Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 02, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-30833 | |
Entity Registrant Name | BRUKER CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3110160 | |
Entity Address, Address Line One | 40 Manning Road | |
Entity Address, City or Town | Billerica | |
Entity Address, Postal Zip Code | 01821 | |
Entity Address, State or Province | MA | |
City Area Code | 978 | |
Local Phone Number | 663-3660 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Trading Symbol | BRKR | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock | |
Entity Common Stock, Shares Outstanding | 151,655,227 | |
Entity Central Index Key | 0001109354 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 573 | $ 681.8 |
Short-term investments | 96.8 | 50 |
Accounts receivable, net | 372.1 | 335.3 |
Inventories | 732.8 | 692.3 |
Assets held for sale | 4.5 | 0 |
Other current assets | 210.1 | 165.6 |
Total current assets | 1,989.3 | 1,925 |
Property, plant and equipment, net | 389.4 | 395.5 |
Goodwill | 324.2 | 320.4 |
Intangible assets, net | 217.7 | 229.1 |
Assets held for sale | 0.4 | 0 |
Other long-term assets | 206.7 | 179 |
Total assets | 3,127.7 | 3,049 |
Current liabilities: | ||
Current portion of long-term debt | 109.5 | 2.2 |
Accounts payable | 141.1 | 134.6 |
Customer advances | 178.3 | 189.2 |
Other current liabilities | 492.3 | 465.9 |
Total current liabilities | 921.2 | 791.9 |
Long-term debt | 717.5 | 842.3 |
Other long-term liabilities | 399.1 | 440.5 |
Commitments and contingencies (Note 14) | ||
Redeemable noncontrolling interest | 0.3 | 0 |
Shareholders' equity: | ||
Preferred stock, $0.01 par value 5,000,000 shares authorized, none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value 260,000,000 shares authorized, 174,835,498 and 174,045,610 shares issued and 151,690,664 and 151,987,081 shares outstanding at September 30, 2021 and December 31, 2020, respectively | 1.7 | 1.7 |
Treasury stock, at cost, 23,144,834 and 22,058,529 shares at September 30, 2021 and December 31, 2020, respectively | (738.1) | (667) |
Accumulated other comprehensive income (loss) | (10.7) | 3.7 |
Other shareholders' equity | 1,822.7 | 1,622.8 |
Total shareholders' equity attributable to Bruker Corporation | 1,075.6 | 961.2 |
Noncontrolling interest in consolidated subsidiaries | 14 | 13.1 |
Total shareholders' equity | 1,089.6 | 974.3 |
Total liabilities, redeemable noncontrolling interest and shareholders' equity | $ 3,127.7 | $ 3,049 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 260,000,000 | 260,000,000 |
Common stock, shares issued | 174,835,498 | 174,045,610 |
Common stock, shares outstanding | 151,690,664 | 151,987,081 |
Treasury stock, shares | 23,144,834 | 22,058,529 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Total revenue | $ 608.9 | $ 511.4 | $ 1,734.4 | $ 1,360 |
Total cost of revenue | 300.2 | 263.1 | 866.4 | 733.2 |
Gross profit | 308.7 | 248.3 | 868 | 626.8 |
Operating expenses: | ||||
Selling, general and administrative | 141.3 | 114.6 | 407.9 | 338.2 |
Research and development | 52.1 | 48.3 | 162.7 | 140.9 |
Other charges, net | 2.1 | 4.2 | 9.5 | 12.2 |
Total operating expenses | 195.5 | 167.1 | 580.1 | 491.3 |
Operating income | 113.2 | 81.2 | 287.9 | 135.5 |
Interest and other income (expense), net | (4.4) | (5.9) | (13.8) | (15.4) |
Income before income taxes and noncontrolling interest in consolidated subsidiaries | 108.8 | 75.3 | 274.1 | 120.1 |
Income tax provision | 20.7 | 20 | 69.5 | 30 |
Consolidated net income | 88.1 | 55.3 | 204.6 | 90.1 |
Net income attributable to noncontrolling interests in consolidated subsidiaries | 1 | 1 | 3.2 | 1.2 |
Net income attributable to Bruker Corporation | $ 87.1 | $ 54.3 | $ 201.4 | $ 88.9 |
Net income per common share attributable to Bruker Corporation shareholders: | ||||
Basic (in dollars per share) | $ 0.58 | $ 0.35 | $ 1.33 | $ 0.58 |
Diluted (in dollars per share) | $ 0.57 | $ 0.35 | $ 1.32 | $ 0.57 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 151.4 | 153.2 | 151.5 | 153.7 |
Diluted (in shares) | 152.8 | 154.3 | 153 | 154.8 |
Comprehensive income | $ 73.1 | $ 64 | $ 188.1 | $ 110.1 |
Less: Comprehensive income attributable to noncontrolling interests | 0.7 | 1.4 | 0.9 | 1.5 |
Less: Comprehensive loss attributable to redeemable noncontrolling interest | 0 | 0 | 0 | (0.5) |
Comprehensive income attributable to Bruker Corporation | 72.4 | 62.6 | 187.2 | 109.1 |
Product | ||||
Total revenue | 508.3 | 419.6 | 1,441.2 | 1,111.6 |
Total cost of revenue | 243.5 | 210.3 | 700.4 | 584.1 |
Service | ||||
Total revenue | 99 | 90 | 287.8 | 244.3 |
Total cost of revenue | 56.5 | 52.6 | 165.3 | 148.4 |
Other | ||||
Total revenue | 1.6 | 1.8 | 5.4 | 4.1 |
Total cost of revenue | $ 0.2 | $ 0.2 | $ 0.7 | $ 0.7 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Total Shareholders' Equity Attributable to Bruker Corporation | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests in Consolidated Subsidiaries | Redeemable Noncontrolling Interest |
Balance at beginning of period at Dec. 31, 2019 | $ 917.1 | $ 906.8 | $ 1.7 | $ (543.8) | $ 199.7 | $ 1,274.7 | $ (25.5) | $ 10.3 | $ 21.1 |
Balance (in shares) at Dec. 31, 2019 | 154,155,798 | 19,346,577 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stock options exercised | 0.7 | 0.7 | 0.7 | ||||||
Stock options exercised (in shares) | 30,182 | ||||||||
RSU vested | (0.1) | (0.1) | (0.1) | ||||||
RSU vested (in shares) | 40,516 | ||||||||
Stock based compensation | 3 | 3 | 3 | ||||||
Dividends declared to common stockholders | (7.4) | (6.2) | (6.2) | (1.2) | |||||
Acquired remaining 20% interest in Hain LifeScience GmbH | (1.3) | (1.3) | (1.3) | (20.6) | |||||
Consolidated net income | 10.6 | 10.5 | 10.5 | 0.1 | |||||
Other comprehensive income (loss) | 2 | 2.2 | 2.2 | (0.2) | (0.5) | ||||
Balance at end of period at Mar. 31, 2020 | 924.6 | 915.6 | $ 1.7 | $ (543.8) | 203.3 | 1,277.7 | (23.3) | 9 | |
Balance (in shares) at Mar. 31, 2020 | 154,226,496 | 19,346,577 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stock options exercised | 1.3 | 1.3 | 1.3 | ||||||
Stock options exercised (in shares) | 61,968 | ||||||||
RSU vested | (0.1) | (0.1) | (0.1) | ||||||
RSU vested (in shares) | 3,510 | ||||||||
Stock based compensation | 2.8 | 2.8 | 2.8 | ||||||
Shares purchased | (50) | (50) | $ (50) | ||||||
Shares purchased (in shares) | (1,214,282) | 1,214,282 | |||||||
Dividends declared to common stockholders | (6.1) | (6.1) | (6.1) | ||||||
Consolidated net income | 24.2 | 24.1 | 24.1 | 0.1 | |||||
Other comprehensive income (loss) | 9.9 | 9.8 | 9.8 | 0.1 | |||||
Balance at end of period at Jun. 30, 2020 | 906.6 | 897.4 | $ 1.7 | $ (593.8) | 207.3 | 1,295.7 | (13.5) | 9.2 | |
Balance (in shares) at Jun. 30, 2020 | 153,077,692 | 20,560,859 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stock options exercised | 0.5 | 0.5 | 0.5 | ||||||
Stock options exercised (in shares) | 25,461 | ||||||||
RSU vested | (1.2) | (1.2) | (1.2) | ||||||
RSU vested (in shares) | 208,652 | ||||||||
Stock based compensation | 4.1 | 4.1 | 4.1 | ||||||
Shares purchased | (5) | (5) | $ (5) | ||||||
Shares purchased (in shares) | (127,278) | 127,278 | |||||||
Dividends declared to common stockholders | (6.3) | (6.3) | (6.3) | ||||||
Consolidated net income | 55.3 | 54.3 | 54.3 | 1 | |||||
Other comprehensive income (loss) | 8.7 | 8.3 | 8.3 | 0.4 | |||||
Balance at end of period at Sep. 30, 2020 | 962.7 | 952.1 | $ 1.7 | $ (598.8) | 210.7 | 1,343.7 | (5.2) | 10.6 | |
Balance (in shares) at Sep. 30, 2020 | 153,184,527 | 20,688,137 | |||||||
Balance at beginning of period at Dec. 31, 2020 | 974.3 | 961.2 | $ 1.7 | $ (667) | 216.3 | 1,406.5 | 3.7 | 13.1 | 0 |
Balance (in shares) at Dec. 31, 2020 | 151,987,081 | 22,058,529 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stock options exercised | 1.2 | 1.2 | 1.2 | ||||||
Stock options exercised (in shares) | 65,312 | ||||||||
RSU vested | (0.1) | (0.1) | (0.1) | ||||||
RSU vested (in shares) | 21,821 | ||||||||
Stock based compensation | 3.4 | 3.4 | 3.4 | ||||||
Shares purchased | (32.8) | (32.8) | $ (32.8) | ||||||
Shares purchased (in shares) | (530,729) | 530,729 | |||||||
Dividends declared to common stockholders | (6.1) | (6.1) | (6.1) | ||||||
Consolidated net income | 57.8 | 56.7 | 56.7 | 1.1 | |||||
Other comprehensive income (loss) | (16) | (15.8) | (15.8) | (0.2) | |||||
Balance at end of period at Mar. 31, 2021 | 981.7 | 967.7 | $ 1.7 | $ (699.8) | 220.8 | 1,457.1 | (12.1) | 14 | |
Balance (in shares) at Mar. 31, 2021 | 151,543,485 | 22,589,258 | |||||||
Balance at beginning of period at Dec. 31, 2020 | $ 974.3 | 961.2 | $ 1.7 | $ (667) | 216.3 | 1,406.5 | 3.7 | 13.1 | 0 |
Balance (in shares) at Dec. 31, 2020 | 151,987,081 | 22,058,529 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stock options exercised (in shares) | 515,692 | ||||||||
Balance at end of period at Sep. 30, 2021 | $ 1,089.6 | 1,075.6 | $ 1.7 | $ (738.1) | 233 | 1,589.7 | (10.7) | 14 | 0.3 |
Balance (in shares) at Sep. 30, 2021 | 151,690,664 | 23,144,834 | |||||||
Balance at beginning of period at Mar. 31, 2021 | 981.7 | 967.7 | $ 1.7 | $ (699.8) | 220.8 | 1,457.1 | (12.1) | 14 | |
Balance (in shares) at Mar. 31, 2021 | 151,543,485 | 22,589,258 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stock options exercised | 1 | 1 | 1 | ||||||
Stock options exercised (in shares) | 64,783 | ||||||||
RSU vested | 0 | 0 | 0 | ||||||
RSU vested (in shares) | 1,780 | ||||||||
Stock based compensation | 3.6 | 3.6 | 3.6 | ||||||
Shares purchased | (38.3) | (38.3) | $ (38.3) | ||||||
Shares purchased (in shares) | (555,576) | 555,576 | |||||||
Dividends declared to common stockholders | (6) | (6) | (6) | ||||||
Formation of Acuity Spatial Genomics Inc. | 0.3 | ||||||||
Consolidated net income | 58.7 | 57.6 | 57.6 | 1.1 | |||||
Other comprehensive income (loss) | 14.7 | 16.4 | 16.4 | (1.7) | |||||
Balance at end of period at Jun. 30, 2021 | 1,015.4 | 1,002 | $ 1.7 | $ (738.1) | 225.4 | 1,508.7 | 4.3 | 13.4 | 0.3 |
Balance (in shares) at Jun. 30, 2021 | 151,054,472 | 23,144,834 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stock options exercised | 8.3 | 8.3 | 8.3 | ||||||
Stock options exercised (in shares) | 385,597 | ||||||||
RSU vested | (4.5) | (4.5) | (4.5) | ||||||
RSU vested (in shares) | 250,595 | ||||||||
Stock based compensation | 3.8 | 3.8 | 3.8 | ||||||
Dividends declared to common stockholders | (6.1) | (6.1) | (6.1) | ||||||
Consolidated net income | 88.1 | 87.1 | 87.1 | 1 | |||||
Other comprehensive income (loss) | (15.4) | (15) | (15) | (0.4) | |||||
Balance at end of period at Sep. 30, 2021 | $ 1,089.6 | $ 1,075.6 | $ 1.7 | $ (738.1) | $ 233 | $ 1,589.7 | $ (10.7) | $ 14 | $ 0.3 |
Balance (in shares) at Sep. 30, 2021 | 151,690,664 | 23,144,834 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Dividends declared (per share) | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 |
Hain | ||||||
Interest acquired | 20.00% |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Consolidated net income | $ 204.6 | $ 90.1 |
Adjustments to reconcile consolidated net income to cash flows from operating activities: | ||
Depreciation and amortization | 66.1 | 58.7 |
Stock-based compensation expense | 11.9 | 10.9 |
Deferred income taxes | (6.5) | 0.5 |
Other non-cash expenses, net | 24.8 | 25.5 |
Changes in operating assets and liabilities, net of acquisitions and divestitures: | ||
Accounts receivable | (47.7) | 36.9 |
Inventories | (81.3) | (109.7) |
Accounts payable and accrued expenses | 45.9 | (15.3) |
Income taxes payable, net | (33.4) | (9.1) |
Deferred revenue | 19.4 | 20.1 |
Customer advances | (9.5) | 32.4 |
Other changes in operating assets and liabilities, net | (50.5) | (11.8) |
Net cash provided by operating activities | 143.8 | 129.2 |
Cash flows from investing activities: | ||
Purchases of short-term investments | (48) | (100) |
Maturities of short-term investments | 0.7 | 56.1 |
Purchases of investments held to maturity | (0.5) | 0 |
Cash paid for acquisitions, net of cash acquired | (45) | (58.8) |
Purchases of property, plant and equipment | (63.6) | (68.4) |
Proceeds from sales of property, plant and equipment | 4 | 0.1 |
Net proceeds from cross-currency swap agreements | 8.6 | 7.1 |
Net cash used in investing activities | (143.8) | (163.9) |
Cash flows from financing activities: | ||
Repayments of revolving lines of credit | 0 | (305.1) |
Proceeds from revolving lines of credit | 297.5 | |
Repayment of other debt | (2.2) | (0.4) |
Proceeds from other debt | 0.4 | 0 |
Payment of deferred financing costs | (0.1) | |
Proceeds from issuance of common stock, net | 5.9 | 1.1 |
Payment of contingent consideration | (0.4) | (6.2) |
Payment of dividends to common stockholders | (18.2) | (18.5) |
Purchases of common stock | (71.1) | (54.4) |
Cash payments to noncontrolling interest | 0 | (1.2) |
