Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | May 03, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-30833 | |
Entity Registrant Name | BRUKER CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3110160 | |
Entity Address, Address Line One | 40 Manning Road | |
Entity Address, City or Town | Billerica | |
Entity Address, Postal Zip Code | 01821 | |
Entity Address, State or Province | MA | |
City Area Code | 978 | |
Local Phone Number | 663-3660 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Trading Symbol | BRKR | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock | |
Entity Common Stock, Shares Outstanding | 149,255,424 | |
Entity Central Index Key | 0001109354 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 816.1 | $ 1,068.2 |
Short-term investments | 100 | 100 |
Accounts receivable, net | 413.8 | 416.9 |
Inventories | 739.9 | 710.1 |
Assets held for sale | 0 | 4.4 |
Other current assets | 181 | 172.2 |
Total current assets | 2,250.8 | 2,471.8 |
Property, plant and equipment, net | 403.8 | 406.1 |
Goodwill | 384.3 | 339.5 |
Intangible assets, net | 227.5 | 211.8 |
Other long-term assets | 284.3 | 220.8 |
Total assets | 3,550.7 | 3,650 |
Current liabilities: | ||
Current portion of long-term debt | 11 | 112.4 |
Accounts payable | 161.2 | 147.4 |
Customer advances | 214.7 | 197.5 |
Other current liabilities | 493.6 | 481.2 |
Total current liabilities | 880.5 | 938.5 |
Long-term debt | 1,205.4 | 1,221.8 |
Other long-term liabilities | 426.7 | 404.9 |
Commitments and contingencies (Note 14) | ||
Redeemable noncontrolling interest | 6.8 | 0.2 |
Shareholders' equity: | ||
Preferred stock, $0.01 par value 5,000,000 shares authorized, none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value 260,000,000 shares authorized, 175,046,105 and 174,905,035 shares issued and 149,291,702 and 150,753,687 shares outstanding at March 31, 2022 and December 31, 2021, respectively | 1.7 | 1.7 |
Treasury stock, at cost, 25,754,403 and 24,151,348 shares at March 31, 2022 and December 31, 2021, respectively | (925.9) | (820.3) |
Accumulated other comprehensive loss, net of tax | (17.1) | (8.2) |
Other shareholders' equity | 1,958.3 | 1,897.3 |
Total shareholders' equity attributable to Bruker Corporation | 1,017 | 1,070.5 |
Noncontrolling interest in consolidated subsidiaries | 14.3 | 14.1 |
Total shareholders' equity | 1,031.3 | 1,084.6 |
Total liabilities, redeemable noncontrolling interest and shareholders' equity | $ 3,550.7 | $ 3,650 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 260,000,000 | 260,000,000 |
Common stock, shares issued | 175,046,105 | 174,905,035 |
Common stock, shares outstanding | 149,291,702 | 150,753,687 |
Treasury stock, shares | 25,754,403 | 24,151,348 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Total revenue | $ 595,000,000 | $ 554,700,000 |
Total cost of revenue | 288,700,000 | 276,000,000 |
Gross profit | 306,300,000 | 278,700,000 |
Operating expenses: | ||
Selling, general and administrative | 145,700,000 | 131,800,000 |
Research and development | 56,600,000 | 54,800,000 |
Other charges, net | 7,500,000 | 3,000,000 |
Total operating expenses | 209,800,000 | 189,600,000 |
Operating income | 96,500,000 | 89,100,000 |
Interest and other income (expense), net | (2,500,000) | (3,800,000) |
Income before income taxes and noncontrolling interest in consolidated subsidiaries | 94,000,000 | 85,300,000 |
Income tax provision | 31,900,000 | 27,500,000 |
Consolidated net income | 62,100,000 | 57,800,000 |
Net income attributable to noncontrolling interests in consolidated subsidiaries | 500,000 | 1,100,000 |
Net income attributable to Bruker Corporation | $ 61,600,000 | $ 56,700,000 |
Net income per common share attributable to Bruker Corporation shareholders: | ||
Basic | $ 0.41 | $ 0.37 |
Diluted | $ 0.41 | $ 0.37 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 150.4 | 151.8 |
Diluted (in shares) | 151.4 | 153.2 |
Comprehensive income | $ 53,200,000 | $ 41,600,000 |
Less: Comprehensive income attributable to noncontrolling interests | 200,000 | 900,000 |
Less: Comprehensive loss attributable to redeemable noncontrolling interest | (0.2) | 0 |
Comprehensive income attributable to Bruker Corporation | 53,200,000 | 40,700,000 |
Product | ||
Total revenue | 490,400,000 | 458,600,000 |
Total cost of revenue | 229,000,000 | 220,900,000 |
Service | ||
Total revenue | 103,200,000 | 94,100,000 |
Total cost of revenue | 59,600,000 | 54,800,000 |
Other | ||
Total revenue | 1,400,000 | 2,000,000 |
Total cost of revenue | $ 100,000 | $ 300,000 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Total Shareholders' Equity Attributable to Bruker Corporation | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests in Consolidated Subsidiaries | Redeemable Noncontrolling Interest |
Balance at beginning of period at Dec. 31, 2020 | $ 974.3 | $ 961.2 | $ 1.7 | $ (667) | $ 216.3 | $ 1,406.5 | $ 3.7 | $ 13.1 | |
Balance (in shares) at Dec. 31, 2020 | 151,987,081 | 22,058,529 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stock options exercised | 1.2 | 1.2 | 1.2 | ||||||
Stock options exercised (in shares) | 65,312 | ||||||||
RSU vested | (0.1) | (0.1) | (0.1) | ||||||
RSU vested (in shares) | 21,821 | ||||||||
Stock based compensation | 3.4 | 3.4 | 3.4 | ||||||
Shares purchased | (32.8) | 32.8 | $ 32.8 | ||||||
Shares purchased (in shares) | 530,729 | 530,729 | |||||||
Dividends declared to common stockholders | (6.1) | 6.1 | 6.1 | ||||||
Consolidated net income | (57.8) | (56.7) | (56.7) | (1.1) | |||||
Other comprehensive loss | (16) | (15.8) | (15.8) | (0.2) | |||||
Balance at end of period at Mar. 31, 2021 | 981.7 | 967.7 | $ 1.7 | $ (699.8) | 220.8 | 1,457.1 | (12.1) | 14 | |
Balance (in shares) at Mar. 31, 2021 | 151,543,485 | 22,589,258 | |||||||
Balance at beginning of period at Dec. 31, 2021 | 1,084.6 | 1,070.5 | $ 1.7 | $ (820.3) | 237.8 | 1,659.5 | (8.2) | 14.1 | $ 0.2 |
Balance (in shares) at Dec. 31, 2021 | 150,753,687 | 24,151,348 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stock options exercised | 3.1 | 3.1 | 3.1 | ||||||
Stock options exercised (in shares) | 118,630 | ||||||||
RSU vested (in shares) | 22,440 | ||||||||
Stock based compensation | 3.8 | 3.8 | 3.8 | ||||||
Shares purchased | (105.6) | 105.6 | $ 105.6 | ||||||
Shares purchased (in shares) | 1,603,055 | 1,603,055 | |||||||
Dividends declared to common stockholders | (7.5) | 7.5 | 7.5 | ||||||
PreOmics Acquisition - other shareholders | 6.8 | ||||||||
Consolidated net income | (62.1) | (61.6) | (61.6) | (0.5) | |||||
Other comprehensive loss | (9.2) | (8.9) | (8.9) | (0.3) | |||||
Balance at end of period at Mar. 31, 2022 | $ 1,031.3 | $ 1,017 | $ 1.7 | $ (925.9) | $ 244.7 | $ 1,713.6 | $ (17.1) | $ 14.3 | $ 6.8 |
Balance (in shares) at Mar. 31, 2022 | 149,291,702 | 25,754,403 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Dividends declared (per share) | $ 0.05 | $ 0.04 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Consolidated net income | $ 62.1 | $ 57.8 |
Adjustments to reconcile consolidated net income to cash flows from operating activities: | ||
Depreciation and amortization | 21.7 | 22.3 |
Stock-based compensation expense | 8 | 3.8 |
Deferred income taxes | (4) | 4.9 |
Other non-cash expenses, net | (6.2) | 4.9 |
Changes in operating assets and liabilities, net of acquisitions and divestitures: | ||
Accounts receivable | (2.4) | 0.8 |
Inventories | (49) | (41.6) |
Accounts payable and accrued expenses | (0.1) | 35.5 |
Income taxes payable, net | 0.6 | 10.1 |
Deferred revenue | 22.7 | 14.1 |
Customer advances | 22.6 | 2.5 |
Other changes in operating assets and liabilities, net | 1.8 | (17.1) |
Net cash provided by operating activities | 77.8 | 98 |
Cash flows from investing activities: | ||
Cash paid for strategic investments at cost | (12) | 0 |
Cash paid for acquisitions, net of cash acquired | (83.8) | (4) |
Purchases of property, plant and equipment | (19) | (24.7) |
Proceeds from sales of property, plant and equipment | 12.7 | 1.2 |
Net proceeds from cross-currency swap agreements | 0.3 | 3.5 |
Net cash used in investing activities | (101.8) | (24) |
Cash flows from financing activities: | ||
Repayment of other debt, net | (0.4) | (0.1) |
Repayment of Two thousand Twelve Notes Purchase Agreement | (105) | 0 |
Repayment of Two thousand Nineteen Notes Purchase Agreement | (0.8) | 0 |
Proceeds from issuance of common stock, net | 3.1 | 1.1 |
Payment of contingent consideration | (1.2) | (0.4) |
Payment of dividends to common stockholders | (7.5) | (6.1) |
Repurchase of common stock | (105.6) | (32.6) |
Net cash used in financing activities | (217.4) | (38.1) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (10.7) | (21) |
Net change in cash, cash equivalents and restricted cash | (252.1) | 14.9 |
Cash, cash equivalents and restricted cash at beginning of period | 1,071.7 | 685.5 |
Cash, cash equivalents and restricted cash at end of period | 819.6 | 700.4 |
Supplemental disclosure of cash flow information: | ||
Restricted cash period beginning balance | 3.5 | 3.7 |
Restricted cash period ending balance | $ 3.5 | $ 3.6 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2022 | |
Description of Business | |
Description of Business | 1. Description of Business Bruker Corporation, together with its consolidated subsidiaries (Bruker or the Company), develops, manufactures and distributes high-performance scientific instruments and analytical and diagnostic solutions that enable its customers to explore life and materials at microscopic, molecular and cellular levels. Many of the Company’s products are used to detect, measure and visualize structural characteristics of chemical, biological and industrial material samples. The Company’s products address the rapidly evolving needs of a diverse array of customers in life science research, pharmaceuticals, biotechnology, applied markets, cell biology, clinical research, microbiology, in vitro diagnostics, nanotechnology and materials science research. The Company has four operating segments, Bruker BioSpin Group, Bruker CALID Group, Bruker Scientific Instruments (BSI) Nano Segment and Bruker Energy & Supercon Technologies (BEST) . The Company has three reportable segments, BSI Life Science, BSI Nano, and BEST . For financial reporting purposes, the Bruker BioSpin Group and Bruker CALID Group operating segments are aggregated into the reportable BSI Life Science segment because each has similar economic characteristics, production processes, service offerings, types and classes of customers, methods of distribution and regulatory environments. Bruker BioSpin — The Bruker BioSpin Group designs, manufactures and distributes enabling life science tools based on magnetic resonance technology. Bruker BioSpin Group’s revenues are generated by academic and government research customers, pharmaceutical and biotechnology companies and nonprofit laboratories, as well as chemical, food and beverage, clinical and other industrial companies. Bruker CALID (Chemicals, Applied Markets, Life Science, In Vitro Diagnostics, Detection) — The Bruker CALID Group designs, manufactures and distributes life science mass spectrometry and ion mobility spectrometry solutions, analytical and process analysis instruments and solutions based on infrared and Raman molecular spectroscopy technologies and radiological/nuclear detectors for Chemical, Biological, Radiological, Nuclear and Explosive (CBRNE) detection. Customers of the Bruker CALID Group include academic institutions and medical schools; pharmaceutical, biotechnology and diagnostics companies; contract research organizations; nonprofit and for-profit forensics laboratories; agriculture, food and beverage safety laboratories; environmental and clinical microbiology laboratories; and hospitals and government departments and agencies. The BSI Nano segment designs, manufactures and distributes advanced X-ray instruments; atomic force microscopy instrumentation; advanced fluorescence optical microscopy instruments; analytical tools for electron microscopes and X-ray metrology; defect-detection equipment for semiconductor process control; handheld, portable and mobile X-ray fluorescence spectrometry instruments; spark optical emission spectroscopy systems; chip cytometry products and services for targeted spatial proteomics, multi-omic services; and products and services for spatial genomics research. Customers of the BSI Nano segment include academic institutions, governmental customers, nanotechnology companies, semiconductor companies, raw material manufacturers, industrial companies, biotechnology and pharmaceutical companies and other businesses involved in materials research and life science research analysis. The BEST reportable segment develops and manufactures superconducting and non-superconducting materials and devices for use in renewable energy, energy infrastructure, healthcare and “big science” research. The segment focuses on metallic low temperature superconductors for use in magnetic resonance imaging, nuclear magnetic resonance, fusion energy research and other applications. The unaudited condensed consolidated financial statements represent the consolidated accounts of the Company. All intercompany accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements as of March 31, 2022 and December 31, 2021, and for the three months ended March 31, 2022 and 2021, have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, the financial information presented herein