Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 22, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | BRUKER CORP | ||
Entity Central Index Key | 1,109,354 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,244,357,403 | ||
Entity Common Stock, Shares Outstanding | 163,424,532 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 267.1 | $ 319.5 |
Short-term investments | 201.2 | 178 |
Accounts receivable, net | 234.7 | 293.2 |
Inventories | 422 | 477.4 |
Deferred tax assets | 9.3 | |
Other current assets | 106.6 | 88.9 |
Total current assets | 1,231.6 | 1,366.3 |
Property, plant and equipment, net | 231.1 | 249.9 |
Goodwill | 130.6 | 127.8 |
Intangible assets, net | 74.7 | 83.8 |
Deferred tax assets | 53 | 29.7 |
Other long-term assets | 9.9 | 7.3 |
Total assets | 1,730.9 | 1,864.8 |
Current liabilities: | ||
Current portion of long-term debt | 0.7 | 0.8 |
Accounts payable | 72.1 | 76 |
Customer advances | 178.3 | 189.5 |
Deferred tax liabilities | 15 | |
Other current liabilities | 303.5 | 301.4 |
Total current liabilities | 554.6 | 582.7 |
Long-term debt | 266 | 354.2 |
Long-term deferred revenue | 44.4 | 37.1 |
Deferred tax liabilities | 9.5 | 17.8 |
Accrued pension | 91.6 | 66.2 |
Other long-term liabilities | $ 31.9 | $ 35.1 |
Commitments and contingencies (Note 14) | ||
Shareholders' equity: | ||
Preferred stock, $0.01 par value 5,000,000 shares authorized, none issued or outstanding at December 31, 2015 and 2014 | ||
Common stock, $0.01 par value 260,000,000 shares authorized, 169,644,644 and 168,582,988 shares issued and 165,354,180 and 168,527,584 outstanding at December 31, 2015 and 2014, respectively | $ 1.7 | $ 1.7 |
Treasury stock at cost, 4,290,527 and 55,404 shares at December 31, 2015 and 2014, respectively | (90.9) | (0.9) |
Additional paid-in capital | 102.1 | 81.1 |
Retained earnings | 757.4 | 655.8 |
Accumulated other comprehensive income (loss) | (44.2) | 28.2 |
Total shareholders' equity attributable to Bruker Corporation | 726.1 | 765.9 |
Noncontrolling interest in consolidated subsidiaries | 6.8 | 5.8 |
Total shareholders' equity | 732.9 | 771.7 |
Total liabilities and shareholders' equity | $ 1,730.9 | $ 1,864.8 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
CONSOLIDATED BALANCE SHEETS | ||
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 | 169,644,644 | 168,582,988 |
Common stock, shares outstanding | 165,354,180 | 168,527,584 |
Treasury stock, shares | 4,290,527 | 55,404 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) | |||
Product revenue | $ 1,381.1 | $ 1,571.9 | $ 1,611.4 |
Service revenue | 235.5 | 231.8 | 219.3 |
Other revenue | 7.2 | 5.2 | 8.7 |
Total revenue | 1,623.8 | 1,808.9 | 1,839.4 |
Cost of product revenue | 774.2 | 896 | 891.7 |
Cost of service revenue | 139.7 | 149.6 | 142.5 |
Cost of other revenue | 1.3 | ||
Total cost of revenue | 915.2 | 1,045.6 | 1,034.2 |
Gross profit | 708.6 | 763.3 | 805.2 |
Operating expenses: | |||
Selling, general and administrative | 392.2 | 451 | 437.9 |
Research and development | 145.7 | 174.2 | 190.5 |
Impairment of assets | 4.6 | 11.5 | |
Other charges, net | 20.4 | 21.2 | 28.6 |
Total operating expenses | 562.9 | 657.9 | 657 |
Operating income | 145.7 | 105.4 | 148.2 |
Interest and other income (expense), net | (17.7) | (4.1) | (23.6) |
Income before income taxes and noncontrolling interest in consolidated subsidiaries | 128 | 101.3 | 124.6 |
Income tax provision | 23.1 | 41.7 | 42.8 |
Consolidated net income | 104.9 | 59.6 | 81.8 |
Net income attributable to noncontrolling interest in consolidated subsidiaries | 3.3 | 2.9 | 1.7 |
Net income attributable to Bruker Corporation | $ 101.6 | $ 56.7 | $ 80.1 |
Net income per common share attributable to Bruker Corporation shareholders: | |||
Basic (in dollars per share) | $ 0.60 | $ 0.34 | $ 0.48 |
Diluted (in dollars per share) | $ 0.60 | $ 0.33 | $ 0.48 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 168.2 | 167.8 | 166.5 |
Diluted (in shares) | 169.1 | 169.5 | 168.5 |
Consolidated net income | $ 104.9 | $ 59.6 | $ 81.8 |
Foreign currency translation adjustments | (63.8) | (131.7) | 27.3 |
Pension liability adjustments (net of tax of $2.1 million, $6.5 million and $4.6 million, respectively) | (9.6) | (22.6) | 17.3 |
Net comprehensive income (loss) | 31.5 | (94.7) | 126.4 |
Less: Comprehensive income attributable to noncontrolling interests | 2.3 | 2.8 | 1.6 |
Comprehensive income (loss) attributable to Bruker Corporation | $ 29.2 | $ (97.5) | $ 124.8 |
CONSOLIDATED STATEMENTS OF INC5
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) | |||
Pension liability adjustments, tax | $ 2.1 | $ 6.5 | $ 4.6 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Share Repurchase ProgramsTotal Shareholders' Equity Attributable to Bruker Corporation | Share Repurchase ProgramsCommon Stock | Share Repurchase ProgramsTreasury Stock | Share Repurchase Programs | Other Treasury Stock AcquiredTotal Shareholders' Equity Attributable to Bruker Corporation | Other Treasury Stock AcquiredCommon Stock | Other Treasury Stock AcquiredTreasury Stock | Other Treasury Stock AcquiredAdditional Paid-In Capital | Other Treasury Stock Acquired | Total Shareholders' Equity Attributable to Bruker Corporation | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interests in Consolidated Subsidiaries | Total |
Balance at Dec. 31, 2012 | $ 706.6 | $ 1.7 | $ (0.2) | $ 48.3 | $ 519 | $ 137.8 | $ 3.1 | $ 709.7 | |||||||||
Balance (in shares) at Dec. 31, 2012 | 166,604,427 | 21,549 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Restricted shares issued (in shares) | 121,072 | ||||||||||||||||
Stock options exercised | 8.4 | 8.4 | 8.4 | ||||||||||||||
Stock options exercised (in shares) | 871,991 | ||||||||||||||||
Stock based compensation | 6.6 | 6.6 | 6.6 | ||||||||||||||
Share repurchases and treasury stock acquired | $ (0.2) | $ (0.4) | $ 0.2 | $ (0.2) | |||||||||||||
Share repurchases and treasury stock acquired (in shares) | (18,286) | 18,286 | |||||||||||||||
Distributions to noncontrolling interests | (0.6) | (0.6) | |||||||||||||||
Consolidated net income | 80.1 | 80.1 | 1.7 | 81.8 | |||||||||||||
Other comprehensive income (loss) | 44.6 | 44.6 | (0.1) | 44.5 | |||||||||||||
Balance at Dec. 31, 2013 | 846.1 | $ 1.7 | $ (0.6) | 63.5 | 599.1 | 182.4 | 4.1 | 850.2 | |||||||||
Balance (in shares) at Dec. 31, 2013 | 167,579,204 | 39,835 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Restricted shares issued (in shares) | 112,129 | ||||||||||||||||
Stock options exercised | 8.2 | 8.2 | 8.2 | ||||||||||||||
Stock options exercised (in shares) | 851,820 | ||||||||||||||||
Stock based compensation | 9.4 | 9.4 | 9.4 | ||||||||||||||
Share repurchases and treasury stock acquired | (0.3) | $ (0.3) | (0.3) | ||||||||||||||
Share repurchases and treasury stock acquired (in shares) | (15,569) | 15,569 | |||||||||||||||
Distributions to noncontrolling interests | (1.1) | (1.1) | |||||||||||||||
Consolidated net income | 56.7 | 56.7 | 2.9 | 59.6 | |||||||||||||
Other comprehensive income (loss) | (154.2) | (154.2) | (0.1) | (154.3) | |||||||||||||
Balance at Dec. 31, 2014 | 765.9 | $ 1.7 | $ (0.9) | 81.1 | 655.8 | 28.2 | 5.8 | 771.7 | |||||||||
Balance (in shares) at Dec. 31, 2014 | 168,527,584 | 55,404 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Restricted shares issued (in shares) | 135,677 | ||||||||||||||||
Restricted shares terminated (in shares) | (145,857) | 145,857 | |||||||||||||||
Stock options exercised | 10.8 | 10.8 | 10.8 | ||||||||||||||
Stock options exercised (in shares) | 926,042 | ||||||||||||||||
Stock based compensation | 8 | 8 | 8 | ||||||||||||||
Excess tax benefit related to exercise of stock awards | 2.2 | 2.2 | 2.2 | ||||||||||||||
Share repurchases and treasury stock acquired | $ (89.9) | $ (89.9) | $ (89.9) | $ (0.1) | $ (0.1) | $ (0.1) | |||||||||||
Share repurchases and treasury stock acquired (in shares) | (4,082,042) | 4,082,042 | (7,224) | 7,224 | |||||||||||||
Distributions to noncontrolling interests | (1.3) | (1.3) | |||||||||||||||
Consolidated net income | 101.6 | 101.6 | 3.3 | 104.9 | |||||||||||||
Other comprehensive income (loss) | (72.4) | (72.4) | (1) | (73.4) | |||||||||||||
Balance at Dec. 31, 2015 | $ 726.1 | $ 1.7 | $ (90.9) | $ 102.1 | $ 757.4 | $ (44.2) | $ 6.8 | $ 732.9 | |||||||||
Balance (in shares) at Dec. 31, 2015 | 165,354,180 | 4,290,527 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Consolidated net income | $ 104.9 | $ 59.6 | $ 81.8 |
Adjustments to reconcile consolidated net income to cash flows from operating activities: | |||
Depreciation and amortization | 53.3 | 59.7 | 61.3 |
Write-down of demonstration inventories to net realizable value | 19.4 | 28.2 | 32.7 |
Stock-based compensation expense | 8 | 9.4 | 6.6 |
Deferred income taxes | (29.4) | (9.2) | 7.4 |
Gain (loss) on disposal of product lines | 0.2 | (8.3) | (0.9) |
Impairment and other non-cash expenses, net | 26.5 | 14.2 | 2.1 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 45 | (14.5) | (19.3) |
Inventories | (5.4) | 4.6 | 5.7 |
Accounts payable and accrued expenses | 12.6 | 9 | 7 |
Income taxes payable, net | 22.7 | 5.6 | (28.7) |
Deferred revenue | 3.8 | 12.9 | 4.6 |
Customer advances | 1.4 | (48.2) | (12.1) |
Other changes in operating assets and liabilities, net | (33.8) | (8.7) | (3.2) |
Net cash provided by operating activities | 229.2 | 114.3 | 145 |
Cash flows from investing activities: | |||
Purchase of short-term investments | (159.4) | (211.6) | |
Maturity of short-term investments | 118.7 | 19 | |
Cash paid for acquisitions, net of cash acquired | (28.6) | (3.9) | (11.6) |
Proceeds from disposal of product lines | 0.2 | 25.3 | 0.5 |
Purchases of property, plant and equipment | (34.2) | (33.8) | (50.3) |
Proceeds from sales of property, plant and equipment | 0.9 | 3.1 | 1.4 |
Net cash used in investing activities | (102.4) | (201.9) | (60) |
Cash flows from financing activities: | |||
Repayments of revolving lines of credit | (129.5) | ||
Proceeds from revolving lines of credit | 42 | 19.5 | |
Repayment of other debt, net | (0.6) | (0.8) | (1.6) |
Proceeds from issuance of common stock, net | 10.8 | 7.9 | 8.2 |
Payment of contingent consideration | (3) | ||
Repurchase of common stock | (90) | ||
Changes in restricted cash | 1.4 | 0.7 | 1 |
Cash payments to noncontrolling interests | (1.3) | (1.1) | (0.6) |
Excess tax benefit related to stock option awards | 2.2 | ||
Net cash (used in) provided by financing activities | (168) | 6.7 | 26.5 |
Effect of exchange rate changes on cash and cash equivalents | (11.2) | (38.3) | 16.6 |
Net change in cash and cash equivalents | (52.4) | (119.2) | 128.1 |
Cash and cash equivalents at beginning of year | 319.5 | 438.7 | 310.6 |
Cash and cash equivalents at end of year | 267.1 | 319.5 | 438.7 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 12.2 | 12.7 | 12.7 |
Cash paid for taxes | $ 56.6 | $ 55.9 | $ 84.3 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2015 | |
Description of Business | |
Description of Business | Note 1—Description of Business Bruker Corporation, together with its consolidated subsidiaries ("Bruker" or the "Company"), is a designer and manufacturer of high-performance scientific instruments and analytical and diagnostic solutions that enable our customers to explore life and materials at microscopic, molecular and cellular levels. Many of our products are used to detect, measure and visualize structural characteristics of chemical, biological and industrial material samples. Our 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 two reportable segments, Bruker Scientific Instruments (BSI) , which represents approximately 92% of the Company's revenues during the year ended December 31, 2015, and Bruker Energy & Supercon Technologies (BEST) , which represents the remainder of the business. Within BSI, the Company is organized into three operating segments: the Bruker BioSpin Group, the Bruker CALID Group and the Bruker Nano Group. For financial reporting purposes, the Bruker BioSpin, Bruker CALID and Bruker Nano operating segments are aggregated into the BSI reportable segment because each has similar economic characteristics, production processes, service offerings, types and classes of customers, methods of distribution and regulatory environments. Bruker BioSpin — Bruker BioSpin designs, manufactures and distributes enabling life science tools based on magnetic resonance and preclinical imaging technologies. Bruker BioSpin sells various systems utilizing magnetic resonance technology, including magnetic resonance imaging (MRI) systems, nuclear magnetic resonance systems (NMR) and electron paramagnetic resonance systems (EPR), as well as OEM MRI magnets sold to medical device manufacturers. Bruker BioSpin also sells single and multiple modality systems using MRI, position emission tomography (PET), single photon emission tomography (SPECT), computed tomography (CT), magnetic particle imaging (MPI) and optical imaging (fluorescence and bioluminescence) technologies to preclinical markets. Bruker CALID ( C hemicals, A pplied Markets, L ife Science, I n-Vitro Diagnostics, D etection) — Bruker CALID designs, manufactures and distributes life science mass spectrometry instruments that can be integrated and used along with other sample preparation or chromatography instruments, as well as Chemical, Biological, Radiological, Nuclear and Explosive (CBRNE) detection products. Bruker CALID also designs, manufactures and distributes instruments based on Raman molecular spectroscopy technologies. Bruker CALID's mass spectrometry units are typically used in applications of expression proteomics, clinical proteomics, metabolic and peptide biomarker profiling, drug discovery and development, molecular diagnostics research, molecular and systems biology, basic molecular medicine research and clinical microbiology. Bruker Nano — Bruker Nano designs, manufactures and distributes spectroscopy and microscopy instruments for the understanding of composition and structure in material science and life science samples. The instruments are based on advanced technologies in X-ray fluorescence spectroscopy (XRF), X-ray diffraction (XRD), X-ray micro computed tomography ( CT), atomic force microscopy (AFM), stylus and optical metrology (SOM) and fluorescence microscopy (FM), and also include analytical tools for electron microscopes, handheld, portable and mobile X-ray fluorescence and spark optical emission spectroscopy systems. The Company's 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, as well as ceramic high temperature superconductors primarily for energy grid and magnet applications. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2—Summary of Significant Accounting Policies The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in the notes to the consolidated financial statements. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and all majority and wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Noncontrolling Interests Noncontrolling interests represents the minority shareholders' proportionate share of the Company's majority-owned subsidiaries. The portion of net income or net loss attributable to non-controlling interests is presented as net income attributable to noncontrolling interests in consolidated subsidiaries in the consolidated statements of income and comprehensive income (loss), and the portion of other comprehensive income (loss) of these subsidiaries is presented in the consolidated statements of shareholders' equity. Subsequent Events The Company has evaluated all subsequent events and determined that there are no material recognized or unrecognized subsequent events, or any subsequent events required to be mentioned in the footnotes to the consolidated financial statements, other than the item disclosed in Note 23—Subsequent Event. Cash and Cash Equivalents Cash and cash equivalents primarily include cash on hand, money market funds and time deposits with original maturities of three months or less at the date of acquisition. Time deposits represent amounts on deposit in banks and temporarily invested in instruments with maturities of three months or less at the time of purchase. Certain of these investments represent deposits which are not insured by the FDIC or any other government agency. Cash equivalents are carried at cost, which approximates fair value. Short-term Investments Short-term investments represent time and call deposits with original maturities of greater than three months at the date of acquisition. Short-term investments are classified as available-for-sale and are reported at fair value, with unrealized gains (losses) excluded from earnings and reported, net of tax, in accumulated other comprehensive income (loss) within the accompanying consolidated balance sheets. There were no unrealized gains (losses) recorded as of December 31, 2015 and 2014, as cost approximates fair value. Restricted Cash The Company has certain subsidiaries which are required by local governance to maintain restricted cash balances to cover future employee benefit payments. Restricted cash balances are classified as non-current unless, under the terms of the applicable agreements, the funds will be released from restrictions within one year from the balance sheet date. The current and non-current portion of restricted cash is recorded within other current assets and other long-term assets, respectively, in the accompanying consolidated balance sheets. Derivative Financial Instruments and Hedging Activities All derivatives, whether designated in a hedging relationship or not, are recorded on the consolidated balance sheets at fair value. The accounting for changes in fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, the Company must designate the hedging instrument, based on the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. A fair value hedge is a derivative instrument designated for the purpose of hedging the exposure of changes in fair value of an asset or a liability resulting from a particular risk. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are both recognized in the same caption in the consolidated statements of income and comprehensive income (loss). Fair Value of Financial Instruments The Company applies the following hierarchy to determine the fair value of financial instruments, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The levels in the hierarchy are defined as follows: • Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The valuation techniques that may be used by the Company to determine the fair value of Level 2 and Level 3 financial instruments are the market approach, the income approach and the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value based on current market expectations about those future amounts, including present value techniques, option-pricing models and the excess earnings method. The cost approach is based on the amount that would be required to replace the service capacity of an asset (replacement cost). The Company's financial instruments consist primarily of cash equivalents, short-term investments, restricted cash, derivative instruments consisting of forward foreign exchange contracts, commodity contracts, derivatives embedded in certain purchase and sale contracts, accounts receivable, short-term borrowings, accounts payable, contingent consideration and long-term debt. The carrying amounts of the Company's cash equivalents, short-term investments and restricted cash, accounts receivable, short-term borrowings and accounts payable approximate fair value caused by their short-term nature. Derivative assets and liabilities are measured at fair value on a recurring basis. The Company's long-term debt consists principally of a private placement arrangement entered into in 2012 with various fixed interest rates based on the maturity date. The Company has evaluated the estimated fair value of financial instruments using available market information and management's estimates. The use of different market assumptions and/or estimation methodologies could have a significant effect on the estimated fair value amounts. Concentration of Credit Risk Financial instruments which subject the Company to credit risk consist of cash, cash equivalents, short-term investments, derivative instruments, accounts receivables and restricted cash. The risk with respect to cash, cash equivalents and short-term investments is minimized by the Company's policy of investing in short-term financial instruments issued by highly-rated financial institutions. The risk with respect to derivative instruments is minimized by the Company's policy of entering into arrangements with highly-rated financial institutions. The risk with respect to accounts receivables is minimized by the creditworthiness and diversity of the Company's customers. The Company performs periodic credit evaluations of its customers' financial condition and generally requires an advanced deposit for a portion of the purchase price. Credit losses have been within management's expectations and the allowance for doubtful accounts totaled $9.1 million and $10.1 million as of December 31, 2015 and 2014, respectively. As of December 31, 2015 and 2014, no single customer represented 10% or more of the Company's accounts receivable. For the years ended December 31, 2015, 2014 and 2013, no single customer represented 10% or more of the Company's total revenue. Inventories Components of inventory include raw materials, work-in-process, demonstration units and finished goods. Demonstration units include systems which are located in the Company's demonstration laboratories or installed at the sites of potential customers and are considered available for sale. Finished goods include in-transit systems that have been shipped to the Company's customers, but not yet installed and accepted by the customer. All inventories are stated at the lower of cost or market. Cost is determined principally by the first-in, first-out method for a majority of subsidiaries and by average-cost for certain other subsidiaries. The Company reduces the carrying value of its inventories for differences between cost and estimated net realizable value, taking into consideration usage in the preceding twelve months, expected demand, technological obsolescence and other information including the physical condition of demonstration inventories. The Company records a charge to cost of revenue for the amount required to reduce the carrying value of inventory to net realizable value. Costs associated with the procurement of inventories, such as inbound freight charges and purchasing and receiving costs, are capitalized as part of inventory and are also included in the cost of revenue line item within the consolidated statements of income and comprehensive income (loss). Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Major improvements are capitalized while expenditures for maintenance, repairs and minor improvements are charged to expense as incurred. When assets are retired or otherwise disposed of, the assets and related accumulated depreciation and amortization are eliminated from the accounts and any resulting gain or loss is reflected in the consolidated statements of income and comprehensive income (loss). Depreciation and amortization are calculated on a straight-line basis over the estimated useful lives of the assets as follows: Buildings 25-40 years Machinery and equipment 3-10 years Computer equipment and software 3-5 years Furniture and fixtures 3-10 years Leasehold improvements Lesser of 15 years or the remaining lease term Goodwill and Intangible Assets Goodwill and indefinite-lived intangible assets are not amortized, but are evaluated for impairment on an annual basis, or on an interim basis when events or changes in circumstances indicate that the carrying value may not be recoverable. In assessing the recoverability of goodwill and indefinite-lived intangible assets, the Company must make assumptions regarding the estimated future cash flows, and other factors, to determine the fair value of these assets. If these estimates or their related assumptions change in the future, the Company may be required to record impairment charges against these assets in the reporting period in which the impairment is determined. The Company tests goodwill for impairment at the reporting unit level, which is the operating segment or one level below an operating segment. The Company has the option of performing a qualitative assessment to determine whether further impairment testing is necessary before performing the two-step quantitative assessment. If as a result of the qualitative assessment, it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, a quantitative impairment test will be required. Otherwise, no further testing will be required. If a quantitative impairment test is performed, the first step involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill. The Company generally determines fair value of reporting units using a weighting of both the market and the income methodologies. Estimating the fair value of the reporting units requires significant judgment by management. If the carrying amount of a reporting unit exceeds the fair value of the reporting unit, the Company performs the second step of the goodwill impairment test to measure the amount of the impairment. In the second step of the goodwill impairment test the Company compares the implied fair value of the reporting unit's goodwill with the carrying value of that goodwill. In process research and development, or IPR&D, acquired as part of business combinations under the acquisition method represents ongoing development work associated with enhancements to existing products, as well as the development of next generation products. IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment on an annual basis, or when indicators of impairment are identified. When the IPR&D project is complete, it is reclassified as a finite-lived intangible asset and is amortized over its estimated useful life, typically seven to ten years. If an IPR&D project is abandoned before completion or is otherwise determined to be impaired, the value of the asset or the amount of the impairment is charged to the consolidated statements of income and comprehensive income (loss) in the period the project is abandoned or impaired. Intangible assets with a finite useful life are amortized on a straight-line basis over their estimated useful lives as follows: Existing technology and related patents 3-10 years Customer and distributor relationships 5-12 years Trade names 5-10 years Impairment of Long-Lived Assets Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the quoted market price, if available, or the estimated fair value of those assets are less than the assets' carrying value. Impairment losses are charged to the consolidated statements of income and comprehensive income (loss) for the difference between the fair value and carrying value of the asset. Warranty Costs and Deferred Revenue The Company typically provides a one year parts and labor warranty with the purchase of equipment. The anticipated cost for this warranty is accrued upon recognition of the sale and is included as a current liability on the accompanying consolidated balance sheets. The Company's warranty reserve reflects estimated material and labor costs for potential product issues for which the Company expects to incur an obligation. The Company's estimates of anticipated rates of warranty claims and costs are primarily based on historical information. The Company assesses the adequacy of the warranty reserve on a quarterly basis and adjusts the amount as necessary. If the historical data used to calculate the adequacy of the warranty reserve is not indicative of future requirements, additional or reduced warranty reserves may be required. The Company also offers to its customers extended warranty and service agreements extending beyond the initial warranty for a fee. These fees are recorded as deferred revenue and recognized ratably into income over the life of the extended warranty contract or service agreement. Income Taxes Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the income tax basis of assets and liabilities. A valuation allowance is applied against any net deferred tax asset if, based on the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company records liabilities related to uncertain tax positions in accordance with the guidance that clarifies the accounting for uncertainty in income