulos was a $520,000 salary and a $575,000 bonus. The filing highlights Thermo Electron's "spinout" model. The parent creates majority-owned, publicly traded subsidiaries, sells minority stakes to outside investors, and charges each subsidiary a corporate services fee of 1.0% of its revenue under a Corporate Charter. Many insiders hold stock and options across dozens of affiliated companies, and several directors sit on multiple subsidiary boards. Investors would need the Annual Report to Shareholders for operating results, and this amendment for governance and insider-alignment details.

    Apr 25, 1997
  36. 1996

    Thermo Fisher Scientific Annual Report, Year Ended Dec 28, 1996

    Thermo Electron Corporation (NYSE: TMO, the predecessor of today's Thermo Fisher Scientific; the filing is for fiscal 1996, ended December 28, 1996, and the registrant is Thermo Electron, not Thermo Fisher) reported strong top-line growth. Revenues rose 29% to $2.93 billion, driven largely by acquisitions in Instruments, Biomedical Products, and Environmental Services. Operating income grew 9% to $246.5 million, and net income rose 37% to $190.8 million, or $1.35 primary and $1.22 fully diluted EPS. Restructuring and other nonrecurring charges of $37.6 million weighed on operating results, and segment margins in several acquired businesses declined. Investors should weigh earnings quality carefully. Gains on the issuance of stock by majority-owned subsidiaries totaled $126.6 million pre-tax, roughly two-thirds of reported net income. These gains are non-taxable and depend on market conditions and subsidiary equity offerings, so management states they cannot be assumed to recur. The balance sheet expanded substantially, with total assets up to $5.14 billion from $3.79 billion, and cash plus short-term investments of $1.85 billion. However, long-term obligations rose to $1.55 billion, mostly convertible debentures, and $684 million of minority interest reflects the company's decentralized spinout model. Roughly $1.18 billion of the $1.94 billion in total cash and investments sits in majority-owned subsidiaries, which limits parent-level access. Looking ahead, backlog grew to $811.9 million from $697.9 million, and the company agreed to acquire Life Sciences International (about $2.16 per share) and entered into a letter of intent to buy the stock-preparation business of Black Clawson for about $110 million. Management also disclosed risks including New Hampshire utility deregulation affecting Thermo Ecotek's plants, expected lower margins at certain Thermo Ecotek projects, and pending litigation seeking $25 million and $36 million in damages.

    Mar 20, 1997
  37. 1995-A

    Thermo Fisher Scientific Annual Report (Amendment), Year Ended Dec 30, 1995

    This filing is Amendment No. 1 (Form 10-K/A) for Thermo Electron Corporation's fiscal year ended December 30, 1995. The file header and the request both list the ticker as TMO, which is the same ticker used today by Thermo Fisher Scientific, but the registrant here is Thermo Electron, the predecessor parent company. The amendment restates the 1995 financials to include the June 1996 SensorMedics Corporation acquisition (pooling of interests) and to reflect a three-for-two stock split. Reported 1995 revenue was $2.27 billion, up 31% from $1.73 billion in 1994, and net income was $139.6 million, up 33%. Primary EPS was $1.10 and fully diluted EPS was $0.97. Operating income rose 24% to $225.2 million, and segment income excluding restructuring rose 31%. Earnings quality is a key investor consideration. Gains on the issuance of stock by majority-owned subsidiaries were $80.8 million in 1995, roughly 58% of net income, and these gains are nontaxable. Management states that these gains may not recur, since they depend on market conditions for subsidiary stock offerings. The company's model is a federation of majority-owned public subsidiaries (such as Thermo Instrument, Thermedics, Thermo Fibertek, and Thermo Ecotek), and minority interest expense rose to $60.5 million. The balance sheet shows $1.14 billion in cash and investments, of which $908 million sits in majority-owned subsidiaries, and $1.12 billion in long-term obligations. Total assets were $3.79 billion and shareholders' investment was $1.31 billion. Subsequent events are significant. In January 1996 the company issued $585 million of 4 1/4% subordinated convertible debentures due 2003, convertible at $37.80 per share. In March 1996 Thermo Instrument acquired a substantial portion of Fisons' Scientific Instruments Division for about $187 million. The company has never paid cash dividends. Legal and contingent exposures include the Dade County cogeneration joint venture, a San Diego waste-recycling facility where the company wrote off $11.5 million of its net investment, a $25 million developer suit, and the Napco bankruptcy filing.

