Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | May 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 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 | 151,521,114 | |
Entity Central Index Key | 0001109354 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 696.8 | $ 681.8 |
Short-term investments | 50 | 50 |
Accounts receivable, net | 326 | 335.3 |
Inventories | 700.7 | 692.3 |
Other current assets | 172.7 | 165.6 |
Total current assets | 1,946.2 | 1,925 |
Property, plant and equipment, net | 384.1 | 395.5 |
Goodwill | 313.3 | 320.4 |
Intangible assets, net | 213.4 | 229.1 |
Other long-term assets | 177.9 | 179 |
Total assets | 3,034.9 | 3,049 |
Current liabilities: | ||
Current portion of long-term debt | 108.4 | 2.2 |
Accounts payable | 152.3 | 134.6 |
Customer advances | 182.2 | 189.2 |
Other current liabilities | 500.6 | 465.9 |
Total current liabilities | 943.5 | 791.9 |
Long-term debt | 715.8 | 842.3 |
Other long-term liabilities | 393.9 | 440.5 |
Commitments and contingencies (Note 14) | ||
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, 174,132,743 and 174,045,610 shares issued and 151,543,485 and 151,987,081 shares outstanding at March 31, 2021 and December 31, 2020, respectively | 1.7 | 1.7 |
Treasury stock, at cost, 22,589,258 and 22,058,529 shares at March 31, 2021 and December 31, 2020 | (699.8) | (667) |
Accumulated other comprehensive (loss) income | (12.1) | 3.7 |
Other shareholders' equity | 1,677.9 | 1,622.8 |
Total shareholders' equity attributable to Bruker Corporation | 967.7 | 961.2 |
Noncontrolling interest in consolidated subsidiaries | 14 | 13.1 |
Total shareholders' equity | 981.7 | 974.3 |
Total liabilities and shareholders' equity | $ 3,034.9 | $ 3,049 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 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 | 174,132,743 | 174,045,610 |
Common stock, shares outstanding | 151,543,485 | 151,987,081 |
Treasury stock, shares | 22,589,258 | 22,058,529 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Total revenue | $ 554.7 | $ 424 |
Total cost of revenue | 276 | 231.7 |
Gross profit | 278.7 | 192.3 |
Operating expenses: | ||
Selling, general and administrative | 131.8 | 121.2 |
Research and development | 54.8 | 48.5 |
Other charges, net | 3 | 6.2 |
Total operating expenses | 189.6 | 175.9 |
Operating income | 89.1 | 16.4 |
Interest and other income (expense), net | (3.8) | (2.9) |
Income before income taxes and noncontrolling interest in consolidated subsidiaries | 85.3 | 13.5 |
Income tax provision | 27.5 | 2.9 |
Consolidated net income | 57.8 | 10.6 |
Net income (loss) attributable to noncontrolling interests in consolidated subsidiaries | 1.1 | 0.1 |
Net income attributable to Bruker Corporation | $ 56.7 | $ 10.5 |
Net income per common share attributable to Bruker Corporation shareholders: | ||
Basic (in dollars per share) | $ 0.37 | $ 0.07 |
Diluted (in dollars per share) | $ 0.37 | $ 0.07 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 151.8 | 154.2 |
Diluted (in shares) | 153.2 | 155.4 |
Comprehensive income | $ 41.6 | $ 12.1 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0.9 | (0.1) |
Less: Comprehensive income (loss) attributable to redeemable noncontrolling interest | (0.5) | |
Comprehensive income attributable to Bruker Corporation | 40.7 | 12.7 |
Product | ||
Total revenue | 458.6 | 345 |
Total cost of revenue | 220.9 | 180.5 |
Service | ||
Total revenue | 94.1 | 78.2 |
Total cost of revenue | 54.8 | 51.1 |
Other | ||
Total revenue | 2 | 0.8 |
Total cost of revenue | $ 0.3 | $ 0.1 |
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 80% 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 | |||||||
Balance at beginning of period at Dec. 31, 2020 | 974.3 | 961.2 | $ 1.7 | $ (667) | 216.3 | 1,406.5 | 3.7 | 13.1 | |
Balance (in shares) at Dec. 31, 2020 | 151,987,081 | 22,058,529 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stock options exercised | 1.2 | 1.2 | 1.2 | ||||||
Stock options exercised (in shares) | 65,312 | ||||||||
RSU vested | (0.1) | (0.1) | (0.1) | ||||||
RSU vested (in shares) | 21,821 | ||||||||
Stock based compensation | 3.4 | 3.4 | 3.4 | ||||||
Shares purchased | (32.8) | (32.8) | $ (32.8) | ||||||
Shares purchased (in shares) | (530,729) | 530,729 | |||||||
Dividends declared to common stockholders | (6.1) | (6.1) | (6.1) | ||||||
Consolidated net income | 57.8 | 56.7 | 56.7 | 1.1 | |||||
Other comprehensive 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 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Dividends declared (per share) | $ 0.04 | $ 0.04 |
Hain | ||
Interest acquired | 20.00% |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Consolidated net income | $ 57.8 | $ 10.6 |
Adjustments to reconcile consolidated net income to cash flows from operating activities: | ||
Depreciation and amortization | 22.3 | 19 |
Stock-based compensation expense | 3.8 | 3.3 |
Deferred income taxes | 4.9 | 1.1 |
Other non-cash expenses, net | 4.9 | 11.7 |
Changes in operating assets and liabilities, net of acquisitions and divestitures: | ||
Accounts receivable | 0.8 | 29.5 |
Inventories | (41.6) | (61) |
Accounts payable and accrued expenses | 35.5 | 19.1 |
Income taxes payable | 10.1 | (15) |
Deferred revenue | 14.1 | 20.6 |
Customer advances | 2.5 | 16.5 |
Other changes in operating assets and liabilities, net | (17.1) | (20.4) |
Net cash provided by operating activities | 98 | 35 |
Cash flows from investing activities: | ||
Purchases of short-term investments | (50) | |
Cash paid for acquisitions, net of cash acquired | (4) | (22) |
Purchases of property, plant and equipment | (24.7) | (30.5) |
Proceeds from sales of property, plant and equipment | 1.2 | |
Net proceeds from cross-currency swap agreements | 3.5 | 1.9 |
Net cash used in investing activities | (24) | (100.6) |
Cash flows from financing activities: | ||
Proceeds from revolving lines of credit | 197.5 | |
Repayment of other debt | (0.4) | (0.3) |
Proceeds from other debt | 0.3 | 1.2 |
Proceeds from issuance of common stock, net | 1.1 | 0.6 |
Payment of contingent consideration | (0.4) | (0.3) |
Payment of dividends to common stockholders | (6.1) | (6.2) |
Purchases of common stock | (32.6) | |
Cash payments to noncontrolling interest | (1.2) | |
Net cash (used in) provided by financing activities | (38.1) | 191.3 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (21) | (8.7) |
Net change in cash, cash equivalents and restricted cash | 14.9 | 117 |
Cash, cash equivalents and restricted cash at beginning of period | 685.5 | 681.9 |
Cash, cash equivalents and restricted cash at end of period | 700.4 | 798.9 |
Supplemental disclosure of cash flow information: | ||
Restricted cash period beginning balance | 3.7 | 3.6 |