does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair statement have been included. The results for interim periods are not necessarily indicative of the results expected for any other interim period or the full year. At March 31, 2022, the Company’s significant accounting policies, which are detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, have not changed. Risks & Uncertainties The Company is subject to risks common to its industry including, but not limited to, global economic conditions, (including increasing inflation), rapid technological change, government and academic funding levels, the impact of the COVID-19 coronavirus, geopolitical uncertainties, changes in commodity prices, spending patterns of its customers, protection of its intellectual property, availability of key raw materials and components, compliance with existing and future regulation by government agencies and fluctuations in foreign currency exchange rates and interest rates. The impact of the COVID-19 worldwide pandemic has been and will likely continue to be extensive in certain geographies and aspects of society. The pandemic has resulted in and will likely continue to result in significant disruptions to the global economy, global supply chains, as well as businesses and capital markets around the world. Impacts to the Company’s business since the beginning of the pandemic have included temporary closures of many of the Company’s government and university customers and suppliers, disruptions or restrictions on employees’ and customers’ ability to travel, and delays in product installations or shipments to and from affected countries. In an effort to halt the outbreak of COVID-19, a number of countries, including the United States, implemented and some continue to implement, significant restrictions on travel, shelter in place or stay at home orders, and business closures. While many of these restrictions have loosened in certain jurisdictions, including the United States and Europe, some markets have returned and others may return to restrictions in the face of increases in new COVID-19 cases, particularly if additional or more contagious strains of the virus emerge. Many of the Company's employees in jurisdictions in which it has significant operations continue to work remotely. In addition, certain Asia Pacific geographies where the Company operates are continuing to experience significant COVID-19 disruptions, including extensive and sustained lockdowns. Much of the commercial activity in sales and marketing, and customer demonstrations and applications training, is still either being conducted remotely or postponed. Even where customers have re-opened their sites, some still operate at productivity levels that are below pre-pandemic levels in an effort to accommodate safety protocols and as a result of pandemic-related supply chain disruptions. Any resurgence of the virus or the emergence of new strains of the virus, particularly any new strains which are more easily transmitted or which are resistant to existing vaccines, may require the Company or its customers to close or partially close operations once again. These travel restrictions, business closures and operating reductions at Bruker, customers, distributors, and/or suppliers have in the past adversely impacted and may continue to adversely impact the Company’s operations worldwide, including the ability to manufacture, sell or distribute products, as well as cause temporary closures of foreign distributors, or the facilities of suppliers or customers. Global supply chains, including for semiconductor chips, components and raw materials such as copper, have been disrupted, causing shortages, which has impacted the Company’s ability to manufacture or supply its products. The Company could also experience increased compensation expenses associated with employee recruiting and employee retention to the extent employment opportunities continue to multiply post-pandemic, causing the search for and retention of talent to become more competitive. This disruption of the Company’s employees, distributors, suppliers and customers has historically impacted and may continue to impact the Company’s global sales and operating results. Further, while the Company is not currently subject to any vaccine mandate, any requirement to mandate COVID-19 vaccination of its workforce or require the Company’s unvaccinated employees to be tested weekly could result in employee attrition and difficulty securing future labor needs and may have an adverse effect on future operations. It continues to be the Company's policy to encourage each of its employees to be fully vaccinated against COVID-19. The Company is continuing to monitor and assess the effects of the COVID-19 pandemic on commercial operations in 2022. However, the Company cannot at this time accurately predict what effects these conditions will ultimately have on future operations due to uncertainties relating to the duration of the outbreak, including the impact of any resurgence of the virus or the continued emergence of new strains of the virus, the effectiveness and availability of vaccines, (including to protect against any new strains of the virus), the willingness of individuals to receive vaccines and boosters, and the length or severity of travel restrictions, business closures and other safety and precautionary measures imposed by the governments of impacted countries. The pandemic has also adversely affected the economies and financial markets of many countries, which has affected and likely will continue to affect demand for the Company's products and its operating results. The Company has experienced supply chain interruptions as a result of the COVID-19 pandemic, general global economic conditions, a tighter labor market and other factors including natural events and disasters. Various factors, including increased demand for certain components and production delays, are contributing to shortages of certain components used in the Company’s products and increased difficulties in the Company’s ability to obtain a consistent supply of materials at stable pricing levels. Supply shortages and longer lead times for components used in the Company’s products, including limited source components, can result in significant additional costs and inefficiencies in manufacturing. A shortage of key components may cause a significant disruption to the Company’s production activities, which could have a substantial adverse effect on the Company’s financial condition or results of operations. If the Company is unsuccessful in resolving any such component shortages in a timely manner, the Company could experience a significant adverse impact on the timing of its revenue, a possible loss of revenue, or an increase in manufacturing costs, any of which could have a material adverse impact on the Company’s operating results. Additionally, geopolitical tensions, such as Russia's ongoing incursion into Ukraine, ongoing conflicts between the United States and China, tariff and trade policy changes, economic sanctions, and increasing potential of conflict involving countries in Asia that are critical to the Company's supply chain operations, such as Taiwan and China, have resulted in increasing global tensions and create uncertainty for global commerce. In addition to experiencing adverse economic impacts resulting from economic sanctions on Russia, the Company has largely suspended its' Russian operations. Sustained or worsening global economic conditions and increasing inflation and geopolitical tensions have increased the Company's cost of doing business, materially disrupted the Company's supply chain operations, caused certain of the Company's customers to reduce or delay spending and further intensified pricing pressures. Any or all of these factors could negatively affect demand for the Company's products and its business, financial condition and result of operations. The preparation of the unaudited condensed consolidated financial statements requires the Company to make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, equity, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis the Company evaluates estimates, judgments and methodologies. Changes in estimates are recorded in the period in which they become known. The Company bases estimates on historical experience and on various other assumptions that they believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities and equity and the amount of revenues and expenses. The full extent to which the COVID-19 pandemic, global supply chain interruptions, and geopolitical instability will directly or indirectly impact future business, results of operations and financial condition, including sales, expenses, reserves and allowances, manufacturing, research and development costs and employee-related amounts, will depend on future developments that are highly uncertain, including as a result of new developments concerning the COVID-19 pandemic, global supply chain and various global conflicts. The Company has made estimates of the impact of COVID-19 within the financial statements and there may be changes to those estimates in future periods. Actual results may differ from management’s estimates if these results differ from historical experience. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements In March 2020, the F inancial Accounting Standards Board (" FASB") issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The guidance provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform if certain criteria are met. These transactions include: contract modifications, hedging relationships, and sale or transfer of debt securities classified as held-to-maturity. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to clarify that certain optional expedients and exceptions under the reference rate reform guidance for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Specifically, certain provisions in the reference rate reform guidance, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. This temporary guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company may elect to apply this guidance for all contract modifications or eligible hedging relationships during that time period subject to certain criteria. The Company is still evaluating the impact of reference rate reform and whether this guidance will be adopted. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Revenue | |
Revenue | 3. Revenue The following table presents the Company’s revenues by Group and End Customer Geography (in millions): Three Months Ended 2022 2021 Revenue by Group: Bruker BioSpin $ 157.8 $ 159.4 Bruker CALID 203.2 192.4 Bruker Nano 178.5 154.4 BEST 59.7 52.4 Eliminations ( 4.2 ) ( 3.9 ) Total revenue $ 595.0 $ 554.7 Three Months Ended 2022 2021 Revenue by End Customer Geography: United States $ 155.0 $ 119.0 Germany 58.5 70.1 Rest of Europe 143.4 149.8 China 86.3 66.8 Rest of Asia Pacific 102.6 113.7 Other 49.2 35.3 Total revenue $ 595.0 $ 554.7 Revenue for the Company recognized at a point in time versus over time is as follows (in millions): Three Months Ended 2022 2021 Revenue recognized at a point in time $ 514.0 $ 480.0 Revenue recognized over time 81.0 74.7 Total revenue $ 595.0 $ 554.7 Remaining Performance Obligations Remaining performance obligations represent the aggregate transaction price allocated to a promise to transfer a good or service that is fully or partially unsatisfied at the end of the period. As of March 31, 2022, remaining performance obligations were approximately $ 2,114.9 million. The Company expects to recognize revenue on approximately 74 % of the remaining performance obligations over the next twelv e months and the remaining performance obligations primarily within one to three years . Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets) and deferred revenue, customer deposits and billings in excess of revenue recognized (contract liabilities) on the Company’s unaudited condensed consolidated balance sheets. Contract assets— Most of the Company’s long-term contracts are billed as work progresses in accordance with the contract terms and conditions, either at periodic intervals or upon achievement of certain milestones. Billing often occurs subsequent to revenue recognition, resulting in contract assets. Contract assets are generally classified as other current assets in the unaudited condensed consolidated balance sheets. The balance of contract assets as of March 31, 2022 and December 31, 2021 was $ 46.4 million and $ 46.1 million, respectively. Contract liabilities— The Company often receives cash payments from customers in advance of the Company’s performance, resulting in contract liabilities. These contract liabilities are classified as either current or long-term in the unaudited condensed consolidated balance sheets based on the timing of when revenue recognition is expected. As of March 31, 2022 and December 31, 2021, the contract liabilities were $ 467.9 million and $ 430.8 million, respectively. The increase in the contract liability balance during the three months ended March 31, 2022 is primarily the result of new performance obligations entered into during the period. Approximately $ 126.0 million of the contract liability balance on December 31, 2021 was recognized as revenue during the three months ended March 31, 2022. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2022 | |
Acquisitions | |
