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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarter Ended July 2, 2022 or
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Commission File Number 1-8002
THERMO FISHER SCIENTIFIC INC.
(Exact name of Registrant as specified in its charter)
Delaware04-2209186
(State of incorporation)(I.R.S. Employer Identification No.)

168 Third Avenue
Waltham, Massachusetts 02451
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (781) 622-1000
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $1.00 par valueTMONew York Stock Exchange
0.750% Notes due 2024TMO 24ANew York Stock Exchange
0.125% Notes due 2025TMO 25BNew York Stock Exchange
2.000% Notes due 2025TMO 25New York Stock Exchange
1.400% Notes due 2026TMO 26ANew York Stock Exchange
1.450% Notes due 2027TMO 27New York Stock Exchange
1.750% Notes due 2027TMO 27BNew York Stock Exchange
0.500% Notes due 2028TMO 28ANew York Stock Exchange
1.375% Notes due 2028TMO 28New York Stock Exchange
1.950% Notes due 2029TMO 29New York Stock Exchange
0.875% Notes due 2031TMO 31New York Stock Exchange
2.375% Notes due 2032TMO 32New York Stock Exchange
2.875% Notes due 2037TMO 37New York Stock Exchange
1.500% Notes due 2039TMO 39New York Stock Exchange
1.875% Notes due 2049TMO 49New York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer                                               Accelerated filer                                        Non-accelerated filer 
Smaller reporting company                                       Emerging growth company 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No 
As of July 2, 2022, the Registrant had 391,788,962 shares of Common Stock outstanding.



THERMO FISHER SCIENTIFIC INC.
QUARTERLY REPORT ON FORM 10-Q

2


THERMO FISHER SCIENTIFIC INC.
PART I    FINANCIAL INFORMATION
Item 1.    Financial Statements
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
 July 2,December 31,
(In millions except share and per share amounts)20222021
Assets
Current assets:
Cash and cash equivalents$1,888 $4,477 
Accounts receivable, less allowances of $177 and $150
7,745 7,977 
Inventories5,668 5,051 
Contract assets, net1,147 968 
Other current assets1,652 1,640 
Total current assets18,100 20,113 
Property, plant and equipment, net8,529 8,333 
Acquisition-related intangible assets, net18,578 20,113 
Other assets4,306 4,640 
Goodwill41,066 41,924 
Total assets$90,579 $95,123 
Liabilities, redeemable noncontrolling interest and equity
Current liabilities:
Short-term obligations and current maturities of long-term obligations$1,010 $2,537 
Accounts payable2,586 2,867 
Accrued payroll and employee benefits1,722 2,427 
Contract liabilities2,722 2,655 
Other accrued expenses2,957 2,950 
Total current liabilities10,997 13,436 
Deferred income taxes3,327 3,837 
Other long-term liabilities4,534 4,540 
Long-term obligations29,250 32,333 
Redeemable noncontrolling interest117 122 
Equity:
Thermo Fisher Scientific Inc. shareholders’ equity:
Preferred stock, $100 par value, 50,000 shares authorized; none issued
  
Common stock, $1 par value, 1,200,000,000 shares authorized; 439,863,357 and 439,154,741 shares issued
440 439 
Capital in excess of par value16,467 16,174 
Retained earnings39,074 35,431 
Treasury stock at cost, 48,074,395 and 44,720,112 shares
(10,964)(8,922)
Accumulated other comprehensive items(2,724)(2,329)
Total Thermo Fisher Scientific Inc. shareholders’ equity42,293 40,793 
Noncontrolling interests61 62 
Total equity42,354 40,855 
Total liabilities, redeemable noncontrolling interest and equity$90,579 $95,123 
The accompanying notes are an integral part of these condensed consolidated financial statements.
3