taxes recognized in a Company's financial statements. This guidance prescribes a minimum recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Customer Advances The Company typically requires an advance deposit under the terms and conditions of contracts with customers. These deposits are recorded as a liability until revenue is recognized on the specific contract in accordance with the Company's revenue recognition policy. Revenue Recognition The Company recognizes revenue from system sales when persuasive evidence of an arrangement exists, the price is fixed or determinable, title and risk of loss has been transferred to the customer and collectability of the resulting receivable is reasonably assured. Title and risk of loss transfers based upon customer acceptance for a system that has been delivered and installed at a customer facility or, for certain systems, upon shipping terms. For systems that include customer-specific acceptance criteria, the Company is required to assess when it can demonstrate the acceptance criteria has been met, which generally is upon customer acceptance and evidence of installation. When products are sold through an independent distributor or a strategic distribution partner who assumes responsibility for installation, the Company recognizes the system sale when the product has been shipped and title and risk of loss have been transferred to the distributor. The Company's distributors do not have price protection rights or rights of return; however, the Company's products are typically warranted to be free from defect for a period of one year. Revenue is deferred until cash is received when collectability is not reasonably assured or when the price is not fixed or determinable. For transactions that include multiple elements, arrangement consideration is allocated to each element using the fair value hierarchy as required by ASU No. 2009-13. The Company limits the amount of revenue recognized for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations, or subject to customer-specific return or refund privileges. The Company determines the fair value of its products and services based upon vendor specific objective evidence ("VSOE"). The Company determines VSOE based on its normal selling pricing and discounting practices for the specific product or service when sold on a stand-alone basis. In determining VSOE, the Company's policy requires a substantial majority of selling prices for a product or service to be within a reasonably narrow range. The Company also considers the class of customer, method of distribution and the geographies into which products and services are being sold when determining VSOE. If VSOE cannot be established, the Company attempts to establish the selling price based on third-party evidence ("TPE"). VSOE cannot be established in instances where a product or service has not been sold separately, stand-alone sales are too infrequent or product pricing is not within a sufficiently narrow range. TPE is determined based on competitor prices for similar deliverables when sold separately. When the Company cannot determine VSOE or TPE, it uses estimated selling price ("ESP") in its allocation of arrangement consideration. The objective of ESP is to determine the price at which the Company would typically transact a stand-alone sale of the product or service. ESP is determined by considering a number of factors including the Company's pricing policies, internal costs and gross profit objectives, method of distribution, market research and information, recent technological trends, competitive landscape and geographies. The Company analyzes the selling prices used in its allocation of arrangement consideration, at a minimum, on an annual basis. Selling prices will be analyzed more frequently if a significant change in the Company's business or other factors necessitate more frequent analysis or if the Company experiences significant variances in its selling prices. Revenue from accessories and parts is recognized upon shipment. Service revenue is recognized as the services are performed or ratably over the contractual obligation and includes maintenance contracts, extended warranty, training, application support and on-demand services. The Company also has contracts for which it applies the percentage-of-completion model and completed contract model of revenue recognition. Application of the percentage-of-completion method requires the Company to make reasonable estimates of the extent of progress toward completion of the contract and the total costs the Company will incur under the contract and losses are recorded immediately when we estimate that contracts will ultimately result in a loss. Changes in the estimates could affect the timing of revenue recognition. Other revenues are primarily comprised of licensing arrangements, which is recognized ratably over the term of the related contracts. Shipping and Handling Costs The Company includes costs incurred in connection with shipping and handling of products within selling, general and administrative expenses in the accompanying consolidated statements of income and comprehensive income (loss). Shipping and handling costs were $20.6 million, $26.2 million and $26.7 million in the years ended December 31, 2015, 2014 and 2013, respectively. Amounts billed to customers in connection with these costs are included in total revenues. Research and Development Research and development costs are expensed as incurred and include salaries, wages and other personnel related costs, material costs and depreciation, consulting costs and facility costs. Software Costs Purchased software is capitalized at cost and is amortized over the estimated useful life, generally three years. Software developed for use in the Company's products is expensed as incurred until technological feasibility is reasonably assured and is classified as research and development expense. Subsequent to the achievement of technological feasibility, amounts are capitalizable, however, to date such amounts have not been material. Advertising The Company expenses advertising costs as incurred. Advertising expenses were $12.9 million, $10.7 million and $9.6 million during the years ended December 31, 2015, 2014 and 2013, respectively. Stock-Based Compensation The Company recognizes stock-based compensation expense in the consolidated statements of income and comprehensive income (loss) based on the fair value of the share-based award at the grant date. The Company's primary types of share-based compensation are stock options and restricted stock units. The Company recorded stock-based compensation expense for the years ended December 31, 2015, 2014 and 2013, as follows (in millions): 2015 2014 2013 Stock options $ $ $ Restricted stock Total stock-based compensation $ $ $ Compensation expense is amortized on a straight-line basis over the underlying vesting terms of the share-based award. Stock options to purchase the Company's common stock are periodically awarded to executive officers and other employees of the Company, and members of the Company's Board of Directors, subject to a vesting period of three to five years. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. Assumptions regarding volatility, expected term, dividend yield and risk-free interest rates are required for the Black-Scholes model and are presented in the table below: 2015 2014 2013 Risk-free interest rates 1.58%-1.91% 1.78%-2.10% 1.07%-2.45% Expected life 6.0-6.25 years 6.0-6.25 years 6.5 years Volatility 35.10%-52.23% 53.07%-56.24% Expected dividend yield — — — The risk-free interest rate is based on the yield on zero-coupon U.S. Treasury securities for a period that is commensurate with the expected life assumption. Expected life is determined through the simplified method as defined in the Securities and Exchange Commission Staff Accounting Bulletin No. 110. The Company believes that this is the best estimate of the expected term of a new option. Expected volatility is based on a number of factors, but the Company currently believes that the exclusive use of its historical volatility results in the best estimate of the grant-date fair value of employee stock options because it reflects the market's current expectations of future volatility. The expected dividend yield was not considered in the option pricing formula since the Company had not historically paid dividends and had no plan to do so as of December 31, 2015. In addition, the Company utilizes an estimated forfeiture rate when calculating the stock-based compensation expense for the period. The Company has applied estimated forfeiture rates derived from an analysis of historical data of 5.8%, 5.1% and 7.0% for the years ended December 31, 2015, 2014 and 2013, respectively, in determining the expense recorded in the accompanying consolidated statements of income and comprehensive income (loss). Earnings Per Share Net income per common share attributable to Bruker Corporation shareholders is calculated by dividing net income attributable to Bruker Corporation by the weighted-average shares outstanding during the period. The diluted net income per share computation includes the effect of shares which would be issuable upon the exercise of outstanding stock options and the vesting of restricted stock, reduced by the number of shares which are assumed to be purchased by the Company under the treasury stock method. The following table sets forth the computation of basic and diluted weighted average shares outstanding for the years ended December 31, (in millions, except per share data): 2015 2014 2013 Net income attributable to Bruker Corporation, as reported $ $ $ Weighted average shares outstanding: Weighted average shares outstanding-basic Effect of dilutive securities: Stock options and restricted stock units Net income per common share attributable to Bruker Corporation shareholders: Basic $ $ $ Diluted $ $ $ Stock options to purchase approximately 1.3 million shares, 0.1 million shares and 0.4 million shares were excluded from the computation of diluted earnings per share for the years ended December 31, 2015, 2014 and 2013, respectively, because their effect would have been anti-dilutive. In May 2015, the Company's Board of Directors approved a share repurchase program (the "Anti-Dilutive Repurchase Program") under which the Company may repurchase the Company's common stock in amounts intended to approximately offset, on an annual basis, the dilutive effect of shares that have been, or may be, issued pursuant to option or restricted stock awards under the Company's 2010 Incentive Compensation Plan. A total of 1,245,000 shares were repurchased at an aggregate cost of $24.9 million under the Anti-Dilutive Repurchase Program. In November 2015, the Company's Board of Directors suspended the Anti-Dilutive Repurchase Program until January 1, 2017 and approved an additional share repurchase program (the "Repurchase Program") under which repurchases of common stock up to $225 million may occur from time to time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions, legal requirements and other considerations. A total of 2,837,042 shares were repurchased at an aggregate cost of $65.0 million as of December 31, 2015 under the Repurchase Program. The Repurchase Program will continue in 2016 and the Company intends to fund any additional repurchases from cash on hand, future cash flows from operations and available borrowings under the revolving credit facility. The repurchased shares are reflected within Treasury stock in the accompanying consolidated balance sheet at December 31, 2015. Employee Benefit Plans The Company recognizes the over-funded or under-funded status of defined benefit pension and other postretirement defined benefit plans as an asset or liability, respectively, in its consolidated balance sheets and recognizes changes in the funded status in the year in which the changes occur through other comprehensive income (loss). Other Comprehensive Income (Loss) Other comprehensive income (loss) refers to revenues, expenses, gains and losses that are excluded from net income as these amounts are recorded directly as an adjustment to shareholders' equity, net of tax. The Company's other comprehensive income (loss) was composed of foreign currency translation adjustments and pension liability adjustments. Foreign Currency Translation Assets and liabilities of the Company's foreign subsidiaries, where the functional currency is the local currency, are translated into U.S. dollars using year-end exchange rates, or historical rates, as appropriate. Revenues and expenses of foreign subsidiaries are translated at the average exchange rates in effect during the year. Adjustments resulting from financial statement translations are included as a separate component of shareholders' equity. Gains and losses resulting from translation of foreign currency monetary transactions are reported in interest and other income (expense), net in the consolidated statements of income and comprehensive income (loss) for all periods presented. The Company has certain intercompany foreign currency transactions that are deemed to be of a long-term investment nature. Exchange adjustments related to those transactions are made directly to a separate component of shareholders' equity. Risk and Uncertainties The Company is subject to risks common to its industry including, but not limited to, global economic conditions, rapid technological change, government and academic funding levels, changes in commodity prices, spending patterns from 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. Contingencies The Company is subject to proceedings, lawsuits and other claims related to patents, product and other matters. The Company assesses the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses. A determination of the amount of reserves required, if any, for these contingencies is made after analysis of each individual issue. The required reserves may change in the future because of new developments in each situation or changes in settlement strategy in assessing these matters. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Significant estimates and judgments made by management in preparing these financial statements include revenue recognition, allowances for doubtful accounts, write-downs for excess and obsolete inventory, estimated fair values used to record impairment charges related to intangible assets, goodwill, and other long-lived assets, amortization periods, expected future cash flows used to evaluate the recoverability of long-lived assets, stock-based compensation expense, warranty allowances, restructuring and other related charges, contingent liabilities and the recoverability of the Company's net deferred tax assets. Although the Company regularly reassesses the assumptions underlying these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from management's estimates if these results differ from historical experience or other assumptions prove not to be substantially accurate, even if such assumptions are reasonable when made. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions | |
Acquisitions | Note 3—Acquisitions In October 2015, the Company completed the acquisition of Jordan Valley Semiconductors, Ltd. ("Jordan Valley"), a company headquartered in Israel that provides X-ray metrology and defect-detection equipment for semiconductor process control. The acquisition of Jordan Valley was accounted for under the acquisition method. The components and fair value allocation of the consideration transferred in connection with the acquisition of Jordan Valley were as follows (in millions): Consideration Transferred: Cash paid $ Cash acquired ) Contingent consideration Total consideration transferred $ Allocation of Consideration Transferred: Accounts receivable $ Inventories Other current assets Property, plant and equipment Intangible assets: Customer relationships Existing technology Trade name Goodwill Liabilities assumed ) Total consideration transferred $ The fair value allocation included contingent consideration in the amount of $4.1 million, which represented the estimated fair value of future payments to the former shareholders of Jordan Valley based on achieving annual revenue and gross margin targets for the years 2016-2017. The maximum potential future payments related to the contingent consideration is $15 million. The Company completed the fair value allocation in the fourth quarter of 2015. The amortization period for intangible assets acquired in connection with Jordan Valley is 7 years for customer relationships, existing technology and trade name. The results of Jordan Valley, including the amount allocated to goodwill which is attributable to expected synergies and not expected to be deductible for tax purposes, have been included in the BSI Segment from the date of acquisition. Pro forma financial information reflecting the acquisition of Jordan Valley has not been presented because the impact on revenues, net income and total assets is not material. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | Note 4—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 and presents them within the fair value hierarchy using the lowest level of input that is significant to the fair value measurement at December 31, 2015 and 2014 (in millions): December 31, 2015 Total Quoted Prices in Active Markets Available (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Short-term investments $ $ $ — $ — Restricted cash — — Embedded derivatives in purchase and delivery contracts — — Long-term restricted cash — — Total assets recorded at fair value $ $ $ $ — Liabilities: Contingent consideration $ $ — $ — $ Foreign exchange contracts — — Embedded derivatives in purchase and delivery contracts — — Fixed price commodity contracts — — Total liabilities recorded at fair value $ $ — $ $ December 31, 2014 Total Quoted Prices in Active Markets Available (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ $ $ — $ — Short-term investments — — Restricted cash — — Embedded derivatives in purchase and delivery contracts — — Long-term restricted cash — Total assets recorded at fair value $ $ $ $ — Liabilities: Contingent consideration $ $ — $ — $ Foreign exchange contracts — — Embedded derivatives in purchase and delivery contracts — — Fixed price commodity contracts — Total liabilities recorded at fair value $ $ — $ $ 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 fair value of the long-term fixed interest rate debt, which has been classified as Level 2, was $252.1 million and $257.2 million at December 31, 2015 and 2014, respectively, based on market and observable sources with similar maturity dates. 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 during the year ended December 31, 2015. As part of certain acquisitions in 2015, 2014 and 2013, the Company recorded contingent consideration liabilities that have been classified as Level 3 in the fair value hierarchy. The contingent consideration represents the estimated fair value of future payments to the former shareholders of applicable acquired companies based on achieving annual revenue and gross margin targets in certain years as specified in the purchase and sale agreements. The Company initially valued the contingent consideration by using a Monte Carlo simulation which models future revenue and costs of goods sold projections and discounts the average results to present value. Changes to the fair value of the contingent consideration recognized in earnings for the years ended December 31, 2015 and December 31, 2014 were ($7.7) million and $0.8 million, respectively, and were recorded to other charges, net in the consolidated statements of income and comprehensive income (loss). The adjustment for the year ended December 31, 2015 included a reversal of certain contingent consideration, as it was determined that certain financial targets related to the applicable products would not meet the required thresholds for payment. The following table sets forth the changes in contingent consideration liabilities for the years ended December 31, 2015 and 2014 (in millions): Balance at December 31, 2013 $ Current period additions Current period adjustments Current period settlements ) Foreign currency effect ) Balance at December 31, 2014 Current period additions Current period adjustments ) Current period settlements ) Foreign currency effect ) Balance at December 31, 2015 $ During the second quarter of 2014, the Company commenced a program to enter into time deposits with varying maturity dates ranging from one to twelve months, as well as call deposits for which the Company has the ability to redeem the invested amounts over a period of 31 to 95 days. The Company has classified these investments within cash and cash equivalents or short-term investments within the consolidated balance sheets based on the call and maturity dates. There are no cash equivalents and $201.2 million of short-term investments outstanding as of December 31, 2015. Short-term investments are classified as available-for-sale and are reported at fair value, with unrealized gains (losses) excluded from earnings and reported, net of tax, in accumulated other comprehensive income (loss) within the accompanying consolidated balance sheets. There were no unrealized gains (losses) recorded as of December 31, 2015 and 2014. 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 years ended December 31, 2015 and 2014. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Receivable | |
Accounts Receivable | Note 5—Accounts Receivable The following is a summary of trade accounts receivable at December 31, (in millions): 2015 2014 Gross accounts receivable $ $ Allowance for doubtful accounts ) ) Accounts receivable, net $ $ The allowance for doubtful accounts is management's estimate of credit losses in the accounts receivable. The allowance for doubtful accounts is based on a number of factors, including an evaluation of customer credit worthiness, the age of the outstanding receivable, economic trends and historical experience. The allowance for doubtful accounts is reviewed on a quarterly basis and changes in estimates are reflected in the period in which they become known. The Company records account balances against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Provisions for doubtful accounts are recorded in selling, general and administrative expenses in the accompanying consolidated statements of income and comprehensive income (loss). The following is a summary of the activity in the Company's allowance for doubtful accounts at December 31, (in millions): Balance at Beginning of Period Additions Charged to Expense Deductions Amounts Written Off Foreign Currency Impact Balance at End of Period 2015 $ $ $ ) $ ) $ 2014 ) ) 2013 ) — |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventories | |
Inventories | Note 6—Inventories Inventories consisted of the following at December 31, (in millions): 2015 2014 Raw materials $ $ Work-in-process Finished goods Demonstration units Inventories $ $ Finished goods include in-transit systems that have been shipped to the Company's customers but not yet installed and accepted by the customer. As of December 31, 2015 and 2014, inventory-in-transit was $44.7 million and $58.6 million, respectively. The Company reduces the carrying value of its demonstration inventories for differences between its cost and estimated net realizable value through a charge to cost of product revenue that is based on a number of factors including the age of the unit, the physical condition of the unit and an assessment of technological obsolescence. Amounts recorded in cost of revenue related to the write-down of demonstration units to net realizable value were $19.4 million, $28.2 million and $32.7 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment, Net | |
Property, Plant and Equipment, Net | Note 7—Property, Plant and Equipment, Net The following is a summary of property, plant and equipment, net by major asset class at December 31, (in millions): 2015 2014 Land $ $ Building and leasehold improvements Machinery, equipment, software and furniture and fixtures Less accumulated depreciation and amortization ) ) Property, plant and equipment, net $ $ Depreciation expense, which includes the amortization of leasehold improvements, for the years ended December 31, 2015, 2014 and 2013 was $32.6 million, $39.5 million and $40.5 million, respectively. During the year ended December 31, 2015, the Company recorded an impairment charge of $2.1 million representing the write down to fair value of certain property, plant and equipment, net in the Bruker BioSpin Group related to restructuring and outsourcing activities during the year. These impairment charges are recorded within "Impairment of assets" in the accompanying consolidated statements of income and comprehensive income (loss). Please see Note 17—Other Charges, net, for additional details on the Bruker BioSpin Group restructuring activities. In July 2014, the Company's Board of Directors approved a plan (the "Plan") to divest certain assets and implement a restructuring program in the former Chemical and Applied Markets (CAM) Division within the Bruker CALID Group. The Plan was developed as a result of management's conclusion that the former CAM business would be unable to achieve acceptable financial performance in the next two years. Please see Note 17—Other Charges, net, for additional details on the Plan. The Company determined the Plan was an indicator requiring the evaluation of property, plant and equipment within that reporting unit for recoverability. The Company performed a valuation during 2014 and determined that the property, plant and equipment within the former CAM Division were impaired. The Company recorded an impairment charge of $5.5 million in the year ended December 31, 2014 to reduce the remaining value of those assets to fair value. In addition, the Company determined, based upon projected cash flows generated by certain assets in the BEST Segment, that an impairment charge of $5.1 million was necessary during the year ended December 31, 2014 to reduce the carrying value of those assets to their estimated fair values. These impairment charges are recorded within "Impairment of assets" in the accompanying consolidated statements of income and comprehensive income (loss). |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | Note 8—Goodwill and Intangible Assets The following table sets forth the changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 (in millions): Balance at December 31, 2013 $ Current period additions Current period adjustments ) Foreign currency impact ) Balance at December 31, 2014 Current period additions Current period adjustments Impairment ) Foreign currency impact ) Balance at December 31, 2015 $ At December 31, 2015 and 2014, all goodwill was allocated within the BSI Segment. The goodwill acquired in 2015 relates to the acquisition of Jordan Valley. The goodwill acquired in 2014 relates to the acquisition of Vutara, Inc., a provider of high-speed, three-dimensional (3D), super-resolution fluorescence microscopy for life science applications. During the year ended December 31, 2015, the Company recorded an impairment charge of $0.7 million representing the impairment of goodwill in the Bruker BioSpin Group related to certain restructuring and outsourcing activities during the year. The Company performed its annual impairment evaluation using a quantitative and qualitative approach at December 31, 2015 and 2014, respectively, and concluded the fair values of each of our reporting units was significantly greater than their carrying amounts, and therefore, no additional impairment was required. The following is a summary of intangible assets at December 31, (in millions): 2015 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Existing technology and related patents $ $ ) $ $ $ ) $ Customer relationships ) ) Non compete conracts ) ) Trade names ) ) — Intangible assets subject to amortization ) ) In-process research and development — — Intangible assets $ $ ) $ $ $ ) $ For the years ended December 31, 2015, 2014 and 2013, the Company recorded amortization expense of approximately $20.7 million, $20.2 million and $20.8 million, respectively, in the consolidated statements of income and comprehensive income (loss). During the year ended December 31, 2015, the Company recorded an impairment charge of $1.8 million representing the impairment of intangible assets in the Bruker BioSpin Group related to certain restructuring and outsourcing activities during the year. During the year ended December 31, 2014, the Company recorded an impairment charge of $0.9 million representing the impairment of intangible assets in the former CAM Division related to the Plan described above. The estimated future amortization expense related to amortizable intangible assets at December 31, 2015 is as follows (in millions): 2016 $ 2017 2018 2019 2020 Thereafter Total $ |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Current Liabilities | |
