Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 24, 2017 | Jun. 30, 2016 | |
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, 2016 | ||
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 | $ 2,392,086,523 | ||
Entity Common Stock, Shares Outstanding | 159,884,435 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 342.4 | $ 267.1 |
Short-term investments | 157.9 | 201.2 |
Accounts receivable, net | 243.9 | 234.7 |
Inventories | 440.4 | 422 |
Other current assets | 91.3 | 106.5 |
Total current assets | 1,275.9 | 1,231.5 |
Property, plant and equipment, net | 239.1 | 231.1 |
Goodwill | 130.6 | 130.6 |
Intangible assets, net | 69.7 | 74.7 |
Deferred tax assets | 76.5 | 53 |
Other long-term assets | 16.6 | 9.1 |
Total assets | 1,808.4 | 1,730 |
Current liabilities: | ||
Current portion of long-term debt | 20.1 | 0.6 |
Accounts payable | 86.1 | 72.1 |
Customer advances | 149 | 178.3 |
Other current liabilities | 269.5 | 303.5 |
Total current liabilities | 524.7 | 554.5 |
Long-term debt | 391.6 | 265.2 |
Long-term deferred revenue | 46.8 | 44.4 |
Deferred tax liabilities | 10.1 | 9.5 |
Accrued pension | 102.5 | 91.6 |
Other long-term liabilities | 39.6 | 31.9 |
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, 2016 and 2015 | ||
Common stock, $0.01 par value 260,000,000 shares authorized, 170,552,890 and 169,644,644 shares issued and 159,854,695 and 165,354,180 outstanding at December 31, 2016 and 2015, respectively | 1.7 | 1.7 |
Treasury stock at cost, 10,698,195 and 4,290,527 shares at December 31, 2016 and 2015, respectively | (249.3) | (90.9) |
Additional paid-in capital | 124.7 | 102.1 |
Retained earnings | 885.2 | 757.4 |
Accumulated other comprehensive loss | (75.9) | (44.2) |
Total shareholders' equity attributable to Bruker Corporation | 686.4 | 726.1 |
Noncontrolling interest in consolidated subsidiaries | 6.7 | 6.8 |
Total shareholders' equity | 693.1 | 732.9 |
Total liabilities and shareholders' equity | $ 1,808.4 | $ 1,730 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
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 | 170,552,890 | 169,644,644 |
Common stock, shares outstanding | 159,854,695 | 165,354,180 |
Treasury stock, shares | 10,698,195 | 4,290,527 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) | |||
Product revenue | $ 1,345.4 | $ 1,381.1 | $ 1,571.9 |
Service revenue | 254.7 | 235.5 | 231.8 |
Other revenue | 11.2 | 7.2 | 5.2 |
Total revenue | 1,611.3 | 1,623.8 | 1,808.9 |
Cost of product revenue | 714.2 | 774.2 | 896 |
Cost of service revenue | 150 | 139.7 | 149.6 |
Cost of other revenue | 4.6 | 1.3 | |
Total cost of revenue | 868.8 | 915.2 | 1,045.6 |
Gross profit | 742.5 | 708.6 | 763.3 |
Operating expenses: | |||
Selling, general and administrative | 390.5 | 392.2 | 451 |
Research and development | 149 | 145.7 | 174.2 |
Other charges, net | 25.8 | 25 | 32.7 |
Total operating expenses | 565.3 | 562.9 | 657.9 |
Operating income | 177.2 | 145.7 | 105.4 |
Interest and other income (expense), net | 0.4 | (17.7) | (4.1) |
Income before income taxes and noncontrolling interest in consolidated subsidiaries | 177.6 | 128 | 101.3 |
Income tax provision | 23.1 | 23.1 | 41.7 |
Consolidated net income | 154.5 | 104.9 | 59.6 |
Net income attributable to noncontrolling interest in consolidated subsidiaries | 0.9 | 3.3 | 2.9 |
Net income attributable to Bruker Corporation | $ 153.6 | $ 101.6 | $ 56.7 |
Net income per common share attributable to Bruker Corporation shareholders: | |||
Basic (in dollars per share) | $ 0.95 | $ 0.60 | $ 0.34 |
Diluted (in dollars per share) | $ 0.95 | $ 0.60 | $ 0.33 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 161.4 | 168.2 | 167.8 |
Diluted (in shares) | 162.2 | 169.1 | 169.5 |
Consolidated net income | $ 154.5 | $ 104.9 | $ 59.6 |
Foreign currency translation adjustments | (27.6) | (63.8) | (131.7) |
Pension liability adjustments (net of tax of $2.1 million, $2.1 million and $6.5 million, respectively)\ | (4.4) | (9.6) | (22.6) |
Net comprehensive income (loss) | 122.5 | 31.5 | (94.7) |
Less: Comprehensive income attributable to noncontrolling interests | 0.6 | 2.3 | 2.8 |
Comprehensive income (loss) attributable to Bruker Corporation | $ 121.9 | $ 29.2 | $ (97.5) |
Dividend declared (in dollars per share) | $ 0.16 |
CONSOLIDATED STATEMENTS OF INC5
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) | |||
Pension liability adjustments, tax | $ 2.1 | $ 2.1 | $ 6.5 |
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 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 beginning of period 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 end of period 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 end of period 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 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||
Restricted shares issued (in shares) | 13,105 | |||||||||||||||
Restricted shares terminated (in shares) | (1,375) | 1,375 | ||||||||||||||
Stock options exercised | 12 | 12 | 12 | |||||||||||||
Stock options exercised (in shares) | 895,078 | |||||||||||||||
Stock based compensation | 9.4 | 9.4 | 9.4 | |||||||||||||
Excess tax benefit related to exercise of stock awards | 1.3 | 1.3 | 1.3 | |||||||||||||
Shares issued for acquisition | 2 | $ 2.1 | (0.1) | 2 | ||||||||||||
Shares issued for acquisition (in shares) | 90,066 | (90,066) | ||||||||||||||
Share repurchases and treasury stock acquired | $ (160) | $ (160) | $ (160) | $ (0.5) | $ (0.5) | $ (0.5) | ||||||||||
Share repurchases and treasury stock acquired (in shares) | (6,475,480) | 6,475,480 | (20,879) | 20,879 | ||||||||||||
Distributions to noncontrolling interests | (0.7) | (0.7) | ||||||||||||||
Cash dividends paid to common stockholders | (25.8) | (25.8) | (25.8) | |||||||||||||
Consolidated net income | 153.6 | 153.6 | 0.9 | 154.5 | ||||||||||||
Other comprehensive income (loss) | (31.7) | (31.7) | (0.3) | (32) | ||||||||||||
Balance at end of period at Dec. 31, 2016 | $ 686.4 | $ 1.7 | $ (249.3) | $ 124.7 | $ 885.2 | $ (75.9) | $ 6.7 | $ 693.1 | ||||||||
Balance (in shares) at Dec. 31, 2016 | 159,854,695 | 10,698,195 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Consolidated net income | $ 154.5 | $ 104.9 | $ 59.6 |
Adjustments to reconcile consolidated net income to cash flows from operating activities: | |||
Depreciation and amortization | 54.3 | 53.3 | 59.7 |
Write-down of demonstration inventories to net realizable value | 16.5 | 19.4 | 28.2 |
Stock-based compensation expense | 9.4 | 8 | 9.4 |
Deferred income taxes | (22.7) | (29.4) | (9.2) |
Gain (loss) on disposal of product lines | 0.2 | (8.3) | |
Impairment and other non-cash expenses, net | 7.6 | 26.5 | 14.2 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (8.4) | 45 | (14.5) |
Inventories | (43.2) | (5.4) | 4.6 |
Accounts payable and accrued expenses | (19.6) | 12.6 | 9 |
Income taxes payable, net | (26.8) | 22.7 | 5.6 |
Deferred revenue | 4.9 | 3.8 | 12.9 |
Customer advances | (7.3) | 1.4 | (48.2) |
Other changes in operating assets and liabilities, net | 11.6 | (33.8) | (8.7) |
Net cash provided by operating activities | 130.8 | 229.2 | 114.3 |
Cash flows from investing activities: | |||
Purchase of short-term investments | (126.5) | (159.4) | (211.6) |
Maturity of short-term investments | 165 | 118.7 | 19 |
Cash paid for acquisitions, net of cash acquired | (24.3) | (28.6) | (3.9) |
Proceeds from disposal of product lines | 0.2 | 25.3 | |
Purchases of property, plant and equipment | (37.1) | (34.2) | (33.8) |
Proceeds from sales of property, plant and equipment | 1.1 | 0.9 | 3.1 |
Net cash used in investing activities | (21.8) | (102.4) | (201.9) |
Cash flows from financing activities: | |||
Repayments of revolving lines of credit | (129.5) | ||
Proceeds from revolving lines of credit | 146 | 42 | |
Repayment of other debt, net | (0.1) | (0.6) | (0.8) |
Proceeds from issuance of common stock, net | 11.5 | 10.8 | 7.9 |
Payment of contingent consideration | (3) | ||
Payment of dividends to common stockholders | (25.8) | ||
Repurchase of common stock | (160) | (90) | |
Changes in restricted cash | 0.7 | 1.4 | 0.7 |
Cash payments to noncontrolling interests | (0.7) | (1.3) | (1.1) |
Excess tax benefits related to stock option awards | 1.2 | 2.2 | |
Net cash (used in) provided by financing activities | (27.2) | (168) | 6.7 |
Effect of exchange rate changes on cash and cash equivalents | (6.5) | (11.2) | (38.3) |
Net change in cash and cash equivalents | 75.3 | (52.4) | (119.2) |
Cash and cash equivalents at beginning of year | 267.1 | 319.5 | 438.7 |
Cash and cash equivalents at end of year | 342.4 | 267.1 | 319.5 |
Supplemental cash flow information: | |||
Cash paid for interest | 12.5 | 12.2 | 12.7 |
Cash paid for taxes | $ 72.4 | $ 56.6 | $ 55.9 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2016 | |
Description of Business | |
Description of Business | Note 1—Description of Business Bruker Corporation, together with its consolidated subsidiaries ("Bruker" or the "Company"), develops and manufactures high-performance scientific instruments and analytical and diagnostic solutions that enable its customers to explore life and materials at microscopic, molecular and cellular levels. Many of the Company's products are used to detect, measure and visualize structural characteristics of chemical, biological and industrial material samples. The Company's products address the rapidly evolving needs of a diverse array of customers in life science research, pharmaceuticals, biotechnology, applied markets, cell biology, clinical research, microbiology, in-vitro diagnostics, nanotechnology and materials science research. The Company has two reportable segments, Bruker Scientific Instruments (BSI), which represented approximately 93% and 92% of the Company's revenues during the year ended December 31, 2016 and 2015, respectively, and Bruker Energy & Supercon Technologies (BEST), which represented the remainder of the Company's revenues. 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 — The Bruker BioSpin Group manufactures and distributes enabling life science tools based on magnetic resonance technology. The majority of Bruker BioSpin's revenues are generated by academic and government research customers. Other customers include pharmaceutical and biotechnology companies and nonprofit laboratories, as well as chemical, food and beverage, clinical and polymer companies. Bruker CALID( C hemicals, A pplied Markets, L ife Science, I n-Vitro Diagnostics, D etection) — The Bruker CALID Group designs, manufactures and distributes life science mass spectrometry and ion mobility spectrometry systems, infrared spectroscopy and radiological/nuclear detectors for Chemical, Biological, Radiological, Nuclear and Explosive (CBRNE) detection in emergency response, homeland security and defense applications, and analytical and process analysis instruments and solutions based on infrared and Raman molecular spectroscopy technologies. Customers of the Bruker CALID Group include pharmaceutical, biotechnology and diagnostics companies, contract research organizations, academic institutions, medical schools, nonprofit or for-profit forensics, agriculture, food and beverage safety, environmental and clinical microbiology laboratories, hospitals and government departments and agencies. Bruker Nano — The Bruker Nano Group designs, manufactures and distributes advanced X-ray instruments, atomic force microscopy instrumentation, advanced fluorescence optical microscopy instruments, analytical tools for electron microscopes and X-ray metrology, defect-detection equipment for semiconductor process control, handheld, portable and mobile X-ray fluorescence spectrometry instruments and spark optical emission spectroscopy systems. Customers of the Bruker Nano Group include biotechnology and pharmaceutical companies, academic institutions, governmental customers, nanotechnology companies, semiconductor companies, raw material manufacturers, industrial companies and other businesses involved in materials analysis. 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, 2016 | |
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 those disclosed in Note 23—Subsequent Events. 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. There were no unrealized gains (losses) recorded as of December 31, 2016 and 2015, as cost approximates current 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, foreign currency hedge or a hedge of a net investment in a foreign operation. 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, borrowings under a revolving credit agreement, 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, borrowings under a revolving credit agreement 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 $7.9 million and $9.1 million as of December 31, 2016 and 2015, respectively. As of December 31, 2016 and 2015, no single customer represented 10% or more of the Company's accounts receivable. For the years ended December 31, 2016, 2015 and 2014, 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 product 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 product 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. 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 and are not recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. In the event that such cash flows are not expected to be sufficient to recover the carrying amount of the assets, the assets are written-down to their fair values. 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. The Company includes accrued interest and penalties related to unrecognized tax benefits and income tax liabilities, when applicable, in income tax expense. Customer Advances The Company typically requires an advance deposit under the terms and conditions of contracts with customers. These deposits are recorded as a current or long-term 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 systems 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 generally transfers upon shipping terms, or for certain systems, based upon customer acceptance for a system that has been delivered and installed at a customer facility. 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 successful factory acceptance testing or 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 generally recognized based on shipping terms. 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 development arrangements recognized on a cost-plus-fixed-fee basis and licensing arrangements 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 $21.3 million, $20.6 million and $26.2 million in the years ended December 31, 2016, 2015 and 2014, respectively. Amounts billed to customers in connection with these costs are included in total revenues. Research and Development The Company commits substantial capital and resources to internal and collaborative research and development projects in order to provide innovative products and solutions to their customers. The Company conducts research primarily to enhance system performance and improve the reliability of existing products, and to develop revolutionary new products and solutions. 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. Capitalized Software 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 to research and development expense until technological feasibility is achieved. 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 $12.7 million, $12.9 million and $10.7 million during the years ended December 31, 2016, 2015 and 2014, 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, restricted stock awards and restricted stock units. The Company recorded stock-based compensation expense for the years ended December 31, 2016, 2015 and 2014, as follows (in millions): 2016 2015 2014 Stock options $ $ $ Restricted stock awards Restricted stock units — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stock-based compensation $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2016 2015 2014 Costs of product revenue $ $ $ Selling, general and administrative Research and development ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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: 2016 2015 2014 Risk-free interest rates 1.23%-2.21% 1.58%-1.91% 1.78%-2.10% Expected life 5.75-7.02 years 6.0-6.25 years 6.0-6.25 years Volatility 33.57%-41.60% 35.10%-52.23% 53.07%-56.24% Expected dividend yield 0.0%-0.78% — — Risk-free interest rates are 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 a calculation based on historical data and 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 expectations of future volatility over the expected term. The expected dividend yield was included in the option pricing formula beginning in February of 2016 as the Company adopted a dividend policy. 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 6.2%, 5.8% and 5.1% for the years ended December 31, 2016, 2015 and 2014, 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): 2016 2015 2014 Net income attributable to Bruker Corporation, as reported $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding: Weighted average shares outstanding-basic Effect of dilutive securities: Stock options, restricted stock awards and restricted stock units ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per common share attributable to Bruker Corporation shareholders: Basic $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options and restricted stock units to purchase approximately 0.6 million shares, 1.3 million shares and 0.1 million shares were excluded from the computation of diluted earnings per share for the years ended December 31, 2016, 2015 and 2014, respectively, because their effect would have been anti-dilutive. Post Retirement 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. Loss Contingencies Loss contingency provisions are recorded if the potential loss from any claim, asserted or unasserted, or legal proceeding related to patents, products and other matters, is considered probable and the amount can be reasonably estimated or a range of loss can be determined. These accruals represent management's best estimate of probable loss. Disclosure is provided when it is reasonably possible that a loss will be incurred or when it is reasonably possible that the amount of a loss will exceed the recorded provision. 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, 2016 | |
Acquisitions | |
