BRUKER CORP MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (Form 10-Q)


The following discussion of our financial condition and results of operations
should be read in conjunction with our interim unaudited condensed consolidated
financial statements and the notes to those statements included in Part 1, Item
1 of this Quarterly Report on Form 10-Q, and in conjunction with the
consolidated financial statements contained in our Annual Report on Form 10-K
for the year ended December 31, 2021.

Statements contained in Management's Discussion and Analysis of Financial
Condition and Results of Operations and elsewhere in this Quarterly Report on
Form 10-Q, which express that we "believe," "anticipate," "plan," "expect,"
"seek," "may," "will," "intend," "estimate," "should" and similar expressions
are intended to identify forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Any forward-looking statements
contained herein are based on current expectations but are subject to a number
of risks and uncertainties. Forward-looking statements include, but are not
limited to, statements regarding the impact of COVID-19 on our business
operations, the impact of supply chain challenges, expectations regarding the
global economy and geopolitical tensions, our intentions regarding our
intellectual property, the impact of government contracts and government
regulation, our working capital requirements and sufficiency of cash, our
competition, the seasonality of our business, the sufficiency of our facilities,
our employee relations, the impact of legal or intellectual property
proceedings, the impact of changes to tax and accounting rules and changes in
law, our anticipated tax rate, our expectations regarding cash dividends, share
repurchases, interest expense, interest rate swap agreements, expenses and
capital expenditures, the impact of foreign currency exchange rates and changes
in commodity prices, the impact of our restructuring initiatives, our
expectations regarding backlog and revenue and other risk factors discussed
herein and from time to time in our other filings with the Securities and
Exchange Commission, or SEC. These and other factors are identified and
described in more detail in our filings with the SEC, including, without
limitation, our annual report on Form 10-K for the year ended December 31, 2021
and subsequent filings. We expressly disclaim any intent or obligation to update
these forward-looking statements other than as required by law.

Non-GAAP Measures

Although our consolidated financial statements have been prepared in accordance
with generally accepted accounting principles in the United States of America
(GAAP), we believe describing revenue and expenses, excluding the effects of
foreign currency, acquisitions and divestitures, as well as certain other
charges, net, provides meaningful supplemental information regarding our
performance. We rely internally on certain measures that are not calculated
according to GAAP. These measures are organic revenue, free cash flow, non-GAAP
gross profit margin and non-GAAP operating margin. Our management believes that
these financial measures provide relevant and useful information that is widely
used by equity analysts, investors and competitors in our industry, as well as
by our management, in assessing both consolidated and business unit performance.
We define the term organic revenue as GAAP revenue excluding the effect of
foreign currency translation changes and the effect of acquisitions and
divestitures. We define the term non-GAAP gross profit margin as GAAP gross
profit margin with certain non-GAAP measures excluded and non-GAAP operating
margin as GAAP operating margin with certain non-GAAP measures excluded. These
non-GAAP measures exclude costs related to restructuring actions, acquisition
and related integration expenses, amortization of acquired intangible assets,
costs associated with our global information technology transition initiatives,
and other non-operational costs and we believe these are useful measures to
evaluate our continuing business.

We define free cash flow as net cash provided by operating activities less
additions to property, plant, and equipment. We believe free cash flow is a
useful measure to evaluate our business as it indicates the amount of cash
generated after additions to property, plant, and equipment which is available
for, among other things, investments in our business, acquisitions, share
repurchases, dividends and repayment of debt. We regularly use these non-GAAP
financial measures internally to understand, manage, and evaluate our business
results and make operating decisions. We also measure our employees and
compensate them, in part, based on such non-GAAP measures and use this
information for our planning and forecasting activities. These measures may also
be useful to investors in evaluating the underlying operating performance of our
business. The presentation of these non-GAAP financial measures is not intended
to be a substitute for, or superior to, the financial information prepared and
presented in accordance with GAAP and may be different from non-GAAP financial
measures used by other companies, and therefore, may not be comparable among
companies.

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PREVIEW

We are a developer, manufacturer and distributor of high-performance scientific
instruments and analytical and diagnostic solutions that enable our customers to
explore life and materials at microscopic, molecular and cellular levels. Our
corporate headquarters are located in Billerica, Massachusetts. We maintain
major technical and manufacturing centers in Europe, Asia and North America and
we have sales offices located throughout the world. Bruker is organized into
three reportable segments: the BSI Life Science segment (comprised of the Bruker
BioSpin Group and the Bruker CALID Group), the BSI Nano segment and the Bruker
Energy & Supercon Technologies (BEST) segment.