Other Current Liabilities | Note 9—Other Current Liabilities The following is a summary of other current liabilities at December 31, (in millions): 2015 2014 Deferred revenue $ $ Accrued compensation Accrued warranty Income taxes payable Other taxes payable Derivative liabilities Other accrued expenses Other current liabilities $ $ The following table sets forth the changes in accrued warranty for the years ended December 31, 2015 and 2014 (in millions): Balance at December 31, 2013 $ Accruals for warranties issued during the year Settlements of warranty claims ) Foreign currency impact ) Balance at December 31, 2014 Accruals for warranties issued during the year Settlements of warranty claims ) Foreign currency impact ) Balance at December 31, 2015 $ |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt | |
Debt | Note 10—Debt The Company's debt obligations consist of the following as of December 31, (in millions): 2015 2014 US Dollar revolving loan under the 2015 Agreement $ $ — US Dollar revolving loan under the Amended Credit Agreement — US Dollar notes under the Note Purchase Agreement Capital lease obligations and other loans Total debt Current portion of long-term debt ) ) Total long-term debt, less current portion $ $ In May 2011, the Company entered into an amendment to, and restatement of, its credit agreement, referred to as the Amended Credit Agreement. The Amended Credit Agreement provided a maximum commitment on the Company's revolving credit line of $250.0 million and a maturity date of May 2016. Borrowings under the revolving credit line of the Amended Credit Agreement accrued interest, at the Company's option, at either (a) the greater of (i) the prime rate, (ii) the federal funds rate plus 0.50% and (iii) adjusted LIBOR plus 1.00% or (b) LIBOR, plus margins ranging from 0.80% to 1.65%. There was also a facility fee ranging from 0.20% to 0.35%. The Amended Credit Agreement was repaid in full in October 2015. On October 27, 2015, the Company entered into a new revolving credit agreement, referred to as the 2015 Credit Agreement, and terminated the Amended Credit Agreement. The 2015 Credit Agreement provides a maximum commitment on the Company's revolving credit line of $500 million and a maturity date of October 2020. Borrowings under the revolving credit line of the 2015 Credit Agreement accrue interest, at the Company's option, at either (a) the greater of (i) the prime rate, (ii) the federal funds rate plus 0.50% and (iii) adjusted LIBOR plus 1.00%, plus margins ranging from 0.00% to 0.30% or (b) LIBOR, plus margins ranging from 0.90% to 1.30%. There is also a facility fee ranging from 0.10% to 0.20%. Borrowings under the 2015 Credit Agreement are secured by guarantees from certain material subsidiaries, as defined in the 2015 Credit Agreement. The 2015 Credit Agreement also requires the Company to maintain certain financial ratios related to maximum leverage and minimum interest coverage (as defined in the 2015 Credit Agreement). Specifically, the Company's leverage ratio cannot exceed 3.5 and the Company's interest coverage ratio cannot be less than 2.5. In addition to the financial ratios, the 2015 Credit Agreement contains negative covenants, including among others, restrictions on liens, indebtedness of the Company and its subsidiaries, asset sales, dividends and transactions with affiliates. Failure to comply with any of these restrictions or covenants may result in an event of default on the 2015 Credit Agreement, which could permit acceleration of the debt and require the Company to prepay the debt before its scheduled due date. As of December 31, 2015, the Company was in compliance with the covenants of the 2015 Credit Agreement. The Company's leverage ratio (as defined in the 2015 Credit Agreement) was 1.0 and interest coverage ratio (as defined in the 2015 Credit Agreement) was 14.9. The following is a summary of the maximum commitments and the net amounts available to the Company at December 31, 2015 (in millions): Weighted Average Interest Rate Total Amount Committed by Lenders Outstanding Borrowings Outstanding Letters of Credit Total Amount Available 2015 Credit Agreement % $ $ $ $ Other lines of credit — — Total revolving loans $ $ $ $ Other lines of credit are with various financial institutions located primarily in Germany and Switzerland. The Company's other revolving lines of credit are unsecured and typically due upon deman d with interest payable monthly . In January 2012, the Company entered into a note purchase agreement, referred to as the Note Purchase Agreement, with a group of accredited institutional investors. Pursuant to the Note Purchase Agreement, the Company issued and sold $240.0 million of senior notes, referred to as the Senior Notes, which consist of the following: • $20 million 3.16% Series 2012A Senior Notes, Tranche A, due January 18, 2017; • $15 million 3.74% Series 2012A Senior Notes, Tranche B, due January 18, 2019; • $105 million 4.31% Series 2012A Senior Notes, Tranche C, due January 18, 2022; and • $100 million 4.46% Series 2012A Senior Notes, Tranche D, due January 18, 2024. Under the terms of the Note Purchase Agreement, the Company may issue and sell additional senior notes up to an aggregate principal amount of $600 million, subject to certain conditions. Interest on the Senior Notes is payable semi-annually on January 18 and July 18 of each year. The Senior Notes are unsecured obligations of the Company and are fully and unconditionally guaranteed by certain of the Company's direct and indirect subsidiaries. The Senior Notes rank pari passu in right of repayment with the Company's other senior unsecured indebtedness. The Company may prepay some or all of the Senior Notes at any time in an amount not less than 10% of the original aggregate principal amount of the Senior Notes to be prepaid, at a price equal to the sum of (a) 100% of the principal amount thereof, plus accrued and unpaid interest, and (b) the applicable make-whole amount, upon not less than 30 and no more than 60 days written notice to the holders of the Senior Notes. In the event of a change in control of the Company, as defined in the Note Purchase Agreement, the Company may be required to prepay the Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. The Note Purchase Agreement contains affirmative covenants, including, without limitation, maintenance of corporate existence, compliance with laws, maintenance of insurance and properties, payment of taxes, addition of subsidiary guarantors and furnishing notices and other information. The Note Purchase Agreement also contains certain restrictive covenants that restrict the Company's ability to, among other things, incur liens, transfer or sell assets, engage in certain mergers and consolidations and enter into transactions with affiliates. The Note Purchase Agreement also includes customary representations and warranties and events of default. In the case of an event of default arising from specified events of bankruptcy or insolvency, all outstanding Senior Notes will become due and payable immediately without further action or notice. In the case of payment events of defaults, any holder of Senior Notes affected thereby may declare all Senior Notes held by it due and payable immediately. In the case of any other event of default, a majority of the holders of the Senior Notes may declare all the Senior Notes to be due and payable immediately. Pursuant to the Note Purchase Agreement, so long as any Senior Notes are outstanding the Company will not permit (i) its leverage ratio, as determined pursuant to the Note Purchase Agreement, as of the end of any fiscal quarter to exceed 3.50 to 1.00, (ii) its interest coverage ratio as determined pursuant to the Note Purchase Agreement as of the end of any fiscal quarter for any period of four consecutive fiscal quarters to be less than 2.50 to 1 or (iii) priority debt at any time to exceed 25% of consolidated net worth, as determined pursuant to the Note Purchase Agreement. As of December 31, 2015, the Company was in compliance with the covenants of the Note Purchase Agreement. The Company's leverage ratio (as defined in the Note Purchase Agreement) was 1.0 and interest coverage ratio (as defined in the Note Purchase Agreement) was 14.9. Annual maturities of debt outstanding at December 31, 2015 are as follows (in millions): 2016 $ 2017 2018 2019 2020 Thereafter Total $ Interest expense for the years ended December 31, 2015, 2014 and 2013, was $13.0 million, $13.3 million and $13.4 million, respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | Note 11—Derivative Instruments and Hedging Activities Interest Rate Risks The Company's exposure to interest rate risk relates primarily to outstanding variable rate debt and adverse movements in the related short-term market rates. The most significant component of the Company's interest rate risk relates to amounts outstanding under the 2015 Credit Agreement, which totaled $25.0 million at December 31, 2015. The Company currently has a higher level of fixed rate debt than variable rate debt, which limits the exposure to adverse movements in interest rates. Foreign Exchange Rate Risk Management The Company generates a substantial portion of its revenues and expenses in international markets, principally Germany and other countries in the European Union, Switzerland and Japan, which subjects its operations to the exposure of exchange rate fluctuations. The impact of currency exchange rate movement can be positive or negative in any period. The Company periodically enters into foreign currency contracts in order to minimize the volatility that fluctuations in currency translation have on its monetary transactions. Under these arrangements, the Company typically agrees to purchase a fixed amount of a foreign currency in exchange for a fixed amount of U.S. Dollars or other currencies on specified dates with maturities of less than twelve months. These transactions do not qualify for hedge accounting and, accordingly, the instrument is recorded at fair value with the corresponding gains and losses recorded in the consolidated statements of income and comprehensive income (loss). The Company had the following notional amounts outstanding under foreign currency contracts at December 31, (in millions): Buy Notional Amount in Buy Currency Sell Maturity Notional Amount in U.S. Dollars Fair Value of Assets Fair Value of Liabilities December 31, 2015: Euro U.S. Dollars January 2016 $ $ — $ Swiss Francs U.S. Dollars April 2016 — U.S. Dollars Israel Shekel April 2016 — — $ $ — $ December 31, 2014: Euro U.S. Dollars January 2015 to September 2015 $ $ — $ U.S. Dollars Euro February 2015 to December 2015 — — Euro British Pounds January 2015 to June 2015 — — Yen Euro March 2015 — — Swiss Francs U.S. Dollars January 2015 — $ $ — $ 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 $59.0 million for the delivery of products and $4.1 million for the purchase of products at December 31, 2015 and $41.1 million for the delivery of products and $8.7 million for the purchase of products at December 31, 2014. 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 (loss). Commodity Price Risk Management The Company has an arrangement with a customer 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. At December 31, 2015 and 2014, the Company has fixed price commodity contracts with notional amounts aggregating $2.0 million and $2.7 million, respectively. The changes in the fair value of these commodity contracts are recorded in interest and other income (expense), net in the consolidated statements of income and comprehensive income (loss). The fair value of the derivative instruments described above are recorded in the consolidated balance sheets for the years ended December 31, 2015 and 2014 as follows (in millions): Balance Sheet Location 2015 2014 Derivative assets: Embedded derivatives in purchase and delivery contracts Other current assets $ $ Derivative liabilities: Foreign exchange contracts Other current liabilities $ $ Embedded derivatives in purchase and delivery contracts Other current liabilities Fixed price commodity contracts Other current liabilities The impact on net income of unrealized gains and losses resulting from changes in the fair value of derivative instruments for the years ending December 31 are as follows (in millions) and are recorded within interest and other income (expense), net in the consolidated statements of income and comprehensive income (loss): 2015 2014 2013 Foreign exchange contracts $ $ ) $ Embedded derivatives in purchase and delivery contracts ) ) Fixed price commodity contracts ) ) Income (expense), net $ $ ) $ |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | |
Income Taxes | Note 12—Income Taxes The domestic and foreign components of income before taxes are as follows for the years ended December 31, (in millions): 2015 2014 2013 Domestic $ $ ) $ ) Foreign $ $ $ The components of the income tax provision are as follows for the years ended December 31, (in millions): 2015 2014 2013 Current income tax (benefit) expense: Federal $ $ ) $ State Foreign Total current income tax expense Deferred income tax (benefit) expense: Federal ) ) State ) ) ) Foreign ) ) Total deferred income tax (benefit) expense ) ) Income tax provision $ $ $ The income tax provision differs from the tax provision computed at the U.S federal statutory rate due to the following significant components for the years ended December 31,: 2015 2014 2013 Statutory tax rate % % % Foreign tax rate differential ) ) ) Permanent differences ) Tax contingencies ) ) Change in tax rates ) Withholding taxes State income taxes, net of federal benefits ) Purchase accounting Tax credits ) ) ) Other ) ) Change in valuation allowance for unbenefited losses ) Effective tax rate % % % The tax effect of temporary items that give rise to significant portions of the deferred tax assets and liabilities are as follows as of December 31, (in millions): 2015 2014 Deferred tax assets: Accounts receivable $ $ Accrued expenses Compensation Investments Deferred revenue Net operating loss carryforwards Fixed assets — Inventory — Foreign tax and other tax credit carryforwards Unrealized currency gain/loss Warranty reserve — Other Gross deferred tax assets Less valuation allowance ) ) Total deferred tax assets Deferred tax liabilities: Accounts receivable Fixed assets — Foreign statutory reserves Investments — Inventory — Intangibles Accrued expenses — Total deferred tax liabilities Net deferred tax assets $ $ The Company uses the liability method to account for income taxes. Under this method, deferred income taxes are recognized for the future tax consequences of differences between the tax and financial accounting bases of assets and liabilities at each reporting period. Deferred income taxes are based on enacted tax laws and statutory tax rates applicable to the period in which these differences are expected to affect taxable income. A valuation allowance is established when necessary to reduce deferred tax assets to the expected realized amounts. The Company can only recognize a deferred tax asset to the extent this it is "more likely than not" that these assets will be realized. Judgments around realizability depend on the availability and weight of both positive and negative evidence. After considering all available evidence at December 31, 2015 the Company established valuation allowances against a portion of its deferred tax assets in the U.S. and certain other jurisdictions as it is more likely than not that these assets will not be realized. In particular, the Company recorded a partial valuation allowance against its U.S. net deferred tax assets, which was comprised of deductible temporary differences and tax credit carryforwards. In determining the realizability of these assets, the Company considered numerous factors including historical profitability, the character and amount of estimated future taxable income and prudent and feasible tax planning strategies. The Company's valuation allowance at December 31, 2015 decreased $20.1 million as compared to December 31, 2014, including a reduction to the beginning of the year valuation allowance of $20.8 million, to account for a change in judgment with respect to the realizability of the Company's U.S. deferred tax assets. This decrease was primarily attributable to U.S. net operating loss and foreign tax credit usage as a result of the repatriation of $235.3 million of foreign earnings to the United States during 2015 prompted by adverse interest rate conditions in Europe that were unfavorably impacting cash balances. Among the evidence supporting the Company's conclusion around realizability of these deferred tax assets was the elimination of recent cumulative U.S. losses as well as expected future near term U.S. taxable income. As of December 31, 2015, the Company had approximately $3.0 million of net operating loss carryforwards available to reduce state taxable income; approximately $42.4 million of German Trade Tax net operating losses that are carried forward indefinitely; and $42.9 million of other foreign net operating losses that are expected to expire at various times beginning in 2018. The Company also had U.S. federal tax credits of approximately $27.8 million available to offset future tax liabilities that expire at various dates, which include research and development tax credits of $14.0 million expiring at various times through 2034, foreign tax credits of $13.8 million expiring at various times through 2024, and state research and development tax credits of $7.1 million. Utilization of these credits and state net operating losses may be subject to annual limitations due to the ownership percentage change limitations provided by the Internal Revenue Code Section 382 and similar state provisions. In the event of a deemed change in control under Internal Revenue Code Section 382, an annual limitation on the utilization of net operating losses and credits may result in the expiration of all or a portion of the net operating loss and credit carryforwards. The Company reflects certain foreign statutory reserves in its tabular reconciliation of unrecognized tax benefits. These unrecognized tax benefits are presented as a reduction of the associated net deferred tax assets. The Company has indefinitely reinvested the earnings of its subsidiaries in the cumulative amount of approximately $1,456.1 million as of December 31, 2015, and therefore, has not provided for U.S. income taxes that could result from the distribution of such earnings to the U.S. parent. If these earnings were ultimately distributed to the U.S. in the form of dividends or otherwise, or if the shares of the subsidiaries were sold or transferred, the Company would likely be subject to additional U.S. income taxes, net of the impact of any available foreign tax credits. The Company estimates the amount of unrecognized deferred U.S. income taxes on these undistributed earnings to be approximately $120 million. The Company has gross unrecognized tax benefits, excluding interest, of approximately $26.9 million as of December 31, 2015, of which $13 million, if recognized, would reduce the Company's effective tax rate. In the next twelve months it is reasonably possible that the Company will reduce its unrecognized tax benefits by $5.2 million due to statutes of limitations expiring and favorably settling with taxing authorities which would reduce the Company's effective tax rate. A tabular reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Gross unrecognized tax benefits at December 31, 2012 $ Gross decreases—tax positions in prior periods ) Gross increases—current period tax positions Settlements ) Lapse of statutes ) Gross unrecognized tax benefits at December 31, 2013 Gross decreases—tax positions in prior periods ) Gross decreases—current period tax positions ) Settlements ) Lapse of statutes ) Gross unrecognized tax benefits at December 31, 2014 Gross decreases—tax positions in prior periods ) Gross increases—current period tax positions Settlements ) Lapse of statutes ) Gross unrecognized tax benefits at December 31, 2015 $ The Company's policy is to include accrued interest and penalties related to unrecognized tax benefits and income tax liabilities, when applicable, in income tax expense. As of December 31, 2015 and 2014, the Company had approximately $4.7 million and $3.6 million, respectively, of accrued interest and penalties related to uncertain tax positions included in other long-term liabilities in the consolidated balance sheets. Penalties and interest related to unrecognized tax benefits of $1.4 million and $0.1 million were recorded in the provision for income taxes during the year ended December 31, 2015 and 2014, respectively. The Company files tax returns in the U.S., which include federal, state and local jurisdictions and many foreign jurisdictions with varying statutes of limitations. The Company considers Germany, the U.S. and Switzerland to be its significant tax jurisdictions. The tax years 2009 to 2014 are open tax years in these significant foreign jurisdictions. In the first quarter of 2014, the Company settled a tax audit in the U.S. for the tax year 2010. In the third quarter of 2015, the Company settled tax audits in Germany and Italy. The settlement was immaterial to the consolidated financial statements. Tax years 2011 to 2014 remain open for examination in the U.S. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans | |
Employee Benefit Plans | Note 13—Employee Benefit Plans Defined Benefit Plans Substantially all of the Company's employees in Switzerland, France and Japan, as well as certain employees in Germany, are covered by Company-sponsored defined benefit pension plans. Retirement benefits are generally earned based on years of service and compensation during active employment. Eligibility is generally determined in accordance with local statutory requirements, however, the level of benefits and terms of vesting varies among plans. Net Periodic Pension Cost The components of net periodic benefit costs for the years ended December 31, 2015, 2014 and 2013 were as follows: 2015 2014 2013 Components of net periodic benefit costs: Service cost $ $ $ Interest cost Expected return on plan assets ) ) ) Settlement loss recognized — — Amortization of net loss Net periodic benefit costs $ $ $ The net periodic benefit costs for the year ended December 31, 2015 includes a one-time, non-cash settlement loss of $10.2 million as the Company outsourced its pension plan in Switzerland to an outside insurance provider, transferred certain plan assets and pension obligations for retirees and other certain members of the population, made certain plan design changes and re-measured the liability. The Company measures its benefit obligation and the fair value of plan assets as of December 31st each year. The changes in benefit obligations and plan assets under the defined benefit pension plans, projected benefit obligation and funded status of the plans were as follows at December 31, (in millions): 2015 2014 Change in benefit obligation: Benefit obligation at beginning of year $ $ Service cost Interest cost Plan participant contributions Plan curtailments ) ) Benefits paid ) Actuarial loss (gain) Plan amendments — Plan settlements ) — Premiums paid ) — Plan combinations — Impact of foreign currency exchange rates ) ) Benefit obligation at end of year Change in plan assets: Fair value of plan assets at beginning of year Return on plan assets ) Plan participant and employer contributions Benefits paid ) Plan settlements ) — Premiums paid ) — Plan combinations — Impact of foreign currency exchange rates ) Fair value of plan assets at end of year Net funded status $ ) $ ) The accumulated benefit obligation for the defined benefit pension plans is $189.7 million and $198.4 million at December 31, 2015 and 2014, respectively. All defined benefit pension plans have an accumulated benefit obligation and projected benefit obligation in excess of plan assets at December 31, 2015 and 2014. The following amounts were recognized in the accompanying consolidated balance sheets for the Company's defined benefit plans at December 31, (in millions): 2015 2014 Current liabilities $ ) $ ) Non-current liabilities ) ) Net benefit obligation $ ) $ ) The following pre-tax amounts were recognized in accumulated other comprehensive income (loss) for the Company's defined benefit plans at December 31, (in millions): 2015 2014 Reconciliation of amounts recognized in the consolidated balance sheets: Prior service cost $ ) $ — Net actuarial loss ) ) Accumulated other comprehensive loss ) ) Accumulated contributions in excess of net periodic benefit cost ) ) Net amount recognized $ ) $ ) The amount in accumulated other comprehensive income (loss) at December 31, 2015 expected to be recognized as amortization of net loss within net periodic benefit cost in 2016 is $4.1 million. For the defined benefit pension plans, the Company uses a corridor approach to amortize actuarial gains and losses. Under this approach, net actuarial gains or losses in excess of ten percent of the larger of the projected benefit obligation or the fair value of plan assets are amortized over the average remaining service of active participants who are expected to receive benefits under the plans. The range of assumptions used for defined benefit pension plans reflects the different economic environments within the various countries. The range of assumptions used to determine the projected benefit obligations for the years ended December 31, are as follows: 2015 2014 2013 Discount rates 0.3%-2.5% 0.7%-2.4% 0.7%-3.8% Expected return on plan assets 0.0%-3.0% 2.9% 3.0% Expected rate of compensation increase 1.0%-3.0% 1.0%-3.0% 1.0%-3.0% To determine the expected long-term rate of return on pension plan assets, the Company considers current asset allocations, as well as historical and expected returns on various asset categories of plan assets. For the defined benefit pension plans, the Company applies the expected rate of return to a market-related value of assets, which stabilizes variability in assets to which the expected return is applied. Asset Allocations by Asset Category The fair value of the Company's pension plan assets at December 31, 2015 and 2014, by asset category and by level in the fair value hierarchy, is as follows (in millions): December 31, 2015 Total Quoted Prices in Active Markets Available (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Plan Assets: Debt securities: Foreign corporations (b) $ $ $ — $ — Foreign governments (b) — — — — Equity Securities: Foreign corporations (c) — — — — Real estate (d) — — Swiss Life Collective BVG Foundation (f) — — Total plan assets $ $ $ $ — December 31, 2014 Total Quoted Prices in Active Markets Available (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Plan Assets: Cash and cash equivalents (a) $ $ $ — $ — Debt securities: Foreign corporations (b) — — Foreign governments (b) — — — — Equity Securities: Foreign corporations (c) — — — — Real estate (d) — — Other (e) — — Total plan assets $ $ $ — $ — (a) Cash and cash equivalents consist primarily of highly liquid investments, including cash on hand. (b) Foreign Corporate and Government bond investments had an average rating of AA. ( c ) International equities primarily include investments in large market capitalization stocks. (d) Real estate includes Swiss public real estate funds which generate returns in line with the Swiss property market by investing in residential and commerical properties throughout Switzerland. (e) Includes private equity, raw materials and alternative investment funds. (f) The Company's pension plan in Switzerland is outsourced to Swiss Life AG, an outside insurance provider. Under the insurance contract, the plan assets are invested in Swiss Life Collective BVG Foundation (the Foundation), which