Financial Performance - Net sales for Q3 2024 were $649.7 million, a 2.8% increase from $632.1 million in Q3 2023, with a 3.4% increase on a currency neutral basis [123]. - Net sales for the first nine months of 2024 were $1.90 billion, a decrease of 4.6% from $1.99 billion in the same period of 2023, with a 4.0% decrease on a currency neutral basis [135]. - Life Science segment sales for Q3 2024 were $260.9 million, a decrease of 1.0% year-over-year, with a 0.6% decrease on a currency neutral basis [124]. - Life Science segment sales for the first nine months of 2024 were $753.1 million, a decrease of 15.1% year-over-year, with a 14.8% decrease on a currency neutral basis [136]. - Clinical Diagnostics segment sales for Q3 2024 were $388.8 million, a 5.6% increase year-over-year, with a 6.4% increase on a currency neutral basis [125]. - Clinical Diagnostics segment sales for the first nine months of 2024 were $1.1 billion, an increase of 4.1% year-over-year, with a 4.8% increase on a currency neutral basis [137]. Expenses and Margins - Consolidated gross margin for Q3 2024 was 54.8%, up from 53.1% in Q3 2023, driven by cost control measures and product mix [126]. - R&D expense for Q3 2024 was $91.0 million, or 14.0% of sales, compared to $43.5 million, or 6.9% of sales in Q3 2023, primarily due to a one-time acquired in-process R&D expense [128]. - SG&A expense for the first nine months of 2024 was $610.0 million, or 32.1% of sales, down from $634.6 million, or 31.9% of sales in the same period of 2023 [141]. Cash Flow and Investments - Net cash provided by operations increased to $331.0 million for the nine months ended September 30, 2024, compared to $293.9 million for the same period in 2023 [152]. - Net cash used in investing activities rose to $129.7 million for the nine months ended September 30, 2024, from $52.0 million in 2023, primarily due to higher payments for acquired in-process research and development [153]. - Net cash used in financing activities decreased to $192.6 million for the nine months ended September 30, 2024, down from $225.0 million in 2023, mainly due to lower payments for treasury stock purchases [154]. - During the third quarter of 2024, the company repurchased 330,381 shares of Class A common stock for $97 million under the 2023 Share Repurchase Program, with $577.1 million remaining available for future repurchases [156]. Tax and Financial Position - Effective income tax rate for Q3 2024 was 24.2%, compared to 22.5% in Q3 2023, primarily affected by the geographical mix of earnings [134]. - As of September 30, 2024, the company had $1.63 billion in cash, cash equivalents, and short-term investments, with approximately 16% held in foreign subsidiaries [150]. - The company had no outstanding borrowings under its $200.0 million unsecured Revolving Credit Agreement as of September 30, 2024 [148]. Operational Insights - The increase in operating cash flows was primarily due to lower cash paid to suppliers and employees, despite lower cash received from customers [152]. - The company regularly monitors the mix of domestic and foreign cash flows as part of its ongoing liquidity assessments [150]. - The company intends to repatriate certain foreign earnings as long as local laws do not restrict such actions and there are no substantial incremental costs [151]. - There have been no material changes in market risk disclosures from the previous annual report as of September 30, 2024 [168].