Revenue for the three months ended March 31, 2022 increased by $40.3 million, or
7.3%, to $595.0 million, compared to $554.7 million for the comparable period in
2021. Included in revenue was a decrease of approximately $23.7 million from
unfavorable foreign exchange rate movements, offset by an increase of $5.8
million from acquisitions. Excluding the unfavorable effects of foreign exchange
rate movements and our recent acquisitions, our organic revenue, a non-GAAP
measure, increased $58.2 million. Revenue increases were driven by strong demand
for our products and solutions compared to the same period in 2021.

Our gross profit margin increased to 51.5% during the three months ended March
31, 2022, as compared to 50.2% in the same period in 2021, the result of higher
revenue and volume leverage.

Our income tax provision in the three months ended March 31, 2022 and 2021 was
$31.9 million and $27.5 million, respectively, representing effective tax rates
of 33.9% and 32.2%, respectively. The increase in our effective tax rate was
primarily due to i) the impact of legislation that became effective during the
quarter limiting the deductibility of R&D and the benefit relating to foreign
tax credits and ii) the settlement of a tax audit.

Diluted earnings per share for the three months ended March 31, 2022 was $0.41,
an increase of $0.04 compared to $0.37 per share in the same period in 2021. The
increase in net income and earnings per diluted share in the three months ended
March 31, 2022 was primarily driven by favorable revenue mix and operating
leverage compared to the same period in 2021.

The following table provides a reconciliation between net cash provided by operating activities, which is the most directly comparable GAAP operating financial measure, and free cash flow as used by management (in millions) :

                                                     Three Months Ended
                                                          March 31,
                                                      2022          2021

Net cash flow generated by operating activities $77.8 $98.0
Less: additions to property, plant and equipment (19.0 ) (24.7 ) Free cash flow

                                     $     58.8      $  73.3


The following table presents reconciliations from gross profit and gross profit
margin, which are the most directly comparable GAAP operating performance
measures, to non-GAAP gross profit and non-GAAP gross profit margin as used by
management (in millions):

                                          Three Months Ended March 31,
                                           2022                   2021
Gross profit                        $ 306.3       51.5 %   $ 278.7       50.2 %
Non-GAAP adjustments:
Restructuring costs                     0.1          -         1.1        0.2 %
Acquisition-related costs               0.2          -           -          -
Purchased intangible amortization       4.5        0.8 %       4.5        0.9 %
Other costs                             2.2        0.4 %         -          -
Non-GAAP gross profit               $ 313.3       52.7 %   $ 284.3       51.3 %


Our non-GAAP gross profit margin was 52.7% and 51.3% in the three months ended
March 31, 2022 and 2021, respectively. The increase in our non-GAAP gross profit
margins in the three months ended March 31, 2022 was driven by favorable revenue
mix and operating leverage, partially offset by supply chain challenges compared
to 2021.

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The following table presents reconciliations from operating income and operating
margin, which are the most directly comparable GAAP operating performance
measures, to non-GAAP operating income and non-GAAP operating margin as used by
management (in millions):

                                          Three Months Ended March 31,
                                           2022                   2021
Operating income                    $  96.5       16.2 %   $  89.1       16.1 %
Non-GAAP adjustments:
Restructuring costs                     0.4        0.1 %       2.4        0.4 %
Acquisition-related costs               5.3        0.9 %       0.9        0.2 %
Purchased intangible amortization       9.3        1.6 %       9.0        1.6 %
Other costs                             4.3        0.7 %       0.8        0.1 %
Non-GAAP operating income           $ 115.8       19.5 %   $ 102.2       18.4 %


Our non-GAAP operating margin was 19.5% and 18.4% in the three months ended
March 31, 2022 and 2021, respectively. Our non-GAAP operating margin increased
in 2022 due to higher gross margin resulting from differentiated products and
operating leverage, partially offset by planned commercial investments, as
compared to 2021.