Acquisitions | Note 3—Acquisitions 2016 On December 14, 2016, we acquired 100% of the stock of Active Spectrum Inc., a manufacturer of magnetic resonance spectroscopy. On November 17, 2016, we acquired 100% of the membership interests of Oxford Instruments Superconducting Wire LLC (OST), a manufacturer of low-temperature superconductors. On November 2, 2016, we acquired the assets of Renishaw Diagnostics Ltd., a developer and producer of molecular assays for applications in microbiology. On November 21, 2016, we acquired the preclinical imaging business of OncoVision, a leading provider of innovative medical imaging devices. On June 20, 2016, we acquired the assets of Yingsheng Technology Pty Ltd., which comprise a technology for advanced minerals identification and characterization. The products of the acquired companies are intended to complement the Company's existing product portfolio and technology base. The following table reflects the consideration transferred and the respective reporting segment for each of the acquisitions: Name of Acquisition Segment Consideration Cash Consideration Yingsheng Technology Pty Ltd BSI $ $ Renishaw Diagnostics Ltd. BSI Oxford Instruments Superconducting Wire LLC BEST Preclinical Imaging Business of OncoVision BSI Active Spectrum Inc. BSI — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The components and fair value allocation of the consideration transferred in connection with these acquisitions were as follows (in millions): Consideration Transferred: Cash paid $ Cash acquired ) Shares issued 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 Bargain purchase gain ) Deferred taxes, net ) Liabilities assumed ) ​ ​ ​ ​ ​ Total consideration transferred $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company completed the fair value allocation for these acquisitions at December 31, 2016. The fair value allocation included contingent consideration in the amount of $5.1 million, which represented the estimated fair value of future payments to the former shareholders of the acquired companies based on achieving annual revenue and gross margin targets in future years. The future payments of the contingent consideration may differ from the fair value recorded based on the financial results of the acquired businesses. The amortization period for intangible assets is between 5 and 7 years. The bargain purchase gain of $9.2 million related to the acquisition of OST, and has been recorded within interest and other income, net on the consolidated statements of income and comprehensive income (loss). The acquisition resulted in a bargain purchase gain as the assets acquired exceeded the consideration paid. Pro forma financial information reflecting these acquisitions have not been presented because the impact on revenues, net income and total assets is not material. 2015 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 Company completed the fair value allocation in the fourth quarter of 2015. 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. During the year ended December 31, 2016, the Company recorded an additional $7.7 million to other charges, net for additional consideration based on 2016 revenue and gross margin achievements. The maximum potential future payments related to the contingent consideration is $4 million at December 31, 2016. 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. 2014 On July 28, 2014 the Company completed the acquisition of Vutara, Inc. a manufacturer of high-speed, three-dimensional (3D), super-resolution fluorescence microscopy for life science applications. Name of Acquisition Segment Consideration Cash Consideration Vutara Inc. BSI $ $ |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 (in millions): December 31, 2016 Total Quoted Prices Significant Significant Assets: Embedded derivatives in purchase and delivery contracts $ $ — $ $ — Fixed price commodity contracts — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets recorded at fair value $ $ — $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: Contingent consideration $ $ — $ — $ Foreign exchange contracts — — Embedded derivatives in purchase and delivery contracts — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities recorded at fair value $ $ — $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2015 Total Quoted Prices Significant Significant Assets: Embedded derivatives in purchase and delivery contracts $ $ — $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 $253.3 million and $252.1 million at December 31, 2016 and 2015, 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, 2016. Excluded from the table above are cash equivalents, restricted cash and short-term investments as the cost approximates current fair value. The Company has 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 call and maturity dates. There are no cash equivalents, $3.4 million and $4.2 million of restricted cash and $157.9 million and $201.2 million of short-term investments outstanding as of December 31, 2016 and 2015, respectively. 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, 2016 and 2015. As part of certain acquisitions in 2016, 2015 and 2014, 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, 2016 and December 31, 2015 were $6.9 million and ($7.7) million, respectively, and were recorded to other charges, net in the consolidated statements of income and comprehensive income (loss) for increases (reversals) of contingent consideration representing expected achievement of financial targets. The following table sets forth the changes in contingent consideration liabilities for the years ended December 31, 2016 and 2015 (in millions): Balance at December 31, 2014 $ Current period additions Current period adjustments ) Current period settlements ) Foreign currency effect ) ​ ​ ​ ​ ​ Balance at December 31, 2015 Current period additions Current period adjustments Current period settlements — Foreign currency effect — ​ ​ ​ ​ ​ Balance at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Receivable | |
Accounts Receivable | Note 5—Accounts Receivable The following is a summary of trade accounts receivable at December 31, (in millions): 2016 2015 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 Additions Deductions Foreign Balance at 2016 $ $ $ ) $ ) $ 2015 ) ) 2014 ) ) |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventories | |
Inventories | Note 6—Inventories Inventories consisted of the following at December 31, (in millions): 2016 2015 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, 2016 and 2015, inventory-in-transit was $37.5 million and $44.7 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 product revenue related to the write-down of demonstration units to net realizable value were $16.5 million, $19.4 million and $28.2 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
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): 2016 2015 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, 2016, 2015 and 2014 was $32.6 million, $32.6 million and $39.5 million, respectively. During the years ended December 31, 2016 and 2015, the Company recorded impairment charges of $0.8 million and $2.1 million, respectively, representing the write down to fair value of certain property, plant and equipment, net related to restructuring and outsourcing activities undertaken during the respective years. These impairment charges are recorded within other charges, net in the accompanying consolidated statements of income and comprehensive income (loss). Please see Note 17—other charges, net, for additional details on the 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 "other charges, net" in the accompanying consolidated statements of income and comprehensive income (loss). |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | Note 8—Goodwill and Intangible Assets Goodwill The following table sets forth the changes in the carrying amount of goodwill for the years ended December 31, 2016, 2015 and 2014 (in millions): Balance at December 31, 2013 $ Current period additions/adjustments Foreign currency impact ) ​ ​ ​ ​ ​ Balance at December 31, 2014 $ Current period additions/adjustments Impairment ) Foreign currency impact ) ​ ​ ​ ​ ​ Balance at December 31, 2015 Current period additions/adjustments Foreign currency impact ) ​ ​ ​ ​ ​ Balance at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2016 and 2015, all goodwill was allocated within the BSI Segment. 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 qualitative approach at December 31, 2016 and 2014 and a quantitative approach at December 31, 2015 and concluded it was more likely than not that goodwill has not been impaired. Based on the most recent quantitative analysis the fair values of each of our reporting units was significantly greater than their carrying amounts, and therefore, no additional impairment was required. Intangible Assets The following is a summary of intangible assets at December 31, (in millions): 2016 2015 Gross Accumulated Net Gross Accumulated Net 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, 2016, 2015 and 2014, the Company recorded amortization expense of approximately $21.7 million, $20.7 million and $20.2 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. The estimated future amortization expense related to amortizable intangible assets at December 31, 2016 is as follows (in millions): 2017 $ 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
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): 2016 2015 Deferred revenue $ $ Accrued compensation Accrued warranty Contingent consideration 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, 2016 and 2015 (in millions): Balance at December 31, 2014 $ Accruals for warranties issued during the year Settlements of warranty claims ) Foreign currency impact ) ​ ​ ​ ​ ​ Balance at December 31, 2015 Accruals for warranties issued during the year Settlements of warranty claims ) Foreign currency impact ) ​ ​ ​ ​ ​ Balance at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt | |
Debt | Note 10—Debt The Company's debt obligations consist of the following as of December 31, (in millions): 2016 2015 US Dollar revolving loan under the 2015 Credit Agreement $ $ US Dollar notes under the Note Purchase Agreement Unamortized debt issuance costs 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 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credit Agreements 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, 2016, 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 1.49 and interest coverage ratio (as defined in the 2015 Credit Agreement) was 15.5. The following is a summary of the maximum commitments and the net amounts available to the Company under the 2015 Credit Agreement and other lines of credit with various financial institutions located primarily in Germany and Switzerland that are unsecured and typically due upon demand with interest payable monthly, at December 31, 2016 (in millions): Weighted Total Amount Outstanding Outstanding Total 2015 Credit Agreement % $ $ $ $ Other lines of credit — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revolving loans $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Note Purchase Agreement 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, 2016, 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 1.49 and interest coverage ratio (as defined in the Note Purchase Agreement) was 15.5. Annual maturities of debt outstanding, less deferred financing cost amortization, at December 31, 2016 are as follows (in millions): 2017 $ 2018 2019 2020 2021 — Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense for the years ended December 31, 2016, 2015 and 2014, was $13.2 million, $13.0 million and $13.3 million, respectively. In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-03, Simplifying the Presentation of Debt Issuance Costs, which amends the existing guidance to require that debt issuance costs be presented in the consolidated balance sheet as a reduction from the carrying amount of the related debt liability instead of as an other asset. The Company adopted ASU 2015-03 on a retrospective basis for the year ended December 31, 2016. As of December 31, 2016 and 2015, there were $0.8 million and $0.9 million, respectively, in debt issuance costs recorded as a reduction in the carrying value of the related debt liability under the Note Purchase Agreement. The $0.8 million in debt issuance costs as of December 31, 2016 will be amortized over the remaining term of the Note Purchase Agreement. The retrospective adoption resulted in $0.9 million of debt issuance costs being reclassified from other current assets and other non-current assets to a reduction of the carrying value of long-term debt as of December 31, 2015. The Company also adopted ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, and elected not to reclassify the debt issuance costs related to line-of-credit arrangements for the 2015 Credit Agreement. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2016 | |
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 $171.0 million at December 31, 2016. 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 and Switzerland, 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 Sell Maturity Notional Fair Value Fair Value December 31, 2016: Euro U.S. Dollars January 2017 $ $ — $ Swiss Francs U.S. Dollars January 2017 — U.S. Dollars Israel Shekel January 2017 — — Israel Shekel U.S. Dollars January 2017 — — Euro Polish Zloty January 2017 — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2015: Euro U.S. Dollars January 2016 $ $ — $ Swiss Francs U.S. Dollars April 2016 — U.S. Dollars Israel Shekel April 2016 — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 $120.7 million for the delivery of products and $2.3 million for the purchase of products at December 31, 2016 and $59.0 million for the delivery of products and $4.1 million for the purchase of products at December 31, 2015. 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, 2016 and 2015, the Company has fixed price commodity contracts with notional amounts aggregating $2.7 million and $2.0 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, 2016 and 2015 as follows (in millions): Balance Sheet Location 2016 2015 Derivative assets: Embedded derivatives in purchase and delivery contracts Other current assets $ $ Fixed price commodity contracts Other current assets — Embedded derivatives in purchase and delivery contracts Other long-term 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): 2016 2015 2014 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, 2016 | |
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): 2016 2015 2014 Domestic $ $ $ ) Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The components of the income tax provision are as follows for the years ended December 31, (in millions): 2016 2015 2014 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: 2016 2015 2014 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 unbenefitted losses ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effective tax rate % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The tax effect of temporary items that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2016 and 2015 are as follows (in millions): 2016 2015 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 Other — ​ ​ ​ ​ ​ ​ ​ ​ Gross deferred tax assets Less valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities: Accounts receivable — Foreign statutory reserves Intangibles Accrued expenses Other — ​ ​ ​ ​ ​ ​ ​ ​ 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 realizable 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, 2016, the Company removed 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 be realized. In particular, the Company removed a partial valuation allowance against its U.S. net deferred tax assets, which comprised deductible temporary differences and tax credit carryforwards. Also, the Company removed its valuation allowance against certain foreign net operating losses. 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. Changes in the valuation allowance for deferred tax assets during the years ended December 31, 2016, 2015 and 2014 were as follows: Balance at December 31, 2013 $ Increases recorded to income tax provision ​ ​ ​ ​ ​ Balance at December 31, 2014 $ Decreases recorded as a benefit to income tax provision ) ​ ​ ​ ​ ​ Balance at December 31, 2015 $ Decreases recorded as a benefit to income tax provision ) ​ ​ ​ ​ ​ Balance at December 31, 2016 $ ​ ​ ​ ​ ​ Increases related primarily to the generation of net operating losses and other deferred tax assets and decreases related primarily to the adjustment to certain deferred tax assets and their related allowance. As of December 31, 2016, the Company has approximately $40.2 million net operating loss carryforwards available to reduce state taxable income. The Company also has approximately $41.0 million of German Trade Tax net operating losses that are carried forward indefinitely. Additionally, the Company has $23.1 million of other foreign net operating losses that are expected to expire at various times beginning in 2018. The Company also has U.S. federal tax credits of approximately $15.1 million available to offset future tax liabilities that expire at various dates, which include research and development tax credits of $12.2 million expiring at various times through 2035, foreign tax credits of $2.9 million expiring at various times through 2025, and state research and development tax credits of $7.8 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 statutory reserves in its tabular reconciliation of unrecognized tax benefits. Effective for the year ended December 31, 2013 and thereafter, these unrecognized tax benefits are presented as a reduction of the associated net deferred tax assets. The Company asserts that its foreign earnings, with the exception of its foreign earnings that have been previously taxed by the U.S., are indefinitely reinvested. The Company regularly evaluates its assertion that its foreign earnings are indefinitely reinvested. If the cash, cash equivalents and short-term investments held by the Company's foreign subsidiaries are needed to fund operations in the United States or the Company otherwise elects to repatriate the unremitted earnings of its foreign subsidiaries 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 tax credits, which could result in a higher effective tax rate in the future. The Company has indefinitely reinvested the earnings of its non-U.S. subsidiaries in the cumulative amount of approximately $1,200 million as of December 31, 2016, 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 United States 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 $90 million. The Company has gross unrecognized tax benefits, excluding interest, of approximately $6.2 million as of December 31, 2016, of which $5.3 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 $2.1 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, 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 Gross decreases—tax positions in prior periods ) Gross increases—current period tax positions Settlements ) Lapse of statutes ) ​ ​ ​ ​ ​ Gross unrecognized tax benefits at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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, 2016 and 2015, the Company had approximately $0.5 million and $4.7 million, respectively, of accrued interest and penalties related to uncertain tax positions included in other long-term liabilities in the consolidated balance sheets. The Company recorded a benefit of $1.8 million for penalties and interest related to unrecognized tax benefits in the provision for income taxes during the year ended December 31, 2016 and an expense of $1.4 million during the year ended December 31, 2015. The Company files tax returns in the United States which include federal, state and local jurisdictions and many foreign jurisdictions with varying statutes of limitations. The Company considers Germany, the United States and Switzerland to be its significant tax jurisdictions. The tax years 2013 to 2015 are open tax years in these significant foreign jurisdictions. In the first quarter of 2014, the Company settled a tax audit in the United States for the tax year 2010. In the third quarter of 2015, the Company settled tax audits in Germany and Italy. In 2016, the Company settled tax audits in Germany and Switzerland. The settlement was immaterial to the consolidated financial statements. Tax years 2011 to 2015 remain open for examination in the United States. |