    Sep 6, 1996
  38. 1995

    Thermo Fisher Scientific Annual Report, Year Ended Dec 30, 1995

    Thermo Electron Corporation (NYSE: TMO, now part of Thermo Fisher Scientific) reported fiscal 1995 revenue of $2.21 billion, up 28% from $1.73 billion, and net income of $140.1 million, up 34% from $104.7 million. Primary EPS was $1.67 and fully diluted EPS was $1.48. Operating income rose 24% to $225.5 million after $21.9 million of restructuring and nonrecurring charges. Growth came from acquisitions, organic gains in Instruments and Biomedical Products, and a 42% jump in Biomedical sales. Investors should note that earnings quality depends heavily on "gain on issuance of stock by subsidiaries" ($80.8 million in 1995, versus $25.3 million in 1994), which the company itself warns may not recur. Those gains are nontaxable and make up a large share of reported pre-tax income. The balance sheet strengthened, with cash and short-term investments of $1.06 billion and working capital of $1.31 billion. The company also issued $585 million of 4.25% subordinated convertible debentures in January 1996, which will raise long-term debt. Total assets reached $3.74 billion. Backlog declined to $687 million from $738 million, and Coleman Research's backlog fell, which could weigh on 1996 revenue. Risks include a waste-recycling facility write-off, a Woodland, California power plant that is expected to fall to roughly breakeven from the third quarter of 1996, litigation (including the Dade County cogeneration joint venture and a $25 million developer suit), and a pending Fisons scientific instruments acquisition of roughly 150 million pounds sterling. The company has a decentralized model of majority-owned public and private subsidiaries that sell minority stakes to outside investors. Management says this spinout strategy motivates subsidiary management and supports growth. The model also means that parent-level cash is not always fully accessible, and the company has no plans to pay cash dividends.

    Mar 13, 1996
  39. 1994-A2

    Thermo Fisher Scientific Annual Report (Amendment), Year Ended Dec 31, 1994

    This Form 10-K/A (Amendment No. 2) for fiscal 1994 is filed by Thermo Electron Corporation (NYSE: TMO), the predecessor of today's Thermo Fisher Scientific, not under the Thermo Fisher name. It restates the 1994 financials to include the March 1995 pooling-of-interests acquisition of Coleman Research Corporation and to reflect a three-for-two stock split distributed in May 1995. For 1994, revenues rose 28% to $1,729.2 million, operating income rose 53% to $182.1 million, and net income rose 36% to $104.7 million. Primary EPS was $1.35 (vs. $1.11) and fully diluted EPS was $1.20 (vs. $1.00). Segment income grew 44% to $206.3 million, and the company says its segment income is becoming a larger share of earnings. Earnings quality remains a key investor consideration. Gains from subsidiaries issuing stock were $25.3 million in 1994, down from $39.9 million in 1993, and management states these gains have been a substantial part of net income in recent years. The company is diversified across instruments, alternative-energy systems, process equipment, biomedical products, environmental services, and advanced technologies, with the Instruments segment the largest contributor. The balance sheet strengthened in cash and investments ($997.9 million in cash and short-term investments), but long-term obligations roughly doubled to $1,049.9 million, largely from a $345 million 5% convertible debenture issued in April 1994. Operating cash flow was $192.5 million against capital expenditures of $65.5 million. Major risks disclosed include a pending acquisition by Thermo Instrument of Fisons plc's Scientific Instruments Division for about 202 million pounds sterling, which faces an FTC second request and had its termination date extended to August 15, 1995. The filing also describes continuing losses at the Dade County cogeneration joint venture, regulatory proceedings that could create liabilities, a $12.2 million jury verdict against Napco that the company is contesting, and expected margin pressure at Thermo Ecotek's California plants after 2000. The company has never paid cash dividends.