We may experience quarter-to-quarter fluctuations in our operating results due to a variety of factors, some of which are beyond our control, such as:

the impact of the global COVID-19 pandemic, inflation and geopolitical tensions on our customers, supply chain or manufacturing capabilities;

the impact of certain climate-related disturbances, such as recent flooding Germany and other parts of Europe;

the timing of government stimulus programs and university research budgets;

the time it takes from the date customer orders and deposits are received, systems are shipped and accepted by our customers, and full payment is received;

foreign currency exchange rates;

the time it takes for us to receive materials essential to manufacture our products;

general economic conditions, including the impact of COVID-19 or other factors on the global economy;

the time it takes to meet local customs and other export/import requirements;

the time required for customers to build or prepare their facilities for our products; and

the time required to obtain government licenses.

Several of these factors have in the past affected the amount and timing of
revenue recognized on sales of our products and receipt of related payments and
will likely continue to do so in the future. Accordingly, our operating results
in any particular quarter may not necessarily be an indication of any future
quarter's operating performance. The COVID-19 pandemic continues to present a
challenging operating environment. Throughout the COVID-19 pandemic, we have
been focused on and continue to focus on three key priorities: the health and
safety of our employees, customers and partners; maintaining business continuity
and service levels for our customers; and delivering enabling research and
diagnostic products to help fight the pandemic, and to support other essential
priorities of our society.

Health and safety of our valued employees, customers and partners

In response to the COVID-19 pandemic, we implemented strict social distancing,
enhanced cleaning protocols and other preventative measures, in our major
facilities to ensure the health and safety of our valued employees, customers
and partners. While many of our office colleagues worked remotely at the height
of the pandemic and through subsequent surges, we placed enhanced focus on our
service organization and factory employees for whom work from home was not
feasible. Where customer sites were accessible and open, our field service
organizations operated under social distancing protocols with proper face
coverings to ensure the safety of customer sites, when our employees needed to
be on site. Consistent with local government and health organization guidelines,
many of our facilities have started a gradual return to the office for employees
who have been working remotely. As we continue to monitor developments and make
appropriate adjustments, as needed, employee and visitor health and safety will
remain our paramount concern.

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Maintain business continuity and service levels to our customers

Ensuring our ability to supply our enabling technologies and solutions and
maintaining high service levels for our customers is another top priority for
Bruker. In late March and during parts of April 2020, several of our
manufacturing sites underwent temporary controlled shutdowns or were operating
at reduced capacity to implement new safety protocols, comply with local rules,
and manage cost and inventory levels. These sites thereafter ramped back up with
expanding capacity and productivity levels. However, with any resurgence of the
virus or the emergence of additional strains of the virus, particularly any new
strains of the virus that are more resistant to existing vaccines, we may again
need to consider temporary controlled shutdowns or reduced capacity measures. In
addition, we are continuing capital investments in production facilities for
efficiencies and expansion. We continue to manage supply chain risks, more
recently associated with the economic recovery from the pandemic and
geopolitical tensions and, the worldwide shortage of semiconductor chips,
components and raw materials, such as copper.

To provide enabling research and diagnostic products to help fight the pandemic and support other critical priorities of our society

Bruker provides essential technologies and solutions to help fight the COVID-19 pandemic, including our microbiology and infectious disease diagnostics portfolio and our nuclear magnetic resonance and mass spectrometry systems that are used in research on critical illnesses, therapeutics and vaccines.

The COVID-19 global pandemic has driven volatility and uncertainty in global
markets and has in the past affected our operations significantly. We continue
to work to manage the impact of COVID-19 on our operations; however, the full
extent to which any resurgence of the virus, the emergence of any new strains of
the virus, or the availability and effectiveness of COVID-19 vaccines will
impact our business, directly or indirectly, cannot accurately be predicted at
this time. We continue to monitor the impact of COVID-19 on our business and our
supply chain and respond accordingly. For additional information on the various
risks posed by the COVID-19 pandemic, refer to Item 1A. Risk Factors included in
this report.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

This discussion and analysis of our financial condition and results of
operations is based upon our unaudited condensed consolidated financial
statements, which have been prepared in accordance with GAAP. The preparation of
these financial statements requires that we make estimates and assumptions that
affect the reported amounts of assets and liabilities and the disclosure of
contingent assets and liabilities at the date of the financial statements and
reported amounts of revenues and expenses during the reporting period. On an
ongoing basis, management evaluates its estimates and judgments, including those
related to: revenue recognition; stock-based compensation expense; restructuring
and other related charges; income taxes, including the recoverability of
deferred tax assets; allowances for doubtful accounts; inventory reductions for
excess and obsolete inventories; estimated fair values of long-lived assets used
to measure the recoverability of long-lived assets; intangible assets and
goodwill; expected future cash flows used to measure the recoverability of
intangible assets and long-lived assets; warranty costs; derivative financial
instruments; and contingent liabilities. We base our estimates and judgments on
our historical experience, current market and economic conditions, industry
trends, and other assumptions that we believe are reasonable and form the basis
for making judgments about the carrying value of assets and liabilities that are
not readily apparent from other sources. Actual results could differ from these
estimates.