Post Retirement Benefit Plans
Post Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Post Retirement Benefit Plans | |
Post Retirement Benefit Plans | Note 13—Post Retirement Benefit Plans Defined Contribution 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 $6.0 million, $6.5 million and $7.1 million to such plans in the years ended December 31, 2016, 2015 and 2014, respectively. 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. The components of net periodic benefit costs for the years ended December 31, 2016, 2015 and 2014 were as follows (in millions): 2016 2015 2014 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): 2016 2015 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 under funded status $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The accumulated benefit obligation for the defined benefit pension plans is $199.9 million and $189.7 million at December 31, 2016 and 2015, respectively. All defined benefit pension plans have an accumulated benefit obligation and projected benefit obligation in excess of plan assets at December 31, 2016 and 2015. The following amounts were recognized in the accompanying consolidated balance sheets for the Company's defined benefit plans at December 31, (in millions): 2016 2015 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): 2016 2015 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, 2016 expected to be recognized as amortization of net loss within net periodic benefit cost in 2017 is $4.6 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: 2016 2015 2014 Discount rates 0.2%-2.1% 0.3%-2.5% 0.7%-2.4% Expected return on plan assets 0.0%-3.0% 0.0%-3.0% 2.9% 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, 2016 and 2015, by asset category and by level in the fair value hierarchy, is as follows (in millions): December 31, 2016 Total Quoted Prices in Significant Other Significant Plan Assets: Group BPCE Life (a) $ $ — $ $ — Swiss Life Collective BVG Foundation (b) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total plan assets $ $ — $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2015 Total Quoted Prices in Significant Other Significant Plan Assets: Group BPCE Life (a) $ $ — $ $ — Swiss Life Collective BVG Foundation (b) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total plan assets $ $ — $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) The Company's pension plan in France is invested in a larger fund that invests in a variety of instruments. The assets are not directly dedicated to the French pension plan. The Group BPCE Life fund invests in debt securities of foreign corporations and governments, equity securities of foreign government funds and private real estate funds. (b) 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 2017, the Company expects contributions to be consistent with 2016. The estimated future benefit payments are based on the same assumptions used to measure the Company's benefit obligation at December 31, 2016. The following benefit payments reflect future employee service as appropriate (in millions): 2017 $ 2018 2019 2020 2021 2022-2026 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 14—Commitments and Contingencies In accordance with ASC Topic 450, Contingencies, the Company accrues anticipated costs of settlement, damages, or other costs to the extent specific losses are probable and estimable. Litigation and Related Contingencies Lawsuits, claims and proceedings of a nature considered normal to its businesses may be pending from time to time against the Company. Third parties might allege that the Company or its collaborators are infringing their patent rights or that the Company is otherwise violating their intellectual property rights. Loss contingency provisions are recorded if the potential loss from any claim, asserted or unasserted, or legal proceeding is considered probable and the amount can be reasonably estimated or a range of loss can be determined. These accruals represent management's best estimate of probable loss. Disclosure also is provided when it is reasonably possible that a loss will be incurred or when it is reasonably possible that the amount of a loss will exceed the recorded provision. The Company believes the outcome of pending proceedings, individually and in the aggregate, will not have a material impact on the Company's financial statements. As of December 31, 2016 and 2015, no material accruals have been recorded for potential contingencies. Governmental Investigations The Company is subject to regulation by national, state and local government agencies in the United States and other countries in which it operates. From time to time, the Company is the subject of governmental investigations often involving regulatory, marketing and other business practices. These governmental investigations may result in the commencement of civil and criminal proceedings, fines, penalties and administrative remedies and may have a material adverse effect on our financial position, results of operations and/or liquidity. The Korea Fair Trade Commission ("KFTC") has conducted an investigation into improper bidding by Bruker Korea Co., Ltd. and several other companies in connection with bids for sales of X-ray systems in 2010 and 2012. Three of the bids under investigation involved Bruker Korea. The Company cooperated fully with the KFTC regarding this matter. In September 2016, the KFTC fined Bruker Korea approximately $15,000 and referred the matter to the Korean Public Prosecutor's Office for criminal prosecution. Additional monetary penalties may also result from the ongoing criminal proceeding. Since December 2016, various Korean governmental entities have imposed suspensions on Bruker Korea, with suspension periods ranging from three to six months. During the periods of these suspensions, which are overlapping, Bruker Korea is prohibited from bidding for or conducting sales to Korean governmental agencies. Sales to these customers were less than 1% of the Company's revenue for the year ended December 31, 2016. In the course of normal business, the Company conducts business in Korea with other non-governmental customers that are not affected by these suspensions. Accordingly, the Company does not expect these contingencies to have a material adverse effect on our financial statements. 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 $22.0 million, $23.0 million and $22.8 million during the years ended December 31, 2016, 2015 and 2014, respectively. Future minimum lease payments under non-cancelable operating leases at December 31, 2016, for each of the next five years and thereafter are as follows (in millions): 2017 $ 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital Leases The Company leased a building under an agreement that was classified as a capital lease. As of December 31, 2016 the lease was completed and the building was subsequently purchased by the Company. The cost of the building under the capital lease was included in the consolidated balance sheets as property, plant and equipment and was $2.7 million at December 31, 2015. Accumulated amortization of the leased buildings at December 31, 2015 was $0.7 million. Amortization expense related to assets under capital leases was included in depreciation expense. The obligations related to capital leases was 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 $149.3 million at December 31, 2016 and the majority of these commitments are expected to be settled during 2017. 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, 2016, 2015 and 2014 was $1.9 million, $2.5 million and $2.6 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, 2016, 2015 and 2014, were $3.0 million, $3.2 million and $3.3 million, respectively, and are recorded in cost of product revenue in the consolidated statements of income and comprehensive income (loss). Letters of Credit and Guarantees At December 31, 2016 and 2015, the Company had bank guarantees of $131.5 million and $137.7 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 any time 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, 2016 | |
Shareholders' Equity | |
Shareholders' Equity | Note 15—Shareholders' Equity Share Repurchase Program 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 incentive compensation plans. In 2015, 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") which authorized repurchases of common stock up to $225 million from time to time, in amounts, at prices, and at such times as the Company deemed appropriate, subject to market conditions, legal requirements and other considerations. A total of 6,475,480 shares were repurchased at an aggregate cost of $160.0 million during the year ended December 31, 2016. A total of 9,312,522 shares were repurchased at an aggregate cost of $225.0 million as of December 31, 2016 under the completed Repurchase Program. The repurchased shares are reflected within Treasury stock in the accompanying consolidated balance sheet at December 31, 2016. Cash Dividends on Common Stock 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. Under the dividend policy, the Company will target a cash dividend to the Company's shareholders in the amount of $0.16 per share per annum, payable in equal quarterly installments. Dividends were paid on March 24, 2016 to shareholders of record as of March 4, 2016 for an aggregate cost of $6.5 million, on June 24, 2016 to shareholders of record as of June 6, 2016 for an aggregate cost of $6.5 million, on September 23, 2016 to shareholders of record as of September 6, 2016 for an aggregate cost of $6.4 million and on December 23, 2016 to shareholders of record as of December 5, 2016 for an aggregate cost of $6.4 million. 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 shareholders. The dividend policy may be suspended or cancelled at the discretion of the Board of Directors at any time. 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 Pension Accumulated 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 comprehensive income (loss) ) ) ) Realized loss on reclassification — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2016 $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 16—Stock-Based Compensation In February 2010, the Bruker BioSciences Corporation Amended and Restated 2000 Stock Option Plan (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 (the "2010 Plan"), and on May 14, 2010, the 2010 Plan was approved by the Company's stockholders. The 2010 Plan provided for the issuance of up to 8,000,000 shares of the Company's common stock. The 2010 Plan allowed a committee of the Board of Directors (the "Compensation Committee") to grant incentive stock options, non-qualified stock options and restricted stock awards. The Compensation Committee had the authority to determine which employees would receive the awards, the amount of the awards and other terms and conditions of any awards. Awards granted under the 2010 Plan typically were made subject to a vesting period of three to five years. In May 2016, the Bruker Corporation 2016 Incentive Compensation Plan (the "2016 Plan") was approved by the Company's stockholders. With the approval of the 2016 Plan, no further grants will be made under the 2010 Plan. The 2016 Plan provides for the issuance of up to 9,500,000 shares of the Company's common stock and permits the grant of awards of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, unrestricted stock, restricted stock units, performance shares and performance units, as well as cash-based awards. The 2016 Plan is administered by the Compensation Committee. The Compensation Committee has the authority to determine which employees will receive awards, the amount of any awards, and other terms and conditions of such awards. Awards granted under the 2016 Plan typically vest over a period of three to four years. Stock option activity for the year ended December 31, 2016 was as follows: Shares Weighted Weighted Aggregate Outstanding at December 31, 2015 $ Granted Exercised ) Forfeited/Expired ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable and expected to vest at December 31, 2016 (a) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) In addition to the options that are vested at December 31, 2016, 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, 2016. (b) The aggregate intrinsic value is based on the positive difference between the fair value of the Company's common stock price of $21.18 on December 31, 2016, or the date of exercises, as appropriate, and the exercise price of the underlying stock options. The weighted average fair value of options granted was $7.72, $7.82 and $10.81 per share for the years ended December 31, 2016, 2015 and 2014, respectively. The total intrinsic value of options exercised was $11.2 million, $8.2 million and $10.0 million for the years ended December 31, 2016, 2015 and 2014, respectively. Unrecognized pre-tax stock-based compensation expense of $15.0 million related to stock options awarded under the 2010 and 2016 Plans is expected to be recognized over the weighted average remaining service period of 2.62 years for stock options outstanding at December 31, 2016. 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 one 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 award activity during the year ended December 31, 2016: Shares Weighted Outstanding at December 31, 2015 $ Granted Vested ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The total fair value of restricted stock vested was $1.5 million, $1.0 million and $3.0 million for the years ended December 31, 2016, 2015 and 2014, respectively. Unrecognized pre-tax stock-based compensation expense of $2.5 million related to restricted stock awarded under the 2010 Plan is expected to be recognized over the weighted average remaining service period of 2.15 years for awards outstanding at December 31, 2016. The following table summarizes information about restricted stock unit activity for year ended December 31, 2016: Shares Weighted Outstanding at December 31, 2015 — $ — Granted Vested — — Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ No restricted stock units vested in the year ended December 31, 2016. Unrecognized pre-tax stock-based compensation expense of $5.1 million related to restricted stock units awarded under the 2016 Plan is expected to be recognized over the weighted average remaining service period of 3.75 years for units outstanding at December 31, 2016. |
Other Charges, Net
Other Charges, Net | 12 Months Ended |
Dec. 31, 2016 | |
Other Charges, Net | |
Other Charges, Net | Note 17—Other Charges, Net The components of other charges, net for the years ended December 31, 2016, 2015 and 2014, were as follows (in millions): 2016 2015 2014 Acquisition-related expenses (income), net $ $ ) $ Professional fees incurred in connection with internal investigation — Pension settlement charge — — Information technology transformation costs Restructuring charges Long-lived asset impairments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other charges, net $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restructuring Initiatives 2016 The Company commenced a restructuring initiative in 2016 to address lower demand in the Bruker CALID and Bruker Nano Groups as a result of delays in European academic funding and ongoing weakness in several of the industrial end market segments that affect the Bruker Nano Group. This initiative is intended to improve the Bruker CALID and Bruker Nano Group operating results in response to these market conditions. Restructuring actions will result in a reduction of approximately 125 employees within the Bruker CALID and Bruker Nano Groups. The following is a summary of the restructuring expenses related to this initiative which are recorded in the accompanying consolidated statements of income and comprehensive income for the year ended December 31, 2016: 2016 Severance Inventory Total Cost of revenues $ $ $ Other charges, net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total restructuring and other one-time charges related to this initiative in 2016 and 2017 are expected to be between $11.0 and $13.0 million, of which $8.4 to $10.0 million relate to employee separation and facility exit costs and $2.6 to $3.0 million relate to estimated inventory write-downs and asset impairments. 2015 The Company commenced a restructuring initiative in the second quarter of 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 was intended to improve Bruker BioSpin Group's operating results. Restructuring actions resulted in a reduction of employee headcount within the Bruker BioSpin Group of approximately 9% and the closure and consolidation of a Bruker BioSpin Group manufacturing facility. The following is a summary of the restructuring expenses related to this initiative which are recorded in the accompanying consolidated statements of income and comprehensive income for years ended December 31, 2016 and 2015: 2016 2015 Severance Inventory Total Severance Inventory Total Cost of revenues $ $ — $ $ $ $ Other charges, net — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ — $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2016, expenses incurred under this restructuring initiative were substantially complete. 2014 In 2014, the Company commenced and executed various productivity improvement initiatives within the BSI Segment in an effort to optimize its operations. These restructuring initiatives included 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. Restructuring charges for the years ended December 31, 2016, 2015 and 2014 included charges for various other programs which were recorded in the accompanying consolidated statements of income and comprehensive income as follows: 2016 2015 2014 Cost of revenues $ $ $ Other charges, net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table sets forth the changes in the restructuring reserves for the years ended December 31, 2016, 2015 and 2014 (in millions): Total Severance Exit Costs Provisions for 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 $ $ $ $ Restructuring charges Cash payments ) ) ) ) Non-cash adjustments ) ) ) ) Foreign currency impact ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2016 $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the years ended December 31, 2016 and 2014, all restructuring charges related to the BSI Segment. For the year ended December 31, 2015, restructuring charges of $28.4 million related to the BSI Segment and $0.9 million related to the BEST Segment. |
