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$1,249.7 $ 949.0 $ 805.5 $720.7 $623.0 $540.7 $419.9 $359.1 $286.2 $253.3
Revenues
Costs and Expenses:
Cost of revenues 755.5 609.0 533.6 465.3 424.2 359.6 280.3 244.8 194.9 172.6
Expenses for R&D and new lines
of business 87.0 62.3 52.6 54.0 46.4 43.2 31.4 26.5 21.5 21.6
Selling, general and adminis-
trative expenses 283.6 209.4 177.3 163.1 130.0 113.7 91.5 72.7 56.9 48.2
Costs associated with divisional
and product restructuring 8.3 ” 3.7 1.0 2.2 0.9 3.5 7.1 4.3 0.1
1,134.4 880.7 767.2 683.4 602.8 517.4 406.7 351.1 277.6 242.5
Gain on Issuance of Stock by
Subsidiaries 39.9 30.2 27.4 20.3 16.8 6.0 16.1 15.9 9.1 ”
Other Income (Expense), Net (24.1) 3.5 13.5 2.3 3.3 4.5 (0.6) (3.3) (4.7) (5.1)
Income Before Income Taxes,
Minority Interest, and Cum-
ulative Effect of Change in
Accounting Principle 131.1 102.0 79.2 59.9 40.3 33.8 28.7 20.6 13.0 5.7
Provision for Income Taxes 33.4 27.5 24.8 17.8 10.4 9.0 6.0 4.0 2.5 0.1
Minority Interest Expense 21.1 13.9 7.3 7.1 3.3 2.0 1.9 0.5 (0.1) (0.1)
Income Before Cumulative Effect
of Change in Accounting
76.6 60.6 47.1 35.0 26.6 22.8 20.8 16.1 10.6 5.7
Principle
Cumulative Effect of Change in
Accounting Principle, Net of
Taxe ” 1.4 ” ” ” ” ” ” ” ”
Net Income $76.6 $59.2 $ 47.1 $ 35.0 $ 26.6 $ 22.8 $ 20.8 $ 16.1 $ 10.6 $ 5.7
Earnings per Share Before
Cumulative Effect of Change
in Accounting Principle:
Primary $ 1.75 $ 1.51 $ 1.31 $1.09 $ .86 $ .77 $ .68 $ .55 $ .42 $ .24
Fully diluted $ 1.57 $ 1.41 $ 1.23 $1.03 $ .84 $ .75 $ .67 $ .54 $ .41 $ .23
Earnings per Share:
Primary $ 1.75 $ .48 $ 1.31 $1.09 $ .86 $ .77 $ .68 $ .55 $ .42 $ .24
Fully diluted $ 1.57 $ 1.38 $ 1.23 $1.03 $ .84 $ .75 $ .67 $ .54 $ .41 $ .23
Balance Sheet Data:
Working capital $ 828.3 $ 503.4 $ 463.5 $241.4 $276.0 $218.8 $210.9 $124.3 $ 79.1 $ 51.3
Total assets 2,473.7 1,818.3 1,199.5 904.4 664.1 524.4 460.8 332.6 240.9 208.0
Net assets related to construc-
tion projects 9.4 23.8 29.4 ” ” ” ” ” ” ”
Long-term obligations 647.5 494.2 255.0 210.0 176.9 152.7 135.7 61.4 49.1 47.5
Minority interest 277.7 164.3 122.5 83.9 51.8 22.6 25.8 20.1 6.6 1.3
Common stock of subsidiaries
subject to redemption 14.5 5.5 5.5 8.7 13.1 ” ” ” ” ”
Shareholders™ investment 858.5 552.9 480.9 310.2 226.4 194.3 173.5 153.1 106.7 87.8
.......................................................................................................................................................

