Thermo Fisher Scientific(TMO) - 2024 Q4 - Annual Report

Financial Performance - Revenues for 2024 were $42,879 million, a slight increase of 0% compared to $42,857 million in 2023[144]. - GAAP operating income increased by 7% to $7,337 million in 2024 from $6,859 million in 2023, resulting in a GAAP operating income margin of 17.1%[144]. - Adjusted operating income (non-GAAP measure) was $9,707 million in 2024, a decrease of 1% from $9,810 million in 2023, with an adjusted operating income margin of 22.6%[144]. - Organic revenue growth was flat at 0% in 2024, with COVID-19 related product sales declining to $0.10 billion from $0.33 billion in 2023[146]. - The company reported a GAAP diluted earnings per share of $16.53 for 2024, up from $15.45 in 2023[193]. Segment Performance - Life Sciences Solutions segment revenues decreased by 3% to $9,631 million in 2024, primarily due to reduced COVID-19 related revenue[157]. - Analytical Instruments segment revenues increased by 3% to $7,463 million, driven by strong growth in the electron microscopy business[158]. - Specialty Diagnostics segment revenues grew by 2% to $4,512 million, supported by growth in immunodiagnostics and transplant diagnostics[159]. - Laboratory Products and Biopharma Services segment revenues increased by 1% to $23,157 million, with flat organic revenues due to decreased demand for COVID-19 related activities[161]. Cash Flow and Debt - The company generated free cash flow of $7,324 million in 2024, compared to $7,014 million in 2023, reflecting a year-over-year increase[175]. - As of December 31, 2024, the company's cash and cash equivalents decreased to $4,009 million from $8,077 million in 2023[172]. - Total debt as of December 31, 2024, was $31,275 million, down from $34,917 million in 2023[172]. - Net cash provided by operating activities was $8,667 million in 2024, an increase from $8,406 million in 2023[175]. Acquisitions and Investments - The company executed strategic acquisitions, including The Binding Site Group and CorEvitas, enhancing its diagnostic and biopharma service capabilities[150][151]. - The acquisition of Olink Holding AB (publ) in 2024 utilized $3,130 million in cash, contributing to the company's investing activities[179]. - The company repurchased $4,000 million of its common stock in 2024, which included 7.4 million shares[183]. - The company expects capital expenditures for property, plant, and equipment in 2025 to be between $1,400 million and $1,700 million[182]. Tax and Valuation - The company expects its GAAP effective tax rate for 2025 to be between 9% and 11%, with an adjusted tax rate of approximately 11.5%[166]. - The company's liability for unrecognized tax benefits was $0.52 billion at December 31, 2024, down from $0.54 billion at December 31, 2023[202]. - The company's tax valuation allowance decreased to $1.04 billion at December 31, 2024, from $1.32 billion at December 31, 2023[204]. Goodwill and Intangible Assets - Goodwill and indefinite-lived intangible assets totaled $45.85 billion and $1.24 billion, respectively, as of December 31, 2024[197]. - 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 2024[200]. - The company uses assumptions related to revenue and operating income margin growth rates for impairment testing of goodwill and indefinite-lived intangible assets[197]. Currency and Exchange Rate Impact - A 10% depreciation in year-end 2024 functional currencies relative to the U.S. dollar would reduce shareholders' equity by approximately $2.05 billion[210]. - A 10% depreciation in year-end 2024 non-functional currency exchange rates related to forward currency-exchange contracts would result in an unrealized loss of $32 million[211]. - A 10% depreciation in non-functional currency exchange rates applied to certain cash balances would negatively impact the company's net income by $16 million[212]. Credit Facilities - The company has a revolving credit facility providing up to $5,000 million, with no borrowings outstanding as of December 31, 2024[174]. - The total estimated fair value of the company's debt was $28.53 billion at December 31, 2024[208].