Interest and Other Income (Expe
Interest and Other Income (Expense), Net | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 2015 and 2014, were as follows (in millions): 2016 2015 2014 Interest income $ $ $ Interest expense ) ) ) Exchange gains (losses) on foreign currency transactions ) ) Gain on bargain purchase — — (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, 2016 | |
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): 2016 2015 2014 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 $0.8 million and $4.6 million for the years ended December 31, 2016 and 2015, respectively, 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 2016, 2015 and 2014. These impairment charges are included within other charges, net 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): 2016 2015 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): 2016 2015 2014 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): 2016 2015 2014 Revenue: United States $ $ $ Germany Rest of Europe Asia Pacific Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenue $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2016 2015 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, 2016 | |
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 2017 to 2020. Total rent expense under these leases was $3.9 million, $1.8 million and $2.0 million for each of the years ended December 31, 2016, 2015 and 2014, respectively. During the year ended December 31, 2014, the Company incurred expenses of $2.4 million to a law firm in which one of the former members of its Board of Directors is a partner. During the year ended December 31, 2014, the Company incurred expenses of $0.1 million to a financial services firm in which one of the former members of its Board of Directors is a partner. During the year ended December 31, 2014, the Company recorded revenue of $0.9 million 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, 2016, 2015 and 2014, the Company recorded revenue of $1.1 million, $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, 2016 and 2015, the Company recorded revenue of $0.2 million and $0.5 million, respectively, from commercial transactions with a thermal analysis company in which one of the former members of its Board of Directors serves as a consultant. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 21—Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Boards ("FASB") issued Accounting Standards Update ("ASU") 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new standard simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. This ASU will be applied prospectively and is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements upon adoption. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This new standard clarifies the definition of a business and provides a screen to determine when an integrated set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This new standard will be effective as of January 1, 2018. The Company is evaluating the provisions of this standard, including which period to adopt, and has not determined what impact the adoption of ASU No. 2017-01 will have on the Company's consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740)—Intra-Entity Transfer of Assets Other than Inventory. The new standard requires recognition of current and deferred income taxes resulting from an intra-entity transfer of any asset (excluding inventory) when the transfer occurs. This is a change from existing U.S. GAAP which prohibits recognition of current and deferred income taxes until the asset is sold to a third party. The new standard is effective as of January 1, 2018 and early adoption is permitted. The Company is evaluating the provisions of this standard, including which period to adopt, and has not determined what impact the adoption of ASU No. 2016-16 will have on the Company's consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230). The objective of this update is to provide additional guidance and reduce diversity in practice when classifying certain transactions within the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. These standards are effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Stock Compensation—Improvements to Employee Share-Based Payment Accounting. The new standard simplifies accounting for share-based payment transactions, including income tax consequences and the classification of the tax impact on the statement of cash flows. The new standard is effective as of January 1, 2017, and early adoption is permitted. This new standard will be effective for the Company on January 1, 2017. The adoption of this standard is not expected to have a material impact on the Company's financial position, results of operations or statements of cash flows upon adoption. In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard provides guidance on the recognition, measurement, presentation, and disclosure of leases. The new standard supersedes present U.S. GAAP guidance on leases and requires substantially all leases to be reported on the balance sheet as right-of-use assets and lease liabilities, as well as additional disclosures. The new standard is effective as of January 1, 2019, and early adoption is permitted. The Company is evaluating the provisions of this standard and has not determined what impact the adoption of ASU No. 2016-02 will have on the Company's 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 standard and has not determined what impact the adoption of ASU No. 2015-11 will have on the Company's consolidated financial statements. 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 new guidance may be applied on a retrospective basis for all prior periods presented, or on a modified retrospective basis with the cumulative effect of the new guidance as of the date of initial application. The new guidance will be effective for the Company as of January 1, 2018 and the Company currently expects to use the modified retrospective transition method. During 2016, the Company substantially completed the impact assessment phase of its evaluation of ASU 2014-09. As a result of its impact assessment, the Company will be implementing additional processes and controls, including additional disclosures, to comply with the new standard. The largest financial impact will be the timing of revenue recognition for certain project-based orders for which the Company currently applies the percentage-of-completion or completed contract model. Under the new guidance, there are specific criteria to determine if a performance obligation should be recognized over time or at a point in time. The Company expects that in some cases the revenue recognition timing under the new guidance will change from current practice based on applying the specific criteria under the new guidance. The Company has not yet quantified the impact the adoption of ASU No. 2014-09 will have on the consolidated financial statements. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015, is set forth below (in millions, except per share data): Quarter Ended March 31 June 30 (1) (2) September 30 (2) December 31 (1) (2) (3) Year ended December 31, 2016 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, 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 $ $ $ $ (1) The second and fourth quarter of 2016 includes impairment of assets of $0.7 million and $0.1 million, respectively, comprised of other long-lived assets. (2) 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. (3) The fourth quarter of 2016 includes bargain purchase gain of $9.2 million related to the Oxford Instruments Superconducting Wire LLC., acquisition |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Event | |
Subsequent Event | Note 23—Subsequent Event On January 24, 2017, the Company acquired the shares of Hysitron, Incorporated for a purchase price of $28.5 million, with the potential for additional consideration based on the 2017 and 2018 revenue levels of the acquired business. The acquisition adds Hysitron's innovative nanomechanical testing instruments to the Company's existing portfolio of atomic force microscopes, surface profilometers, and tribology and mechanical testing systems, significantly enhancing the Company's leadership position in nanomaterials research markets. Hysitron is located in Eden Prairie, Minnesota and will be integrated into the Bruker Nano Group within the BSI reportable segment. The purchase accounting for this acquisition will be finalized within the measurement period. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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 those disclosed in Note 23—Subsequent Events. |
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. There were no unrealized gains (losses) recorded as of December 31, 2016 and 2015, as cost approximates current 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, foreign currency hedge or a hedge of a net investment in a foreign operation. |
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, borrowings under a revolving credit agreement, 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, borrowings under a revolving credit agreement 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 $7.9 million and $9.1 million as of December 31, 2016 and 2015, respectively. As of December 31, 2016 and 2015, no single customer represented 10% or more of the Company's accounts receivable. For the years ended December 31, 2016, 2015 and 2014, 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 product 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 product 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. 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 and are not recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. In the event that such cash flows are not expected to be sufficient to recover the carrying amount of the assets, the assets are written-down to their fair values. 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. The Company includes accrued interest and penalties related to unrecognized tax benefits and income tax liabilities, when applicable, in income tax expense. |
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 current or long-term 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 systems 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 generally transfers upon shipping terms, or for certain systems, based upon customer acceptance for a system that has been delivered and installed at a customer facility. 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 successful factory acceptance testing or 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 generally recognized based on shipping terms. 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 development arrangements recognized on a cost-plus-fixed-fee basis and licensing arrangements 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 $21.3 million, $20.6 million and $26.2 million in the years ended December 31, 2016, 2015 and 2014, respectively. Amounts billed to customers in connection with these costs are included in total revenues. |
Research and Development | Research and Development The Company commits substantial capital and resources to internal and collaborative research and development projects in order to provide innovative products and solutions to their customers. The Company conducts research primarily to enhance system performance and improve the reliability of existing products, and to develop revolutionary new products and solutions. 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. |
Capitalized Software | Capitalized Software 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 to research and development expense until technological feasibility is achieved. 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 $12.7 million, $12.9 million and $10.7 million during the years ended December 31, 2016, 2015 and 2014, 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, restricted stock awards and restricted stock units. The Company recorded stock-based compensation expense for the years ended December 31, 2016, 2015 and 2014, as follows (in millions): 2016 2015 2014 Stock options $ $ $ Restricted stock awards Restricted stock units — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stock-based compensation $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2016 2015 2014 Costs of product revenue $ $ $ Selling, general and administrative Research and development ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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: 2016 2015 2014 Risk-free interest rates 1.23%-2.21% 1.58%-1.91% 1.78%-2.10% Expected life 5.75-7.02 years 6.0-6.25 years 6.0-6.25 years Volatility 33.57%-41.60% 35.10%-52.23% 53.07%-56.24% Expected dividend yield 0.0%-0.78% — — Risk-free interest rates are 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 a calculation based on historical data and 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 expectations of future volatility over the expected term. The expected dividend yield was included in the option pricing formula beginning in February of 2016 as the Company adopted a dividend policy. 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 6.2%, 5.8% and 5.1% for the years ended December 31, 2016, 2015 and 2014, 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): 2016 2015 2014 Net income attributable to Bruker Corporation, as reported $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding: Weighted average shares outstanding-basic Effect of dilutive securities: Stock options, restricted stock awards and restricted stock units ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per common share attributable to Bruker Corporation shareholders: Basic $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options and restricted stock units to purchase approximately 0.6 million shares, 1.3 million shares and 0.1 million shares were excluded from the computation of diluted earnings per share for the years ended December 31, 2016, 2015 and 2014, respectively, because their effect would have been anti-dilutive. |
Post Retirement Benefit Plans | Post Retirement 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. |
Loss Contingencies | Loss Contingencies Loss contingency provisions are recorded if the potential loss from any claim, asserted or unasserted, or legal proceeding related to patents, products and other matters, is considered probable and the amount can be reasonably estimated or a range of loss can be determined. These accruals represent management's best estimate of probable loss. Disclosure is provided when it is reasonably possible that a loss will be incurred or when it is reasonably possible that the amount of a loss will exceed the recorded provision. |
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, 2016 | |
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, by award | The Company recorded stock-based compensation expense for the years ended December 31, 2016, 2015 and 2014, as follows (in millions): 2016 2015 2014 Stock options $ $ $ Restricted stock awards Restricted stock units — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stock-based compensation $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Stock-based compensation expense, cost allocation | The Company recorded stock-based compensation expense for the years ended December 31, 2016, 2015 and 2014, as follows (in millions): 2016 2015 2014 Costs of product revenue $ $ $ Selling, general and administrative Research and development ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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: 2016 2015 2014 Risk-free interest rates 1.23%-2.21% 1.58%-1.91% 1.78%-2.10% Expected life 5.75-7.02 years 6.0-6.25 years 6.0-6.25 years Volatility 33.57%-41.60% 35.10%-52.23% 53.07%-56.24% Expected dividend yield 0.0%-0.78% — — |
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): 2016 2015 2014 Net income attributable to Bruker Corporation, as reported $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding: Weighted average shares outstanding-basic Effect of dilutive securities: Stock options, restricted stock awards 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, 2016 | |
2016 Acquisitions | |
Acquisitions | |