Net cash used in financing activities | (85.6) | (87.3) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (23.4) | 10.7 |
Net change in cash, cash equivalents and restricted cash | (109) | (111.3) |
Cash, cash equivalents and restricted cash at beginning of period | 685.5 | 681.9 |
Cash, cash equivalents and restricted cash at end of period | 576.5 | 570.6 |
Supplemental disclosure of cash flow information: | ||
Restricted cash period beginning balance | 3.7 | 3.6 |
Restricted cash period ending balance | $ 3.5 | $ 3.5 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2021 | |
Description of Business | |
Description of Business | 1. Description of Business Bruker Corporation, together with its consolidated subsidiaries (Bruker or the Company), develops, manufactures and distributes high-performance scientific instruments and analytical and diagnostic solutions that enable its customers to explore life and materials at microscopic, molecular and cellular levels. Many of the Company’s products are used to detect, measure and visualize structural characteristics of chemical, biological and industrial material samples. The Company’s products address the rapidly evolving n e The Company has four operating segments, Bruker BioSpin Group, Bruker CALID Group, Bruker Scientific Instruments (BSI) Nano Group Bruker Energy & Supercon Technologies (BEST) BSI Life Science segment, BSI NANO segment and BEST. For financial reporting purposes, the Bruker BioSpin Bruker BioSpin Bruker CALID (Chemicals, Applied Markets, Life Science, In Vitro Diagnostics, Detection) for-profit The BSI NANO segment designs, manufactures and distributes advanced X-ray instruments; atomic force microscopy instrumentation; advanced fluorescence optical microscopy instruments; analytical tools for electron microscopes and X-ray metrology; defect-detection equipment for semiconductor process control; handheld, portable and mobile X-ray fluorescence spectrometry instruments; spark optical emission spectroscopy systems; chip cytometry products and services for targeted spatial proteomics, multi-omic services, and products and services for spatial genomics research. Customers of the BSI NANO segment include academic institutions, governmental customers, nanotechnology companies, semiconductor companies, raw material manufacturers, industrial companies, biotechnology and pharmaceutical companies and other businesses involved in materials research and life science research analysis. The BEST reportable segment develops and manufactures superconducting and non-superconducting The unaudited condensed consolidated financial statements represent the consolidated accounts of the Company. All intercompany accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements as of September 30, 2021 and December 31, 2020, and for the three and nine months ended September 30, 2021 and 2020, have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, the financial information presented herein does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair statement have been included. The results for interim periods are not necessarily indicative of the results expected for any other interim period or the full year. At September 30, 2021, the Company’s significant accounting policies, which are detailed in the Company’s Annual Report on Form 10-K Risks & 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, the impact of the COVID-19 The impact of the COVID-19 Impacts to the Company’s business included temporary closures in 2020 of many of the Company’s government and university customers and suppliers, disruptions or restrictions on employees’ and customers’ ability to travel, and delays in product installations or shipments to and from affected countries. In an effort to halt the outbreak of COVID-19, COVID-19 re-opening re-openings pre-pandemic COVID-19 re-opened pre-pandemic Further, on September 9, 2021, President Biden directed the Department of Labor’s Occupational Safety and Health Administration (“OSHA”) to issue an Emergency Temporary Standard (“ETS”) requiring that all employers with at least 100 employees ensure that their employees are fully vaccinated for COVID-19 COVID-19 COVID-19 COVID-19 The Company has experienced supply chain interruptions as a result of the COVID-19 pandemic. Various factors, including increased demand for certain components and production delays and other natural events and disasters, are contributing to shortages of certain components used in the Company’s products and increased difficulties in the Company’s ability to obtain a consistent supply of materials at stable pricing levels. Supply shortages and longer lead times for components used in the Company’s products, including limited source components, can result in significant additional costs and inefficiencies in manufacturing. A shortage of key components may cause a significant disruption to the Company’s production activities, which could have a substantial adverse effect on the Company’s financial condition or results of operations. If the Company is unsuccessful in resolving any such component shortages in a timely manner, the Company could experience a significant adverse impact on the timing of its revenue, a possible loss of revenue, or an increase in manufacturing costs, any of which would have a material adverse impact on the Company’s operating results. The Company is continuing to monitor and assess the effects of the COVID-19 The preparation of the unaudited condensed consolidated financial statements requires the Company to make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, equity, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis the Company evaluates estimates, judgments and methodologies. Changes in estimates are recorded in the period in which they become known. The Company bases estimates on historical experience and on various other assumptions that they believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities and equity and the amount of revenues and expenses. The full extent to which the COVID-19 COVID-19, COVID-19 COVID-19 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements In March 2020, the FASB issued Accounting Standards Updates (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting 2020-04”), held-to-maturity. 2021-01, In December 2019, the FASB issued ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue | |
Revenue | 3. Revenue The following table presents the Company’s revenues by Group and End Customer Geography (dollars in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenue by Group: Bruker BioSpin $ 186.5 $ 152.1 $ 494.4 $ 398.1 Bruker CALID 194.2 171.3 579.9 444.5 Bruker Nano 174.9 147.1 504.6 392.7 BEST 57.0 43.8 166.0 134.8 Eliminations (3.7 ) (2.9 ) (10.5 ) (10.1 ) Total revenue $ 608.9 $ 511.4 $ 1,734.4 $ 1,360.0 Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenue by End Customer Geography: United States $ 163.2 $ 120.1 $ 442.0 $ 332.1 Germany 55.5 50.4 186.4 134.9 Rest of Europe 155.4 142.9 459.9 357.7 Asia Pacific 191.6 160.0 525.8 433.3 Other 43.2 38.0 120.3 102.0 Total revenue $ 608.9 $ 511.4 $ 1,734.4 $ 1,360.0 Revenue for the Company recognized at a point in time versus over time is as follows (dollars in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenue recognized at a point in time $ 530.8 $ 442.2 $ 1,503.0 $ 1,174.0 Revenue recognized over time 78.1 69.2 231.4 186.0 Total revenue $ 608.9 $ 511.4 $ 1,734.4 $ 1,360.0 Remaining Performance Obligations Remaining performance obligations represent the aggregate transaction price allocated to a promise to transfer a good or service that is fully or partially unsatisfied at the end of the period. As of September 30, 2021, remaining performance obligations were approximately $2,035.9 one Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets) and deferred revenue, customer deposits and billings in excess of revenue recognized (contract liabilities) on the Company’s unaudited condensed consolidated balance sheets. Contract assets— Contract liabilities— COVID-19. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2021 | |
Asset Acquisition [Abstract] | |
Acquisitions | 4. Acquisitions The impact of all acquisitions and investments in other entities during the nine months ended September 30, 2021, individually and collectively, on revenues, net income and total assets was not material and accordingly, pro forma financial information reflecting all acquisitions has not been presented. 2021 SCI Instruments On August 24, 2021, the Company acquired SCI Instruments (“SCI”), a privately held company, for a purchase price of $28.0 million with the potential for additional consideration of up to $4.0 million based on revenue and gross margin achievements in the calendar years 2022 and 2023. SCI is a manufacturer of advanced metrology systems and analysis software and serves major companies in the semiconductor, optoelectronics, data storage, display, MEMS, and optical coating industries. SCI will be integrated into the BSI Nano segment Consideration Transferred: Cash paid $ 28.0 Fair value of contingent consideration 1.0 Working capital adjustment (1.0 ) Total consideration transferred $ 28.0 Allocation of Consideration Transferred: Inventories $ 1.0 Other current and non-current 1.0 Intangible assets: Technology 7.1 Customer relationships 6.4 Trade name 0.4 Backlog 1.2 Goodwill 12.6 Liabilities assumed (1.7 ) Total consideration allocated $ 28.0 The preliminary fair value allocation included contingent consideration in the amount of $1.0 million, which represented the estimated fair value of future payments to the former shareholders of SCI based on achieving revenue and gross margin targets for the calendar years 2022 and 2023. The Company expects to complete the fair value allocation during the measurement period. The amortization period for the intangible assets acquired is ten years for the trade name and technology, and nine years for the customer relationships. The backlog intangible asset is expected to be fully amortized by December 31, 2021. In addition to the SCI acquisition, in 2021 the Company completed acquisitions that complemented the Company’s existing product offerings. The following table reflects the consideration transferred and the respective reportable segment for the acquisitions (in millions): Name of Acquisition Date Acquired Segment Total Cash Creative Instruments July 1, 2021 BSI Life Science $ 1.0 $ 1.0 SVXR, Inc. September 9, 2021 BSI Nano 14.0 11.9 $ 15.0 $ 12.9 In addition to the acquisitions noted above, in the nine months ended September 30, 2021, the Company made investments in businesses complementary to its own portfolio. The following table reflects the consideration transferred and the respective reporting segment for these investments (in millions): Name Acquisition / Date Acquired Segment Consideration Cash Glycopath Inc. Investment February 18, 2021 BSI Life Science $ 2.0 $ 2.0 IonPath Inc. Investment March 18, 2021 BSI Life Science 2.0 2.0 Olaris, Inc. Investment September 23, 2021 BSI Life Science 0.5 0.5 $ 4.5 $ 4.5 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2021 | |
Inventories | |
Inventories | 5. Inventories Inventories consisted of the following (dollars in millions): September 30, December 31, Raw materials $ 209.9 $ 198.8 Work-in-process 272.5 245.7 Finished goods 155.9 152.1 Demonstration units 94.5 95.7 Inventories $ 732.8 $ 692.3 Finished goods include in-transit inventory-in-transit |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Goodwill The following table sets forth the changes in the carrying amount of goodwill (dollars in millions): Total Balance at December 31, 2020 $ 320.4 Current period additions/adjustments 12.7 Foreign currency impact (8.9 ) Balance at September 30, 2021 $ 324.2 Intangible Assets The following is a summary of intangible assets, excluding goodwill (dollars in millions): September 30, 2021 December 31, 2020 Gross Accumulated Net Carrying Gross Accumulated Net Carrying Existing technology and related patents $ 308.4 $ (202.1 ) $ 106.3 $ 309.8 $ (194.6 ) $ 115.2 Customer relationships 155.1 (54.6 ) 100.5 148.3 (45.4 ) 102.9 Trade names 15.1 (5.4 ) 9.7 15.2 (4.4 ) 10.8 Other 1.8 (0.6 ) 1.2 0.3 (0.1 ) 0.2 Intangible assets $ 480.4 $ (262.7 ) $ 217.7 $ 473.6 $ (244.5 ) $ 229.1 For the three months ended September 30, 2021 and 2020, the Company recorded amortization expense of $9.3 million and $9.0 million, respectively, related to intangible assets subject to amortization. For the nine months ended September 30, 2021 and 2020, the Company recorded amortization expense of $27.3 million and $26.7 million, respectively, related to intangible assets subject to amortization. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt | |
Debt | 7. Debt The Company’s debt obligations consisted of the following (dollars in millions): September 30, December 31, US Dollar notes under the 2012 Note Purchase Agreement $ 205.0 $ 205.0 CHF notes (in dollars) under the 2019 Note Purchase Agreement 318.1 335.5 US Dollar notes under the 2019 Term Loan 300.0 300.0 Unamortized debt issuance costs (2.1 ) (2.4 ) Finance lease obligations and other loans 6.0 6.4 Total debt 827.0 844.5 Current portion of long-term debt (109.5 ) (2.2 ) Total long-term debt, less current portion $ 717.5 $ 842.3 The following is a summary of the maximum commitments and the net amounts available to the Company under its credit agreements 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 September 30, 2021 (in millions): Weighted Total Amount Outstanding Outstanding Total 2019 Credit Agreement 1.3 % $ 600.0 $ — $ 0.1 $ 599.9 Bank guarantees and working capital line varies 115.2 — 115.2 — Total revolving lines of credit $ 715.2 $ — $ 115.3 $ 599.9 As of September 30, 2021, the Company was in compliance with the financial covenants of all debt agreements. As of September 30, 2021, the Company had several cross-currency and interest rate swap agreements with a notional value of $150.0 million of U.S. to Swiss Franc and a notional value of $355.0 million of U.S. to Euro to hedge the variability in the movement of foreign currency exchange rates on portions of our Euro and Swiss Franc denominated net asset investments. These agreements qualify for hedge accounting and accordingly the changes in fair value of the derivative are recorded in other comprehensive income as part of foreign currency translation adjustments and remain in accumulated comprehensive income (loss) attributable to Bruker Corporation in shareholders’ equity until the sale or substantial liquidation of the foreign operation. The difference between the interest rate received and paid under the interest rate and cross-currency swap agreements is recorded in interest and other income (expenses) in the consolidated statements of income and comprehensive income. As a result of entering into these agreements, the Company lowered net interest expense by $1.4 million during each of |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 8. Fair Value of Financial The following tables set forth the Company’s financial instruments measured at fair value on a recurring basis and present them within the fair value hierarchy using the lowest level of input that is significant to the fair value measurement (dollars in millions): September 30, 2021 Total Quoted Prices Significant Significant Assets: Time deposits and money market funds $ 12.4 $ — $ 12.4 $ — Short-term investments 96.8 — 96.8 — Interest rate and cross currency swap agreements 7.1 — 7.1 — Fixed price commodity contracts 0.8 — 0.8 — Debt securities available for sale 1.2 — — 1.2 Total assets recorded at fair value $ 118.3 $ — $ 117.1 $ 1.2 Liabilities: Contingent consideration $ 5.6 $ — $ — $ 5.6 Hybrid instrument liability 14.3 — — 14.3 Interest rate and cross currency swap agreements 29.0 — 29.0 — Embedded derivatives in purchase and delivery contracts 0.1 — 0.1 — Forward currency contracts 0.7 — 0.7 — Long-term fixed interest rate debt 535.1 — 535.1 — Total liabilities recorded at fair value $ 584.8 $ — $ 564.9 $ 19.9 December 31, 2020 Total Quoted Prices Significant Significant Assets: Time deposits and money market funds $ 183.2 $ — $ 183.2 $ — Short-term investments 50.0 — 50.0 — Interest rate and cross currency swap agreements 7.6 — 7.6 — Forward currency contracts 2.1 — 2.1 — Embedded derivatives in purchase and delivery contracts 0.1 — 0.1 — Fixed price commodity contracts 3.1 — 3.1 — Debt securities available for sale 1.2 — — 1.2 Total assets recorded at fair value $ 247.3 $ — $ 246.1 $ 1.2 Liabilities: Contingent consideration $ 4.3 $ — $ — $ 4.3 Hybrid instrument liability 13.9 — — 13.9 Interest rate and cross currency swap agreements 61.5 — 61.5 — Forward currency contracts 0.4 — 0.4 — Long-term fixed interest rate debt 549.8 — 549.8 — Total liabilities recorded at fair value $ 629.9 $ — $ 611.7 $ 18.2 The Company’s financial instruments consist primarily of cash equivalents, short-term investments, restricted cash, derivative instruments consisting of forward foreign exchange contracts, cross-currency interest rate swap agreements, commodity contracts, derivatives embedded in certain purchase and sale contracts, derivatives embedded within noncontrolling interests, accounts receivable, 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 because of 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 note purchase agreement entered into in 2012 and a revolving credit agreement, long term loan agreement and note purchase agreement entered into in 2019. 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. The Company measures certain assets and liabilities at fair value with changes in fair value recognized in earnings. Fair value treatment may be elected either upon initial recognition of an eligible asset or liability or, for an existing asset or liability, if an event triggers a new basis of accounting. The Company did not elect to remeasure any of its existing financial assets or liabilities and did not elect the fair value option for any financial assets or liabilities which originated during the nine months ended September 30, 2021 or 2020. The fair value of the long-term fixed interest rate debt, which has been classified as Level 2 was based on market and observable sources with similar maturity dates. The carrying value of our variable rate debt approximates its fair value at September 30, 2021 and December 31, 2020. 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 nine months ended September 30, 2021 or 2020. Contingent consideration recorded within other current liabilities represents the estimated fair value of future payments to the former shareholders as part of certain acquisitions. The contingent consideration is primarily based on the applicable acquired company achieving annual revenue and gross margin targets in certain years as specified in the relevant purchase and sale agreement. The Company initially values the contingent consideration on the acquisition date by using a Monte Carlo simulation or an income approach method. The Monte Carlo method models future revenue and costs of goods sold projections and discounts the average results to present value. The income approach method involves calculating the earnout payment based on the forecasted cash flows, adjusting the future earnout payment for the risk of reaching the projected financials, and then discounting the future payments to present value by the counterparty risk. The counterparty risk considers the risk of the buyer having the cash to make the earnout payments and is commensurate with a cost of debt over an appropriate term. The following table sets forth the changes in contingent consideration liabilities (dollars in millions): Balance at December 31, 2020 $ 4.3 Current period additions 1.9 Current period adjustments (0.1 ) Current period settlements (0.4 ) Foreign currency effect (0.1 ) Balance at September 30, 2021 $ 5.6 As part of the Mestrelab Research, S.L. (“Mestrelab”) acquisition, the Company entered into an agreement with the noncontrolling interest holders that provides the Company with the right to purchase, and the noncontrolling interest holders with the right to sell, the remaining 49% of Mestrelab for cash at a contractually defined redemption value. These rights (an embedded derivative) are exercisable beginning in 2022 and can be accelerated, at a discounted redemption value, upon certain events related to post combination services. As the option is tied to continued employment, the Company classified the hybrid instrument (noncontrolling interest with an embedded derivative) as a long-term liability on the consolidated balance sheet. Subsequent to the acquisition, the carrying value of the hybrid instrument is remeasured to fair value with changes recorded to stock-based compensation expense in proportion to the requisite service period vested. The hybrid instrument is classified as Level 3 in the fair value hierarchy. The following table sets forth the changes in hybrid instrument liability (dollars in millions): Balance at December 31, 2020 $ 13.9 Current period adjustments 1.1 Foreign currency effect (0.7 ) Balance at September 30, 2021 $ 14.3 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | 9. Derivative Instruments and Hedging Activities Commodity Price Risk Management At September 30, 2021 and December 31, 2020, the Company had fixed price commodity contracts with notional amounts aggregating $4.5 million and $8.8 million, respectively. As commodity contracts settle, gains (losses) as a Foreign Exchange Rate Risk The Company had notional amounts outstanding under forward currency contracts and cross-currency interest rate swap agreements as of (dollars in millions): September 30, 2021 December 31, 2020 Notional Fair Value Notional Fair Value Forward currency contracts (1): Assets $ 10.4 $ — $ 175.8 $ 2.1 Liabilities 114.1 (0.7 ) 102.5 (0.4 ) Cross-currency and interest rate swap agreements (2): Liabilities 505.0 (21.9 ) 505.0 (53.9 ) Long-term debt Liabilities 318.1 (20.2 ) 335.5 (37.6 ) Total $ 947.6 $ (42.8 ) $ 1,118.8 $ (89.8 ) (1) Derivatives not designated as accounting hedges. (2) Derivatives designated as accounting hedges. 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 $6.0 million for the delivery of products and $7.0 million for the purchase of products at September 30, 2021 and $7.5 million for the delivery of products and $4.8 million for the purchase of products at December 31, 2020. The changes in the fair value of these embedded derivatives are recorded in interest and other income (expense), net in the consolidated statements of income and comprehensive income. The derivative instruments described above are recorded in the unaudited condensed consolidated balance sheets for the periods ended as follows (dollars in millions): September 30, 2021 December 31, 2020 Derivatives designated as hedging instruments Interest rate cross-currency swap agreements Other current assets $ 7.1 $ 7.6 Other current liabilities (8.5 ) (4.3 ) Other long-term liabilities (20.5 ) (57.2 ) (21.9 ) (53.9 ) Long-term debt Long-term debt (20.2 ) (37.6 ) Total derivatives designated as hedging instruments $ (42.1 ) $ (91.5 ) Derivatives not designated as hedging instruments Forward currency contracts Other current assets $ — $ 2.1 Other current liabilities (0.7 ) (0.4 ) Embedded derivatives in purchase and delivery contracts Other current assets — 0.1 Other current liabilities (0.1 ) — Fixed price commodity contracts Other current assets 0.8 3.1 Total derivatives not designated as hedging instruments — 4.9 Total derivatives $ (42.1 ) $ (86.6 ) The following is a summary of the activity included in the unaudited condensed consolidated statements of income and comprehensive income related to the derivative instruments described above (in millions): Location of gain (loss) recognized in income on derivative Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Derivatives not designated as hedging instruments Forward currency contracts Interest and other income (expense), net $ (0.9 ) $ (0.2 ) $ (4.8 ) $ (0.4 ) Embedded Interest and other income (expense), net 0.1 (0.1 ) (0.3 ) 0.8 (0.8 ) (0.3 ) (5.1 ) 0.4 Derivatives designated as cash flow hedging instruments Interest rate cross-currency swap agreements Interest and other income (expense), net $ (1.2 ) $ (1.1 ) $ (3.5 ) $ (1.9 ) Derivatives designated as net investment hedging instruments Interest rate cross-currency swap agreements Interest and other income (expense), net 2.6 2.5 7.6 7.7 1.4 1.4 4.1 5.8 Total $ 0.6 $ 1.1 $ (1.0 ) $ 6.2 Amount of unrealized gain (loss) on contracts recognized other comprehensive income (loss) Three Months Ended September 30, Nine Months Ended September 30, Financial Statement Classification 2021 2020 2021 2020 Derivatives designated as cash flow hedging instruments Interest rate cross-currency Accumulated other comprehensive income, net of tax $ 0.9 $ (0.2 ) $ 11.5 $ (22.1 ) $ 0.9 $ (0.2 ) $ 11.5 $ (22.1 ) Derivatives designated as net investment hedging instruments Interest rate cross-currency swap agreements Accumulated other comprehensive income, net of tax $ 7.4 $ (21.9 ) $ 25.6 $ (0.3 ) Long-term debt Accumulated other comprehensive income, net of tax 2.2 (8.2 ) 22.2 (15.3 ) $ 9.6 $ (30.1 ) $ 47.8 $ (15.6 ) Total $ 10.5 $ (30.3 ) $ 59.3 $ (37.7 ) |
Provision for Income Taxes
Provision for Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Taxes | |
