Unaudited Quarterly Results

12 Months Ended

Dec. 31, 2022

19 Unaudited Quarterly Results

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


	First			Second			Third			Fourth
2022	Quarter			Quarter			Quarter			Quarter			Total
Net sales	$	690,572		$	714,319		$	708,555		$	858,510		$	2,971,956
Costs and operating expenses:
Cost of sales		285,685			307,206			307,101			348,190			1,248,182
Selling and administrative expenses		157,475			161,877			164,417			174,257			658,026
Research and development expenses		40,472			44,006			43,435			48,277			176,190
Purchased intangibles amortization		1,673			1,598			1,592			1,503			6,366
Acquired in-process research and development		9,797			—			—			—			9,797

Total costs and operating expenses		495,102			514,687			516,545			572,227			2,098,561

Operating income		195,470			199,632			192,010			286,283			873,395
Other income (expense), net		170			1,535			895			(372	)		2,228
Interest expense		(11,059	)		(11,419	)		(12,420	)		(13,899	)		(48,797	)
Interest income		2,114			2,526			2,896			3,484			11,020

Income before income taxes		186,695			192,274			183,381			275,496			837,846
Provision for income taxes		26,864			27,410			27,383			48,434			130,091

Net income	$	159,831		$	164,864		$	155,998		$	227,062		$	707,755

Net income per basic common share		2.64			2.74			2.61			3.83			11.80
Weighted-average number of basic common shares		60,580			60,206			59,801			59,329			59,985
Net income per diluted common share		2.62			2.72			2.60			3.81			11.73
Weighted-average number of diluted common shares and equivalents		60,952			60,510			60,081			59,644			60,331


	First			Second			Third			Fourth
2021	Quarter			Quarter			Quarter			Quarter			Total
Net sales	$	608,545		$	681,647		$	659,233		$	836,449		$	2,785,874
Costs and operating expenses:
Cost of sales		254,147			280,254			271,128			351,004			1,156,533
Selling and administrative expenses		143,196			158,213			152,545			173,014			626,968
Research and development expenses		38,092			44,949			41,986			43,331			168,358
Purchased intangibles amortization		1,840			1,809			1,759			1,735			7,143
Litigation provisions		—			—			—			5,165			5,165
Total costs and operating expenses		437,275			485,225			467,418			574,249			1,964,167

Operating income		171,270			196,422			191,815			262,200			821,707
Other income (expense), net		9,359			9,321			(607	)		(870	)		17,203
Interest expense		(10,946	)		(12,027	)		(11,081	)		(10,884	)		(44,938	)
Interest income		4,101			3,698			2,548			1,874			12,221

Income before income taxes		173,784			197,414			182,675			252,320			806,193
Provision for income taxes		25,657			30,122			21,490			36,081			113,350

Net income	$	148,127		$	167,292		$	161,185		$	216,239		$	692,843

Net income per basic common share		2.38			2.71			2.63			3.55			11.25
Weighted-average number of basic common shares		62,260			61,685			61,359			60,984			61,575
Net income per diluted common share		2.37			2.69			2.60			3.52			11.17
Weighted-average number of diluted common shares and equivalents		62,632			62,157			61,888			61,423			62,028

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.

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 (expense), net in the consolidated statement of operations.

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

(expense), net

in our consolidated statement of operations. This settlement was recorded in

other

income

(expense), net in our consolidated statement of operations