0001193125-21-155172.txt : 20210510 0001193125-21-155172.hdr.sgml : 20210510 20210507183157 ACCESSION NUMBER: 0001193125-21-155172 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 77 CONFORMED PERIOD OF REPORT: 20210331 FILED AS OF DATE: 20210510 DATE AS OF CHANGE: 20210507 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRUKER CORP CENTRAL INDEX KEY: 0001109354 STANDARD INDUSTRIAL CLASSIFICATION: LABORATORY ANALYTICAL INSTRUMENTS [3826] IRS NUMBER: 043110160 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-30833 FILM NUMBER: 21904493 BUSINESS ADDRESS: STREET 1: 40 MANNING RD CITY: BILLERICA STATE: MA ZIP: 01821 BUSINESS PHONE: 978663-3660 MAIL ADDRESS: STREET 1: 40 MANNING RD CITY: BILLERICA STATE: MA ZIP: 01821 FORMER COMPANY: FORMER CONFORMED NAME: BRUKER BIOSCIENCES CORP DATE OF NAME CHANGE: 20030721 FORMER COMPANY: FORMER CONFORMED NAME: BRUKER DALTONICS INC DATE OF NAME CHANGE: 20000315 10-Q 1 d112071d10q.htm 10-Q 10-Q
Table of Contents
P1YMA0001109354--12-312021Q1false 0001109354 2021-03-31 0001109354 2020-12-31 0001109354 2021-01-01 2021-03-31 0001109354 2020-01-01 2020-03-31 0001109354 2021-05-03 0001109354 2021-03-05 2021-03-05 0001109354 2019-12-31 0001109354 2020-03-31 0001109354 us-gaap:TechnologyBasedIntangibleAssetsMember 2020-12-31 0001109354 us-gaap:CustomerRelationshipsMember 2020-12-31 0001109354 us-gaap:TradeNamesMember 2020-12-31 0001109354 us-gaap:OtherIntangibleAssetsMember 2020-12-31 0001109354 us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001109354 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2020-12-31 0001109354 brkr:NotePurchaseAgreement2012Member 2020-12-31 0001109354 brkr:NotePurchaseAgreement2019Member 2020-12-31 0001109354 brkr:TermLoanAgreementMember 2020-12-31 0001109354 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001109354 us-gaap:ForeignExchangeForwardMember 2020-12-31 0001109354 us-gaap:OtherCurrentAssetsMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-12-31 0001109354 us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember us-gaap:ForeignExchangeForwardMember us-gaap:OtherCurrentAssetsMember 2020-12-31 0001109354 us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:OtherCurrentAssetsMember 2020-12-31 0001109354 us-gaap:CommodityContractMember us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember us-gaap:OtherCurrentAssetsMember 2020-12-31 0001109354 us-gaap:CurrencySwapMember 2020-12-31 0001109354 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember 2020-12-31 0001109354 us-gaap:OtherCurrentLiabilitiesMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-12-31 0001109354 us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember us-gaap:ForeignExchangeForwardMember us-gaap:OtherCurrentLiabilitiesMember 2020-12-31 0001109354 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherNoncurrentLiabilitiesMember 2020-12-31 0001109354 brkr:CapitalLeaseObligationsAndOtherLoanMember 2020-12-31 0001109354 us-gaap:ForeignExchangeContractMember 2020-12-31 0001109354 us-gaap:CommodityContractMember 2020-12-31 0001109354 us-gaap:DesignatedAsHedgingInstrumentMember 2020-12-31 0001109354 us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember 2020-12-31 0001109354 us-gaap:FairValueInputsLevel2Member 2020-12-31 0001109354 brkr:ScientificInstrumentsMember us-gaap:OperatingSegmentsMember 2020-12-31 0001109354 brkr:EnergyAndSuperconTechnologiesMember us-gaap:OperatingSegmentsMember 2020-12-31 0001109354 brkr:CorporateReconcilingItemsAndEliminationsMember 2020-12-31 0001109354 us-gaap:TechnologyBasedIntangibleAssetsMember 2021-03-31 0001109354 us-gaap:CustomerRelationshipsMember 2021-03-31 0001109354 us-gaap:TradeNamesMember 2021-03-31 0001109354 us-gaap:OtherIntangibleAssetsMember 2021-03-31 0001109354 us-gaap:FairValueMeasurementsRecurringMember 2021-03-31 0001109354 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-03-31 0001109354 brkr:NotePurchaseAgreement2012Member 2021-03-31 0001109354 brkr:NotePurchaseAgreement2019Member 2021-03-31 0001109354 brkr:TermLoanAgreementMember 2021-03-31 0001109354 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-03-31 0001109354 brkr:RevolvingCreditAgreement2019Member us-gaap:DomesticLineOfCreditMember 2021-03-31 0001109354 brkr:BankGuaranteesAndWorkingCapitalLineMember 2021-03-31 0001109354 us-gaap:ForeignExchangeForwardMember 2021-03-31 0001109354 us-gaap:OtherCurrentAssetsMember us-gaap:DesignatedAsHedgingInstrumentMember 2021-03-31 0001109354 us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember us-gaap:ForeignExchangeForwardMember us-gaap:OtherCurrentAssetsMember 2021-03-31 0001109354 us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember us-gaap:CommodityContractMember us-gaap:OtherCurrentAssetsMember 2021-03-31 0001109354 us-gaap:CurrencySwapMember 2021-03-31 0001109354 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember 2021-03-31 0001109354 us-gaap:OtherCurrentLiabilitiesMember us-gaap:DesignatedAsHedgingInstrumentMember 2021-03-31 0001109354 us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember us-gaap:ForeignExchangeForwardMember us-gaap:OtherCurrentLiabilitiesMember 2021-03-31 0001109354 us-gaap:OtherCurrentLiabilitiesMember us-gaap:EmbeddedDerivativeFinancialInstrumentsMember 2021-03-31 0001109354 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherNoncurrentLiabilitiesMember 2021-03-31 0001109354 2020-01-01 2021-03-31 0001109354 2020-01-01 srt:MaximumMember 2021-03-31 0001109354 2020-01-01 srt:MinimumMember 2021-03-31 0001109354 brkr:CapitalLeaseObligationsAndOtherLoanMember 2021-03-31 0001109354 us-gaap:ForeignExchangeContractMember 2021-03-31 