THERMO FISHER SCIENTIFIC INC.TMO

THERMO FISHER SCIENTIFIC INC. Revenue Disclosure

10-KFiled Feb 22, 20242 min read
Revenues and Contract-related Balances
Disaggregated Revenues
Revenues by type are as follows:
(In millions)202320222021
Revenues
Consumables
$17,597 $20,624 $22,608 
Instruments
7,646 7,924 7,753 
Services
17,614 16,367 8,850 
Consolidated revenues
$42,857 $44,915 $39,211 
Revenues by geographic region based on customer location are as follows:
(In millions)202320222021
Revenues
North America
$22,764 $24,594 $19,659 
Europe
10,741 10,762 11,134 
Asia-Pacific
7,873 8,115 7,218 
Other regions
1,479 1,444 1,200 
Consolidated revenues
$42,857 $44,915 $39,211 
Each reportable segment earns revenues from consumables, instruments and services in North America, Europe, Asia-Pacific and other regions. See Note 4 for revenues by reportable segment and other geographic data.
Remaining Performance Obligations
The aggregate amount of the transaction price allocated to the remaining performance obligations for all open customer contracts as of December 31, 2023 was $26.92 billion. The company will recognize revenues for these performance obligations as they are satisfied, approximately 53% of which is expected to occur within the next twelve months. Amounts expected to occur thereafter generally relate to contract manufacturing, clinical research and extended warranty service agreements, which typically have durations of three to five years.
Contract-related Balances
Noncurrent contract assets and noncurrent contract liabilities are included within other assets and other long-term liabilities in the accompanying balance sheet, respectively. Contract asset and liability balances are as follows:
December 31,December 31,
(In millions)20232022
Current contract assets, net$1,443 $1,312 
Noncurrent contract assets, net4 7 
Current contract liabilities2,689 2,601 
Noncurrent contract liabilities1,499 1,179 
Substantially all of the current contract liabilities balance at December 31, 2022 and 2021 was recognized in revenues during 2023 and 2022, respectively. Noncurrent contract liabilities increased during 2023 primarily due to advanced payments from a customer.

Historical Timeline

Fiscal YearFiled
2023Feb 22, 2024Showing above
2022Feb 23, 2023
2021Feb 24, 2022
2020Feb 25, 2021
2019Feb 26, 2020
2018Feb 27, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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