THERMO FISHER SCIENTIFIC INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
Three months endedSix months ended
July 2,July 3,July 2,July 3,
(In millions except per share amounts)2022202120222021
Revenues
Product revenues
$7,003 $7,214 $15,020 $15,070 
Service revenues
3,967 2,059 7,768 4,109 
Total revenues
10,970 9,273 22,788 19,179 
Costs and operating expenses:
Cost of product revenues
3,516 3,352 7,071 6,679 
Cost of service revenues
2,855 1,397 5,654 2,767 
Selling, general and administrative expenses
2,209 1,899 4,486 3,725 
Research and development expenses
365 343 729 663 
Restructuring and other costs
24 119 26 133 
Total costs and operating expenses
8,969 7,110 17,966 13,967 
Operating income2,001 2,163 4,822 5,212 
Interest income36 11 54 23 
Interest expense(148)(122)(284)(247)
Other income/(expense)
28 (3)(135)(186)
Income before income taxes
1,917 2,049 4,457 4,802 
Provision for income taxes
(198)(219)(499)(635)
Equity in earnings/(losses) of unconsolidated entities(51)(1)(70)(1)
Net income1,668 1,829 3,888 4,166 
Less: net income attributable to noncontrolling interests and redeemable noncontrolling interest4 1 9 1 
Net income attributable to Thermo Fisher Scientific Inc.$1,664 $1,828 $3,879 $4,165 
Earnings per share attributable to Thermo Fisher Scientific Inc.
Basic$4.25 $4.65 $9.90 $10.58 
Diluted$4.22 $4.61 $9.83 $10.50 
Weighted average shares
Basic392 393 392 394 
Diluted394 396 394 397 

The accompanying notes are an integral part of these condensed consolidated financial statements.

4


THERMO FISHER SCIENTIFIC INC.
 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited)
 Three months endedSix months ended
 July 2,July 3,July 2,July 3,
(In millions)2022202120222021
Comprehensive income
Net income$1,668 $1,829 $3,888 $4,166 
Other comprehensive items:
Currency translation adjustment:
Currency translation adjustment (net of tax provision (benefit) of $173, $(23), $262 and $95)
(386)(71)(416)153 
Unrealized gains and losses on hedging instruments:
Reclassification adjustment for losses included in net income (net of tax benefit of $1, $1, $1 and $5)
 1 1 14 
Pension and other postretirement benefit liability adjustments:
Pension and other postretirement benefit liability adjustments arising during the period (net of tax (provision) benefit of $(2), $0, $(3) and $(2))
6 (2)9 4 
Amortization of net loss included in net periodic pension cost (net of tax benefit of $1, $1, $2 and $2)
2 4 4 6 
Total other comprehensive items
(378)(68)(402)177 
Comprehensive income
1,290 1,761 3,486 4,343 
Less: comprehensive income/(loss) attributable to noncontrolling interests and redeemable noncontrolling interest
7 1 2 1 
Comprehensive income attributable to Thermo Fisher Scientific Inc.
$1,283 $1,760 $3,484 $4,342 

The accompanying notes are an integral part of these condensed consolidated financial statements.

5


THERMO FISHER SCIENTIFIC INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
 Six months ended
 July 2,July 3,
(In millions)20222021
Operating activities
Net income
$3,888 $4,166 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment
486 409 
Amortization of acquisition-related intangible assets
1,209 872 
Change in deferred income taxes
(601)(307)
Loss on early extinguishment of debt26 197 
Stock-based compensation
155 102 
Other non-cash expenses, net
291 213 
Changes in assets and liabilities, excluding the effects of acquisitions(1,724)(1,447)
Net cash provided by operating activities
3,730 4,205 
Investing activities  
Acquisitions, net of cash acquired
(40)(1,425)
Purchase of property, plant and equipment
(1,146)(1,168)
Proceeds from sale of property, plant and equipment
14 5 
Other investing activities, net
83 (36)
Net cash used in investing activities
(1,089)(2,624)
Financing activities
Repayment of debt
(375)(2,803)
Proceeds from issuance of commercial paper
1,032  
Repayments of commercial paper
(3,490) 
Purchases of company common stock
(2,000)(2,000)
Dividends paid
(220)(190)
Net proceeds from issuance of company common stock under employee stock plans
51 72 
Other financing activities, net
(48)(5)
Net cash used in financing activities
(5,050)(4,926)
Exchange rate effect on cash(177)44 
Decrease in cash, cash equivalents and restricted cash
(2,586)(3,301)
Cash, cash equivalents and restricted cash at beginning of period
4,491 10,336 
Cash, cash equivalents and restricted cash at end of period
$1,905 $7,035 

The accompanying notes are an integral part of these condensed consolidated financial statements.
6