is an umbrella fund for which the retirement savings and interest rates are guaranteed a minimum of 1.75% on the mandatory withdrawal portion, as defined by Swiss law, and 1.25% on the non-mandatory portion. The Foundation utilizes plan administrators and investment managers to oversee the investment allocation process, set long-term strategic targets and monitor asset allocations. The target allocations are 75% bonds, including cash, 5% equity investments and 20% real estate and mortgages. Should the Foundation yield a return greater than the guaranteed amounts, the Company, according to Swiss law, shall receive 90% of the additional return with Swiss Life AG retaining 10%. The withdrawal benefits and interest allocations are secured at all times by Swiss Life AG. Contributions and Estimated Future Benefit Payments During 2016, the Company expects contributions to be consistent with 2015. The estimated future benefit payments are based on the same assumptions used to measure the Company's benefit obligation at December 31, 2015. The following benefit payments reflect future employee service as appropriate (in millions): 2016 $ 2017 2018 2019 2020 2021-2025 Other Benefit Plans The Company sponsors various defined contribution plans that cover certain domestic and international employees. The Company may make contributions to these plans at its discretion. The Company contributed $6.5 million, $7.1 million and $5.3 million to such plans in the years ended December 31, 2015, 2014 and 2013, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 14—Commitments and Contingencies Operating Leases Certain buildings, office equipment and vehicles are leased under agreements that are accounted for as operating leases. Total rental expense under operating leases was $23.0 million, $22.8 million and $24.6 million during the years ended December 31, 2015, 2014 and 2013, respectively. Future minimum lease payments under non-cancelable operating leases at December 31, 2015, for each of the next five years and thereafter are as follows (in millions): 2016 $ 2017 2018 2019 2020 Thereafter Total $ Capital Leases The Company leases certain buildings under agreements that are classified as capital leases. The cost of the buildings under the capital leases is included in the consolidated balance sheets as property, plant and equipment and was $2.7 million and $7.5 million at December 31, 2015 and 2014. Accumulated amortization of the leased buildings at December 31, 2015 and 2014 was $0.7 million and $2.9 million, respectively. Amortization expense related to assets under capital leases is included in depreciation expense. The obligations related to capital leases are recorded as a component of long-term debt or the current portion of long-term debt in the consolidated balance sheets, depending on when the lease payments are due. Unconditional Purchase Commitments The Company has entered into unconditional purchase commitments, in the ordinary course of business, that include agreements to purchase goods, services or fixed assets and to pay royalties that are enforceable and legally binding and that specify all significant terms including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Purchase commitments exclude agreements that are cancelable at any time without penalty. The aggregate amount of the Company's unconditional purchase commitments totaled $109.5 million at December 31, 2015 and the majority of these commitments are expected to be settled during 2016. License Agreements The Company has entered into cross-licensing agreements for various technologies that allow other companies to utilize certain of its patents and related technologies over various periods or into perpetuity. Income from these agreements for the years ended December 31, 2015, 2014 and 2013 was $2.5 million, $2.6 million and $9.5 million, respectively, and is classified in other revenue in the consolidated statements of income and comprehensive income (loss). The unearned portions of proceeds from the cross-licensing agreements are classified as short-term or long-term deferred revenue depending on when the revenue will be earned. The Company has also entered into license agreements allowing it to utilize certain patents. If these patents are used in connection with a commercial product sale, the Company pays royalties on the related product revenues. Licensing fees for the years ended December 31, 2015, 2014 and 2013, were $3.2 million, $3.3 million and $4.0 million, respectively, and are recorded in cost of product revenue in the consolidated statements of income and comprehensive income (loss). Legal Lawsuits, claims and proceedings of a nature considered normal to its businesses may be pending from time to time against the Company. The Company believes the outcome of pending proceedings, individually and in the aggregate, will not have a material impact on the Company's financial position or results of operations. As of December 31, 2015 and 2014, no accruals have been recorded for potential contingencies. Internal Investigation and Compliance Matters As previously reported, the Audit Committee of the Company's Board of Directors, assisted by independent outside counsel and an independent forensic consulting firm, conducted an internal investigation in response to anonymous communications received by the Company alleging improper conduct in connection with the China operations of the Company's Bruker Optics subsidiary. The Audit Committee's investigation, which began in 2011 and was completed in the first quarter of 2012, included a review of compliance by Bruker Optics and its employees in China and Hong Kong with the requirements of the Foreign Corrupt Practices Act ("FCPA") and other applicable laws and regulations. The investigation found evidence indicating that payments were made that improperly benefited employees or agents of government-owned enterprises in China and Hong Kong. The investigation also found evidence that certain employees of Bruker Optics in China and Hong Kong failed to comply with the Company's policies and standards of conduct. As a result, the Company took personnel actions, including the termination of certain individuals. The Company also terminated its business relationships with certain third party agents, implemented an enhanced FCPA compliance program, and strengthened the financial controls and oversight at its subsidiaries operating in China and Hong Kong. During 2011, the Company also initiated a review of the China operations of its other subsidiaries, with the assistance of an independent audit firm. On the basis of that review, the Company identified additional employees in Bruker subsidiaries operating in China who failed to comply with the Company's policies and standards of conduct, and took additional personnel actions at certain of its subsidiaries as a result. The Company voluntarily contacted the United States Securities and Exchange Commission and the United States Department of Justice in August 2011 to advise both agencies of the internal investigation by the Audit Committee regarding the China operations of the Company's Bruker Optics subsidiary. In October 2011, the Company also reported that existence of the internal investigation to the Hong Kong Joint Financial Intelligence Unit and Independent Commission Against Corruption. Effective December 15, 2014, the Company consented to the entry of an administrative cease-and-desist order (Order) by the SEC concerning violations of the books and records and internal controls provisions of the FCPA. Pursuant to the Order, the Company paid an aggregate amount of $2.4 million, consisting of $1.7 million in disgorgement, $0.3 million in prejudgment interest, and a $0.4 million penalty. This was recorded within interest and other income (expense), net in the accompanying consolidated statements of income and comprehensive income (loss). The Company has been advised that all investigative matters have been completed as of December 31, 2014. Letters of Credit and Guarantees At December 31, 2015 and 2014, the Company had bank guarantees of $137.7 million and $150.3 million, respectively, related primarily to customer advances. These arrangements guarantee the refund of advance payments received from customers in the event that the merchandise is not delivered or warranty obligations are not fulfilled in compliance with the terms of the contract. These guarantees affect the availability of the Company's lines of credit. Indemnifications The Company enters into standard indemnification arrangements in the Company's ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, generally the Company's business partners or customers, in connection with any patent, or any copyright or other intellectual property infringement claim by any third party with respect to its products. The term of these indemnification agreements is generally perpetual anytime after the execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these agreements is unlimited. The Company believes the estimated fair value of these agreements is minimal based on historical experiences. The Company has entered into indemnification agreements with its directors and officers that may require the Company to: indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of a culpable nature; advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified; and obtain directors' and officers' insurance if available on reasonable terms, which the Company currently has in place. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders' Equity | |
Shareholders' Equity | Note 15—Shareholders' Equity Bruker Corporation Stock Plan In February 2010, the Bruker BioSciences Corporation Amended and Restated 2000 Stock Option Plan, or the 2000 Plan, expired at the end of its scheduled ten-year term. On March 9, 2010, the Company's Board of Directors unanimously approved and adopted the Bruker Corporation 2010 Incentive Compensation Plan, or the 2010 Plan, and on May 14, 2010, the 2010 Plan was approved by the Company's stockholders. The 2010 Plan provides for the issuance of up to 8,000,000 shares of the Company's common stock. The Plan allows a committee of the Board of Directors (the "Committee") to grant incentive stock options, non-qualified stock options and restricted stock awards. The Committee has the authority to determine which employees will receive the awards, the amount of the awards and other terms and conditions of the award. Awards granted by the Committee typically vest over a period of three to five years. Stock option activity for the year ended December 31, 2015 was as follows: Shares Subject to Options Weighted Average Option Price Weighted Average Remaining Contractual Term (Yrs) Aggregate Intrinsic Value (in millions) (b) Outstanding at December 31, 2014 $ Granted Exercised ) Forfeited ) Outstanding at December 31, 2015 $ $ Exercisable at December 31, 2015 $ $ Exercisable and expected to vest at December 31, 2015 (a) $ $ (a) In addition to the options that are vested at December 31, 2015, the Company expects a portion of the unvested options to vest in the future. Options expected to vest in the future are determined by applying an estimated forfeiture rate to the options that are unvested as of December 31, 2015. (b) The aggregate intrinsic value is based on the positive difference between the fair value of the Company's common stock price of $24.27 on December 31, 2015, or the date of exercises, as appropriate, and the exercise price of the underlying stock options. The weighted average fair values of options granted was $7.82, $10.81 and $10.37 per share for the years ended December 31, 2015, 2014 and 2013, respectively. The total intrinsic value of options exercised was $8.2 million, $10.0 million and $8.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. Unrecognized pre-tax stock-based compensation expense of $16.7 million related to stock options awarded under the 2010 Plan is expected to be recognized over the weighted average remaining service period of 2.2 years for stock options outstanding at December 31, 2015. Restricted shares of the Company's common stock are periodically awarded to executive officers, directors and certain key employees of the Company, subject to service restrictions, which vest ratably over periods of four to five years. The restricted shares of common stock may not be sold or transferred during the restriction period. Stock-based compensation for restricted stock is recorded based on the stock price on the grant date and charged to expense ratably throughout the restriction period. The following table summarizes information about restricted stock activity during the year ended December 31, 2015: Shares Subject to Restriction Weighted Average Grant Date Fair Value Outstanding at December 31, 2014 $ Granted Vested ) Forfeited ) Outstanding at December 31, 2015 $ The total fair value of restricted stock vested was $1.0 million, $3.0 million and $1.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. Unrecognized pre-tax stock-based compensation expense of $3.9 million related to restricted stock awarded under the 2010 Plan is expected to be recognized over the weighted average remaining service period of 2.8 years for awards outstanding at December 31, 2015. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | Note 16—Accumulated Other Comprehensive Income (Loss) The following is a summary of the components of accumulated other comprehensive income (loss), net of tax, at December 31, (in millions): Foreign Currency Translation Pension Liability Adjustment Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2012 $ $ ) $ Other comprehensive income Realized loss on reclassification — Balance at December 31, 2013 ) Other comprehensive income (loss) ) ) ) Realized loss on reclassification — Balance at December 31, 2014 ) Other comprehensive income (loss) ) ) ) Realized loss on reclassification — Balance at December 31, 2015 $ $ ) $ ) |
Other Charges, Net
Other Charges, Net | 12 Months Ended |
Dec. 31, 2015 | |
Other Charges, Net | |
Other Charges, Net | Note 17—Other Charges, Net The components of other charges, net for the years ended December 31, 2015, 2014 and 2013, were as follows (in millions): 2015 2014 2013 Acquisition-related expenses (income), net $ ) $ $ Professional fees incurred in connection with internal investigation Pension settlement charge — — Information technology transformation costs — Restructuring charges Factory relocation charges — — Other charges, net $ $ $ In 2013, 2014 and 2015, the Company commenced and executed productivity improvement initiatives at both BSI and BEST in an effort to better optimize its operations. These restructuring initiatives include the divestiture of certain non-core businesses, outsourcing of various manufacturing activities, transferring or ceasing operations at certain facilities and an overall right-sizing within the Company based on the then current business environments. The Company recorded total restructuring charges during the year ended December 31, 2015, 2014 and 2013 of $29.3 million, $36.1 million and $25.3 million, respectively, related to these initiatives. For the year ended December 31, 2015, restructuring charges of $28.4 million related to the BSI Segment and of $0.9 million related to the BEST Segment. These charges consisted of $7.0 million of inventory provisions for excess inventory, $15.9 million of severance costs and $6.4 million of exit related costs, such as professional service and facility exit charges. For the year ended December 31, 2014, the charges were all within the BSI Segment and consisted of $11.8 million of inventory provisions for excess inventory, $15.5 million of severance costs and $8.8 million of exit related costs. For the year ended December 31, 2013, $23.0 million related to the BSI Segment and $2.3 million related to the BEST Segment, and consisted of $2.1 million of inventory provisions for excess inventory, $17.9 million of severance costs and $5.3 million of exit related costs. During the year ended December 31, 2015, 2014 and 2013, the Company recorded restructuring charges of $21.2 million, $25.0 million and $7.1 million, respectively, as a component of Cost of Revenue, and $8.1 million, $11.1 million and $18.2 million, respectively, as a component of Other Charges, net in the accompanying consolidated statements of income and comprehensive income (loss). The Company commenced a restructuring initiative in 2015 within the Bruker BioSpin Group, which was developed as a result of a revenue decline that occurred during the second half of 2014 and continued during the first half of 2015. This initiative is intended to improve Bruker BioSpin Group's operating results. Restructuring actions are expected to result in a reduction of employee headcount within the Bruker BioSpin Group of approximately 9%. Included in the total restructuring charges discussed above are restructuring expenses related to this initiative recorded during the year ended December 31, 2015 in the amount of $14.1 million, consisting of $2.1 million for inventory write-downs and $12.0 million of severance and exit costs, of which $12.3 was recorded as a component of Cost of Revenue and $1.8 million as a component of Other Charges, net in the accompanying consolidated statement of income and comprehensive income (loss). The restructuring also includes the closure and consolidation of certain Bruker BioSpin manufacturing facilities. The Company determined the restructuring was an indicator requiring the evaluation of property, plant and equipment for recoverability. The Company performed an evaluation during the year ended December 31, 2015 and determined that certain property, plant and equipment were impaired and recorded an impairment charge of $2.1 million to reduce those assets to fair value. This impairment charge is recorded within "Impairment of assets" in the accompanying consolidated statement of income and comprehensive income (loss) for the year ended December 31, 2015. Total restructuring and other one-time charges related to this initiative continuing into 2016 are expected to be between $3 and $5 million, which all relate to employee separation and facility exit costs. Included in the total restructuring charges are expenses specifically related to the Plan in the former CAM Division. From inception of the Plan in the third quarter of 2014, cumulative restructuring expenses recorded have been $18.8 million, consisting of $10.3 million of inventory write-downs and $8.5 million of severance and exit costs. Expenses expected to be incurred under the 2014 Plan have been substantially completed during the year ended December 31, 2015. In addition, in September and October 2014 the Company divested the assets of the former CAM Division's Inductively Coupled Plasma-Mass Spectrometry (ICP-MS) product line and the Gas Chromatography (GC) and GC single-quadrupole (GC-SQ) GC-MS mass spectrometry products, respectively. The gain on sale of the product lines of $8.0 million was recorded as part of Interest and Other Income (Expense), net within the accompanying consolidated statement of income and comprehensive income (loss) for the year ended December 31, 2014. The following table sets forth the changes in the restructuring reserves for the years ended December 31, 2015 and 2014 (in millions): Total Severance Exit Costs Provisions for Excess Inventory Balance at December 31, 2013 $ $ $ $ Restructuring charges Cash payments ) ) ) ) Non-cash adjustments ) ) ) ) Foreign currency impact ) ) ) ) Balance at December 31, 2014 Restructuring charges Cash payments ) ) ) ) Non-cash adjustments ) ) ) ) Foreign currency impact ) ) — ) Balance at December 31, 2015 $ $ $ $ |
Interest and Other Income (Expe
Interest and Other Income (Expense), Net | 12 Months Ended |
Dec. 31, 2015 | |
Interest and Other Income (Expense), Net | |
Interest and Other Income (Expense), Net | Note 18—Interest and Other Income (Expense), Net The components of interest and other income (expense), net for the years ended December 31, 2015, 2014 and 2013, were as follows (in millions): 2015 2014 2013 Interest income $ $ $ Interest expense ) ) ) Exchange losses on foreign currency transactions ) ) ) (Loss) gain on disposal of product line ) Other ) ) Interest and other income (expense), net $ ) $ ) $ ) |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Business Segment Information | |
Business Segment Information | Note 19—Business Segment Information The Company has two reportable segments, BSI and BEST, as discussed in Note 1 to the consolidated financial statements. Selected business segment information is presented below for the years ended December 31, (in millions): 2015 2014 2013 Revenue: BSI $ $ $ BEST Eliminations (a) ) ) ) Total revenue $ $ $ Operating Income (Loss): BSI $ $ $ BEST Corporate, eliminations and other (b) ) Total operating income $ $ $ (a) Represents product and service revenue between reportable segments. (b) Represents corporate costs and eliminations not allocated to the reportable segments. The Company recorded an impairment charge of $4.6 million for the year ended December 31, 2015 within the BSI Segment. The Company recorded an impairment charge of $11.5 million for the year ended December 31, 2014, of which $6.4 million was within the BSI Segment and $5.1 million within the BEST Segment. Please see Note 7—Property, Plant and Equipment, net and Note 8—Goodwill and Other Intangible Assets, for description of impairment charges recorded in 2015 and 2014. These impairment charges are included within "Impairment of assets" in the accompanying consolidated statements of income and comprehensive income (loss). Total assets by segment as of and for the years ended December 31, are as follows (in millions): 2015 2014 Assets: BSI $ $ BEST Eliminations and other (a) ) ) Total assets $ $ (a) Assets not allocated to the reportable segments and eliminations of intercompany transactions. Total capital expenditures and depreciation and amortization by segment are presented below for the years ended December 31, (in millions): 2015 2014 2013 Capital Expenditures: BSI $ $ $ BEST Total capital expenditures $ $ $ Depreciation and Amortization: BSI $ $ $ BEST Total depreciation and amortization $ $ $ Revenue and property, plant and equipment, net by geographical area as of and for the year ended December 31, are as follows (in millions): 2015 2014 2013 Revenue: United States $ $ $ Germany Rest of Europe Asia Pacific Other Total revenue $ $ $ 2015 2014 Property, plant and equipment, net: United States $ $ Germany Rest of Europe Asia Pacific Other Total property, plant and equipment, net $ $ |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
Related Parties | |
Related Parties | Note 20—Related Parties The Company leases certain office space from certain of its principal shareholders, including a director and executive officer and another member of the Company's Board of Directors, and members of their immediate families, which have expiration dates ranging from 2016 to 2020. Total rent expense under these leases was $1. 8 million, $2.0 million and $2.6 million for each of the years ended December 31, 2015, 2014 and 2013, respectively. During the years ended December 31, 2014 and 2013, the Company incurred expenses of $2.4 million and $5.3 million, respectively, to a law firm in which one of the former members of its Board of Directors is a partner. During the years ended December 31, 2014 and 2013, the Company incurred expenses of $0.1 million and $0.2 million, respectively, to a financial services firm in which one of the former members of its Board of Directors is a partner. During the years ended December 31, 2014 and 2013, the Company recorded revenue of $0.9 million and $0.1 million, respectively, from commercial transactions with a life science supply company in which a member of the Company's Board of Directors is Chairman, President and Chief Executive Officer and another member of the Company's Board of Directors was formerly a director. During the years ended December 31, 2015 and 2014, the Company recorded revenue of $0.7 million and $1.9 million, respectively, and incurred expenses of $0.1 million for the year ended December 31, 2014, arising from commercial transactions with a life sciences company in which a member of the Company's Board of Directors, who joined the Board of Directors in 2014, is Chairman and Chief Executive Officer. During the year ended December 31, 2015, the Company recorded revenue of $0.5 million from commercial transactions with a thermal analysis company in which a member of our Board of Directors serves as a consultant. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 21—Recent Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-17, Balance Sheet Classification of Deferred Taxes , which eliminates the current requirement to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, entities will be required to classify all deferred tax assets and liabilities as noncurrent. The guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016, with early adoption permitted. The Company elected to early adopt this standard prospectively and all deferred taxes are shown as noncurrent in the consolidated balance sheet as of December 31, 2015. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments . ASU 2015-16 eliminates the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which it determines the amount of the adjustment, including the effect on earnings of any amounts it would have recorded in previous periods if the accounting had been completed at the acquisition date. The guidance is effective for public business entities for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company does not expect the adoption of ASU No. 2015-16 to have a material impact on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory . The new guidance eliminates the measurement of inventory at market value, and inventory will now be measured at the lower of cost and net realizable value. The ASU defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. ASU No. 2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. The Company is evaluating the provisions of this statement and has not determined what impact the adoption of ASU No. 2015-11 will have on the Company's consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs . The new guidance changes the presentation of debt issuance costs in the balance sheet to a reduction of the related debt liability instead of classifying as an asset. The income statement presentation of debt issuance costs is unchanged. ASU No. 2015-03 is effective for annual periods beginning after December 15, 2015, and interim periods within those years. Early application is permitted and the guidance is to be applied retrospectively to all prior periods presented. In August 2015, the FASB issued ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, excluding debt issuance costs related to line-of-credit arrangements from the scope of ASU No. 2015-03. The Company does not expect the adoption of ASU No. 2015-03 to have a material impact on its consolidated balance sheet. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which supersedes the revenue recognition requirements under Accounting Standards Codification (ASC) Topic 605. The new guidance was the result of a joint project between the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop common revenue standards for U.S. GAAP and International Financial Reporting Standards. The core principle of the new guidance is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 was originally effective prospectively for annual periods beginning after December 15, 2016, and interim periods within those years. Early application was not permitted. In August 2015, the FASB elected to defer the effective date of ASU No. 2014-09 by one year to annual periods beginning after December 15, 2017, with early application permitted as of the original effective date. The Company is currently assessing the impact the adoption of this standard may have on its consolidated financial statements upon adoption. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data (Unaudited) | |
