Thermo Fisher Scientific(TMO) - 2023 Q4 - Annual Report

Financial Performance - Revenues for 2023 were $42,857 million, a decrease of 5% compared to$ 44,915 million in 2022[147]. - GAAP operating income for 2023 was $6,859 million, down 18% from$ 8,393 million in 2022, resulting in a GAAP operating income margin of 16.0%[147]. - Adjusted operating income (non-GAAP) decreased by 11% to $9,810 million in 2023, with an adjusted operating income margin of 22.9%[147]. - Organic revenue growth was reported at (5)%, with a 1% positive impact from acquisitions[149]. - Sales of COVID-19 testing products were$ 0.33 billion in 2023, significantly down from $3.11 billion in 2022[150]. - Life Sciences Solutions segment revenues fell by 26% to$ 9,977 million, with segment income decreasing by 39% to $3,420 million[159]. - Analytical Instruments segment revenues increased by 10% to$ 7,263 million, with segment income rising by 27% to $1,908 million[160]. - Specialty Diagnostics segment revenues decreased by 8% to$ 4,405 million, while segment income increased by 10% to $1,124 million[161]. - Laboratory Products and Biopharma Services segment revenues grew by 2% to$ 23,041 million, with segment income increasing by 17% to $3,358 million[163]. Cash Flow and Debt - As of December 31, 2023, cash and cash equivalents totaled$ 8,077 million, a decrease from $8,524 million in 2022[172]. - Total debt increased to$ 34,917 million in 2023 from $34,488 million in 2022[172]. - Net cash provided by operating activities was$ 8,406 million in 2023, down from $9,154 million in 2022[175]. - Free cash flow for 2023 was reported at$ 7,014 million, compared to $6,935 million in 2022[194]. - The company has a revolving credit facility providing up to$ 5,000 million, with no borrowings outstanding as of December 31, 2023[174]. Acquisitions and Stock Repurchase - The company spent $2,700 million on the acquisition of The Binding Site Group and$ 910 million on CorEvitas, LLC in 2023[180]. - The company repurchased $3,000 million of its common stock (5.2 million shares) during 2023[182]. Tax and Valuation - The company expects its GAAP effective tax rate for 2024 to be between 4% and 6%, with an adjusted tax rate of approximately 10.5%[167]. - The liability for unrecognized tax benefits was$ 0.54 billion at December 31, 2023, down from $0.57 billion in 2022[202]. - The company's tax valuation allowance remained at$ 1.32 billion as of December 31, 2023[207]. Goodwill and Intangible Assets - Goodwill and indefinite-lived intangible assets totaled $44.02 billion and$ 1.24 billion, respectively, as of December 31, 2023[198]. - The company recorded definite-lived intangible asset impairments of $0.01 billion in 2023[201]. - The company performed quantitative goodwill impairment tests and found no impairments at the end of the tenth fiscal month of 2023[199]. Currency and Interest Rate Impact - A 100 basis point decrease in interest rates would increase the fair value of the company's debt by approximately$ 2.33 billion[210]. - A 10% depreciation in year-end 2023 functional currencies relative to the U.S. dollar would reduce shareholders' equity by approximately $1.26 billion[212]. - A 10% depreciation in non-functional currency exchange rates related to forward currency-exchange contracts would result in an unrealized loss of$ 43 million[214]. - A 10% depreciation in non-functional currency exchange rates applied to certain cash balances would negatively impact net income by $13 million[215]. Earnings Per Share - The adjusted diluted earnings per share (EPS) for 2023 was$ 21.55, down from $23.24 in 2022[192]. - The adjusted operating income for 2023 was$ 9,810 million, with an adjusted operating income margin of 22.9%, compared to $10,985 million and 24.5% in 2022[192]. Capital Expenditures - The company expects capital expenditures for property, plant, and equipment to be between$ 1,300 million and $1,500 million for 2024[181].