Restricted cash period ending balance | $ 3.6 | $ 3.4 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 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 needs of a diverse array of customers in life science research, pharmaceuticals, biotechnology, applied markets, cell biology, clinical research, microbiology, in-vitro The Company has four operating segments, Bruker BioSpin Group, Bruker CALID Group, Bruker Scientific Instruments (BSI) Nano Segment Bruker Energy & Supercon Technologies (BEST) BSI Life Science Segment, BSI NANO Segment BEST For financial reporting purposes, the Bruker BioSpin Group and Bruker CALID Group operating segments are aggregated into the reportable BSI Life Science Segment because each has similar economic characteristics, production processes, service offerings, types and classes of customers, methods of distribution and regulatory environments. Bruker BioSpin Bruker CALID (Chemicals, Applied Markets, Life Science, In-Vitro for-profit The BSI NANO Segment designs, manufactures and distributes advanced X-ray X-ray X-ray 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 March 31, 2021 and December 31, 2020, and for the three months ended March 31, 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) for Quarterly Reports on Form 10-Q S-X. At March 31, 2021, the Company’s significant accounting policies and estimates, which are detailed in the Company’s Annual Report on Form 10-K Risks and Uncertainties The Company is subject to risks common to its industry including, but not limited to, global economic conditions, rapid technological change, government and academic funding levels, 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 re-opened pre-pandemic 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 it believes 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 | 3 Months Ended |
Mar. 31, 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, Reference Rate Reform (Topic 848) In January 2020, the FASB issued ASU 2020-01- Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)-Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force) In December 2019, the FASB issued ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 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 2021 2020 Revenue by Group: Bruker BioSpin $ 159.4 $ 120.9 Bruker CALID 192.4 140.5 Bruker Nano 154.4 120.1 BEST 52.4 46.2 Eliminations (3.9 ) (3.7 ) Total revenue $ 554.7 $ 424.0 Three Months Ended 2021 2020 Revenue by End Customer Geography: United States $ 119.0 $ 109.4 Germany 70.1 40.9 Rest of Europe 149.8 104.0 Asia Pacific 180.5 137.2 Other 35.3 32.5 Total revenue $ 554.7 $ 424.0 Revenue for the Company recognized at a point in time versus over time is as follows (dollars in millions): Three Months Ended 2021 2020 Revenue recognized at a point in time $ 480.0 $ 367.7 Revenue recognized over time 74.7 56.3 Total revenue $ 554.7 $ 424.0 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 March 31, 2021, remaining performance obligations were approximately $1,940.3 million. The Company expects to recognize revenue on approximately 65.7% of the remaining performance obligations over the next twelve months and the remaining performance obligations primarily within 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 | 3 Months Ended |
Mar. 31, 2021 | |
Acquisitions | |
Acquisitions | 4. Acquisitions The impact of all acquisitions and investments in other entities during the three months ended March 31, 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 In the three months ended March 31, 2021, the Company made investments in businesses complementary to its own portfolio Name Acquisition / Date Acquired Segment Consideration Cash Consideration 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 Acuity Spatial Genomics, Inc. Investment February 24, 2021 BSI Nano 4.5 4.5 $ 8.5 $ 8.5 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventories | |
Inventories | 5. Inventories Inventories consisted of the following (dollars in millions): March 31, December 31, Raw materials $ 197.1 $ 198.8 Work-in-process 253.2 245.7 Finished goods 157.0 152.1 Demonstration units 93.4 95.7 Inventories $ 700.7 $ 692.3 Finished goods include in-transit inventory-in-transit |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill The following table sets forth the changes in the carrying amount of goodwill (dollars in millions): Total Balance at December 31, 2020 $ 320.4 Current period additions/adjustments (0.3 ) Foreign currency impact (6.8 ) Balance at March 31, 2021 $ 313.3 Intangible Assets The following is a summary of intangible assets, excluding goodwill (dollars in millions): March 31, 2021 December 31, 2020 Gross Accumulated Net Carrying Gross Accumulated Net Carrying Existing technology and related patents $ 299.0 $ (192.3 ) $ 106.7 $ 309.8 $ (194.6 ) $ 115.2 Customer relationships 144.4 (48.0 ) 96.4 148.3 (45.4 ) 102.9 Trade names 14.8 (4.7 ) 10.1 15.2 (4.4 ) 10.8 Other 0.3 (0.1 ) 0.2 0.3 (0.1 ) 0.2 Intangible assets $ 458.5 $ (245.1 ) $ 213.4 $ 473.6 $ (244.5 ) $ 229.1 For the three months ended March 31, 2021 and 2020, the Company recorded amortization expense of $8.9 million and $8.7 million, respectively, related to intangible assets subject to amortization. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt | |
Debt | 7. Debt The Company’s debt obligations consisted of the following (dollars in millions): March 31, 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 314.8 335.5 US Dollar notes under the 2019 Term Loan 300.0 300.0 Unamortized debt issuance costs (2.3 ) (2.4 ) Capital lease obligations and other loans 6.7 6.4 Total debt 824.2 844.5 Current portion of long-term debt (108.4 ) (2.2 ) Total long-term debt, less current portion $ 715.8 $ 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 March 31, 2021 (in millions): Weighted Average Interest Rate Total Amount Committed by Lenders Outstanding Borrowings Outstanding Letters of Credit Total Amounts 2019 Credit Agreement 1.3 % $ 600.0 $ — $ 0.2 $ 599.8 Bank guarantees and working capital line 0.0 % 120.2 — 120.2 — Total revolving lines of credit $ 720.2 $ — $ 120.4 $ 599.8 As of March 31, 2021, the Company was in compliance with the financial covenants of all debt agreements. As of March 31, 2021, the Company ha d s gains of |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 8. Fair Value of Financial Instruments Th e March 31, 2021 Total Quoted Prices Significant Significant Assets: Time deposits and money market funds $ 151.1 $ — $ 151.1 $ — Short-term investments 50.0 — 50.0 — Interest rate and cross currency swap agreements 7.1 — 7.1 — Forward currency contracts 0.1 — 0.1 — Fixed price commodity contracts 3.8 — 3.8 — Debt securities available for sale 1.2 — — 1.2 Total assets recorded at fair value $ 213.3 $ — $ 212.1 $ 1.2 Liabilities: Contingent consideration $ 3.3 $ — $ — $ 3.3 Hybrid instrument liability 13.8 — — 13.8 Interest rate and cross currency swap agreements 33.3 — 33.3 — Embedded derivatives in purchase and delivery contracts 0.3 — 0.3 — Forward currency contracts 1.3 — 1.3 — Total liabilities recorded at fair value $ 52.0 $ — $ 34.9 $ 17.1 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 — Total liabilities recorded at fair value $ 80.1 $ — $ 61.9 $ 18.2 The Company’s financial instruments consist primarily of cash equivalents, short-term investments, restricted cash, derivative instruments