Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Thermo Fisher Scientific Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Federal	228)	813)	446)	521)	267)
Non-U.S.	1,206)	633)	1,148)	423)	544)
State	150)	254)	160)	175)	62)
Current income tax provision	1,584)	1,700)	1,754)	1,119)	873)
Federal	(551)	(611)	(227)	(237)	(222)
Non-U.S.	(647)	(314)	(399)	(18)	(252)
State	(102)	(72)	(19)	(14)	(25)
Deferred income tax benefit	(1,300)	(997)	(645)	(269)	(499)
Provision for income taxes	284)	703)	1,109)	850)	374)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Current income tax provision	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Thermo Fisher Scientific Inc. current income tax provision decreased from 2021 to 2022 and from 2022 to 2023.
Deferred income tax benefit	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Thermo Fisher Scientific Inc. deferred income tax benefit decreased from 2021 to 2022 and from 2022 to 2023.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Thermo Fisher Scientific Inc. provision for income taxes decreased from 2021 to 2022 and from 2022 to 2023.

Thermo Fisher Scientific Inc., effective income tax rate (EITR) reconciliation

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Statutory federal income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
	Effective income tax rate	4.51%	8.97%	12.54%	11.76%	9.19%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Thermo Fisher Scientific Inc. effective income tax rate decreased from 2021 to 2022 and from 2022 to 2023.

Thermo Fisher Scientific Inc., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Depreciation and amortization	(4,286)	(4,277)	(4,687)	(2,962)	(3,084)
Net operating loss and credit carryforwards	2,385)	1,951)	1,652)	1,668)	1,231)
Reserves and accruals	157)	140)	162)	164)	144)
Accrued compensation	299)	259)	318)	253)	261)
Inventory basis difference	275)	364)	181)	112)	99)
Deferred interest	753)	445)	295)	227)	18)
Research and development and other capitalized costs	380)	220)	—)	—)	—)
Unrealized (gains) losses on hedging instruments	(66)	(199)	(33)	242)	10)
Other, net	329)	435)	251)	124)	110)
Deferred tax assets (liabilities), net before valuation allowance	226)	(662)	(1,861)	(172)	(1,211)
Valuation allowance	(1,317)	(1,322)	(968)	(933)	(408)
Deferred tax assets (liabilities), net	(1,091)	(1,984)	(2,829)	(1,105)	(1,619)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax assets (liabilities), net	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Thermo Fisher Scientific Inc. deferred tax assets (liabilities), net increased from 2021 to 2022 and from 2022 to 2023.

Thermo Fisher Scientific Inc., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Deferred tax assets	831)	865)	1,008)	689)	573)
	Deferred tax liabilities	1,922)	2,849)	3,837)	1,794)	2,192)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Thermo Fisher Scientific Inc. deferred tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Thermo Fisher Scientific Inc. deferred tax liabilities decreased from 2021 to 2022 and from 2022 to 2023.

Thermo Fisher Scientific Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	98,726)	97,154)	95,123)	69,052)	58,381)
Less: Noncurrent deferred tax assets, net	831)	865)	1,008)	689)	573)
Total assets (adjusted)	97,895)	96,289)	94,115)	68,363)	57,808)
Adjustment to Total Liabilities
Total liabilities (as reported)	51,884)	53,006)	54,146)	34,535)	28,706)
Less: Noncurrent deferred tax liabilities, net	1,922)	2,849)	3,837)	1,794)	2,192)
Total liabilities (adjusted)	49,962)	50,157)	50,309)	32,741)	26,514)
Adjustment to Total Thermo Fisher Scientific Inc. Shareholders’ Equity
Total Thermo Fisher Scientific Inc. shareholders’ equity (as reported)	46,735)	43,978)	40,793)	34,507)	29,675)
Less: Net deferred tax assets (liabilities)	(1,091)	(1,984)	(2,829)	(1,105)	(1,619)
Total Thermo Fisher Scientific Inc. shareholders’ equity (adjusted)	47,826)	45,962)	43,622)	35,612)	31,294)
Adjustment to Net Income Attributable To Thermo Fisher Scientific Inc.
Net income attributable to Thermo Fisher Scientific Inc. (as reported)	5,995)	6,950)	7,725)	6,375)	3,696)
Add: Deferred income tax expense (benefit)	(1,300)	(997)	(645)	(269)	(499)
Net income attributable to Thermo Fisher Scientific Inc. (adjusted)	4,695)	5,953)	7,080)	6,106)	3,197)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Thermo Fisher Scientific Inc., Financial Data: Reported vs. Adjusted

