Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Summary of Significant Accounting Policies

Estimated useful lives of property, plant and equipment

Depreciation and amortization are calculated on a straight-line basis over the estimated useful lives of the assets as follows:

Buildings	25-40 years
Machinery and equipment	3-10 years
Computer equipment and software	3-5 years
Furniture and fixtures	3-10 years
Leasehold improvements	Lesser of 15 years or the remaining lease term

Estimated useful lives of finite intangible assets

Intangible assets with a finite useful life are amortized on a straight-line basis over their estimated useful lives as follows:

Existing technology and related patents	3-10 years
Customer and distributor relationships	5-12 years
Trade names	5-10 years

Stock-based compensation expense, by award

The Company recorded stock-based compensation expense for the years ended December 31, 2016, 2015 and 2014, as follows (in millions):

	2016		2015		2014
Stock options	$	7.5	$	7.1	$	6.7
Restricted stock awards		1.6		0.9		2.7
Restricted stock units		0.3		—		—
Total stock-based compensation	$	9.4	$	8.0	$	9.4

Stock-based compensation expense, cost allocation

The Company recorded stock-based compensation expense for the years ended December 31, 2016, 2015 and 2014, as follows (in millions):

	2016		2015		2014
Costs of product revenue	$	1.4	$	1.2	$	1.2
Selling, general and administrative		6.6		5.6		5.6
Research and development		1.4		1.2		2.6
Total stock-based compensation	$	9.4	$	8.0	$	9.4

Assumptions regarding volatility, expected life, dividend yield and risk-free interest rates

Assumptions regarding volatility, expected term, dividend yield and risk-free interest rates are required for the Black-Scholes model and are presented in the table below:

	2016		2015		2014
Risk-free interest rates		1.23%-2.21%		1.58%-1.91%		1.78%-2.10%
Expected life		5.75-7.02 years		6.0-6.25 years		6.0-6.25 years
Volatility		33.57%-41.60%		35.10%-52.23%		53.07%-56.24%
Expected dividend yield		0.0%-0.78%		—		—

Computation of basic and diluted weighted average shares outstanding and net income per common share

The following table sets forth the computation of basic and diluted weighted average shares outstanding for the years ended December 31, (in millions, except per share data):

	2016		2015		2014
Net income attributable to Bruker Corporation, as reported	$	153.6	$	101.6	$	56.7
Weighted average shares outstanding:
Weighted average shares outstanding-basic		161.4		168.2		167.8
Effect of dilutive securities:
Stock options, restricted stock awards and restricted stock units		0.8		0.9		1.7
		162.2		169.1		169.5
Net income per common share attributable to Bruker Corporation shareholders:
Basic	$	0.95	$	0.60	$	0.34
Diluted	$	0.95	$	0.60	$	0.33