Acquisitions | 4. Acquisitions Pro forma financial information reflecting all acquisitions has not been presented because the impact, individually and collectively, on revenues and net income is not material. Amounts allocated to goodwill that are attributable to expected synergies are not expected to be deductible for tax purposes. 2022 PreOmics GmbH On January 18, 2022, the Company acquired a 74.15 % interest in PreOmics GmbH, (“PreOmics”), a privately held company, for a purchase price of EUR 46.1 million (approximately $ 52.1 million). PreOmics is a leading provider of sample preparation and automation solutions for proteomic analysis by mass spectrometry systems. PreOmics is located in Munich, Germany and was integrated into Bruker CALID Group within the BSI Life Science Segment. Concurrent with the acquisition, the Company entered into an agreement with the noncontrolling interest holders that provides the Company with the right to purchase, and the noncontrolling interest holders with the right to sell, the remaining 25.85 % of PreOmics for cash at a contractually defined redemption value for both the original founders and other shareholders of PreOmics, exercisable beginning in 2026. The fair value of these rights has been bifurcated into two financial instruments to separately account for the amounts attributable to the founders and the amount attributable to other shareholders. The rights (embedded derivative) associated with the founders can be accelerated, at a discounted redemption value, upon certain events related to post combination services. As the options are tied to continued employment, and the Company classified the hybrid instrument (noncontrolling interest with an embedded derivative) as a long-term liability on the condensed consolidated balance sheet. The hybrid instrument associated with the founders is initially measured at fair value and subsequent to the acquisition, the carrying value of the hybrid instrument is remeasured to fair value with changes recorded to stock-based compensation expense in proportion to the requisite service period vested. The rights associated with the other noncontrolling interest shareholders are contingently redeemable at the option of the other noncontrolling interest shareholders. As redemption of the rights is contingently redeemable at the option of the noncontrolling interest shareholders, the Company classifies the carrying amount of the redeemable noncontrolling interest in the mezzanine section on the consolidated balance sheet, which is presented above the equity section and below liabilities. T he redeemable noncontrolling interest is initially measured at fair value and subsequently at the greater of the amount that would be paid if settlement occurred as of the balance sheet date based on the contractually defined redemption value and its carrying amount adjusted for net income (loss) attributable to the noncontrolling interest. Adjustments to the carrying value of the redeemable noncontrolling interest are recorded through retained earnings. The Company expects to complete the fair value allocation during the measurement period. The amortization period for the intangible assets acquired is nine years for technology, and twelve years for the trade name and customer relationships. The components and fair value allocation of the consideration transferred in connection with the acquisition are as follows (in millions): Consideration Transferred: Cash paid $ 52.1 Cash acquired ( 16.0 ) Fair value of hybrid financial instrument - founders 20.9 Fair value of redeemable noncontrolling interest - other shareholders 6.8 Total consideration transferred $ 63.8 Allocation of Consideration Transferred: Accounts receivable $ 0.4 Inventories 0.6 Other current assets 0.7 Property, plant and equipment 1.3 Other assets 0.4 Intangible assets: Technology 12.5 Customer relationships 6.9 Trade name 1.9 Goodwill 47.0 Liabilities assumed ( 7.9 ) Total consideration allocated $ 63.8 In addition to the PreOmics acquisition, during the three months ended March 31, 2022, the Company completed various other acquisitions accounted for under the acquisition method that complemented the Company’s existing product offerings. The following table reflects the consideration transferred and the respective reporting segment for the acquisitions (in millions): Name of Acquisition Date Acquired Segment Total Cash Prolab Instruments GmbH January 17, 2022 BSI Life Science $ 5.7 $ 5.5 PepSep Holding ApS February 1, 2022 BSI Life Science 4.1 2.8 $ 9.8 $ 8.3 In the three months ended March 31, 2022, the Company completed a minority investment that complemented the Company's existing product offerings. The following table reflects the consideration transferred and the respective reporting segment for this investment (in millions): Name Acquisition / Date Acquired Segment Total Cash PrognomiQ, Inc Investment February 16, 2022 BSI Life Science $ 12.0 $ 12.0 $ 12.0 $ 12.0 Subsequent Event Acquisitions On April 1, 2022, the Company completed a share purchase agreement to acquire 100 % of the outstanding stock of Optimal Industrial Technologies Limited (“OIT”) and Optimal Industrial Automation Limited (“OIA”), collectively “Optimal”. The purchase price for the outstanding shares of OIT and OIA, collectively, was approximately GBP 30.7 million (approximately $ 40.3 million) with the potential for additional consideration of up to GBP 3.4 million (approximately $ 4.5 million). Optimal is located in Bristol, England, and will be integrated into the Bruker BioSpin Group within the BSI Life Science Segment. On April 5, 2022, the Company entered into a merger agreement with IonSense, Inc. for a purchase price of $ 8.0 million with the potential for additional consideration of up to $ 12.5 million. IonSense, Inc. is located in Saugus, Massachusetts and, following closing, will be integrated into the Bruker CALID Group within the BSI Life Science Segment. On April 28, 2022, the Company completed a minority investment in Tofwerk, AG, for CHF 18.0 million (approximate ly $ 18.6 million). Tofwerk, AG is located in Gwatt (Thun), Switzerland and will be integrated into the Bruker CALID Group within the BSI Life Science Segment. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventories | |
Inventories | 5. Inventories Inventories consisted of the following (in millions): March 31, December 31, Raw materials $ 238.8 $ 218.7 Work-in-process 266.3 254.9 Finished goods 145.3 144.9 Demonstration units 89.5 91.6 Inventories $ 739.9 $ 710.1 Finished goods include in-transit systems that have been shipped to the Company’s customers for which control has not passed to the customers. As of March 31, 2022, and December 31, 2021, the value of inventory-in-transit was $ 54.4 million and $ 49.5 million, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill The following table sets forth the changes in the carrying amount of goodwill (in millions): Total Balance at December 31, 2021 $ 339.5 Current period additions/adjustments 50.1 Foreign currency effect ( 5.3 ) Balance at March 31, 2022 $ 384.3 Intangible Assets The following is a summary of intangible assets, excluding goodwill (in millions): March 31, 2022 December 31, 2021 Gross Accumulated Net Carrying Gross Accumulated Net Carrying Existing technology and related patents $ 325.2 $ ( 209.7 ) $ 115.5 $ 310.4 $ ( 206.8 ) $ 103.6 Customer relationships 161.9 ( 61.1 ) 100.8 156.1 ( 58.2 ) 97.9 Trade names 17.3 ( 6.1 ) 11.2 15.5 ( 5.8 ) 9.7 Other 1.8 ( 1.8 ) — 1.8 ( 1.2 ) 0.6 Intangible assets $ 506.2 $ ( 278.7 ) $ 227.5 $ 483.8 $ ( 272.0 ) $ 211.8 For the three months ended March 31, 2022 and 2021, the Company recorded amortization expense of $ 9.2 million and $ 8.9 million, respectively, related to intangible assets subject to amortization. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt | |
Debt | 7. Debt The Company’s debt obligations consist of the following (in millions): March 31, December 31, EUR notes (in U.S. dollars) under the 2021 Note Purchase Agreement $ 166.3 $ 170.7 CHF notes (in U.S. dollars) under the 2021 Note Purchase Agreement 325.4 329.2 CHF notes (in U.S. dollars) under the 2019 Note Purchase Agreement 322.2 325.9 U.S. Dollar notes under the 2019 Term Loan 298.5 299.2 U.S. Dollar notes under the 2012 Note Purchase Agreement 100.0 205.0 Unamortized debt issuance costs ( 1.9 ) ( 2.0 ) Other loans 1.8 1.9 Total notes and loans outstanding 1,212.3 1,329.9 Finance lease obligations 4.1 4.3 Total debt 1,216.4 1,334.2 Current portion of long-term debt ( 11.0 ) ( 112.4 ) Total long-term debt, less current portion $ 1,205.4 $ 1,221.8 The following is a summary of the maximum commitments and the net amounts available to the Company under the 2019 Revolving Credit Agreement and other lines of credit with various financial institutions located primarily in Germany and Switzerland that are unsecured and typically due upon demand with interest payable monthly, at March 31, 2022 (in millions): Weighted Total Amount Outstanding Outstanding Total 2019 Credit Agreement 1.3 % $ 600.0 $ — $ 0.1 $ 599.9 Bank guarantees and working capital line varies 110.3 — 110.3 — Total revolving lines of credit $ 710.3 $ — $ 110.4 $ 599.9 As of March 31, 2022, the Company was in compliance with the financial covenants of all debt agreements. As of March 31, 2022, the Company had several cross-currency and interest rate swap agreements with a notional value of $ 149.3 million of U.S. to Swiss Franc and a notional value of $ 249.3 mi llion of U.S. to Euro to hedge the variability in the movement of foreign currency exchange rates on portions of our Euro and Swiss Franc denominated net asset investments. These agreements qualify for hedge accounting and accordingly the changes in fair value of the derivative are recorded in other comprehensive income as part of foreign currency translation adjustments and remain in accumulated comprehensive income (loss) attributable to Bruker Corporation in shareholders’ equity until the sale or substantial liquidation of the foreign operation. The difference between the interest rate received and paid under the interest rate and cross-currency swap agreements is recorded in interest and other income (expenses) in the consolidated statements of income and comprehensive income. As a result of entering into these agreements, the Company lowered net interest expense by $ 1.1 million and $ 1.4 million during the three months ended March 31, 2022 and 2021, respectively. The Company presents the cross-currency swap periodic settlements in investing activities and the interest rate swap periodic settlements in operating activities in the statement of cash flows. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 8. Fair Value of Financial Instruments The Company measures the following financial assets and liabilities at fair value on a recurring basis. The following tables set forth the Company’s financial instruments measured at fair value on a recurring basis and present them within the fair value hierarchy using the lowest level of input that is significant to the fair value measurement (in millions): March 31, 2022 Total Quoted Prices Significant Significant Assets: Time deposits and money market funds $ 301.1 $ — $ 301.1 $ — Short-term investments 100.0 — 100.0 — Interest rate and cross currency swap agreements 17.3 — 17.3 — Forward currency contracts 0.3 — 0.3 — Embedded derivatives in purchase and delivery contracts 0.1 — 0.1 — Fixed price commodity contracts 0.7 — 0.7 — Debt securities available for sale 1.2 — — 1.2 Total assets recorded at fair value $ 420.7 $ — $ 419.5 $ 1.2 Liabilities: Contingent consideration $ 6.8 $ — $ — $ 6.8 Hybrid instruments liability 40.0 — — 40.0 Interest rate and cross currency swap agreements 15.7 — 15.7 — Forward currency contracts 0.2 — 0.2 — Long-term fixed interest rate debt 854.8 — 854.8 — Total liabilities recorded at fair value $ 917.5 $ — $ 870.7 $ 46.8 December 31, 2021 Total Quoted Prices Significant Significant Assets: Time deposits and money market funds $ 367.7 $ — $ 367.7 $ — Short-term investments 100.0 — 100.0 — Interest rate and cross currency swap agreements 6.4 — 6.4 — Forward currency contracts 0.7 — 0.7 — Embedded derivatives in purchase and delivery contracts 0.2 — 0.2 — Fixed price commodity contracts 0.4 — 0.4 — Debt securities available for sale 1.2 — — 1.2 Total assets recorded at fair value $ 476.6 $ — $ 475.4 $ 1.2 Liabilities: Contingent consideration $ 6.6 $ — $ — $ 6.6 Hybrid instrument liability 15.6 — — 15.6 Interest rate and cross currency swap agreements 23.9 — 23.9 — Forward currency contracts 0.3 — 0.3 — Long-term fixed interest rate debt 1,043.3 — 1,043.3 — Total liabilities recorded at fair value $ 1,089.7 $ — $ 1,067.5 $ 22.2 Derivative financial instruments are classified within level 2 because there is not an active market for each derivative contract. However, the inputs used to calculate the value of the instruments are obtained from active markets. The Company measures certain assets and liabilities at fair value with changes in fair value recognized in earnings. Fair value treatment may be elected either upon initial recognition of an eligible asset or liability or, for an existing asset or liability, if an event triggers a new basis of accounting. The Company did not elect to remeasure any of its existing financial assets or liabilities and did not elect the fair value option for any financial assets or liabilities which originated during the three months ended March 31, 2022 or 2021. The fair value of the long-term