Financial Performance - Total net sales for Q3 2024 were $649.7 million, a 2.8% increase from $632.1 million in Q3 2023[2] - Net income for Q3 2024 was $653.2 million, significantly higher than $106.3 million in Q3 2023, resulting in earnings per diluted share of $23.34 compared to $3.64[6][11] - Gross margin for Q3 2024 was 54.8%, up from 53.1% in Q3 2023[5] - Basic earnings per share for Q3 2024 were $23.37, compared to $3.65 in Q3 2023, showing strong profitability growth[34] - GAAP net income for the quarter was $653,172,000, a significant increase of 100.5% compared to $106,257,000 in the previous year[44] Segment Performance - Life Science segment net sales decreased by 1.0% to $260.9 million compared to Q3 2023, while Clinical Diagnostics segment net sales increased by 5.6% to $388.8 million[3][4] - The increase in Clinical Diagnostics sales was primarily driven by higher demand for quality control products and a favorable comparison for immunology products[4] Margins and Expenses - Non-GAAP gross margin was 55.6% for Q3 2024, compared to 53.9% in Q3 2023[9] - Non-GAAP operating margin is estimated to be between 12.75% to 13.25% for the full year 2024[13] - Research and development expenses increased significantly to $90,997,000 in Q3 2024 from $43,535,000 in Q3 2023, indicating a focus on innovation[34] - GAAP income from operations was $64,466,000, reflecting a margin of 9.9%, compared to 14.4% in the prior year[43] - Non-GAAP income from operations was $73,294,000, with a margin of 11.3%, compared to 12.9% year-over-year[43] Cash Flow and Assets - Cash provided by operating activities for Q3 2024 was $331,048,000, an increase from $293,896,000 in Q3 2023[38] - Total assets decreased to $10,603,472,000 as of September 30, 2024, from $12,299,070,000 at the end of 2023[36] - Total stockholders' equity decreased to $7,487,859,000 as of September 30, 2024, from $8,741,133,000 at the end of 2023[36] Tax and Compliance - The effective tax rate for Q3 2024 was 24.2%, up from 22.5% in Q3 2023[7] - The company is focused on compliance with the European Union's In Vitro Diagnostics Regulation (IVDR) for previously approved products, indicating a strategic move towards regulatory alignment[46] Future Outlook - The company expects non-GAAP revenue to decline by approximately 2.5% to 4.0% on a currency-neutral basis for the full year 2024[13] - The forecasted non-GAAP operating margin for 2024 excludes 85 basis points related to amortization of purchased intangibles, indicating a focus on maintaining operational efficiency[47] - The company anticipates future gains and charges that are difficult to predict, including those related to foreign currency fluctuations and legal matters[47] Other Financial Metrics - Non-GAAP net income was $56,362,000, representing 8.7% of revenue, compared to 10.8% in the prior year[44] - Adjusted EBITDA for the current period was $106,861, reflecting a 16.4% margin, while the previous period's adjusted EBITDA was $112,736 with a 17.8% margin[45] - The company reported a significant loss from changes in fair market value of equity securities amounting to $(792,888,000)[44] - Interest expense for the current period was $12,174, slightly down from $12,398 in the previous period[45] - The company incurred restructuring costs of $1,441, which is a decrease from $1,532 in the previous period[45] - Other non-recurring items amounted to $1,663, compared to $1,877 in the previous period[45]

Financial Performance - Net sales for Q2 2024 were $638.5 million, a decrease of 6.3% from $681.1 million in Q2 2023, with a currency neutral decrease of approximately 5.4%[110] - Net sales for the first six months of 2024 were $1.25 billion, an 8.0% decrease from $1.36 billion in the first six months of 2023[117] - Life Science segment sales for Q2 2024 were $250.5 million, down 16.5% year-over-year, driven by ongoing weakness in the biotech and biopharma markets[110] - Life Science segment sales for the first six months of 2024 were $492.2 million, down 21.1% year-over-year, with a currency neutral decrease of 20.8%[117] - Clinical Diagnostics segment sales for Q2 2024 were $387.9 million, an increase of 2.1% year-over-year, with a currency neutral increase of 3.2%[111] - Clinical Diagnostics segment sales for the first six months of 2024 were $756.6 million, an increase of 3.3% year-over-year, with a currency neutral increase of 4.0%[118] Expenses and Margins - Consolidated gross margin for Q2 2024 was 55.6%, up from 53.2% in Q2 2023, driven by cost control measures and product mix[112] - Selling, general and administrative (SG&A) expense for Q2 2024 was $194.7 million, or 