consisting of forward currency 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 three months ended March 31, 2021 or 2020. The fair value of the long-term fixed interest rate debt, which has been classified as Level 2, was $527.7 million and $549.8 million at March 31, 2021 and December 31, 2020, respectively, based on market and observable sources with similar maturity dates. The carrying value of our variable rate debt approximates its fair value at March 31, 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 three months ended March 31, 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 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 adjustments (0.5 ) Current period settlements (0.4 ) Foreign currency effect (0.1 ) Balance at March 31, 2021 $ 3.3 As part of the 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 0.4 Foreign currency effect (0.5 ) Balance at March 31, 2021 $ 13.8 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | 9. Derivative Instruments and Hedging Activities Commodity Price Risk Management At March 31, 2021 and December 31, 2020, the Company had fixed price commodity contracts with notional amounts aggregating $5.8 million and $8.8 million, respectively. As commodity contracts settle, gains (losses) as a result of changes in fair values are adjusted to the contracts with the customers through revenues. Foreign Exchange Rate Risk Management The Company had the following notional amounts outstanding under foreign exchange contracts and cross-currency interest rate swap agreements (in millions): March 31, 2021 December 31, 2020 Notional Fair Value Notional Fair Value Forward Currency Contracts (1): Assets $ 10.0 $ 0.1 $ 175.8 $ 2.1 Liabilities 121.3 (1.3 ) 102.5 (0.4 ) Cross-Currency and Interest Rate Swap Agreements (2): Liabilities 505.0 (26.2 ) 505.0 (53.9 ) $ 636.3 $ (27.4 ) $ 783.3 $ (52.2 ) (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 se The derivative instruments described above are recorded in the unaudited condensed consolidated balance sheets as follows (dollars in millions): March 31, 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 (9.3 ) (4.3 ) Other long-term liabilities (24.0 ) (57.2 ) Total derivatives designated as hedging instruments (26.2 ) (53.9 ) Derivatives not designated as hedging instruments Forward currency contracts Other current assets $ 0.1 $ 2.1 Other current liabilities (1.3 ) (0.4 ) Embedded derivatives in purchase and delivery contracts Other current assets — 0.1 Other current liabilities (0.3 ) — Fixed price commodity contracts Other current assets 3.8 3.1 Total derivatives not designated as hedging instruments 2.3 4.9 Total derivatives $ (23.9 ) $ (49.0 ) The following is a summary of the activity included in the unaudited condensed consolidated statements of income and comprehensive income loss related to the derivative instruments described above (in millions): Three Months Ended March 31, Financial Statement Classification 2021 2020 Derivatives not designated as hedging instruments Forward currency contracts Interest and other income (expense), net $ (5.0 ) $ (0.5 ) Embedded derivatives in purchase and delivery contracts Interest and other income (expense), net (0.4 ) 0.6 $ (5.4 ) $ 0.1 Derivatives designated as Cash Flow hedging instruments Interest rate cross-currency swap agreements Interest incurred Interest and other income (expense), net $ (1.1 ) $ — Unrealized gains (losses) on contracts Accumulated other comprehensive income 9.9 (19.0 ) $ 8.8 $ (19.0 ) Derivatives designated as Net Investment hedging instruments Interest rate cross-currency swap agreements Interest earned Interest and other income (expense), net $ 2.5 $ 2.6 Unrealized gains on contracts Accumulated other comprehensive income 17.8 29.9 $ 20.3 $ 32.5 |
Provision for Income Taxes
Provision for Income Taxes | 3 Months Ended |
Mar. 31, 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 are expected to be reflected in the tax return. The Company records a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. In addition, the Company accounts for uncertain tax positions that have reached a minimum recognition threshold. The income tax provision for the three months ended March 31, 2021 and 2020 was $27.5 million and $2.9 million, respectively, representing effective tax rates of 32.2% and 21.5%, respectively. The Company’s effective tax rate may change over time as the amount or mix of income and taxes changes among the jurisdictions in which the Company is subject to tax. The increase in our effective tax rate was primarily due to the jurisdictional mix and the impact of unfavorable discrete items in the period. As of March 31, 2021 and December 31, 2020, the Company had gross unrecognized tax benefits, excluding penalties and interest, of approximately $24.3 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 March 31, 2021 and December 31, 2020, approximately $1.9 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. 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 5.1% from the U.S. statutory rate of 21.0% in the three months ended March 31, 2021. On March 27, 2020 the House passed the Coronavirus Aid, Relief, and Economic Security Act (The CARES Act COVID-19 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 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 March 31, 2021 2020 Net income attributable to Bruker Corporation, as reported $ 56.7 $ 10.5 Weighted average shares outstanding: Weighted average shares outstanding-basic 151.8 154.2 Effect of dilutive securities: Stock options and restricted stock awards and units 1.4 1.2 153.2 155.4 Net income per common share attributable to Bruker Corporation shareholders: Basic $ 0.37 $ 0.07 Diluted $ 0.37 $ 0.07 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 2021 2020 Stock options — 0.1 Unvested restricted stock units — — |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 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 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 quarter ended March 31, 2021, the Company purchased a total of 530,729 shares at an aggregate cost of $32.8 million under the share repurchase plan. There were no purchases under the plan in the three months ended March 31, 2020. At March 31, 2021, $1.7 million remained available for future purchases under the plan. We completed the share purchase program in April 2021, after reaching the maximum cumulative spend. This share repurchase plan was set to expire on May 13, 2021. Accumulated Other Comprehensive Income (Loss) The following is a summary of comprehensive income (dollars in millions): Three Months Ended March 31, 2021 2020 Consolidated net income $ 57.8 $ 10.6 Foreign currency translation adjustments (19.5 ) (13.0 ) Pension liability adjustments, net of tax 3.3 14.5 Net comprehensive income 41.6 12.1 Less: Comprehensive income (loss) 0.9 (0.1 ) Less: Comprehensive income (loss) — (0.5 ) Comprehensive income attributable to Bruker Corporation $ 40.7 $ 12.7 The following is a summary of the components of accumulated other comprehensive income (loss), net of tax (dollars in millions): Foreign Pension Accumulated Income Balance at December 31, 2020 $ 49.4 $ (45.7 ) $ 3.7 Other comprehensive income (loss) before reclassifications (19.1 ) 2.6 (16.5 ) Realized loss on amounts reclassified from other comprehensive income (loss), net of tax — 0.7 0.7 Net current period other comprehensive income (loss) (19.1 ) 3.3 (15.8 ) Balance at March 31, 2021 $ 30.3 $ (42.4 ) $ (12.1 ) 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 March 31, 2021 2020 Costs of product revenue $ 0.5 $ 0.5 Selling, general and administrative 2.4 2.0 Research and development 0.5 0.5 Total stock-based compensation $ 3.4 $ 3.0 In addition to the awards above, the Company recorded stock-based compensation expense within other charges, net of $0.4 million and $0.3 million in the three months ended March 31, 2021 and 2020, respectively, related to the 2018 acquisition of Mestrelab Research, S.L. (Mestrelab). At March 31, 2021, the Company had $23.4 million of unrecognized compensation expense related to employees and directors’ unvested stock units and stock options that are expected to be recognized over a weighted average period of 2.3 years. |
Other Charges, Net
Other Charges, Net | 3 Months Ended |
Mar. 31, 2021 | |
Other Charges (Gain), Net | |
Other Charges, Net | 13. Other Charges, Net Other Charges, Net The components of other charges, net were as follows (dollars in millions): Three Months Ended March 31, 2021 2020 Information technology transformation costs $ 0.7 $ 0.9 Professional fees incurred in connection with investigation matters 0.1 3.4 Restructuring charges 1.3 1.5 Acquisition-related charges 0.9 (1.1 ) Long-lived asset impairments — 1.2 Other — 0.3 Other charges, net $ 3.0 $ 6.2 Restructuring Initiatives Restructuring charges include charges for various programs that were recorded in the accompanying unaudited condensed consolidated statements of income and comprehensive income. The following table sets forth the restructuring charges (dollars in millions): Three Months Ended March 31, 2021 2020 Cost of revenues $ 1.1 $ 0.8 Other charges, net 1.3 1.5 $ 2.4 $ 2.3 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 2.4 2.2 0.2 — Cash payments (5.2 ) (4.7 ) (0.5 ) — Other, non-cash (0.1 ) — — (0.1 ) Balance at March 31, 2021 $ 6.9 $ 5.1 $ 0.5 $ 1.3 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 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 . On September 23, 2019, in a complaint filed in the Düsseldorf, Germany, District Court, Micromass UK Limited (Micromass), a subsidiary of Waters Corporation, sued Bruker Corporation, as well as its affiliate, Bruker Daltonik GmbH, for infringement of a European patent pertaining to our timsTOF product line. Bruker was later notified that Micromass had expanded its complaint in Düsseldorf to assert another recently granted European patent in Germany. On March 5, 2021, the parties entered into a Patent License Agreement pursuant to which Bruker licensed certain patents from Micromass and agreed to pay a one-time, upfront $ million payment in the second quarter of 2021 and agreed to pay royalties, subject to a quarterly minimum, on certain Tims TOF systems commencing March 1, 2022. In addition, pursuant to the Patent License Agreement, all claims between the parties in connection with this and other pending infringement matters were settled and dismissed with prejudice. The settlement of this matter did not and is not expected to materially impact the Company’s results of operations . As of March 31, 2021 and December 31, 2020, no material accruals have been recorded for potential contingencies. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 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 consolidated financial statements. Revenue and operating income by reportable segment are presented below (dollars in millions): Three Months Ended March 31, 2021 2020 Revenue: BSI Life Science $ 351.8 $ 261.4 BSI NANO 154.4 120.1 BEST 52.4 46.2 Eliminations (a) (3.9 ) (3.7 ) Total revenue $ 554.7 $ 424.0 Operating Income (loss) BSI Life Science $ 88.9 $ 39.5 BSI NANO 12.3 (8.0 ) BEST 4.1 1.7 Corporate, eliminations and other (b) (16.2 ) (16.8 ) Total operating income $ 89.1 $ 16.4 (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): March 31, December 31, Assets: BSI Life Science, BSI NANO & Corporate $ 2,947.8 $ 2,964.5 BEST 92.3 88.7 Eliminations and other (a) (5.2 ) (4.2 ) Total assets $ 3,034.9 $ 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) | 3 Months Ended |
Mar. 31, 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 2021 2020 Revenue by Group: Bruker BioSpin $ 159.4 $ 120.9 Bruker CALID 192.4 140.5 Bruker Nano 154.4 120.1 BEST 52.4 46.2 Eliminations (3.9 ) (3.7 ) Total revenue $ 554.7 $ 424.0 Three Months Ended 2021 2020 Revenue by End Customer Geography: United States $ 119.0 $ 109.4 Germany 70.1 40.9 Rest of Europe 149.8 104.0 Asia Pacific 180.5 137.2 Other 35.3 32.5 Total revenue $ 554.7 $ 424.0 Revenue for the Company recognized at a point in time versus over time is as follows (dollars in millions): Three Months Ended 2021 2020 Revenue recognized at a point in time $ 480.0 $ 367.7 Revenue recognized over time 74.7 56.3 Total revenue $ 554.7 $ 424.0 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 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 reporting segment for these investments (in millions): Name Acquisition / Date Acquired Segment Consideration Cash Consideration 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 Acuity Spatial Genomics, Inc. Investment February 24, 2021 BSI Nano 4.5 4.5 $ 8.5 $ 8.5 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventories | |
Schedule of inventories | Inventories consisted of the following (dollars in millions): March 31, December 31, Raw materials $ 197.1 $ 198.8 Work-in-process 253.2 245.7 Finished goods 157.0 152.1 Demonstration units 93.4 95.7 Inventories $ 700.7 $ 692.3 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 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 (0.3 ) Foreign currency impact (6.8 ) Balance at March 31, 2021 $ 313.3 |
Summary of intangible assets | The following is a summary of intangible assets, excluding goodwill (dollars in millions): March 31, 2021 December 31, 2020 Gross Accumulated Net Carrying Gross Accumulated Net Carrying Existing technology and related patents $ 299.0 $ (192.3 ) $ 106.7 $ 309.8 $ (194.6 ) $ 115.2 Customer relationships 144.4 (48.0 ) 96.4 148.3 (45.4 ) 102.9 Trade names 14.8 (4.7 ) 10.1 15.2 (4.4 ) 10.8 Other 0.3 (0.1 ) 0.2 0.3 (0.1 ) 0.2 Intangible assets $ 458.5 $ (245.1 ) $ 213.4 $ 473.6 $ (244.5 ) $ 229.1 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt | |
Components of debt obligations | The Company’s debt obligations consisted of the following (dollars in millions): March 31, 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 314.8 335.5 US Dollar notes under the 2019 Term Loan 300.0 300.0 Unamortized debt issuance costs (2.3 ) (2.4 ) Capital lease obligations and other loans 6.7 6.4 Total debt 824.2 844.5 Current portion of long-term debt (108.4 ) (2.2 ) Total long-term debt, less current portion $ 715.8 $ 842.3 |