We believe the following critical accounting policies and estimates to be both
those most important to the portrayal of our financial position and results of
operations and those that require the most estimation and subjective judgment:

•
Revenue recognition;

•
Income taxes;

•
Inventories;

•

Good will, other intangible assets and other long-lived assets; and

Business combinations.

For a more in-depth discussion of our critical accounting policies, please refer to our Annual Report on Form 10-K for the year ended December 31, 2021.

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RESULTS OF OPERATIONS

Three months completed March 31, 2022 compared to the three months ended March 31, 2021

Consolidated Results

The following table presents our results (in millions):

                                             Three Months Ended
                                                  March 31,
                                                                          Dollar        Percentage
                                             2022           2021          Change          Change
Product revenue                           $    490.4      $   458.6     $     31.8              6.9 %
Service revenue                                103.2           94.1            9.1              9.7 %
Other revenue                                    1.4            2.0           (0.6 )          (30.0 )%
Total revenue                                  595.0          554.7           40.3              7.3 %
Cost of product revenue                        229.0          220.9            8.1              3.7 %
Cost of service revenue                         59.6           54.8            4.8              8.8 %
Cost of other revenue                            0.1            0.3           (0.2 )          (66.7 )%
Total cost of revenue                          288.7          276.0           12.7              4.6 %
Gross profit                                   306.3          278.7           27.6              9.9 %
Operating expenses:
Selling, general and administrative            145.7          131.8           13.9             10.5 %
Research and development                        56.6           54.8            1.8              3.3 %
Other charges, net                               7.5            3.0            4.5            150.0 %
Total operating expenses                       209.8          189.6           20.2             10.7 %
Operating income                                96.5           89.1            7.4              8.3 %
Interest and other income (expense),
net                                             (2.5 )         (3.8 )          1.3            (34.2 )%
Income before income taxes and
noncontrolling interest in
  consolidated subsidiaries                     94.0           85.3            8.7             10.2 %
Income tax provision                            31.9           27.5            4.4             16.0 %
Consolidated net income                         62.1           57.8            4.3              7.4 %
Net income attributable to
noncontrolling interests in
  consolidated subsidiaries                      0.5            1.1           (0.6 )          (54.5 )%
Net income attributable to Bruker
Corporation                               $     61.6      $    56.7     $      4.9              8.6 %




Revenue

Revenue increases were driven by strong demand for our differentiated instruments and solutions compared to the same period in 2021.

Gross profit

The increase in gross profit in the three months ended March 31, 2022, as
compared to the same period in 2021, was a result of higher revenue and volume
leverage and from differentiated instruments and solutions, partially offset by
inflationary margin challenges in 2022.

Selling, general and administrative expenses

Our selling, general and administrative expenses for the three months ended
March 31, 2022 increased to 24.5% of total revenue, from 23.8% of total revenue
for the comparable period in 2021. The increase as a percentage of revenue was a
result of the timing of certain sales and marketing investments, driven by
higher freight, logistics and commission costs.

Research and development

Our research and development expenses for the three months ended March 31, 2022
decreased to 9.5% of total revenue from 9.9% of total revenue for the comparable
period in 2021. The decrease as a percentage of revenue was a result of the
increase in revenue period over period.

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Other expenses, net

Other charges, net recorded for the three months ended March 31, 2022 consisted
of $5.1 million of acquisition-related charges related to acquisitions completed
in 2022 and 2021, $1.0 million of costs associated with our global information
technology (IT) transformation activities, $0.7 million related to suspension of
operations in Russia, $0.4 million of professional fees incurred in connection
with investigation matters, and $0.3 million of restructuring costs. The IT
transformation initiative is a multi-year project aimed at updating and
integrating our global enterprise resource planning and human resource
information systems.

Other charges, net for the three months ended March 31, 2021 consisted primarily
of $1.3 million of restructuring costs, $0.9 million of acquisition-related
charges related to acquisitions completed in 2021 and 2020, $0.7 million of
costs associated with our global IT transformation initiative and $0.1 million
of professional fees incurred in connection with investigation matters.