fixed interest rate debt, which has been classified as Level 2 was based on market and observable sources with similar maturity dates. The carrying value of our variable rate debt approximates its fair value at March 31, 2022 and December 31, 2021. On a quarterly basis, the Company reviews its short-term investments to determine if there have been any events that could create an impairment. None were noted for the three months ended March 31, 2022 or 2021. Debt securities consist of investments in redeemable preferred stock. Debt securities are classified as either current or long-term investments based on their contractual maturities unless the Company intends to sell an investment within the next twelve months, in which case it is classified as current on the consolidated balance sheets. Debt securities are classified as available for sale and are carried at fair value. Contingent consideration recorded within other current and other long-term liabilities represents the estimated fair value of future payments to the former shareholders as part of certain acquisitions. The contingent consideration is primarily based on the applicable acquired company achieving annual revenue and gross margin targets in certain years as specified in the relevant purchase and sale agreement. The Company initially values the contingent consideration on the acquisition date by using a Monte Carlo simulation or an income approach method. The Monte Carlo method models future revenue and costs of goods sold projections and discounts the average results to present value. The income approach method involves calculating the earnout payment based on the forecasted cash flows, adjusting the future earnout payment for the risk of reaching the projected financials, and then discounting the future payments to present value by the counterparty risk. The counterparty risk considers the risk of the buyer having the cash to make the earnout payments and is commensurate with a cost of debt over an appropriate term. The following table sets forth the changes in contingent consideration liabilities (in millions): Total Balance at December 31, 2021 $ 6.6 Current period additions 1.2 Current period adjustments 0.3 Current period settlements ( 1.2 ) Foreign currency effect ( 0.1 ) Balance at March 31, 2022 $ 6.8 As part of the 2018 Mestrelab Research, S.L. and 2022 PreOmics GmbH, acquisitions, the Company entered into agreements with the noncontrolling interest holders that provides the Company with the right to purchase, and the noncontrolling interest holders with the right to sell, the remaining ownerships for cash at contractually defined redemption values. These rights (embedded derivatives) can be accelerated, at discounted redemption values, upon certain events related to post combination services. As the options are tied to continued employment, the Company classified the hybrid instruments (noncontrolling interests with embedded derivatives) as long-term liabilities on the consolidated balance sheet. Subsequent to the acquisitions, the carrying value of the hybrid instruments are remeasured to fair value with changes recorded to stock-based compensation expense in proportion to the respective requisite service period vested. The hybrid instruments are classified as Level 3 in the fair value hierarchy. The following table sets forth the changes in hybrid instrument liability (in millions): Total Balance at December 31, 2021 $ 15.6 Current period additions 20.9 Current period adjustments 4.2 Foreign currency effect ( 0.7 ) Balance at March 31, 2022 $ 40.0 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | 9. Derivative Instruments and Hedging Activities Commodity Price Risk Management The Company has arrangements with certain customers under which it has a firm commitment to deliver copper based superconductors at a fixed price. In order to minimize the volatility that fluctuations in the price of copper have on the Company’s sales of these commodities, the Company enters into commodity hedge contracts. As commodity contracts settle, gains (losses) as a result of changes in fair values are adjusted to the contracts with the customers through revenues. Foreign Exchange Rate Risk Management The Company had the following notional amounts outstanding under foreign exchange contracts, cross-currency interest rate swap agreements and long-term debt designated as net investment hedges (in millions) and the respective fair value of the instruments recorded in the consolidated balance sheets as follows (in millions): March 31, 2022 December 31, 2021 Notional (in USD) Fair Value Notional (in USD) Fair Value Derivatives designated as hedging instruments Interest rate cross-currency swap agreements Other current assets $ 7.1 $ 6.4 Other assets 10.2 — Other current liabilities — ( 5.8 ) Other long-term liabilities ( 15.7 ) ( 18.1 ) $ 398.5 $ 1.6 $ 504.3 $ ( 17.5 ) Long-term debt Long-term debt 813.9 ( 23.3 ) 825.8 ( 35.1 ) Total derivatives designated as hedging instruments $ 1,212.4 $ ( 21.7 ) $ 1,330.1 $ ( 52.6 ) Derivatives not designated as hedging instruments Forward currency contracts Other current assets $ 55.3 $ 0.3 $ 157.7 $ 0.7 Other current liabilities 60.9 ( 0.2 ) 23.0 ( 0.3 ) Embedded derivatives in purchase and delivery contracts Other current assets 7.6 0.1 8.5 0.2 Fixed price commodity contracts Other current assets 7.2 0.7 5.5 0.4 Total derivatives not designated as hedging instruments $ 131.0 $ 0.9 $ 194.7 $ 1.0 Total derivatives $ 1,343.4 $ ( 20.8 ) $ 1,524.8 $ ( 51.6 ) In addition, the Company periodically enters into purchase and sales contracts denominated in currencies other than the functional currency of the parties to the transaction. The Company accounts for these transactions separately valuing the “embedded derivative” component of these contracts. The contracts, denominated in currencies other than the functional currency of the transacting parties, amounted to $ 7.6 million and $ 8.5 million for the purchase of products at March 31, 2022 and December 31, 2021, respectively. The changes in the fair value of these embedded derivatives are recorded in interest and other income (expense), net in the consolidated statements of income and comprehensive income. The following is a summary of the gain (loss) included in the consolidated statements of income and comprehensive income related to the derivative instruments described above (in millions): Three Months Ended March 31, Financial Statement Classification 2022 2021 Derivatives not designated as hedging instruments Forward currency contracts Interest and other income (expense), net $ ( 1.5 ) $ ( 5.0 ) Embedded derivatives in purchase and delivery contracts Interest and other income (expense), net ( 0.1 ) ( 0.4 ) ( 1.6 ) ( 5.4 ) Derivatives designated as cash flow hedging instruments Interest rate cross-currency swap agreements Interest and other income (expense), net $ ( 1.0 ) $ ( 1.1 ) Derivatives designated as net investment hedging instruments Interest rate cross-currency swap agreements Interest and other income (expense), net 2.1 2.5 1.1 1.4 Total $ ( 0.5 ) $ ( 4.0 ) Three Months Ended March 31, Financial Statement Classification 2022 2021 Derivatives designated as cash flow hedging instruments Interest rate cross-currency swap agreements Accumulated other comprehensive income, net of tax $ 11.4 $ 9.9 11.4 9.9 Derivatives designated as net investment hedging instruments Interest rate cross-currency swap agreements Accumulated other comprehensive income, net of tax $ 0.7 $ 17.8 Long-term debt Accumulated other comprehensive income, net of tax 9.0 20.8 9.7 38.6 Total $ 21.1 $ 48.5 |
Provision for Income Taxes
Provision for Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Taxes | |
Provision for Income Taxes | 10. Provision for Income Taxes The Company accounts for income taxes using the asset and liability approach by recognizing deferred tax assets and liabilities for the expected future tax consequences of differences between the financial statement basis and the tax basis of assets and liabilities, calculated using enacted tax rates in effect for the year in which the differences are expected to be reflected in the tax return. The Company records a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. In addition, the Company accounts for uncertain tax positions that have reached a minimum recognition threshold. The income tax provision for the three months ended March 31, 2022 and 2021 was $ 31.9 million and $ 27.5 million, respectively, representing effective tax rates of 33.9 % and 32.2 % , respectively. The increase in our effective tax rate was primarily due to the impact of U.S. legislation that became effective during the quarter limiting the deductibility of R&D and the benefit relating to foreign tax credits, and impact of Mutual Agreement Procedures ("MAP") resolution. The Company’s effective tax rate may change over time as the amount or mix of income and tax changes among the jurisdictions in which the Company is subject to tax. As of March 31, 2022 and December 31, 2021, the Company had gross unrecognized tax benefits, excluding penalties and interest, of approximately $ 50.9 million and $ 51.4 million, respectively, which, if recognized, would result in a reduction of the Company’s effective tax rate. The Company recognizes penalties and interest related to unrecognized tax benefits in the provision for income taxes. As of March 31, 2022 and December 31, 2021, approx imately $ 3.5 million and $ 3.1 million, respectively, of accrued interest and penalties related to uncertain tax positions was included in other long-term liabilities on the Company’s unaudited condensed consolidated balance sheets. Penalties and interest of $ 0.4 million and $ 0.1 million were recorded in the provision for income taxes for unrecognized tax benefits during both the three months ended March 31, 2022 and 2021. The Company has been subject to a tax examination in Germany for the years 2009 through 2012 whereby the German tax authorities had imposed additional tax assessments for those years. Due to the nature of the additional tax assessments, the Company filed for competent authority relief from those assessments under MAP of the United States-Germany income tax treaty. A final resolution has been reached with the respective tax authorities in Germany and the United States during the first quarter of 2022. The Company files tax returns in the United States, which includes federal, state and local jurisdictions, and many foreign jurisdictions with varying statutes of limitations. The Company considers Germany, the United States and Switzerland to be its significant tax jurisdictions. The majority of the Company’s earnings are derived in Germany and Switzerland. Accounting for the various federal and local taxing authorities, the statutory rates for 2022 are approximately 30.0 % and 20.0 % for Germany and Switzerland, respectively. The mix of earnings in those two jurisdictions resulted in an increase of 5.2 % from the U.S. statutory rate of 21.0 % in the three months ended March 31, 2022. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share | |
Earnings Per Share | 11. Earnings Per Share The following table sets forth the computation of basic and diluted weighted average shares outstanding and net income per common share attributable to Bruker shareholders (in millions, except per share amounts): For The Three Months Ended March 31, 2022 2021 Net income attributable to Bruker Corporation $ 61.6 $ 56.7 Weighted average shares outstanding: Weighted average shares outstanding-basic 150.4 151.8 Effect of dilutive securities: Stock options and restricted stock units 1.0 1.4 151.4 153.2 Net income per common share attributable to Bruker Corporation shareholders: Basic $ 0.41 $ 0.37 Diluted $ 0.41 $ 0.37 The following common share equivalents have been excluded from the computation of diluted weighted-average shares outstanding, as their effect would have been anti-dilutive (amounts in millions of shares): Three Months Ended March 31, 2022 2021 Stock options 0.1 — Unvested restricted stock units 0.2 — |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Shareholders' Equity | |