    Aug 2, 1995
  40. 1994-A

    Thermo Fisher Scientific Annual Report (Amendment), Year Ended Dec 31, 1994

    Thermo Electron Corporation (now Thermo Fisher Scientific Inc.) filed this Amendment No. 1 on Form 10-K/A for the fiscal year ended December 31, 1994. The stated purpose of the amendment is to attach Exhibit 27, the Financial Data Schedule, which the company says was not previously filed with its 1994 Form 10-K filed on March 8, 1995. The filing is a short amendment that covers the cover page and Item 14 only. The cover page reports an aggregate market value of voting stock held by nonaffiliates of approximately $2,200,490,000 as of January 27, 1995, and 51,000,776 shares of Common Stock outstanding on that date. The Common Stock and Preferred Stock Purchase Rights are registered on the New York Stock Exchange. The company is incorporated in Delaware and has its principal executive offices at 81 Wyman Street, Waltham, Massachusetts. The filing states that portions of the Annual Report to Shareholders for 1994 are incorporated by reference into Parts I and II of the Form 10-K, and that portions of the definitive Proxy Statement for the Annual Meeting of Shareholders to be held on May 23, 1995, are incorporated into Part III. Investors seeking operating results and business detail would therefore rely on those incorporated documents rather than on this amendment.

    Apr 21, 1995
  41. 1994

    Thermo Fisher Scientific Annual Report, Year Ended Dec 31, 1994

    This is Thermo Electron Corporation's Form 10-K for fiscal 1994 (year ended December 31, 1994), filed in March 1995. The filing predates the 2006 merger that created Thermo Fisher Scientific, though the company traded under the TMO symbol on the NYSE. Revenue rose 27% to $1,585.3 million, and operating income rose 51% to $179.1 million. Net income increased 35% to $103.4 million, or $2.10 primary and $1.85 fully diluted EPS, versus $1.75 and $1.57 in 1993. Investors should note that non-operating gains from subsidiaries selling stock fell to $25.3 million from $39.9 million, so the earnings growth came more from operations than in prior years. Management itself says these gains should shrink as a share of net income. The company is a decentralized holding structure, with six segments and 13 subsidiaries that have sold minority stakes to outside investors, 11 of them publicly traded. Growth was driven by acquisitions and by the Instruments segment, which generated $650.1 million of sales and $105.4 million of segment income. Backlog grew to $871.1 million from $643.3 million. Two large pending deals could change the profile further: a Coleman Research Corporation acquisition for up to 2.67 million shares, expected to close around March 15, 1995 under pooling accounting, and Thermo Instrument's agreement to buy Fisons plc's Scientific Instruments Division for 202 million pounds sterling. The balance sheet carried $997.7 million of cash and short-term investments against $1,049.8 million of long-term obligations, including $345 million of 5% convertible debentures issued in April 1994. Key risks disclosed include the Dade County cogeneration joint venture litigation and regulatory proceedings, a covenant issue at the San Diego waste-recycling facility that could lead to impairment, a $12.2 million jury verdict against subsidiary Napco that the company is contesting, and the scheduled conversion of certain Thermo Ecotek power plant contracts to avoided-cost rates in 2000. The company has never paid cash dividends.

    Mar 8, 1995
  42. 1994

    Thermo Fisher Scientific Annual Report, Year Ended Jan 1, 1994

    Thermo Electron Corporation (NYSE: TMO, now part of Thermo Fisher Scientific) reported strong fiscal 1993 results for the year ended January 1, 1994. Revenues rose 32% to $1,249.7 million from $949.0 million, driven largely by acquisitions in instruments, biomedical products, and advanced technologies. Segment income increased 64% to $142.6 million, and net income grew about 30% to $76.6 million, or $1.75 primary and $1.57 fully diluted EPS before the cumulative-effect item. Note that this filing predates the 2006 Thermo Fisher merger and was filed by Thermo Electron Corporation. Investors should weigh the quality of earnings. About $39.9 million of pre-tax income came from gains on stock issued by majority-owned subsidiaries, a non-operating source the company itself says it wants to shrink as a share of net income. Other income was negative, primarily because of $21.1 million in equity losses from the Dade County cogeneration joint venture, which included a $15.0 million reserve and faces significant litigation and regulatory exposure. The company also recorded $8.3 million in restructuring charges. The balance sheet is substantial, with total assets of $2.47 billion, $700.2 million in cash and short-term investments, and working capital of $828.3 million. Long-term obligations rose to $647.5 million, including convertible debentures. The company has a complex structure of majority-owned public subsidiaries and has never paid cash dividends, so returns depend on share price appreciation and growth.

    Mar 9, 1994