30.5% of sales, compared to $207.8 million, or 30.5% of sales in Q2 2023[113] - Research and development (R&D) expense for Q2 2024 was $58.9 million, or 9.2% of sales, down from $65.0 million, or 9.5% of sales in Q2 2023[113] Cash Flow and Investments - Net cash provided by operations decreased to $167.4 million for the six months ended June 30, 2024, down from $196.2 million in 2023, primarily due to lower cash received from customers and higher income tax paid[125] - Net cash used in investing activities increased to $74.0 million for the six months ended June 30, 2024, compared to $42.5 million in 2023, driven by higher capital expenditures and the timing of marketable securities transactions[126] - Net cash used in financing activities decreased to $96.6 million for the six months ended June 30, 2024, from $198.4 million in 2023, mainly due to lower treasury stock purchases[127] Share Repurchase and Stock Activity - During Q2 2024, the company repurchased 346,226 shares of Class A common stock for $100 million under the 2023 Share Repurchase Program, with $174.0 million remaining available for future repurchases[128] - The board of directors authorized an increase in the 2023 Share Repurchase Program by an additional $500 million for repurchasing outstanding common stock[128] - The company reissued 21,017 shares of Class A treasury stock at a total cost of $7.4 million during Q2 2024 to fulfill employee grants[128] Market Risk and Accounting - There were no material changes in market risk disclosures compared to the previous annual report for the year ended December 31, 2023[133] - The company did not adopt any new accounting pronouncements during the three and six months ended June 30, 2024[132] Losses - Losses from change in fair market value of equity securities and loan receivable were $2.90 billion in Q2 2024, compared to $1.60 billion in Q2 2023[115]

Financial Performance - Total net sales for Q2 2024 were $638.5 million, a decrease of 6.3% compared to $681.1 million in Q2 2023[1] - Life Science segment net sales decreased by 16.5% to $250.5 million, primarily due to weakness in biotech and biopharma markets[2] - Clinical Diagnostics segment net sales increased by 2.1% to $387.9 million, driven by demand for quality control and blood typing products[2] - The company reported a net loss of $2,165.5 million, or $76.26 per share, compared to a net loss of $1,162.3 million, or $39.59 per share, in the same period last year[5] - Non-GAAP net income for Q2 2024 was $88.5 million, or $3.11 per share, compared to $88.5 million, or $3.00 per share, in Q2 2023[6] - The company expects non-GAAP revenue to decline by approximately 2.5% to 4.0% for the full year 2024, a revision from previous growth estimates of 1.0% to 2.5%[7] - Non-GAAP operating margin is estimated to be about 12.0% to 13.0%, down from prior estimates of 13.5% to 14.0%[7] Gross Margin and Profitability - Gross margin for Q2 2024 was 55.6%, up from 53.2% in Q2 2023[5] - GAAP gross profit for the quarter was $355,119 million, representing a gross margin of 55.6%[31] - Non-GAAP gross profit was $360,206 million, with a gross margin of 56.4%[31] - GAAP income from operations was $101,496 million, with an operating margin of 15.9%[34] - Non-GAAP income from operations reached $107,058 million, reflecting an operating margin of 16.8%[34] - Adjusted EBITDA reached $138,208, showing a growth of 21.6% compared to the prior year[35] Expenses and Liabilities - Research and development expenses for Q2 2024 were $58,904 thousand, a decrease of 9.5% from $65,042 thousand in Q2 2023[24] - Total liabilities decreased to $2,909,659 thousand as of June 30, 2024, down from $3,557,937 thousand at the end of 2023[26] - The company incurred restructuring costs of $1,421 million during the period[31] - Non-GAAP selling, general and administrative expenses were $193,780 million[31] Cash Flow and Equity - Cash provided by operating activities for Q2 2024 was $167,438 thousand, a decrease from $196,185 thousand in Q2 2023[28] - The company reported a net cash increase of $3,346 thousand for Q2 2024, compared to a decrease of $(44,063) thousand in Q2 2023[28] - Total stockholders' equity decreased to $6,778,787 thousand as of June 30, 2024, from $8,741,133 thousand at the end of 2023[26] Tax and Share Repurchase - The effective tax rate for Q2 2024 was 22.3%, slightly down from 22.5% in Q2 2023[3] - The board authorized an increase of $500 million to the 2023 Share Repurchase Program, bringing the total available for repurchases to approximately $578 million[8] Non-GAAP Measures - The company utilizes non-GAAP financial measures to