Operating result

The increase in operating income was due to higher gross margin resulting from
differentiated products and operating leverage, partially offset by inflationary
margin challenges in 2022, as compared to 2021.

Interest and other income (expenses), net

The decline in net interest and other income (expense) in the three months ended
March 31, 2022, as compared to the same period in 2021 was mainly due to other
strategic investment activity.

Provision for income tax

The 2022 and 2021 effective tax rates were estimated using projected annual
pre-tax income on a jurisdictional basis. Expected tax benefits, including tax
credits and incentives, the impact of changes to valuation allowances and the
effect of jurisdictional differences in statutory tax rates were also considered
in the calculation.

The effective tax rates for the three months ended March 31, 2022 and 2021 were
33.9% and 32.2%, respectively. The increase in our effective tax rate was
primarily due to i) the impact of legislation that became effective during the
quarter limiting the deductibility of R&D and the benefit relating to foreign
tax credits and ii) the settlement of a tax audit.

Net income (loss) attributable to non-controlling interests

The net income (loss) attributable to noncontrolling interests represented the
minority shareholders' proportionate share of the net income recorded by our
majority-owned subsidiaries.

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Reportable Segment Revenue

The following table shows revenue, revenue development and revenue growth by reportable segment (in millions):

                     Three Months Ended
                          March 31,
                                               Dollar      Percentage
                      2022          2021       Change        Change
BSI Life Science   $    361.0      $ 351.8     $   9.2             2.6 %
BSI Nano                178.5        154.4        24.1            15.6 %
BEST                     59.7         52.4         7.3            13.9 %
Eliminations (a)         (4.2 )       (3.9 )      (0.3 )
Total revenue      $    595.0      $ 554.7     $  40.3             7.3 %


(a)

Represents revenue from products and services between reportable segments.

For financial reporting purposes, we aggregate the Bruker BioSpin Group and
Bruker CALID Group as the BSI Life Science segment. This aggregation reflects
the similar economic characteristics, production processes, customer services
provided, types and classes of customers, methods of distribution and regulatory
environments.

The increase in revenue for the BSI Life Science segment in the three months
ended March 31, 2022 was due to strong demand, business and end market recovery,
and was led by growth in Preclinical Imaging (PCI) and Microbiology and
Diagnostic solutions. The increase in revenue for the BSI Nano segment was
driven by industrial research demand and continued strong demand from
semiconductor and microelectronics customers. The increase in revenue for the
BEST segment resulted from demand from superconductors for healthcare MRI in the
three months ended March 31, 2022.

Operating result

The following table shows operating profit and operating margin on sales by reportable segment (in millions):

                                                               Three Months Ended March 31,
                                                       2022                                    2021
                                                             Percentage of                           Percentage of
                                           Operating            Segment            Operating            Segment
                                         Income (Loss)          Revenue          Income (Loss)          Revenue
BSI Life Science                        $          85.9                23.8 %   $          88.9                25.3 %
BSI Nano                                           22.3                12.5 %              12.3                 8.0 %
BEST                                                6.6                11.1 %               4.1                 7.8 %
Corporate, eliminations and other (a)             (18.3 )                                 (16.2 )
Total operating income                  $          96.5                16.2 %   $          89.1                16.1 %


(a)

Represents corporate costs and eliminations not allocated to reportable segments.

The operating margin increases in the BSI Life Science and BSI Nano segments was
primarily due to higher gross margin resulting from differentiated products and
operating leverage, partially offset by planned commercial investments. The
operating margin increase in the BEST segment resulted from higher revenue and
favorable mix.

CASH AND CAPITAL RESOURCES

We anticipate that our existing cash and credit facilities will be sufficient to
support our operating and investing needs for at least the next twelve months.
Our future cash requirements could be affected by acquisitions that we may
complete, purchases of our common stock or the payment of dividends in the
future. Historically, we have financed our growth and liquidity needs through
cash flow generation from operations and a combination of debt financings and
issuances of common stock. In the future, there are no assurances that we will
continue to generate cash flow from operations or that additional financing
alternatives will be available to us, if required, or if available, will be
obtained on terms favorable to us.