Schedule of consideration transferred and the respective reporting segment for each acquisition | The following table reflects the consideration transferred and the respective reporting segment for each of the acquisitions: Name of Acquisition Segment Consideration Cash Consideration Yingsheng Technology Pty Ltd BSI $ $ Renishaw Diagnostics Ltd. BSI Oxford Instruments Superconducting Wire LLC BEST Preclinical Imaging Business of OncoVision BSI Active Spectrum Inc. BSI — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Components and fair value allocation of the consideration transferred in connection with acquisitions | The components and fair value allocation of the consideration transferred in connection with these acquisitions were as follows (in millions): Consideration Transferred: Cash paid $ Cash acquired ) Shares issued 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 Bargain purchase gain ) Deferred taxes, net ) Liabilities assumed ) ​ ​ ​ ​ ​ Total consideration transferred $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Jordan Valley Semiconductors, LTD | |
Acquisitions | |
Components and fair value allocation of the consideration transferred in connection with acquisitions | The components and fair value allocation of the consideration transferred in connection with the acquisition 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 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Vutara Inc | |
Acquisitions | |
Schedule of consideration transferred and the respective reporting segment for each acquisition | On July 28, 2014 the Company completed the acquisition of Vutara, Inc. a manufacturer of high-speed, three-dimensional (3D), super-resolution fluorescence microscopy for life science applications. Name of Acquisition Segment Consideration Cash Consideration Vutara Inc. BSI $ $ |
Fair Value of Financial Instr34
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 (in millions): December 31, 2016 Total Quoted Prices Significant Significant Assets: Embedded derivatives in purchase and delivery contracts $ $ — $ $ — Fixed price commodity contracts — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets recorded at fair value $ $ — $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: Contingent consideration $ $ — $ — $ Foreign exchange contracts — — Embedded derivatives in purchase and delivery contracts — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities recorded at fair value $ $ — $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2015 Total Quoted Prices Significant Significant Assets: Embedded derivatives in purchase and delivery contracts $ $ — $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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, 2016 and 2015 (in millions): Balance at December 31, 2014 $ Current period additions Current period adjustments ) Current period settlements ) Foreign currency effect ) ​ ​ ​ ​ ​ Balance at December 31, 2015 Current period additions Current period adjustments Current period settlements — Foreign currency effect — ​ ​ ​ ​ ​ Balance at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Receivable | |
Summary of trade accounts receivable | The following is a summary of trade accounts receivable at December 31, (in millions): 2016 2015 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 Additions Deductions Foreign Balance at 2016 $ $ $ ) $ ) $ 2015 ) ) 2014 ) ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventories | |
Schedule of inventories | Inventories consisted of the following at December 31, (in millions): 2016 2015 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, 2016 | |
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): 2016 2015 Land $ $ Building and leasehold improvements Machinery, equipment, software and furniture and fixtures ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated depreciation and amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ Property, plant and equipment, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 2015 and 2014 (in millions): Balance at December 31, 2013 $ Current period additions/adjustments Foreign currency impact ) ​ ​ ​ ​ ​ Balance at December 31, 2014 $ Current period additions/adjustments Impairment ) Foreign currency impact ) ​ ​ ​ ​ ​ Balance at December 31, 2015 Current period additions/adjustments Foreign currency impact ) ​ ​ ​ ​ ​ Balance at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of intangible assets | The following is a summary of intangible assets at December 31, (in millions): 2016 2015 Gross Accumulated Net Gross Accumulated Net 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, 2016 is as follows (in millions): 2017 $ 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Current Liabilities | |
Summary of other current liabilities | The following is a summary of other current liabilities at December 31, (in millions): 2016 2015 Deferred revenue $ $ Accrued compensation Accrued warranty Contingent consideration 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, 2016 and 2015 (in millions): Balance at December 31, 2014 $ Accruals for warranties issued during the year Settlements of warranty claims ) Foreign currency impact ) ​ ​ ​ ​ ​ Balance at December 31, 2015 Accruals for warranties issued during the year Settlements of warranty claims ) Foreign currency impact ) ​ ​ ​ ​ ​ Balance at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt | |
Components of debt obligations | The Company's debt obligations consist of the following as of December 31, (in millions): 2016 2015 US Dollar revolving loan under the 2015 Credit Agreement $ $ US Dollar notes under the Note Purchase Agreement Unamortized debt issuance costs 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 the 2015 Credit Agreement and other lines of credit | The following is a summary of the maximum commitments and the net amounts available to the Company under the 2015 Credit Agreement and other lines of credit with various financial institutions located primarily in Germany and Switzerland that are unsecured and typically due upon demand with interest payable monthly, at December 31, 2016 (in millions): Weighted Total Amount Outstanding Outstanding Total 2015 Credit Agreement % $ $ $ $ Other lines of credit — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revolving loans $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Annual maturities of debt outstanding, less deferred financing cost amortization | Annual maturities of debt outstanding, less deferred financing cost amortization, at December 31, 2016 are as follows (in millions): 2017 $ 2018 2019 2020 2021 — Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Derivative Instruments and He41
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities | |
Schedule of notional amounts outstanding under foreign exchange contracts | The Company had the following notional amounts outstanding under foreign currency contracts at December 31, (in millions): Buy Notional Sell Maturity Notional Fair Value Fair Value December 31, 2016: Euro U.S. Dollars January 2017 $ $ — $ Swiss Francs U.S. Dollars January 2017 — U.S. Dollars Israel Shekel January 2017 — — Israel Shekel U.S. Dollars January 2017 — — Euro Polish Zloty January 2017 — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2015: Euro U.S. Dollars January 2016 $ $ — $ Swiss Francs U.S. Dollars April 2016 — U.S. Dollars Israel Shekel April 2016 — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
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, 2016 and 2015 as follows (in millions): Balance Sheet Location 2016 2015 Derivative assets: Embedded derivatives in purchase and delivery contracts Other current assets $ $ Fixed price commodity contracts Other current assets — Embedded derivatives in purchase and delivery contracts Other long-term 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): 2016 2015 2014 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, 2016 | |
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): 2016 2015 2014 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): 2016 2015 2014 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 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: 2016 2015 2014 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 unbenefitted 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 as of December 31, 2016 and 2015 are as follows (in millions): 2016 2015 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 Other — ​ ​ ​ ​ ​ ​ ​ ​ Gross deferred tax assets Less valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities: Accounts receivable — Foreign statutory reserves Intangibles Accrued expenses Other — ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of changes in the valuation allowance for deferred tax assets | Changes in the valuation allowance for deferred tax assets during the years ended December 31, 2016, 2015 and 2014 were as follows: Balance at December 31, 2013 $ Increases recorded to income tax provision ​ ​ ​ ​ ​ Balance at December 31, 2014 $ Decreases recorded as a benefit to income tax provision ) ​ ​ ​ ​ ​ Balance at December 31, 2015 $ Decreases recorded as a benefit to income tax provision ) ​ ​ ​ ​ ​ Balance at December 31, 2016 $ ​ ​ ​ ​ ​ |
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, 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 Gross decreases—tax positions in prior periods ) Gross increases—current period tax positions Settlements ) Lapse of statutes ) ​ ​ ​ ​ ​ Gross unrecognized tax benefits at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Post Retirement Benefit Plans (
Post Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Post Retirement Benefit Plans | |
Schedule of components of net periodic benefit costs | The components of net periodic benefit costs for the years ended December 31, 2016, 2015 and 2014 were as follows (in millions): 2016 2015 2014 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): 2016 2015 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 under 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): 2016 2015 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): 2016 2015 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: 2016 2015 2014 Discount rates 0.2%-2.1% 0.3%-2.5% 0.7%-2.4% Expected return on plan assets 0.0%-3.0% 0.0%-3.0% 2.9% 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, 2016 and 2015, by asset category and by level in the fair value hierarchy, is as follows (in millions): December 31, 2016 Total Quoted Prices in Significant Other Significant Plan Assets: Group BPCE Life (a) $ $ — $ $ — Swiss Life Collective BVG Foundation (b) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total plan assets $ $ — $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2015 Total Quoted Prices in Significant Other Significant Plan Assets: Group BPCE Life (a) $ $ — $ $ — Swiss Life Collective BVG Foundation (b) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total plan assets $ $ — $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) The Company's pension plan in France is invested in a larger fund that invests in a variety of instruments. The assets are not directly dedicated to the French pension plan. The Group BPCE Life fund invests in debt securities of foreign corporations and governments, equity securities of foreign government funds and private real estate funds. (b) 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): 2017 $ 2018 2019 2020 2021 2022-2026 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, for each of the next five years and thereafter are as follows (in millions): 2017 $ 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Shareholders' Equity | |
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 Pension Accumulated 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 comprehensive income (loss) ) ) ) Realized loss on reclassification — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2016 $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation | |
Schedule of stock option activity | Stock option activity for the year ended December 31, 2016 was as follows: Shares Weighted Weighted Aggregate Outstanding at December 31, 2015 $ Granted Exercised ) Forfeited/Expired ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable and expected to vest at December 31, 2016 (a) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) In addition to the options that are vested at December 31, 2016, 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, 2016. (b) The aggregate intrinsic value is based on the positive difference between the fair value of the Company's common stock price of $21.18 on December 31, 2016, or the date of exercises, as appropriate, and the exercise price of the underlying stock options. |
Restricted stock awards | |
Stock-Based Compensation | |
Schedule of restricted stock award and restricted stock unit activity | The following table summarizes information about restricted stock award activity during the year ended December 31, 2016: Shares Weighted Outstanding at December 31, 2015 $ Granted Vested ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Restricted stock units | |
Stock-Based Compensation | |
Schedule of restricted stock award and restricted stock unit activity | The following table summarizes information about restricted stock unit activity for year ended December 31, 2016: Shares Weighted Outstanding at December 31, 2015 — $ — Granted Vested — — Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Other Charges, Net (Tables)
Other Charges, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Charges, Net | |
Components of other charges, net | The components of other charges, net for the years ended December 31, 2016, 2015 and 2014, were as follows (in millions): 2016 2015 2014 Acquisition-related expenses (income), net $ $ ) $ Professional fees incurred in connection with internal investigation — Pension settlement charge — — Information technology transformation costs Restructuring charges Long-lived asset impairments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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, 2016, 2015 and 2014 (in millions): Total Severance Exit Costs Provisions for 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 $ $ $ $ Restructuring charges Cash payments ) ) ) ) Non-cash adjustments ) ) ) ) Foreign currency impact ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2016 $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Restructuring initiative within Bruker CALID and Bruker Nano Groups | |
Restructuring charges | |
Summary of restructuring expenses | The following is a summary of the restructuring expenses related to this initiative which are recorded in the accompanying consolidated statements of income and comprehensive income for the year ended December 31, 2016: 2016 Severance Inventory Total Cost of revenues $ $ $ Other charges, net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Restructuring initiative within Bruker BioSpin Group | |
Restructuring charges | |
Summary of restructuring expenses | The following is a summary of the restructuring expenses related to this initiative which are recorded in the accompanying consolidated statements of income and comprehensive income for years ended December 31, 2016 and 2015: 2016 2015 Severance Inventory Total Severance Inventory Total Cost of revenues $ $ — $ $ $ $ Other charges, net — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ — $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Various other programs | |
Restructuring charges | |
Summary of restructuring expenses | Restructuring charges for the years ended December 31, 2016, 2015 and 2014 included charges for various other programs which were recorded in the accompanying consolidated statements of income and comprehensive income as follows: 2016 2015 2014 Cost of revenues $ $ $ Other charges, net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Interest and Other Income (Ex48
Interest and Other Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 2015 and 2014, were as follows (in millions): 2016 2015 2014 Interest income $ $ $ Interest expense ) ) ) Exchange gains (losses) on foreign currency transactions ) ) Gain on bargain purchase — — (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, 2016 | |
Business Segment Information | |
Schedule of revenue, operating income and total assets by reportable segment | Selected business segment information is presented below for the years ended December 31, (in millions): 2016 2015 2014 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): 2016 2015 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): 2016 2015 2014 Capital Expenditures: BSI $ $ $ BEST ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total capital expenditures $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and Amortization: BSI $ $ $ BEST ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total depreciation and amortization $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of revenue and property, plant and equipment, net 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): 2016 2015 2014 Revenue: United States $ $ $ Germany Rest of Europe Asia Pacific Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenue $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2016 2015 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, 2016 | |
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, 2016 and 2015, is set forth below (in millions, except per share data): Quarter Ended March 31 June 30 (1) (2) September 30 (2) December 31 (1) (2) (3) Year ended December 31, 2016 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, 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 $ $ $ $ (1) The second and fourth quarter of 2016 includes impairment of assets of $0.7 million and $0.1 million, respectively, comprised of other long-lived assets. (2) 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. (3) The fourth quarter of 2016 includes bargain purchase gain of $9.2 million related to the Oxford Instruments Superconducting Wire LLC., acquisition |
Description of Business (Detail
Description of Business (Details) - segment | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Description of Business | ||
Number of reportable segments | 2 | |
BSI | ||
Description of Business | ||
Segment revenue (as a percent) | 93.00% | 92.00% |
Number of operating segments | 3 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - Short-Term Investments, Restricted Cash and Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Concentration of Credit Risk | |||
Allowance for doubtful accounts | $ 7.9 | $ 9.1 | |
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 and Software Costs (Details) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 | |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | $ 21.3 | $ 20.6 | $ 26.2 |
Advertising | |||
Advertising expenses | $ 12.7 | $ 12.9 | $ 10.7 |
Summary of Significant Accoun57
Summary of Significant Accounting Policies - Stock-Based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-Based Compensation | |||