Quarterly Financial Data (Unaudited) | Note 22—Quarterly Financial Data (Unaudited) A summary of operating results for the quarterly periods in the years ended December 31, 2015 and 2014, is set forth below (in millions, except per share data): Quarter Ended March 31 June 30 September 30 (1) December 31 (1) Year ended December 31, 2015 Net revenue $ $ $ $ Gross profit Operating income Net income attributable to Bruker Corporation Net income per common share attributable to Bruker Corporation shareholders: Basic $ $ $ $ Diluted $ $ $ $ Year ended December 31, 2014 Net revenue $ $ $ $ Gross profit Operating income Net income attributable to Bruker Corporation Net income per common share attributable to Bruker Corporation shareholders: Basic $ $ $ $ Diluted $ $ $ $ (1) The second, third and fourth quarter of 2015 includes impairment of assets of $1.8 million, $2.5 million and $0.3 million, respectively, comprised of goodwill, definite-lived intangible assets and other long-lived assets. The third and fourth quarter of 2014 includes impairment of assets of $6.9 million and $4.6 million, respectively, comprised of definite-lived intangible assets and other long-lived assets. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Event | |
Subsequent Event | Note 23—Subsequent Event On February 22, 2016, the Company announced the establishment of a dividend policy and the declaration by its Board of Directors of an initial quarterly cash dividend in the amount of $0.04 per share of the Company's issued and outstanding common stock. The dividend will be paid on March 24, 2016 to stockholders of record as of March 4, 2016. Under the dividend policy, the Company will target a cash dividend to the Company's stockholders in the amount of $0.16 per share per annum, payable in equal quarterly installments. Subsequent dividend declarations and the establishment of record and payment dates for such future dividend payments, if any, are subject to the Board of Directors' continuing determination that the dividend policy is in the best interests of the Company's stockholders. The dividend policy may be suspended or cancelled at the discretion of the Board of Directors at any time. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and all majority and wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling interests represents the minority shareholders' proportionate share of the Company's majority-owned subsidiaries. The portion of net income or net loss attributable to non-controlling interests is presented as net income attributable to noncontrolling interests in consolidated subsidiaries in the consolidated statements of income and comprehensive income (loss), and the portion of other comprehensive income (loss) of these subsidiaries is presented in the consolidated statements of shareholders' equity. |
Subsequent Events | Subsequent Events The Company has evaluated all subsequent events and determined that there are no material recognized or unrecognized subsequent events, or any subsequent events required to be mentioned in the footnotes to the consolidated financial statements, other than the item disclosed in Note 23—Subsequent Event. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents primarily include cash on hand, money market funds and time deposits with original maturities of three months or less at the date of acquisition. Time deposits represent amounts on deposit in banks and temporarily invested in instruments with maturities of three months or less at the time of purchase. Certain of these investments represent deposits which are not insured by the FDIC or any other government agency. Cash equivalents are carried at cost, which approximates fair value. |
Short-term Investments | Short-term Investments Short-term investments represent time and call deposits with original maturities of greater than three months at the date of acquisition. Short-term investments are classified as available-for-sale and are reported at fair value, with unrealized gains (losses) excluded from earnings and reported, net of tax, in accumulated other comprehensive income (loss) within the accompanying consolidated balance sheets. There were no unrealized gains (losses) recorded as of December 31, 2015 and 2014, as cost approximates fair value. |
Restricted Cash | Restricted Cash The Company has certain subsidiaries which are required by local governance to maintain restricted cash balances to cover future employee benefit payments. Restricted cash balances are classified as non-current unless, under the terms of the applicable agreements, the funds will be released from restrictions within one year from the balance sheet date. The current and non-current portion of restricted cash is recorded within other current assets and other long-term assets, respectively, in the accompanying consolidated balance sheets. |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities All derivatives, whether designated in a hedging relationship or not, are recorded on the consolidated balance sheets at fair value. The accounting for changes in fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, the Company must designate the hedging instrument, based on the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. A fair value hedge is a derivative instrument designated for the purpose of hedging the exposure of changes in fair value of an asset or a liability resulting from a particular risk. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are both recognized in the same caption in the consolidated statements of income and comprehensive income (loss). |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company applies the following hierarchy to determine the fair value of financial instruments, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The levels in the hierarchy are defined as follows: • Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The valuation techniques that may be used by the Company to determine the fair value of Level 2 and Level 3 financial instruments are the market approach, the income approach and the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value based on current market expectations about those future amounts, including present value techniques, option-pricing models and the excess earnings method. The cost approach is based on the amount that would be required to replace the service capacity of an asset (replacement cost). The Company's financial instruments consist primarily of cash equivalents, short-term investments, restricted cash, derivative instruments consisting of forward foreign exchange contracts, commodity contracts, derivatives embedded in certain purchase and sale contracts, accounts receivable, short-term borrowings, accounts payable, contingent consideration and long-term debt. The carrying amounts of the Company's cash equivalents, short-term investments and restricted cash, accounts receivable, short-term borrowings and accounts payable approximate fair value caused by their short-term nature. Derivative assets and liabilities are measured at fair value on a recurring basis. The Company's long-term debt consists principally of a private placement arrangement entered into in 2012 with various fixed interest rates based on the maturity date. The Company has evaluated the estimated fair value of financial instruments using available market information and management's estimates. The use of different market assumptions and/or estimation methodologies could have a significant effect on the estimated fair value amounts. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which subject the Company to credit risk consist of cash, cash equivalents, short-term investments, derivative instruments, accounts receivables and restricted cash. The risk with respect to cash, cash equivalents and short-term investments is minimized by the Company's policy of investing in short-term financial instruments issued by highly-rated financial institutions. The risk with respect to derivative instruments is minimized by the Company's policy of entering into arrangements with highly-rated financial institutions. The risk with respect to accounts receivables is minimized by the creditworthiness and diversity of the Company's customers. The Company performs periodic credit evaluations of its customers' financial condition and generally requires an advanced deposit for a portion of the purchase price. Credit losses have been within management's expectations and the allowance for doubtful accounts totaled $9.1 million and $10.1 million as of December 31, 2015 and 2014, respectively. As of December 31, 2015 and 2014, no single customer represented 10% or more of the Company's accounts receivable. For the years ended December 31, 2015, 2014 and 2013, no single customer represented 10% or more of the Company's total revenue. |
Inventories | Inventories Components of inventory include raw materials, work-in-process, demonstration units and finished goods. Demonstration units include systems which are located in the Company's demonstration laboratories or installed at the sites of potential customers and are considered available for sale. Finished goods include in-transit systems that have been shipped to the Company's customers, but not yet installed and accepted by the customer. All inventories are stated at the lower of cost or market. Cost is determined principally by the first-in, first-out method for a majority of subsidiaries and by average-cost for certain other subsidiaries. The Company reduces the carrying value of its inventories for differences between cost and estimated net realizable value, taking into consideration usage in the preceding twelve months, expected demand, technological obsolescence and other information including the physical condition of demonstration inventories. The Company records a charge to cost of revenue for the amount required to reduce the carrying value of inventory to net realizable value. Costs associated with the procurement of inventories, such as inbound freight charges and purchasing and receiving costs, are capitalized as part of inventory and are also included in the cost of revenue line item within the consolidated statements of income and comprehensive income (loss). |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Major improvements are capitalized while expenditures for maintenance, repairs and minor improvements are charged to expense as incurred. When assets are retired or otherwise disposed of, the assets and related accumulated depreciation and amortization are eliminated from the accounts and any resulting gain or loss is reflected in the consolidated statements of income and comprehensive income (loss). Depreciation and amortization are calculated on a straight-line basis over the estimated useful lives of the assets as follows: Buildings 25-40 years Machinery and equipment 3-10 years Computer equipment and software 3-5 years Furniture and fixtures 3-10 years Leasehold improvements Lesser of 15 years or the remaining lease term |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and indefinite-lived intangible assets are not amortized, but are evaluated for impairment on an annual basis, or on an interim basis when events or changes in circumstances indicate that the carrying value may not be recoverable. In assessing the recoverability of goodwill and indefinite-lived intangible assets, the Company must make assumptions regarding the estimated future cash flows, and other factors, to determine the fair value of these assets. If these estimates or their related assumptions change in the future, the Company may be required to record impairment charges against these assets in the reporting period in which the impairment is determined. The Company tests goodwill for impairment at the reporting unit level, which is the operating segment or one level below an operating segment. The Company has the option of performing a qualitative assessment to determine whether further impairment testing is necessary before performing the two-step quantitative assessment. If as a result of the qualitative assessment, it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, a quantitative impairment test will be required. Otherwise, no further testing will be required. If a quantitative impairment test is performed, the first step involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill. The Company generally determines fair value of reporting units using a weighting of both the market and the income methodologies. Estimating the fair value of the reporting units requires significant judgment by management. If the carrying amount of a reporting unit exceeds the fair value of the reporting unit, the Company performs the second step of the goodwill impairment test to measure the amount of the impairment. In the second step of the goodwill impairment test the Company compares the implied fair value of the reporting unit's goodwill with the carrying value of that goodwill. In process research and development, or IPR&D, acquired as part of business combinations under the acquisition method represents ongoing development work associated with enhancements to existing products, as well as the development of next generation products. IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment on an annual basis, or when indicators of impairment are identified. When the IPR&D project is complete, it is reclassified as a finite-lived intangible asset and is amortized over its estimated useful life, typically seven to ten years. If an IPR&D project is abandoned before completion or is otherwise determined to be impaired, the value of the asset or the amount of the impairment is charged to the consolidated statements of income and comprehensive income (loss) in the period the project is abandoned or impaired. Intangible assets with a finite useful life are amortized on a straight-line basis over their estimated useful lives as follows: Existing technology and related patents 3-10 years Customer and distributor relationships 5-12 years Trade names 5-10 years |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the quoted market price, if available, or the estimated fair value of those assets are less than the assets' carrying value. Impairment losses are charged to the consolidated statements of income and comprehensive income (loss) for the difference between the fair value and carrying value of the asset. |
Warranty Costs and Deferred Revenue | Warranty Costs and Deferred Revenue The Company typically provides a one year parts and labor warranty with the purchase of equipment. The anticipated cost for this warranty is accrued upon recognition of the sale and is included as a current liability on the accompanying consolidated balance sheets. The Company's warranty reserve reflects estimated material and labor costs for potential product issues for which the Company expects to incur an obligation. The Company's estimates of anticipated rates of warranty claims and costs are primarily based on historical information. The Company assesses the adequacy of the warranty reserve on a quarterly basis and adjusts the amount as necessary. If the historical data used to calculate the adequacy of the warranty reserve is not indicative of future requirements, additional or reduced warranty reserves may be required. The Company also offers to its customers extended warranty and service agreements extending beyond the initial warranty for a fee. These fees are recorded as deferred revenue and recognized ratably into income over the life of the extended warranty contract or service agreement. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the income tax basis of assets and liabilities. A valuation allowance is applied against any net deferred tax asset if, based on the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company records liabilities related to uncertain tax positions in accordance with the guidance that clarifies the accounting for uncertainty in income taxes recognized in a Company's financial statements. This guidance prescribes a minimum recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. |
Customer Advances | Customer Advances The Company typically requires an advance deposit under the terms and conditions of contracts with customers. These deposits are recorded as a liability until revenue is recognized on the specific contract in accordance with the Company's revenue recognition policy. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from system sales when persuasive evidence of an arrangement exists, the price is fixed or determinable, title and risk of loss has been transferred to the customer and collectability of the resulting receivable is reasonably assured. Title and risk of loss transfers based upon customer acceptance for a system that has been delivered and installed at a customer facility or, for certain systems, upon shipping terms. For systems that include customer-specific acceptance criteria, the Company is required to assess when it can demonstrate the acceptance criteria has been met, which generally is upon customer acceptance and evidence of installation. When products are sold through an independent distributor or a strategic distribution partner who assumes responsibility for installation, the Company recognizes the system sale when the product has been shipped and title and risk of loss have been transferred to the distributor. The Company's distributors do not have price protection rights or rights of return; however, the Company's products are typically warranted to be free from defect for a period of one year. Revenue is deferred until cash is received when collectability is not reasonably assured or when the price is not fixed or determinable. For transactions that include multiple elements, arrangement consideration is allocated to each element using the fair value hierarchy as required by ASU No. 2009-13. The Company limits the amount of revenue recognized for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations, or subject to customer-specific return or refund privileges. The Company determines the fair value of its products and services based upon vendor specific objective evidence ("VSOE"). The Company determines VSOE based on its normal selling pricing and discounting practices for the specific product or service when sold on a stand-alone basis. In determining VSOE, the Company's policy requires a substantial majority of selling prices for a product or service to be within a reasonably narrow range. The Company also considers the class of customer, method of distribution and the geographies into which products and services are being sold when determining VSOE. If VSOE cannot be established, the Company attempts to establish the selling price based on third-party evidence ("TPE"). VSOE cannot be established in instances where a product or service has not been sold separately, stand-alone sales are too infrequent or product pricing is not within a sufficiently narrow range. TPE is determined based on competitor prices for similar deliverables when sold separately. When the Company cannot determine VSOE or TPE, it uses estimated selling price ("ESP") in its allocation of arrangement consideration. The objective of ESP is to determine the price at which the Company would typically transact a stand-alone sale of the product or service. ESP is determined by considering a number of factors including the Company's pricing policies, internal costs and gross profit objectives, method of distribution, market research and information, recent technological trends, competitive landscape and geographies. The Company analyzes the selling prices used in its allocation of arrangement consideration, at a minimum, on an annual basis. Selling prices will be analyzed more frequently if a significant change in the Company's business or other factors necessitate more frequent analysis or if the Company experiences significant variances in its selling prices. Revenue from accessories and parts is recognized upon shipment. Service revenue is recognized as the services are performed or ratably over the contractual obligation and includes maintenance contracts, extended warranty, training, application support and on-demand services. The Company also has contracts for which it applies the percentage-of-completion model and completed contract model of revenue recognition. Application of the percentage-of-completion method requires the Company to make reasonable estimates of the extent of progress toward completion of the contract and the total costs the Company will incur under the contract and losses are recorded immediately when we estimate that contracts will ultimately result in a loss. Changes in the estimates could affect the timing of revenue recognition. Other revenues are primarily comprised of licensing arrangements, which is recognized ratably over the term of the related contracts. |
Shipping and Handling Costs | Shipping and Handling Costs The Company includes costs incurred in connection with shipping and handling of products within selling, general and administrative expenses in the accompanying consolidated statements of income and comprehensive income (loss). Shipping and handling costs were $20.6 million, $26.2 million and $26.7 million in the years ended December 31, 2015, 2014 and 2013, respectively. Amounts billed to customers in connection with these costs are included in total revenues. |
Research and Development | Research and Development Research and development costs are expensed as incurred and include salaries, wages and other personnel related costs, material costs and depreciation, consulting costs and facility costs. |
Software Costs | Software Costs Purchased software is capitalized at cost and is amortized over the estimated useful life, generally three years. Software developed for use in the Company's products is expensed as incurred until technological feasibility is reasonably assured and is classified as research and development expense. Subsequent to the achievement of technological feasibility, amounts are capitalizable, however, to date such amounts have not been material. |
Advertising | Advertising The Company expenses advertising costs as incurred. Advertising expenses were $12.9 million, $10.7 million and $9.6 million during the years ended December 31, 2015, 2014 and 2013, respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation expense in the consolidated statements of income and comprehensive income (loss) based on the fair value of the share-based award at the grant date. The Company's primary types of share-based compensation are stock options and restricted stock units. The Company recorded stock-based compensation expense for the years ended December 31, 2015, 2014 and 2013, as follows (in millions): 2015 2014 2013 Stock options $ $ $ Restricted stock Total stock-based compensation $ $ $ Compensation expense is amortized on a straight-line basis over the underlying vesting terms of the share-based award. Stock options to purchase the Company's common stock are periodically awarded to executive officers and other employees of the Company, and members of the Company's Board of Directors, subject to a vesting period of three to five years. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. Assumptions regarding volatility, expected term, dividend yield and risk-free interest rates are required for the Black-Scholes model and are presented in the table below: 2015 2014 2013 Risk-free interest rates 1.58%-1.91% 1.78%-2.10% 1.07%-2.45% Expected life 6.0-6.25 years 6.0-6.25 years 6.5 years Volatility 35.10%-52.23% 53.07%-56.24% Expected dividend yield — — — The risk-free interest rate is based on the yield on zero-coupon U.S. Treasury securities for a period that is commensurate with the expected life assumption. Expected life is determined through the simplified method as defined in the Securities and Exchange Commission Staff Accounting Bulletin No. 110. The Company believes that this is the best estimate of the expected term of a new option. Expected volatility is based on a number of factors, but the Company currently believes that the exclusive use of its historical volatility results in the best estimate of the grant-date fair value of employee stock options because it reflects the market's current expectations of future volatility. The expected dividend yield was not considered in the option pricing formula since the Company had not historically paid dividends and had no plan to do so as of December 31, 2015. In addition, the Company utilizes an estimated forfeiture rate when calculating the stock-based compensation expense for the period. The Company has applied estimated forfeiture rates derived from an analysis of historical data of 5.8%, 5.1% and 7.0% for the years ended December 31, 2015, 2014 and 2013, respectively, in determining the expense recorded in the accompanying consolidated statements of income and comprehensive income (loss). |
Earnings Per Share | Earnings Per Share Net income per common share attributable to Bruker Corporation shareholders is calculated by dividing net income attributable to Bruker Corporation by the weighted-average shares outstanding during the period. The diluted net income per share computation includes the effect of shares which would be issuable upon the exercise of outstanding stock options and the vesting of restricted stock, reduced by the number of shares which are assumed to be purchased by the Company under the treasury stock method. The following table sets forth the computation of basic and diluted weighted average shares outstanding for the years ended December 31, (in millions, except per share data): 2015 2014 2013 Net income attributable to Bruker Corporation, as reported $ $ $ Weighted average shares outstanding: Weighted average shares outstanding-basic Effect of dilutive securities: Stock options and restricted stock units Net income per common share attributable to Bruker Corporation shareholders: Basic $ $ $ Diluted $ $ $ Stock options to purchase approximately 1.3 million shares, 0.1 million shares and 0.4 million shares were excluded from the computation of diluted earnings per share for the years ended December 31, 2015, 2014 and 2013, respectively, because their effect would have been anti-dilutive. In May 2015, the Company's Board of Directors approved a share repurchase program (the "Anti-Dilutive Repurchase Program") under which the Company may repurchase the Company's common stock in amounts intended to approximately offset, on an annual basis, the dilutive effect of shares that have been, or may be, issued pursuant to option or restricted stock awards under the Company's 2010 Incentive Compensation Plan. A total of 1,245,000 shares were repurchased at an aggregate cost of $24.9 million under the Anti-Dilutive Repurchase Program. In November 2015, the Company's Board of Directors suspended the Anti-Dilutive Repurchase Program until January 1, 2017 and approved an additional share repurchase program (the "Repurchase Program") under which repurchases of common stock up to $225 million may occur from time to time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions, legal requirements and other considerations. A total of 2,837,042 shares were repurchased at an aggregate cost of $65.0 million as of December 31, 2015 under the Repurchase Program. The Repurchase Program will continue in 2016 and the Company intends to fund any additional repurchases from cash on hand, future cash flows from operations and available borrowings under the revolving credit facility. The repurchased shares are reflected within Treasury stock in the accompanying consolidated balance sheet at December 31, 2015. |
Employee Benefit Plans | Employee Benefit Plans The Company recognizes the over-funded or under-funded status of defined benefit pension and other postretirement defined benefit plans as an asset or liability, respectively, in its consolidated balance sheets and recognizes changes in the funded status in the year in which the changes occur through other comprehensive income (loss). |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Other comprehensive income (loss) refers to revenues, expenses, gains and losses that are excluded from net income as these amounts are recorded directly as an adjustment to shareholders' equity, net of tax. The Company's other comprehensive income (loss) was composed of foreign currency translation adjustments and pension liability adjustments. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of the Company's foreign subsidiaries, where the functional currency is the local currency, are translated into U.S. dollars using year-end exchange rates, or historical rates, as appropriate. Revenues and expenses of foreign subsidiaries are translated at the average exchange rates in effect during the year. Adjustments resulting from financial statement translations are included as a separate component of shareholders' equity. Gains and losses resulting from translation of foreign currency monetary transactions are reported in interest and other income (expense), net in the consolidated statements of income and comprehensive income (loss) for all periods presented. The Company has certain intercompany foreign currency transactions that are deemed to be of a long-term investment nature. Exchange adjustments related to those transactions are made directly to a separate component of shareholders' equity. |