0001109354 us-gaap:CommodityContractMember 2021-03-31 0001109354 us-gaap:DesignatedAsHedgingInstrumentMember 2021-03-31 0001109354 us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember 2021-03-31 0001109354 us-gaap:FairValueInputsLevel2Member 2021-03-31 0001109354 brkr:ScientificInstrumentsMember us-gaap:OperatingSegmentsMember 2021-03-31 0001109354 brkr:EnergyAndSuperconTechnologiesMember us-gaap:OperatingSegmentsMember 2021-03-31 0001109354 brkr:CorporateReconcilingItemsAndEliminationsMember 2021-03-31 0001109354 brkr:CrossCurrencyInterestRateContractUSDollarsToSwissFrancMember 2021-03-31 0001109354 brkr:CrossCurrencyInterestRateContractUsDollarsToEuroMember 2021-03-31 0001109354 us-gaap:ProductMember 2020-01-01 2020-03-31 0001109354 us-gaap:ServiceMember 2020-01-01 2020-03-31 0001109354 us-gaap:ProductAndServiceOtherMember 2020-01-01 2020-03-31 0001109354 brkr:BrukerBioSpinGroupMember 2020-01-01 2020-03-31 0001109354 brkr:BrukerCalidGroupMember 2020-01-01 2020-03-31 0001109354 brkr:BrukerNanoGroupMember 2020-01-01 2020-03-31 0001109354 brkr:EnergyAndSuperconTechnologiesMember 2020-01-01 2020-03-31 0001109354 us-gaap:IntersegmentEliminationMember 2020-01-01 2020-03-31 0001109354 country:US 2020-01-01 2020-03-31 0001109354 country:DE 2020-01-01 2020-03-31 0001109354 brkr:RestOfEuropeMember 2020-01-01 2020-03-31 0001109354 srt:AsiaPacificMember 2020-01-01 2020-03-31 0001109354 brkr:OtherCountryMember 2020-01-01 2020-03-31 0001109354 us-gaap:TransferredAtPointInTimeMember 2020-01-01 2020-03-31 0001109354 us-gaap:TransferredOverTimeMember 2020-01-01 2020-03-31 0001109354 us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember us-gaap:InterestIncomeMember us-gaap:EmbeddedDerivativeFinancialInstrumentsMember 2020-01-01 2020-03-31 0001109354 us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember 2020-01-01 2020-03-31 0001109354 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherComprehensiveIncomeMember us-gaap:CashFlowHedgingMember brkr:CrossCurrencyAndInterestRateSwapAgreementsMember 2020-01-01 2020-03-31 0001109354 us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-01-01 2020-03-31 0001109354 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:NetInvestmentHedgingMember us-gaap:InterestIncomeMember brkr:CrossCurrencyAndInterestRateSwapAgreementsMember 2020-01-01 2020-03-31 0001109354 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:NetInvestmentHedgingMember us-gaap:OtherComprehensiveIncomeMember brkr:CrossCurrencyAndInterestRateSwapAgreementsMember 2020-01-01 2020-03-31 0001109354 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:NetInvestmentHedgingMember 2020-01-01 2020-03-31 0001109354 us-gaap:ForeignExchangeForwardMember us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember us-gaap:InterestIncomeMember 2020-01-01 2020-03-31 0001109354 us-gaap:CostOfSalesMember 2020-01-01 2020-03-31 0001109354 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-01-01 2020-03-31 0001109354 us-gaap:ResearchAndDevelopmentExpenseMember 2020-01-01 2020-03-31 0001109354 brkr:MestrelabResearchS.lMember 2020-01-01 2020-03-31 0001109354 us-gaap:OtherExpenseMember 2020-01-01 2020-03-31 0001109354 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-03-31 0001109354 brkr:ScientificInstrumentsMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-03-31 0001109354 brkr:BsiNanoMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-03-31 0001109354 brkr:EnergyAndSuperconTechnologiesMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-03-31 0001109354 brkr:CorporateReconcilingItemsAndEliminationsMember 2020-01-01 2020-03-31 0001109354 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001109354 us-gaap:ParentMember 2020-01-01 2020-03-31 0001109354 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0001109354 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001109354 us-gaap:NoncontrollingInterestMember 2020-01-01 2020-03-31 0001109354 brkr:RedeemableNoncontrollingInterestMember 2020-01-01 2020-03-31 0001109354 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001109354 us-gaap:ProductMember 2021-01-01 2021-03-31 0001109354 us-gaap:ServiceMember 2021-01-01 2021-03-31 0001109354 us-gaap:ProductAndServiceOtherMember 2021-01-01 2021-03-31 0001109354 brkr:BrukerBioSpinGroupMember 2021-01-01 2021-03-31 0001109354 brkr:BrukerCalidGroupMember 2021-01-01 2021-03-31 0001109354 brkr:BrukerNanoGroupMember 2021-01-01 2021-03-31 0001109354 brkr:EnergyAndSuperconTechnologiesMember 2021-01-01 2021-03-31 0001109354 us-gaap:IntersegmentEliminationMember 2021-01-01 2021-03-31 0001109354 country:US 2021-01-01 2021-03-31 0001109354 country:DE 2021-01-01 2021-03-31 0001109354 brkr:RestOfEuropeMember 2021-01-01 2021-03-31 0001109354 srt:AsiaPacificMember 2021-01-01 2021-03-31 0001109354 brkr:OtherCountryMember 2021-01-01 2021-03-31 0001109354 us-gaap:TransferredAtPointInTimeMember 2021-01-01 2021-03-31 0001109354 us-gaap:TransferredOverTimeMember 2021-01-01 2021-03-31 0001109354 brkr:MestrelabResearchS.lMember 2021-01-01 2021-03-31 0001109354 us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember us-gaap:InterestIncomeMember us-gaap:EmbeddedDerivativeFinancialInstrumentsMember 2021-01-01 2021-03-31 0001109354 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherComprehensiveIncomeMember us-gaap:CashFlowHedgingMember brkr:CrossCurrencyAndInterestRateSwapAgreementsMember 2021-01-01 2021-03-31 0001109354 us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2021-01-01 2021-03-31 0001109354 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:NetInvestmentHedgingMember us-gaap:InterestIncomeMember