Total stock-based compensation | $ 9.4 | $ 8 | $ 9.4 |
Estimated forfeiture rate (as a percent) | 6.20% | 5.80% | 5.10% |
Cost of revenues | |||
Stock-Based Compensation | |||
Total stock-based compensation | $ 1.4 | $ 1.2 | $ 1.2 |
Selling, general and administrative | |||
Stock-Based Compensation | |||
Total stock-based compensation | 6.6 | 5.6 | 5.6 |
Research and development | |||
Stock-Based Compensation | |||
Total stock-based compensation | 1.4 | 1.2 | 2.6 |
Stock options | |||
Stock-Based Compensation | |||
Total stock-based compensation | $ 7.5 | $ 7.1 | $ 6.7 |
Risk-free interest rates, minimum (as a percent) | 1.23% | 1.58% | 1.78% |
Risk-free interest rates, maximum (as a percent) | 2.21% | 1.91% | 2.10% |
Volatility, minimum (as a percent) | 33.57% | 35.10% | 53.07% |
Volatility, maximum (as a percent) | 41.60% | 52.23% | 56.24% |
Stock options | Minimum | |||
Stock-Based Compensation | |||
Vesting period | 3 years | ||
Expected life | 5 years 9 months | 6 years | 6 years |
Expected dividend yield (as a percent) | 0.00% | ||
Stock options | Maximum | |||
Stock-Based Compensation | |||
Vesting period | 5 years | ||
Expected life | 7 years 7 days | 6 years 3 months | 6 years 3 months |
Expected dividend yield (as a percent) | 0.78% | ||
Restricted stock awards | |||
Stock-Based Compensation | |||
Total stock-based compensation | $ 1.6 | $ 0.9 | $ 2.7 |
Restricted stock units | |||
Stock-Based Compensation | |||
Total stock-based compensation | $ 0.3 |
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share | |||||||||||
Net income attributable to Bruker Corporation, as reported -basic | $ 153.6 | $ 101.6 | $ 56.7 | ||||||||
Net income attributable to Bruker Corporation, as reported -diluted | $ 153.6 | $ 101.6 | $ 56.7 | ||||||||
Weighted average shares outstanding: | |||||||||||
Weighted average shares outstanding-basic | 161.4 | 168.2 | 167.8 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock options, restricted stock awards and restricted stock units (in shares) | 0.8 | 0.9 | 1.7 | ||||||||
Weighted average shares outstanding-diluted | 162.2 | 169.1 | 169.5 | ||||||||
Net income per common share attributable to Bruker Corporation shareholders: | |||||||||||
Basic (in dollars per share) | $ 0.43 | $ 0.29 | $ 0.09 | $ 0.14 | $ 0.37 | $ 0.07 | $ 0.13 | $ 0.04 | $ 0.95 | $ 0.60 | $ 0.34 |
Diluted (in dollars per share) | $ 0.43 | $ 0.29 | $ 0.09 | $ 0.14 | $ 0.36 | $ 0.07 | $ 0.13 | $ 0.04 | $ 0.95 | $ 0.60 | $ 0.33 |
Summary of Significant Accoun59
Summary of Significant Accounting Policies - Antidilutive Securities (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock options and restricted stock units | |||
Anti-dilutive securities | |||
Number of shares excluded from the computation of diluted earnings per share | 0.6 | 1.3 | 0.1 |
Acquisitions - 2016, Considerat
Acquisitions - 2016, Consideration (Details) - USD ($) $ in Millions | Dec. 14, 2016 | Nov. 21, 2016 | Nov. 17, 2016 | Nov. 02, 2016 | Jun. 20, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Acquisitions | ||||||||
Cash Consideration | $ 24.3 | $ 28.6 | $ 3.9 | |||||
2016 Acquisitions | ||||||||
Acquisitions | ||||||||
Consideration | 31.4 | |||||||
Cash Consideration | $ 24.3 | |||||||
Yingsheng Technology Pty Ltd | ||||||||
Acquisitions | ||||||||
Consideration | $ 1.7 | |||||||
Cash Consideration | $ 1.2 | |||||||
Renishaw Diagnostics Ltd | ||||||||
Acquisitions | ||||||||
Consideration | $ 3.6 | |||||||
Cash Consideration | $ 1.2 | |||||||
Oxford Instruments Superconducting Wire LLC | ||||||||
Acquisitions | ||||||||
Ownership percentage acquired | 100.00% | |||||||
Consideration | $ 15.9 | |||||||
Cash Consideration | $ 15.9 | |||||||
Preclinical Imaging Business of OncoVision | ||||||||
Acquisitions | ||||||||
Consideration | $ 7.4 | |||||||
Cash Consideration | $ 6 | |||||||
Active Spectrum Inc | ||||||||
Acquisitions | ||||||||
Ownership percentage acquired | 100.00% | |||||||
Consideration | $ 2.8 |
Acquisitions - 2016, Allocation
Acquisitions - 2016, Allocation (Details) - USD ($) $ in Millions | Nov. 17, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Allocation of Consideration Transferred: | ||||||
Goodwill | $ 130.6 | $ 130.6 | $ 130.6 | $ 127.8 | $ 127.4 | |
Bargain purchase gain | (9.2) | |||||
2016 Acquisitions | ||||||
Consideration Transferred: | ||||||
Cash paid | 25.9 | |||||
Cash acquired | (1.6) | |||||
Shares issued | 2 | |||||
Contingent consideration | 5.1 | |||||
Total consideration transferred | 31.4 | |||||
Allocation of Consideration Transferred: | ||||||
Accounts receivable | 6.9 | 6.9 | ||||
Inventories | 19.1 | 19.1 | ||||
Other current assets | 0.1 | 0.1 | ||||
Property, plant and equipment | 7.5 | 7.5 | ||||
Goodwill | 1 | 1 | ||||
Bargain purchase gain | (9.2) | |||||
Deferred taxes, net | (1) | (1) | ||||
Liabilities assumed | (10.2) | (10.2) | ||||
Total consideration transferred | 31.4 | $ 31.4 | ||||
2016 Acquisitions | Maximum | ||||||
Allocation of Consideration Transferred: | ||||||
Amortization period for intangible assets acquired | 7 years | |||||
2016 Acquisitions | Minimum | ||||||
Allocation of Consideration Transferred: | ||||||
Amortization period for intangible assets acquired | 5 years | |||||
Oxford Instruments Superconducting Wire LLC | ||||||
Consideration Transferred: | ||||||
Total consideration transferred | $ 15.9 | |||||
Allocation of Consideration Transferred: | ||||||
Bargain purchase gain | (9.2) | $ (9.2) | ||||
Customer relationships | 2016 Acquisitions | ||||||
Allocation of Consideration Transferred: | ||||||
Intangible assets | 2 | 2 | ||||
Existing technology and related patents | 2016 Acquisitions | ||||||
Allocation of Consideration Transferred: | ||||||
Intangible assets | 14.6 | 14.6 | ||||
Trade names | 2016 Acquisitions | ||||||
Allocation of Consideration Transferred: | ||||||
Intangible assets | $ 0.6 | $ 0.6 |
Acquisitions - 2015 (Details)
Acquisitions - 2015 (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allocation of Consideration Transferred: | |||||
Goodwill | $ 130.6 | $ 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 | ||||
Additional consideration based on revenue and gross margin achievements | 7.7 | ||||
Maximum potential payments related to the contingent consideration | $ 4 | ||||
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 |
Acquisitions - 2014 (Details)
Acquisitions - 2014 (Details) - USD ($) $ in Millions | Jul. 28, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Acquisitions | ||||
Cash Consideration | $ 24.3 | $ 28.6 | $ 3.9 | |
Vutara Inc | ||||
Acquisitions | ||||
Consideration | $ 8.5 | |||
Cash Consideration | $ 3.9 |
Fair Value of Financial Instr64
Fair Value of Financial Instruments - Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Significant Other Observable Inputs (Level 2) | ||
Liabilities: | ||
Fair value of long-term fixed interest rate debt | $ 253.3 | $ 252.1 |
Recurring basis | ||
Assets: | ||
Embedded derivatives in purchase and delivery contracts | 4 | 0.5 |
Fixed price commodity contracts | 0.2 | |
Total assets recorded at fair value | 4.2 | 0.5 |
Liabilities: | ||
Contingent consideration | 16.6 | 4.6 |
Foreign exchange contracts | 1.4 | 1.3 |
Embedded derivatives in purchase and delivery contracts | 0.3 | 0.5 |
Fixed price commodity contracts | 0.4 | |
Total liabilities recorded at fair value | 18.3 | 6.8 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Embedded derivatives in purchase and delivery contracts | 4 | 0.5 |
Fixed price commodity contracts | 0.2 | |
Total assets recorded at fair value | 4.2 | 0.5 |
Liabilities: | ||
Foreign exchange contracts | 1.4 | 1.3 |
Embedded derivatives in purchase and delivery contracts | 0.3 | 0.5 |
Fixed price commodity contracts | 0.4 | |
Total liabilities recorded at fair value | 1.7 | 2.2 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Contingent consideration | 16.6 | 4.6 |
Total liabilities recorded at fair value | $ 16.6 | $ 4.6 |
Fair Value of Financial Instr65
Fair Value of Financial Instruments - Time and Call Deposits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Investments in time and call deposits | ||
Cash equivalents | $ 0 | |
Short-term investments | 157.9 | $ 201.2 |
Restricted cash | $ 3.4 | $ 4.2 |
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 |
Fair Value of Financial Instr66
Fair Value of Financial Instruments - Contingent Consideration (Details) - Contingent consideration - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in contingent consideration liabilities | ||
Balance at the beginning of the period | $ 4.6 | $ 11.9 |
Current period additions | 5.1 | 4.1 |
Current period adjustments | 6.9 | (7.7) |
Current period settlements | (3.6) | |
Foreign currency effect | (0.1) | |
Balance at the end of the period | 16.6 | 4.6 |
Amount of changes to the fair value of the contingent consideration recognized in earnings | $ 6.9 | $ (7.7) |
Accounts Receivable - Balances
Accounts Receivable - Balances (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Trade accounts receivable | ||
Gross accounts receivable | $ 251.8 | $ 243.8 |
Allowance for doubtful accounts | (7.9) | (9.1) |
Accounts receivable, net | $ 243.9 | $ 234.7 |
Accounts Receivable - Allowance
Accounts Receivable - Allowance (Details) - Allowance for doubtful accounts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of activity in the Company's allowance for doubtful accounts | |||
Balance at Beginning of Period | $ 9.1 | $ 10.1 | $ 7.9 |
Additions Charged to Expense | 0.9 | 2.1 | 5.5 |
Deductions Amounts Written Off | (2) | (2.5) | (2.5) |
Foreign Currency Impact | (0.1) | (0.6) | (0.8) |
Balance at End of Period | $ 7.9 | $ 9.1 | $ 10.1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventories | |||
Raw materials | $ 132.8 | $ 158.8 | |
Work-in-process | 181 | 131.1 | |
Finished goods | 91.8 | 93.3 | |
Demonstration units | 34.8 | 38.8 | |
Inventories | 440.4 | 422 | |
Inventory-in-transit | 37.5 | 44.7 | |
Write-down of demonstration inventories to net realizable value | $ 16.5 | $ 19.4 | $ 28.2 |
Property, Plant and Equipment70
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, plant and equipment, Net | |||
Property, plant and equipment, gross | $ 616.5 | $ 603.5 | |
Less accumulated depreciation and amortization | (377.4) | (372.4) | |
Property, plant and equipment, net | 239.1 | 231.1 | |
Depreciation and amortization | 32.6 | 32.6 | $ 39.5 |
Impairment charge on property, plant and equipment | 0.8 | 2.1 | |
Land | |||
Property, plant and equipment, Net | |||
Property, plant and equipment, gross | 26.7 | 27.6 | |
Building and leasehold improvements | |||
Property, plant and equipment, Net | |||
Property, plant and equipment, gross | 266.7 | 261.9 | |
Machinery, equipment, software and furniture and fixtures | |||
Property, plant and equipment, Net | |||
Property, plant and equipment, gross | $ 323.1 | $ 314 | |
BSI | CAM Division | |||
Property, plant and equipment, Net | |||
Impairment charge on property, plant and equipment | 5.5 | ||
BEST | |||
Property, plant and equipment, Net | |||
Impairment charge on property, plant and equipment | $ 5.1 |
Goodwill and Intangible Asset71
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill | |||
Balance at the beginning of the period | $ 130.6 | $ 127.8 | $ 127.4 |
Current period additions/adjustments | 1 | 6.8 | 5 |
Impairment | (0.7) | ||
Foreign currency impact | (1) | (3.3) | (4.6) |
Balance at the end of the period | $ 130.6 | 130.6 | $ 127.8 |
Restructuring initiative within Bruker BioSpin Group | |||
Goodwill | |||
Impairment | $ (0.7) |
Goodwill and Intangible Asset72
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible assets: | |||
Gross Carrying Amount, intangible assets subject to amortization | $ 192.4 | $ 176.3 | |
Accumulated Amortization, intangible assets subject to amortization | (123.3) | (102.2) | |
Net Carrying Amount, intangible assets subject to amortization | 69.1 | 74.1 | |
Gross Carrying Amount, total intangible assets | 193 | 176.9 | |
Net Carrying Amount, total intangible assets | 69.7 | 74.7 | |
Amortization expense related to intangible assets subject to amortization | 21.7 | 20.7 | $ 20.2 |
Restructuring initiative within 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 | 0.6 | |
Net Carrying Amount, intangible assets not subject to amortization | 0.6 | 0.6 | |
Existing technology and related patents | |||
Intangible assets: | |||
Gross Carrying Amount, intangible assets subject to amortization | 169 | 154.5 | |
Accumulated Amortization, intangible assets subject to amortization | (113.9) | (95.5) | |
Net Carrying Amount, intangible assets subject to amortization | 55.1 | 59 | |
Customer relationships | |||
Intangible assets: | |||
Gross Carrying Amount, intangible assets subject to amortization | 20 | 18.4 | |
Accumulated Amortization, intangible assets subject to amortization | (7.9) | (5.9) | |
Net Carrying Amount, intangible assets subject to amortization | 12.1 | 12.5 | |
Non compete contracts | |||
Intangible assets: | |||
Gross Carrying Amount, intangible assets subject to amortization | 1.8 | 1.8 | |
Accumulated Amortization, intangible assets subject to amortization | (1.1) | (0.6) | |
Net Carrying Amount, intangible assets subject to amortization | 0.7 | 1.2 | |
Trade names | |||
Intangible assets: | |||
Gross Carrying Amount, intangible assets subject to amortization | 1.6 | 1.6 | |
Accumulated Amortization, intangible assets subject to amortization | (0.4) | (0.2) | |
Net Carrying Amount, intangible assets subject to amortization | $ 1.2 | $ 1.4 |
Goodwill and Intangible Asset73
Goodwill and Intangible Assets - Future Amortization (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Estimated future amortization expense related to amortizable intangible asset: | ||
2,017 | $ 24.4 | |
2,018 | 20 | |
2,019 | 8.2 | |
2,020 | 7.3 | |
2,021 | 6.5 | |
Thereafter | 2.7 | |
Net Carrying Amount, intangible assets subject to amortization | $ 69.1 | $ 74.1 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Current Liabilities | ||||
Deferred revenue | $ 75.5 | $ 77 | ||
Accrued compensation | 83.8 | 88.5 | ||
Accrued warranty | $ 19.6 | $ 21.6 | 18.7 | 19.6 |
Contingent consideration | 13.5 | 4.6 | ||
Income taxes payable | 11.3 | 25.1 | ||
Other taxes payable | 12.4 | 25.4 | ||
Derivative liabilities | 1.8 | 2.2 | ||
Other accrued expenses | 52.5 | 61.1 | ||
Other current liabilities | $ 269.5 | $ 303.5 | ||
Changes in accrued warranty | ||||
Balance at the beginning of the year | 19.6 | 21.6 | ||
Accruals for warranties issued during the year | 17.4 | 21.1 | ||
Settlements of warranty claims | (17.8) | (21.7) | ||
Foreign currency impact | (0.5) | (1.4) | ||
Balance at the end of the year | $ 18.7 | $ 19.6 |
Debt - Components (Details)
Debt - Components (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt | ||
Total debt | $ 411.7 | $ 265.8 |
Current portion of long-term debt | (20.1) | (0.6) |
Total long-term debt, less current portion | 391.6 | 265.2 |
US Dollar notes under the Note Purchase Agreement | ||
Debt | ||
Debt, before unamortized debt issuance costs | 240 | 240 |
Unamortized debt issuance costs | (0.8) | (0.9) |
Capital lease obligations and other loans | ||
Debt | ||
Total debt | 1.5 | 1.7 |
2015 Credit Agreement | US Dollar revolving loan | ||
Debt | ||
Total debt | $ 171 | $ 25 |
Debt - Credit Agreements (Detai
Debt - Credit Agreements (Details) $ in Millions | 10 Months Ended | 12 Months Ended |
Oct. 26, 2015USD ($) | Dec. 31, 2016USD ($) | |
Revolving lines of credit | ||
Maximum commitment | $ 732.7 | |
Amended Credit Agreement | US Dollar revolving loan | ||
Revolving lines of credit | ||
Maximum commitment | $ 250 | |
Amended Credit Agreement | US Dollar revolving loan | Minimum | ||
Revolving lines of credit | ||
Interest rate added to base rate (as a percent) | 0.80% | |
Facility fee (as a percent) | 0.20% | |
Amended Credit Agreement | US Dollar revolving loan | Maximum | ||
Revolving lines of credit | ||
Interest rate added to base rate (as a percent) | 1.65% | |
Facility fee (as a percent) | 0.35% | |
Amended Credit Agreement | US Dollar revolving loan | Prime rate | ||
Revolving lines of credit | ||
Variable interest rate base | prime rate | |
Amended Credit Agreement | US Dollar revolving loan | Federal funds rate | ||
Revolving lines of credit | ||
Variable interest rate base | federal funds rate | |
Interest rate added to base rate (as a percent) | 0.50% | |
Amended Credit Agreement | US Dollar revolving loan | Adjusted LIBOR | ||
Revolving lines of credit | ||
Variable interest rate base | adjusted LIBOR | |
Interest rate added to base rate (as a percent) | 1.00% | |
Amended Credit Agreement | US Dollar revolving loan | LIBOR | ||
Revolving lines of credit | ||
Variable interest rate base | LIBOR | |
2015 Credit Agreement | US Dollar revolving loan | ||
Revolving lines of credit | ||
Maximum commitment | $ 500 | |
Maximum leverage ratio allowed | 3.5 | |
Minimum interest coverage ratio required | 2.5 | |
Actual leverage ratio | 1.49 | |
Actual interest coverage ratio | 15.5 | |
2015 Credit Agreement | US Dollar revolving loan | Minimum | ||
Revolving lines of credit | ||
Facility fee (as a percent) | 0.10% | |
2015 Credit Agreement | US Dollar revolving loan | Maximum | ||
Revolving lines of credit | ||
Facility fee (as a percent) | 0.20% | |
2015 Credit Agreement | US Dollar revolving loan | Greatest of prime rate, federal funds rate plus spread and adjusted LIBOR plus spread | Minimum | ||
Revolving lines of credit | ||
Interest rate added to base rate (as a percent) | 0.00% | |
2015 Credit Agreement | US Dollar revolving loan | Greatest of prime rate, federal funds rate plus spread and adjusted LIBOR plus spread | Maximum | ||
Revolving lines of credit | ||
Interest rate added to base rate (as a percent) | 0.30% | |
2015 Credit Agreement | US Dollar revolving loan | Prime rate | ||
Revolving lines of credit | ||
Variable interest rate base | prime rate | |
2015 Credit Agreement | US Dollar revolving loan | Federal funds rate | ||
Revolving lines of credit | ||
Variable interest rate base | federal funds rate | |
Interest rate added to base rate (as a percent) | 0.50% | |
2015 Credit Agreement | US Dollar revolving loan | Adjusted LIBOR | ||
Revolving lines of credit | ||
Variable interest rate base | adjusted LIBOR | |
Interest rate added to base rate (as a percent) | 1.00% | |
2015 Credit Agreement | US Dollar revolving loan | LIBOR | ||
Revolving lines of credit | ||
Variable interest rate base | LIBOR | |
2015 Credit Agreement | US Dollar revolving loan | LIBOR | Minimum | ||
Revolving lines of credit | ||
