Debt

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt

7.Debt

The Company’s debt obligations consist of the following (in millions):

	September 30, 2022			December 31, 2021
EUR notes (in U.S. dollars) under the 2021 Note Purchase Agreement	$	146.8		$	170.7
CHF notes (in U.S. dollars) under the 2021 Note Purchase Agreement		304.6			329.2
CHF notes (in U.S. dollars) under the 2019 Note Purchase Agreement		301.6			325.9
U.S. Dollar notes under the 2019 Term Loan Agreement		297.0			299.2
U.S. Dollar notes under the 2012 Note Purchase Agreement		100.0			205.0
Unamortized debt issuance costs		(1.7	)		(2.0	)
Other loans		1.9			1.9
Total notes and loans outstanding		1,150.2			1,329.9
Finance lease obligations		3.6			4.3
Total debt		1,153.8			1,334.2
Current portion of long-term debt		(17.0	)		(112.4	)
Total long-term debt, less current portion	$	1,136.8		$	1,221.8

The following is a summary of the maximum commitments and the net amounts available to the Company under the 2019 Revolving Credit Agreement and other lines of credit with various financial institutions located primarily in Germany and Switzerland that are unsecured and typically due upon demand with interest payable monthly, at September 30, 2022 (in millions):

	Weighted Average Interest Rate			Total Amount Committed by Lenders		Outstanding Borrowings		Outstanding Letters of Credit		Total Amount Available
2019 Credit Agreement		0.15	%	$	600.0	$	—	$	—	$	600.0
Bank guarantees and working capital line	varies				101.3		—		101.3		—
Total revolving lines of credit				$	701.3	$	—	$	101.3	$	600.0

As of September 30, 2022, the Company was in compliance with the financial covenants of all debt agreements.

As of September 30, 2022, the Company had several cross-currency and interest rate swap agreements with a notional value of $148.5 million of U.S. to Swiss Franc and a notional value of $248.5 million of U.S. to Euro to hedge the variability in the movement of foreign currency exchange rates on portions of our Euro and Swiss Franc denominated net asset investments. These agreements qualify for hedge accounting and accordingly the changes in fair value of the derivative are recorded in other comprehensive income 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 (expense), net in the consolidated statements of income and comprehensive income. As a result of entering into these agreements, the Company lowered net interest expense by $2.5 million and $1.4 million during the three months ended September 30, 2022 and 2021, respectively, and by $5.2 million and $4.1 million during the nine months ended September 30, 2022 and 2021, 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.

On June 16, 2022, the Company entered into the First Amendment to the 2019 Credit Agreement to modify certain contract definitions within the agreement. Primarily, the current London Interbank Offered Rate ("LIBOR") rates were changed to new alternative base rates for the respective currencies. As part of the change any related items, such as fall back rates and day conventions were also changed. No other material terms were modified with this agreement. During 2022, the Company adopted the practical expedient for Reference Rate Reform related to its debt arrangements and as such, this amendment is treated as a continuation of the existing debt agreement and no gain or loss on the modification was recorded.

On September 30, 2022, the Company entered into the Second Amendment to the 2019 Term Loan Agreement and the Second Amendment to the 2019 Credit Agreement (collectively, the "Amendments"), to modify certain aspects of the 2019 Term Loan Agreement and 2019 Credit Agreement, respectively. The Amendments modify the reference rate thereunder from LIBOR to Secured Overnight Financing Rate ("SOFR"). There were no other changes to the 2019 Term Loan Agreement or 2019 Credit Agreement as a result of the Amendments. The Company did not record any gains or losses on the conversion of the reference rate for Borrowings under the Term Loan Agreement from LIBOR to SOFR.