Risk and Uncertainties | Risk and Uncertainties The Company is subject to risks common to its industry including, but not limited to, global economic conditions, rapid technological change, government and academic funding levels, changes in commodity prices, spending patterns from 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. |
Contingencies | Contingencies The Company is subject to proceedings, lawsuits and other claims related to patents, product and other matters. The Company assesses the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses. A determination of the amount of reserves required, if any, for these contingencies is made after analysis of each individual issue. The required reserves may change in the future because of new developments in each situation or changes in settlement strategy in assessing these matters. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Significant estimates and judgments made by management in preparing these financial statements include revenue recognition, allowances for doubtful accounts, write-downs for excess and obsolete inventory, estimated fair values used to record impairment charges related to intangible assets, goodwill, and other long-lived assets, amortization periods, expected future cash flows used to evaluate the recoverability of long-lived assets, stock-based compensation expense, warranty allowances, restructuring and other related charges, contingent liabilities and the recoverability of the Company's net deferred tax assets. Although the Company regularly reassesses the assumptions underlying these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from management's estimates if these results differ from historical experience or other assumptions prove not to be substantially accurate, even if such assumptions are reasonable when made. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies | |
Estimated useful lives of property, plant and equipment | Depreciation and amortization are calculated on a straight-line basis over the estimated useful lives of the assets as follows: Buildings 25-40 years Machinery and equipment 3-10 years Computer equipment and software 3-5 years Furniture and fixtures 3-10 years Leasehold improvements Lesser of 15 years or the remaining lease term |
Estimated useful lives of finite intangible assets | Intangible assets with a finite useful life are amortized on a straight-line basis over their estimated useful lives as follows: Existing technology and related patents 3-10 years Customer and distributor relationships 5-12 years Trade names 5-10 years |
Stock-based compensation expense | The Company recorded stock-based compensation expense for the years ended December 31, 2015, 2014 and 2013, as follows (in millions): 2015 2014 2013 Stock options $ $ $ Restricted stock Total stock-based compensation $ $ $ |
Assumptions regarding volatility, expected life, dividend yield and risk-free interest rates | Assumptions regarding volatility, expected term, dividend yield and risk-free interest rates are required for the Black-Scholes model and are presented in the table below: 2015 2014 2013 Risk-free interest rates 1.58%-1.91% 1.78%-2.10% 1.07%-2.45% Expected life 6.0-6.25 years 6.0-6.25 years 6.5 years Volatility 35.10%-52.23% 53.07%-56.24% Expected dividend yield — — — |
Summary of the 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 for the years ended December 31, (in millions, except per share data): 2015 2014 2013 Net income attributable to Bruker Corporation, as reported $ $ $ Weighted average shares outstanding: Weighted average shares outstanding-basic Effect of dilutive securities: Stock options and restricted stock units Net income per common share attributable to Bruker Corporation shareholders: Basic $ $ $ Diluted $ $ $ |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions | |
Components and fair value allocation of the consideration transferred in connection with Jordan Valley | The components and fair value allocation of the consideration transferred in connection with the acquisition of Jordan Valley were as follows (in millions): Consideration Transferred: Cash paid $ Cash acquired ) Contingent consideration Total consideration transferred $ Allocation of Consideration Transferred: Accounts receivable $ Inventories Other current assets Property, plant and equipment Intangible assets: Customer relationships Existing technology Trade name Goodwill Liabilities assumed ) Total consideration transferred $ |
Fair Value of Financial Instr34
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 and presents them within the fair value hierarchy using the lowest level of input that is significant to the fair value measurement at December 31, 2015 and 2014 (in millions): December 31, 2015 Total Quoted Prices in Active Markets Available (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Short-term investments $ $ $ — $ — Restricted cash — — Embedded derivatives in purchase and delivery contracts — — Long-term restricted cash — — Total assets recorded at fair value $ $ $ $ — Liabilities: Contingent consideration $ $ — $ — $ Foreign exchange contracts — — Embedded derivatives in purchase and delivery contracts — — Fixed price commodity contracts — — Total liabilities recorded at fair value $ $ — $ $ December 31, 2014 Total Quoted Prices in Active Markets Available (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ $ $ — $ — Short-term investments — — Restricted cash — — Embedded derivatives in purchase and delivery contracts — — Long-term restricted cash — Total assets recorded at fair value $ $ $ $ — Liabilities: Contingent consideration $ $ — $ — $ Foreign exchange contracts — — Embedded derivatives in purchase and delivery contracts — — Fixed price commodity contracts — Total liabilities recorded at fair value $ $ — $ $ |
Schedule of changes in contingent consideration liabilities | The following table sets forth the changes in contingent consideration liabilities for the years ended December 31, 2015 and 2014 (in millions): Balance at December 31, 2013 $ Current period additions Current period adjustments Current period settlements ) Foreign currency effect ) Balance at December 31, 2014 Current period additions Current period adjustments ) Current period settlements ) Foreign currency effect ) Balance at December 31, 2015 $ |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Receivable | |
Summary of trade accounts receivable | The following is a summary of trade accounts receivable at December 31, (in millions): 2015 2014 Gross accounts receivable $ $ Allowance for doubtful accounts ) ) Accounts receivable, net $ $ |
Summary of activity in the allowance for doubtful accounts | The following is a summary of the activity in the Company's allowance for doubtful accounts at December 31, (in millions): Balance at Beginning of Period Additions Charged to Expense Deductions Amounts Written Off Foreign Currency Impact Balance at End of Period 2015 $ $ $ ) $ ) $ 2014 ) ) 2013 ) — |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventories | |
Schedule of inventories | Note 6—Inventories Inventories consisted of the following at December 31, (in millions): 2015 2014 Raw materials $ $ Work-in-process Finished goods Demonstration units Inventories $ $ |
Property, Plant and Equipment37
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment, Net | |
Summary of property, plant and equipment, net by major asset class | The following is a summary of property, plant and equipment, net by major asset class at December 31, (in millions): 2015 2014 Land $ $ Building and leasehold improvements Machinery, equipment, software and furniture and fixtures Less accumulated depreciation and amortization ) ) Property, plant and equipment, net $ $ |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 for the years ended December 31, 2015 and 2014 (in millions): Balance at December 31, 2013 $ Current period additions Current period adjustments ) Foreign currency impact ) Balance at December 31, 2014 Current period additions Current period adjustments Impairment ) Foreign currency impact ) Balance at December 31, 2015 $ |
Summary of intangible assets | The following is a summary of intangible assets at December 31, (in millions): 2015 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Existing technology and related patents $ $ ) $ $ $ ) $ Customer relationships ) ) Non compete conracts ) ) Trade names ) ) — Intangible assets subject to amortization ) ) In-process research and development — — Intangible assets $ $ ) $ $ $ ) $ |
Schedule of estimated future amortization expense related to amortizable intangible assets | The estimated future amortization expense related to amortizable intangible assets at December 31, 2015 is as follows (in millions): 2016 $ 2017 2018 2019 2020 Thereafter Total $ |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Current Liabilities | |
Summary of other current liabilities | The following is a summary of other current liabilities at December 31, (in millions): 2015 2014 Deferred revenue $ $ Accrued compensation Accrued warranty Income taxes payable Other taxes payable Derivative liabilities Other accrued expenses Other current liabilities $ $ |
Schedule of changes in accrued warranty | The following table sets forth the changes in accrued warranty for the years ended December 31, 2015 and 2014 (in millions): Balance at December 31, 2013 $ Accruals for warranties issued during the year Settlements of warranty claims ) Foreign currency impact ) Balance at December 31, 2014 Accruals for warranties issued during the year Settlements of warranty claims ) Foreign currency impact ) Balance at December 31, 2015 $ |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt | |
Components of debt obligations | The Company's debt obligations consist of the following as of December 31, (in millions): 2015 2014 US Dollar revolving loan under the 2015 Agreement $ $ — US Dollar revolving loan under the Amended Credit Agreement — US Dollar notes under the Note Purchase Agreement Capital lease obligations and other loans Total debt Current portion of long-term debt ) ) Total long-term debt, less current portion $ $ |
Summary of maximum commitments and net amounts available under revolving loan and line of credit arrangements | The following is a summary of the maximum commitments and the net amounts available to the Company at December 31, 2015 (in millions): Weighted Average Interest Rate Total Amount Committed by Lenders Outstanding Borrowings Outstanding Letters of Credit Total Amount Available 2015 Credit Agreement % $ $ $ $ Other lines of credit — — Total revolving loans $ $ $ $ |
Annual maturities of debt outstanding | Annual maturities of debt outstanding at December 31, 2015 are as follows (in millions): 2016 $ 2017 2018 2019 2020 Thereafter Total $ |
Derivative Instruments and He41
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities | |
Schedule of notional amounts outstanding under foreign currency contracts | The Company had the following notional amounts outstanding under foreign currency contracts at December 31, (in millions): Buy Notional Amount in Buy Currency Sell Maturity Notional Amount in U.S. Dollars Fair Value of Assets Fair Value of Liabilities December 31, 2015: Euro U.S. Dollars January 2016 $ $ — $ Swiss Francs U.S. Dollars April 2016 — U.S. Dollars Israel Shekel April 2016 — — $ $ — $ December 31, 2014: Euro U.S. Dollars January 2015 to September 2015 $ $ — $ U.S. Dollars Euro February 2015 to December 2015 — — Euro British Pounds January 2015 to June 2015 — — Yen Euro March 2015 — — Swiss Francs U.S. Dollars January 2015 — $ $ — $ |
Schedule of fair value and balance sheet location of derivative instruments | The fair value of the derivative instruments described above are recorded in the consolidated balance sheets for the years ended December 31, 2015 and 2014 as follows (in millions): Balance Sheet Location 2015 2014 Derivative assets: Embedded derivatives in purchase and delivery contracts Other current assets $ $ Derivative liabilities: Foreign exchange contracts Other current liabilities $ $ Embedded derivatives in purchase and delivery contracts Other current liabilities Fixed price commodity contracts Other current liabilities |
Schedule of impact on net income of unrealized gains and losses resulting from changes in the fair value of derivative instruments | The impact on net income of unrealized gains and losses resulting from changes in the fair value of derivative instruments for the years ending December 31 are as follows (in millions) and are recorded within interest and other income (expense), net in the consolidated statements of income and comprehensive income (loss): 2015 2014 2013 Foreign exchange contracts $ $ ) $ Embedded derivatives in purchase and delivery contracts ) ) Fixed price commodity contracts ) ) Income (expense), net $ $ ) $ |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | |
Schedule of domestic and foreign components of income before taxes | The domestic and foreign components of income before taxes are as follows for the years ended December 31, (in millions): 2015 2014 2013 Domestic $ $ ) $ ) Foreign $ $ $ |
Components of income tax provision | The components of the income tax provision are as follows for the years ended December 31, (in millions): 2015 2014 2013 Current income tax (benefit) expense: Federal $ $ ) $ State Foreign Total current income tax expense Deferred income tax (benefit) expense: Federal ) ) State ) ) ) Foreign ) ) Total deferred income tax (benefit) expense ) ) Income tax provision $ $ $ |
Schedule of significant components due to which income tax (benefit) provision differs from the tax provision computed at the U.S federal statutory rate | The income tax provision differs from the tax provision computed at the U.S federal statutory rate due to the following significant components for the years ended December 31,: 2015 2014 2013 Statutory tax rate % % % Foreign tax rate differential ) ) ) Permanent differences ) Tax contingencies ) ) Change in tax rates ) Withholding taxes State income taxes, net of federal benefits ) Purchase accounting Tax credits ) ) ) Other ) ) Change in valuation allowance for unbenefited losses ) Effective tax rate % % % |
Schedule of tax effect of temporary items that give rise to significant portions of deferred tax assets and liabilities | The tax effect of temporary items that give rise to significant portions of the deferred tax assets and liabilities are as follows as of December 31, (in millions): 2015 2014 Deferred tax assets: Accounts receivable $ $ Accrued expenses Compensation Investments Deferred revenue Net operating loss carryforwards Fixed assets — Inventory — Foreign tax and other tax credit carryforwards Unrealized currency gain/loss Warranty reserve — Other Gross deferred tax assets Less valuation allowance ) ) Total deferred tax assets Deferred tax liabilities: Accounts receivable Fixed assets — Foreign statutory reserves Investments — Inventory — Intangibles Accrued expenses — Total deferred tax liabilities Net deferred tax assets $ $ |
Tabular reconciliation of the beginning and ending amount of unrecognized tax benefits | A tabular reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Gross unrecognized tax benefits at December 31, 2012 $ Gross decreases—tax positions in prior periods ) Gross increases—current period tax positions Settlements ) Lapse of statutes ) Gross unrecognized tax benefits at December 31, 2013 Gross decreases—tax positions in prior periods ) Gross decreases—current period tax positions ) Settlements ) Lapse of statutes ) Gross unrecognized tax benefits at December 31, 2014 Gross decreases—tax positions in prior periods ) Gross increases—current period tax positions Settlements ) Lapse of statutes ) Gross unrecognized tax benefits at December 31, 2015 $ |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans | |
Schedule of components of net periodic benefit costs | The components of net periodic benefit costs for the years ended December 31, 2015, 2014 and 2013 were as follows: 2015 2014 2013 Components of net periodic benefit costs: Service cost $ $ $ Interest cost Expected return on plan assets ) ) ) Settlement loss recognized — — Amortization of net loss Net periodic benefit costs $ $ $ |
Schedule of changes in benefit obligations and plan assets, projected benefit obligation and funded status, for defined benefit pension plans | The changes in benefit obligations and plan assets under the defined benefit pension plans, projected benefit obligation and funded status of the plans were as follows at December 31, (in millions): 2015 2014 Change in benefit obligation: Benefit obligation at beginning of year $ $ Service cost Interest cost Plan participant contributions Plan curtailments ) ) Benefits paid ) Actuarial loss (gain) Plan amendments — Plan settlements ) — Premiums paid ) — Plan combinations — Impact of foreign currency exchange rates ) ) Benefit obligation at end of year Change in plan assets: Fair value of plan assets at beginning of year Return on plan assets ) Plan participant and employer contributions Benefits paid ) Plan settlements ) — Premiums paid ) — Plan combinations — Impact of foreign currency exchange rates ) Fair value of plan assets at end of year Net funded status $ ) $ ) |
Schedule of amounts recognized in consolidated balance sheets | The following amounts were recognized in the accompanying consolidated balance sheets for the Company's defined benefit plans at December 31, (in millions): 2015 2014 Current liabilities $ ) $ ) Non-current liabilities ) ) Net benefit obligation $ ) $ ) |
Schedule of pre-tax amounts recognized in accumulated other comprehensive income (loss) | The following pre-tax amounts were recognized in accumulated other comprehensive income (loss) for the Company's defined benefit plans at December 31, (in millions): 2015 2014 Reconciliation of amounts recognized in the consolidated balance sheets: Prior service cost $ ) $ — Net actuarial loss ) ) Accumulated other comprehensive loss ) ) Accumulated contributions in excess of net periodic benefit cost ) ) Net amount recognized $ ) $ ) |
Schedule of the range of assumptions used to determine the projected benefit obligations | The range of assumptions used to determine the projected benefit obligations for the years ended December 31, are as follows: 2015 2014 2013 Discount rates 0.3%-2.5% 0.7%-2.4% 0.7%-3.8% Expected return on plan assets 0.0%-3.0% 2.9% 3.0% Expected rate of compensation increase 1.0%-3.0% 1.0%-3.0% 1.0%-3.0% |
Schedule of the fair value of the Company's pension plan assets, by asset category and by level in the fair value hierarchy | The fair value of the Company's pension plan assets at December 31, 2015 and 2014, by asset category and by level in the fair value hierarchy, is as follows (in millions): December 31, 2015 Total Quoted Prices in Active Markets Available (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Plan Assets: Debt securities: Foreign corporations (b) $ $ $ — $ — Foreign governments (b) — — — — Equity Securities: Foreign corporations (c) — — — — Real estate (d) — — Swiss Life Collective BVG Foundation (f) — — Total plan assets $ $ $ $ — December 31, 2014 Total Quoted Prices in Active Markets Available (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Plan Assets: Cash and cash equivalents (a) $ $ $ — $ — Debt securities: Foreign corporations (b) — — Foreign governments (b) — — — — Equity Securities: Foreign corporations (c) — — — — Real estate (d) — — Other (e) — — Total plan assets $ $ $ — $ — (a) Cash and cash equivalents consist primarily of highly liquid investments, including cash on hand. (b) Foreign Corporate and Government bond investments had an average rating of AA. ( c ) International equities primarily include investments in large market capitalization stocks. (d) Real estate includes Swiss public real estate funds which generate returns in line with the Swiss property market by investing in residential and commerical properties throughout Switzerland. (e) Includes private equity, raw materials and alternative investment funds. (f) The Company's pension plan in Switzerland is outsourced to Swiss Life AG, an outside insurance provider. Under the insurance contract, the plan assets are invested in Swiss Life Collective BVG Foundation (the Foundation), which is an umbrella fund for which the retirement savings and interest rates are guaranteed a minimum of 1.75% on the mandatory withdrawal portion, as defined by Swiss law, and 1.25% on the non-mandatory portion. The Foundation utilizes plan administrators and investment managers to oversee the investment allocation process, set long-term strategic targets and monitor asset allocations. The target allocations are 75% bonds, including cash, 5% equity investments and 20% real estate and mortgages. Should the Foundation yield a return greater than the guaranteed amounts, the Company, according to Swiss law, shall receive 90% of the additional return with Swiss Life AG retaining 10%. The withdrawal benefits and interest allocations are secured at all times by Swiss Life AG. |
Schedule of estimated future benefit payments | The following benefit payments reflect future employee service as appropriate (in millions): 2016 $ 2017 2018 2019 2020 2021-2025 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies | |
Schedule of future minimum lease payments under non-cancelable operating leases for each of the next five years and thereafter | Future minimum lease payments under non-cancelable operating leases at December 31, 2015, for each of the next five years and thereafter are as follows (in millions): 2016 $ 2017 2018 2019 2020 Thereafter Total $ |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders' Equity | |
Schedule of stock option activity | Stock option activity for the year ended December 31, 2015 was as follows: Shares Subject to Options Weighted Average Option Price Weighted Average Remaining Contractual Term (Yrs) Aggregate Intrinsic Value (in millions) (b) Outstanding at December 31, 2014 $ Granted Exercised ) Forfeited ) Outstanding at December 31, 2015 $ $ Exercisable at December 31, 2015 $ $ Exercisable and expected to vest at December 31, 2015 (a) $ $ (a) In addition to the options that are vested at December 31, 2015, the Company expects a portion of the unvested options to vest in the future. Options expected to vest in the future are determined by applying an estimated forfeiture rate to the options that are unvested as of December 31, 2015. (b) The aggregate intrinsic value is based on the positive difference between the fair value of the Company's common stock price of $24.27 on December 31, 2015, or the date of exercises, as appropriate, and the exercise price of the underlying stock options. |
Schedule of restricted stock activity | The following table summarizes information about restricted stock activity during the year ended December 31, 2015: Shares Subject to Restriction Weighted Average Grant Date Fair Value Outstanding at December 31, 2014 $ Granted Vested ) Forfeited ) Outstanding at December 31, 2015 $ |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) | |
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 (loss), net of tax, at December 31, (in millions): Foreign Currency Translation Pension Liability Adjustment Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2012 $ $ ) $ Other comprehensive income Realized loss on reclassification — Balance at December 31, 2013 ) Other comprehensive income (loss) ) ) ) Realized loss on reclassification — Balance at December 31, 2014 ) Other comprehensive income (loss) ) ) ) Realized loss on reclassification — Balance at December 31, 2015 $ $ ) $ ) |
Other Charges, Net (Tables)
Other Charges, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Charges, Net | |
Components of other charges, net | The components of other charges, net for the years ended December 31, 2015, 2014 and 2013, were as follows (in millions): 2015 2014 2013 Acquisition-related expenses (income), net $ ) $ $ Professional fees incurred in connection with internal investigation Pension settlement charge — — Information technology transformation costs — Restructuring charges Factory relocation charges — — Other charges, net $ $ $ |
Schedule of changes in the restructuring reserves | The following table sets forth the changes in the restructuring reserves for the years ended December 31, 2015 and 2014 (in millions): Total Severance Exit Costs Provisions for Excess Inventory Balance at December 31, 2013 $ $ $ $ Restructuring charges Cash payments ) ) ) ) Non-cash adjustments ) ) ) ) Foreign currency impact ) ) ) ) Balance at December 31, 2014 Restructuring charges Cash payments ) ) ) ) Non-cash adjustments ) ) ) ) Foreign currency impact ) ) — ) Balance at December 31, 2015 $ $ $ $ |
Interest and Other Income (Ex48
Interest and Other Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Interest and Other Income (Expense), Net | |
Components of interest and other income (expense), net | The components of interest and other income (expense), net for the years ended December 31, 2015, 2014 and 2013, were as follows (in millions): 2015 2014 2013 Interest income $ $ $ Interest expense ) ) ) Exchange losses on foreign currency transactions ) ) ) (Loss) gain on disposal of product line ) Other ) ) Interest and other income (expense), net $ ) $ ) $ ) |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Segment Information | |
Schedule of revenue, operating income and total assets by reporting segment | Selected business segment information is presented below for the years ended December 31, (in millions): 2015 2014 2013 Revenue: BSI $ $ $ BEST Eliminations (a) ) ) ) Total revenue $ $ $ Operating Income (Loss): BSI $ $ $ BEST Corporate, eliminations and other (b) ) Total operating income $ $ $ (a) Represents product and service revenue between reportable segments. (b) Represents corporate costs and eliminations not allocated to the reportable segments. Total assets by segment as of and for the years ended December 31, are as follows (in millions): 2015 2014 Assets: BSI $ $ BEST Eliminations and other (a) ) ) Total assets $ $ (a) Assets not allocated to the reportable segments and eliminations of intercompany transactions. |
Summary of capital expenditures and depreciation and amortization by segment | Total capital expenditures and depreciation and amortization by segment are presented below for the years ended December 31, (in millions): 2015 2014 2013 Capital Expenditures: BSI $ $ $ BEST Total capital expenditures $ $ $ Depreciation and Amortization: BSI $ $ $ BEST Total depreciation and amortization $ $ $ |
Schedule of revenue and property, plant and equipment by geographical area | Revenue and property, plant and equipment, net by geographical area as of and for the year ended December 31, are as follows (in millions): 2015 2014 2013 Revenue: United States $ $ $ Germany Rest of Europe Asia Pacific Other Total revenue $ $ $ 2015 2014 Property, plant and equipment, net: United States $ $ Germany Rest of Europe Asia Pacific Other Total property, plant and equipment, net $ $ |
Quarterly Financial Data (Una50
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data (Unaudited) | |
Summary of operating results for quarterly periods | A summary of operating results for the quarterly periods in the years ended December 31, 2015 and 2014, is set forth below (in millions, except per share data): Quarter Ended March 31 June 30 September 30 (1) December 31 (1) Year ended December 31, 2015 Net revenue $ $ $ $ Gross profit Operating income Net income attributable to Bruker Corporation Net income per common share attributable to Bruker Corporation shareholders: Basic $ $ $ $ Diluted $ $ $ $ Year ended December 31, 2014 Net revenue $ $ $ $ Gross profit Operating income Net income attributable to Bruker Corporation Net income per common share attributable to Bruker Corporation shareholders: Basic $ $ $ $ Diluted $ $ $ $ (1) The second, third and fourth quarter of 2015 includes impairment of assets of $1.8 million, $2.5 million and $0.3 million, respectively, comprised of goodwill, definite-lived intangible assets and other long-lived assets. |