Interest rate added to base rate (as a percent) | 0.90% | |
2015 Credit Agreement | US Dollar revolving loan | LIBOR | Maximum | ||
Revolving lines of credit | ||
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, 2016 | Dec. 31, 2015 |
Revolving lines of credit | ||
Total Amount Committed by Lenders | $ 732.7 | |
Outstanding Borrowings | 171 | |
Outstanding Letters of Credit | 131.5 | |
Total Amount Available | 430.2 | |
Revolving Loans | ||
Revolving lines of credit | ||
Outstanding Letters of Credit | 131.5 | $ 137.7 |
Other lines of credit | ||
Revolving lines of credit | ||
Total Amount Committed by Lenders | 232.7 | |
Outstanding Letters of Credit | 130.4 | |
Total Amount Available | $ 102.3 | |
2015 Credit Agreement | US Dollar revolving loan | ||
Revolving lines of credit | ||
Weighted Average Interest Rate (as a percent) | 2.00% | |
Total Amount Committed by Lenders | $ 500 | |
Outstanding Borrowings | 171 | |
Outstanding Letters of Credit | 1.1 | |
Total Amount Available | $ 327.9 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - US Dollar notes under the Note Purchase Agreement $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($) | Jan. 31, 2012USD ($) | |
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 | 1.49 | |
Actual interest coverage ratio | 15.5 | |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Annual maturities of debt: | |||
2,017 | $ 20.1 | ||
2,018 | 0.1 | ||
2,019 | 15 | ||
2,020 | 171 | ||
Thereafter | 205.5 | ||
Total debt | 411.7 | $ 265.8 | |
Interest expense | $ 13.2 | $ 13 | $ 13.3 |
Debt - Debt Issuance Costs (Det
Debt - Debt Issuance Costs (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Recent Accounting Pronouncements | ||
Current portion of long-term debt and long-term debt | $ 411.7 | $ 265.8 |
Accounting Standards Update ("ASU") 2015-03 - Simplifying the Presentation of Debt Issuance Costs | Reclassification for retrospective adoption | ||
Recent Accounting Pronouncements | ||
Other current assets and other non-current assets | (0.9) | |
Current portion of long-term debt and long-term debt | (0.9) | |
US Dollar notes under the Note Purchase Agreement | ||
Recent Accounting Pronouncements | ||
Debt issuance costs | $ 0.8 | $ 0.9 |
Derivative Instruments and He81
Derivative Instruments and Hedging Activities - Risk Management (Details) € in Millions, ₪ in Millions, SFr in Millions, $ in Millions | Dec. 31, 2016ILS (₪) | Dec. 31, 2016CHF (SFr) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015CHF (SFr) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) |
Derivative instruments and hedging activities | |||||||
Credit agreement, amount outstanding | $ 171 | ||||||
Embedded derivatives in purchase and delivery contracts | |||||||
Derivative instruments and hedging activities | |||||||
Notional amount of derivative sale contracts | 120.7 | $ 59 | |||||
Notional amount of derivative purchase contracts | 2.3 | 4.1 | |||||
Fixed price commodity contracts | |||||||
Derivative instruments and hedging activities | |||||||
Notional Amount | 2.7 | 2 | |||||
Not designated as hedging instruments | Foreign exchange contracts | |||||||
Derivative instruments and hedging activities | |||||||
Notional Amount | 40.7 | 36.2 | |||||
Fair Value of Liabilities | 1.4 | 1.3 | |||||
Not designated as hedging instruments | US Dollar:EUR | |||||||
Derivative instruments and hedging activities | |||||||
Notional Amount | € 21.1 | 23.3 | € 21.1 | 24.2 | |||
Fair Value of Liabilities | 1.1 | 1.2 | |||||
Not designated as hedging instruments | US Dollar:CHF | |||||||
Derivative instruments and hedging activities | |||||||
Notional Amount | SFr 7.9 | 8 | SFr 5.9 | 6 | |||
Fair Value of Liabilities | 0.3 | 0.1 | |||||
Not designated as hedging instruments | ILS:US Dollar | |||||||
Derivative instruments and hedging activities | |||||||
Notional Amount | 4 | $ 6 | |||||
Not designated as hedging instruments | US Dollar:ILS | |||||||
Derivative instruments and hedging activities | |||||||
Notional Amount | ₪ 15.3 | 4 | |||||
Not designated as hedging instruments | PLN:EUR | |||||||
Derivative instruments and hedging activities | |||||||
Notional Amount | € 1.4 | 1.4 | |||||
2015 Credit Agreement | US Dollar revolving loan | |||||||
Derivative instruments and hedging activities | |||||||
Credit agreement, amount outstanding | $ 171 |
Derivative Instruments and He82
Derivative Instruments and Hedging Activities - Fair Values (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Foreign exchange contracts | Other current liabilities | ||
Derivative instruments and hedging activities | ||
Derivative liabilities | $ 1.4 | $ 1.3 |
Embedded derivatives in purchase and delivery contracts | Other current assets | ||
Derivative instruments and hedging activities | ||
Derivative assets | 2.7 | 0.5 |
Embedded derivatives in purchase and delivery contracts | Other long-term assets | ||
Derivative instruments and hedging activities | ||
Derivative assets | 1.3 | |
Embedded derivatives in purchase and delivery contracts | Other current liabilities | ||
Derivative instruments and hedging activities | ||
Derivative liabilities | 0.3 | 0.5 |
Fixed price commodity contracts | Other current assets | ||
Derivative instruments and hedging activities | ||
Derivative assets | $ 0.2 | |
Fixed price commodity contracts | Other current liabilities | ||
Derivative instruments and hedging activities | ||
Derivative liabilities | $ 0.4 |
Derivative Instruments and He83
Derivative Instruments and Hedging Activities - Gains and Losses (Details) - Not designated as hedging instruments - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative instruments and hedging activities | |||
Impact on net income of unrealized gains and losses resulting from changes in fair value of derivative instruments | $ 4.2 | $ 3.4 | $ (7.3) |
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 | (0.1) | 3.8 | (7.4) |
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 | 3.7 | (0.2) | 0.4 |
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 | $ 0.6 | $ (0.2) | $ (0.3) |
Income Taxes - Income Before Ta
Income Taxes - Income Before Taxes and Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Domestic and foreign components of income before taxes: | |||
Domestic | $ 18.4 | $ 31.6 | $ (83.2) |
Foreign | 159.2 | 96.4 | 184.5 |
Income before income taxes and noncontrolling interest in consolidated subsidiaries | 177.6 | 128 | 101.3 |
Current income tax (benefit) expense: | |||
Federal | (2.4) | 5.7 | (1.1) |
State | 0.3 | 1.3 | 0.4 |
Foreign | 59.8 | 50 | 50.8 |
Total current income tax expense | 57.7 | 57 | 50.1 |
Deferred income tax (benefit) expense: | |||
Federal | 3.1 | (31.1) | 0.7 |
State | (5.3) | (2.4) | (0.1) |
Foreign | (32.4) | (0.4) | (9) |
Total deferred income tax (benefit) expense | (34.6) | (33.9) | (8.4) |
Income tax provision | $ 23.1 | $ 23.1 | $ 41.7 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | (11.60%) | (3.60%) | (12.10%) |
Permanent differences | 8.20% | (2.00%) | 9.60% |
Tax contingencies | (3.00%) | 2.30% | (0.90%) |
Change in tax rates | 0.20% | 1.30% | (1.60%) |
Withholding taxes | 1.30% | 8.10% | 0.60% |
State income taxes, net of federal benefits | (2.90%) | (0.90%) | 0.20% |
Purchase accounting | 1.60% | 0.80% | 0.70% |
Tax credits | (3.00%) | (1.10%) | (4.30%) |
Other | 4.30% | (2.70%) | (1.20%) |
Change in valuation allowance for unbenefitted losses | (17.10%) | (19.20%) | 15.20% |
Effective tax rate | 13.00% | 18.00% | 41.20% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets: | ||||
Accounts receivable | $ 2.9 | $ 2 | ||
Accrued expenses | 4.6 | 4.7 | ||
Compensation | 30.6 | 30.1 | ||
Investments | 1.4 | |||
Deferred revenue | 2 | 0.2 | ||
Net operating loss carryforwards | 14.1 | 16 | ||
Fixed assets | 0.8 | 0.8 | ||
Inventory | 3.2 | 2.9 | ||
Foreign tax and other tax credit carryforwards | 17.2 | 32.3 | ||
Unrealized currency gain/loss | 3 | 6.1 | ||
Other | 7.5 | |||
Gross deferred tax assets | 78.4 | 104 | ||
Less valuation allowance | (0.5) | (37.2) | $ (57.4) | $ (42.4) |
Total deferred tax assets | 77.9 | 66.8 | ||
Deferred tax liabilities: | ||||
Accounts receivable | 0.6 | |||
Foreign statutory reserves | 1.1 | 5.3 | ||
Intangibles | 7.2 | 9.4 | ||
Accrued expenses | 1.2 | 8 | ||
Other | 2 | |||
Total deferred tax liabilities | 11.5 | 23.3 | ||
Net deferred tax assets | $ 66.4 | $ 43.5 |
Income Taxes - Valuation allowa
Income Taxes - Valuation allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes | |||
Valuation allowance beginning of the year | $ 37.2 | $ 57.4 | $ 42.4 |
Increases (decreases) recorded to income tax provision | (36.7) | (20.2) | 15 |
Valuation allowance end of the year | $ 0.5 | $ 37.2 | $ 57.4 |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) $ in Millions | Dec. 31, 2016USD ($) |
State | |
Net operating loss carryforwards | |
Net operating loss carryforwards | $ 40.2 |
Foreign | German Trade Tax | |
Net operating loss carryforwards | |
Net operating loss carryforwards | 41 |
Foreign | Other foreign countries | |
Net operating loss carryforwards | |
Net operating loss carryforwards | $ 23.1 |
Income Taxes - Tax Credit Carry
Income Taxes - Tax Credit Carryforwards (Details) $ in Millions | Dec. 31, 2016USD ($) |
U.S. | |
Tax credits available to offset future tax liabilities | |
Tax credits | $ 15.1 |
U.S. | Research and development | |
Tax credits available to offset future tax liabilities | |
Tax credits | 12.2 |
U.S. | Foreign tax credits | |
Tax credits available to offset future tax liabilities | |
Tax credits | 2.9 |
State | Research and development | |
Tax credits available to offset future tax liabilities | |
Tax credits | $ 7.8 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes | |||
Undistributed earnings of foreign subsidiaries on which U.S. income taxes are not provided | $ 1,200 | ||
Unrecognized deferred U.S. income taxes on undistributed earnings of foreign subsidiaries | 90 | ||
Gross unrecognized tax benefits, excluding interest | 6.2 | ||
Portion of unrecognized tax benefits, excluding interest, which if recognized, would result in a reduction of the effective tax rate | 5.3 | ||
Reasonably possible reduction in unrecognized tax benefits due to statutes of limitations expiring and favorably settling with taxing authorities | 2.1 | ||
Reconciliation of beginning and ending amount of unrecognized tax benefits | |||
Gross unrecognized tax benefits at the beginning of the year | 33.2 | $ 40 | $ 51.7 |
Gross decreases - tax positions in prior periods | (4.8) | (1.5) | (6.4) |
Gross increases - current period tax positions | 0.9 | 0.4 | |
Gross decreases - current period tax positions | (0.3) | ||
Settlements | (21.3) | (2.7) | (0.6) |
Lapse of statutes | (1.8) | (3) | (4.4) |
Gross unrecognized tax benefits at the end of the year | 6.2 | 33.2 | $ 40 |
Accrued interest and penalties related to uncertain tax positions | 0.5 | 4.7 | |
Penalties and interest (benefit) expense relating to unrecognized tax benefits | $ (1.8) | $ 1.4 |
Post Retirement Benefit Plans -
Post Retirement Benefit Plans - Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Benefit Plans | |||
Company's contributions to defined contribution plans | $ 6 | $ 6.5 | $ 7.1 |
Post Retirement Benefit Plans92
Post Retirement Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of net periodic benefit costs: | |||
Service cost | $ 6.8 | $ 7.2 | $ 4.8 |
Interest cost | 2.2 | 2.5 | 4.6 |
Expected return on plan assets | (1.8) | (2.3) | (4.1) |
Settlement loss recognized | 10.2 | ||
Amortization of net loss | 4.1 | 4.1 | 0.1 |
Net periodic benefit costs | $ 11.3 | $ 21.7 | $ 5.4 |
Post Retirement Benefit Plans93
Post Retirement Benefit Plans - Changes in Benefit Obligations and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 199.2 | $ 207.2 | |
Service cost | 6.8 | 7.2 | $ 4.8 |
Interest cost | 2.2 | 2.5 | 4.6 |
Plan participant contributions | 4 | 3.9 | |
Plan curtailments | (0.3) | ||
Benefits paid | (7.1) | 1.3 | |
Actuarial loss (gain) | 11.1 | 7.5 | |
Plan amendments | 14.7 | ||
Plan settlements | (39.7) | ||
Premiums paid | (1.4) | (1.4) | |
Plan combinations | 0.9 | ||
Impact of foreign currency exchange rates | (4.7) | (4.6) | |
Benefit obligation at end of year | 210.1 | 199.2 | 207.2 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 106.1 | 139.6 | |
Return on plan assets | 1.3 | (3.7) | |
Plan participant and employer contributions | 9.2 | 9.5 | |
Benefits paid | (7.1) | 1.3 | |
Plan settlements | (39.7) | ||
Premiums paid | (1.4) | (1.4) | |
Plan combinations | 0.1 | ||
Impact of foreign currency exchange rates | (2.2) | 0.4 | |
Fair value of plan assets at end of year | 105.9 | 106.1 | $ 139.6 |
Net under funded status | (104.2) | (93.1) | |
Accumulated benefit obligation | $ 199.9 | $ 189.7 |
Post Retirement Benefit Plans94
Post Retirement Benefit Plans - Balance Sheet and AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Amounts recognized in the accompanying consolidated balance sheets: | ||
Current liabilities | $ (1.7) | $ (1.5) |
Non-current liabilities | (102.5) | (91.6) |
Net amount recognized | (104.2) | (93.1) |
Pre-tax amounts recognized in accumulated other comprehensive income: | ||
Prior service cost | (10.6) | (12.2) |
Net actuarial loss | (56) | (48.5) |
Accumulated other comprehensive loss | (66.6) | (60.7) |
Accumulated contributions in excess of net periodic benefit cost | (37.6) | (32.4) |
Net amount recognized | (104.2) | $ (93.1) |
Accumulated other comprehensive income expected to be recognized as amortization of net loss within net periodic benefit cost in 2017 | $ 4.6 |
Post Retirement Benefit Plans95
Post Retirement Benefit Plans - Assumptions (Details) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assumptions used to determine projected benefit obligations | |||
Expected return on plan assets (as a percent) | 2.90% | ||
Minimum | |||
Assumptions used to determine projected benefit obligations | |||
Discount rate (as a percent) | 0.20% | 0.30% | 0.70% |
Expected return on plan assets (as a percent) | 0.00% | 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) | 2.10% | 2.50% | 2.40% |
Expected return on plan assets (as a percent) | 3.00% | 3.00% | |
Expected rate of compensation increase (as a percent) | 3.00% | 3.00% | 3.00% |
Post Retirement Benefit Plans96
Post Retirement Benefit Plans - Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Plan Assets: | |||
Total plan assets | $ 105.9 | $ 106.1 | $ 139.6 |
Group BPCE Life | |||
Plan Assets: | |||
Total plan assets | 1.3 | 1.4 | |
Swiss Life Collective BVG Foundation | |||
Plan Assets: | |||
Total plan assets | $ 104.6 | 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% | ||
Significant Other Observable Inputs (Level 2) | |||
Plan Assets: | |||
Total plan assets | $ 105.9 | 106.1 | |
Significant Other Observable Inputs (Level 2) | Group BPCE Life | |||
Plan Assets: | |||
Total plan assets | 1.3 | 1.4 | |
Significant Other Observable Inputs (Level 2) | Swiss Life Collective BVG Foundation | |||
Plan Assets: | |||
Total plan assets | $ 104.6 | $ 104.7 |
Post Retirement Benefit Plans97
Post Retirement Benefit Plans - Future Benefit Payments (Details) $ in Millions | Dec. 31, 2016USD ($) |
Estimated future benefit payments | |
2,017 | $ 2.1 |
2,018 | 2.2 |
2,019 | 3 |
2,020 | 3.2 |
2,021 | 3.5 |
2022-2026 | $ 24.9 |
Commitments and Contingencies -
Commitments and Contingencies - Litigation, Governmental Investigations (Details) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2016USD ($)item | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
KFTC investigation | |||
Contingencies | |||
Number of bids under investigation | item | 3 | ||
Fine assessed | $ 15,000 | ||
Minimum | KFTC investigation | |||
Contingencies | |||
Period of suspension or restriction | 3 months | ||
Maximum | Korea | |||
Contingencies | |||
Sales to governmental agencies as a percentage of total revenue | 1.00% | ||
Maximum | KFTC investigation | |||
Contingencies | |||
Period of suspension or restriction | 6 months | ||
Legal | |||
Contingencies | |||
Accruals for potential contingencies | $ 0 | $ 0 |
Commitments and Contingencies99
Commitments and Contingencies - Leases, Purchase Commitments, License Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leases | |||
Total rental expense under operating leases | $ 22 | $ 23 | $ 22.8 |
Future minimum lease payments under non-cancelable operating leases | |||
2,017 | 20.9 | ||
2,018 | 14.6 | ||
2,019 | 10.9 | ||
2,020 | 8.9 | ||
2,021 | 6.6 | ||
Thereafter | 14 | ||
Total | 75.9 | ||
Capital Leases | |||
Cost of the buildings under the capital leases | 2.7 | ||
Accumulated amortization of the leased buildings | 0.7 | ||
Unconditional Purchase Commitments | |||
Aggregate amount of unconditional purchase commitments | 149.3 | ||
License Agreements | |||
Income from cross-licensing agreements | 1.9 | 2.5 | 2.6 |
Licensing fees | $ 3 | $ 3.2 | $ 3.3 |
Commitments and Contingencie100
Commitments and Contingencies - Guarantees (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Letters of Credit and Guarantees | ||
Bank guarantees primarily for customer advances | $ 131.5 | |
Revolving Loans | ||
Letters of Credit and Guarantees | ||
Bank guarantees primarily for customer advances | $ 131.5 | $ 137.7 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchase and Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 23, 2016 | Sep. 23, 2016 | Jun. 24, 2016 | Mar. 24, 2016 | Feb. 22, 2016 | Nov. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Shareholders' Equity | ||||||||
Repurchases to date (in shares) | 10,698,195 | 4,290,527 | ||||||
Repurchases to date | $ 249.3 | $ 90.9 | ||||||
Dividend declared (in dollars per share) | $ 0.04 | $ 0.16 | ||||||
Dividend paid | $ 6.4 | $ 6.4 | $ 6.5 | $ 6.5 | $ 25.8 | |||
Target dividend per annum (in dollars per share) | $ 0.16 | |||||||
Repurchase Program | ||||||||
Shareholders' Equity | ||||||||
Common stock repurchased during the period (in shares) | 6,475,480 | |||||||
Aggregate cost of common stock repurchased during the period | $ 160 | |||||||
Amount approved for repurchase of common stock | $ 225 | |||||||
Repurchases to date (in shares) | 9,312,522 | |||||||
Repurchases to date | $ 225 | |||||||
Anti-Dilutive Repurchase Program | ||||||||
Shareholders' Equity | ||||||||
Common stock repurchased during the period (in shares) | 1,245,000 | |||||||
Aggregate cost of common stock repurchased during the period | $ 24.9 |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of the components of accumulated other comprehensive income (loss), net of tax | |||
Balance at beginning of period | $ (44.2) | $ 28.2 | $ 182.4 |