Provision for Income Taxes | 10. Provision for Income Taxes The Company accounts for income taxes using the asset and liability approach by recognizing deferred tax assets and liabilities for the expected future tax consequences of differences between the financial statement basis and the tax basis of assets and liabilities, calculated using enacted tax rates in effect for the year in which the differences The income tax provision for the three months ended September 30, 2021 and 2020 was $20.7 million and $20.0 million, respectively, representing effective tax rates of 19.0% and 26.6%, respectively. The decrease in our effective tax rate was primarily due to the jurisdictional profit mix and the impact of favorable discrete items in the period. The increase in the Company’s effective tax rate was primarily due to the increase in profit before income tax and the jurisdictional profit mix, partially offset by the impact of discrete items in the period. As of September 30, 2021 and December 31, 2020, the Company had gross unrecognized tax benefits, excluding penalties and interest, of approximately $34.8 million and $22.7 million, respectively, which, if recognized, would result in a reduction of the Company’s effective tax rate. The Company recognizes penalties and interest related to unrecognized tax benefits in the provision for income taxes. As of September 30, 2021 and December 31, 2020, approximately $2.3 million and $1.8 million, respectively, of accrued interest and penalties related to uncertain tax positions was included in other long-term liabilities on the Company’s unaudited condensed consolidated balance sheets. Penalties and interest of $0.2 million and $0.1 million were recorded in the provision for income taxes for unrecognized tax benefits during both the three months ended September 30, 2021 and 2020. Penalties and interest of $0.6 million and $0.4 million was recorded in the provision for income taxes for unrecognized tax benefits during the nine months ended September 30, 2021 and 2020, respectively. The Company files tax returns in the United States, which includes federal, state and local jurisdictions, and many foreign jurisdictions with varying statutes of limitations. The Company considers Germany, the United States and Switzerland to be its significant tax jurisdictions. The majority of the Company’s earnings are derived in Germany and Switzerland. Accounting for the various federal and local taxing authorities, the statutory rates for 2021 are approximately 30.0% and 20.0% for Germany and Switzerland, respectively. The mix of earnings in those two jurisdictions resulted in an increase of 5.5% from the U.S. statutory rate of 21.0% in the nine months ended September 30, 2021. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share | |
Earnings Per Share | 11. Earnings Per Share The following table sets forth the computation of basic and diluted weighted average shares outstanding and net income per common share attributable to Bruker shareholders (dollars in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net income attributable to Bruker Corporation, as reported $ 87.1 $ 54.3 $ 201.4 $ 88.9 Weighted average shares outstanding: Weighted average shares outstanding-basic 151.4 153.2 151.5 153.7 Effect of dilutive securities: Stock options and restricted stock awards and units 1.4 1.1 1.5 1.1 152.8 154.3 153.0 154.8 Net income per common share attributable to Bruker Corporation shareholders: Basic $ 0.58 $ 0.35 $ 1.33 $ 0.58 Diluted $ 0.57 $ 0.35 $ 1.32 $ 0.57 The following common share equivalents have been excluded from the computation of diluted weighted-average shares outstanding, as their effect would have been anti-dilutive (amounts in millions of shares): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Stock options — 0.3 — 0.1 Unvested restricted stock units — 0.2 — 0.1 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Shareholders' Equity | |
Shareholders' Equity | 12. Shareholders’ Equity Share Repurchase Program In May 2019, the Company’s Board of Directors approved a stock repurchase plan (the “2019 Repurchase Program”) authorizing the purchase of common stock in the amount of up to $300.0 million from time to time, in amounts, at prices, and at such times as management deems appropriate, subject to market conditions, legal requirements and other considerations. During the nine months ended September 30, 2021, the Company repurchased a total of 555,602 shares at an aggregate cost of $34.5 million under the 2019 Repurchase Program. We completed the 2019 Repurchase Program in April 2021, after reaching the maximum cumulative spend. In May 2021, the Company’s Board of Directors approved a stock repurchase plan (the “2021 Repurchase Program”) authorizing the purchase of common stock in the amount of up to $500.0 million from time to time over a two Accumulated Other Comprehensive Income (Loss) The following is a summary of comprehensive income (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Consolidated net income $ 88.1 $ 55.3 $ 204.6 $ 90.1 Foreign currency translation adjustments (26.6 ) 38.9 (80.2 ) 42.8 Derivatives designated as hedging instruments, net of tax 10.5 (30.3 ) 59.3 (37.7 ) Pension liability adjustments, net of tax 1.1 0.1 4.4 14.9 Net comprehensive income 73.1 64.0 188.1 110.1 Less: Comprehensive income attributable to noncontrolling interests 0.7 1.4 0.9 1.5 Less: Comprehensive loss attributable to redeemable noncontrolling interest — — — (0.5 ) Comprehensive income attributable to Bruker Corporation $ 72.4 $ 62.6 $ 187.2 $ 109.1 The following is a summary of the components of Foreign Derivatives Pension Accumulated Balance at December 31, 2020 $ 140.9 $ (91.5 ) $ (45.7 ) $ 3.7 Other comprehensive (loss) income before reclassifications, net of tax (78.1 ) 59.3 2.2 (16.6 ) Realized loss on amounts reclassified from other comprehensive income, net of tax — — 2.2 2.2 Net current period other comprehensive (loss) income (78.1 ) 59.3 4.4 (14.4 ) Balance at September 30, 2021 $ 62.8 $ (32.2 ) $ (41.3 ) $ (10.7 ) Stock-Based Compensation The Company recorded stock-based compensation expense as follows in the unaudited condensed consolidated statements of income and comprehensive income (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Costs of product revenue $ 0.6 $ 0.6 $ 1.6 $ 1.5 Selling, general and administrative 2.6 2.9 7.6 6.9 Research and development 0.6 0.6 1.6 1.5 Total stock-based compensation $ 3.8 $ 4.1 $ 10.8 $ 9.9 In addition to the awards above, the Company recorded stock-based compensation expense within other charges, net of $0.3 million in the three months ended September 30, 2021 and 2020, and $1.1 million and $1.0 million in the nine months ended September 30, 2021 and 2020, respectively, related to the 2018 acquisition of Mestrelab. At September 30, 2021, the Company expects to recognize pre-tax Company pre-tax Company’s 2016 Incentive Compensation Stock options to purchase the Company’s common stock are periodically awarded to executive officers and other employees of the Company subject to a vesting period of three to four 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 life, dividend yield and risk-free interest rates are required for the Black-Scholes model and are presented in the table below: Nine months ended September 30, 2021 2020 Risk-free interest rates 0.62 % 0.23 % Expected life 4.43 years 5.14 years Volatility 34 % 34 % Expected dividend yield 0.20 % 0.37 % Stock option activity was as follows: Shares Subject Weighted Weighted Aggregate Outstanding at December 31, 2020 1,856,176 $ 25.32 Granted 79,632 $ 85.10 Exercised (515,692 ) $ 20.40 Forfeited/Expired — $ — Outstanding at September 30, 2021 1,420,116 $ 30.45 4.3 $ 68.2 Exercisable at September 30, 2021 1,158,452 $ 24.66 3.8 $ 61.9 Exercisable and expected to vest at September 30, 2021 (a) 1,384,099 $ 29.68 4.2 $ 67.5 (a) Represents the number of vested options at September 30, 2021, plus the number of unvested options at September 30, 2021 that are ultimately expected to vest based on our estimated forfeiture rate. (b) The aggregate intrinsic value is based on the positive difference between the exercise price of the underlying options and the quoted price of our common stock on September 30, 2021. The total intrinsic value of options exercised was $31.8 million and $2.2 million for the nine months ended September 30, 2021 and 2020, respectively. Restricted stock unit activity was as follows: Shares Subject Weighted Outstanding at December 31, 2020 805,052 $ 39.63 Granted 216,692 $ 78.01 Vested (329,840 ) $ 37.07 Forfeited (19,043 ) $ 43.52 Outstanding at September 30, 2021 672,861 $ 53.14 The total fair value of restricted stock units vested was $26.6 million and $12.8 million for the nine months ended September 30, 2021 and 2020, respectively. |
Other Charges, Net
Other Charges, Net | 9 Months Ended |
Sep. 30, 2021 | |
Other Charges (Gain), Net | |
Other Charges, Net | 13. Other Charges, Net The components of other charges, net were as Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Information technology transformation costs $ 1.1 $ 0.5 $ 2.6 $ 1.8 Professional fees incurred in connection with investigation matters 0.1 0.3 0.1 4.8 Restructuring charges 0.9 1.7 3.6 4.4 Acquisition-related charges 0.6 0.9 3.8 (1.0 ) Long-lived asset impairments (0.6 ) 0.7 (0.6 ) 1.9 Other — 0.1 — 0.3 Other charges, net $ 2.1 $ 4.2 $ 9.5 $ 12.2 Restructuring Initiatives Restructuring charges Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of revenues $ 0.2 $ 0.2 $ 1.5 $ 1.3 Other charges, net 0.9 1.7 3.6 4.4 $ 1.6 $ 1.9 $ 5.1 $ 5.7 The following table sets forth the changes in restructuring reserves (dollars in millions): Total Severance Exit Costs Provisions Balance at December 31, 2020 $ 9.8 $ 7.6 $ 0.8 $ 1.4 Restructuring charges 5.1 4.1 1.0 — Cash payments (9.7 ) (9.0 ) (0.7 ) — Other, non-cash (0.8 ) — (0.7 ) (0.1 ) Balance at September 30, 2021 $ 4.4 $ 2.7 $ 0.4 $ 1.3 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies | |
Commitments and Contingencies | 14. Commitments and Contingencies In accordance with ASC Topic 450, Contingencies, the Company accrues anticipated costs of settlement, damages or other costs to the extent specific losses are probable and estimable. Litigation and Related Contingencies Lawsuits, claims and proceedings of a nature considered normal to its businesses may be pending from time to time against the Company. Third parties might allege that the Company or its collaborators are infringing their patent rights or that the Company is otherwise violating their intellectual property rights. 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 is also 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. On September 25, 2019, in a complaint filed in the Düsseldorf, Germany, District Court, Carl Zeiss Microscopy GmbH, a subsidiary of Carl Zeiss AG (Zeiss), sued Luxendo GmbH (Luxendo), a subsidiary of Bruker Corporation, for infringement of a recently registered German utility model patent licensed to Zeiss pertaining to one specific Luxendo product category. The Company is vigorously defending against this claim. As of September 30, 2021 and December 31, 2020, no material accruals have been recorded for potential contingencies. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Business Segment Information | |
Business Segment Information | 15. Business Segment Information The Company has three reportable segments, BSI Life Science, BSI NANO and BEST, as discussed in Note 1 to the unaudited condensed consolidated financial statements. Revenue and operating income by reportable segment are presented below (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenue: BSI Life Science $ 380.7 $ 323.4 $ 1,074.3 $ 842.6 BSI NANO 174.9 147.1 504.6 392.7 BEST 57.0 43.8 166.0 134.8 Eliminations (a) (3.7 ) (2.9 ) (10.5 ) (10.1 ) Total revenue $ 608.9 $ 511.4 $ 1,734.4 $ 1,360.0 Operating Income (loss) BSI Life Science $ 100.9 $ 80.6 $ 263.4 $ 158.7 BSI NANO 21.8 12.2 55.1 9.3 BEST 7.4 1.2 18.3 5.1 Corporate, eliminations and other (b) (16.9 ) (12.8 ) (48.9 ) (37.6 ) Total operating income $ 113.2 $ 81.2 $ 287.9 $ 135.5 (a) Represents product and service revenue between reportable segments. (b) Represents corporate costs and eliminations not allocated to the reportable segments. Total assets by reportable segment are as follows (dollars in millions): September 30, December 31, Assets: BSI Life Science, BSI NANO & Corporate $ 3,038.8 $ 2,964.5 BEST 95.1 88.7 Eliminations and other (a) (6.2 ) (4.2 ) Total assets $ 3,127.7 $ 3,049.0 (a) Assets not allocated to the reportable segments and eliminations of intercompany transactions. The Company is unable, without unreasonable effort or expense to disclose the amount of total assets by BSI Life Science and BSI NANO segments as well as the Corporate function and further, the Company’s chief operating decision maker does not receive any asset information by operating segment. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue | |
Schedule of revenues disaggregated by Group, end customer geographical location and timing of recognition | The following table presents the Company’s revenues by Group and End Customer Geography (dollars in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenue by Group: Bruker BioSpin $ 186.5 $ 152.1 $ 494.4 $ 398.1 Bruker CALID 194.2 171.3 579.9 444.5 Bruker Nano 174.9 147.1 504.6 392.7 BEST 57.0 43.8 166.0 134.8 Eliminations (3.7 ) (2.9 ) (10.5 ) (10.1 ) Total revenue $ 608.9 $ 511.4 $ 1,734.4 $ 1,360.0 Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenue by End Customer Geography: United States $ 163.2 $ 120.1 $ 442.0 $ 332.1 Germany 55.5 50.4 186.4 134.9 Rest of Europe 155.4 142.9 459.9 357.7 Asia Pacific 191.6 160.0 525.8 433.3 Other 43.2 38.0 120.3 102.0 Total revenue $ 608.9 $ 511.4 $ 1,734.4 $ 1,360.0 Revenue for the Company recognized at a point in time versus over time is as follows (dollars in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenue recognized at a point in time $ 530.8 $ 442.2 $ 1,503.0 $ 1,174.0 Revenue recognized over time 78.1 69.2 231.4 186.0 Total revenue $ 608.9 $ 511.4 $ 1,734.4 $ 1,360.0 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
2021 Acquisitions | |
Acquisitions | |
Schedule of components and fair value allocation of the consideration transferred in connection with acquisitions | The following table reflects the consideration transferred and the respective reportable segment for the acquisitions (in millions): Name of Acquisition Date Acquired Segment Total Cash Creative Instruments July 1, 2021 BSI Life Science $ 1.0 $ 1.0 SVXR, Inc. September 9, 2021 BSI Nano 14.0 11.9 $ 15.0 $ 12.9 Name Acquisition / Date Acquired Segment Consideration Cash Glycopath Inc. Investment February 18, 2021 BSI Life Science $ 2.0 $ 2.0 IonPath Inc. Investment March 18, 2021 BSI Life Science 2.0 2.0 Olaris, Inc. Investment September 23, 2021 BSI Life Science 0.5 0.5 $ 4.5 $ 4.5 |
SCI Instruments | |
Acquisitions | |
Schedule of consideration transferred and the respective reporting segment for each acquisition | The acquisition is being accounted for under the acquisition method. The components and fair value allocation of the consideration transferred in connection with the acquisition are as follows (dollars in millions): Consideration Transferred: Cash paid $ 28.0 Fair value of contingent consideration 1.0 Working capital adjustment (1.0 ) Total consideration transferred $ 28.0 Allocation of Consideration Transferred: Inventories $ 1.0 Other current and non-current 1.0 Intangible assets: Technology 7.1 Customer relationships 6.4 Trade name 0.4 Backlog 1.2 Goodwill 12.6 Liabilities assumed (1.7 ) Total consideration allocated $ 28.0 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventories | |
Schedule of inventories | Inventories consisted of the following (dollars in millions): September 30, December 31, Raw materials $ 209.9 $ 198.8 Work-in-process 272.5 245.7 Finished goods 155.9 152.1 Demonstration units 94.5 95.7 Inventories $ 732.8 $ 692.3 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 (dollars in millions): Total Balance at December 31, 2020 $ 320.4 Current period additions/adjustments 12.7 Foreign currency impact (8.9 ) Balance at September 30, 2021 $ 324.2 |
Summary of intangible assets | The following is a summary of intangible assets, excluding goodwill (dollars in millions): September 30, 2021 December 31, 2020 Gross Accumulated Net Carrying Gross Accumulated Net Carrying Existing technology and related patents $ 308.4 $ (202.1 ) $ 106.3 $ 309.8 $ (194.6 ) $ 115.2 Customer relationships 155.1 (54.6 ) 100.5 148.3 (45.4 ) 102.9 Trade names 15.1 (5.4 ) 9.7 15.2 (4.4 ) 10.8 Other 1.8 (0.6 ) 1.2 0.3 (0.1 ) 0.2 Intangible assets $ 480.4 $ (262.7 ) $ 217.7 $ 473.6 $ (244.5 ) $ 229.1 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt | |
Components of debt obligations | The Company’s debt obligations consisted of the following (dollars in millions): September 30, December 31, US Dollar notes under the 2012 Note Purchase Agreement $ 205.0 $ 205.0 CHF notes (in dollars) under the 2019 Note Purchase Agreement 318.1 335.5 US Dollar notes under the 2019 Term Loan 300.0 300.0 Unamortized debt issuance costs (2.1 ) (2.4 ) Finance lease obligations and other loans 6.0 6.4 Total debt 827.0 844.5 Current portion of long-term debt (109.5 ) (2.2 ) Total long-term debt, less current portion $ 717.5 $ 842.3 |
Summary of maximum commitments and net amounts available under the 2019 Credit Agreement and other lines of credit | The following is a summary of the maximum commitments and the net amounts available to the Company under its credit agreements 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 September 30, 2021 (in millions): Weighted Total Amount Outstanding Outstanding Total 2019 Credit Agreement 1.3 % $ 600.0 $ — $ 0.1 $ 599.9 Bank guarantees and working capital line varies 115.2 — 115.2 — Total revolving lines of credit $ 715.2 $ — $ 115.3 $ 599.9 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value of Financial Instruments | |
Schedule of financial instruments measured at fair value on a recurring basis | The following tables set forth the Company’s financial instruments measured at fair value on a recurring basis and present them within the fair value hierarchy using the lowest level of input that is significant to the fair value measurement (dollars in millions): September 30, 2021 Total Quoted Prices Significant Significant Assets: Time deposits and money market funds $ 12.4 $ — $ 12.4 $ — Short-term investments 96.8 — 96.8 — Interest rate and cross currency swap agreements 7.1 — 7.1 — Fixed price commodity contracts 0.8 — 0.8 — Debt securities available for sale 1.2 — — 1.2 Total assets recorded at fair value $ 118.3 $ — $ 117.1 $ 1.2 Liabilities: Contingent consideration $ 5.6 $ — $ — $ 5.6 Hybrid instrument liability 14.3 — — 14.3 Interest rate and cross currency swap agreements 29.0 — 29.0 — Embedded derivatives in purchase and delivery contracts 0.1 — 0.1 — Forward currency contracts 0.7 — 0.7 — Long-term fixed interest rate debt 535.1 — 535.1 — Total liabilities recorded at fair value $ 584.8 $ — $ 564.9 $ 19.9 December 31, 2020 Total Quoted Prices Significant Significant Assets: Time deposits and money market funds $ 183.2 $ — $ 183.2 $ — Short-term investments 50.0 — 50.0 — Interest rate and cross currency swap agreements 7.6 — 7.6 — Forward currency contracts 2.1 — 2.1 — Embedded derivatives in purchase and delivery contracts 0.1 — 0.1 — Fixed price commodity contracts 3.1 — 3.1 — Debt securities available for sale 1.2 — — 1.2 Total assets recorded at fair value $ 247.3 $ — $ 246.1 $ 1.2 Liabilities: Contingent consideration $ 4.3 $ — $ — $ 4.3 Hybrid instrument liability 13.9 — — 13.9 Interest rate and cross currency swap agreements 61.5 — 61.5 — Forward currency contracts 0.4 — 0.4 — Long-term fixed interest rate debt 549.8 — 549.8 — Total liabilities recorded at fair value $ 629.9 $ — $ 611.7 $ 18.2 |
Schedule of changes in contingent consideration liabilities | The following table sets forth the changes in contingent consideration liabilities (dollars in millions): Balance at December 31, 2020 $ 4.3 Current period additions 1.9 Current period adjustments (0.1 ) Current period settlements (0.4 ) Foreign currency effect (0.1 ) Balance at September 30, 2021 $ 5.6 |
Schedule of changes in hybrid instrument liability | The following table sets forth the changes in hybrid instrument liability (dollars in millions): Balance at December 31, 2020 $ 13.9 Current period adjustments 1.1 Foreign currency effect (0.7 ) Balance at September 30, 2021 $ 14.3 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities | |
Schedule of notional amounts outstanding under foreign currency contracts | The Company had notional amounts outstanding under forward currency contracts and cross-currency interest rate swap agreements as of (dollars in millions): September 30, 2021 December 31, 2020 Notional Fair Value Notional Fair Value Forward currency contracts (1): Assets $ 10.4 $ — $ 175.8 $ 2.1 Liabilities 114.1 (0.7 ) 102.5 (0.4 ) Cross-currency and interest rate swap agreements (2): Liabilities 505.0 (21.9 ) 505.0 (53.9 ) Long-term debt Liabilities 318.1 (20.2 ) 335.5 (37.6 ) Total $ 947.6 $ (42.8 ) $ 1,118.8 $ (89.8 ) (1) Derivatives not designated as accounting hedges. (2) Derivatives designated as accounting hedges. |
Schedule of fair value and balance sheet location of derivative instruments | The derivative instruments described above are recorded in the unaudited condensed consolidated balance sheets for the periods ended as follows (dollars in millions): September 30, 2021 December 31, 2020 Derivatives designated as hedging instruments Interest rate cross-currency swap agreements Other current assets $ 7.1 $ 7.6 Other current liabilities (8.5 ) (4.3 ) Other long-term liabilities (20.5 ) (57.2 ) (21.9 ) (53.9 ) Long-term debt Long-term debt (20.2 ) (37.6 ) Total derivatives designated as hedging instruments $ (42.1 ) $ (91.5 ) Derivatives not designated as hedging instruments Forward currency contracts Other current assets $ — $ 2.1 Other current liabilities (0.7 ) (0.4 ) Embedded derivatives in purchase and delivery contracts Other current assets — 0.1 Other current liabilities (0.1 ) — Fixed price commodity contracts Other current assets 0.8 3.1 Total derivatives not designated as hedging instruments — 4.9 Total derivatives $ (42.1 ) $ (86.6 ) |
Schedule of impact on net income of unrealized gains and losses resulting from changes in the fair value of derivative instruments | The following is a summary of the activity included in the unaudited condensed consolidated statements of income and comprehensive income related to the derivative instruments described above (in millions): Location of gain (loss) recognized in income on derivative Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Derivatives not designated as hedging instruments Forward currency contracts Interest and other income (expense), net $ (0.9 ) $ (0.2 ) $ (4.8 ) $ (0.4 ) Embedded Interest and other income (expense), net 0.1 (0.1 ) (0.3 ) 0.8 (0.8 ) (0.3 ) (5.1 ) 0.4 Derivatives designated as cash flow hedging instruments Interest rate cross-currency swap agreements Interest and other income (expense), net $ (1.2 ) $ (1.1 ) $ (3.5 ) $ (1.9 ) Derivatives designated as net investment hedging instruments Interest rate cross-currency swap agreements Interest and other income (expense), net 2.6 2.5 7.6 7.7 1.4 1.4 4.1 5.8 Total $ 0.6 $ 1.1 $ (1.0 ) $ 6.2 Amount of unrealized gain (loss) on contracts recognized other comprehensive income (loss) Three Months Ended September 30, Nine Months Ended September 30, Financial Statement Classification 2021 2020 2021 2020 Derivatives designated as cash flow hedging instruments Interest rate cross-currency Accumulated other comprehensive income, net of tax $ 0.9 $ (0.2 ) $ 11.5 $ (22.1 ) $ 0.9 $ (0.2 ) $ 11.5 $ (22.1 ) Derivatives designated as net investment hedging instruments Interest rate cross-currency swap agreements Accumulated other comprehensive income, net of tax $ 7.4 $ (21.9 ) $ 25.6 $ (0.3 ) Long-term debt Accumulated other comprehensive income, net of tax 2.2 (8.2 ) 22.2 (15.3 ) $ 9.6 $ (30.1 ) $ 47.8 $ (15.6 ) Total $ 10.5 $ (30.3 ) $ 59.3 $ (37.7 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share | |
Computation of basic and diluted weighted average shares outstanding and net income per common share | The following table sets forth the computation of basic and diluted weighted average shares outstanding and net income per common share attributable to Bruker shareholders (dollars in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net income attributable to Bruker Corporation, as reported $ 87.1 $ 54.3 $ 201.4 $ 88.9 Weighted average shares outstanding: Weighted average shares outstanding-basic 151.4 153.2 151.5 153.7 Effect of dilutive securities: Stock options and restricted stock awards and units 1.4 1.1 1.5 1.1 152.8 154.3 153.0 154.8 Net income per common share attributable to Bruker Corporation shareholders: Basic $ 0.58 $ 0.35 $ 1.33 $ 0.58 Diluted $ 0.57 $ 0.35 $ 1.32 $ 0.57 |
Schedule of common share equivalents have been excluded from the computation of diluted weighted-average shares outstanding, as their effect would have been anti-dilutive | The following common share equivalents have been excluded from the computation of diluted weighted-average shares outstanding, as their effect would have been anti-dilutive (amounts in millions of shares): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Stock options — 0.3 — 0.1 Unvested restricted stock units — 0.2 — 0.1 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Shareholders' Equity | |
