Post Retirement Benefit Plans

12 Months Ended

Dec. 31, 2024

Retirement Benefits [Abstract]

Post Retirement Benefit Plans

10. Post Retirement Benefit Plans

Defined Contribution Plans

The Company sponsors various defined contribution plans that cover certain domestic and international employees. The Company may make contributions to these plans at its discretion. The Company contributed $17.7 million, $13.7 million and $11.0 million to such plans during the years ended December 31, 2024, 2023 and 2022, respectively.

Defined Benefit Plans

Substantially all of the Company’s employees in Switzerland, France, Japan, and Thailand, as well as certain employees in Germany, and Italy, are covered by Company-sponsored defined benefit pension plans. Retirement benefits are generally earned based on years of service and compensation during active employment. Eligibility is generally determined in accordance with local statutory requirements; however, the level of benefits and terms of vesting varies among plans.

The following amounts were recognized in the accompanying consolidated balance sheets for the Company’s defined benefit plans (in millions):

	2024			2023
Current liabilities	$	(2.5	)	$	(2.1	)
Non-current liabilities		(103.0	)		(76.6	)
Net benefit obligation	$	(105.5	)	$	(78.7	)

The changes in benefit obligations and plan assets under the defined benefit pension plans, projected benefit obligation and funded status of the plans were as follows (in millions):

	2024			2023
Change in benefit obligation:
Benefit obligation at beginning of year	$	256.1		$	197.8
Service cost		7.1			5.5
Interest cost		4.4			5.2
Plan participant contributions		7.5			6.4
Plan amendments		12.6			(2.4	)
Plan settlements		(1.3	)		—
Benefits paid		(5.0	)		(6.8	)
Actuarial gain		11.6			27.5
Premiums paid		(2.5	)		(2.3	)
Plan combinations / acquisitions		24.1			6.1
Impact of foreign currency exchange rates		(20.0	)		19.1
Benefit obligation at end of year		294.6			256.1
Change in plan assets:
Fair value of plan assets at beginning of year	$	177.4		$	150.3
Return on plan assets		2.6			1.5
Plan participant and employer contributions		17.3			14.4
Benefits paid		(5.0	)		(6.8	)
Plan settlements		(1.3	)		—
Premiums paid		(2.5	)		(2.3	)
Plan combinations / acquisitions		14.4			4.8
Impact of foreign currency exchange rates		(13.8	)		15.5
Fair value of plan assets at end of year		189.1			177.4
Net under-funded status	$	(105.5	)	$	(78.7	)

Plan amendments relate to further reductions in the mandatory conversion rates for the pension plan in Switzerland that will be effective from 2026 onwards. The accumulated benefit obligation for the defined benefit pension plans is $270.2 million and $226.4 million at December 31, 2024 and 2023, respectively. All defined benefit pension plans have an accumulated benefit obligation and projected benefit obligation in excess of plan assets at December 31, 2024, and 2023.

The following pre-tax amounts were recognized in accumulated other comprehensive income for the Company’s defined benefit plans (in millions):

	2024			2023			2022
Reconciliation of amounts recognized in the consolidated balance sheets:
Prior service cost	$	0.2		$	14.6		$	12.0
Net actuarial gain (loss)		(38.9	)		(27.4	)		4.2
Accumulated other comprehensive gain (loss)		(38.7	)		(12.8	)		16.2
Accumulated contributions in excess of net periodic benefit cost		(66.8	)		(65.9	)		(63.7	)
Net amount recognized	$	(105.5	)	$	(78.7	)	$	(47.5	)

The amount in accumulated other comprehensive income at December 31, 2024, expected to be recognized as amortization of net loss within net periodic benefit cost in 2025 is $0.4 million.