Cash, cash equivalents and short-term investments at March 31, 2022 and December
31, 2021 totaled $916.1 million and $1,168.2 million, respectively, of which
$607.5 million and $646.9 million, respectively, related to cash, cash
equivalents and short-term investments held outside of the U.S. in our foreign
subsidiaries, most significantly in the Netherlands, Switzerland and Hong Kong.

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The following table presents our cash flows from operating activities, investing
activities and financing activities for the periods presented (in millions):

                                                          Three Months Ended March 31,
                                                            2022                 2021
Net cash provided by operating activities              $          77.8       $        98.0
Net cash used in investing activities                           (101.8 )             (24.0 )
Net cash used in financing activities                           (217.4 )             (38.1 )
Effect of exchange rate changes on cash, cash
equivalents and restricted cash                                  (10.7 )    

(21.0) Net change in cash, cash equivalents and restricted cash

                                                   $        (252.1 )    

$14.9


Cash provided by operating activities during the three months ended March 31,
2022 resulted primarily from consolidated net income adjusted for non-cash items
of $81.6 million, partially offset by a change in operating assets and
liabilities, net of acquisitions and divestitures of $3.8 million. The decrease
was primarily due to strategic inventory management to handle supply chain
challenges, timing of tax payment payables partially offset by customer advances
received during the period for related to new orders. Cash provided by operating
activities during the three months ended March 31, 2021 resulted primarily from
consolidated net income adjusted for non-cash items of $93.7 million, in
addition to a change in operating assets and liabilities, net of acquisitions
and divestitures of $4.3 million. The increase in operating assets and
liabilities, net of acquisitions and divestitures for the three months ended
March 31, 2021 was primarily due to higher payables and accrued liabilities as
well as timing of income tax payables offset by improved inventory turnover
within the same period of the prior year.

Cash used in investing activities during the three months ended March 31, 2022
resulted primarily from acquisitions of $83.8 million, purchases of property,
plant and equipment of $19.0 million, and strategic investments of $12.0
million, offset by $12.7 million of net proceeds from sales of property, plant
and equipment. Cash used in investing activities during the three months ended
March 31, 2021 was primarily attributed to cash paid for net purchases of
property, plant and equipment of $24.7 million, cash paid for acquisitions, net
of cash acquired of $4.0 million, offset by $3.5 million from proceeds of
cross-currency swap agreements.

Net cash used in financing activities during the three months ended March 31,
2022 was primarily from cash paid for purchases of common stock under our
repurchase program of $105.6 million, repayment of our 2012 Note Purchase
Agreement of $105.0 million and $7.5 million for the payment of dividends. Net
cash used in financing activities during the three months ended March 31, 2021
was primarily from cash paid for repurchases of common stock under our
Repurchase Program of $32.6 million and $6.1 million for the payment of
dividends, partially offset by proceeds of $1.1 million from the exercise of
stock options.

Share Repurchase Program

In May 2019, our Board of Directors approved our share repurchase program (the
"2019 Repurchase Program") under which repurchases of common stock in the amount
of up to $300.0 million were authorized to occur from time to time, in amounts,
at prices, and at such times as we deem appropriate, subject to market
conditions, legal requirements and other considerations. During the three months
ended March 31, 2021, we purchased 530,729 shares of common stock with an
aggregate cost of approximately $32.8 million under the 2019 Repurchase Program.
We completed the 2019 Repurchase Program in April 2021, after reaching the
maximum cumulative spend.

In May 2021, our Board of Directors approved a share repurchase program (the
"2021 Repurchase Program") authorizing the purchase of up to $500.0 million of
our common stock over a two-year period from time to time, in amounts, at
prices, and at such times as we deem appropriate, subject to market conditions,
legal requirements and other considerations. During the three months ended March
31, 2022, we purchased 1,603,055 shares of common stock with an aggregate cost
of approximately $105.6 million under the 2021 Repurchase Program. At March 31,
2022, $275.5 million remained for future purchase under the 2021 Repurchase
Program. We intend to fund any additional repurchases from cash on hand, future
cash flows from operations and available borrowings under our revolving credit
facility. The purchased shares are reflected within Treasury stock in the
accompanying unaudited condensed consolidated balance sheets.

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Credit facilities

On December 7, 2021, we entered into a note purchase agreement to issue and sell
CHF 300 million aggregate principal amount of 0.88% series A senior notes and
EUR 150 million aggregate principal amount of 1.03% series B senior notes due
December 8, 2031. We designated our CHF 300 million series A senior notes as a
hedge in our net investment in our Swiss Franc denominated net assets. We
designated our EUR 150 million series B senior notes as a hedge in our net
investment in our EUR denominated net assets. Proceeds of the notes will be used
for general corporate purposes.