provide additional insights into its operational performance, excluding certain non-recurring items[29] - The company does not provide a reconciliation of non-GAAP financial expectations to GAAP measures due to the unpredictable nature of future charges[37] - The forecasted non-GAAP operating margin excludes 89 basis points related to amortization of purchased intangibles[37] Market and Foreign Exchange - The company experienced a foreign currency exchange loss of $(1,699) during the reporting period[35] - The company experienced a significant loss from changes in fair market value of equity securities amounting to $2,895,355 million[34] - Gains from changes in fair market value of equity securities and loan receivable amounting to $2,895,355[35] Share Metrics - The weighted average shares used in the non-GAAP net income per share calculation were 28,395, compared to 29,355 in the previous period[35] - The diluted loss per share was reported at $(76.26), a significant increase from $(39.59) in the previous period[35]

Financial Performance - Net sales for Q1 2024 were $610.8 million, a decrease of 9.8% compared to $676.8 million in Q1 2023[124] - Life Science segment sales decreased by 25.3% to $241.7 million in Q1 2024, driven by weakness in biotech and biopharma markets[124] - Clinical Diagnostics segment sales increased by 4.7% to $368.6 million in Q1 2024, primarily due to increased demand for quality controls and blood typing[125] - Consolidated gross margin for Q1 2024 was 53.4%, slightly down from 53.5% in Q1 2023[126] Expenses - Selling, general and administrative (SG&A) expenses were $214.9 million, or 35.2% of sales, compared to $225.6 million, or 33.3% of sales in Q1 2023[127] - Research and development (R&D) expenses were $66.4 million, or 10.9% of sales, down from $75.0 million, or 11.1% of sales in Q1 2023[128] Cash Flow and Investments - Net cash provided by operations was $69.8 million for Q1 2024, down from $98.1 million in Q1 2023[138] - Cash and short-term investments totaled $1.65 billion as of March 31, 2024, with approximately 16% held in foreign subsidiaries[135] Tax and Gains - The effective income tax rate increased to 21.8% in Q1 2024 from 18.7% in Q1 2023, influenced by geographical mix of earnings[133] - Gains from changes in fair market value of equity securities were $422.2 million in Q1 2024, compared to a loss of $17.5 million in Q1 2023[131]

Financial Performance - First-quarter 2024 total net sales were $610.8 million, a decrease of 9.8% compared to $676.8 million in Q1 2023[2] - Clinical Diagnostics segment net sales increased by 4.7% to $368.6 million, driven by demand for quality control, blood typing, and diabetes products[3] - Life Science segment net sales decreased by 25.3% to $241.7 million, primarily due to weakness in the biotech and biopharma markets[25] - Non-GAAP net income for Q1 2024 was $65.2 million, or $2.29 per share, down from $99.4 million, or $3.34 per share in Q1 2023[8] - The company reported a net income of $383.9 million for Q1 2024, significantly higher than $69.0 million in Q1 2023, primarily due to changes in the fair market value of equity securities[27] - GAAP net income for the current period is $383,916, representing a 62.9% increase compared to $68,962 in the previous period[45] - Non-GAAP net income is reported at $65,217, which is a 10.7% increase from $99,360 in the previous period[45] - Total net sales decreased to $610,820 from $676,844, reflecting a decline of approximately 9.8%[53] Expenses and Margins - Cost of goods sold (GAAP) decreased to $284,854 from $314,427, a reduction of about 9.4%[53] - Research and development expenses decreased to $66,375 from $74,951, a decline of approximately 11.6%[53] - Non-GAAP income from operations is $59,007, which is 9.7% of total revenue, compared to $84,167 or 12.4% in the previous period[45] - GAAP diluted earnings per share is $13.45, up from $2.32 in the previous period[53] - Adjusted EBITDA for the current period is $108,535, representing 17.8% of total revenue, compared to $148,541 or 21.9% in the previous period[46] - Non-GAAP gross margin for Q1 2024 was 54.2%, unchanged from Q1 2023[28] - GAAP gross profit for Q1 2024 was $325,966, accounting for 53.4% of revenue, compared to $362,417 or 53.5% in Q1 2023[56] - Non-GAAP gross profit for Q1 2024 was $330,932, maintaining 54.2% of revenue, consistent with Q1 2023[56] Tax and Financial Outlook - The effective tax rate for Q1 2024 was 21.8%, compared to 18.7% in Q1 2023, influenced by the accounting treatment of equity securities[5] - The company maintains its full-year 2024 financial outlook, expecting