brkr:CrossCurrencyAndInterestRateSwapAgreementsMember 2021-01-01 2021-03-31 0001109354 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:NetInvestmentHedgingMember us-gaap:OtherComprehensiveIncomeMember brkr:CrossCurrencyAndInterestRateSwapAgreementsMember 2021-01-01 2021-03-31 0001109354 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:NetInvestmentHedgingMember 2021-01-01 2021-03-31 0001109354 us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember 2021-01-01 2021-03-31 0001109354 us-gaap:ForeignExchangeForwardMember us-gaap:NotDesignatedAsHedgingInstrumentEconomicHedgeMember us-gaap:InterestIncomeMember 2021-01-01 2021-03-31 0001109354 brkr:CrossCurrencyAndInterestRateSwapAgreementsMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember us-gaap:InterestIncomeMember 2021-01-01 2021-03-31 0001109354 us-gaap:CostOfSalesMember 2021-01-01 2021-03-31 0001109354 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2021-01-01 2021-03-31 0001109354 us-gaap:ResearchAndDevelopmentExpenseMember 2021-01-01 2021-03-31 0001109354 us-gaap:OtherExpenseMember 2021-01-01 2021-03-31 0001109354 brkr:May2019RepurchaseProgramMember 2021-01-01 2021-03-31 0001109354 us-gaap:EmployeeSeveranceMember 2021-01-01 2021-03-31 0001109354 us-gaap:FacilityClosingMember 2021-01-01 2021-03-31 0001109354 brkr:ScientificInstrumentsMember us-gaap:OperatingSegmentsMember 2021-01-01 2021-03-31 0001109354 brkr:BsiNanoMember us-gaap:OperatingSegmentsMember 2021-01-01 2021-03-31 0001109354 brkr:EnergyAndSuperconTechnologiesMember us-gaap:OperatingSegmentsMember 2021-01-01 2021-03-31 0001109354 us-gaap:AccumulatedTranslationAdjustmentMember 2021-01-01 2021-03-31 0001109354 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-01-01 2021-03-31 0001109354 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-03-31 0001109354 brkr:AcquisitionsIn2021Member 2021-01-01 2021-03-31 0001109354 brkr:ContingentConsiderationMember 2021-01-01 2021-03-31 0001109354 us-gaap:HybridInstrumentMember 2021-01-01 2021-03-31 0001109354 brkr:CorporateReconcilingItemsAndEliminationsMember 2021-01-01 2021-03-31 0001109354 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001109354 us-gaap:ParentMember 2021-01-01 2021-03-31 0001109354 us-gaap:CommonStockMember 2021-01-01 2021-03-31 0001109354 brkr:ProvisionsForExcessInventoryMember 2021-01-01 2021-03-31 0001109354 us-gaap:TreasuryStockMember 2021-01-01 2021-03-31 0001109354 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001109354 us-gaap:NoncontrollingInterestMember 2021-01-01 2021-03-31 0001109354 country:CH 2021-01-01 2021-03-31 0001109354 brkr:GlycopathIncMember brkr:ScientificInstrumentsMember 2021-01-01 2021-03-31 0001109354 brkr:IonPathIncMember brkr:ScientificInstrumentsMember 2021-01-01 2021-03-31 0001109354 brkr:AcuitySpatialGenomicsIncMember brkr:BsiNanoMember 2021-01-01 2021-03-31 0001109354 brkr:HainLifescienceGmbhMember 2020-03-31 0001109354 brkr:May2019RepurchaseProgramMember 2019-05-31 0001109354 brkr:May2019RepurchaseProgramMember us-gaap:SubsequentEventMember 2021-05-03 0001109354 brkr:RedeemableNoncontrollingInterestMember 2019-12-31 0001109354 us-gaap:CommonStockMember 2019-12-31 0001109354 us-gaap:TreasuryStockMember 2019-12-31 0001109354 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001109354 us-gaap:RetainedEarningsMember 2019-12-31 0001109354 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001109354 us-gaap:ParentMember 2019-12-31 0001109354 us-gaap:NoncontrollingInterestMember 2019-12-31 0001109354 us-gaap:CommonStockMember 2020-03-31 0001109354 us-gaap:TreasuryStockMember 2020-03-31 0001109354 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001109354 us-gaap:RetainedEarningsMember 2020-03-31 0001109354 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001109354 us-gaap:ParentMember 2020-03-31 0001109354 us-gaap:NoncontrollingInterestMember 2020-03-31 0001109354 us-gaap:CommonStockMember 2020-12-31 0001109354 us-gaap:TreasuryStockMember 2020-12-31 0001109354 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001109354 us-gaap:RetainedEarningsMember 2020-12-31 0001109354 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001109354 us-gaap:ParentMember 2020-12-31 0001109354 us-gaap:NoncontrollingInterestMember 2020-12-31 0001109354 brkr:ContingentConsiderationMember 2020-12-31 0001109354 us-gaap:HybridInstrumentMember 2020-12-31 0001109354 us-gaap:AccumulatedTranslationAdjustmentMember 2020-12-31 0001109354 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-12-31 0001109354 us-gaap:EmployeeSeveranceMember 2020-12-31 0001109354 us-gaap:FacilityClosingMember 2020-12-31 0001109354 brkr:ProvisionsForExcessInventoryMember 2020-12-31 0001109354 brkr:ContingentConsiderationMember 2021-03-31 0001109354 us-gaap:HybridInstrumentMember 2021-03-31 0001109354 us-gaap:CommonStockMember 2021-03-31 0001109354 us-gaap:TreasuryStockMember 2021-03-31 0001109354 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001109354 us-gaap:RetainedEarningsMember 2021-03-31 0001109354 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0001109354 us-gaap:ParentMember 2021-03-31 0001109354 us-gaap:NoncontrollingInterestMember 2021-03-31 0001109354 us-gaap:EmployeeSeveranceMember 2021-03-31 0001109354 brkr:ProvisionsForExcessInventoryMember 2021-03-31 0001109354 us-gaap:FacilityClosingMember 2021-03-31 0001109354 us-gaap:AccumulatedTranslationAdjustmentMember 2021-03-31 0001109354 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-03-31 iso4217:USD xbrli:shares xbrli:pure utr:Year utr:Month iso4217:USD xbrli:shares brkr:segment
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
Form 10-Q
 