Other comprehensive income (loss) | (35.7) | (86.4) | (154.3) |
Realized loss on reclassification | 4 | 14 | 0.1 |
Balance at end of period | (75.9) | (44.2) | 28.2 |
Foreign Currency Translation | |||
Summary of the components of accumulated other comprehensive income (loss), net of tax | |||
Balance at beginning of period | 3.2 | 66 | 197.6 |
Other comprehensive income (loss) | (27.3) | (62.8) | (131.6) |
Balance at end of period | (24.1) | 3.2 | 66 |
Pension Liability Adjustment | |||
Summary of the components of accumulated other comprehensive income (loss), net of tax | |||
Balance at beginning of period | (47.4) | (37.8) | (15.2) |
Other comprehensive income (loss) | (8.4) | (23.6) | (22.7) |
Realized loss on reclassification | 4 | 14 | 0.1 |
Balance at end of period | $ (51.8) | $ (47.4) | $ (37.8) |
Stock-Based Compensation - Plan
Stock-Based Compensation - Plan Information (Details) - shares | 1 Months Ended | 12 Months Ended | |
May 31, 2010 | Dec. 31, 2016 | Dec. 31, 2000 | |
The 2000 Plan | |||
Stock-Based Compensation | |||
Plan expiration term | 10 years | ||
2010 Plan | |||
Stock-Based Compensation | |||
Common stock authorized for issuance (in shares) | 8,000,000 | ||
2010 Plan | Minimum | |||
Stock-Based Compensation | |||
Vesting period | 3 years | ||
2010 Plan | Maximum | |||
Stock-Based Compensation | |||
Vesting period | 5 years | ||
2016 Plan | |||
Stock-Based Compensation | |||
Common stock authorized for issuance (in shares) | 9,500,000 | ||
2016 Plan | Minimum | |||
Stock-Based Compensation | |||
Vesting period | 3 years | ||
2016 Plan | Maximum | |||
Stock-Based Compensation | |||
Vesting period | 4 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock options, Shares Subject to Options | |||
Outstanding at the beginning of the period (in shares) | 4,637,279 | ||
Granted (in shares) | 1,070,266 | ||
Exercised (in shares) | (895,078) | ||
Forfeited (in shares) | (186,789) | ||
Outstanding at the end of the period (in shares) | 4,625,678 | 4,637,279 | |
Exercisable at the end of the period (in shares) | 2,287,488 | ||
Exercisable and expected to vest at the end of the period (in shares) | 4,479,307 | ||
Stock options, Weighted Average Option Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 16.72 | ||
Granted (in dollars per share) | 23.08 | ||
Exercised (in dollars per share) | 13.43 | ||
Forfeited (in dollars per share) | 19.15 | ||
Outstanding at the end of the period (in dollars per share) | 18.73 | $ 16.72 | |
Exercisable at the end of the period (in dollars per share) | 16.02 | ||
Exercisable and expected to vest at the end of the period (in dollars per share) | $ 18.64 | ||
Stock options, additional information | |||
Weighted Average Remaining Contractual Term, Outstanding | 6 years 8 months 12 days | ||
Weighted Average Remaining Contractual Term, Exercisable | 5 years 1 month 6 days | ||
Weighted Average Remaining Contractual Term, Exercisable and expected to vest | 6 years 7 months 6 days | ||
Aggregate Intrinsic Value, Outstanding | $ 13.6 | ||
Aggregate Intrinsic Value, Exercisable | 11.9 | ||
Aggregate Intrinsic Value, Exercisable and expected to vest | $ 13.5 | ||
Fair value of the Company's common stock price (in dollars per share) | $ 21.18 | ||
Weighted average fair values of options granted (in dollars per share) | $ 7.72 | $ 7.82 | $ 10.81 |
Intrinsic value of options exercised | $ 11.2 | $ 8.2 | $ 10 |
Additional share-based compensation disclosures | |||
Unrecognized pre-tax stock-based compensation expense | $ 15 | ||
Weighted average remaining service period | 2 years 7 months 13 days |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Award and RSU Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted stock awards | |||
Restricted stock, Shares Subject to Restriction | |||
Outstanding at the beginning of the period (in shares) | 243,150 | ||
Granted (in shares) | 13,105 | ||
Vested (in shares) | (82,374) | ||
Forfeited (in shares) | (1,375) | ||
Outstanding at the end of the period (in shares) | 172,506 | 243,150 | |
Restricted stock, Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 18.58 | ||
Granted (in dollars per share) | 24.80 | ||
Vested (in dollars per share) | 17.95 | ||
Forfeited (in dollars per share) | 16.57 | ||
Outstanding at the end of the period (in dollars per share) | $ 19.37 | $ 18.58 | |
Total fair value of shares vested | $ 1.5 | $ 1 | $ 3 |
Unrecognized pre-tax stock-based compensation expense | $ 2.5 | ||
Weighted average remaining service period | 2 years 1 month 24 days | ||
Restricted stock units | |||
Restricted stock, Shares Subject to Restriction | |||
Granted (in shares) | 262,475 | ||
Vested (in shares) | 0 | ||
Forfeited (in shares) | (158) | ||
Outstanding at the end of the period (in shares) | 262,317 | ||
Restricted stock, Weighted Average Grant Date Fair Value | |||
Granted (in dollars per share) | $ 22.33 | ||
Forfeited (in dollars per share) | 26.29 | ||
Outstanding at the end of the period (in dollars per share) | $ 22.32 | ||
Unrecognized pre-tax stock-based compensation expense | $ 5.1 | ||
Weighted average remaining service period | 3 years 9 months | ||
Minimum | Restricted stock awards | |||
Restricted stock, Weighted Average Grant Date Fair Value | |||
Period of service restrictions | 1 year | ||
Maximum | Restricted stock awards | |||
Restricted stock, Weighted Average Grant Date Fair Value | |||
Period of service restrictions | 5 years |
Other Charges, Net - Components
Other Charges, Net - Components (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Charges, Net | ||||||||
Acquisition-related expenses (income), net | $ 9 | $ (7.2) | $ 2.9 | |||||
Professional fees incurred in connection with internal investigation | 0.4 | 3.2 | ||||||
Pension settlement charge | 10.2 | |||||||
Information technology transformation costs | 6.2 | 8.9 | 4 | |||||
Restructuring charges | 9.8 | 8.1 | 11.1 | |||||
Long-lived asset impairments | $ 0.1 | $ 0.7 | $ 0.3 | $ 2.5 | $ 1.8 | 0.8 | 4.6 | 11.5 |
Other charges, net | $ 25.8 | $ 25 | $ 32.7 |
Other Charges, Net - Restructur
Other Charges, Net - Restructuring Plans (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)employee | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Restructuring charges | |||
Restructuring expenses | $ 20.8 | $ 29.3 | $ 36.1 |
Restructuring initiative within Bruker CALID and Bruker Nano Groups | |||
Restructuring charges | |||
Expected reduction in number of employees | employee | 125 | ||
Restructuring expenses | $ 10.4 | ||
Restructuring initiative within Bruker CALID and Bruker Nano Groups | Cost of revenues | |||
Restructuring charges | |||
Restructuring expenses | 6.8 | ||
Restructuring initiative within Bruker CALID and Bruker Nano Groups | Other charges, net | |||
Restructuring charges | |||
Restructuring expenses | 3.6 | ||
Restructuring initiative within Bruker CALID and Bruker Nano Groups | Severance and Exit Costs | |||
Restructuring charges | |||
Restructuring expenses | 7.8 | ||
Restructuring initiative within Bruker CALID and Bruker Nano Groups | Severance and Exit Costs | Cost of revenues | |||
Restructuring charges | |||
Restructuring expenses | 4.4 | ||
Restructuring initiative within Bruker CALID and Bruker Nano Groups | Severance and Exit Costs | Other charges, net | |||
Restructuring charges | |||
Restructuring expenses | 3.4 | ||
Restructuring initiative within Bruker CALID and Bruker Nano Groups | Inventory Writedown and Asset Impairment | |||
Restructuring charges | |||
Restructuring expenses | 2.6 | ||
Restructuring initiative within Bruker CALID and Bruker Nano Groups | Inventory Writedown and Asset Impairment | Cost of revenues | |||
Restructuring charges | |||
Restructuring expenses | 2.4 | ||
Restructuring initiative within Bruker CALID and Bruker Nano Groups | Inventory Writedown and Asset Impairment | Other charges, net | |||
Restructuring charges | |||
Restructuring expenses | 0.2 | ||
Restructuring initiative within Bruker CALID and Bruker Nano Groups | Minimum | |||
Restructuring charges | |||
Expected restructuring and related one-time charges | 11 | ||
Restructuring initiative within Bruker CALID and Bruker Nano Groups | Minimum | Severance and Exit Costs | |||
Restructuring charges | |||
Expected restructuring and related one-time charges | 8.4 | ||
Restructuring initiative within Bruker CALID and Bruker Nano Groups | Minimum | Inventory Writedown and Asset Impairment | |||
Restructuring charges | |||
Expected restructuring and related one-time charges | 2.6 | ||
Restructuring initiative within Bruker CALID and Bruker Nano Groups | Maximum | |||
Restructuring charges | |||
Expected restructuring and related one-time charges | 13 | ||
Restructuring initiative within Bruker CALID and Bruker Nano Groups | Maximum | Severance and Exit Costs | |||
Restructuring charges | |||
Expected restructuring and related one-time charges | 10 | ||
Restructuring initiative within Bruker CALID and Bruker Nano Groups | Maximum | Inventory Writedown and Asset Impairment | |||
Restructuring charges | |||
Expected restructuring and related one-time charges | $ 3 | ||
Restructuring initiative within Bruker BioSpin Group | |||
Restructuring charges | |||
Reduction in employee headcount (as a percent) | 9.00% | ||
Restructuring expenses | $ 3.3 | 16.2 | |
Restructuring initiative within Bruker BioSpin Group | Cost of revenues | |||
Restructuring charges | |||
Restructuring expenses | 2.2 | 12.3 | |
Restructuring initiative within Bruker BioSpin Group | Other charges, net | |||
Restructuring charges | |||
Restructuring expenses | 1.1 | 3.9 | |
Restructuring initiative within Bruker BioSpin Group | Severance and Exit Costs | |||
Restructuring charges | |||
Restructuring expenses | 3.3 | 12 | |
Restructuring initiative within Bruker BioSpin Group | Severance and Exit Costs | Cost of revenues | |||
Restructuring charges | |||
Restructuring expenses | 2.2 | 10.2 | |
Restructuring initiative within Bruker BioSpin Group | Severance and Exit Costs | Other charges, net | |||
Restructuring charges | |||
Restructuring expenses | 1.1 | 1.8 | |
Restructuring initiative within Bruker BioSpin Group | Inventory Writedown and Asset Impairment | |||
Restructuring charges | |||
Restructuring expenses | 4.2 | ||
Restructuring initiative within Bruker BioSpin Group | Inventory Writedown and Asset Impairment | Cost of revenues | |||
Restructuring charges | |||
Restructuring expenses | 2.1 | ||
Restructuring initiative within Bruker BioSpin Group | Inventory Writedown and Asset Impairment | Other charges, net | |||
Restructuring charges | |||
Restructuring expenses | 2.1 | ||
Various other programs | |||
Restructuring charges | |||
Restructuring expenses | 7.1 | 13.1 | 36.1 |
Various other programs | Cost of revenues | |||
Restructuring charges | |||
Restructuring expenses | 2 | 8.9 | 25 |
Various other programs | Other charges, net | |||
Restructuring charges | |||
Restructuring expenses | $ 5.1 | $ 4.2 | $ 11.1 |
Other Charges, Net - Restruc108
Other Charges, Net - Restructuring Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in the restructuring reserves | |||
Balance at the beginning of the period | $ 23.1 | $ 16.1 | $ 11.5 |
Restructuring charges | 20.8 | 29.3 | 36.1 |
Cash payments | (22.1) | (18) | (22.9) |
Non-cash adjustments | (5.4) | (2.9) | (7.5) |
Foreign currency impact | (0.2) | (1.4) | (1.1) |
Balance at the end of the period | 16.2 | 23.1 | 16.1 |
BSI | |||
Changes in the restructuring reserves | |||
Restructuring charges | 20.8 | 28.4 | 36.1 |
BEST | |||
Changes in the restructuring reserves | |||
Restructuring charges | 0.9 | ||
Severance | |||
Changes in the restructuring reserves | |||
Balance at the beginning of the period | 10.3 | 7.1 | 8.4 |
Restructuring charges | 10.6 | 15.9 | 15.5 |
Cash payments | (15.6) | (11.9) | (14.6) |
Non-cash adjustments | (0.4) | (0.2) | (1.4) |
Foreign currency impact | (0.6) | (0.8) | |
Balance at the end of the period | 4.9 | 10.3 | 7.1 |
Exit Costs | |||
Changes in the restructuring reserves | |||
Balance at the beginning of the period | 2.4 | 1.3 | 1.1 |
Restructuring charges | 7.2 | 6.4 | 8.8 |
Cash payments | (5.6) | (5.1) | (8.2) |
Non-cash adjustments | (0.3) | (0.2) | (0.3) |
Foreign currency impact | (0.1) | ||
Balance at the end of the period | 3.7 | 2.4 | 1.3 |
Provisions for Excess Inventory | |||
Changes in the restructuring reserves | |||
Balance at the beginning of the period | 10.4 | 7.7 | 2 |
Restructuring charges | 3 | 7 | 11.8 |
Cash payments | (0.9) | (1) | (0.1) |
Non-cash adjustments | (4.7) | (2.5) | (5.8) |
Foreign currency impact | (0.2) | (0.8) | (0.2) |
Balance at the end of the period | $ 7.6 | $ 10.4 | $ 7.7 |
Interest and Other Income (E109
Interest and Other Income (Expense), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest and Other Income (Expense), Net | |||
Interest income | $ 0.3 | $ 1.2 | $ 0.8 |
Interest expense | (13.2) | (13) | (13.3) |
Exchange gains (losses) on foreign currency transactions | 4.1 | (5.5) | (2) |
Gain on bargain purchase | 9.2 | ||
(Loss) gain on disposal of product line | (0.2) | 8.3 | |
Other | (0.2) | 2.1 | |
Interest and other income (expense), net | $ 0.4 | $ (17.7) | $ (4.1) |
Business Segment Information -
Business Segment Information - Information by Segment (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Business segment information | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Total revenue | $ 470.3 | $ 393.9 | $ 371.7 | $ 375.4 | $ 478.2 | $ 396.1 | $ 396 | $ 353.5 | $ 1,611.3 | $ 1,623.8 | $ 1,808.9 |
Total operating income | 76.9 | $ 45.9 | 20.4 | $ 34 | 70.7 | 28.2 | 31.6 | $ 15.2 | 177.2 | 145.7 | 105.4 |
Impairment of assets | 0.1 | $ 0.7 | 0.3 | $ 2.5 | $ 1.8 | 0.8 | 4.6 | 11.5 | |||
Total assets | 1,808.4 | 1,730 | 1,808.4 | 1,730 | |||||||
Total capital expenditures | 37.1 | 34.2 | 33.8 | ||||||||
Total depreciation and amortization | 54.3 | 53.3 | 59.7 | ||||||||
Eliminations | |||||||||||
Business segment information | |||||||||||
Total revenue | (11.5) | (9.1) | (18.6) | ||||||||
Corporate, eliminations and other | |||||||||||
Business segment information | |||||||||||
Total operating income | 1.7 | 1 | 2.2 | ||||||||
Total assets | (7.4) | (63.5) | (7.4) | (63.5) | |||||||
BSI | |||||||||||
Business segment information | |||||||||||
Impairment of assets | 0.8 | 4.6 | 6.4 | ||||||||
Total capital expenditures | 34.6 | 30.1 | 31.5 | ||||||||
Total depreciation and amortization | 51.3 | 50.5 | 55.1 | ||||||||
BSI | Operating segments | |||||||||||
Business segment information | |||||||||||
Total revenue | 1,492.6 | 1,499.2 | 1,674.6 | ||||||||
Total operating income | 168.9 | 133.2 | 99.8 | ||||||||
Total assets | 1,779.8 | 1,714.4 | 1,779.8 | 1,714.4 | |||||||
BEST | |||||||||||
Business segment information | |||||||||||
Impairment of assets | 5.1 | ||||||||||
Total capital expenditures | 2.5 | 4.1 | 2.3 | ||||||||
Total depreciation and amortization | 3 | 2.8 | 4.6 | ||||||||
BEST | Operating segments | |||||||||||
Business segment information | |||||||||||
Total revenue | 130.2 | 133.7 | 152.9 | ||||||||
Total operating income | 6.6 | 11.5 | $ 3.4 | ||||||||
Total assets | $ 36 | $ 79.1 | $ 36 | $ 79.1 |
Business Segment Information111
Business Segment Information - Information by Geographical Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue and property, plant and equipment by geographical area | |||||||||||
Total revenue | $ 470.3 | $ 393.9 | $ 371.7 | $ 375.4 | $ 478.2 | $ 396.1 | $ 396 | $ 353.5 | $ 1,611.3 | $ 1,623.8 | $ 1,808.9 |
Total property, plant and equipment, net | 239.1 | 231.1 | 239.1 | 231.1 | |||||||
United States | |||||||||||
Revenue and property, plant and equipment by geographical area | |||||||||||
Total revenue | 428.2 | 380.4 | 387.6 | ||||||||
Total property, plant and equipment, net | 46.4 | 43.2 | 46.4 | 43.2 | |||||||
Germany | |||||||||||
Revenue and property, plant and equipment by geographical area | |||||||||||
Total revenue | 189.5 | 198.9 | 215.1 | ||||||||
Total property, plant and equipment, net | 122.5 | 125.9 | 122.5 | 125.9 | |||||||
Rest of Europe | |||||||||||
Revenue and property, plant and equipment by geographical area | |||||||||||
Total revenue | 393.4 | 479.6 | 522.9 | ||||||||
Total property, plant and equipment, net | 63.3 | 54.7 | 63.3 | 54.7 | |||||||
Asia Pacific | |||||||||||
Revenue and property, plant and equipment by geographical area | |||||||||||
Total revenue | 458.1 | 414.9 | 495.5 | ||||||||
Total property, plant and equipment, net | 4.4 | 4.2 | 4.4 | 4.2 | |||||||
Other | |||||||||||
Revenue and property, plant and equipment by geographical area | |||||||||||
Total revenue | 142.1 | 150 | $ 187.8 | ||||||||
Total property, plant and equipment, net | $ 2.5 | $ 3.1 | $ 2.5 | $ 3.1 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Certain shareholders | |||
Related parties | |||
Expenses incurred | $ 3.9 | $ 1.8 | $ 2 |
Law firm | |||
Related parties | |||
Expenses incurred | 2.4 | ||
Financial services firm | |||
Related parties | |||
Expenses incurred | 0.1 | ||
Life science supply company | |||
Related parties | |||
Revenue | 0.9 | ||
Life sciences company | |||
Related parties | |||
Revenue | 1.1 | 0.7 | 1.9 |
Expenses incurred | $ 0.1 | ||
Thermal Analysis Company | |||
Related parties | |||
Revenue | $ 0.2 | $ 0.5 |
Quarterly Financial Data (Un113
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net revenue | $ 470.3 | $ 393.9 | $ 371.7 | $ 375.4 | $ 478.2 | $ 396.1 | $ 396 | $ 353.5 | $ 1,611.3 | $ 1,623.8 | $ 1,808.9 |
Gross profit | 220.4 | 185.2 | 170.1 | 166.8 | 211.5 | 167.5 | 169.4 | 160.2 | 742.5 | 708.6 | 763.3 |
Operating income | 76.9 | 45.9 | 20.4 | 34 | 70.7 | 28.2 | 31.6 | 15.2 | 177.2 | 145.7 | 105.4 |
Net income attributable to Bruker Corporation | $ 69 | $ 46.5 | $ 14.5 | $ 23.6 | $ 61.4 | $ 11.8 | $ 21.9 | $ 6.5 | $ 153.6 | $ 101.6 | $ 56.7 |
Net income per common share attributable to Bruker Corporation shareholders: | |||||||||||
Basic (in dollars per share) | $ 0.43 | $ 0.29 | $ 0.09 | $ 0.14 | $ 0.37 | $ 0.07 | $ 0.13 | $ 0.04 | $ 0.95 | $ 0.60 | $ 0.34 |
Diluted (in dollars per share) | $ 0.43 | $ 0.29 | $ 0.09 | $ 0.14 | $ 0.36 | $ 0.07 | $ 0.13 | $ 0.04 | $ 0.95 | $ 0.60 | $ 0.33 |
Impairment of assets | $ 0.1 | $ 0.7 | $ 0.3 | $ 2.5 | $ 1.8 | $ 0.8 | $ 4.6 | $ 11.5 | |||
Gain on bargain purchase | 9.2 | ||||||||||
Oxford Instruments Superconducting Wire LLC | |||||||||||
Net income per common share attributable to Bruker Corporation shareholders: | |||||||||||
Gain on bargain purchase | $ 9.2 | $ 9.2 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Jan. 24, 2017USD ($) |
Subsequent Event | Hysitron, Inc | |
Subsequent Event | |
Purchase price | $ 28.5 |