Summary of comprehensive income (loss) | The following is a summary of comprehensive income (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Consolidated net income $ 88.1 $ 55.3 $ 204.6 $ 90.1 Foreign currency translation adjustments (26.6 ) 38.9 (80.2 ) 42.8 Derivatives designated as hedging instruments, net of tax 10.5 (30.3 ) 59.3 (37.7 ) Pension liability adjustments, net of tax 1.1 0.1 4.4 14.9 Net comprehensive income 73.1 64.0 188.1 110.1 Less: Comprehensive income attributable to noncontrolling interests 0.7 1.4 0.9 1.5 Less: Comprehensive loss attributable to redeemable noncontrolling interest — — — (0.5 ) Comprehensive income attributable to Bruker Corporation $ 72.4 $ 62.6 $ 187.2 $ 109.1 |
Summary of the components of accumulated other comprehensive income (loss), net of tax | The following is a summary of the components of Foreign Derivatives Pension Accumulated Balance at December 31, 2020 $ 140.9 $ (91.5 ) $ (45.7 ) $ 3.7 Other comprehensive (loss) income before reclassifications, net of tax (78.1 ) 59.3 2.2 (16.6 ) Realized loss on amounts reclassified from other comprehensive income, net of tax — — 2.2 2.2 Net current period other comprehensive (loss) income (78.1 ) 59.3 4.4 (14.4 ) Balance at September 30, 2021 $ 62.8 $ (32.2 ) $ (41.3 ) $ (10.7 ) |
Schedule of the impact of stock-based compensation expense | The Company recorded stock-based compensation expense as follows in the unaudited condensed consolidated statements of income and comprehensive income (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Costs of product revenue $ 0.6 $ 0.6 $ 1.6 $ 1.5 Selling, general and administrative 2.6 2.9 7.6 6.9 Research and development 0.6 0.6 1.6 1.5 Total stock-based compensation $ 3.8 $ 4.1 $ 10.8 $ 9.9 |
Schedule of stock option activity | Stock option activity was as follows: Shares Subject Weighted Weighted Aggregate Outstanding at December 31, 2020 1,856,176 $ 25.32 Granted 79,632 $ 85.10 Exercised (515,692 ) $ 20.40 Forfeited/Expired — $ — Outstanding at September 30, 2021 1,420,116 $ 30.45 4.3 $ 68.2 Exercisable at September 30, 2021 1,158,452 $ 24.66 3.8 $ 61.9 Exercisable and expected to vest at September 30, 2021 (a) 1,384,099 $ 29.68 4.2 $ 67.5 (a) Represents the number of vested options at September 30, 2021, plus the number of unvested options at September 30, 2021 that are ultimately expected to vest based on our estimated forfeiture rate. (b) The aggregate intrinsic value is based on the positive difference between the exercise price of the underlying options and the quoted price of our common stock on September 30, 2021. The total intrinsic value of options exercised was $31.8 million and $2.2 million for the nine months ended September 30, 2021 and 2020, respectively. |
Schedule of Unvested restricted stock unit activity | Restricted stock unit activity was as follows: Shares Subject Weighted Outstanding at December 31, 2020 805,052 $ 39.63 Granted 216,692 $ 78.01 Vested (329,840 ) $ 37.07 Forfeited (19,043 ) $ 43.52 Outstanding at September 30, 2021 672,861 $ 53.14 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | Nine months ended September 30, 2021 2020 Risk-free interest rates 0.62 % 0.23 % Expected life 4.43 years 5.14 years Volatility 34 % 34 % Expected dividend yield 0.20 % 0.37 % |
Other Charges, Net (Tables)
Other Charges, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Charges (Gain), Net | |
Schedule of components of other charges, net | The components of other charges, net were as Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Information technology transformation costs $ 1.1 $ 0.5 $ 2.6 $ 1.8 Professional fees incurred in connection with investigation matters 0.1 0.3 0.1 4.8 Restructuring charges 0.9 1.7 3.6 4.4 Acquisition-related charges 0.6 0.9 3.8 (1.0 ) Long-lived asset impairments (0.6 ) 0.7 (0.6 ) 1.9 Other — 0.1 — 0.3 Other charges, net $ 2.1 $ 4.2 $ 9.5 $ 12.2 |
Summary of restructuring charges | The following table sets forth the restructuring charges (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of revenues $ 0.2 $ 0.2 $ 1.5 $ 1.3 Other charges, net 0.9 1.7 3.6 4.4 $ 1.6 $ 1.9 $ 5.1 $ 5.7 |
Schedule of changes in restructuring reserves | The following table sets forth the changes in restructuring reserves (dollars in millions): Total Severance Exit Costs Provisions Balance at December 31, 2020 $ 9.8 $ 7.6 $ 0.8 $ 1.4 Restructuring charges 5.1 4.1 1.0 — Cash payments (9.7 ) (9.0 ) (0.7 ) — Other, non-cash (0.8 ) — (0.7 ) (0.1 ) Balance at September 30, 2021 $ 4.4 $ 2.7 $ 0.4 $ 1.3 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Segment Information | |
Schedule of revenue, operating income and total assets by reportable segment | Revenue and operating income by reportable segment are presented below (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenue: BSI Life Science $ 380.7 $ 323.4 $ 1,074.3 $ 842.6 BSI NANO 174.9 147.1 504.6 392.7 BEST 57.0 43.8 166.0 134.8 Eliminations (a) (3.7 ) (2.9 ) (10.5 ) (10.1 ) Total revenue $ 608.9 $ 511.4 $ 1,734.4 $ 1,360.0 Operating Income (loss) BSI Life Science $ 100.9 $ 80.6 $ 263.4 $ 158.7 BSI NANO 21.8 12.2 55.1 9.3 BEST 7.4 1.2 18.3 5.1 Corporate, eliminations and other (b) (16.9 ) (12.8 ) (48.9 ) (37.6 ) Total operating income $ 113.2 $ 81.2 $ 287.9 $ 135.5 (a) Represents product and service revenue between reportable segments. (b) Represents corporate costs and eliminations not allocated to the reportable segments. Total assets by reportable segment are as follows (dollars in millions): September 30, December 31, Assets: BSI Life Science, BSI NANO & Corporate $ 3,038.8 $ 2,964.5 BEST 95.1 88.7 Eliminations and other (a) (6.2 ) (4.2 ) Total assets $ 3,127.7 $ 3,049.0 (a) Assets not allocated to the reportable segments and eliminations of intercompany transactions. |
Description of Business (Detail
Description of Business (Details) | 9 Months Ended |
Sep. 30, 2021segment | |
Description of Business | |
Number of operating segments | 4 |
Number of reportable segments | 3 |
Revenue - Disaggregation (Detai
Revenue - Disaggregation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues disaggregated by Group | ||||
Total revenue | $ 608.9 | $ 511.4 | $ 1,734.4 | $ 1,360 |
Revenue recognized at a point in time | ||||
Revenues disaggregated by Group | ||||
Total revenue | 530.8 | 442.2 | 1,503 | 1,174 |
Revenue recognized over time | ||||
Revenues disaggregated by Group | ||||
Total revenue | 78.1 | 69.2 | 231.4 | 186 |
United States | ||||
Revenues disaggregated by Group | ||||
Total revenue | 163.2 | 120.1 | 442 | 332.1 |
Germany | ||||
Revenues disaggregated by Group | ||||
Total revenue | 55.5 | 50.4 | 186.4 | 134.9 |
Rest of Europe | ||||
Revenues disaggregated by Group | ||||
Total revenue | 155.4 | 142.9 | 459.9 | 357.7 |
Asia Pacific | ||||
Revenues disaggregated by Group | ||||
Total revenue | 191.6 | 160 | 525.8 | 433.3 |
Other | ||||
Revenues disaggregated by Group | ||||
Total revenue | 43.2 | 38 | 120.3 | 102 |
Bruker BioSpin | ||||
Revenues disaggregated by Group | ||||
Total revenue | 186.5 | 152.1 | 494.4 | 398.1 |
Bruker CALID | ||||
Revenues disaggregated by Group | ||||
Total revenue | 194.2 | 171.3 | 579.9 | 444.5 |
Bruker Nano | ||||
Revenues disaggregated by Group | ||||
Total revenue | 174.9 | 147.1 | 504.6 | 392.7 |
BEST | ||||
Revenues disaggregated by Group | ||||
Total revenue | 57 | 43.8 | 166 | 134.8 |
Eliminations | ||||
Revenues disaggregated by Group | ||||
Total revenue | $ (3.7) | $ (2.9) | $ (10.5) | $ (10.1) |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) $ in Millions | Sep. 30, 2021USD ($) |
Remaining Performance Obligations | |
Amount of remaining performance obligations | $ 2,035.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Remaining Performance Obligations | |
Remaining performance obligation expected to be recognized in the given period (as a percent) | 68.40% |
Duration of expected recognition period for remaining performance obligation | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Minimum | |
Remaining Performance Obligations | |
Duration of expected recognition period for remaining performance obligation | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Maximum | |
Remaining Performance Obligations | |
Duration of expected recognition period for remaining performance obligation | 3 years |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Revenue | ||
Contract assets | $ 56.4 | $ 41.8 |
Contract liabilities | 400.6 | $ 399.4 |
Revenue recognition during the period | $ 250.5 |
Acquisitions - SCI Instruments
Acquisitions - SCI Instruments (Details) - USD ($) $ in Millions | Aug. 24, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Allocation of Consideration Transferred: | |||
Goodwill | $ 324.2 | $ 320.4 | |
SCI Instruments | |||
Consideration Transferred: | |||
Contingent consideration | $ 1 | ||
Allocation of Consideration Transferred: | |||
Purchase price | 28 | ||
Potential additional consideration | $ 4 | ||
Amortization period for intangible assets acquired | 10 years | ||
SCI Instruments | Technology | |||
Allocation of Consideration Transferred: | |||
Amortization period for intangible assets acquired | 10 years | ||
SCI Instruments | Customer relationships | |||
Allocation of Consideration Transferred: | |||
Amortization period for intangible assets acquired | 9 years | ||
SCI Instruments | BSI NANO | |||
Consideration Transferred: | |||
Cash paid | $ 28 | ||
Fair value of contingent consideration | 1 | ||
Working capital adjustment | (1) | ||
Cash acquired | 28 | ||
Allocation of Consideration Transferred: | |||
Inventories | 1 | ||
Other current and non-current assets | 1 | ||
Goodwill | 12.6 | ||
Liabilities assumed | (1.7) | ||
Total consideration transferred | 28 | ||
SCI Instruments | BSI NANO | Technology | |||
Allocation of Consideration Transferred: | |||
Intangible assets | 7.1 | ||
SCI Instruments | BSI NANO | Customer relationships | |||
Allocation of Consideration Transferred: | |||
Intangible assets | 6.4 | ||
SCI Instruments | BSI NANO | Backlog | |||
Allocation of Consideration Transferred: | |||
Intangible assets | 1.2 | ||
SCI Instruments | BSI NANO | Trade name | |||
Allocation of Consideration Transferred: | |||
Intangible assets | $ 0.4 |
Acquisitions - Consideration tr
Acquisitions - Consideration transferred and reportable segment (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Business Acquisition [Line Items] | ||
Cash Consideration | $ 45 | $ 58.8 |
Investments in Businesses [Member] | ||
Business Acquisition [Line Items] | ||
Consideration | 4.5 | |
Cash Consideration | 4.5 | |
Creative Instruments | BSI Life Science | ||
Business Acquisition [Line Items] | ||
Consideration | 1 | |
Cash Consideration | 1 | |
SVXR, Inc. | BSI NANO | ||
Business Acquisition [Line Items] | ||
Consideration | 14 | |
Cash Consideration | 11.9 | |
Glycopath Inc. | BSI Life Science | Investments in Businesses [Member] | ||
Business Acquisition [Line Items] | ||
Consideration | 2 | |
Cash Consideration | 2 | |
IonPath Inc | BSI Life Science | Investments in Businesses [Member] | ||
Business Acquisition [Line Items] | ||
Consideration | 2 | |
Cash Consideration | 2 | |
Olaris, Inc. | BSI Life Science | Investments in Businesses [Member] | ||
Business Acquisition [Line Items] | ||
Consideration | 0.5 | |
Cash Consideration | 0.5 | |
Acquisitions in 2021 | ||
Business Acquisition [Line Items] | ||
Consideration | 15 | |
Cash Consideration | $ 12.9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Inventories | ||
Raw materials | $ 209.9 | $ 198.8 |
Work-in-process | 272.5 | 245.7 |
Finished goods | 155.9 | 152.1 |
Demonstration units | 94.5 | 95.7 |
Inventories | 732.8 | 692.3 |
Inventory-in-transit | $ 53.9 | $ 67.8 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill | |
Balance at the beginning of the period | $ 320.4 |
Current period additions/adjustments | 12.7 |
Foreign currency impact | (8.9) |
Balance at the end of the period | $ 324.2 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Intangible assets | |||||
Gross Carrying Amount, intangible assets subject to amortization | $ 480.4 | $ 480.4 | $ 473.6 | ||
Accumulated Amortization, intangible assets subject to amortization | (262.7) | (262.7) | (244.5) | ||
Net Carrying Amount, intangible assets subject to amortization | 217.7 | 217.7 | 229.1 | ||
Amortization expense related to intangible assets subject to amortization | 9.3 | $ 9 | 27.3 | $ 26.7 | |
Technology | |||||
Intangible assets | |||||
Gross Carrying Amount, intangible assets subject to amortization | 308.4 | 308.4 | 309.8 | ||
Accumulated Amortization, intangible assets subject to amortization | (202.1) | (202.1) | (194.6) | ||
Net Carrying Amount, intangible assets subject to amortization | 106.3 | 106.3 | 115.2 | ||
Customer relationships | |||||
Intangible assets | |||||
Gross Carrying Amount, intangible assets subject to amortization | 155.1 | 155.1 | 148.3 | ||
Accumulated Amortization, intangible assets subject to amortization | (54.6) | (54.6) | (45.4) | ||
Net Carrying Amount, intangible assets subject to amortization | 100.5 | 100.5 | 102.9 | ||
Trade name | |||||
Intangible assets | |||||