Shareholders' Equity | 12. Shareholders’ Equity Share Repurchase Program In May 2019, the Company’s Board of Directors approved a share repurchase plan (the “2019 Repurchase Program”) authorizing the purchase of common stock in the amount of up to $ 300.0 million from time to time, in amounts, at prices, and at such times as management deems appropriate, subject to market conditions, legal requirements and other considerations. During the three months ended March 31, 2021, the Company repurchased a total of 530,729 shares at an aggregate cost of $ 32.8 million under the 2019 Repurchase Program. We completed the 2019 Repurchase Program in April 2021, after reaching the maximum cumulative spend. In May 2021, the Company’s Board of Directors approved a share repurchase plan (the “2021 Repurchase Program”) authorizing the purchase of common stock in the amount of up to $ 500.0 million from time to time over a two-year period, in amounts, at prices, and at such times as management deems appropriate, subject to market conditions, legal requirements and other considerations. The Company purchased a total of 1,603,055 shares at an aggregate cost of $ 105.6 million under the share repurchase plan during the three months ended March 31, 2022. At March 31, 2022, $ 275.5 million remained available for future purchases under the 2021 Repurchase Program. Accumulated Other Comprehensive Income, net of tax The following is a summary of comprehensive income (in millions): Three Months Ended March 31, 2022 2021 Consolidated net income $ 62.1 $ 57.8 Foreign currency translation adjustments ( 30.5 ) ( 68.0 ) Derivatives designated as hedging instruments, net of tax 21.1 48.5 Pension liability adjustments, net of tax 0.5 3.3 Net comprehensive income 53.2 41.6 Less: Comprehensive income attributable to noncontrolling interests 0.2 0.9 Less: Comprehensive loss attributable to redeemable noncontrolling interests ( 0.2 ) — Comprehensive income attributable to Bruker Corporation $ 53.2 $ 40.7 The following is a summary of the components of accumulated other comprehensive income, net of tax (in millions): Foreign Derivatives Pension Accumulated Balance at December 31, 2021 $ 63.1 $ ( 40.1 ) $ ( 31.2 ) $ ( 8.2 ) Other comprehensive (loss) income before ( 30.5 ) 21.1 0.2 ( 9.2 ) Realized gain on amounts reclassified from other — — 0.3 0.3 Net current period other comprehensive (loss) income ( 30.5 ) 21.1 0.5 ( 8.9 ) Balance at March 31, 2022 $ 32.6 $ ( 19.0 ) $ ( 30.7 ) $ ( 17.1 ) Stock-Based Compensation The Company recorded stock-based compensation expense as follows in the unaudited condensed consolidated statements of income and comprehensive income (in millions): Three Months Ended 2022 2021 Costs of product revenue $ 0.6 $ 0.5 Selling, general and administrative 2.6 2.4 Research and development 0.6 0.5 Total stock-based compensation expense $ 3.8 $ 3.4 In addition to the awards above, the Company recorded stock-based compensation expense within other charges, net of $ 4.2 million and $ 0.4 million in the three months ended March 31, 2022 and 2021, respectively, related to the Mestrelab acquisition. At March 31, 2022, the Company expected to recognize pre-tax stock-based compensation expense of $ 2.7 million associated with outstanding stock option awards granted under the Company's stock plans over the weighted average remaining service period of 2.2 years. The Company also expects to recognize additional pre-tax stock-based compensation expense of $ 25.5 million associated with outstanding restricted stock units granted under the Company's 2016 Incentive Compensation Plan over the weighted average remaining service period of 2.2 yea rs. |
Other Charges, Net
Other Charges, Net | 3 Months Ended |
Mar. 31, 2022 | |
Other Charges (Gain), Net | |
Other Charges, Net | 13. Other Charges, Net The components of other charges, net were as follows (in millions): Three Months Ended March 31, 2022 2021 Information technology transformation costs $ 1.0 $ 0.7 Professional fees incurred in connection with investigation matters 0.4 0.1 Restructuring charges 0.3 1.3 Acquisition-related expenses, net 5.1 0.9 Long-lived asset impairments 0.4 — Other 0.3 — Other charges, net $ 7.5 $ 3.0 Restructuring Initiatives Restructuring charges include charges for various programs that were recorded in the accompanying unaudited condensed consolidated statements of income and comprehensive income. The following table sets forth the restructuring charges (in millions): Three Months Ended March 31, 2022 2021 Cost of revenues $ 0.1 $ 1.1 Other charges, net 0.3 1.3 Total $ 0.4 $ 2.4 The following table sets forth the changes in restructuring reserves (in millions): Total Severance Exit Costs Provisions Balance at December 31, 2021 $ 6.4 $ 3.5 $ 0.3 $ 2.6 Restructuring charges 0.4 0.1 0.3 — Cash payments ( 2.8 ) ( 2.6 ) ( 0.2 ) 0.0 Other, non-cash adjustments and foreign currency effect ( 1.4 ) — — ( 1.4 ) Balance at March 31, 2022 $ 2.6 $ 1.0 $ 0.4 $ 1.2 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments And Contingencies | |
Commitments and Contingencies | 14. Commitments and Contingencies In accordance with ASC Topic 450, Contingencies, the Company accrues anticipated costs of settlement, damages or other costs to the extent specific losses are probable and estimable. Litigation and Related Contingencies Lawsuits, claims and proceedings of a nature considered normal to its businesses may be pending from time to time against the Company. Third parties might allege that the Company or its collaborators are infringing their patent rights or that the Company is otherwise violating their intellectual property rights. The Company believes the outcome of pending proceedings, individually and in the aggregate, will not have a material impact on the Company’s financial statements. On September 25, 2019, in a complaint filed in the Düsseldorf, Germany, District Court, Carl Zeiss Microscopy GmbH, a subsidiary of Carl Zeiss AG (Zeiss), sued Luxendo GmbH (Luxendo), a subsidiary of Bruker Corporation, for infringement of a recently registered German utility model patent licensed to Zeiss pertaining to one specific Luxendo product category. Zeiss is seeking injunctive relief, an accounting, indemnification for damages resulting from infringement, and other related remedies. The Company is vigorously defending against this claim. In addition, the Company is subject to regulation by national, state and local government agencies in the United States and other countries in which the Company operates. From time to time, the Company is the subject of governmental investigations often involving regulatory, marketing and other business practices. These governmental investigations may result in the commencement of civil and criminal proceedings, fines, penalties and administrative remedies which could have a material adverse effect on the Company's financial position, results of operations and/or liquidity. As of March 31, 2022 and December 31, 2021, no material accruals have been recorded for potential contingencies. |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Parties | 15. Related Parties On March 15, 2022, Bruker's Board of Directors appointed Dr. Philip Ma to serve on the Board effective as of April 1, 2022. Dr. Ma is the Chief Executive Officer of PrognomiQ, Inc in which the Company has invested $ 17.0 million. The Company currently recognizes the strategic investment in PrognomiQ as a long-term asset in the unaudited condensed consolidated balance sheets. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Business Segment Information | |
Business Segment Information | usiness Segment Information The Company has three reportable segments, BSI Life Science, BSI Nano and BEST, as discussed in Note 1 to the unaudited condensed consolidated financial statements. Revenue and operating income by reportable segment are presented below (in millions): Three Months Ended March 31, 2022 2021 Revenue: BSI Life Science $ 361.0 $ 351.8 BSI Nano 178.5 154.4 BEST 59.7 52.4 Eliminations (a) ( 4.2 ) ( 3.9 ) Total revenue $ 595.0 $ 554.7 Operating income (loss): BSI Life Science $ 85.9 $ 88.9 BSI Nano 22.3 12.3 BEST 6.6 4.1 Corporate, eliminations and other (b) ( 18.3 ) ( 16.2 ) Total operating income $ 96.5 $ 89.1 (a) Represents product and service revenue between reportable segments. (b) Represents corporate costs and eliminations not allocated to the reportable segments. Total assets by reportable segment are as follows (in millions): March 31, December 31, Assets: BSI Life Science, BSI Nano & Corporate $ 3,463.0 $ 3,560.5 BEST 94.9 97.9 Eliminations and other (a) ( 7.2 ) ( 8.4 ) Total assets $ 3,550.7 $ 3,650.0 (a) Assets not allocated to the reportable segments and eliminations of intercompany transactions. The Company is unable, without unreasonable effort or expense to disclose the amount of total assets by BSI Life Science and BSI Nano segments as well as the Corporate function and further, the Company’s chief operating decision maker does not receive any asset information by operating segment. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue | |
Schedule of revenues disaggregated by Group, end customer geographical location and timing of recognition | The following table presents the Company’s revenues by Group and End Customer Geography (in millions): Three Months Ended 2022 2021 Revenue by Group: Bruker BioSpin $ 157.8 $ 159.4 Bruker CALID 203.2 192.4 Bruker Nano 178.5 154.4 BEST 59.7 52.4 Eliminations ( 4.2 ) ( 3.9 ) Total revenue $ 595.0 $ 554.7 Three Months Ended 2022 2021 Revenue by End Customer Geography: United States $ 155.0 $ 119.0 Germany 58.5 70.1 Rest of Europe 143.4 149.8 China 86.3 66.8 Rest of Asia Pacific 102.6 113.7 Other 49.2 35.3 Total revenue $ 595.0 $ 554.7 Revenue for the Company recognized at a point in time versus over time is as follows (in millions): Three Months Ended 2022 2021 Revenue recognized at a point in time $ 514.0 $ 480.0 Revenue recognized over time 81.0 74.7 Total revenue $ 595.0 $ 554.7 |
Acquisitions (Tables)
Acquisitions (Tables) - Preomics Gmbh [Member] | 3 Months Ended |
Mar. 31, 2022 | |
Acquisitions | |
Schedule of Components and Fair Value Allocation of the Consideration Transferred in Connection with Acquisitions | The components and fair value allocation of the consideration transferred in connection with the acquisition are as follows (in millions): Consideration Transferred: Cash paid $ 52.1 Cash acquired ( 16.0 ) Fair value of hybrid financial instrument - founders 20.9 Fair value of redeemable noncontrolling interest - other shareholders 6.8 Total consideration transferred $ 63.8 Allocation of Consideration Transferred: Accounts receivable $ 0.4 Inventories 0.6 Other current assets 0.7 Property, plant and equipment 1.3 Other assets 0.4 Intangible assets: Technology 12.5 Customer relationships 6.9 Trade name 1.9 Goodwill 47.0 Liabilities assumed ( 7.9 ) Total consideration allocated $ 63.8 |
Schedule of Consideration Transferred and the Respective Reporting Segment for Each Acquisition | The following table reflects the consideration transferred and the respective reporting segment for the acquisitions (in millions): Name of Acquisition Date Acquired Segment Total Cash Prolab Instruments GmbH January 17, 2022 BSI Life Science $ 5.7 $ 5.5 PepSep Holding ApS February 1, 2022 BSI Life Science 4.1 2.8 $ 9.8 $ 8.3 In the three months ended March 31, 2022, the Company completed a minority investment that complemented the Company's existing product offerings. The following table reflects the consideration transferred and the respective reporting segment for this investment (in millions): Name Acquisition / Date Acquired Segment Total Cash PrognomiQ, Inc Investment February 16, 2022 BSI Life Science $ 12.0 $ 12.0 $ 12.0 $ 12.0 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventories | |
Schedule of inventories | Inventories consisted of the following (in millions): March 31, December 31, Raw materials $ 238.8 $ 218.7 Work-in-process 266.3 254.9 Finished goods 145.3 144.9 Demonstration units 89.5 91.6 Inventories $ 739.9 $ 710.1 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets | |
Schedule of changes in the carrying amount of goodwill | The following table sets forth the changes in the carrying amount of goodwill (in millions): Total Balance at December 31, 2021 $ 339.5 Current period additions/adjustments 50.1 Foreign currency effect ( 5.3 ) Balance at March 31, 2022 $ 384.3 |
Summary of intangible assets | The following is a summary of intangible assets, excluding goodwill (in millions): March 31, 2022 December 31, 2021 Gross Accumulated Net Carrying Gross Accumulated Net Carrying Existing technology and related patents $ 325.2 $ ( 209.7 ) $ 115.5 $ 310.4 $ ( 206.8 ) $ 103.6 Customer relationships 161.9 ( 61.1 ) 100.8 156.1 ( 58.2 ) 97.9 Trade names 17.3 ( 6.1 ) 11.2 15.5 ( 5.8 ) 9.7 Other 1.8 ( 1.8 ) — 1.8 ( 1.2 ) 0.6 Intangible assets $ 506.2 $ ( 278.7 ) $ 227.5 $ 483.8 $ ( 272.0 ) $ 211.8 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt | |
Components of debt obligations | The Company’s debt obligations consist of the following (in millions): March 31, December 31, EUR notes (in U.S. dollars) under the 2021 Note Purchase Agreement $ 166.3 $ 170.7 CHF notes (in U.S. dollars) under the 2021 Note Purchase Agreement 325.4 329.2 CHF notes (in U.S. dollars) under the 2019 Note Purchase Agreement 322.2 325.9 U.S. Dollar notes under the 2019 Term Loan 298.5 299.2 U.S. Dollar notes under the 2012 Note Purchase Agreement 100.0 205.0 Unamortized debt issuance costs ( 1.9 ) ( 2.0 ) Other loans 1.8 1.9 Total notes and loans outstanding 1,212.3 1,329.9 Finance lease obligations 4.1 4.3 Total debt 1,216.4 1,334.2 Current portion of long-term debt ( 11.0 ) ( 112.4 ) Total long-term debt, less current portion $ 1,205.4 $ 1,221.8 |
Summary of maximum commitments and net amounts available under the 2019 Credit Agreement and other lines of credit | The following is a summary of the maximum commitments and the net amounts available to the Company under the 2019 Revolving Credit Agreement and other lines of credit with various financial institutions located primarily in Germany and Switzerland that are unsecured and typically due upon demand with interest payable monthly, at March 31, 2022 (in millions): Weighted Total Amount Outstanding Outstanding Total 2019 Credit Agreement 1.3 % $ 600.0 $ — $ 0.1 $ 599.9 Bank guarantees and working capital line varies 110.3 — 110.3 — Total revolving lines of credit $ 710.3 $ — $ 110.4 $ 599.9 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value of Financial Instruments | |