Summary of maximum commitments and net amounts available under the 2015 Credit Agreement and other lines of credit | The following is a summary of the maximum commitments and the net amounts available to the Company under 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 March 31, 2021 (in millions): Weighted Average Interest Rate Total Amount Committed by Lenders Outstanding Borrowings Outstanding Letters of Credit Total Amounts 2019 Credit Agreement 1.3 % $ 600.0 $ — $ 0.2 $ 599.8 Bank guarantees and working capital line 0.0 % 120.2 — 120.2 — Total revolving lines of credit $ 720.2 $ — $ 120.4 $ 599.8 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value of Financial Instruments | |
Schedule of financial instruments measured at fair value on a recurring basis | Th e March 31, 2021 Total Quoted Prices Significant Significant Assets: Time deposits and money market funds $ 151.1 $ — $ 151.1 $ — Short-term investments 50.0 — 50.0 — Interest rate and cross currency swap agreements 7.1 — 7.1 — Forward currency contracts 0.1 — 0.1 — Fixed price commodity contracts 3.8 — 3.8 — Debt securities available for sale 1.2 — — 1.2 Total assets recorded at fair value $ 213.3 $ — $ 212.1 $ 1.2 Liabilities: Contingent consideration $ 3.3 $ — $ — $ 3.3 Hybrid instrument liability 13.8 — — 13.8 Interest rate and cross currency swap agreements 33.3 — 33.3 — Embedded derivatives in purchase and delivery contracts 0.3 — 0.3 — Forward currency contracts 1.3 — 1.3 — Total liabilities recorded at fair value $ 52.0 $ — $ 34.9 $ 17.1 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 — Total liabilities recorded at fair value $ 80.1 $ — $ 61.9 $ 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 adjustments (0.5 ) Current period settlements (0.4 ) Foreign currency effect (0.1 ) Balance at March 31, 2021 $ 3.3 |
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 0.4 Foreign currency effect (0.5 ) Balance at March 31, 2021 $ 13.8 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities | |
Schedule of notional amounts outstanding under foreign currency contracts | The Company had the following notional amounts outstanding under foreign exchange contracts and cross-currency interest rate swap agreements (in millions): March 31, 2021 December 31, 2020 Notional Fair Value Notional Fair Value Forward Currency Contracts (1): Assets $ 10.0 $ 0.1 $ 175.8 $ 2.1 Liabilities 121.3 (1.3 ) 102.5 (0.4 ) Cross-Currency and Interest Rate Swap Agreements (2): Liabilities 505.0 (26.2 ) 505.0 (53.9 ) $ 636.3 $ (27.4 ) $ 783.3 $ (52.2 ) (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 as follows (dollars in millions): March 31, 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 (9.3 ) (4.3 ) Other long-term liabilities (24.0 ) (57.2 ) Total derivatives designated as hedging instruments (26.2 ) (53.9 ) Derivatives not designated as hedging instruments Forward currency contracts Other current assets $ 0.1 $ 2.1 Other current liabilities (1.3 ) (0.4 ) Embedded derivatives in purchase and delivery contracts Other current assets — 0.1 Other current liabilities (0.3 ) — Fixed price commodity contracts Other current assets 3.8 3.1 Total derivatives not designated as hedging instruments 2.3 4.9 Total derivatives $ (23.9 ) $ (49.0 ) |
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 loss related to the derivative instruments described above (in millions): Three Months Ended March 31, Financial Statement Classification 2021 2020 Derivatives not designated as hedging instruments Forward currency contracts Interest and other income (expense), net $ (5.0 ) $ (0.5 ) Embedded derivatives in purchase and delivery contracts Interest and other income (expense), net (0.4 ) 0.6 $ (5.4 ) $ 0.1 Derivatives designated as Cash Flow hedging instruments Interest rate cross-currency swap agreements Interest incurred Interest and other income (expense), net $ (1.1 ) $ — Unrealized gains (losses) on contracts Accumulated other comprehensive income 9.9 (19.0 ) $ 8.8 $ (19.0 ) Derivatives designated as Net Investment hedging instruments Interest rate cross-currency swap agreements Interest earned Interest and other income (expense), net $ 2.5 $ 2.6 Unrealized gains on contracts Accumulated other comprehensive income 17.8 29.9 $ 20.3 $ 32.5 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share | |
Computation of basic and diluted weighted average shares outstanding and net income per common share | Three Months Ended March 31, 2021 2020 Net income attributable to Bruker Corporation, as reported $ 56.7 $ 10.5 Weighted average shares outstanding: Weighted average shares outstanding-basic 151.8 154.2 Effect of dilutive securities: Stock options and restricted stock awards and units 1.4 1.2 153.2 155.4 Net income per common share attributable to Bruker Corporation shareholders: Basic $ 0.37 $ 0.07 Diluted $ 0.37 $ 0.07 |
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 2021 2020 Stock options — 0.1 Unvested restricted stock units — — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Shareholders' Equity | |
Summary of comprehensive income (loss) | Three Months Ended March 31, 2021 2020 Consolidated net income $ 57.8 $ 10.6 Foreign currency translation adjustments (19.5 ) (13.0 ) Pension liability adjustments, net of tax 3.3 14.5 Net comprehensive income 41.6 12.1 Less: Comprehensive income (loss) 0.9 (0.1 ) Less: Comprehensive income (loss) — (0.5 ) Comprehensive income attributable to Bruker Corporation $ 40.7 $ 12.7 |
Summary of the components of accumulated other comprehensive income (loss), net of tax | The following is a summary of the components of accumulated other comprehensive income (loss), net of tax (dollars in millions): Foreign Pension Accumulated Income Balance at December 31, 2020 $ 49.4 $ (45.7 ) $ 3.7 Other comprehensive income (loss) before reclassifications (19.1 ) 2.6 (16.5 ) Realized loss on amounts reclassified from other comprehensive income (loss), net of tax — 0.7 0.7 Net current period other comprehensive income (loss) (19.1 ) 3.3 (15.8 ) Balance at March 31, 2021 $ 30.3 $ (42.4 ) $ (12.1 ) |
Schedule of the impact of stock-based compensation expense | The Company recorded stock-based compensation expense as follows in the unaudited condensed consolidated statements of income and comprehensive income (dollars in millions): Three Months Ended March 31, 2021 2020 Costs of product revenue $ 0.5 $ 0.5 Selling, general and administrative 2.4 2.0 Research and development 0.5 0.5 Total stock-based compensation $ 3.4 $ 3.0 |
Other Charges, Net (Tables)
Other Charges, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Charges, Net | |
Schedule of components of other charges, net | The components of other charges, net were as follows (dollars in millions): Three Months Ended March 31, 2021 2020 Information technology transformation costs $ 0.7 $ 0.9 Professional fees incurred in connection with investigation matters 0.1 3.4 Restructuring charges 1.3 1.5 Acquisition-related charges 0.9 (1.1 ) Long-lived asset impairments — 1.2 Other — 0.3 Other charges, net $ 3.0 $ 6.2 |