 
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934
For the quarterly period ended March 31, 2021
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934
For the transition period from
                    
to
                    
Commission File Number 
000-30833
 
 
BRUKER CORPORATION
(Exact name of registrant as specified in its charter)
 
 
 
Delaware
 
04-3110160
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
40 Manning Road, Billerica, MA 01821
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area
code: (978663-3660
 
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
 
Trading
Symbols(s)
 
Name of each exchange
on which registered
Common Stock
 
BRKR
 
Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule
12b-2
of the Exchange Act.
 
Large accelerated filer
 
  
Accelerated filer
 
Non-accelerated filer
 
  
Smaller reporting company
 
        
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act).    Yes  ☐    No  
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
 
Class
 
Outstanding at May 3, 2021
Common Stock, $0.01 par value per share   151,521,114 shares
 
 
 

BRUKER CORPORATION
Index
 
 
  
 
  
Page
 
Part I
  
  
 
1
 
Item 1:
  
  
 
1
 
 
  
  
 
1
 
 
  
  
 
2
 
 
  
  
 
3
 
 
  
  
 
4
 
 
  
  
 
5
 
Item 2:
  
  
 
19
 
Item 3:
  
  
 
28
 
Item 4:
  
  
 
29
 
Part II
  
  
 
30
 
Item 1:
  
  
 
30
 
Item 1A:
  
  
 
30
 
Item 2:
  
  
 
31
 
Item 6:
  
  
 
32
 
 
  