a. Reflects the February 1993 acquisition of Spectra-Physics Analytical and the Company™s 1993 public offering of common stock for net pro-
ceeds of $246.0 million.
b. Reflects the August 1992 acquisition of Nicoles Instrument Corporation and the issuance of $260.0 million principal amount of convertible
debentures.
c. Reflects the issuance of $164.0 million principal amount of convertible debentures.
d. Reflects the May 1990 acquisition of Finnigan Corporation.
e. Reflects the adoption in fiscal 1992 of Statement of Financial Accounting Standards No. 106, “Accounting for Post-retirement Benefits Other
Than Pensions.”
305
Entity Accounting Analysis




8-29 Part 2 Business Analysis and Valuation Tools




EXHIBIT 4
Thermo Electron Summarized Financial Statements

CONSOLIDATED INCOME STATEMENT
(in thousands except per-share amounts) 1993 1992 1991
Thermo Electron Corporation




.................................................................................................................................................
Revenues:
Product sales and revenues $1,103,558 $ 808,928 $ 666,565
Service revenues 121,987 114,268 112,003
Research and development contract revenues 24,173 25,776 26,916
1,249,718 948,972 805,484
Costs and Expenses:
Cost of products 664,201 521,668 444,273
Cost of services 91,292 87,307 89,347
Expenses for research and development and
new lines of businessa 87,027 62,343 52,609
Selling, general and administrative expenses 283,390 209,392 177,304
Costs associated with division and product (Note 11) 8,261 ” 3,709
1,134,371 880,710 767,242
Gain on Issuance of Stock by Subsidiaries (Note 9) 39,863 30,212 27,367
Other Income (Expense), Net (Note 10) (24,091) 3,496 13,564
Income Before Income Taxes, Minority Interest, and
Cumulative Effect of Change in Accounting Principle 131,119 101,970 79,173
Provision for Income Taxes (Note 8) 33,400 27,474 24,850
Minority Interest Expense 21,086 13,902 7,269
Income Before Cumulative Effect of Change in
Accounting Principle 76,633 60,594 47,054
Cumulative Effect of Change in Accounting Principle,
Net of Tax (Note 7) ” 1,438 ”
Net Income $ 76,633 $ 59,156 $ 47,054
Earnings per Share Before Cumulative Effect of
Change in Accounting Principle:
Primary $ 1.75 $ 1.51 $ 1.31
Fully diluted $ 1.57 $ 1.41 $ 1.23
Earnings per Share:
Primary $ 1.75 $ 1.48 $ 1.31
Fully diluted $ 1.57 $ 1.38 $ 1.23
Weighted Average Shares:
Primary 43,779 40,049 35,836
Fully diluted 55,520 47,163 41,711
.................................................................................................................................................
a. Includes costs of: Research and development contracts $ 20,435 $ 19,426 $ 21,196
a. Includes costs of: Internally funded research and development 58,943 38,675 26,171
a. Includes costs of: Other expenses for new lines of business 7,649 4,242 5,242
$ 87,027 $ 62,343 $ 52,609
306 Entity Accounting Analysis




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Entity Accounting Analysis




CONSOLIDATED BALANCE SHEET
(in thousands except per-share amounts) 1993 1992
......................................................................................................................................

ASSETS
Current Assets:




Thermo Electron Corporation
Cash and cash equivalents $ 325,744 $ 190,601
Short-term investments, at cost (quoted market value of $377,183
and $180,060) 374,450 178,101
Accounts receivable, less allowances of $14,129 and $11,341 267,377 204,750
Unbilled contract costs and fees 32,574 25,941
Inventories:
Work in process and ¬nished goods 82,385 60,629
Raw materials and supplies 110,437 106,619
Prepaid income taxes (Note 8) 39,258 54,377
Prepaid expenses 12,318 8,716
1,244,543 829,734
Assets Related to Projects Under Construction:
Restricted funds (quoted market value of $34,100 and $95,639) 34,100 95,348
Facilities under construction 128,040 133,876
162,140 229,224
Property, Plant and Equipment, at Cost:
Land 40,570 35,729
Buildings 116,895 99,502
Alternative-energy facilities 199,800 30,554
Machinery, equipment and leasehold improvements 224,629 205,508
581,894 371,293
Less: Accumulated depreciation and amortization 134,423 113,383
447,471 257,910
Long-term Marketable Securities, at Cost (quoted market value of
$45,125 and $45,731) 43,630 44,497
Other Assets 102,347 92,870