Summary of restructuring charges | Restructuring charges include charges for various programs that were recorded in the accompanying unaudited condensed consolidated statements of income and comprehensive income. The following table sets forth the restructuring charges (dollars in millions): Three Months Ended March 31, 2021 2020 Cost of revenues $ 1.1 $ 0.8 Other charges, net 1.3 1.5 $ 2.4 $ 2.3 |
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 2.4 2.2 0.2 — Cash payments (5.2 ) (4.7 ) (0.5 ) — Other, non-cash (0.1 ) — — (0.1 ) Balance at March 31, 2021 $ 6.9 $ 5.1 $ 0.5 $ 1.3 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 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 March 31, 2021 2020 Revenue: BSI Life Science $ 351.8 $ 261.4 BSI NANO 154.4 120.1 BEST 52.4 46.2 Eliminations (a) (3.9 ) (3.7 ) Total revenue $ 554.7 $ 424.0 Operating Income (loss) BSI Life Science $ 88.9 $ 39.5 BSI NANO 12.3 (8.0 ) BEST 4.1 1.7 Corporate, eliminations and other (b) (16.2 ) (16.8 ) Total operating income $ 89.1 $ 16.4 (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): March 31, December 31, Assets: BSI Life Science, BSI NANO & Corporate $ 2,947.8 $ 2,964.5 BEST 92.3 88.7 Eliminations and other (a) (5.2 ) (4.2 ) Total assets $ 3,034.9 $ 3,049.0 (a) Assets not allocated to the reportable segments and eliminations of intercompany transactions. |
Description of Business (Detail
Description of Business (Details) | 3 Months Ended |
Mar. 31, 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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues disaggregated by Group | ||
Total revenue | $ 554.7 | $ 424 |
Revenue recognized at a point in time | ||
Revenues disaggregated by Group | ||
Total revenue | 480 | 367.7 |
Revenue recognized over time | ||
Revenues disaggregated by Group | ||
Total revenue | 74.7 | 56.3 |
United States | ||
Revenues disaggregated by Group | ||
Total revenue | 119 | 109.4 |
Germany | ||
Revenues disaggregated by Group | ||
Total revenue | 70.1 | 40.9 |
Rest of Europe | ||
Revenues disaggregated by Group | ||
Total revenue | 149.8 | 104 |
Asia Pacific | ||
Revenues disaggregated by Group | ||
Total revenue | 180.5 | 137.2 |
Other | ||
Revenues disaggregated by Group | ||
Total revenue | 35.3 | 32.5 |
Bruker BioSpin | ||
Revenues disaggregated by Group | ||
Total revenue | 159.4 | 120.9 |
Bruker CALID | ||
Revenues disaggregated by Group | ||
Total revenue | 192.4 | 140.5 |
Bruker Nano | ||
Revenues disaggregated by Group | ||
Total revenue | 154.4 | 120.1 |
BEST | ||
Revenues disaggregated by Group | ||
Total revenue | 52.4 | 46.2 |
Eliminations | ||
Revenues disaggregated by Group | ||
Total revenue | $ (3.9) | $ (3.7) |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) $ in Millions | Mar. 31, 2021USD ($) |
Remaining Performance Obligations | |
Amount of remaining performance obligations | $ 1,940.3 |
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) | 65.70% |
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 | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Revenue | ||
Contract assets | $ 48.8 | $ 41.8 |
Contract liabilities | 407.5 | $ 399.4 |
Revenue recognition during the period | $ 121.4 |
Acquisitions - Consideration tr
Acquisitions - Consideration transferred and reportable segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Business Acquisition [Line Items] | ||
Cash Consideration | $ 4 | $ 22 |
2021 Acquisitions | ||
Business Acquisition [Line Items] | ||
Consideration | 8.5 | |
Cash Consideration | 8.5 | |
Glycopath Inc. | BSI Life Science | ||
Business Acquisition [Line Items] | ||
Consideration | 2 | |
Cash Consideration | 2 | |
IonPath Inc | BSI Life Science | ||
Business Acquisition [Line Items] | ||
Consideration | 2 | |
Cash Consideration | 2 | |
Acuity Spatial Genomics, Inc. | BSI NANO | ||
Business Acquisition [Line Items] | ||
Consideration | 4.5 | |
Cash Consideration | $ 4.5 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Inventories | ||
Raw materials | $ 197.1 | $ 198.8 |
Work-in-process | 253.2 | 245.7 |
Finished goods | 157 | 152.1 |
Demonstration units | 93.4 | 95.7 |
Inventories | 700.7 | 692.3 |
Inventory-in-transit | $ 59.6 | $ 67.8 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill | |
Balance at the beginning of the period | $ 320.4 |
Current period additions/adjustments | (0.3) |
Foreign currency impact | (6.8) |
Balance at the end of the period | $ 313.3 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Intangible assets | |||
Gross Carrying Amount, intangible assets subject to amortization | $ 458.5 | $ 473.6 | |
Accumulated Amortization, intangible assets subject to amortization | (245.1) | (244.5) | |
Net Carrying Amount, intangible assets subject to amortization | 213.4 | 229.1 | |
Amortization expense related to intangible assets subject to amortization | 8.9 | $ 8.7 | |
Technology | |||
Intangible assets | |||
Gross Carrying Amount, intangible assets subject to amortization | 299 | 309.8 | |
Accumulated Amortization, intangible assets subject to amortization | (192.3) | (194.6) | |
Net Carrying Amount, intangible assets subject to amortization | 106.7 | 115.2 | |
Customer relationships | |||
Intangible assets | |||
Gross Carrying Amount, intangible assets subject to amortization | 144.4 | 148.3 | |
Accumulated Amortization, intangible assets subject to amortization | (48) | (45.4) | |
Net Carrying Amount, intangible assets subject to amortization | 96.4 | 102.9 | |
Trade name | |||
Intangible assets | |||
Gross Carrying Amount, intangible assets subject to amortization | 14.8 | 15.2 | |
Accumulated Amortization, intangible assets subject to amortization | (4.7) | (4.4) | |
Net Carrying Amount, intangible assets subject to amortization | 10.1 | 10.8 | |
Other | |||
Intangible assets | |||
Gross Carrying Amount, intangible assets subject to amortization | 0.3 | 0.3 | |
Accumulated Amortization, intangible assets subject to amortization | (0.1) | (0.1) | |
Net Carrying Amount, intangible assets subject to amortization | $ 0.2 | $ 0.2 |
Debt - Components (Details)
Debt - Components (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt | ||
Unamortized debt issuance costs | $ (2.3) | $ (2.4) |
Total debt | 824.2 | 844.5 |
Current portion of long-term debt | (108.4) | (2.2) |
Total long-term debt, less current portion | 715.8 | 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 | 314.8 | 335.5 |
2019 Term Loan | ||
Debt | ||
Debt, before unamortized debt issuance costs | 300 | 300 |
Capital lease obligations and other loans | ||
Debt | ||
Total debt | $ 6.7 | $ 6.4 |
Debt - Revolving Loan Arrangeme
Debt - Revolving Loan Arrangements (Details) $ in Millions | Mar. 31, 2021USD ($) |
Revolving lines of credit | |
Total Amount Committed by Lenders | $ 720.2 |
Outstanding Letters of Credit | 120.4 |
Total Committed Amount Available | $ 599.8 |
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 | 0.2 |
Total Committed Amount Available | $ 599.8 |
Bank guarantees and working capital line | |
Revolving lines of credit | |
