
	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

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, however during the second quarter of 2020, the Company’s selling and administrative expenses decreased compared to the first quarter of 2020 as a result of severance-related costs incurred during the first quarter of 2020 in connection with a reduction in workforce and lease-termination and exit costs. These costs were offset by

COVID-19 and restructuring

cost-saving actions that reduced planned

salaries and non-essential spending,

beginning in the second quarter of 2020 and totaled $70 million for the year. Selling and administrative expenses will vary in the fourth quarter in relation to performance in the quarter and for the year.

During the first quarter of 2021, the Company recorded an unrealized gain of $10 million due to an observable change in fair value of an existing investment the Company does not have the ability to exercise significant influence over. This unrealized gain was recorded in Other income.

During the second quarter of 2021, the Company executed a settlement agreement to resolve patent infringement litigation with Bruker Corporation and Bruker Daltronik GmbH regarding their timsTOF product line. In connection with the settlement, the Company is entitled to receive $10 million in guaranteed payments, including minimum royalty payments, which was recognized within other income in our consolidated statement of operations. This settlement was recorded in Other income.

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.