  
 
33
 
 

PART I FINANCIAL INFORMATION
 
ITEM 1.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
BRUKER CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share and per share data)
 
    
March 31,
2021
   
December 31,
2020
 
ASSETS
                
Current assets:
                
Cash and cash equivalents
   $ 696.8     $ 681.8  
Short-term investments
     50.0       50.0  
Accounts receivable, net
     326.0       335.3  
Inventories
     700.7       692.3  
Other current assets
     172.7       165.6  
    
 
 
   
 
 
 
Total current assets
     1,946.2       1,925.0  
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       179.0  
    
 
 
   
 
 
 
Total assets
   $ 3,034.9     $ 3,049.0  
    
 
 
   
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
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
                  
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     (667.0
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
     14.0       13.1  
    
 
 
   
 
 
 
Total shareholders’ equity
     981.7       974.3  
    
 
 
   
 
 
 
Total liabilities and shareholders’ equity
   $ 3,034.9     $ 3,049.0  
    
 
 
   
 
 
 
The accompanying notes are an integral part of these financial statements.
 
1

BRUKER CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
(in millions, except per share data)
 
    
Three Months Ended

March 31,
 
    
2021
   
2020
 
Product revenue
   $ 458.6     $ 345.0  
Service revenue
     94.1       78.2  
Other revenue
     2.0       0.8  
    
 
 
   
 
 
 
Total revenue
     554.7       424.0  
Cost of product revenue
     220.9       180.5  
Cost of service revenue
     54.8       51.1  
Cost of other revenue
     0.3       0.1  
    
 
 
   
 
 
 
Total cost of revenue
     276.0       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
     3.0       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
   $ 0.37     $ 0.07  
    
 
 
   
 
 
 
Diluted
   $ 0.37     $ 0.07  
    
 
 
   
 
 
 
Weighted average common shares outstanding:
                
Basic
     151.8       154.2  
Diluted
     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  
    
 
 
   
 
 
 
The accompanying notes are an integral part of these financial statements.
 
2

BRUKER CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY
(in millions, except per share data)
 
 
 
Redeemable
Noncontrolling
Interest
 
 
 
 
 
 
 
 
Common
Shares
 
 
Common
Stock
Amount
 
 
Treasury
Shares
 
 
Treasury
Stock
Amount
 
 
Additional
Paid-In

Capital
 
 
Retained
Earnings
 
 
Accumulated
Other
Comprehensive
Income (Loss)
 
 
Total
Shareholders’
Equity
Attributable to
Bruker
Corporation
 
 
Noncontrolling
Interests in
Consolidated
Subsidiaries
 
 
Total
Shareholders’
Equity
 
Balance at December 31,
2019
  $ 21.1
 
 
 
 
   
 
 
 
 
  154,155,798     $ 1.7       19,346,577     $ (543.8   $ 199.7     $ 1,274.7     $ (25.5   $ 906.8     $ 10.3     $ 917.1  
Stock options
exercised
     
 
 
 
 
   
 
 
 
 
  30,182                             0.7                       0.7               0.7  
Restricted stock
units vested
     
 
 
 
 
   
 
 
 
 
  40,516                             (0.1                     (0.1             (0.1
Stock-based compensation
     
 
 
 
 
   
 
 
 
 
                                  3.0                       3.0               3.0  
Dividends declared
to common
stockholders
($0.04 per
 
share)
    —  
 
 
 
 
   
 
 
 
 
                                          (6.2             (6.2     (1.2     (7.4
Acquired remaining
20% interest in
Hain LifeScience
GmbH
    (20.6
)
 
 
 
   
 
 
 
 
                                          (1.3             (1.3             (1.3
Consolidated net income
     
 
 
 
 
   
 
 
 
 
                                          10.5               10.5       0.1       10.6  
Other
comprehensive
income (loss)
    (0.5
)
 
 
 
   
 
 
 
 
                                                  2.2       2.2       (0.2     2.0  
   
 
 
 
 
 
 
   
 
 
 
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Balance at
March 31, 2020
  $ —  
 
 
 
 
   
 
 
 
 
  154,226,496     $ 1.7       19,346,577     $ (543.8   $ 203.3     $ 1,277.7     $ (23.3   $ 915.6     $ 9.0     $ 924.6  
   
 
 
 
 
 
 
   
 
 
 
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Balance at
December 31,
2020
     
 
 
 
 
   
 
 
 
 
  151,987,081     $ 1.7       22,058,529     $ (667.0   $ 216.3     $ 1,406.5     $ 3.7     $ 961.2     $ 13.1     $ 974.3  
Stock options
exercised
     
 
 
 
 
   
 
 
 
 
  65,312       —                         1.2                       1.2               1.2  
Restricted stock
units vested
     
 
 
 
 
   
 
 
 
 
  21,821       —                         (0.1                     (0.1             (0.1
Stock based
compensation
     
 
 
 
 
   
 
 
 
 
                                  3.4                       3.4               3.4  
Shares purchased
     
 
 
 
 
   
 
 
 
 
  (530,729             530,729       (32.8                             (32.8             (32.8
Dividends declared
to common
stockholders
($0.04 per share)
     