Description of Business (Detail
Description of Business (Details) | 12 Months Ended |
Dec. 31, 2015segment | |
Description of Business | |
Number of reportable segments | 2 |
BSI | |
Description of Business | |
Segment revenue (as a percent) | 92.00% |
Number of operating segments | 3 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - Short-Term Investments, Restricted Cash and Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Short-term Investments | ||
Unrealized gains (losses) on available-for-sale securities | $ 0 | $ 0 |
Restricted Cash | ||
Maximum period until release for current restricted cash | 1 year | |
Inventories | ||
Inventory adjustment, usage period | 12 months |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Concentration of Credit Risk | |||
Allowance for doubtful accounts | $ 9.1 | $ 10.1 | |
Customer concentration | Accounts receivable | |||
Concentration of Credit Risk | |||
Threshold for disclosure of risk concentrations (as a percent) | 10.00% | 10.00% | |
Customer concentration | Total revenue | |||
Concentration of Credit Risk | |||
Threshold for disclosure of risk concentrations (as a percent) | 10.00% | 10.00% | 10.00% |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Buildings | Minimum | |
Property, plant and equipment, Net | |
Estimated useful life | 25 years |
Buildings | Maximum | |
Property, plant and equipment, Net | |
Estimated useful life | 40 years |
Machinery and equipment | Minimum | |
Property, plant and equipment, Net | |
Estimated useful life | 3 years |
Machinery and equipment | Maximum | |
Property, plant and equipment, Net | |
Estimated useful life | 10 years |
Computer equipment and software | Minimum | |
Property, plant and equipment, Net | |
Estimated useful life | 3 years |
Computer equipment and software | Maximum | |
Property, plant and equipment, Net | |
Estimated useful life | 5 years |
Furniture and fixtures | Minimum | |
Property, plant and equipment, Net | |
Estimated useful life | 3 years |
Furniture and fixtures | Maximum | |
Property, plant and equipment, Net | |
Estimated useful life | 10 years |
Leasehold improvements | Maximum | |
Property, plant and equipment, Net | |
Estimated useful life | 15 years |
Purchased software | |
Property, plant and equipment, Net | |
Estimated useful life | 3 years |
Summary of Significant Accoun55
Summary of Significant Accounting Policies - Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2015 | |
In-process research and development | Minimum | |
Estimated useful lives of intangible assets: | |
Estimated useful lives of intangible assets | 7 years |
In-process research and development | Maximum | |
Estimated useful lives of intangible assets: | |
Estimated useful lives of intangible assets | 10 years |
Existing technology and related patents | Minimum | |
Estimated useful lives of intangible assets: | |
Estimated useful lives of intangible assets | 3 years |
Existing technology and related patents | Maximum | |
Estimated useful lives of intangible assets: | |
Estimated useful lives of intangible assets | 10 years |
Customer and distributor relationships | Minimum | |
Estimated useful lives of intangible assets: | |
Estimated useful lives of intangible assets | 5 years |
Customer and distributor relationships | Maximum | |
Estimated useful lives of intangible assets: | |
Estimated useful lives of intangible assets | 12 years |
Trade names | Minimum | |
Estimated useful lives of intangible assets: | |
Estimated useful lives of intangible assets | 5 years |
Trade names | Maximum | |
Estimated useful lives of intangible assets: | |
Estimated useful lives of intangible assets | 10 years |
Summary of Significant Accoun56
Summary of Significant Accounting Policies - Warranties and Deferred Revenue, Shipping and Handling, Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Warranty Costs and Deferred Revenue | |||
Period for which parts and labor of purchased equipment is warrantied | 1 year | ||
Shipping and handling costs | |||
Shipping and handling costs | $ 20.6 | $ 26.2 | $ 26.7 |
Advertising | |||
Advertising expenses | $ 12.9 | $ 10.7 | $ 9.6 |
Summary of Significant Accoun57
Summary of Significant Accounting Policies - Stock-Based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-Based Compensation | |||
Total stock-based compensation | $ 8 | $ 9.4 | $ 6.6 |
Estimated forfeiture rate (as a percent) | 5.80% | 5.10% | 7.00% |
Stock options | |||
Stock-Based Compensation | |||
Total stock-based compensation | $ 7.1 | $ 6.7 | $ 5.3 |
Risk-free interest rate, minimum (as a percent) | 1.58% | 1.78% | 1.07% |
Risk-free interest rate, maximum (as a percent) | 1.91% | 2.10% | 2.45% |
Expected life | 6 years 6 months | ||
Volatility (as a percent) | 54.90% | ||
Volatility, minimum (as a percent) | 35.10% | 53.07% | |
Volatility, maximum (as a percent) | 52.23% | 56.24% | |
Stock options | Minimum | |||
Stock-Based Compensation | |||
Vesting period | 3 years | ||
Expected life | 6 years | 6 years | |
Stock options | Maximum | |||
Stock-Based Compensation | |||
Vesting period | 5 years | ||
Expected life | 6 years 3 months | 6 years 3 months | |
Restricted stock | |||
Stock-Based Compensation | |||
Total stock-based compensation | $ 0.9 | $ 2.7 | $ 1.3 |
Summary of Significant Accoun58
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share | |||||||||||
Net income attributable to Bruker Corporation, as reported -basic | $ 101.6 | $ 56.7 | $ 80.1 | ||||||||
Net income attributable to Bruker Corporation, as reported -diluted | $ 101.6 | $ 56.7 | $ 80.1 | ||||||||
Weighted average shares outstanding: | |||||||||||
Weighted average shares outstanding-basic | 168.2 | 167.8 | 166.5 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock options and restricted stock units (in shares) | 0.9 | 1.7 | 2 | ||||||||
Weighted average shares outstanding-diluted | 169.1 | 169.5 | 168.5 | ||||||||
Net income per common share attributable to Bruker Corporation shareholders: | |||||||||||
Basic (in dollars per share) | $ 0.37 | $ 0.07 | $ 0.13 | $ 0.04 | $ 0.16 | $ 0.03 | $ 0.10 | $ 0.05 | $ 0.60 | $ 0.34 | $ 0.48 |
Diluted (in dollars per share) | $ 0.36 | $ 0.07 | $ 0.13 | $ 0.04 | $ 0.15 | $ 0.03 | $ 0.10 | $ 0.05 | $ 0.60 | $ 0.33 | $ 0.48 |
Summary of Significant Accoun59
Summary of Significant Accounting Policies - Antidilutive Securities (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock options | |||
Anti-dilutive securities | |||
Number of shares excluded from the computation of diluted earnings per share | 1.3 | 0.1 | 0.4 |
Summary of Significant Accoun60
Summary of Significant Accounting Policies - Share Repurchase Programs (Details) - USD ($) $ in Millions | 2 Months Ended | 7 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Nov. 30, 2015 | Dec. 31, 2015 | |
Share repurchase program | |||
Aggregate cost of common stock repurchased | $ 90 | ||
Anti-Dilutive Repurchase Program | |||
Share repurchase program | |||
Common stock repurchased during the period (in shares) | 1,245,000 | ||
Aggregate cost of common stock repurchased | $ 24.9 | ||
Repurchase Program | |||
Share repurchase program | |||
Common stock repurchased during the period (in shares) | 2,837,042 | ||
Aggregate cost of common stock repurchased | $ 65 | ||
Amount approved for repurchase of common stock | $ 225 | $ 225 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | 1 Months Ended | |||
Oct. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allocation of Consideration Transferred: | ||||
Goodwill | $ 130.6 | $ 127.8 | $ 127.4 | |
Jordan Valley Semiconductors, LTD | ||||
Consideration Transferred: | ||||
Cash paid | $ 35.4 | |||
Cash acquired | (6.8) | |||
Contingent consideration | 4.1 | |||
Total consideration transferred | 32.7 | |||
Allocation of Consideration Transferred: | ||||
Accounts receivable | 3.8 | |||
Inventories | 10.5 | |||
Other current assets | 2.2 | |||
Property, plant and equipment | 1.6 | |||
Goodwill | 6.3 | |||
Liabilities assumed | (6) | |||
Total consideration transferred | 32.7 | |||
Maximum potential payments related to the contingent consideration | 15 | |||
Jordan Valley Semiconductors, LTD | Customer relationships | ||||
Allocation of Consideration Transferred: | ||||
Intangible assets | $ 6.8 | |||
Amortization period for intangible assets acquired | 7 years | |||
Jordan Valley Semiconductors, LTD | Existing technology and related patents | ||||
Allocation of Consideration Transferred: | ||||
Intangible assets | $ 6 | |||
Amortization period for intangible assets acquired | 7 years | |||
Jordan Valley Semiconductors, LTD | Trade names | ||||
Allocation of Consideration Transferred: | ||||
Intangible assets | $ 1.5 | |||
Amortization period for intangible assets acquired | 7 years |
Fair Value of Financial Instr62
Fair Value of Financial Instruments - Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Short-term investments | $ 201.2 | $ 178 |
Significant Other Observable Inputs (Level 2) | ||
Liabilities: | ||
Fair value of the long-term fixed interest rate debt | 252.1 | 257.2 |
Recurring basis | ||
Assets: | ||
Cash equivalents | 67.9 | |
Short-term investments | 201.2 | 178 |
Restricted cash | 1.5 | 1.8 |
Embedded derivatives in purchase and delivery contracts | 0.5 | 0.6 |
Long-term restricted cash | 2.6 | 3.4 |
Total assets recorded at fair value | 205.8 | 251.7 |
Liabilities: | ||
Contingent consideration | 4.6 | 11.9 |
Foreign exchange contracts | 1.3 | 5.1 |
Embedded derivatives in purchase and delivery contracts | 0.5 | 0.4 |
Fixed price commodity contracts | 0.4 | 0.2 |
Total liabilities recorded at fair value | 6.8 | 17.6 |
Recurring basis | Quoted Prices in Active Markets Available (Level 1) | ||
Assets: | ||
Cash equivalents | 67.9 | |
Short-term investments | 201.2 | 178 |
Restricted cash | 1.5 | 1.8 |
Long-term restricted cash | 2.6 | 3.4 |
Total assets recorded at fair value | 205.3 | 251.1 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Embedded derivatives in purchase and delivery contracts | 0.5 | 0.6 |
Total assets recorded at fair value | 0.5 | 0.6 |
Liabilities: | ||
Foreign exchange contracts | 1.3 | 5.1 |
Embedded derivatives in purchase and delivery contracts | 0.5 | 0.4 |
Fixed price commodity contracts | 0.4 | 0.2 |
Total liabilities recorded at fair value | 2.2 | 5.7 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Contingent consideration | 4.6 | 11.9 |
Total liabilities recorded at fair value | $ 4.6 | $ 11.9 |
Fair Value of Financial Instr63
Fair Value of Financial Instruments - Contingent Consideration (Details) - Contingent consideration - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in contingent consideration liabilities | ||
Balance at the beginning of the period | $ 11.9 | $ 7 |
Current period additions | 4.1 | 4.7 |
Current period adjustments | (7.7) | 0.8 |
Current period settlements | (3.6) | (0.5) |
Foreign currency effect | (0.1) | (0.1) |
Balance at the end of the period | 4.6 | 11.9 |
Amount of changes to the fair value of the contingent consideration recognized in earnings | $ (7.7) | $ 0.8 |
Fair Value of Financial Instr64
Fair Value of Financial Instruments - Time and Call Deposits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments in time and call deposits | ||
Cash equivalents | $ 0 | |
Short-term investments | 201.2 | $ 178 |
Unrealized gains (losses) on available-for-sale securities | $ 0 | $ 0 |
Minimum | ||
Investments in time and call deposits | ||
Maturity of time deposits | 1 month | |
Period of ability to redeem invested amounts on call deposits | 31 days | |
Maximum | ||
Investments in time and call deposits | ||
Maturity of time deposits | 12 months | |
Period of ability to redeem invested amounts on call deposits | 95 days |
Accounts Receivable - Balances
Accounts Receivable - Balances (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Trade accounts receivable | ||
Gross accounts receivable | $ 243.8 | $ 303.3 |
Allowance for doubtful accounts | (9.1) | (10.1) |
Accounts receivable, net | $ 234.7 | $ 293.2 |
Accounts Receivable - Allowance
Accounts Receivable - Allowance (Details) - Allowance for doubtful accounts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of activity in the Company's allowance for doubtful accounts | |||
Balance at Beginning of Period | $ 10.1 | $ 7.9 | $ 7.9 |
Additions Charged to Expense | 2.1 | 5.5 | 1.3 |
Deductions Amounts Written Off | (2.5) | (2.5) | (1.3) |
Foreign Currency Impact | (0.6) | (0.8) | |
Balance at End of Period | $ 9.1 | $ 10.1 | $ 7.9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Inventories | |||
Raw materials | $ 158.8 | $ 159.5 | |
Work-in-process | 131.1 | 169.5 | |
Finished goods | 93.3 | 109.9 | |
Demonstration units | 38.8 | 38.5 | |
Inventories | 422 | 477.4 | |
Inventory-in-transit | 44.7 | 58.6 | |
Write-down of demonstration inventories to net realizable value | $ 19.4 | $ 28.2 | $ 32.7 |
Property, Plant and Equipment68
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, plant and equipment, Net | ||||
Property, plant and equipment, gross | $ 603.5 | $ 622.7 | ||
Less accumulated depreciation and amortization | (372.4) | (372.8) | ||
Property, plant and equipment, net | 231.1 | 249.9 | ||
Depreciation and amortization | 32.6 | 39.5 | $ 40.5 | |
BSI | CAM Division | ||||
Property, plant and equipment, Net | ||||
Period in which acceptable financial performance estimated to be unachievable | 2 years | |||
Impairment charge on property, plant and equipment | 5.5 | |||
BSI | Bruker BioSpin Group | ||||
Property, plant and equipment, Net | ||||
Impairment charge on property, plant and equipment | 2.1 | |||
BEST | ||||
Property, plant and equipment, Net | ||||
Impairment charge on property, plant and equipment | 5.1 | |||
Land | ||||
Property, plant and equipment, Net | ||||
Property, plant and equipment, gross | 27.6 | 29.7 | ||
Building and leasehold improvements | ||||
Property, plant and equipment, Net | ||||
Property, plant and equipment, gross | 261.9 | 272.1 | ||
Machinery, equipment, software and furniture and fixtures | ||||
Property, plant and equipment, Net | ||||
Property, plant and equipment, gross | $ 314 | $ 320.9 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill | ||
Balance at the beginning of the period | $ 127.8 | $ 127.4 |
Current period additions | 6.3 | 5.1 |
Current period adjustments | 0.5 | (0.1) |
Impairment | (0.7) | 0 |
Foreign currency impact | (3.3) | (4.6) |
Balance at the end of the period | 130.6 | $ 127.8 |
BSI | Bruker BioSpin Group | ||
Goodwill | ||
Impairment | $ (0.7) |
Goodwill and Intangible Asset70
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible assets: | |||
Gross Carrying Amount, intangible assets subject to amortization | $ 176.3 | $ 165.2 | |
Accumulated Amortization, intangible assets subject to amortization | (102.2) | (87.7) | |
Net Carrying Amount, intangible assets subject to amortization | 74.1 | 77.5 | |
Gross Carrying Amount, total intangible assets | 176.9 | 171.5 | |
Net Carrying Amount, total intangible assets | 74.7 | 83.8 | |
Amortization expense related to intangible assets subject to amortization | 20.7 | 20.2 | $ 20.8 |
BSI | CAM Division | |||
Intangible assets: | |||
Impairment charge on definite-lived intangible assets | 0.9 | ||
BSI | Bruker BioSpin Group | |||
Intangible assets: | |||
Impairment charge on definite-lived intangible assets | 1.8 | ||
In-process research and development | |||
Intangible assets: | |||
Gross Carrying Amount, intangible assets not subject to amortization | 0.6 | 6.3 | |
Net Carrying Amount, intangible assets not subject to amortization | 0.6 | 6.3 | |
Existing technology and related patents | |||
Intangible assets: | |||
Gross Carrying Amount, intangible assets subject to amortization | 154.5 | 149.8 | |
Accumulated Amortization, intangible assets subject to amortization | (95.5) | (81.7) | |
Net Carrying Amount, intangible assets subject to amortization | 59 | 68.1 | |
Customer relationships | |||
Intangible assets: | |||
Gross Carrying Amount, intangible assets subject to amortization | 18.4 | 13.4 | |
Accumulated Amortization, intangible assets subject to amortization | (5.9) | (5.6) | |
Net Carrying Amount, intangible assets subject to amortization | 12.5 | 7.8 | |
Non compete contracts | |||
Intangible assets: | |||
Gross Carrying Amount, intangible assets subject to amortization | 1.8 | 1.8 | |
Accumulated Amortization, intangible assets subject to amortization | (0.6) | (0.2) | |
Net Carrying Amount, intangible assets subject to amortization | 1.2 | 1.6 | |
Trade names | |||
Intangible assets: | |||
Gross Carrying Amount, intangible assets subject to amortization | 1.6 | 0.2 | |
Accumulated Amortization, intangible assets subject to amortization | (0.2) | $ (0.2) | |
Net Carrying Amount, intangible assets subject to amortization | $ 1.4 |
Goodwill and Intangible Asset71
Goodwill and Intangible Assets - Future Amortization (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Estimated future amortization expense related to amortizable intangible asset: | ||
2,016 | $ 21.3 | |
2,017 | 21.1 | |
2,018 | 16.8 | |
2,019 | 4.9 | |
2,020 | 4 | |
Thereafter | 6 | |
Net Carrying Amount, intangible assets subject to amortization | $ 74.1 | $ 77.5 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Current Liabilities | ||||
Deferred revenue | $ 77 | $ 89 | ||
Accrued compensation | 88.5 | 87.7 | ||
Accrued warranty | $ 21.6 | $ 26.7 | 19.6 | 21.6 |
Income taxes payable | 25.1 | 19.2 | ||
Other taxes payable | 25.4 | 17.6 | ||
Derivative liabilities | 2.2 | 5.7 | ||
Other accrued expenses | 65.7 | 60.6 | ||
Other current liabilities | $ 303.5 | $ 301.4 | ||
Changes in accrued warranty | ||||
Balance at the beginning of the year | 21.6 | 26.7 | ||
Accruals for warranties issued during the year | 21.1 | 19.5 | ||
Settlements of warranty claims | (21.7) | (22.5) | ||
Foreign currency impact | (1.4) | (2.1) | ||
Balance at the end of the year | $ 19.6 | $ 21.6 |
Debt - Components (Details)
Debt - Components (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt | ||
Total debt | $ 266.7 | $ 355 |
Current portion of long-term debt | (0.7) | (0.8) |
Total long-term debt, less current portion | 266 | 354.2 |
US Dollar notes under the Note Purchase Agreement | ||
Debt | ||
Total debt | 240 | 240 |
Capital lease obligations and other loans | ||
Debt | ||
Total debt | 1.7 | 2.5 |
2015 Credit Agreement | US Dollar revolving loans | ||
Debt | ||
Total debt | $ 25 | |
Amended Credit Agreement | US Dollar revolving loans | ||
Debt | ||
Total debt | $ 112.5 |
Debt - Credit Agreements (Detai
Debt - Credit Agreements (Details) $ in Millions | 2 Months Ended | 10 Months Ended | 12 Months Ended |
Dec. 31, 2015USD ($) | Oct. 26, 2015USD ($) | Dec. 31, 2015USD ($) | |
Revolving Loans | |||
Debt | |||
Maximum commitment | $ 734.4 | $ 734.4 | |
Amended Credit Agreement | US Dollar revolving loans | |||
Debt | |||
Maximum commitment | $ 250 | ||
Amended Credit Agreement | US Dollar revolving loans | Minimum | |||
Debt | |||
Interest rate added to base rate (as a percent) | 0.80% | ||
Facility fee (as a percent) | 0.20% | ||
Amended Credit Agreement | US Dollar revolving loans | Maximum | |||
Debt | |||
Interest rate added to base rate (as a percent) | 1.65% | ||
Facility fee (as a percent) | 0.35% | ||
Amended Credit Agreement | US Dollar revolving loans | Prime rate | |||
Debt | |||
Variable interest rate base | prime rate | ||
Amended Credit Agreement | US Dollar revolving loans | Federal funds rate | |||
Debt | |||
Variable interest rate base | federal funds rate | ||
Interest rate added to base rate (as a percent) | 0.50% | ||
Amended Credit Agreement | US Dollar revolving loans | Adjusted LIBOR | |||
Debt | |||
Variable interest rate base | adjusted LIBOR | ||
Interest rate added to base rate (as a percent) | 1.00% | ||
Amended Credit Agreement | US Dollar revolving loans | LIBOR | |||
Debt | |||
Variable interest rate base | LIBOR | ||
2015 Credit Agreement | US Dollar revolving loans | |||
Debt | |||
Maximum commitment | $ 500 | $ 500 | |
Maximum leverage ratio allowed | 3.5 | ||
Minimum interest coverage ratio required | 2.5 | ||
Actual leverage ratio | 1 | ||
Actual interest coverage ratio | 14.9 | ||
2015 Credit Agreement | US Dollar revolving loans | Minimum | |||
Debt | |||
Facility fee (as a percent) | 0.10% | 0.10% | |
2015 Credit Agreement | US Dollar revolving loans | Maximum | |||
Debt | |||
Facility fee (as a percent) | 0.20% | 0.20% | |
2015 Credit Agreement | US Dollar revolving loans | Greatest of prime rate, federal funds rate plus spread and adjusted LIBOR plus spread | Minimum | |||
Debt | |||
Interest rate added to base rate (as a percent) | 0.00% | ||
2015 Credit Agreement | US Dollar revolving loans | Greatest of prime rate, federal funds rate plus spread and adjusted LIBOR plus spread | Maximum | |||
Debt | |||
Interest rate added to base rate (as a percent) | 0.30% | ||
2015 Credit Agreement | US Dollar revolving loans | Prime rate | |||
Debt | |||
Variable interest rate base | prime rate | ||
2015 Credit Agreement | US Dollar revolving loans | Federal funds rate | |||
Debt | |||
Variable interest rate base | federal funds rate | ||
Interest rate added to base rate (as a percent) | 0.50% | ||
2015 Credit Agreement | US Dollar revolving loans | Adjusted LIBOR | |||
Debt | |||
Variable interest rate base | adjusted LIBOR | ||
Interest rate added to base rate (as a percent) | 1.00% | ||
2015 Credit Agreement | US Dollar revolving loans | LIBOR | |||
Debt | |||
Variable interest rate base | LIBOR | ||
2015 Credit Agreement | US Dollar revolving loans | LIBOR | Minimum | |||
Debt | |||
Interest rate added to base rate (as a percent) | 0.90% | ||
2015 Credit Agreement | US Dollar revolving loans | LIBOR | Maximum | |||
Debt | |||
Interest rate added to base rate (as a percent) | 1.30% |
Debt - Revolving Loan Arrangeme
Debt - Revolving Loan Arrangements (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Revolving Loans | ||
Revolving loans | ||
Total Amount Committed by Lenders | $ 734.4 | |
Outstanding Borrowings | 25 | |
Outstanding Letters of Credit | 137.7 | $ 150.3 |
Total Amount Available | 571.7 | |
Other lines of credit | ||
Revolving loans | ||
Total Amount Committed by Lenders | 234.4 | |
Outstanding Letters of Credit | 136.7 | |
Total Amount Available | $ 97.7 | |
2015 Credit Agreement | US Dollar revolving loans | ||
Revolving loans | ||
Weighted Average Interest Rate (as a percent) | 1.50% | |
Total Amount Committed by Lenders | $ 500 | |
Outstanding Borrowings | 25 | |
Outstanding Letters of Credit | 1 | |
Total Amount Available | $ 474 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - US Dollar notes under the Note Purchase Agreement $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($) | Jan. 31, 2012USD ($) | |
Debt | ||
Senior notes | $ 240 | |
Additional aggregate principal amount that may be issued | $ 600 | |
Minimum percentage of original aggregate principal that may be prepaid | 10.00% | |
Prepayment price as percentage of principal amount | 100.00% | |
Prepayment price as percentage of principal amount, in the event of a change in control | 100.00% | |
Maximum leverage ratio allowed | 3.50 | |
Period for interest coverage ratio | 1 year | |
Minimum interest coverage ratio required | 2.50 | |
Priority debt as a percentage of consolidated net worth | 25.00% | |
Actual leverage ratio | 1 | |
Actual interest coverage ratio | 14.9 | |
Minimum | ||
Debt | ||
Written notice period to holders of the Notes | 30 days | |
Maximum | ||
Debt | ||
Written notice period to holders of the Notes | 60 days | |
3.16% Series 2012A Senior Notes, Tranche A, due January 18, 2017 | ||
Debt | ||
Senior notes | $ 20 | |
Interest rate, stated percentage | 3.16% | |
3.74% Series 2012A Senior Notes, Tranche B, due January 18, 2019 | ||
Debt | ||
Senior notes | $ 15 | |
Interest rate, stated percentage | 3.74% | |
4.31% Series 2012A Senior Notes, Tranche C, due January 18, 2022 | ||
Debt | ||
Senior notes | $ 105 | |
Interest rate, stated percentage | 4.31% | |
4.46% Series 2012A Senior Notes, Tranche D, due January 18, 2024 | ||
Debt | ||
Senior notes | $ 100 | |
Interest rate, stated percentage | 4.46% |
Debt - Maturities (Details)
Debt - Maturities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Annual maturities of debt: | |||
2,016 | $ 0.7 | ||
2,017 | 20.1 | ||
2,018 | 0.2 | ||
2,019 | 15.2 | ||
2,020 | 25.1 | ||
Thereafter | 205.4 | ||
Total debt | 266.7 | $ 355 | |
Interest expense | $ 13 | $ 13.3 | $ 13.4 |
Derivative Instruments and He78
Derivative Instruments and Hedging Activities - Risk Management (Details) € in Millions, ¥ in Millions, SFr in Millions, $ in Millions | Dec. 31, 2015CHF (SFr) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014JPY (¥) | Dec. 31, 2014CHF (SFr) | Dec. 31, 2014EUR (€) | Dec. 31, 2014USD ($) |
Embedded derivatives in purchase and delivery contracts | |||||||
Derivative instruments and hedging activities | |||||||
Notional amount of derivative sale contracts | $ 59 | $ 41.1 | |||||
Notional amount of derivative purchase contracts | 4.1 | 8.7 | |||||
Fixed price commodity contracts | |||||||
Derivative instruments and hedging activities | |||||||
Notional Amount | 2 | 2.7 | |||||
Revolving Loans | |||||||
Derivative instruments and hedging activities | |||||||
Amount outstanding | 25 | ||||||
Not designated as hedging instruments | Foreign exchange contracts | |||||||
Derivative instruments and hedging activities | |||||||
Notional Amount | 36.2 | 99.8 | |||||
Fair Value of Liabilities | 1.3 | 5.1 | |||||
Not designated as hedging instruments | Foreign exchange contracts | US Dollar:EUR | |||||||
Derivative instruments and hedging activities | |||||||
Notional Amount | € 21.1 | 24.2 | € 43.3 | 55.4 | |||
Fair Value of Liabilities | 1.2 | 2.9 | |||||
Not designated as hedging instruments | Foreign exchange contracts | EUR:US Dollar | |||||||
Derivative instruments and hedging activities | |||||||
Notional Amount | 0.3 | ||||||
Not designated as hedging instruments | Foreign exchange contracts | GBP:EUR | |||||||
Derivative instruments and hedging activities | |||||||
Notional Amount | € 0.1 | 0.1 | |||||
Not designated as hedging instruments | Foreign exchange contracts | EUR:YEN | |||||||
Derivative instruments and hedging activities | |||||||
Notional Amount | ¥ 5.7 | 0.1 | |||||
Not designated as hedging instruments | Foreign exchange contracts | US Dollar:CHF | |||||||
Derivative instruments and hedging activities | |||||||
Notional Amount | SFr 5.9 | 6 | SFr 41.4 | 43.9 | |||
Fair Value of Liabilities | 0.1 | $ 2.2 | |||||
Not designated as hedging instruments | Foreign exchange contracts | ILS:US Dollar | |||||||
Derivative instruments and hedging activities | |||||||
Notional Amount | 6 | ||||||
2015 Credit Agreement | US Dollar revolving loans | |||||||
Derivative instruments and hedging activities | |||||||
Amount outstanding | $ 25 |
Derivative Instruments and He79
Derivative Instruments and Hedging Activities - Fair Values (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Foreign exchange contracts | Other current liabilities. | ||
Derivative instruments and hedging activities | ||
Derivative liabilities | $ 1.3 | $ 5.1 |
Embedded derivatives in purchase and delivery contracts | Other current assets | ||
Derivative instruments and hedging activities | ||
Derivative assets | 0.5 | 0.6 |
Embedded derivatives in purchase and delivery contracts | Other current liabilities. | ||
Derivative instruments and hedging activities | ||
Derivative liabilities | 0.5 | 0.4 |
Fixed price commodity contracts | Other current liabilities. | ||
Derivative instruments and hedging activities | ||
Derivative liabilities | $ 0.4 | $ 0.2 |
Derivative Instruments and He80
Derivative Instruments and Hedging Activities - Gains and Losses (Details) - Not designated as hedging instruments - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative instruments and hedging activities | |||
Impact on net income of unrealized gains and losses resulting from changes in fair value of derivative instruments | $ 3.4 | $ (7.3) | $ 0.6 |
Foreign exchange contracts | |||
Derivative instruments and hedging activities | |||
Impact on net income of unrealized gains and losses resulting from changes in fair value of derivative instruments | 3.8 | (7.4) | 0.5 |