Weighted Average Interest Rate (as a percent) | 0.00% |
Total Amount Committed by Lenders | $ 120.2 |
Outstanding Letters of Credit | $ 120.2 |
Debt - Currency Swaps (Details)
Debt - Currency Swaps (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt | ||
Reduction of interest expense by cross-currency and interest swap agreements | $ 1.4 | $ 2.6 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 27.7 | $ 10.9 |
US to Swiss Franc | ||
Debt | ||
Notional Amount | 150 | |
US to Euro | ||
Debt | ||
Notional Amount | $ 355 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Hierarchy (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Significant Other Observable Inputs (Level 2) | ||
Liabilities: | ||
Fair value of long-term fixed interest rate debt | $ 527.7 | $ 549.8 |
Recurring basis | ||
Assets: | ||
Time deposits and money market funds | 151.1 | 183.2 |
Short-term investments | 50 | 50 |
Interest rate and cross currency swap agreements | 7.1 | 7.6 |
Forward currency contracts | 0.1 | 2.1 |
Embedded derivatives in purchase and delivery contracts | 0.1 | |
Fixed price commodity contracts | 3.8 | 3.1 |
Debt securities available for sale | 1.2 | 1.2 |
Total assets recorded at fair value | 213.3 | 247.3 |
Liabilities: | ||
Contingent consideration | 3.3 | 4.3 |
Hybrid instrument liability | 13.8 | 13.9 |
Interest rate and cross currency swap agreements | 33.3 | 61.5 |
Embedded derivatives in purchase and delivery contracts | 0.3 | |
Forward currency contracts | 1.3 | 0.4 |
Total liabilities recorded at fair value | 52 | 80.1 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Time deposits and money market funds | 151.1 | 183.2 |
Short-term investments | 50 | 50 |
Interest rate and cross currency swap agreements | 7.1 | 7.6 |
Forward currency contracts | 0.1 | 2.1 |
Embedded derivatives in purchase and delivery contracts | 0.1 | |
Fixed price commodity contracts | 3.8 | 3.1 |
Total assets recorded at fair value | 212.1 | 246.1 |
Liabilities: | ||
Interest rate and cross currency swap agreements | 33.3 | 61.5 |
Embedded derivatives in purchase and delivery contracts | 0.3 | |
Forward currency contracts | 1.3 | 0.4 |
Total liabilities recorded at fair value | 34.9 | 61.9 |
Recurring basis | 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 | 3.3 | 4.3 |
Hybrid instrument liability | 13.8 | 13.9 |
Total liabilities recorded at fair value | $ 17.1 | $ 18.2 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Contingent Consideration and Hybrid Instrument Liability (Details) $ in Millions | 3 Months Ended |
Mar. 31, 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 adjustments | (0.5) |
Current period settlements | (0.4) |
Foreign currency effect | (0.1) |
Balance at March 31, 2021 | 3.3 |
Hybrid instrument | |
Changes in contingent consideration liabilities | |
Balance at December 31, 2020 | 13.9 |
Current period adjustments | 0.4 |
Foreign currency effect | (0.5) |
Balance at March 31, 2021 | $ 13.8 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Risk Management (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative instruments and hedging activities | ||
Fair value, net asset (liability) | $ (23.9) | $ (49) |
Embedded derivatives in purchase and delivery contracts | ||
Embedded derivatives in purchase and delivery contracts | ||
Notional amount of derivative sale contracts | 6.1 | 7.5 |
Notional amount of derivative purchase contracts | 4.3 | 4.8 |
Forward currency and swap agreements | ||
Derivative instruments and hedging activities | ||
Notional Amount | 636.3 | 783.3 |
Fair value, net asset (liability) | (27.4) | (52.2) |
Forward currency contract | ||
Derivative instruments and hedging activities | ||
Notional amount, assets | 10 | 175.8 |
Notional amount, liabilities | 121.3 | 102.5 |
Not designated as accounting hedges | ||
Assets | 0.1 | 2.1 |
Liabilities | (1.3) | (0.4) |
Fixed price commodity contracts | ||
Derivative instruments and hedging activities | ||
Notional Amount | 5.8 | 8.8 |
Interest rate cross-currency swap agreements | ||
Derivative instruments and hedging activities | ||
Notional amount, liabilities | 505 | 505 |
Designated as accounting hedges | ||
Liabilities | $ (26.2) | $ (53.9) |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative instruments and hedging activities | ||
Derivative Assets (Liabilities) | $ (23.9) | $ (49) |
Forward currency and swap agreements | ||
Derivative instruments and hedging activities | ||
Derivative Assets (Liabilities) | (27.4) | (52.2) |
Embedded derivatives in purchase and delivery contracts | Other current liabilities | ||
Derivative instruments and hedging activities | ||
Derivative Liability | (0.3) | |
Designated as hedging instrument | ||
Derivative instruments and hedging activities | ||
Derivative Assets (Liabilities) | (26.2) | (53.9) |
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 | (9.3) | (4.3) |
Designated as hedging instrument | Other long-term liabilities | ||
Derivative instruments and hedging activities | ||
Derivative Liability | (24) | (57.2) |
Not designated as hedging instruments | ||
Derivative instruments and hedging activities | ||
Derivative Assets (Liabilities) | 2.3 | 4.9 |
Not designated as hedging instruments | Forward currency contract | Other current assets | ||
Derivative instruments and hedging activities | ||
Derivative Asset | 0.1 | 2.1 |
Not designated as hedging instruments | Forward currency contract | Other current liabilities | ||
Derivative instruments and hedging activities | ||
Derivative Liability | (1.3) | (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 | $ 3.8 | $ 3.1 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Not designated as hedging instruments | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | $ (5.4) | $ 0.1 |
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 | (5) | (0.5) |
Not designated as hedging instruments | Interest and other income (expense), net | Embedded derivatives in purchase and delivery contracts | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | (0.4) | 0.6 |
Designated as hedging instrument | Cash Flow Hedging | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | 8.8 | (19) |
Designated as hedging instrument | Cash Flow Hedging | Accumulated other comprehensive income | Interest rate and cross currency swap agreements | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | 9.9 | (19) |
Designated as hedging instrument | Cash Flow Hedging | Interest and other income (expense), net | Interest rate and cross currency swap agreements | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | (1.1) | |
Designated as hedging instrument | Net Investment Hedging | ||
Derivative instruments and hedging activities | ||
Impact on net income of unrealized gains and losses | 20.3 | 32.5 |
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 | 17.8 | 29.9 |
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 | $ 2.5 | $ 2.6 |
Provision for Income Taxes (Det
Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Provision for Income Taxes | |||
Income tax expense (benefit) | $ 27.5 | $ 2.9 | |