non-GAAP, currency-neutral revenue growth of approximately 1.0% to 2.5%[11] - Management expressed cautious optimism about a gradual recovery in the biopharma market in the second half of the year[28] - The financial outlook for 2024 indicates a focus on maintaining operational efficiency and exploring new market opportunities[60] Assets and Liabilities - Total current assets increased to $3,060,936 from $3,048,330, representing a growth of 0.3%[54] - Total liabilities remained stable at $3,558,759, slightly up from $3,557,937[54] - Cash, cash equivalents, and restricted cash at the end of the period were $433,752, down from $464,503[55] - The company’s total stockholders' equity increased to $9,051,134 from $8,741,133, reflecting a growth of 3.5%[54] - The company utilized $406,458 for purchases of marketable securities and investments, compared to $203,588 in the previous year[55] Operational Performance - Income from operations for Q1 2024 was $59.0 million, down from $84.2 million in the prior-year period[29] - The company incurred a loss of $422,177 from changes in the fair market value of equity securities and loan receivables[45] - The forecasted non-GAAP operating margin excludes 87 basis points related to amortization of purchased intangibles[47] - Net cash provided by operating activities decreased to $69,792 from $98,119, a decline of 29.0% year-over-year[55]

Financial Performance - For the year ended December 31, 2023, net sales were $1.18 billion, a decrease of 12.5% compared to 2022, with a currency neutral sales decrease of 12.0% primarily in Asia Pacific and EMEA [147]. - The net loss for 2023 was $23.9 million, significantly improved from a net loss of $129.5 million in 2022 [116]. - The company reported a net loss of $637.324 million for the year ended December 31, 2023 [183]. - The company reported a net loss of $637.3 million for 2023, compared to a net loss of $3.63 billion in 2022 [211]. - Comprehensive loss for 2023 was $506.5 million, compared to a comprehensive loss of $3.92 billion in 2022 [211]. - Cash received from customers for 2023 was $2,684.2 million, a slight decrease of 0.6% from $2,699.4 million in 2022 [238]. - Net cash provided by operating activities increased significantly to $374.9 million from $194.4 million in 2022 [238]. Cost and Expenses - Gross profit margin for 2023 was 53.4%, down from 55.9% in 2022, while cost of goods sold increased to 46.6% from 44.1% [116]. - Research and development expenses were 9.3% of net sales in 2023, slightly up from 9.2% in 2022 [116]. - Research and development expenses for 2023 were $247.4 million, slightly down from $256.9 million in 2022 [209]. - Interest expense increased to $49.4 million in 2023 from $38.1 million in 2022, primarily due to the issuance of $1.2 billion Senior Notes in March 2022 [120]. - Cash used in financing activities was $425.6 million in 2023, compared to cash provided of $973.6 million in 2022, primarily due to higher share repurchase payments [188]. - The total cash paid to suppliers and employees decreased to $2,240.5 million in 2023 from $2,408.0 million in 2022, a reduction of 7.0% [238]. Assets and Liabilities - Total current assets decreased from $3,157.976 million in 2022 to $3,048.330 million in 2023, a decline of approximately 3.4% [174]. - Cash and cash equivalents decreased from $434.215 million in 2022 to $403.815 million in 2023, a decline of about 7.0% [174]. - Short-term investments decreased from $1,356.457 million in 2022 to $1,203.327 million in 2023, a decline of approximately 11.3% [174]. - Inventory increased from $719.316 million in 2022 to $780.517 million in 2023, an increase of about 8.5% [174]. - Total assets decreased from $13,501.666 million in 2022 to $12,299.070 million in 2023, a decline of approximately 8.9% [174]. - Long-term debt, including the current portion, totaled $1,210.1 million, with $401.0 million due in 3-5 years and $807.6 million due in more than 5 years [158]. - The total liabilities as of December 31, 2023, were $3.56 billion, a decrease from $3.89 billion in 2022 [207]. - Long-term debt as of December 31, 2023, was $1,199.1 million, slightly up from $1,197.7 million in 2022 [255]. Taxation - The effective income tax rate may see a decrease in previously unrecognized tax benefits by approximately $17.2 million within the next twelve months [123]. - The effective income tax rates for the years ended December 31, 2023, 2022, and 2021 were 25.0%, 22.9%, and 21.9%, respectively, primarily driven by unrealized gains/losses in equity securities [228]. - The company recorded a current tax expense of $103.2 million for the year ended December 