Cost in Excess of Net Assets of Acquired Companies (Note 2) 473,579 364,030

$2,473,710 $1,818,265
......................................................................................................................................
307
Entity Accounting Analysis




8-31 Part 2 Business Analysis and Valuation Tools




CONSOLIDATED BALANCE SHEET (continued)
(in thousands except per-share amounts) 1993 1992
...................................................................................................................................................

LIABILITIES AND SHAREHOLDERS™ INVESTMENT
Current Liabilities:
Thermo Electron Corporation




Notes payable $ 45,851 $ 22,034
Accounts payable 85,278 69,473
Billings in excess of contract costs and fees 8,564 7,987
Accrued payroll and employee bene¬ts 49,029 45,115
Accrued income taxes (Note 8) 7,713 9,796
Accrued installation and warranty costs 26,049 17,179
Other accrued expenses (Note 2) 193,762 154,786
416,246 326,370
Deferred Income Taxes (Note 8) 48,387 34,171
Other Deferred Items 58,152 35,500
Liabilities Related to Projects Under Construction (Note 5):
Payables and accrued expenses 10,680 5,874
Tax-exempt obligations 142,069 199,536
152,749 205,410
Long-term Obligations (Note 5):
Senior convertible obligations 275,000 260,000
Subordinated convertible obligations 238,386 199,829
Nonrecourse tax-exempt obligations 108,800 ”
Other 25,275 34,323
647,461 494,152

Minority Interest 277,681 164,293
Commitments and Contingencies (Note 6)
Common Stock of Subsidiaries Subject to Redemption ($15,390
and $5,468 redemption values) 14,511 5,468
Shareholders™ Investment (Notes 3 and 4):
Preferred stock, $100 par value, 50,000 shares authorized; none issued
Common stock, $1 par value, 100,000,000 shares authorized;
47,950,580 and 27,099,598 shares issued 47,951 27,100
Capital in excess of par value 467,076 257,105
Retained earnings 362,138 285,505
877,165 569,710
Treasury stock at cost, 31,898 and 85,342 shares (1,212) (3,810)
Cumulative translation adjustment (13,591) (7,949)
Deferred compensation (Note 7) (3,839) (5,050)
858,523 552,901
$2,473,710 $1,818,265
...................................................................................................................................................
308 Entity Accounting Analysis




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Entity Accounting Analysis




CONSOLIDATED CASH FLOW STATEMENT
(in thousands) 1993 1992 1991
..............................................................................................................................................
OPERATING ACTIVITIES:
Net income $ 76,633 $ 59,156 $ 47,054
Adjustments to reconcile net income to net cash provided by operating activities:




Thermo Electron Corporation
Cumulative effect of change in accounting principle (Note 7) ” 1,438 ”
Depreciation and amortization 42,356 29,228 23,391
Costs associated with divisional and product restructuring (Note 11) 8,261 ” 3,709
Equity in losses of unconsolidated subsidiaries 21,076 3,948 1,663
Provision for losses on accounts receivable 2,675 2,021 3,020
Increase in deferred income taxes 13,888 12,273 169
Gain on sale of investments (2,469) (4,968) (7,622)
Gain on issuance of stock by subsidiaries (Note 9) (39,863) (30,212) (27,367)
Minority interest expense 21,086 13,902 7,269
Other noncash expenses 7,850 11,549 6,804
Changes in current accounts, excluding the effects of acquisitions:
Accounts receivable (43,171) (10,763) (10,220)
Inventories (6,525) (4,753) 8,224
Other current assets (230) (9,860) 5,276
Accounts payable 10,014 (2,479) (10,140)
Other current liabilities 15,355 (15,363) (11,684)
Other (198) (175) (142)
Net cash provided by operating activities 126,738 54,942 39,404

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