 
 
 
 
   
 
 
 
 
                                          (6.1             (6.1             (6.1
Consolidated net income
     
 
 
 
 
   
 
 
 
 
                                          56.7               56.7       1.1       57.8  
Other
comprehensive
income (loss)
     
 
 
 
 
   
 
 
 
 
                                                  (15.8     (15.8     (0.2     (16.0
       
 
 
 
 
   
 
 
 
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Balance at
March 31, 2021
     
 
 
 
 
   
 
 
 
 
  151,543,485     $ 1.7       22,589,258     $ (699.8   $ 220.8     $ 1,457.1     $ (12.1   $ 967.7     $ 14.0     $ 981.7  
       
 
 
 
 
   
 
 
 
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
The accompanying notes are an integral part of these financial statements
.
 
3

BRUKER CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
 
    
Three Months Ended

March 31,
 
    
2021
   
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       19.0  
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     (61.0
Accounts payable and accrued expenses
     35.5       19.1  
Income taxes payable
     10.1       (15.0
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
     98.0       35.0  
    
 
 
   
 
 
 
Cash flows from investing activities:
                
Purchases of short-term investments
     —         (50.0
Cash paid for acquisitions, net of cash acquired
     (4.0     (22.0
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
     (24.0     (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
     (21.0     (8.7
    
 
 
   
 
 
 
Net change in cash, cash equivalents and restricted cash
     14.9       117.0  
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  
    
 
 
   
 
 
 
The accompanying notes are an integral part of these financial statements.
 
4

BRUKER CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2021
 
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
diagnostics, nanotechnology and materials science research.
The Company has four operating segments,
Bruker BioSpin Group, Bruker CALID Group, Bruker Scientific Instruments (BSI) Nano Segment
and
Bruker Energy
 & Supercon Technologies (BEST)
. The Company has three reportable segments,
BSI Life Science Segment, BSI NANO Segment
and
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
— The Bruker BioSpin Group designs, manufactures and distributes enabling life science tools based on magnetic resonance technology. Bruker BioSpin Group’s revenues are generated by academic and government research customers, pharmaceutical and biotechnology companies and nonprofit laboratories, as well as chemical, food and beverage, clinical and other industrial companies.
Bruker CALID (Chemicals, Applied Markets, Life Science,
In-Vitro
Diagnostics, Detection)
- The Bruker CALID Group designs, manufactures and distributes life science mass spectrometry and ion mobility spectrometry solutions, analytical and process analysis instruments and solutions based on infrared and Raman molecular spectroscopy technologies and radiological/nuclear detectors for Chemical, Biological, Radiological, Nuclear and Explosive (CBRNE) detection. Customers of the Bruker CALID Group include: academic institutions and medical schools; pharmaceutical, biotechnology and diagnostics companies; contract research organizations; nonprofit and
for-profit
forensics laboratories; agriculture, food and beverage safety laboratories; environmental and clinical microbiology laboratories; hospitals and government departments and agencies.
The BSI NANO Segment designs, manufactures and distributes advanced
X-ray
instruments; atomic force microscopy instrumentation; advanced fluorescence optical microscopy instruments; analytical tools for electron microscopes and
X-ray
metrology; defect-detection equipment for semiconductor process control; handheld, portable and mobile
X-ray
fluorescence spectrometry instruments; spark optical emission spectroscopy systems; chip cytometry products and services for targeted spatial proteomics, multi-omic services, and products and services for spatial genomics research. Customers of the BSI NANO Segment include academic institutions, governmental customers, nanotechnology companies, semiconductor companies, raw material manufacturers, industrial companies, biotechnology and pharmaceutical companies and other businesses involved in materials research and life science research analysis.
The BEST reportable segment develops and manufactures superconducting and
non-superconducting
materials and devices for use in renewable energy, energy infrastructure, healthcare and “big science” research. The segment focuses on metallic low temperature superconductors for use in magnetic resonance imaging, nuclear magnetic resonance, fusion energy research and other applications.
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
and Article 10 of Regulation
S-X.
Accordingly, the financial information presented herein does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair statement have been included. The results for interim periods are not necessarily indicative of the results expected for any other interim period or the full year.
At March 31, 2021, the Company’s significant accounting policies and estimates, which are detailed in the Company’s Annual Report on Form
10-K
for the year ended December 31, 2020, have not changed.
 