Gross Carrying Amount, intangible assets subject to amortization | 15.1 | 15.1 | 15.2 | ||
Accumulated Amortization, intangible assets subject to amortization | (5.4) | (5.4) | (4.4) | ||
Net Carrying Amount, intangible assets subject to amortization | 9.7 | 9.7 | 10.8 | ||
Other | |||||
Intangible assets | |||||
Gross Carrying Amount, intangible assets subject to amortization | 1.8 | 1.8 | 0.3 | ||
Accumulated Amortization, intangible assets subject to amortization | (0.6) | (0.6) | (0.1) | ||
Net Carrying Amount, intangible assets subject to amortization | $ 1.2 | $ 1.2 | $ 0.2 |
Debt - Components (Details)
Debt - Components (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Debt | ||
Unamortized debt issuance costs | $ (2.1) | $ (2.4) |
Total debt | 827 | 844.5 |
Current portion of long-term debt | (109.5) | (2.2) |
Total long-term debt, less current portion | 717.5 | 842.3 |
2012 Note Purchase Agreement | ||
Debt | ||
Debt, before unamortized debt issuance costs | 205 | 205 |
2019 Note Purchase Agreement | ||
Debt | ||
Debt, before unamortized debt issuance costs | 318.1 | 335.5 |
2019 Term Loan | ||
Debt | ||
Debt, before unamortized debt issuance costs | 300 | 300 |
Finance lease obligations and other loans | ||
Debt | ||
Total debt | $ 6 | $ 6.4 |
Debt - Revolving Loan Arrangeme
Debt - Revolving Loan Arrangements (Details) $ in Millions | Sep. 30, 2021USD ($) |
Revolving lines of credit | |
Total Amount Committed by Lenders | $ 715.2 |
Outstanding Letters of Credit | 115.3 |
Total Committed Amount Available | $ 599.9 |
2019 Credit Agreement | US Dollar revolving loan | |
Revolving lines of credit | |
Weighted Average Interest Rate (as a percent) | 1.30% |
Total Amount Committed by Lenders | $ 600 |
Outstanding Letters of Credit | 0.1 |
Total Committed Amount Available | 599.9 |
Bank guarantees and working capital line | |
Revolving lines of credit | |
Total Amount Committed by Lenders | 115.2 |
Outstanding Letters of Credit | $ 115.2 |
Debt - Currency Swaps (Details)
Debt - Currency Swaps (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt | ||||
Reduction of interest expense by cross-currency and interest swap agreements | $ 1.4 | $ 1.4 | $ 4.1 | $ 5.8 |
US to Swiss Franc | ||||
Debt | ||||
Notional Amount | 150 | 150 | ||
US to Euro | ||||
Debt | ||||
Notional Amount | $ 355 | $ 355 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Hierarchy (Details) - Recurring basis - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Time deposits and money market funds | $ 12.4 | $ 183.2 |
Short-term investments | 96.8 | 50 |
Interest rate and cross currency swap agreements | 7.1 | 7.6 |
Forward currency contracts | 2.1 | |
Embedded derivatives in purchase and delivery contracts | 0.1 | |
Fixed price commodity contracts | 0.8 | 3.1 |
Debt securities available for sale | 1.2 | 1.2 |
Total assets recorded at fair value | 118.3 | 247.3 |
Liabilities: | ||
Contingent consideration | 5.6 | 4.3 |
Hybrid instrument liability | 14.3 | 13.9 |
Interest rate and cross currency swap agreements | 29 | 61.5 |
Embedded derivatives in purchase and delivery contracts | 0.1 | |
Forward currency contracts | 0.7 | 0.4 |
Long-term fixed interest rate debt | 535.1 | 549.8 |
Total liabilities recorded at fair value | 584.8 | 629.9 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Time deposits and money market funds | 12.4 | 183.2 |
Short-term investments | 96.8 | 50 |
Interest rate and cross currency swap agreements | 7.1 | 7.6 |
Forward currency contracts | 2.1 | |
Embedded derivatives in purchase and delivery contracts | 0.1 | |
Fixed price commodity contracts | 0.8 | 3.1 |
Total assets recorded at fair value | 117.1 | 246.1 |
Liabilities: | ||
Interest rate and cross currency swap agreements | 29 | 61.5 |
Embedded derivatives in purchase and delivery contracts | 0.1 | |
Forward currency contracts | 0.7 | 0.4 |
Long-term fixed interest rate debt | 535.1 | 549.8 |
Total liabilities recorded at fair value | 564.9 | 611.7 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Debt securities available for sale | 1.2 | 1.2 |
Total assets recorded at fair value | 1.2 | 1.2 |
Liabilities: | ||
Contingent consideration | 5.6 | 4.3 |
Hybrid instrument liability | 14.3 | 13.9 |
Total liabilities recorded at fair value | $ 19.9 | $ 18.2 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Contingent Consideration and Hybrid Instrument Liability (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Mestrelab | |
Fair value of financial instruments | |
Remaining ownership percentage under options that can be exercised after 2022 | 49.00% |
Contingent consideration | |
Changes in contingent consideration liabilities | |
Balance at December 31, 2020 | $ 4.3 |
Current period additions | 1.9 |
Current period adjustments | (0.1) |
Current period settlements | (0.4) |
Foreign currency effect | (0.1) |
Balance at September 30, 2021 | 5.6 |
Hybrid instrument | |
Changes in contingent consideration liabilities | |
Balance at December 31, 2020 | 13.9 |
Current period adjustments | 1.1 |
Foreign currency effect | (0.7) |
Balance at September 30, 2021 | $ 14.3 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Risk Management (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative instruments and hedging activities | ||
Fair value, net asset (liability) | $ (42.1) | $ (86.6) |
Embedded derivatives in purchase and delivery contracts | ||
Embedded derivatives in purchase and delivery contracts | ||
Notional amount of derivative sale contracts | 6 | 7.5 |
Notional amount of derivative purchase contracts | 7 | 4.8 |
Forward currency and swap agreements | ||
Derivative instruments and hedging activities | ||
Notional Amount | 947.6 | 1,118.8 |
Fair value, net asset (liability) | (42.8) | (89.8) |
Forward currency contract | ||
Derivative instruments and hedging activities | ||
Notional amount, assets | 10.4 | 175.8 |
Notional amount, liabilities | 114.1 | 102.5 |
Not designated as accounting hedges | ||
Assets | 2.1 | |
Liabilities | (0.7) | (0.4) |
Fixed price commodity contracts | ||
Derivative instruments and hedging activities | ||
Notional Amount | 4.5 | 8.8 |
Interest rate cross-currency swap agreements | ||
Derivative instruments and hedging activities | ||
Notional amount, liabilities | 505 | 505 |
Designated as accounting hedges | ||
Liabilities | (21.9) | (53.9) |
Long-term debt | ||
Derivative instruments and hedging activities | ||
Notional amount, liabilities | 318.1 | 335.5 |
Not designated as accounting hedges | ||
Liabilities | $ (20.2) | $ (37.6) |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative instruments and hedging activities | ||
Derivative Assets (Liabilities) | $ (42.1) | $ (86.6) |
Forward currency and swap agreements | ||
Derivative instruments and hedging activities | ||
Derivative Assets (Liabilities) | (42.8) | (89.8) |
Embedded derivatives in purchase and delivery contracts | Other current liabilities | ||
Derivative instruments and hedging activities | ||
Derivative Liability | (0.1) | |
Interest rate and cross currency swap agreements | ||
Derivative instruments and hedging activities | ||
Derivative Assets (Liabilities) | (21.9) | (53.9) |
Designated as hedging instrument | ||
Derivative instruments and hedging activities | ||
Derivative Assets (Liabilities) | (42.1) | (91.5) |
Designated as hedging instrument | Other current assets | ||
Derivative instruments and hedging activities | ||
Derivative Asset | 7.1 | 7.6 |
Designated as hedging instrument | Other current liabilities | ||
Derivative instruments and hedging activities | ||
Derivative Liability | (8.5) | (4.3) |
Designated as hedging instrument | Other long-term liabilities | ||
Derivative instruments and hedging activities | ||
Derivative Liability | (20.5) | (57.2) |
Designated as hedging instrument | Long-term debt | ||
Derivative instruments and hedging activities | ||
Derivative Assets (Liabilities) | (20.2) | (37.6) |
Not designated as hedging instruments | ||
Derivative instruments and hedging activities | ||
Derivative Assets (Liabilities) | 0 | 4.9 |
Not designated as hedging instruments | Forward currency contract | Other current assets | ||
Derivative instruments and hedging activities | ||
Derivative Asset | 2.1 | |
Not designated as hedging instruments | Forward currency contract | Other current liabilities | ||
Derivative instruments and hedging activities | ||
Derivative Liability | (0.7) | (0.4) |
Not designated as hedging instruments | Embedded derivatives in purchase and delivery contracts | Other current assets | ||
Derivative instruments and hedging activities | ||
Derivative Asset | 0.1 | |
Not designated as hedging instruments | Fixed price commodity contracts | Other current assets | ||
Derivative instruments and hedging activities | ||
Derivative Asset | $ 0.8 | $ 3.1 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Income and Comprehensive Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Not designated as hedging instruments | ||||
Derivative instruments and hedging activities | ||||
Impact on net income of unrealized gains and losses | $ (0.8) | $ (0.3) | $ (5.1) | $ 0.4 |
Not designated as hedging instruments | Interest and other income (expense), net | Forward currency contract | ||||
Derivative instruments and hedging activities | ||||
Impact on net income of unrealized gains and losses | (0.9) | (0.2) | (4.8) | (0.4) |
Not designated as hedging instruments | Interest and other income (expense), net | Embedded derivatives in purchase and delivery contracts | ||||
Derivative instruments and hedging activities | ||||
Impact on net income of unrealized gains and losses | 0.1 | (0.1) | (0.3) | 0.8 |
Not designated as hedging instruments | Net Investment Hedging | Accumulated other comprehensive income, net of tax | ||||
Derivative instruments and hedging activities | ||||
Impact on net income of unrealized gains and losses | 10.5 | 30.3 | 59.3 | 37.7 |
Not designated as hedging instruments | Net Investment Hedging | Accumulated other comprehensive income, net of tax | Accumulated other comprehensive income | ||||
Derivative instruments and hedging activities | ||||
Impact on net income of unrealized gains and losses | 9.6 | (30.1) | 47.8 | 15.6 |
Designated as hedging instrument | Cash Flow Hedging | Interest and other income (expense), net | Interest rate and cross currency swap agreements | ||||
Derivative instruments and hedging activities | ||||
Impact on net income of unrealized gains and losses | (1.2) | (1.1) | (3.5) | (1.9) |
Designated as hedging instrument | Cash Flow Hedging | Accumulated other comprehensive income, net of tax | ||||
Derivative instruments and hedging activities | ||||
Impact on net income of unrealized gains and losses | 0.9 | 0.2 | 11.5 | 22.1 |
Designated as hedging instrument | Cash Flow Hedging | Accumulated other comprehensive income, net of tax | Interest rate and cross currency swap agreements | ||||
Derivative instruments and hedging activities | ||||
Impact on net income of unrealized gains and losses | 0.9 | (0.2) | 11.5 | (22.1) |
Designated as hedging instrument | Net Investment Hedging | ||||
Derivative instruments and hedging activities | ||||
Impact on net income of unrealized gains and losses | 0.6 | 1.1 | (1) | 6.2 |
Designated as hedging instrument | Net Investment Hedging | Accumulated other comprehensive income | Interest rate and cross currency swap agreements | ||||
Derivative instruments and hedging activities | ||||
Impact on net income of unrealized gains and losses | 1.4 | 1.4 | 4.1 | 5.8 |
Designated as hedging instrument | Net Investment Hedging | Interest and other income (expense), net | Interest rate and cross currency swap agreements | ||||
Derivative instruments and hedging activities | ||||
Impact on net income of unrealized gains and losses | 2.6 | 2.5 | 7.6 | 7.7 |
Designated as hedging instrument | Net Investment Hedging | Accumulated other comprehensive income, net of tax | Interest rate and cross currency swap agreements | ||||
Derivative instruments and hedging activities | ||||
Impact on net income of unrealized gains and losses | 7.4 | (21.9) | 25.6 | (0.3) |
Designated as hedging instrument | Net Investment Hedging | Accumulated other comprehensive income, net of tax | Long-term debt | ||||
Derivative instruments and hedging activities | ||||
Impact on net income of unrealized gains and losses | $ 2.2 | $ 8.2 | $ 22.2 | $ 15.3 |
Provision for Income Taxes (Det
Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Provision for Income Taxes | |||||
Income tax expense (benefit) | $ 20.7 | $ 20 | $ 69.5 | $ 30 | |
Effective tax rates (as a percent) | 19.00% | 26.60% | 25.40% | 25.00% | |
Unrecognized tax benefits, excluding penalties and interest | $ 34.8 | $ 34.8 | $ 22.7 | ||
Accrued interest and penalties related to uncertain tax positions | 2.3 | 2.3 | $ 1.8 | ||
Penalties and interest (benefit) expense relating to unrecognized tax benefits | $ 0.2 | $ 0.1 | $ 0.6 | $ 0.4 | |
