Unaudited Quarterly Results

12 Months Ended

Dec. 31, 2020

19 Unaudited Quarterly Results

The Company’s unaudited quarterly results are summarized below (in thousands, except per share data):


	First			Second			Third			Fourth
2020	Quarter			Quarter			Quarter			Quarter			Total
Net sales	$	464,939		$	519,984		$	593,784		$	786,658		$	2,365,365
Costs and operating expenses:
Cost of sales		210,644			213,134			262,342			320,569			1,006,689
Selling and administrative expenses		147,735			117,449			135,430			153,084			553,698
Research and development expenses		34,989			31,155			34,971			39,662			140,777
Purchased intangibles amortization		2,625			2,618			2,657			2,687			10,587
Asset impairments		—			—			—			6,945			6,945
Litigation provisions		666			514			—			—			1,180

Total costs and operating expenses		396,659			364,870			435,400			522,947			1,719,876

Operating income		68,280			155,114			158,384			263,711			645,489
Other (expense) income		(374	)		(736	)		(1,039	)		374			(1,775	)
Interest expense		(14,079	)		(13,018	)		(10,915	)		(11,058	)		(49,070	)
Interest income		4,036			4,003			4,007			4,224			16,270

Income before income taxes		57,863			145,363			150,437			257,251			610,914
Provision for income taxes		4,301			22,434			23,668			38,940			89,343

Net income	$	53,562		$	122,929		$	126,769		$	218,311		$	521,571

Net income per basic common share		0.86			1.98			2.04			3.51			8.40
Weighted-average number of basic common shares		62,232			61,944			62,002			62,170			62,094
Net income per diluted common share		0.86			1.98			2.03			3.49			8.36
Weighted-average number of diluted common shares and equivalents		62,626			62,184			62,303			62,501			62,414


	First			Second			Third			Fourth
2019	Quarter			Quarter			Quarter			Quarter			Total
Net sales	$	513,862		$	599,162		$	577,278		$	716,294		$	2,406,596
Costs and operating expenses:
Cost of sales		221,031			249,546			241,055			299,068			1,010,700
Selling and administrative expenses		134,339			133,208			126,036			141,208			534,791
Research and development expenses		35,060			36,490			34,333			37,072			142,955
Purchased intangibles amortization		2,281			2,264			2,619			2,529			9,693

Total costs and operating expenses		392,711			421,508			404,043			479,877			1,698,139

Operating income		121,151			177,654			173,235			236,417			708,457
Other expense		(525	)		(342	)		(496	)		(2,223	)		(3,586	)
Interest expense		(11,563	)		(11,448	)		(11,456	)		(14,223	)		(48,690	)
Interest income		8,315			5,871			3,455			4,417			22,058

Income before income taxes		117,378			171,735			164,738			224,388			678,239
Provision for income taxes		8,392			27,325			26,605			23,719			86,041

Net income	$	108,986		$	144,410		$	138,133		$	200,669		$	592,198

Net income per basic common share		1.52			2.09			2.09			3.15			8.76
Weighted-average number of basic common shares		71,704			68,989			66,226			63,795			67,627
Net income per diluted common share		1.51			2.08			2.07			3.12			8.69
Weighted-average number of diluted common shares and equivalents		72,415			69,494			66,768			64,348			68,166

The Company typically experiences an increase in sales in the fourth quarter, as a result of purchasing habits for capital goods of customers that tend to exhaust their spending budgets by calendar year end. Selling and administrative expenses are typically higher after the first quarter in each year as the Company’s annual payroll merit increases take effect. Selling and administrative expenses will vary in the fourth quarter in relation to performance in the quarter and for the year.

During the fourth quarter of 2020, the Company recorded a

non-cash

charge of $10 million for the impairment of certain intangible assets associated with its 2014 acquisition of Medimass. The impairment charge was due to a shift in strategic priorities. In conjunction with the intangible asset impairment the Company also reduced its liability for contingent consideration of $3 million during 2020 as the carrying value of this liability is based on the future sales of the Medimass intangible assets that were impaired. The net impact of $7 million is reported separately within the

consolidated statements of operations