Schedule of financial instruments measured at fair value on a recurring basis | The following tables set forth the Company’s financial instruments measured at fair value on a recurring basis and present them within the fair value hierarchy using the lowest level of input that is significant to the fair value measurement (in millions): March 31, 2022 Total Quoted Prices Significant Significant Assets: Time deposits and money market funds $ 301.1 $ — $ 301.1 $ — Short-term investments 100.0 — 100.0 — Interest rate and cross currency swap agreements 17.3 — 17.3 — Forward currency contracts 0.3 — 0.3 — Embedded derivatives in purchase and delivery contracts 0.1 — 0.1 — Fixed price commodity contracts 0.7 — 0.7 — Debt securities available for sale 1.2 — — 1.2 Total assets recorded at fair value $ 420.7 $ — $ 419.5 $ 1.2 Liabilities: Contingent consideration $ 6.8 $ — $ — $ 6.8 Hybrid instruments liability 40.0 — — 40.0 Interest rate and cross currency swap agreements 15.7 — 15.7 — Forward currency contracts 0.2 — 0.2 — Long-term fixed interest rate debt 854.8 — 854.8 — Total liabilities recorded at fair value $ 917.5 $ — $ 870.7 $ 46.8 December 31, 2021 Total Quoted Prices Significant Significant Assets: Time deposits and money market funds $ 367.7 $ — $ 367.7 $ — Short-term investments 100.0 — 100.0 — Interest rate and cross currency swap agreements 6.4 — 6.4 — Forward currency contracts 0.7 — 0.7 — Embedded derivatives in purchase and delivery contracts 0.2 — 0.2 — Fixed price commodity contracts 0.4 — 0.4 — Debt securities available for sale 1.2 — — 1.2 Total assets recorded at fair value $ 476.6 $ — $ 475.4 $ 1.2 Liabilities: Contingent consideration $ 6.6 $ — $ — $ 6.6 Hybrid instrument liability 15.6 — — 15.6 Interest rate and cross currency swap agreements 23.9 — 23.9 — Forward currency contracts 0.3 — 0.3 — Long-term fixed interest rate debt 1,043.3 — 1,043.3 — Total liabilities recorded at fair value $ 1,089.7 $ — $ 1,067.5 $ 22.2 |
Schedule of changes in contingent consideration liabilities | The following table sets forth the changes in contingent consideration liabilities (in millions): Total Balance at December 31, 2021 $ 6.6 Current period additions 1.2 Current period adjustments 0.3 Current period settlements ( 1.2 ) Foreign currency effect ( 0.1 ) Balance at March 31, 2022 $ 6.8 |
Schedule of changes in hybrid instrument liability | The following table sets forth the changes in hybrid instrument liability (in millions): Total Balance at December 31, 2021 $ 15.6 Current period additions 20.9 Current period adjustments 4.2 Foreign currency effect ( 0.7 ) Balance at March 31, 2022 $ 40.0 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities | |
Schedule of fair value and balance sheet location of derivative instruments | The Company had the following notional amounts outstanding under foreign exchange contracts, cross-currency interest rate swap agreements and long-term debt designated as net investment hedges (in millions) and the respective fair value of the instruments recorded in the consolidated balance sheets as follows (in millions): March 31, 2022 December 31, 2021 Notional (in USD) Fair Value Notional (in USD) Fair Value Derivatives designated as hedging instruments Interest rate cross-currency swap agreements Other current assets $ 7.1 $ 6.4 Other assets 10.2 — Other current liabilities — ( 5.8 ) Other long-term liabilities ( 15.7 ) ( 18.1 ) $ 398.5 $ 1.6 $ 504.3 $ ( 17.5 ) Long-term debt Long-term debt 813.9 ( 23.3 ) 825.8 ( 35.1 ) Total derivatives designated as hedging instruments $ 1,212.4 $ ( 21.7 ) $ 1,330.1 $ ( 52.6 ) Derivatives not designated as hedging instruments Forward currency contracts Other current assets $ 55.3 $ 0.3 $ 157.7 $ 0.7 Other current liabilities 60.9 ( 0.2 ) 23.0 ( 0.3 ) Embedded derivatives in purchase and delivery contracts Other current assets 7.6 0.1 8.5 0.2 Fixed price commodity contracts Other current assets 7.2 0.7 5.5 0.4 Total derivatives not designated as hedging instruments $ 131.0 $ 0.9 $ 194.7 $ 1.0 Total derivatives $ 1,343.4 $ ( 20.8 ) $ 1,524.8 $ ( 51.6 ) |
Schedule of impact on net income of unrealized gains and losses resulting from changes in the fair value of derivative instruments | The following is a summary of the gain (loss) included in the consolidated statements of income and comprehensive income related to the derivative instruments described above (in millions): Three Months Ended March 31, Financial Statement Classification 2022 2021 Derivatives not designated as hedging instruments Forward currency contracts Interest and other income (expense), net $ ( 1.5 ) $ ( 5.0 ) Embedded derivatives in purchase and delivery contracts Interest and other income (expense), net ( 0.1 ) ( 0.4 ) ( 1.6 ) ( 5.4 ) Derivatives designated as cash flow hedging instruments Interest rate cross-currency swap agreements Interest and other income (expense), net $ ( 1.0 ) $ ( 1.1 ) Derivatives designated as net investment hedging instruments Interest rate cross-currency swap agreements Interest and other income (expense), net 2.1 2.5 1.1 1.4 Total $ ( 0.5 ) $ ( 4.0 ) Three Months Ended March 31, Financial Statement Classification 2022 2021 Derivatives designated as cash flow hedging instruments Interest rate cross-currency swap agreements Accumulated other comprehensive income, net of tax $ 11.4 $ 9.9 11.4 9.9 Derivatives designated as net investment hedging instruments Interest rate cross-currency swap agreements Accumulated other comprehensive income, net of tax $ 0.7 $ 17.8 Long-term debt Accumulated other comprehensive income, net of tax 9.0 20.8 9.7 38.6 Total $ 21.1 $ 48.5 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share | |
Computation of basic and diluted weighted average shares outstanding and net income per common share | The following table sets forth the computation of basic and diluted weighted average shares outstanding and net income per common share attributable to Bruker shareholders (in millions, except per share amounts): For The Three Months Ended March 31, 2022 2021 Net income attributable to Bruker Corporation $ 61.6 $ 56.7 Weighted average shares outstanding: Weighted average shares outstanding-basic 150.4 151.8 Effect of dilutive securities: Stock options and restricted stock units 1.0 1.4 151.4 153.2 Net income per common share attributable to Bruker Corporation shareholders: Basic $ 0.41 $ 0.37 Diluted $ 0.41 $ 0.37 |
Schedule of common share equivalents have been excluded from the computation of diluted weighted-average shares outstanding, as their effect would have been anti-dilutive | The following common share equivalents have been excluded from the computation of diluted weighted-average shares outstanding, as their effect would have been anti-dilutive (amounts in millions of shares): Three Months Ended March 31, 2022 2021 Stock options 0.1 — Unvested restricted stock units 0.2 — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Shareholders' Equity | |
Summary of comprehensive income (loss) | The following is a summary of comprehensive income (in millions): Three Months Ended March 31, 2022 2021 Consolidated net income $ 62.1 $ 57.8 Foreign currency translation adjustments ( 30.5 ) ( 68.0 ) Derivatives designated as hedging instruments, net of tax 21.1 48.5 Pension liability adjustments, net of tax 0.5 3.3 Net comprehensive income 53.2 41.6 Less: Comprehensive income attributable to noncontrolling interests 0.2 0.9 Less: Comprehensive loss attributable to redeemable noncontrolling interests ( 0.2 ) — Comprehensive income attributable to Bruker Corporation $ 53.2 $ 40.7 |
Summary of the components of accumulated other comprehensive income (loss), net of tax | The following is a summary of the components of accumulated other comprehensive income, net of tax (in millions): Foreign Derivatives Pension Accumulated Balance at December 31, 2021 $ 63.1 $ ( 40.1 ) $ ( 31.2 ) $ ( 8.2 ) Other comprehensive (loss) income before ( 30.5 ) 21.1 0.2 ( 9.2 ) Realized gain on amounts reclassified from other — — 0.3 0.3 Net current period other comprehensive (loss) income ( 30.5 ) 21.1 0.5 ( 8.9 ) Balance at March 31, 2022 $ 32.6 $ ( 19.0 ) $ ( 30.7 ) $ ( 17.1 ) |
Schedule of the impact of stock-based compensation expense | The Company recorded stock-based compensation expense as follows in the unaudited condensed consolidated statements of income and comprehensive income (in millions): Three Months Ended 2022 2021 Costs of product revenue $ 0.6 $ 0.5 Selling, general and administrative 2.6 2.4 Research and development 0.6 0.5 Total stock-based compensation expense $ 3.8 $ 3.4 |
Other Charges, Net (Tables)
Other Charges, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Charges (Gain), Net | |
Schedule of components of other charges, net | The components of other charges, net were as follows (in millions): Three Months Ended March 31, 2022 2021 Information technology transformation costs $ 1.0 $ 0.7 Professional fees incurred in connection with investigation matters 0.4 0.1 Restructuring charges 0.3 1.3 Acquisition-related expenses, net 5.1 0.9 Long-lived asset impairments 0.4 — Other 0.3 — Other charges, net $ 7.5 $ 3.0 |
Summary of restructuring charges | The following table sets forth the restructuring charges (in millions): Three Months Ended March 31, 2022 2021 Cost of revenues $ 0.1 $ 1.1 Other charges, net 0.3 1.3 Total $ 0.4 $ 2.4 |
Schedule of changes in restructuring reserves | The following table sets forth the changes in restructuring reserves (in millions): Total Severance Exit Costs Provisions Balance at December 31, 2021 $ 6.4 $ 3.5 $ 0.3 $ 2.6 Restructuring charges 0.4 0.1 0.3 — Cash payments ( 2.8 ) ( 2.6 ) ( 0.2 ) 0.0 Other, non-cash adjustments and foreign currency effect ( 1.4 ) — — ( 1.4 ) Balance at March 31, 2022 $ 2.6 $ 1.0 $ 0.4 $ 1.2 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Segment Information | |
Schedule of Revenue, Operating Income and Total Assets by Reportable Segment | Revenue and operating income by reportable segment are presented below (in millions): Three Months Ended March 31, 2022 2021 Revenue: BSI Life Science $ 361.0 $ 351.8 BSI Nano 178.5 154.4 BEST 59.7 52.4 Eliminations (a) ( 4.2 ) ( 3.9 ) Total revenue $ 595.0 $ 554.7 Operating income (loss): BSI Life Science $ 85.9 $ 88.9 BSI Nano 22.3 12.3 BEST 6.6 4.1 Corporate, eliminations and other (b) ( 18.3 ) ( 16.2 ) Total operating income $ 96.5 $ 89.1 (a) Represents product and service revenue between reportable segments. (b) Represents corporate costs and eliminations not allocated to the reportable segments. Total assets by reportable segment are as follows (in millions): March 31, December 31, Assets: BSI Life Science, BSI Nano & Corporate $ 3,463.0 $ 3,560.5 BEST 94.9 97.9 Eliminations and other (a) ( 7.2 ) ( 8.4 ) Total assets $ 3,550.7 $ 3,650.0 (a) Assets not allocated to the reportable segments and eliminations of intercompany transactions. |
Description of Business (Detail
Description of Business (Details) | 3 Months Ended |
Mar. 31, 2022Segment | |
Description of Business | |
Number of operating segments | 4 |
Number of reportable segments | 3 |
Revenue - Disaggregation (Detai
Revenue - Disaggregation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues disaggregated by Group | ||
Total revenue | $ 595 | $ 554.7 |
Revenue recognized at a point in time | ||
Revenues disaggregated by Group | ||
Total revenue | 514 | 480 |
Revenue recognized over time | ||
Revenues disaggregated by Group | ||
Total revenue | 81 | 74.7 |
United States | ||
Revenues disaggregated by Group | ||
Total revenue | 155 | 119 |
Germany | ||
Revenues disaggregated by Group | ||
Total revenue | 58.5 | 70.1 |
Rest of Europe | ||
Revenues disaggregated by Group | ||
Total revenue | 143.4 | 149.8 |
CHINA | ||
Revenues disaggregated by Group | ||
Total revenue | 86.3 | 66.8 |
Rest of Asia Pacific | ||
Revenues disaggregated by Group | ||
Total revenue | 102.6 | 113.7 |
Other | ||
Revenues disaggregated by Group | ||
Total revenue | 49.2 | 35.3 |
Operating segments | Bruker BioSpin | ||
Revenues disaggregated by Group | ||
Total revenue | 157.8 | 159.4 |
Operating segments | Bruker CALID | ||
Revenues disaggregated by Group | ||
Total revenue | 203.2 | 192.4 |
Operating segments | Bruker Nano | ||
Revenues disaggregated by Group | ||
Total revenue | 178.5 | 154.4 |
Operating segments | BEST | ||
Revenues disaggregated by Group | ||
Total revenue | 59.7 | 52.4 |
Eliminations | ||
Revenues disaggregated by Group | ||
Total revenue | $ (4.2) | $ (3.9) |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-20 $ in Millions | Mar. 31, 2022USD ($) |
Remaining Performance Obligations | |
Amount of remaining performance obligations | $ 2,114.9 |
Remaining performance obligation expected to be recognized in the given period (as a percent) | 74.00% |
Duration of expected recognition period for remaining performance obligation | 12 months |
Minimum | |
Remaining Performance Obligations | |
Duration of expected recognition period for remaining performance obligation | 1 year |
Maximum | |
Remaining Performance Obligations | |
Duration of expected recognition period for remaining performance obligation | 3 years |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Mar. 31, 2022 | |
Revenue | ||
Contract assets | $ 46.1 | $ 46.4 |
Contract liabilities | 430.8 | $ 467.9 |
Revenue recognition during the period | $ 126 |
Acquisitions - PreOmics GmbH (D
Acquisitions - PreOmics GmbH (Details) € in Millions, £ in Millions, $ in Millions | Apr. 05, 2022USD ($) | Apr. 01, 2022USD ($) | Apr. 01, 2022GBP (£) | Jan. 18, 2022EUR (€) | Jan. 18, 2022USD ($) | Mar. 31, 2022USD ($) | Apr. 01, 2022GBP (£) |
Acquisitions | |||||||
Business Combination, Consideration Transferred | $ 9.8 | ||||||
Trade Names [Member] | |||||||