The components of net periodic benefit costs included in the accompanying consolidated statements of income were as follows (in millions):

	2024			2023			2022
Components of net periodic benefit costs:
Service cost	$	7.1		$	5.5		$	6.5
Interest cost		4.4			5.2			1.0
Expected return on plan assets		(5.2	)		(4.4	)		(1.7	)
Settlement (gain) recognized		—			—			(0.3	)
Amortization of prior service (credit)		(0.8	)		(0.8	)		(0.2	)
Amortization of actuarial losses		0.3			0.1			2.2
Net periodic benefit costs	$	5.8		$	5.6		$	7.5

The assumptions used to determine the net periodic benefit costs and the projected benefit obligations are as follows:

2024	Japan			France			Switzerland			Germany			Italy
Annual discount rate—defined benefit obligation		1.4	%		3.3	%		1.0	%		3.1	%		3.4	%
Annual discount rate—defined benefit cost		1.1	%		3.2	%		1.4	%		3.6	%		3.6	%
Expected return on plan assets		—	%		3.0	%		2.8	%		—	%		—	%
Expected rate of compensation increase		3.0	%		3.0	%		2.0	%		2.6	%		3.0	%
2023	Japan			France			Switzerland			Germany			Italy
Annual discount rate—defined benefit obligation		1.1	%		3.2	%		1.4	%		3.6	%	n/a
Annual discount rate—defined benefit cost		0.9	%		3.8	%		2.4	%		3.9	%	n/a
Expected return on plan assets		—	%		3.0	%		2.7	%		—	%	n/a
Expected rate of compensation increase		3.0	%		3.0	%		2.2	%		2.6	%	n/a
2022	Japan			France			Switzerland			Germany			Italy
Annual discount rate—defined benefit obligation		0.9	%		3.8	%		2.4	%		3.9	%	n/a
Annual discount rate—defined benefit cost		0.4	%		1.0	%		0.4	%		0.8	%	n/a
Expected return on plan assets		—	%		3.0	%		1.2	%		—	%	n/a
Expected rate of compensation increase		3.0	%		3.0	%		2.3	%		2.6	%	n/a

To determine the expected long-term rate of return on pension plan assets, the Company considers current asset allocations, as well as historical and expected returns on various asset categories of plan assets. For the defined benefit pension plans, the Company applies the expected rate of return to a market-related value of assets, which stabilizes variability in assets to which the expected return is applied.

Asset Allocations by Asset Category

The fair value of the Company’s pension plan assets by asset category and by level in the fair value hierarchy, is as follows (in millions):

December 31, 2024	Total		Quoted Prices in Active Markets Available (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Plan Assets:
Swiss Pension Plan assets (a)	$	189.1	$	—	$	—	$	189.1
Total plan assets	$	189.1	$	—	$	—	$	189.1
December 31, 2023	Total		Quoted Prices in Active Markets Available (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Plan Assets:
Swiss Pension Plan assets (a)	$	177.4	$	—	$	—	$	177.4
Total plan assets	$	177.4	$	—	$	—	$	177.4

(a)The Company’s pension plan in Switzerland is outsourced to Swiss Life AG for Bruker Switzerland AG and PMOD under a fully insured plan, Profond for Biognosys under a partially insured plan and Axa Stiftung Berufliche Vorsorge for Chemspeed under a partially insured plan. Starting January 1, 2025 the pension plan for Bruker Switzerland AG is outsourced to Profond under a partially insured plan. Members for the Bruker Switzerland AG and PMOD Plans are guaranteed an interest of 1.25% on mandatory retirement withdrawals and another 0.50% on the non-mandatory portion of the withdrawal benefit for the year 2024. Members for the Chemspeed Plan are guaranteed an interest of 1.75% on mandatory retirement withdrawals and another 3.50% on the non-mandatory portion of the withdrawal benefit for the year 2024. Members for the Biognosys plan are guaranteed an 8% interest for the overall account balance. The insurers utilize plan administrators and investment managers to oversee the investment allocation process, set long-term strategic targets and monitor asset allocations. Should the return be greater than the guaranteed amounts, the Company, according to Swiss law, shall receive 90% of the additional return with the insurers retaining 10%.

Contributions and Estimated Future Benefit Payments

The estimated future benefit payments are based on the same assumptions used to measure the Company’s benefit obligation at December 31, 2024. The following benefit payments reflect future employee service as appropriate (in millions):

2025	$	12.9
2026		11.7
2027		13.5
2028		15.8
2029		16.3
2030-2034	$	83.5