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Thermo Fisher Scientific Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	13.99%	15.47%	19.70%	19.79%	14.47%
Adjusted net profit margin	10.96%	13.25%	18.06%	18.95%	12.52%
Total Asset Turnover
Reported total asset turnover	0.43	0.46	0.41	0.47	0.44
Adjusted total asset turnover	0.44	0.47	0.42	0.47	0.44
Financial Leverage
Reported financial leverage	2.11	2.21	2.33	2.00	1.97
Adjusted financial leverage	2.05	2.09	2.16	1.92	1.85
Return on Equity (ROE)
Reported ROE	12.83%	15.80%	18.94%	18.47%	12.45%
Adjusted ROE	9.82%	12.95%	16.23%	17.15%	10.22%
Return on Assets (ROA)
Reported ROA	6.07%	7.15%	8.12%	9.23%	6.33%
Adjusted ROA	4.80%	6.18%	7.52%	8.93%	5.53%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Thermo Fisher Scientific Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Thermo Fisher Scientific Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Thermo Fisher Scientific Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Thermo Fisher Scientific Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Thermo Fisher Scientific Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Thermo Fisher Scientific Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Thermo Fisher Scientific Inc.	5,995)	6,950)	7,725)	6,375)	3,696)
Revenues	42,857)	44,915)	39,211)	32,218)	25,542)
Profitability Ratio
Net profit margin¹	13.99%	15.47%	19.70%	19.79%	14.47%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Thermo Fisher Scientific Inc.	4,695)	5,953)	7,080)	6,106)	3,197)
Revenues	42,857)	44,915)	39,211)	32,218)	25,542)
Profitability Ratio
Adjusted net profit margin²	10.96%	13.25%	18.06%	18.95%	12.52%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Revenues
= 100 × 5,995 ÷ 42,857 = 13.99%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Thermo Fisher Scientific Inc. ÷ Revenues
= 100 × 4,695 ÷ 42,857 = 10.96%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Thermo Fisher Scientific Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues	42,857)	44,915)	39,211)	32,218)	25,542)
Total assets	98,726)	97,154)	95,123)	69,052)	58,381)
Activity Ratio
Total asset turnover¹	0.43	0.46	0.41	0.47	0.44
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues	42,857)	44,915)	39,211)	32,218)	25,542)
Adjusted total assets	97,895)	96,289)	94,115)	68,363)	57,808)
Activity Ratio
Adjusted total asset turnover²	0.44	0.47	0.42	0.47	0.44

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 42,857 ÷ 98,726 = 0.43

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 42,857 ÷ 97,895 = 0.44

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Thermo Fisher Scientific Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	98,726)	97,154)	95,123)	69,052)	58,381)
Total Thermo Fisher Scientific Inc. shareholders’ equity	46,735)	43,978)	40,793)	34,507)	29,675)
Solvency Ratio
Financial leverage¹	2.11	2.21	2.33	2.00	1.97
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	97,895)	96,289)	94,115)	68,363)	57,808)
Adjusted total Thermo Fisher Scientific Inc. shareholders’ equity	47,826)	45,962)	43,622)	35,612)	31,294)
Solvency Ratio
Adjusted financial leverage²	2.05	2.09	2.16	1.92	1.85

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total Thermo Fisher Scientific Inc. shareholders’ equity
= 98,726 ÷ 46,735 = 2.11

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Thermo Fisher Scientific Inc. shareholders’ equity
= 97,895 ÷ 47,826 = 2.05

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Thermo Fisher Scientific Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Thermo Fisher Scientific Inc.	5,995)	6,950)	7,725)	6,375)	3,696)
Total Thermo Fisher Scientific Inc. shareholders’ equity	46,735)	43,978)	40,793)	34,507)	29,675)
Profitability Ratio
ROE¹	12.83%	15.80%	18.94%	18.47%	12.45%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Thermo Fisher Scientific Inc.	4,695)	5,953)	7,080)	6,106)	3,197)
Adjusted total Thermo Fisher Scientific Inc. shareholders’ equity	47,826)	45,962)	43,622)	35,612)	31,294)
Profitability Ratio
Adjusted ROE²	9.82%	12.95%	16.23%	17.15%	10.22%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Total Thermo Fisher Scientific Inc. shareholders’ equity
= 100 × 5,995 ÷ 46,735 = 12.83%

² Adjusted ROE = 100 × Adjusted net income attributable to Thermo Fisher Scientific Inc. ÷ Adjusted total Thermo Fisher Scientific Inc. shareholders’ equity
= 100 × 4,695 ÷ 47,826 = 9.82%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Thermo Fisher Scientific Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Thermo Fisher Scientific Inc.	5,995)	6,950)	7,725)	6,375)	3,696)
Total assets	98,726)	97,154)	95,123)	69,052)	58,381)
Profitability Ratio
ROA¹	6.07%	7.15%	8.12%	9.23%	6.33%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Thermo Fisher Scientific Inc.	4,695)	5,953)	7,080)	6,106)	3,197)
Adjusted total assets	97,895)	96,289)	94,115)	68,363)	57,808)
Profitability Ratio
Adjusted ROA²	4.80%	6.18%	7.52%	8.93%	5.53%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Total assets
= 100 × 5,995 ÷ 98,726 = 6.07%

² Adjusted ROA = 100 × Adjusted net income attributable to Thermo Fisher Scientific Inc. ÷ Adjusted total assets
= 100 × 4,695 ÷ 97,895 = 4.80%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Thermo Fisher Scientific Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Thermo Fisher Scientific Inc. (NYSE:TMO)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Thermo Fisher Scientific Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Thermo Fisher Scientific Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)