Acquisitions | |||||||
Amortization period for intangible assets acquired | 12 years | 12 years | |||||
Customer Relationships [Member] | |||||||
Acquisitions | |||||||
Amortization period for intangible assets acquired | 12 years | 12 years | |||||
Preomics Gmbh [Member] | |||||||
Acquisitions | |||||||
Ownership percentage acquired | 74.15% | 74.15% | |||||
Remaining ownership percentage under options that can be exercised after 2026 | 25.85% | 25.85% | |||||
Business Combination, Consideration Transferred | € 46.1 | $ 52.1 | $ 63.8 | ||||
Interest acquired | 74.15% | 74.15% | |||||
Voting Equity Interest Included in Options Provided to Shareholders Percentage | 25.85% | 25.85% | |||||
Preomics Gmbh [Member] | Technology | |||||||
Acquisitions | |||||||
Amortization period for intangible assets acquired | 9 years | 9 years | |||||
Optimal [Member] | Subsequent Event | |||||||
Acquisitions | |||||||
Ownership percentage acquired | 100.00% | 100.00% | |||||
Purchase price | $ 40.3 | £ 30.7 | |||||
Potential additional consideration | $ 4.5 | £ 3.4 | |||||
Interest acquired | 100.00% | 100.00% | |||||
IonSense, Inc. [Member] | Subsequent Event | |||||||
Acquisitions | |||||||
Purchase price | $ 8 | ||||||
Potential additional consideration | $ 12.5 |
Acquisitions - Schedule of Comp
Acquisitions - Schedule of Components and Fair Value Allocation of the Consideration Transferred in Connection with Acquisitions (Details) € in Millions, $ in Millions | Jan. 18, 2022USD ($) | Jan. 18, 2022EUR (€) | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Consideration Transferred: | ||||
Total consideration transferred | $ 9.8 | |||
Allocation of Consideration Transferred: | ||||
Goodwill | 384.3 | $ 339.5 | ||
Preomics Gmbh [Member] | ||||
Consideration Transferred: | ||||
Cash paid | 52.1 | |||
Cash acquired | (16) | |||
Fair value of hybrid financial instrument - founders | 20.9 | |||
Fair value of redeemable noncontrolling interest - other shareholders | 6.8 | |||
Total consideration transferred | $ 52.1 | € 46.1 | 63.8 | |
Allocation of Consideration Transferred: | ||||
Accounts receivable | 0.4 | |||
Inventories | 0.6 | |||
Other current assets | 0.7 | |||
Property, plant and equipment | 1.3 | |||
Other assets | 0.4 | |||
Goodwill | 47 | |||
Liabilities assumed | (7.9) | |||
Total consideration transferred | 63.8 | |||
Preomics Gmbh [Member] | Technology | ||||
Allocation of Consideration Transferred: | ||||
Intangible assets | 12.5 | |||
Preomics Gmbh [Member] | Customer relationships | ||||
Allocation of Consideration Transferred: | ||||
Intangible assets | 6.9 | |||
Preomics Gmbh [Member] | Trade name | ||||
Allocation of Consideration Transferred: | ||||
Intangible assets | $ 1.9 |
Acquisitions - Subsequent Event
Acquisitions - Subsequent Event Acquisitions (Details) - Subsequent Event [Member] £ in Millions, SFr in Millions, $ in Millions | Apr. 05, 2022USD ($) | Apr. 01, 2022GBP (£) | Apr. 01, 2022USD ($) | Apr. 28, 2022USD ($) | Apr. 28, 2022CHF (SFr) | Apr. 01, 2022USD ($) |
Optimal [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Interest acquired | 100.00% | 100.00% | ||||
Purchase price | £ 30.7 | $ 40.3 | ||||
Potential additional consideration | £ 3.4 | $ 4.5 | ||||
IonSense, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 8 | |||||
Potential additional consideration | $ 12.5 | |||||
Tofwerk AG [member] | ||||||
Business Acquisition [Line Items] | ||||||
Potential additional consideration | $ 18.6 | SFr 18 |
Acquisitions - Schedule of Cons
Acquisitions - Schedule of Consideration Transferred and the Respective Reporting Segment for Each Acquisition (Details) € in Millions, $ in Millions | Jan. 18, 2022EUR (€) | Jan. 18, 2022USD ($) | Mar. 31, 2022USD ($) |
Business Acquisition [Line Items] | |||
Total consideration transferred | $ 9.8 | ||
Cash paid for acquisitions, net of cash acquired | 8.3 | ||
Investments in Businesses [Member] | |||
Business Acquisition [Line Items] | |||
Total consideration transferred | 12 | ||
Cash paid for acquisitions, net of cash acquired | 12 | ||
PrognomIQ, Inc | Investments in Businesses [Member] | |||
Business Acquisition [Line Items] | |||
Total consideration transferred | 12 | ||
Cash paid for acquisitions, net of cash acquired | 12 | ||
Prolab Instruments GmbH | |||
Business Acquisition [Line Items] | |||
Total consideration transferred | 5.7 | ||
Cash paid for acquisitions, net of cash acquired | 5.5 | ||
PepSep Holding ApS | |||
Business Acquisition [Line Items] | |||
Total consideration transferred | 4.1 | ||
Cash paid for acquisitions, net of cash acquired | 2.8 | ||
Preomics Gmbh [Member] | |||
Business Acquisition [Line Items] | |||
Total consideration transferred | € 46.1 | $ 52.1 | $ 63.8 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventories | ||
Raw materials | $ 238.8 | $ 218.7 |
Work-in-process | 266.3 | 254.9 |
Finished goods | 145.3 | 144.9 |
Demonstration units | 89.5 | 91.6 |
Inventories | 739.9 | 710.1 |
Inventory-in-transit | $ 54.4 | $ 49.5 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill | |
Balance at the beginning of the period | $ 339.5 |
Current period additions/adjustments | 50.1 |
Foreign currency effect | (5.3) |
Balance at the end of the period | $ 384.3 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Intangible assets | |||
Gross Carrying Amount, intangible assets subject to amortization | $ 506,200,000 | $ 483,800,000 | |
Accumulated Amortization, intangible assets subject to amortization | (278,700,000) | (272,000,000) | |
Net Carrying Amount, intangible assets subject to amortization | 227,500,000 | 211,800,000 | |
Amortization expense related to intangible assets subject to amortization | 9,200,000 | $ 8,900,000 | |
Asset Impairment | 0 | $ 0 | |
Technology | |||
Intangible assets | |||
Gross Carrying Amount, intangible assets subject to amortization | 325,200,000 | 310,400,000 | |
Accumulated Amortization, intangible assets subject to amortization | (209,700,000) | (206,800,000) | |
Net Carrying Amount, intangible assets subject to amortization | 115,500,000 | 103,600,000 | |
Customer relationships | |||
Intangible assets | |||
Gross Carrying Amount, intangible assets subject to amortization | 161,900,000 | 156,100,000 | |
Accumulated Amortization, intangible assets subject to amortization | (61,100,000) | (58,200,000) | |
Net Carrying Amount, intangible assets subject to amortization | 100,800,000 | 97,900,000 | |
Trade name | |||
Intangible assets | |||
Gross Carrying Amount, intangible assets subject to amortization | 17,300,000 | 15,500,000 | |
Accumulated Amortization, intangible assets subject to amortization | (6,100,000) | (5,800,000) | |
Net Carrying Amount, intangible assets subject to amortization | 11,200,000 | 9,700,000 | |
Other | |||
Intangible assets | |||
Gross Carrying Amount, intangible assets subject to amortization | 1,800,000 | 1,800,000 | |
Accumulated Amortization, intangible assets subject to amortization | (1,800,000) | (1,200,000) | |
Net Carrying Amount, intangible assets subject to amortization | $ 0 | $ 600,000 |
Debt - Components (Details)
Debt - Components (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt | ||
Unamortized debt issuance costs | $ (1.9) | $ (2) |
Total notes and loans outstanding | 1,212.3 | 1,329.9 |
Total debt | 1,216.4 | 1,334.2 |
Current portion of long-term debt | (11) | (112.4) |
Total long-term debt, less current portion | 1,205.4 | 1,221.8 |
Euro Notes Under The 2021 Purchase Agreement | ||
Debt | ||
Debt, before unamortized debt issuance costs | 166.3 | 170.7 |
Switzerland Francs Notes Under The 2021 Notes Purchase Agreement | ||
Debt | ||
Debt, before unamortized debt issuance costs | 325.4 | 329.2 |
2019 Note Purchase Agreement | ||
Debt | ||
Debt, before unamortized debt issuance costs | 322.2 | 325.9 |
2019 Term Loan | ||
Debt | ||
Debt, before unamortized debt issuance costs | 298.5 | 299.2 |
2012 Note Purchase Agreement | ||
Debt | ||
Debt, before unamortized debt issuance costs | 100 | 205 |
Other Loan [Member] | ||
Debt | ||
Debt, before unamortized debt issuance costs | 1.8 | 1.9 |
Capital lease obligations and other loans | ||
Debt | ||
Total debt | $ 4.1 | $ 4.3 |
Debt - Revolving Loan Arrangeme
Debt - Revolving Loan Arrangements (Details) | Mar. 31, 2022USD ($) |
Revolving lines of credit | |
Total Amount Committed by Lenders | $ 710.3 |
Outstanding Letters of Credit | 110.4 |
Total Committed Amount Available | $ 599.9 |
2019 Credit Agreement | US Dollar revolving loan | |
Revolving lines of credit | |
Weighted Average Interest Rate (as a percent) | 1.30% |
Total Amount Committed by Lenders | $ 600 |
Outstanding Letters of Credit | 0.1 |
Total Committed Amount Available | 599.9 |
Bank guarantees and working capital line | |
Revolving lines of credit | |
Total Amount Committed by Lenders | 110.3 |
Outstanding Letters of Credit | $ 110.3 |
Debt - Currency Swaps (Details)
Debt - Currency Swaps (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Debt | |||
Notional Amount | $ 1,343.4 | $ 1,524.8 | |
Decrease in net interest expense | 1.1 | $ 1.4 | |
U.S. to Swiss Franc cross-currency and interest rate swap agreements | |||
Debt | |||
Notional Amount | 149.3 | ||
U.S. to Euro cross-currency and interest rate swap agreements | |||
Debt | |||
Notional Amount | $ 249.3 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Hierarchy (Details) - Recurring basis - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Time deposits and money market funds | $ 301.1 | $ 367.7 |
Short-term investments | 100 | 100 |
Interest rate and cross currency swap agreements | 17.3 | 6.4 |
Forward currency contracts | 0.3 | 0.7 |
Embedded derivatives in purchase and delivery contracts | 0.1 | 0.2 |
Fixed price commodity contracts | 0.7 | 0.4 |
Debt securities available for sale | 1.2 | 1.2 |
Total assets recorded at fair value | 420.7 | 476.6 |
Liabilities: | ||
Contingent consideration | 6.8 | 6.6 |
Hybrid instruments liability | 40 | 15.6 |
Interest rate and cross currency swap agreements | 15.7 | 23.9 |
Forward currency contracts | 0.2 | 0.3 |
Long-term fixed interest rate debt | 854.8 | 1,043.3 |
Total liabilities recorded at fair value | 917.5 | 1,089.7 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Time deposits and money market funds | 301.1 | 367.7 |
Short-term investments | 100 | 100 |
Interest rate and cross currency swap agreements | 17.3 | 6.4 |
Forward currency contracts | 0.3 | 0.7 |
Embedded derivatives in purchase and delivery contracts | 0.1 | 0.2 |
Fixed price commodity contracts | 0.7 | 0.4 |
Total assets recorded at fair value | 419.5 | 475.4 |
Liabilities: | ||
Interest rate and cross currency swap agreements | 15.7 | 23.9 |
Forward currency contracts | 0.2 | 0.3 |
Long-term fixed interest rate debt | 854.8 | 1,043.3 |
Total liabilities recorded at fair value | 870.7 | 1,067.5 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Debt securities available for sale | 1.2 | 1.2 |
Total assets recorded at fair value | 1.2 | 1.2 |
Liabilities: | ||
Contingent consideration | 6.8 | 6.6 |
Hybrid instruments liability | 40 | 15.6 |
Total liabilities recorded at fair value | $ 46.8 | $ 22.2 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Contingent Consideration and Hybrid Instrument Liability (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Changes in contingent consideration liabilities | |
Current period additions | $ 20.9 |
Contingent consideration | |
Changes in contingent consideration liabilities | |
Balance at December 31, 2021 | 6.6 |
Current period additions | 1.2 |
Current period adjustments | 0.3 |
Current period settlements | (1.2) |
Foreign currency effect | (0.1) |
Balance at March 31, 2022 | 6.8 |
Hybrid instrument | |
Changes in contingent consideration liabilities | |
Balance at December 31, 2021 | 15.6 |
Current period adjustments | 4.2 |
Foreign currency effect | (0.7) |
Balance at March 31, 2022 | $ 40 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Risk Management (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative instruments and hedging activities | ||
Notional Amount | $ 1,343.4 | $ 1,524.8 |
Fair value, net asset (liability) | (20.8) | (51.6) |
Embedded derivatives in purchase and delivery contracts | ||
Embedded derivatives in purchase and delivery contracts | ||
Notional amount of derivative purchase contracts | $ 7.6 | $ 8.5 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative instruments and hedging activities | ||
Derivative Assets (Liabilities) | $ (20.8) | $ (51.6) |
Notional Amount | 1,343.4 | 1,524.8 |
Interest rate and cross currency swap agreements | ||
Derivative instruments and hedging activities | ||
Derivative Assets (Liabilities) | 1.6 | (17.5) |
Derivative Asset, Notional Amount | 398.5 | 504.3 |
Designated as hedging instrument | ||
Derivative instruments and hedging activities | ||
Derivative Assets (Liabilities) | (21.7) | (52.6) |
Derivative Asset, Notional Amount | 1,212.4 | 1,330.1 |
Designated as hedging instrument | Other current assets | ||
Derivative instruments and hedging activities | ||
Derivative Asset | 7.1 | 6.4 |
Designated as hedging instrument | Other assets | ||
Derivative instruments and hedging activities | ||
Derivative Asset | 10.2 | 0 |
Designated as hedging instrument | Other current liabilities | ||
Derivative instruments and hedging activities | ||
Derivative Liability | 0 | (5.8) |
Designated as hedging instrument | Other long-term liabilities | ||
Derivative instruments and hedging activities | ||
Derivative Assets (Liabilities) | (15.7) | (18.1) |