THERMO FISHER SCIENTIFIC INC.
CONDENSED CONSOLIDATED STATEMENT OF REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
(Unaudited)
 Redeemable Noncontrolling InterestCommon StockCapital in Excess of Par ValueRetained EarningsTreasury StockAccumulated Other Comprehensive ItemsTotal
Thermo Fisher Scientific Inc. Shareholders’ Equity
Noncontrolling InterestsTotal Equity
(In millions)SharesAmountSharesAmount
Three months ended July 2, 2022
Balance at April 2, 2022$113 440 $440 $16,292 $37,528 48 $(10,961)$(2,343)$40,956 $62 $41,018 
Issuance of shares under employees' and directors' stock plans
— — — 98 —  (3)— 95 — 95 
Stock-based compensation
— — — 77 — — — — 77 — 77 
Dividends declared ($0.30 per share)
— — — — (118)— — — (118)— (118)
Net income
4 — — — 1,664 — — — 1,664 — 1,664 
Other comprehensive items
4 — — — — — — (381)(381)(1)(382)
Contributions from (distributions to) noncontrolling interests(4)— — — — — — — — — — 
Balance at July 2, 2022$117 440 $440 $16,467 $39,074 48 $(10,964)$(2,724)$42,293 $61 $42,354 
Three months ended July 3, 2021
Balance at April 3, 2021$— 438 $438 $15,684 $30,350 45 $(8,852)$(2,562)$35,058 $10 $35,068 
Issuance of shares under employees' and directors' stock plans
— — — 91 —  (4)— 87 — 87 
Stock-based compensation
— — — 51 — — — — 51 — 51 
Dividends declared ($0.26 per share)
— — — — (102)— — — (102)— (102)
Net income
— — — — 1,828 — — — 1,828 1 1,829 
Other comprehensive items
— — — — — — — (68)(68)— (68)
Contributions from (distributions to) noncontrolling interests— — — — — — — — — 36 36 
Balance at July 3, 2021$— 438 $438 $15,826 $32,076 45 $(8,856)$(2,630)$36,854 $47 $36,901 

The accompanying notes are an integral part of these condensed consolidated financial statements.
7


THERMO FISHER SCIENTIFIC INC.
CONDENSED CONSOLIDATED STATEMENT OF REDEEMABLE NONCONTROLLING INTEREST AND EQUITY (Continued)
(Unaudited)
 Redeemable Noncontrolling InterestCommon StockCapital in Excess of Par ValueRetained EarningsTreasury StockAccumulated Other Comprehensive ItemsTotal
Thermo Fisher Scientific Inc. Shareholders’ Equity
Noncontrolling InterestsTotal Equity
(In millions)SharesAmountSharesAmount
Six months ended July 2, 2022
Balance at December 31, 2021$122 439 $439 $16,174 $35,431 45 $(8,922)$(2,329)$40,793 $62 $40,855 
Issuance of shares under employees' and directors' stock plans
— 1 1 138 —  (42)— 97 — 97 
Stock-based compensation
— — — 155 — — — — 155 — 155 
Purchases of company common stock
— — — — — 3 (2,000)— (2,000)— (2,000)
Dividends declared ($0.60 per share)
— — — — (236)— — — (236)— (236)
Net income
9 — — — 3,879 — — — 3,879 — 3,879 
Other comprehensive items
(7)— — — — — — (395)(395)— (395)
Contributions from (distributions to) noncontrolling interests(7)— — — — — — — — (1)(1)
Balance at July 2, 2022$117 440 $440 $16,467 $39,074 48 $(10,964)$(2,724)$42,293 $61 $42,354 
Six months ended July 3, 2021
Balance at December 31, 2020$— 437 $437 $15,579 $28,116 40 $(6,818)$(2,807)$34,507 $10 $34,517 
Issuance of shares under employees' and directors' stock plans
— 1 1 145 — 1 (38)— 108 — 108 
Stock-based compensation
— — — 102 — — — — 102 — 102 
Purchases of company common stock
— — — — — 4 (2,000)— (2,000)— (2,000)
Dividends declared ($0.52 per share)
— — — — (205)— — — (205)— (205)
Net income
— — — — 4,165 — — — 4,165 1 4,166 
Other comprehensive items
— — — — — — — 177 177 — 177 
Contributions from (distributions to) noncontrolling interests— — — — — — — — — 36 36 
Balance at July 3, 2021$— 438 $438 $15,826 $32,076 45 $(8,856)$(2,630)$36,854 $47 $36,901 

The accompanying notes are an integral part of these condensed consolidated financial statements.
8