Effective tax rates (as a percent) | 32.20% | 21.50% | |
Unrecognized tax benefits, excluding penalties and interest | $ 24.3 | $ 22.7 | |
Accrued interest and penalties related to uncertain tax positions | $ 1.9 | $ 1.8 | |
Statutory tax rate (as a percent) | 21.00% | ||
Change in tax rate - foreign jurisdictions (as a percent) | 5.10% | ||
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share | ||
Net income attributable to Bruker Corporation, as reported | $ 56.7 | $ 10.5 |
Weighted average shares outstanding: | ||
Weighted average shares outstanding-basic | 151.8 | 154.2 |
Effect of dilutive securities: | ||
Stock options and restricted stock awards and units (in shares) | 1.4 | 1.2 |
Weighted-average number of common shares used in computing diluted net income per common share | 153.2 | 155.4 |
Net income per common share attributable to Bruker Corporation shareholders: | ||
Basic (in dollars per share) | $ 0.37 | $ 0.07 |
Diluted (in dollars per share) | $ 0.37 | $ 0.07 |
Earnings Per Share - Anti-dilut
Earnings Per Share - Anti-dilutive Stock Options (Details) shares in Millions | 3 Months Ended |
Mar. 31, 2020shares | |
Stock options | |
Anti-dilutive securities | |
Number of shares excluded from the computation of diluted earnings per share | 0.1 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchase and Dividends (Details) - May 2019 Repurchase Program - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | May 03, 2021 | May 31, 2019 | |
Shareholders' Equity | |||
Amount approved for repurchase of common stock | $ 300 | ||
Common stock repurchased during the period (in shares) | 530,729 | ||
Aggregate cost of common stock repurchased during the period | $ 32.8 | ||
Subsequent Event [member] | |||
Shareholders' Equity | |||
Remaining authorization amount for repurchase of common stock | $ 1.7 |
Shareholders' Equity - Comprehe
Shareholders' Equity - Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Summary of comprehensive income (loss) | ||
Consolidated net income | $ 57.8 | $ 10.6 |
Foreign currency translation adjustments | (19.5) | (13) |
Pension liability adjustments, net of tax | 3.3 | 14.5 |
Net comprehensive income | 41.6 | 12.1 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0.9 | (0.1) |
Less: Comprehensive income (loss) attributable to redeemable noncontrolling interest | (0.5) | |
Comprehensive income attributable to Bruker Corporation | $ 40.7 | $ 12.7 |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 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 | 981.7 |
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 income (loss) before reclassifications | (16.5) |
Realized loss on amounts reclassified from other comprehensive income (loss), net of tax | 0.7 |
Net current period other comprehensive income (loss) | (15.8) |
Balance at end of period | (12.1) |
Foreign Currency Translation | |
Summary of the components of accumulated other comprehensive income, net of tax | |
Balance at beginning of period | 49.4 |
Other comprehensive income (loss) before reclassifications | (19.1) |
Net current period other comprehensive income (loss) | (19.1) |
Balance at end of period | 30.3 |
Pension Liability Adjustment | |
Summary of the components of accumulated other comprehensive income, net of tax | |
Balance at beginning of period | (45.7) |
Other comprehensive income (loss) before reclassifications | 2.6 |
Realized loss on amounts reclassified from other comprehensive income (loss), net of tax | 0.7 |
Net current period other comprehensive income (loss) | 3.3 |
Balance at end of period | $ (42.4) |
Shareholders' Equity - Expense
Shareholders' Equity - Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 3.4 | $ 3 |
Additional information | ||
Expected pre-tax stock-based compensation expense | $ 23.4 | |
Weighted average remaining service period | 2 years 3 months 18 days | |
Cost of revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 0.5 | 0.5 |
Selling, general and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 2.4 | 2 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 0.5 | 0.5 |
Mestrelab | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 0.4 | $ 0.3 |
Other Charges, Net - Components
Other Charges, Net - Components of other charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Charges (Gain), Net | ||
Information technology transformation costs | $ 0.7 | $ 0.9 |
Professional fees incurred in connection with investigation matters | 0.1 | 3.4 |
Restructuring charges | 1.3 | 1.5 |
Acquisition-related charges | 0.9 | (1.1) |
Long-lived asset impairments | 1.2 | |
Other | 0.3 | |
Other charges, net | $ 3 | $ 6.2 |
Other Charges, Net - Restructur
Other Charges, Net - Restructuring Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring charges | ||
Restructuring expenses | $ 2.4 | $ 2.3 |
Cost of revenues | ||
Restructuring charges | ||
Restructuring expenses | 1.1 | 0.8 |
Other charges, net | ||
Restructuring charges | ||
Restructuring expenses | $ 1.3 | $ 1.5 |
Other Charges, Net - Restruct_2
Other Charges, Net - Restructuring Reserves (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Changes in the restructuring reserves | ||
Balance at the beginning of the period | $ 9.8 | |
Restructuring charges | 2.4 | $ 2.3 |
Cash payments | (5.2) | |
Other, non-cash adjustments and foreign currency effect | (0.1) | |
Balance at the end of the period | 6.9 | |
Severance | ||
Changes in the restructuring reserves | ||
Balance at the beginning of the period | 7.6 | |
Restructuring charges | 2.2 | |
Cash payments | (4.7) | |
Balance at the end of the period | 5.1 | |
Exit Costs | ||
Changes in the restructuring reserves | ||
Balance at the beginning of the period | 0.8 | |
Restructuring charges | 0.2 | |
Cash payments | (0.5) | |
Balance at the end of the period | 0.5 | |
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 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 05, 2021USD ($) |
Letters of Credit and Guarantees | |
Upfront payment | $ 4 |
Business Segment Information (D
Business Segment Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Business segment information | |||
Number of reportable segments | segment | 3 | ||
Total revenue | $ 554.7 | $ 424 | |
Operating Income (loss) | 89.1 | 16.4 | |
Assets | 3,034.9 | $ 3,049 | |
Eliminations | |||
Business segment information | |||
Total revenue | (3.9) | (3.7) | |
Corporate, eliminations and other | |||
Business segment information | |||
Operating Income (loss) | (16.2) | (16.8) | |
Assets | (5.2) | (4.2) | |
BSI Life Science | Operating segments | |||
Business segment information | |||
Total revenue | 351.8 | 261.4 | |
Operating Income (loss) | 88.9 | 39.5 | |
Assets | 2,947.8 | 2,964.5 | |
BSI NANO | Operating segments | |||
Business segment information | |||
Total revenue | 154.4 | 120.1 | |
Operating Income (loss) | 12.3 | (8) | |
BEST | |||
Business segment information | |||
Total revenue | 52.4 | 46.2 | |
BEST | Operating segments | |||
Business segment information | |||
Total revenue | 52.4 | 46.2 | |
Operating Income (loss) | 4.1 | $ 1.7 | |
Assets | $ 92.3 | $ 88.7 |