Embedded derivatives in purchase and delivery contracts | |||
Derivative instruments and hedging activities | |||
Impact on net income of unrealized gains and losses resulting from changes in fair value of derivative instruments | (0.2) | 0.4 | (0.2) |
Fixed price commodity contracts | |||
Derivative instruments and hedging activities | |||
Impact on net income of unrealized gains and losses resulting from changes in fair value of derivative instruments | $ (0.2) | $ (0.3) | $ 0.3 |
Income Taxes - Income Before Ta
Income Taxes - Income Before Taxes and Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Domestic and foreign components of income before taxes: | |||
Domestic | $ 31.6 | $ (83.2) | $ (42.4) |
Foreign | 96.4 | 184.5 | 167 |
Income before income taxes and noncontrolling interest in consolidated subsidiaries | 128 | 101.3 | 124.6 |
Current income tax (benefit) expense: | |||
Federal | 5.7 | (1.1) | 0.2 |
State | 1.3 | 0.4 | 0.2 |
Foreign | 50 | 50.8 | 35 |
Total current income tax expense | 57 | 50.1 | 35.4 |
Deferred income tax (benefit) expense: | |||
Federal | (31.1) | 0.7 | (1.8) |
State | (2.4) | (0.1) | (0.6) |
Foreign | (0.4) | (9) | 9.8 |
Total deferred income tax (benefit) expense | (33.9) | (8.4) | 7.4 |
Income tax provision | $ 23.1 | $ 41.7 | $ 42.8 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of United States federal statutory rate to effective income tax rate | |||
Statutory tax rate | 35.00% | 35.00% | 35.00% |
Foreign tax rate differential | (3.60%) | (12.10%) | (10.20%) |
Permanent differences | (2.00%) | 9.60% | 12.00% |
Tax contingencies | 2.30% | (0.90%) | (1.10%) |
Change in tax rates | 1.30% | (1.60%) | 0.10% |
Withholding taxes | 8.10% | 0.60% | 0.10% |
State income taxes, net of federal benefits | (0.90%) | 0.20% | 0.10% |
Purchase accounting | 0.80% | 0.70% | 0.80% |
Tax credits | (1.10%) | (4.30%) | (8.60%) |
Other | (2.70%) | (1.20%) | 0.60% |
Change in valuation allowance for unbenefited losses | (19.20%) | 15.20% | 5.50% |
Effective tax rate | 18.00% | 41.20% | 34.30% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred tax assets: | ||
Accounts receivable | $ 2 | $ 1 |
Accrued expenses | 4.7 | 0.8 |
Compensation | 30.1 | 21 |
Investments | 1.4 | 0.6 |
Deferred revenue | 0.2 | 3.9 |
Net operating loss carryforwards | 16 | 30.3 |
Fixed assets | 0.8 | |
Inventory | 2.9 | |
Foreign tax and other tax credit carryforwards | 32.3 | 21.8 |
Unrealized currency gain/loss | 6.1 | 0.2 |
Warranty reserve | 1.1 | |
Other | 7.5 | 5.7 |
Gross deferred tax assets | 104 | 86.4 |
Less valuation allowance | (37.2) | (57.4) |
Total deferred tax assets | 66.8 | 29 |
Deferred tax liabilities: | ||
Accounts receivable | 0.6 | 2.9 |
Fixed assets | 1.9 | |
Foreign statutory reserves | 5.3 | 4.5 |
Investments | 0.1 | |
Inventory | 0.3 | |
Intangibles | 9.4 | 13.1 |
Accrued expenses | 8 | |
Total deferred tax liabilities | 23.3 | 22.8 |
Net deferred tax assets | 43.5 | $ 6.2 |
Decrease in valuation allowance, primarily attributable to U.S. net operating loss and foreign tax credit usage as a result of the repatriation of foreign earnings to United States | 20.1 | |
Decrease in valuation allowance due to change in judgment regarding realizability of deferred tax assets | 20.8 | |
Repatriation of foreign earnings to the United States | $ 235.3 |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) $ in Millions | Dec. 31, 2015USD ($) |
State | |
Net operating loss carryforwards | |
Net operating loss carryforwards | $ 3 |
Foreign | German Trade Tax | |
Net operating loss carryforwards | |
Net operating loss carryforwards | 42.4 |
Foreign | Other foreign countries | |
Net operating loss carryforwards | |
Net operating loss carryforwards | $ 42.9 |
Income Taxes - Tax Credit Carry
Income Taxes - Tax Credit Carryforwards (Details) $ in Millions | Dec. 31, 2015USD ($) |
State | Research and development | |
Tax credits available to offset future tax liabilities | |
Tax credits | $ 7.1 |
U.S. | |
Tax credits available to offset future tax liabilities | |
Tax credits | 27.8 |
U.S. | Research and development | |
Tax credits available to offset future tax liabilities | |
Tax credits | 14 |
U.S. | Foreign tax credits | |
Tax credits available to offset future tax liabilities | |
Tax credits | $ 13.8 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes | |||
Undistributed earnings of foreign subsidiaries on which U.S. income taxes are not provided | $ 1,456.1 | ||
Unrecognized deferred U.S. income taxes on undistributed earnings of foreign subsidiaries | 120 | ||
Gross unrecognized tax benefits, excluding interest | 26.9 | ||
Portion of unrecognized tax benefits, excluding interest, which if recognized, would result in a reduction of the effective tax rate | 13 | ||
Reasonably possible reduction in unrecognized tax benefits due to statutes of limitations expiring and favorably settling with taxing authorities | 5.2 | ||
Reconciliation of beginning and ending amount of unrecognized tax benefits | |||
Gross unrecognized tax benefits at the beginning of the year | 40 | $ 51.7 | $ 61.1 |
Gross decreases - tax positions in prior periods | (1.5) | (6.4) | (0.5) |
Gross increases - current period tax positions | 0.4 | 0.7 | |
Gross decreases - current period tax positions | (0.3) | ||
Settlements | (2.7) | (0.6) | (7.1) |
Lapse of statutes | (3) | (4.4) | (2.5) |
Gross unrecognized tax benefits at the end of the year | 33.2 | 40 | $ 51.7 |
Accrued interest and penalties related to uncertain tax positions | 4.7 | 3.6 | |
Penalties and interest expense relating to unrecognized tax benefits | $ 1.4 | $ 0.1 |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of net periodic benefit costs: | |||
Service cost | $ 7.2 | $ 4.8 | $ 5.5 |
Interest cost | 2.5 | 4.6 | 4.1 |
Expected return on plan assets | (2.3) | (4.1) | (3.8) |
Settlement loss recognized | 10.2 | ||
Amortization of net loss | 4.1 | 0.1 | 2.2 |
Net periodic benefit costs | 21.7 | 5.4 | 8 |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 207.2 | 183.1 | |
Service cost | 7.2 | 4.8 | 5.5 |
Interest cost | 2.5 | 4.6 | 4.1 |
Plan participant contributions | 3.9 | 3.8 | |
Plan curtailments | (0.3) | (0.6) | |
Benefits paid | 1.3 | (7.1) | |
Actuarial loss (gain) | 7.5 | 42.1 | |
Plan amendments | 14.7 | ||
Plan settlements | (39.7) | ||
Premiums paid | (1.4) | ||
Plan combinations | 0.9 | ||
Impact of foreign currency exchange rates | (4.6) | (23.5) | |
Benefit obligation at end of year | 199.2 | 207.2 | 183.1 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 139.6 | 141 | |
Return on plan assets | (3.7) | 12 | |
Plan participant and employer contributions | 9.5 | 9.5 | |
Benefits paid | 1.3 | (7.1) | |
Plan settlements | (39.7) | ||
Premiums paid | (1.4) | ||
Plan combinations | 0.1 | ||
Impact of foreign currency exchange rates | 0.4 | (15.8) | |
Fair value of plan assets at end of year | 106.1 | 139.6 | $ 141 |
Net funded status | (93.1) | (67.6) | |
Accumulated benefit obligation | 189.7 | 198.4 | |
Amounts recognized in the accompanying consolidated balance sheets: | |||
Current liabilities | (1.5) | (1.4) | |
Non-current liabilities | (91.6) | (66.2) | |
Net amount recognized | (93.1) | (67.6) | |
Pre-tax amounts recognized in accumulated other comprehensive income: | |||
Prior service cost | (12.2) | ||
Net actuarial loss | (48.5) | (48.8) | |
Accumulated other comprehensive loss | (60.7) | (48.8) | |
Accumulated contributions in excess of net periodic benefit cost | (32.4) | (18.8) | |
Net amount recognized | (93.1) | $ (67.6) | |
Accumulated other comprehensive income expected to be recognized as amortization of net loss within net periodic benefit cost in 2016 | $ 4.1 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions, Plan Assets and Future Benefit Payments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Assumptions used to determine projected benefit obligations | |||
Expected return on plan assets (as a percent) | 2.90% | 3.00% | |
Plan Assets: | |||
Total plan assets | $ 106.1 | $ 139.6 | $ 141 |
Estimated future benefit payments | |||
2,016 | 2.3 | ||
2,017 | 2.4 | ||
2,018 | 2.7 | ||
2,019 | 3.5 | ||
2,020 | 3.8 | ||
2021-2025 | $ 24.4 | ||
Minimum | |||
Assumptions used to determine projected benefit obligations | |||
Discount rate (as a percent) | 0.30% | 0.70% | 0.70% |
Expected return on plan assets (as a percent) | 0.00% | ||
Expected rate of compensation increase (as a percent) | 1.00% | 1.00% | 1.00% |
Maximum | |||
Assumptions used to determine projected benefit obligations | |||
Discount rate (as a percent) | 2.50% | 2.40% | 3.80% |
Expected return on plan assets (as a percent) | 3.00% | ||
Expected rate of compensation increase (as a percent) | 3.00% | 3.00% | 3.00% |
Cash and cash equivalents | |||
Plan Assets: | |||
Total plan assets | $ 138.2 | ||
Debt securities: | |||
Plan Assets: | |||
Total plan assets | $ 1.2 | 1.1 | |
Debt securities: Foreign corporations | |||
Plan Assets: | |||
Total plan assets | 0.7 | 0.4 | |
Debt securities: Foreign governments | |||
Plan Assets: | |||
Total plan assets | 0.5 | 0.7 | |
Equity Securities: | |||
Plan Assets: | |||
Total plan assets | 0.1 | 0.1 | |
Equity Securities: Foreign corporations | |||
Plan Assets: | |||
Total plan assets | 0.1 | 0.1 | |
Real estate | |||
Plan Assets: | |||
Total plan assets | 0.1 | 0.1 | |
Swiss Life Collective BVG Foundation | |||
Plan Assets: | |||
Total plan assets | $ 104.7 | ||
Guaranteed minimum return on mandatory withdrawal portion of fund (as a percent) | 1.75% | ||
Guaranteed minimum return on non-mandatory withdrawal portion of fund (as a percent) | 1.25% | ||
The Company's percentage of returns above the guaranteed minimum | 90.00% | ||
Percentage of returns above the guaranteed minimum to be retained by Swiss Life | 10.00% | ||
Swiss Life Collective BVG Foundation | Bonds including cash | |||
Plan Assets: | |||
Target allocation (as a percent) | 75.00% | ||
Swiss Life Collective BVG Foundation | Equity Securities: | |||
Plan Assets: | |||
Target allocation (as a percent) | 5.00% | ||
Swiss Life Collective BVG Foundation | Real estate and mortgages | |||
Plan Assets: | |||
Target allocation (as a percent) | 20.00% | ||
Other | |||
Plan Assets: | |||
Total plan assets | 0.1 | ||
Quoted Prices in Active Markets Available (Level 1) | |||
Plan Assets: | |||
Total plan assets | $ 1.4 | 139.6 | |
Quoted Prices in Active Markets Available (Level 1) | Cash and cash equivalents | |||
Plan Assets: | |||
Total plan assets | 138.2 | ||
Quoted Prices in Active Markets Available (Level 1) | Debt securities: | |||
Plan Assets: | |||
Total plan assets | 1.2 | 1.1 | |
Quoted Prices in Active Markets Available (Level 1) | Debt securities: Foreign corporations | |||
Plan Assets: | |||
Total plan assets | 0.7 | 0.4 | |
Quoted Prices in Active Markets Available (Level 1) | Debt securities: Foreign governments | |||
Plan Assets: | |||
Total plan assets | 0.5 | 0.7 | |
Quoted Prices in Active Markets Available (Level 1) | Equity Securities: | |||
Plan Assets: | |||
Total plan assets | 0.1 | 0.1 | |
Quoted Prices in Active Markets Available (Level 1) | Equity Securities: Foreign corporations | |||
Plan Assets: | |||
Total plan assets | 0.1 | 0.1 | |
Quoted Prices in Active Markets Available (Level 1) | Real estate | |||
Plan Assets: | |||
Total plan assets | 0.1 | 0.1 | |
Quoted Prices in Active Markets Available (Level 1) | Other | |||
Plan Assets: | |||
Total plan assets | $ 0.1 | ||
Significant Other Observable Inputs (Level 2) | |||
Plan Assets: | |||
Total plan assets | 104.7 | ||
Significant Other Observable Inputs (Level 2) | Swiss Life Collective BVG Foundation | |||
Plan Assets: | |||
Total plan assets | $ 104.7 |
Employee Benefit Plans - Defi89
Employee Benefit Plans - Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Benefit Plans | |||
Company's contributions to defined contribution plans | $ 6.5 | $ 7.1 | $ 5.3 |
Commitments and Contingencies -
Commitments and Contingencies - Leases, Purchase Commitments, License Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies | |||
Total rental expense under operating leases | $ 23 | $ 22.8 | $ 24.6 |
Future minimum lease payments under non-cancelable operating leases | |||
2,016 | 17 | ||
2,017 | 12 | ||
2,018 | 8.4 | ||
2,019 | 6 | ||
2,020 | 5 | ||
Thereafter | 13.1 | ||
Total | 61.5 | ||
Capital Leases | |||
Cost of the buildings under the capital leases | 2.7 | 7.5 | |
Accumulated amortization of the leased buildings | 0.7 | 2.9 | |
Unconditional Purchase Commitments | |||
Aggregate amount of unconditional purchase commitments | 109.5 | ||
License Agreements | |||
Income from cross-licensing agreements | 2.5 | 2.6 | 9.5 |
Licensing fees | $ 3.2 | $ 3.3 | $ 4 |
Commitments and Contingencies91
Commitments and Contingencies - Contingencies (Details) - USD ($) $ in Millions | Dec. 15, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Revolving Loans | |||
Commitments and contingencies | |||
Bank guarantees primarily for customer advances | $ 137.7 | $ 150.3 | |
FCPA compliance in China and Hong Kong | |||
Commitments and contingencies | |||
Payment made | $ 2.4 | ||
Payment of disgorgement | 1.7 | ||
Prejudgment interest | 0.3 | ||
Penalty paid | $ 0.4 | ||
Legal | |||
Commitments and contingencies | |||
Accruals for potential contingencies | $ 0 | $ 0 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2000 | |
Stock options | Minimum | ||||
Stock-Based Compensation | ||||
Vesting period | 3 years | |||
Stock options | Maximum | ||||
Stock-Based Compensation | ||||
Vesting period | 5 years | |||
The 2000 Plan | ||||
Stock-Based Compensation | ||||
Plan expiration term | 10 years | |||
Bruker Corporation Stock Plan | ||||
Stock-Based Compensation | ||||
Common stock authorized for issuance (in shares) | 8,000,000 | |||
Bruker Corporation Stock Plan | Minimum | ||||
Stock-Based Compensation | ||||
Vesting period | 3 years | |||
Bruker Corporation Stock Plan | Maximum | ||||
Stock-Based Compensation | ||||
Vesting period | 5 years | |||
Bruker Corporation Stock Plan | Stock options | ||||
Stock options, Shares Subject to Options | ||||
Outstanding at the beginning of the period (in shares) | 4,810,588 | |||
Granted (in shares) | 1,107,477 | |||
Exercised (in shares) | (926,042) | |||
Forfeited (in shares) | (354,744) | |||
Outstanding at the end of the period (in shares) | 4,637,279 | 4,810,588 | ||
Exercisable at the end of the period (in shares) | 2,355,197 | |||
Exercisable and expected to vest at the end of the period (in shares) | 4,504,918 | |||
Stock options, Weighted Average Option Price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 15.24 | |||
Granted (in dollars per share) | 19.81 | |||
Exercised (in dollars per share) | 11.81 | |||
Forfeited (in dollars per share) | 19.17 | |||
Outstanding at the end of the period (in dollars per share) | 16.72 | $ 15.24 | ||
Exercisable at the end of the period (in dollars per share) | 14.08 | |||
Exercisable and expected to vest at the end of the period (in dollars per share) | $ 16.64 | |||
Stock options, Weighted Average Remaining Contractual Term | ||||
Outstanding at the end of the period | 6 years 6 months | |||
Exercisable at the end of the period | 4 years 8 months 12 days | |||
Exercisable and expected to vest at the end of the period | 6 years 6 months | |||
Stock options, Aggregate Intrinsic Value | ||||
Outstanding at the end of the period (in dollars) | $ 35 | |||
Exercisable at the end of the period (in dollars) | 24 | |||
Exercisable and expected to vest at the end of the period (in dollars) | $ 34.4 | |||
Fair value of the Company's common stock price (in dollars per share) | $ 24.27 | |||
Weighted average fair values of options granted (in dollars per share) | $ 7.82 | $ 10.81 | $ 10.37 | |
Intrinsic value of options exercised | $ 8.2 | $ 10 | $ 8.1 | |
Additional share-based compensation disclosures | ||||
Unrecognized pre-tax stock-based compensation expense | $ 16.7 | |||
Weighted average remaining service period | 2 years 2 months 12 days | |||
Bruker Corporation Stock Plan | Restricted stock | ||||
Restricted stock, Number of Shares | ||||
Outstanding at the beginning of the period (in shares) | 309,725 | |||
Granted (in shares) | 135,677 | |||
Vested (in shares) | (56,395) | |||
Forfeited (in shares) | (145,857) | |||
Outstanding at the end of the period (in shares) | 243,150 | 309,725 | ||
Restricted stock, Weighted Average Grant Date Fair Value | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 17.20 | |||
Granted (in dollars per share) | 19.83 | |||
Vested (in dollars per share) | 17.02 | |||
Forfeited (in dollars per share) | 17.42 | |||
Outstanding at the end of the period (in dollars per share) | $ 18.58 | $ 17.20 | ||
Additional share-based compensation disclosures | ||||
Total fair value of shares vested | $ 1 | $ 3 | $ 1.4 | |
Unrecognized pre-tax stock-based compensation expense | $ 3.9 | |||
Weighted average remaining service period | 2 years 9 months 18 days | |||
Bruker Corporation Stock Plan | Restricted stock | Minimum | ||||
Stock-Based Compensation | ||||
Period of service restrictions | 4 years | |||
Bruker Corporation Stock Plan | Restricted stock | Maximum | ||||
Stock-Based Compensation | ||||
Period of service restrictions | 5 years |
Accumulated Other Comprehensi93
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of the components of accumulated other comprehensive income, net of tax | |||
Balance at beginning of period | $ 28.2 | $ 182.4 | $ 137.8 |
Other comprehensive income (loss) | (86.4) | (154.3) | 42.3 |
Realized loss on reclassification | 14 | 0.1 | 2.3 |
Balance at end of period | (44.2) | 28.2 | 182.4 |
Foreign Currency Translation | |||
Summary of the components of accumulated other comprehensive income, net of tax | |||
Balance at beginning of period | 66 | 197.6 | 170.3 |
Other comprehensive income (loss) | (62.8) | (131.6) | 27.3 |
Balance at end of period | 3.2 | 66 | 197.6 |
Pension Liability Adjustment | |||
Summary of the components of accumulated other comprehensive income, net of tax | |||
Balance at beginning of period | (37.8) | (15.2) | (32.5) |
Other comprehensive income (loss) | (23.6) | (22.7) | 15 |
Realized loss on reclassification | 14 | 0.1 | 2.3 |
Balance at end of period | $ (47.4) | $ (37.8) | $ (15.2) |
Other Charges, Net - Components
Other Charges, Net - Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Charges, Net | |||
Acquisition-related expenses (income), net | $ (7.2) | $ 2.9 | $ 3.6 |
Professional fees incurred in connection with internal investigation | 0.4 | 3.2 | 6.1 |
Pension settlement charge | 10.2 | ||
Information technology transformation costs | 8.9 | 4 | |
Restructuring charges | 8.1 | 11.1 | 18.2 |
Factory relocation charges | 0.7 | ||
Other Charges, net | $ 20.4 | $ 21.2 | $ 28.6 |
Other Charges, Net - Restructur
Other Charges, Net - Restructuring Plans (Details) - USD ($) $ in Millions | 12 Months Ended | 18 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Restructuring charges | ||||
Restructuring charges | $ 29.3 | $ 36.1 | $ 25.3 | |
Gain (loss) on disposal of product line | (0.2) | 8.3 | 0.9 | |
Inventory provisions for inventory write-downs | 7 | 11.8 | 2.1 | |
Severance costs | 15.9 | 15.5 | 17.9 | |
Exit related costs | 6.4 | 8.8 | 5.3 | |
Cost of Revenue | ||||
Restructuring charges | ||||
Restructuring charges | 21.2 | 25 | 7.1 | |
Other Charges | ||||
Restructuring charges | ||||
Restructuring charges | 8.1 | 11.1 | 18.2 | |
BSI | ||||
Restructuring charges | ||||
Restructuring charges | $ 28.4 | 36.1 | 23 | |
BSI | CAM Division | ||||
Restructuring charges | ||||
Restructuring charges | $ 18.8 | |||
Inventory provisions for inventory write-downs | 10.3 | |||
Severance and exit costs | 8.5 | |||
Impairment charge on property, plant and equipment | 5.5 | |||
BSI | CAM Division | Interest and other income expense | ||||
Restructuring charges | ||||
Gain (loss) on disposal of product line | 8 | |||
BSI | Bruker BioSpin Group | ||||
Restructuring charges | ||||
Expected reduction in employee headcount (as a percent) | 9.00% | |||
Restructuring charges | $ 14.1 | |||
Inventory provisions for inventory write-downs | 2.1 | |||
Severance and exit costs | 12 | |||
Impairment charge on property, plant and equipment | 2.1 | |||
BSI | Bruker BioSpin Group | Cost of Revenue | ||||
Restructuring charges | ||||
Restructuring charges | 12.3 | |||
BSI | Bruker BioSpin Group | Other Charges | ||||
Restructuring charges | ||||
Restructuring charges | 1.8 | |||
BSI | Bruker BioSpin Group | Minimum | Employee separation and facility exit costs | ||||
Restructuring charges | ||||
Expected restructuring and related one-time charges | 3 | 3 | ||
BSI | Bruker BioSpin Group | Maximum | Employee separation and facility exit costs | ||||
Restructuring charges | ||||
Expected restructuring and related one-time charges | 5 | $ 5 | ||
BEST | ||||
Restructuring charges | ||||
Restructuring charges | $ 0.9 | 36.1 | $ 2.3 | |
Impairment charge on property, plant and equipment | $ 5.1 |
Other Charges, Net - Restruct96
Other Charges, Net - Restructuring Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in the restructuring reserves | |||
Balance at the beginning of the period | $ 16.1 | $ 11.5 | |
Restructuring charges | 29.3 | 36.1 | $ 25.3 |
Cash payments | (18) | (22.9) | |
Non-cash adjustments | (2.9) | (7.5) | |
Foreign currency impact | (1.4) | (1.1) | |
Balance at the end of the period | 23.1 | 16.1 | 11.5 |
Pension settlement charge | 10.2 | ||
Severance | |||
Changes in the restructuring reserves | |||
Balance at the beginning of the period | 7.1 | 8.4 | |
Restructuring charges | 15.9 | 15.5 | |
Cash payments | (11.9) | (14.6) | |
Non-cash adjustments | (0.2) | (1.4) | |
Foreign currency impact | (0.6) | (0.8) | |
Balance at the end of the period | 10.3 | 7.1 | 8.4 |
Exit Costs | |||
Changes in the restructuring reserves | |||
Balance at the beginning of the period | 1.3 | 1.1 | |
Restructuring charges | 6.4 | 8.8 | |
Cash payments | (5.1) | (8.2) | |
Non-cash adjustments | (0.2) | (0.3) | |
Foreign currency impact | (0.1) | ||
Balance at the end of the period | 2.4 | 1.3 | 1.1 |
Provisions for Excess Inventory | |||
Changes in the restructuring reserves | |||
Balance at the beginning of the period | 7.7 | 2 | |
Restructuring charges | 7 | 11.8 | |
Cash payments | (1) | (0.1) | |
Non-cash adjustments | (2.5) | (5.8) | |
Foreign currency impact | (0.8) | (0.2) | |
Balance at the end of the period | $ 10.4 | $ 7.7 | $ 2 |
Interest and Other Income (Ex97
Interest and Other Income (Expense), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest and Other Income (Expense), Net | |||
Interest income | $ 1.2 | $ 0.8 | $ 1 |
Interest expense | (13) | (13.3) | (13.4) |
Exchange losses on foreign currency transactions | (5.5) | (2) | (10.4) |
(Loss) gain on disposal of product line | (0.2) | 8.3 | 0.9 |
Other | (0.2) | 2.1 | (1.7) |
Interest and other income (expense), net | $ (17.7) | $ (4.1) | $ (23.6) |
Business Segment Information -
Business Segment Information - Information by Segment (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Business segment information | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Revenue: | |||||||||||
Total revenue | $ 478.2 | $ 396.1 | $ 396 | $ 353.5 | $ 508 | $ 419.8 | $ 457.4 | $ 423.7 | $ 1,623.8 | $ 1,808.9 | $ 1,839.4 |
Operating Income: | |||||||||||
Total operating income | 70.7 | 28.2 | 31.6 | $ 15.2 | 44.5 | 4.9 | $ 35.4 | $ 20.6 | 145.7 | 105.4 | 148.2 |
Impairment of assets | 0.3 | $ 2.5 | $ 1.8 | 4.6 | $ 6.9 | 4.6 | 11.5 | ||||
Assets: | |||||||||||
Total assets | 1,730.9 | 1,864.8 | 1,730.9 | 1,864.8 | |||||||
Capital Expenditures | |||||||||||
Total capital expenditures | 34.2 | 33.8 | 50.3 | ||||||||
Depreciation and Amortization | |||||||||||
Total depreciation and amortization | 53.3 | 59.7 | 61.3 | ||||||||
Eliminations | |||||||||||
Revenue: | |||||||||||
Total revenue | (9.1) | (18.6) | (17.5) | ||||||||
Corporate, eliminations and other | |||||||||||
Operating Income: | |||||||||||
Total operating income | 1 | 2.2 | (0.2) | ||||||||
Assets: | |||||||||||
Total assets | (63.5) | (64.1) | (63.5) | (64.1) | |||||||
BSI | |||||||||||
Operating Income: | |||||||||||
Impairment of assets | 4.6 | 6.4 | |||||||||
Capital Expenditures | |||||||||||
Total capital expenditures | 30.1 | 31.5 | 44.9 | ||||||||
Depreciation and Amortization | |||||||||||
Total depreciation and amortization | 50.5 | 55.1 | 56.4 | ||||||||
BSI | Operating segments | |||||||||||
Revenue: | |||||||||||
Total revenue | 1,499.2 | 1,674.6 | 1,709.5 | ||||||||
Operating Income: | |||||||||||
Total operating income | 133.2 | 99.8 | 138.9 | ||||||||
Assets: | |||||||||||
Total assets | 1,715.3 | 1,827.7 | 1,715.3 | 1,827.7 | |||||||
BEST | |||||||||||
Operating Income: | |||||||||||
Impairment of assets | 5.1 | ||||||||||
Capital Expenditures | |||||||||||
Total capital expenditures | 4.1 | 2.3 | 5.4 | ||||||||
Depreciation and Amortization | |||||||||||
Total depreciation and amortization | 2.8 | 4.6 | 4.9 | ||||||||
BEST | Operating segments | |||||||||||
Revenue: | |||||||||||
Total revenue | 133.7 | 152.9 | 147.4 | ||||||||
Operating Income: | |||||||||||
Total operating income | 11.5 | 3.4 | $ 9.5 | ||||||||
Assets: | |||||||||||
Total assets | $ 79.1 | $ 101.2 | $ 79.1 | $ 101.2 |
Business Segment Information 99
Business Segment Information - Information by Geographical Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue and property, plant and equipment by geographical area | |||||||||||
Total revenue | $ 478.2 | $ 396.1 | $ 396 | $ 353.5 | $ 508 | $ 419.8 | $ 457.4 | $ 423.7 | $ 1,623.8 | $ 1,808.9 | $ 1,839.4 |
Total property, plant and equipment, net | 231.1 | 249.9 | 231.1 | 249.9 | |||||||
United States | |||||||||||
Revenue and property, plant and equipment by geographical area | |||||||||||
Total revenue | 380.4 | 387.6 | 359.7 | ||||||||
Total property, plant and equipment, net | 43.2 | 45.9 | 43.2 | 45.9 | |||||||
Germany | |||||||||||
Revenue and property, plant and equipment by geographical area | |||||||||||
Total revenue | 198.9 | 215.1 | 188.9 | ||||||||
Total property, plant and equipment, net | 125.9 | 143.8 | 125.9 | 143.8 | |||||||
Rest of Europe | |||||||||||
Revenue and property, plant and equipment by geographical area | |||||||||||
Total revenue | 479.6 | 522.9 | 583.7 | ||||||||
Total property, plant and equipment, net | 54.7 | 53.6 | 54.7 | 53.6 | |||||||
Asia Pacific | |||||||||||
Revenue and property, plant and equipment by geographical area | |||||||||||
Total revenue | 414.9 | 495.5 | 529.1 | ||||||||
Total property, plant and equipment, net | 4.2 | 4.7 | 4.2 | 4.7 | |||||||
Other | |||||||||||
Revenue and property, plant and equipment by geographical area | |||||||||||
Total revenue | 150 | 187.8 | $ 178 | ||||||||
Total property, plant and equipment, net | $ 3.1 | $ 1.9 | $ 3.1 | $ 1.9 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Certain shareholders | |||
Related parties | |||
Expenses incurred | $ 1.8 | $ 2 | $ 2.6 |
Law firm | |||
Related parties | |||
Expenses incurred | 2.4 | 5.3 | |
Financial services firm | |||
Related parties | |||
Expenses incurred | 0.1 | 0.2 | |
Life science supply company | |||
Related parties | |||
Revenue | 0.9 | $ 0.1 | |
Life sciences company | |||
Related parties | |||
Revenue | 0.7 | 1.9 | |
Expenses incurred | $ 0.1 | ||
Thermal Analysis Company | |||
Related parties | |||
Revenue | $ 0.5 |
Quarterly Financial Data (Un101
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Data (Unaudited) | |||||||||||
Net revenue | $ 478.2 | $ 396.1 | $ 396 | $ 353.5 | $ 508 | $ 419.8 | $ 457.4 | $ 423.7 | $ 1,623.8 | $ 1,808.9 | $ 1,839.4 |
Gross profit | 211.5 | 167.5 | 169.4 | 160.2 | 215.8 | 167.3 | 200.5 | 179.7 | 708.6 | 763.3 | 805.2 |
Operating income | 70.7 | 28.2 | 31.6 | 15.2 | 44.5 | 4.9 | 35.4 | 20.6 | 145.7 | 105.4 | 148.2 |
Net income attributable to Bruker Corporation | $ 61.4 | $ 11.8 | $ 21.9 | $ 6.5 | $ 26.1 | $ 5.5 | $ 16.4 | $ 8.7 | $ 101.6 | $ 56.7 | $ 80.1 |
Net income per common share attributable to Bruker Corporation shareholders: | |||||||||||
Basic (in dollars per share) | $ 0.37 | $ 0.07 | $ 0.13 | $ 0.04 | $ 0.16 | $ 0.03 | $ 0.10 | $ 0.05 | $ 0.60 | $ 0.34 | $ 0.48 |
Diluted (in dollars per share) | $ 0.36 | $ 0.07 | $ 0.13 | $ 0.04 | $ 0.15 | $ 0.03 | $ 0.10 | $ 0.05 | $ 0.60 | $ 0.33 | $ 0.48 |
Impairment of assets | $ 0.3 | $ 2.5 | $ 1.8 | $ 4.6 | $ 6.9 | $ 4.6 | $ 11.5 |
Subsequent Event - Dividend (De
Subsequent Event - Dividend (Details) - Subsequent Event | Feb. 22, 2016$ / shares |
Subsequent event | |
Dividend per share | $ 0.04 |
Target dividend per share per annum | $ 0.16 |