Statutory tax rate (as a percent) | 21.00% | ||||
Change in tax rate - foreign jurisdictions (as a percent) | 5.50% | ||||
Germany | |||||
Provision for Income Taxes | |||||
Statutory tax rate (as a percent) | 30.00% | ||||
Switzerland | |||||
Provision for Income Taxes | |||||
Statutory tax rate (as a percent) | 20.00% |
Earnings Per Share - Computatio
Earnings Per Share - Computation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share | ||||
Net income attributable to Bruker Corporation, as reported | $ 87.1 | $ 54.3 | $ 201.4 | $ 88.9 |
Weighted average shares outstanding: | ||||
Weighted average shares outstanding-basic | 151.4 | 153.2 | 151.5 | 153.7 |
Effect of dilutive securities: | ||||
Stock options and restricted stock awards and units (in shares) | 1.4 | 1.1 | 1.5 | 1.1 |
Weighted-average number of common shares used in computing diluted net income per common share | 152.8 | 154.3 | 153 | 154.8 |
Net income per common share attributable to Bruker Corporation shareholders: | ||||
Basic (in dollars per share) | $ 0.58 | $ 0.35 | $ 1.33 | $ 0.58 |
Diluted (in dollars per share) | $ 0.57 | $ 0.35 | $ 1.32 | $ 0.57 |
Earnings Per Share - Anti-dilut
Earnings Per Share - Anti-dilutive Stock Options (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stock options | ||||
Anti-dilutive securities | ||||
Number of shares excluded from the computation of diluted earnings per share | 0 | 0.3 | 0 | 0.1 |
Unvested restricted stock units | ||||
Anti-dilutive securities | ||||
Number of shares excluded from the computation of diluted earnings per share | 0 | 0.2 | 0 | 0.1 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchase and Dividends (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
May 31, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | May 31, 2019 | |
Shareholders' Equity | ||||
Number of shares purchased for issuance under share-based payment arrangement. | 0 | |||
May 2019 Repurchase Program | ||||
Shareholders' Equity | ||||
Amount approved for repurchase of common stock | $ 300 | |||
Common stock repurchased during the period (in shares) | 555,602 | |||
Aggregate cost of common stock repurchased during the period | $ 34.5 | |||
May 2021 Repurchase Program | ||||
Shareholders' Equity | ||||
Amount approved for repurchase of common stock | $ 500 | |||
Common stock repurchased during the period (in shares) | 530,703 | |||
Aggregate cost of common stock repurchased during the period | $ 36.6 | |||
Remaining authorization amount for repurchase of common stock | $ 463.4 | $ 463.4 | ||
Stock repurchase program,Purchase of common stock from time to time, period | 2 years |
Shareholders' Equity - Comprehe
Shareholders' Equity - Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Summary of comprehensive income (loss) | ||||
Consolidated net income | $ 88.1 | $ 55.3 | $ 204.6 | $ 90.1 |
Foreign currency translation adjustments | (26.6) | 38.9 | (80.2) | 42.8 |
Derivatives designated as hedging instruments, net of tax | 10.5 | (30.3) | 59.3 | (37.7) |
Pension liability adjustments, net of tax | 1.1 | 0.1 | 4.4 | 14.9 |
Net comprehensive income | 73.1 | 64 | 188.1 | 110.1 |
Less: Comprehensive income attributable to noncontrolling interests | 0.7 | 1.4 | 0.9 | 1.5 |
Less: Comprehensive loss attributable to redeemable noncontrolling interest | (0.5) | |||
Comprehensive income attributable to Bruker Corporation | $ 72.4 | $ 62.6 | $ 187.2 | $ 109.1 |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Income (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Summary of the components of accumulated other comprehensive income, net of tax | |
Balance at beginning of period | $ 974.3 |
Balance at end of period | 1,089.6 |
Foreign Currency Translation | |
Summary of the components of accumulated other comprehensive income, net of tax | |
Balance at beginning of period | 140.9 |
Other comprehensive (loss) income before reclassifications, net of tax | (78.1) |
Net current period other comprehensive (loss) income | (78.1) |
Balance at end of period | 62.8 |
Derivatives Designated as Hedging Instruments | |
Summary of the components of accumulated other comprehensive income, net of tax | |
Balance at beginning of period | (91.5) |
Other comprehensive (loss) income before reclassifications, net of tax | 59.3 |
Net current period other comprehensive (loss) income | 59.3 |
Balance at end of period | (32.2) |
Pension Liability Adjustment | |
Summary of the components of accumulated other comprehensive income, net of tax | |
Balance at beginning of period | (45.7) |
Other comprehensive (loss) income before reclassifications, net of tax | 2.2 |
Realized loss on amounts reclassified from other comprehensive income, net of tax | 2.2 |
Net current period other comprehensive (loss) income | 4.4 |
Balance at end of period | (41.3) |
Accumulated Other Comprehensive Income (Loss) | |
Summary of the components of accumulated other comprehensive income, net of tax | |
Balance at beginning of period | 3.7 |
Other comprehensive (loss) income before reclassifications, net of tax | (16.6) |
Realized loss on amounts reclassified from other comprehensive income, net of tax | 2.2 |
Net current period other comprehensive (loss) income | (14.4) |
Balance at end of period | $ (10.7) |
Shareholders' Equity - Expense
Shareholders' Equity - Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 3.8 | $ 4.1 | $ 10.8 | $ 9.9 |
Cost of revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 0.6 | 0.6 | 1.6 | 1.5 |
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 2.6 | 2.9 | 7.6 | 6.9 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 0.6 | 0.6 | 1.6 | 1.5 |
Mestrelab | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 0.3 | $ 0.3 | $ 1.1 | $ 1 |
Stock options | ||||
Additional information | ||||
Weighted average remaining service period | 2 years 8 months 12 days | |||
Pre-tax stock-based compensation expense Stock options | 3.3 | $ 3.3 | ||
Restricted stock units | ||||
Additional information | ||||
Weighted average remaining service period | 2 years 7 months 6 days | |||
Pre-tax stock-based compensation expense restricted stock units | $ 30.5 | $ 30.5 |
Shareholders' Equity - Share-ba
Shareholders' Equity - Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions (Details) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Risk-free interest rates (as a percent) | 0.62% | 0.23% |
Expected life | 4 years 5 months 4 days | 5 years 1 month 20 days |
Volatility (as a percent) | 34.00% | 34.00% |
Expected dividend yield | 0.20% | 0.37% |
Shareholders' Equity - RSU Acti
Shareholders' Equity - RSU Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Restricted stock units | ||
Additional share-based compensation disclosures | ||
Total fair value of shares vested | $ 26.6 | $ 12.8 |
Unvested restricted stock units | ||
Restricted stock, Shares Subject to Restriction | ||
Outstanding at the beginning of the period (in shares) | 805,052 | |
Granted (in shares) | 216,692 | |
Vested (in shares) | (329,840) | |
Forfeited (in shares) | (19,043) | |
Outstanding at the end of the period (in shares) | 672,861 | |
Restricted stock, Weighted Average Grant Date Fair Value | ||
Outstanding at the beginning of the period (in dollars per share) | $ 39.63 | |
Granted (in dollars per share) | 78.01 | |
Vested (in dollars per share) | 37.07 | |
Forfeited (in dollars per share) | 43.52 | |
Outstanding at the end of the period (in dollars per share) | $ 53.14 |
Shareholders' Equity - Stock Op
Shareholders' Equity - Stock Option Activity (Details) $ / shares in Units, $ in Millions | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($) |
Stock options, Shares Subject to Options | |||
Outstanding at the beginning of the period (in shares) | shares | 1,856,176 | ||
Granted (in shares) | shares | 79,632 | ||
Exercised (in shares) | shares | (515,692) | ||
Outstanding at the end of the period (in shares) | shares | 1,420,116 | 1,420,116 | |
Exercisable at the end of the period (in shares) | shares | 1,158,452 | 1,158,452 | |
Exercisable and expected to vest at the end of the period (in shares) | shares | 1,384,099 | 1,384,099 | |
Stock options, Weighted Average Option Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 25.32 | ||
Granted (in dollars per share) | $ / shares | 85.10 | ||
Exercised (in dollars per share) | $ / shares | 20.40 | ||
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 30.45 | 30.45 | |
Exercisable at the end of the period (in dollars per share) | $ / shares | 24.66 | 24.66 | |
Exercisable and expected to vest at the end of the period (in dollars per share) | $ / shares | $ 29.68 | $ 29.68 | |
Stock options, additional information | |||
Weighted Average Remaining Contractual Term, Outstanding | 4 months 9 days | ||
Weighted Average Remaining Contractual Term, Exercisable | 3 months 24 days | ||
Weighted Average Remaining Contractual Term, Exercisable and expected to vest | 4 months 6 days | ||
Aggregate Intrinsic Value, Outstanding | $ | $ 68.2 | $ 68.2 | |
Aggregate Intrinsic Value, Exercisable | $ | 61.9 | 61.9 | |
Aggregate Intrinsic Value, Exercisable and expected to vest | $ | $ 67.5 | 67.5 | |
Intrinsic value of options exercised | $ | $ 31.8 | $ 2.2 |
Other Charges, Net - Components
Other Charges, Net - Components of other charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Charges (Gain), Net | ||||
Information technology transformation costs | $ 1.1 | $ 0.5 | $ 2.6 | $ 1.8 |
Professional fees incurred in connection with investigation matters | 0.1 | 0.3 | 0.1 | 4.8 |
Restructuring charges | 0.9 | 1.7 | 3.6 | 4.4 |
Acquisition-related charges | 0.6 | 0.9 | 3.8 | (1) |
Long-lived asset impairments | (0.6) | 0.7 | (0.6) | 1.9 |
Other | 0.1 | 0.3 | ||
Other charges, net | $ 2.1 | $ 4.2 | $ 9.5 | $ 12.2 |
Other Charges, Net - Restructur
Other Charges, Net - Restructuring Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring charges | ||||
Restructuring expenses | $ 1.6 | $ 1.9 | $ 5.1 | $ 5.7 |
Cost of revenues | ||||
Restructuring charges | ||||
Restructuring expenses | 0.2 | 0.2 | 1.5 | 1.3 |
Other charges, net | ||||
Restructuring charges | ||||
Restructuring expenses | $ 0.9 | $ 1.7 | $ 3.6 | $ 4.4 |
Other Charges, Net - Restruct_2
Other Charges, Net - Restructuring Reserves (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Changes in the restructuring reserves | ||||
Balance at the beginning of the period | $ 9.8 | |||
Restructuring charges | $ 1.6 | $ 1.9 | 5.1 | $ 5.7 |
Cash payments | (9.7) | |||
Other, non-cash adjustments and foreign currency effect | (0.8) | |||
Balance at the end of the period | 4.4 | 4.4 | ||
Severance | ||||
Changes in the restructuring reserves | ||||
Balance at the beginning of the period | 7.6 | |||
Restructuring charges | 4.1 | |||
Cash payments | (9) | |||
Balance at the end of the period | 2.7 | 2.7 | ||
Exit Costs | ||||
Changes in the restructuring reserves | ||||
Balance at the beginning of the period | 0.8 | |||
Restructuring charges | 1 | |||
Cash payments | (0.7) | |||
Other, non-cash adjustments and foreign currency effect | (0.7) | |||
Balance at the end of the period | 0.4 | 0.4 | ||
Provisions for Excess Inventory | ||||
Changes in the restructuring reserves | ||||
Balance at the beginning of the period | 1.4 | |||
Other, non-cash adjustments and foreign currency effect | (0.1) | |||
Balance at the end of the period | $ 1.3 | $ 1.3 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Letters of Credit and Guarantees | ||
Material Accruals For Potential Contingencies | $ 0 | $ 0 |
Business Segment Information (D
Business Segment Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Business segment information | |||||
Number of reportable segments | segment | 3 | ||||
Total revenue | $ 608.9 | $ 511.4 | $ 1,734.4 | $ 1,360 | |
Operating Income (loss) | 113.2 | 81.2 | 287.9 | 135.5 | |
Assets | 3,127.7 | 3,127.7 | $ 3,049 | ||
Eliminations | |||||
Business segment information | |||||
Total revenue | (3.7) | (2.9) | (10.5) | (10.1) | |
Corporate, eliminations and other | |||||
Business segment information | |||||
Operating Income (loss) | (16.9) | (12.8) | (48.9) | (37.6) | |
Assets | (6.2) | (6.2) | (4.2) | ||
BSI Life Science | Operating segments | |||||
Business segment information | |||||
Total revenue | 380.7 | 323.4 | 1,074.3 | 842.6 | |
Operating Income (loss) | 100.9 | 80.6 | 263.4 | 158.7 | |
Assets | 3,038.8 | 3,038.8 | 2,964.5 | ||
BSI NANO | Operating segments | |||||
Business segment information | |||||
Total revenue | 174.9 | 147.1 | 504.6 | 392.7 | |
Operating Income (loss) | 21.8 | 12.2 | 55.1 | 9.3 | |
BEST | |||||
Business segment information | |||||
Total revenue | 57 | 43.8 | 166 | 134.8 | |
BEST | Operating segments | |||||
Business segment information | |||||
Total revenue | 57 | 43.8 | 166 | 134.8 | |
Operating Income (loss) | 7.4 | $ 1.2 | 18.3 | $ 5.1 | |
Assets | $ 95.1 | $ 95.1 | $ 88.7 |