On December 11, 2019, we entered into (1) a new revolving credit agreement to
establish a new revolving credit facility in the aggregate principal amount of
$600 million; (2) a term loan agreement to establish a new term loan facility in
the aggregate principal amount of $300 million; and (3) a note purchase
agreement to issue and sell CHF 297 million aggregate principal amount of 1.01%
senior notes due December 11, 2029. Floating interest rates under the term loan
were simultaneously fixed through cross-currency and interest rate swap
agreements into Euro ($150 million) and Swiss Franc ($150 million) rates
carrying average effective interest rates of 0.94% and hedge our net investment
in our Euro and Swiss Franc denominated net assets. The new revolving credit
agreement replaced our $500 million five-year revolving credit agreement
established on October 27, 2015, that was terminated on December 11, 2019.

In addition, we designated our CHF 297 million senior notes as a hedge in our
net investment in our Swiss Franc denominated net assets. Proceeds from this
financing were used to repay the outstanding borrowings under our prior 2015
revolving credit facility and we intend to use the remaining proceeds for
general corporate purposes and to support corporate strategic objectives. During
December 2019, we entered into U.S. Dollar to Euro cross-currency swaps on our
existing 2012 private placement notes of $105 million 4.31% Series 2012A Senior
Notes, Tranche C, repaid in January 2022, and the existing $100 million of 4.46%
Series 2012A Senior Notes, Tranche D, due January 18, 2024, resulting in an
average effective interest rate of 2.25% on these instruments. The
cross-currency swaps hedge our net investment in our Euro denominated net
assets.

As of March 31, 2022, we have several cross-currency and interest rate swap
agreements with a notional value of $149.3 million of U.S. to Swiss Franc and a
notional value of $249.3 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. As a result of entering into these
agreements, the Company lowered net interest expense by $1.1 million and $1.4
million during the three months ended March 31, 2022 and 2021, respectively. We
anticipate these swap agreements will lower net interest expense in future
years.

We had the following outstanding debt (in millions):

                                                      March 31,         

the 31st of December,

                                                        2022                

2021

EUR notes (in U.S. dollars) under the 2021 Note
Purchase Agreement                                 $         166.3     $    

170.7

CHF notes (in U.S. dollars) under the 2021 Note
Purchase Agreement                                           325.4          

329.2

CHF notes (in U.S. dollars) under the 2019 Note
Purchase Agreement                                           322.2          

325.9

U.S. Dollar notes under the 2019 Term Loan                   298.5          

299.2

U.S. Dollar notes under the 2012 Note Purchase
Agreement                                                    100.0          

205.0

Unamortized debt issuance costs                               (1.9 )              (2.0 )
Other loans                                                    1.8          

1.9

Total notes and loans outstanding                          1,212.3             1,329.9
Finance lease obligations                                      4.1                 4.3
Total debt                                                 1,216.4             1,334.2
Current portion of long-term debt                            (11.0 )            (112.4 )
Total long-term debt, less current portion         $       1,205.4     $    

1,221.8

From March 31, 2022we had no off-balance sheet arrangements.

The following is a summary of the maximum commitments and the net amounts
available to us under the 2019 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
March 31, 2022 (in millions):

                                Weighted         Total Amount                           Outstanding         Total
                                 Average         Committed by        

Amount bills in circulation

                              Interest Rate         Lenders          Borrowings           Credit          Available
2019 Credit Agreement                    1.3 %   $       600.0     $             -     $         0.1     $     599.9
Bank guarantees and
working capital line                  varies             110.3                   -             110.3               -
Total revolving lines of
credit                                           $       710.3     $             -     $       110.4     $     599.9




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From March 31, 2022we complied with the financial covenants of these debt agreements.

RECENT ACCOUNTING PRONOUNCEMENTS

Information regarding recent accounting standard changes and developments is
incorporated by reference from Part I, Item 1, Unaudited Condensed Consolidated
Financial Statements, of this document and should be considered an integral part
of this Item 2. See Note 2 in the Notes to the Unaudited Condensed Consolidated
Financial Statements in this Quarterly Report on Form 10-Q for recently adopted
and issued accounting standards.

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