Designated as hedging instrument | Long-term debt | ||
Derivative instruments and hedging activities | ||
Derivative Assets (Liabilities) | (23.3) | (35.1) |
Derivative Asset, Notional Amount | 813.9 | 825.8 |
Not designated as hedging instruments | ||
Derivative instruments and hedging activities | ||
Derivative Assets (Liabilities) | 0.9 | 1 |
Notional Amount | 131 | 194.7 |
Not designated as hedging instruments | Forward currency contract | Other current assets | ||
Derivative instruments and hedging activities | ||
Derivative Asset | 0.3 | 0.7 |
Derivative Asset, Notional Amount | 55.3 | 157.7 |
Not designated as hedging instruments | Forward currency contract | Other current liabilities | ||
Derivative instruments and hedging activities | ||
Derivative Liability | (0.2) | (0.3) |
Derivative Liability, Notional Amount | 60.9 | 23 |
Not designated as hedging instruments | Embedded derivatives in purchase and delivery contracts | Other current assets | ||
Derivative instruments and hedging activities | ||
Derivative Asset | 0.1 | 0.2 |
Derivative Asset, Notional Amount | 7.6 | 8.5 |
Not designated as hedging instruments | Fixed price commodity contracts | Other current assets | ||
Derivative instruments and hedging activities | ||
Derivative Asset | 0.7 | 0.4 |
Derivative Asset, Notional Amount | $ 7.2 | $ 5.5 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Income and Comprehensive Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flow Hedging | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | $ 11.4 | $ (9.9) |
Not designated as hedging instruments | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | (1.6) | (5.4) |
Not designated as hedging instruments | Interest and other income (expense), net | Forward currency contract | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | (1.5) | (5) |
Not designated as hedging instruments | Interest and other income (expense), net | Embedded derivatives in purchase and delivery contracts | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | (0.1) | (0.4) |
Designated as hedging instrument | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | (0.5) | (4) |
Designated as hedging instrument | Cash Flow Hedging | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | 1.1 | 1.4 |
Designated as hedging instrument | Cash Flow Hedging | Accumulated other comprehensive income | Interest rate and cross currency swap agreements | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | 11.4 | (9.9) |
Designated as hedging instrument | Cash Flow Hedging | Interest and other income (expense), net | Interest rate and cross currency swap agreements | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | (1) | (1.1) |
Designated as hedging instrument | Net Investment Hedging | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | 21.1 | (48.5) |
Designated as hedging instrument | Net Investment Hedging | Accumulated other comprehensive income | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | 9.7 | (38.6) |
Designated as hedging instrument | Net Investment Hedging | Accumulated other comprehensive income | Interest rate and cross currency swap agreements | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | 0.7 | (17.8) |
Designated as hedging instrument | Net Investment Hedging | Interest and other income (expense), net | Interest rate and cross currency swap agreements | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | 2.1 | 2.5 |
Designated as hedging instrument | Net Investment Hedging | Interest and other income (expense), net | Long-term debt | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | $ 9 | $ (20.8) |
Provision for Income Taxes (Det
Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Provision for Income Taxes | |||
Income tax expense (benefit) | $ 31.9 | $ 27.5 | |
Effective tax rates (as a percent) | 33.90% | 32.20% | |
Unrecognized tax benefits, excluding penalties and interest | $ 50.9 | $ 51.4 | |
Accrued interest and penalties related to uncertain tax positions | 3.5 | $ 3.1 | |
Penalties and interest (benefit) expense relating to unrecognized tax benefits | $ 0.4 | $ 0.1 | |
Statutory tax rate (as a percent) | 21.00% | ||
Change in tax rate - foreign jurisdictions (as a percent) | 5.20% | ||
Germany | |||
Provision for Income Taxes | |||
Statutory tax rate (as a percent) | 30.00% | ||
Switzerland | |||
Provision for Income Taxes | |||
Statutory tax rate (as a percent) | 20.00% |
Earnings Per Share - Computatio
Earnings Per Share - Computation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share | ||
Net income attributable to Bruker Corporation, as reported | $ 61.6 | $ 56.7 |
Weighted average shares outstanding: | ||
Weighted average shares outstanding-basic | 150.4 | 151.8 |
Effect of dilutive securities: | ||
Stock options and restricted stock units (in shares) | 1 | 1.4 |
Weighted-average number of common shares used in computing diluted net income per common share | 151.4 | 153.2 |
Net income per common share attributable to Bruker Corporation shareholders: | ||
Basic | $ 0.41 | $ 0.37 |
Diluted | $ 0.41 | $ 0.37 |
Earnings Per Share - Anti-dilut
Earnings Per Share - Anti-dilutive Stock Options (Details) | 3 Months Ended |
Mar. 31, 2022shares | |
Stock options | |
Anti-dilutive securities | |
Number of shares excluded from the computation of diluted earnings per share | 0.1 |
Unvested restricted stock units | |
Anti-dilutive securities | |
Number of shares excluded from the computation of diluted earnings per share | 0.2 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchase and Dividends (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | May 31, 2021 | May 31, 2019 | |
May 2019 Repurchase Program | ||||
Shareholders' Equity | ||||
Amount approved for repurchase of common stock | $ 300 | |||
Common stock repurchased during the period (in shares) | 530,729 | |||
Aggregate cost of common stock repurchased during the period | $ 32.8 | |||
May 2021 Repurchase Program | ||||
Shareholders' Equity | ||||
Amount approved for repurchase of common stock | $ 500 | |||
Common stock repurchased during the period (in shares) | 1,603,055 | |||
Aggregate cost of common stock repurchased during the period | $ 105.6 | |||
Remaining authorization amount for repurchase of common stock | $ 275.5 |
Shareholders' Equity - Comprehe
Shareholders' Equity - Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Summary of comprehensive income (loss) | ||
Consolidated net income | $ 62,100,000 | $ 57,800,000 |
Foreign currency translation adjustments | (30,500,000) | (68,000,000) |
Derivatives designated as hedging instruments, net of tax | 21,100,000 | 48,500,000 |
Pension liability adjustments, net of tax | 500,000 | 3,300,000 |
Net comprehensive income | 53,200,000 | 41,600,000 |
Less: Comprehensive income attributable to noncontrolling interests | 200,000 | 900,000 |
Less: Comprehensive loss attributable to redeemable noncontrolling interest | (0.2) | 0 |
Comprehensive income attributable to Bruker Corporation | $ 53,200,000 | $ 40,700,000 |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Income (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Summary of the components of accumulated other comprehensive income, net of tax | |
Balance at beginning of period | $ 1,084.6 |
Balance at end of period | 1,031.3 |
Foreign Currency Translation | |
Summary of the components of accumulated other comprehensive income, net of tax | |
Balance at beginning of period | 63.1 |
Other comprehensive (loss) income before reclassifications, net of tax | (30.5) |
Realized gain on amounts reclassified from other comprehensive income, net of tax | 0 |
Net current period other comprehensive (loss) income | (30.5) |
Balance at end of period | 32.6 |
Derivatives Designated as Hedging Instruments | |
Summary of the components of accumulated other comprehensive income, net of tax | |
Balance at beginning of period | (40.1) |
Other comprehensive (loss) income before reclassifications, net of tax | 21.1 |
Realized gain on amounts reclassified from other comprehensive income, net of tax | 0 |
Net current period other comprehensive (loss) income | 21.1 |
Balance at end of period | (19) |
Pension Liability Adjustment | |
Summary of the components of accumulated other comprehensive income, net of tax | |
Balance at beginning of period | (31.2) |
Other comprehensive (loss) income before reclassifications, net of tax | 0.2 |
Realized gain on amounts reclassified from other comprehensive income, net of tax | (0.3) |
Net current period other comprehensive (loss) income | 0.5 |
Balance at end of period | (30.7) |
Accumulated Other Comprehensive Income (Loss) | |
Summary of the components of accumulated other comprehensive income, net of tax | |
Balance at beginning of period | (8.2) |
Other comprehensive (loss) income before reclassifications, net of tax | (9.2) |
Realized gain on amounts reclassified from other comprehensive income, net of tax | (0.3) |
Net current period other comprehensive (loss) income | (8.9) |
Balance at end of period | $ (17.1) |
Shareholders' Equity - Expense
Shareholders' Equity - Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 3.8 | $ 3.4 |
Additional information | ||
Weighted average remaining service period | 2 years 2 months 12 days | |
Pre-tax stock-based compensation expense Stock options | $ 2.7 | |
Incentive Compensation Plan 2016 Member | ||
Additional information | ||
Weighted average remaining service period | 2 years 2 months 12 days | |
Pre-tax stock-based compensation expense Stock options | $ 25.5 | |
Cost of revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 0.6 | 0.5 |
Selling, general and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 2.6 | 2.4 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 0.6 | 0.5 |
Mestrelab | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 4.2 | $ 0.4 |
Other Charges, Net - Components
Other Charges, Net - Components of other charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Charges (Gain), Net | ||
Information technology transformation costs | $ 1 | $ 0.7 |
Professional fees incurred in connection with investigation matters | 0.4 | 0.1 |
Restructuring charges | 0.3 | 1.3 |
Acquisition-related expenses, net | 5.1 | 0.9 |
Long-lived asset impairments | 0.4 | 0 |
Other | 0.3 | 0 |
Other charges, net | $ 7.5 | $ 3 |
Other Charges, Net - Restructur
Other Charges, Net - Restructuring Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring charges | ||
Restructuring expenses | $ 0.4 | $ 2.4 |
Cost of revenues | ||
Restructuring charges | ||
Restructuring expenses | 0.1 | 1.1 |
Other charges, net | ||
Restructuring charges | ||
Restructuring expenses | $ 0.3 | $ 1.3 |
Other Charges, Net - Restruct_2
Other Charges, Net - Restructuring Reserves (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in the restructuring reserves | ||
Balance at the beginning of the period | $ 6.4 | |
Restructuring charges | 0.4 | $ 2.4 |
Cash payments | (2.8) | |
Other, non-cash adjustments and foreign currency effect | (1.4) | |
Balance at the end of the period | 2.6 | |
Severance | ||
Changes in the restructuring reserves | ||
Balance at the beginning of the period | 3.5 | |
Restructuring charges | 0.1 | |
Cash payments | (2.6) | |
Other, non-cash adjustments and foreign currency effect | 0 | |
Balance at the end of the period | 1 | |
Exit Costs | ||
Changes in the restructuring reserves | ||
Balance at the beginning of the period | 0.3 | |
Restructuring charges | 0.3 | |
Cash payments | (0.2) | |
Other, non-cash adjustments and foreign currency effect | 0 | |
Balance at the end of the period | 0.4 | |
Provisions for Excess Inventory | ||
Changes in the restructuring reserves | ||
Balance at the beginning of the period | 2.6 | |
Restructuring charges | 0 | |
Cash payments | 0 | |
Other, non-cash adjustments and foreign currency effect | (1.4) | |
Balance at the end of the period | $ 1.2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Letters of Credit and Guarantees | ||
Material Accruals For Potential Contingencies | $ 0 | $ 0 |
Related Parties (Additional Inf
Related Parties (Additional Information) (Details) $ in Millions | Mar. 15, 2022USD ($) |
PrognomIQ, Inc [Member] | |
Related Party Transaction [Line Items] | |
Investment in related party, Amount | $ 17 |
Business Segment Information -
Business Segment Information - Schedule of Revenue, Operating Income and Total Assets by Reportable Segment (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022USD ($)Segment | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Business segment information | |||
Number of reportable segments | Segment | 3 | ||
Total revenue | $ 595 | $ 554.7 | |
Operating Income (loss) | 96.5 | 89.1 | |
Assets | 3,550.7 | $ 3,650 | |
Operating segments | |||
Business segment information | |||
Assets | 3,463 | 3,560.5 | |
Eliminations | |||
Business segment information | |||
Total revenue | (4.2) | (3.9) | |
Corporate, eliminations and other | |||
Business segment information | |||
Operating Income (loss) | 18.3 | (16.2) | |
Assets | 7.2 | (8.4) | |
BSI Life Science | Operating segments | |||
Business segment information | |||
Total revenue | 361 | 351.8 | |
Operating Income (loss) | 85.9 | 88.9 | |
BSI Nano | Operating segments | |||
Business segment information | |||
Total revenue | 178.5 | 154.4 | |
Operating Income (loss) | 22.3 | 12.3 | |
BEST | Operating segments | |||
Business segment information | |||
Total revenue | 59.7 | 52.4 | |
Operating Income (loss) | 6.6 | $ 4.1 | |
Assets | $ 94.9 | $ 97.9 |