5

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
coronavirus, changes in commodity prices, spending patterns of its customers, protection of its intellectual property, availability of key raw materials and components, compliance with existing and future regulation by government agencies and fluctuations in foreign currency exchange rates and interest rates.
The impact of the
COVID-19
worldwide pandemic has been and will likely continue to be extensive in certain geographies and aspects of society. The pandemic has resulted in and will likely continue to result in significant disruptions to the global economy, global supply chains, as well as businesses and capital markets around the world.
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,
a number of countries, including the United States, have implemented and continue to implement significant restrictions on travel, shelter in place or stay at home orders, and business closures. While some of these restrictions are loosening in certain jurisdictions, some markets have returned to restrictions in the face of increases in new
COVID-19
cases or new strains of the virus. A number of states, including California, Massachusetts and New Jersey where the Company has significant operations have implemented phased
re-opening
policies as vaccines to protect against the virus continue to be administered. However, many of the Company’s employees in these areas continue to work remotely, and any
re-openings
may be delayed or pulled back if the virus continues to spread or as new strains of the virus emerge, in particular if existing vaccines are determined to be less effective against these new strains than against earlier strains. In addition, a number of the Company’s production facilities had to either temporarily close or operate on a reduced capacity in 2020. Much of the commercial activity in sales and marketing, and customer demonstrations and applications training, is still either being conducted remotely or postponed. Many customer purchasing departments are still operating at reduced capacity, and many customers could delay or cut capital expenditures and operating budgets due to pandemic-related concerns. Even where customers have
re-opened
their sites, many still operate at productivity levels that are below
pre-pandemic
levels in an effort to accommodate safety protocols. Any resurgence of the virus or the emergence of new strains of the virus, particularly any new strains which are resistant to existing vaccines, may require the Company or its customers to close or partially close operations once again. These travel restrictions, business closures and operating reductions at Bruker, customers, distributors, and/or suppliers have and may continue to adversely impact the Company’s operations worldwide, including the ability to manufacture, sell or distribute products, as well as cause temporary closures of foreign distributors, or the facilities of suppliers or customers. Global supply chains, including for semiconductor chips and other component products, have been disrupted causing shortages, which could impact the Company’s ability to manufacture or supply its products. This disruption of the Company’s employees, distributors, suppliers and customers has impacted and may continue to impact the Company’s global sales and operating results.
The Company is continuing to monitor and assess the effects of the
COVID-19
pandemic on commercial operations, including its impact on revenue in 2021. However, the Company cannot at this time accurately predict what effects these conditions will ultimately have on future operations due to uncertainties relating to the severity of the disease, the duration of the outbreak, including the impact of any resurgence of the virus or the continued emergence of new strains of the virus, the effectiveness and availability of vaccines, (including to protect against any new strains of the virus), the willingness of individuals to receive vaccines, and the length or severity of the travel restrictions, business closures, and other safety and precautionary measures imposed by the governments of impacted countries. The pandemic has also adversely affected the economies and financial markets of many countries, which has affected and likely will continue to affect demand for the Company’s products and its operating results.
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
pandemic will directly or indirectly impact the future business, results of operations and financial condition, including sales, expenses, reserves and allowances, manufacturing, research and development costs and employee-related amounts, depends on future developments that are highly uncertain, including as a result of new information that may emerge concerning
COVID-19,
the effectiveness and availability of
COVID-19
vaccines or individuals’ willingness to receive vaccines, and the actions taken to contain or treat the virus, as well as the economic impact on local, regional, national and international customers and markets. The Company has made estimates of the impact of
COVID-19
within the financial statements and there may be changes to those estimates in future periods. Actual results may differ from management’s estimates if these results differ from historical experience.
 
6

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
(“ASU
2020-04”),
which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The guidance provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform if certain criteria are met. These transactions include: contract modifications, hedging relationships, and sale or transfer of debt securities classified as
held-to-maturity.
In January 2021, the FASB issued ASU
2021-01,
Reference Rate Reform (Topic 848)
: Scope, to clarify that certain optional expedients and exceptions under the reference rate reform guidance for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Specifically, certain provisions in the reference rate reform guidance, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. This temporary guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company may elect to apply this guidance for all contract modifications or eligible hedging relationships during that time period subject to certain criteria. The Company is still evaluating the impact of reference rate reform and whether this guidance will be adopted.
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)
, which clarifies the interaction of the accounting for certain equity securities, equity method investments, and certain forward contracts and purchased options. The guidance clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying measurement principles for certain equity securities immediately before applying or discontinuing the equity method. The Company adopted this guidance using a prospective method. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.
In December 2019, the FASB issued ASU
2019-12
- Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
. The guidance simplifies the accounting for income taxes by removing certain exceptions within the current guidance; including the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The amendment also improves consistent application by clarifying and amending existing guidance related to aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step up in the tax basis of goodwill. This guidance is effective for annual and interim periods beginning after December 15, 2020 and early adoption was permitted. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.
 
3.
Revenue
The following table presents the Company’s revenues by Group and End Customer Geography (dollars in millions):
 
    
Three Months Ended
March 31,
 
    
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  
    
 
 
    
 
 
 
 
7

    
Three Months Ended
March 31,
 
    
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
March 31,
 
    
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 to three years.
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—
Most of the Company’s long-term contracts are billed as work progresses in accordance with the contract terms and conditions, either at periodic intervals or upon achievement of certain milestones. Billing often occurs subsequent to revenue recognition, resulting in contract assets. Contract assets are generally classified as other current assets in the unaudited condensed consolidated balance sheets. The balance of contract assets as of March 31, 2021 and December 31, 2020 was $48.8 million and $41.8 million, respectively
Contract liabilities—
The Company often receives cash payments from customers in advance of the Company’s performance, resulting in contract liabilities. These contract liabilities are classified as either current or long-term in the unaudited condensed consolidated balance sheet based on the timing of when revenue recognition is expected. As of March 31, 2021 and December 31, 2020, the contract liabilities were $407.5 million and $399.4 million, respectively. The increase in the contract liability balance during the three months ended March 31, 2021 is primarily the result of a delay in installations due to the impact of
COVID-19
on the global economy. Approximately $121.4 million of the contract liability balance on December 31, 2020 was recognized as revenue during the three months ended March 31, 2021.
 
