Shareholders' Equity

9 Months Ended

Sep. 30, 2023

Stockholders' Equity Note [Abstract]

Shareholders' Equity

13.Shareholders’ Equity

Share Repurchase Program

In May 2021, the Company’s Board of Directors approved a share repurchase program (the “2021 Repurchase Program”) authorizing the purchase of up to $500.0 million of the Company’s common stock over a two-year period, in amounts, at prices, and at such times as management deems appropriate, subject to market conditions, legal requirements and other considerations. Authorization for the remaining $94.4 million on the 2021 Repurchase Program expired in May 2023.

In May 2023, the Company’s Board of Directors approved a share repurchase program (the “2023 Repurchase Program”) authorizing the purchase of up to $500.0 million of the Company’s common stock over a two-year period, in amounts, at prices, and at such times as management deems appropriate, subject to market conditions, legal requirements and other considerations. At September 30, 2023, $420.3 million remains available for future purchase under the 2023 Repurchase Program.

During the three months ended September 30, 2023, the Company purchased a total of 1,243,461 shares at an aggregate cost of $79.7 million under the 2023 Repurchase Program. During the nine months ended September 30, 2023, the Company purchased a total of 315,318 shares at an aggregate cost of $22.2 million under the 2021 Repurchase Program.

During the three months ended September 30, 2022, the Company purchased a total of 1,192,898 shares at an aggregate cost of $72.4 million under the 2021 Repurchase Program. During the nine months ended September 30, 2022, the Company purchased a total of 3,779,694 shares at an aggregate cost of $238.3 million under the 2021 Repurchase Program.

In August 2022, the Inflation Reduction Act (“IRA”) was signed into law in the United States. The IRA introduced new tax provisions, including a 1.0% excise tax on stock repurchases. The Company expects additional guidance and regulations to be issued in future periods and will continue to assess its potential impact on its business as further information becomes available. The estimated excise tax on our stock repurchases was not material and was recorded in other current liabilities and additional paid in capital for the three and nine months ended September 30, 2023.

Shelf Registration

On June 2, 2023, the Company filed a Form S-3ASR with the SEC (“2023 Shelf Registration”) for the issuance of common stock, preferred stock, debt securities, warrants, units, subscription rights and purchase contracts, which became effective immediately upon filing. At the time any of the securities covered by the 2023 Shelf Registration Statement are offered for sale, a prospectus supplement will be prepared and filed with the SEC containing specific information about the terms of any such offering.

Accumulated Other Comprehensive Income, net of tax

The following is a summary of comprehensive income (in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Consolidated net income	$	88.7		$	88.4		$	223.9		$	200.2
Foreign currency translation adjustments		(52.2	)		(88.3	)		(16.1	)		(195.7	)
Derivatives designated as hedging instruments, net of tax		21.5			42.9			(5.1	)		105.5
Pension liability adjustments, net of tax		—			1.6			0.8			3.7
Comprehensive income		58.0			44.6			203.5			113.7
Less: Comprehensive income (loss) attributable to    noncontrolling interests		0.3			(0.3	)		2.9			(0.5	)
Less: Comprehensive loss attributable to redeemable    noncontrolling interests		(0.8	)		(0.6	)		(1.1	)		(1.3	)
Comprehensive income attributable to Bruker Corporation	$	58.5		$	45.5		$	201.7		$	115.5

The following is a summary of the components of accumulated other comprehensive income (loss) attributable to Bruker Corporation, net of tax (in millions):

	Foreign Currency Translation			Derivatives Designated as Hedging Instruments			Pension Liability Adjustment		Accumulated Other Comprehensive Income
Balance at December 31, 2022	$	(3.1	)	$	4.1		$	13.8	$	14.8
Other comprehensive income (loss) before    reclassifications		(15.7	)		(5.1	)		0.1		(20.7	)
Realized gain on amounts reclassified from other comprehensive income		—			—			0.7		0.7
Net current period other comprehensive income (loss)		(15.7	)		(5.1	)		0.8		(20.0	)
Balance at September 30, 2023	$	(18.8	)	$	(1.0	)	$	14.6	$	(5.2	)

Stock-Based Compensation

The Company recorded stock-based compensation expense as follows in the unaudited condensed consolidated statements of income and comprehensive income (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Stock options	$	0.4	$	0.3	$	1.2	$	1.1
Restricted stock units		4.2		3.6		11.7		10.4
Employee Stock Purchase Plan		0.2		—		0.6		—
Total stock-based compensation expense	$	4.8	$	3.9	$	13.5	$	11.5

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cost of product revenue	$	0.4	$	0.2	$	1.1	$	1.0
Selling, general and administrative		3.9		3.3		11.0		9.2
Research and development		0.5		0.4		1.4		1.3
Total stock-based compensation expense	$	4.8	$	3.9	$	13.5	$	11.5

In addition to the awards above, the Company recorded stock-based compensation expense within other charges, net of $0.9 million and $5.9 million in the three months ended September 30, 2023, and 2022, respectively, and $4.3 million and $10.1 million in the nine months ended September 30, 2023 and 2022, respectively, related to the Mestrelab, PreOmics, Biognosys, Zontal, and other majority owned acquisitions.

At September 30, 2023, the Company expected to recognize pre-tax stock-based compensation expense of $3.9 million associated with outstanding stock option awards granted under the Company's stock plans over the weighted average remaining service period of 2.7 years. The Company also expects to recognize additional pre-tax stock-based compensation expense of $40.7 million associated with outstanding restricted stock units granted under the Company's 2016 Incentive Compensation Plan over the weighted average remaining service period of 2.9 years.