Thermo Fisher Scientific(US:TMO)2023-02-22 16:00Financial Performance - Revenues for 2022 were $44,915 million, a 15% increase from $39,211 million in 2021[147] - GAAP operating income decreased by 16% to $8,393 million in 2022, with an operating income margin of 18.7%, down from 25.6% in 2021[147] - Adjusted operating income (non-GAAP) was $10,985 million, a 9% decline from $12,138 million in 2021, with a margin of 24.5%[147] - The adjusted earnings per share (EPS) for 2022 was $23.24, compared to $25.13 in 2021[198] Revenue Segments - Sales of COVID-19 testing products were $3.11 billion in 2022, down from $7.26 billion in 2021, reflecting decreased demand[149] - The Laboratory Products and Biopharma Services segment saw a 51% revenue increase to $22,511 million, with organic growth of 10%[167] - The Analytical Instruments segment reported a 9% revenue increase to $6,624 million, with organic growth of 14%[165] - The Life Sciences Solutions segment experienced a 13% revenue decline to $13,532 million, with organic revenue down 12%[163] Tax and Interest - The GAAP tax rate decreased to 9.0% in 2022 from 12.5% in 2021, influenced by releases of valuation allowances[172] - Net interest expense decreased to $454 million in 2022 from $493 million in 2021, primarily due to lower average interest rates[168] - The company's cash payments for income taxes were $1.23 billion in 2022, down from $2.18 billion in 2021[173] - The expected GAAP effective tax rate for 2023 is projected to be between 7% and 9%, with an adjusted tax rate of approximately 11%[174] Cash Flow and Capital Management - As of December 31, 2022, cash and cash equivalents totaled $8.524 billion, an increase from $4.477 billion in 2021[177] - Free cash flow for 2022 was reported at $6.935 billion, compared to $6.809 billion in 2021[181] - The company utilized $0.04 billion for acquisitions in 2022, significantly lower than $19.40 billion in 2021[185] - The company repurchased $3.00 billion of its common stock in 2022, with an additional $3.00 billion repurchased early in 2023[187] Acquisitions and Goodwill - The company executed notable acquisitions, including The Binding Site Group, enhancing its diagnostics portfolio[160] - Goodwill and indefinite-lived intangible assets totaled $41.20 billion and $1.24 billion, respectively, as of December 31, 2022[202] - The company's tax valuation allowance increased to $1.32 billion at December 31, 2022, compared to $0.97 billion at December 31, 2021, driven by additional tax assets from an audit settlement[210] Debt and Interest Rate Sensitivity - The total estimated fair value of the company's debt was $30.29 billion at December 31, 2022[215] - A 100 basis point increase in interest rates would have increased the company's annual pre-tax interest expense by approximately $35 million in 2022[216] Currency and Impairments - A 10% depreciation in year-end 2022 functional currencies relative to the U.S. dollar would reduce shareholders' equity by approximately $1.45 billion[217] - A 10% depreciation in year-end 2022 non-functional currency exchange rates related to the company's contracts would result in an additional unrealized loss of $9 million on forward currency-exchange contracts[218] - The company recorded impairments of $0.12 billion in definite-lived intangible assets in 2021[207] - The company did not perform quantitative goodwill impairment tests for certain reporting units as no events or circumstances indicated a reduction in fair value[204] - The company uses significant judgment in estimating the fair value of acquisition-related intangible assets based on projected cash flows, customer attrition, and technology obsolescence rates[201]