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.
 
8

2021
In the three months ended March 31, 2021, the Company made investments in businesses complementary to its own portfolio
. The following table reflects the consideration transferred and the respective reporting segment for these investments (in millions):
 
Name
  
Acquisition /
Investment
    
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  
                               
 
 
    
 
 
 
 
5.
Inventories
Inventories consisted of the following (dollars in millions):
 
    
March 31,
2021
    
December 31,
2020
 
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
systems that have been shipped to the Company’s customers for which control has not passed to the customers as the systems were not installed and accepted by the customer. As of March 31, 2021, and December 31, 2020, the value of
inventory-in-transit
was $59.6 million and $67.8 million, respectively.
 
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  
    
 
 
 
 
9

Intangible Assets
The following is a summary of intangible assets, excluding goodwill (dollars in millions):
 
    
March 31, 2021
    
December 31, 2020
 
    
Gross
Carrying
Amount
    
Accumulated
Amortization
   
Net Carrying
Amount
    
Gross
Carrying
Amount
    
Accumulated
Amortization
   
Net Carrying
Amount
 
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.
 
7.
Debt
The Company’s debt obligations consisted of the following (dollars in millions):
 
    
March 31,
2021
    
December 31,
2020
 
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
Committed

Amounts
Available
 
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
several cross-currency and interest rate swap agreements with a notional value of $150.0 million of U.S. to Swiss Franc and a notional value of $355.0 million of U.S. to Euro to hedge the variability in the movement of foreign currency exchange rates on portions of our Euro and Swiss Franc denominated net asset investments. These agreements qualify for hedge accounting and accordingly the change
s
in fair value of the derivative are recorded in other comprehensive income as part of foreign currency translation adjustments and remain in accumulated comprehensive income (loss) attributable to Bruker Corporation in shareholders’ equity until the sale or substantial liquidation of the foreign operation. The difference between the interest rate received and paid under the interest rate and cross-currency swap agreements is recorded in interest and other income (expenses) in the unaudited consolidated statements of income and comprehensive income. As a result of entering into these agreements, the Company has lowered net interest expense by $1.4 million and $2.6 million during the three months ended March 31, 2021 and 2020, respectively. The gains (losses) related to hedges of net asset investments in international operations that were recorded within the cumulative translation adjustment section of other comprehensive income were
 gains of
$27.7 million and $10.9 million for the three months ended March 31, 2021 and 2020, respectively. The Company presents the cross-currency swap periodic settlements in investing activities and the interest rate swap periodic settlements in operating activities in the statement of cash flows.
 
10

8.
Fair Value of Financial Instruments
Th
e
 following tables set forth the Company’s financial instruments measured at fair value on a recurring basis and present them within the fair value hierarchy using the lowest level of input that is significant to the fair value measurement (dollars in millions):
 
March 31, 2021
  
Total
    
Quoted Prices
in Active
Markets
Available
(Level 1)
    
Significant
Other
Observable
Inputs
(Level 2)
    
Significant
Unobservable
Inputs
(Level 3)
 
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
in Active
Markets
Available
(Level 1)
    
Significant
Other
Observable
Inputs
(Level 2)
    
Significant
Unobservable
Inputs
(Level 3)
 
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.
 
11

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  
    
 
 
 
 
12

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
Amount in U.S.
Dollars
    
Fair Value
    
Notional
Amount in U.S.
Dollars
    
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
contracts, denominated in currencies other than the functional currency of the transacting parties, amounted to $6.1 million for the delivery of products and $4.3 million for the purchase of products at March 31, 2021 and $7.5 million for the delivery of products and $4.8 million for the purchase of products at December 31, 2020. The changes in the fair value of these embedded derivatives are recorded in interest and other income (expense), net in the unaudited condensed consolidated statements of income and comprehensive income (loss).
 
13

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  
         
 
 
    
 
 
 
 
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.
 
14

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
), also known as the Third
COVID-19
Supplemental Relief bill, and the president of the United States signed the legislation into law. The Company does not expect the provisions of the legislation to have a significant impact on the effective tax rate or the income tax payable and deferred income tax positions of the Company.
 
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
March 31,
 
    
2021
    
2020
 
Stock options
     —          0.1  
Unvested restricted stock units
     —          —    
 
15

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) 
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  
   
 
 
    
 
 
 
The following is a summary of the components of accumulated other comprehensive income (loss), net of tax (dollars in millions):
 
    
Foreign
Currency
Translation
    
Pension
Liability
Adjustment
    
Accumulated
Other
Comprehensive
Income
(Loss)
 
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.
 
16

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
for Excess
Inventory
 
Balance at December 31, 2020
   $ 9.8