THERMO FISHER SCIENTIFIC INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Note 1.    Nature of Operations and Summary of Significant Accounting Policies
Nature of Operations
Thermo Fisher Scientific Inc. (the company or Thermo Fisher) enables customers to make the world healthier, cleaner and safer by helping them accelerate life sciences research, solve complex analytical challenges, increase laboratory productivity, and improve patient health through diagnostics and the development and manufacture of life-changing therapies. Markets served include pharmaceutical and biotech, academic and government, industrial and applied, as well as healthcare and diagnostics.
Interim Financial Statements
The interim condensed consolidated financial statements presented herein have been prepared by the company, are unaudited and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair statement of the financial position at July 2, 2022, the results of operations for the three- and six-month periods ended July 2, 2022 and July 3, 2021, and the cash flows for the six-month periods ended July 2, 2022 and July 3, 2021. Interim results are not necessarily indicative of results for a full year.
The condensed consolidated balance sheet presented as of December 31, 2021, has been derived from the audited consolidated financial statements as of that date. The condensed consolidated financial statements and notes are presented as permitted by Form 10-Q and do not contain all information that is included in the annual financial statements and notes thereto of the company. The condensed consolidated financial statements and notes included in this report should be read in conjunction with the 2021 financial statements and notes included in the company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC). Certain reclassifications of prior year amounts have been made to conform to the current year presentation.
Note 1 to the consolidated financial statements for 2021 describes the significant accounting estimates and policies used in preparation of the consolidated financial statements. There have been no material changes in the company’s significant accounting policies during the six months ended July 2, 2022.
Inventories
The components of inventories are as follows:
July 2,December 31,
(In millions)20222021
Raw materials$2,335 $1,922 
Work in process699 676 
Finished goods2,634 2,453 
Inventories$5,668 $5,051 
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
The company’s estimates include, among others, asset reserve requirements as well as the amounts of future cash flows associated with certain assets and businesses that are used in assessing the risk of impairment. The negative impacts associated with the ongoing COVID-19 global pandemic significantly lessened in 2021 and 2022. The extent and duration of negative impacts in the future, which may include inflationary pressures and supply chain disruptions, are uncertain and may require changes to estimates. Actual results could differ from those estimates.
Recent Accounting Pronouncements
In November 2021, the FASB issued new guidance to require entities to disclose information about certain types of government assistance they receive, including cash grants and tax credits. Among other things, the new guidance requires expanded disclosure regarding the qualitative and quantitative characteristics of the nature, amount, timing, and significant terms and conditions of transactions with a government arising from a grant or other forms of assistance accounted for under a contribution model. The company will adopt this guidance in the fourth quarter of 2022 using a prospective method. The adoption of this guidance is not expected to have a material impact on the company’s disclosures; however, the impact in future periods will be dependent on the extent of transactions of this nature entered into by the company.
9


THERMO FISHER SCIENTIFIC INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
Note 2.    Acquisitions
The company’s acquisitions have historically been made at prices above the determined fair value of the acquired identifiable net assets, resulting in goodwill, primarily due to expectations of the synergies that will be realized by combining the businesses and the benefits that will be gained from the assembled workforces. These synergies include the elimination of redundant facilities, functions and staffing; use of the company’s existing commercial infrastructure to expand sales of the acquired businesses’ products and services; and use of the commercial infrastructure of the acquired businesses to cost-effectively expand sales of company products and services.
Acquisitions have been accounted for using the acquisition method of accounting, and the acquired companies’ results have been included in the accompanying financial statements from their respective dates of acquisition.
2022
In 2022, the company acquired, within the Analytical Instruments segment, a U.S.-based developer of Fourier-transform infrared gas analysis technologies.
2021
The preliminary allocations of the purchase price for the acquisitions of the Lengnau biologics manufacturing facility, PPD, Inc. and PeproTech, Inc. were based on estimates of the fair values of the net assets acquired and are subject to adjustment upon finalization, largely with respect to acquired intangible assets, lease assets and liabilities, and the related deferred taxes. Measurements of these items inherently require significant estimates and assumptions. During the first six months of 2022, the company adjusted the preliminary allocations of PPD and PeproTech, which among others increased goodwill ($95 million) and other liabilities assumed ($22 million), and decreased definite-lived intangible assets ($43 million), other current assets ($34 million), contract liabilities ($29 million), equity method investments ($23 million), and the fair value of assumed contingent consideration ($18 million). The adjustment to amortization expense recorded during the first six months of 2022 was not material.

Note 3.    Revenues and Contract-related Balances
Disaggregated Revenues
Revenues by type are as follows:
Three months ended Six months ended
July 2,July 3,July 2,July 3,
(In millions)2022202120222021
Revenues
Consumables
$4,993 $5,372 $11,103 $11,336 
Instruments
2,010 1,842 3,917 3,734 
Services
3,967 2,059 7,768 4,109 
Consolidated revenues$10,970 $9,273 $22,788 $19,179 
Revenues by geographic region based on customer location are as follows:
Three months endedSix months ended
July 2,July 3,July 2,July 3,
(In millions)2022202120222021