31, 2023, compared to $157.0 million in 2022 [226]. - The total unrecognized tax benefits as of December 31, 2023, were $84.7 million, with accrued interest and penalties amounting to $9.6 million [237]. - The company is currently under examination by various tax authorities, including U.S. federal and state agencies, for tax years 2012 and forward [235]. - The company does not anticipate that the Inflation Reduction Act will have a material impact on its income tax provision and cash taxes [226]. Investments and Financing - Cash provided by investing activities was $20.2 million in 2023, a significant improvement compared to cash used of $1,207.6 million in 2022 [126]. - The company has no outstanding borrowings under its $200 million unsecured revolving credit facility as of December 31, 2023 [124]. - The company had $208.0 million available for borrowing under domestic and international lines of credit as of December 31, 2023 [255]. - Issued $400 million in Senior Notes due 2027 at an effective rate of 3.5346% and $800 million in Senior Notes due 2032 at an effective rate of 3.8429% [257]. - The principal amount of the loan to Sartorius-Herbst Beteiligungen II Gmbh is €400 million, due on January 31, 2029 [281]. - The interest rate on the loan to Sartorius-Herbst Beteiligungen II Gmbh is 1.5% per annum, with interest payable annually in arrears [279]. Equity and Stock - Total stockholders' equity decreased from $9,615.252 million in 2022 to $8,741.133 million in 2023, a decline of approximately 9.1% [183]. - The company’s total stockholders' equity decreased to $8.74 billion in 2023 from $9.62 billion in 2022 [207]. - Share repurchase activity for the year ended December 31, 2023, included a total carrying value of $1,199.1 million for senior notes [278]. - The total balance of Class B shares increased to 5,096 thousand as of December 31, 2023, reflecting ongoing conversions and issuances [276]. Goodwill and Intangible Assets - Goodwill as of December 31, 2023, totaled $748.8 million, with a net goodwill of $413.6 million after accumulated impairment losses of $335.2 million [283]. - The company reported a total of $765.3 million in purchased intangible assets, with a net carrying amount of $320.5 million after accumulated amortization of $444.8 million [285]. - The company conducted a quantitative assessment of goodwill in Q4 2023, concluding that the fair value of reporting units exceeded carrying amounts, indicating no impairment [295]. - The accumulated impairment losses and write-offs for goodwill included $41.8 million for Life Science and $293.4 million for Clinical Diagnostics [283]. - The company recognized no impairments of finite-lived intangible assets for the years ended December 31, 2023, 2022, and 2021 [293]. - The company’s total finite-lived intangible assets amounted to $567.1 million, with a net carrying amount of $122.3 million after accumulated amortization [285].

Financial Performance - Net sales for Q3 2023 were $632.1 million, a decrease of 7.1% from $680.8 million in Q3 2022[207] - For the first nine months of 2023, net sales were $1.99 billion, a decrease of 4.0% from $2.07 billion in the same period of 2022[214] - Life Science segment sales for the first nine months of 2023 were $887.3 million, a decrease of 10.1% year-over-year, with a currency neutral sales decrease of 9.0%[246] - Clinical Diagnostics segment sales for the first nine months of 2023 were $1.10 billion, an increase of 1.7% year-over-year, with a currency neutral sales increase of 2.8%[247] Expenses - SG&A expenses for Q3 2023 were $201.2 million, representing 31.8% of sales, compared to $211.1 million or 31.0% of sales in Q3 2022[209] - R&D expenses for Q3 2023 were $43.5 million, or 6.9% of sales, down from $66.8 million or 9.8% of sales in Q3 2022[240] - Research and development expenses for the first nine months of 2023 decreased to $183.5 million, representing 9.2% of sales, compared to $190.7 million in the same period of 2022[248] - Interest expense for Q3 2023 was $12.4 million, an increase from $11.7 million in Q3 2022, primarily due to $1.2 billion Senior Notes[211] - Interest expense for the first nine months of 2023 was $37.1 million, an increase of $10.6 million from $26.4 million in the same period of 2022[249] Gross Margins - Consolidated gross margins for Q3 2023 were 53.1%, down from 54.7% in Q3 2022, primarily due to product mix and higher material costs[239] - Consolidated gross margins for the first nine months of 2023 were 53.3%, down from 56.5% in the same period of 2022[247] Other Income and Expenses - Other income for the first nine months of 2023 was $87.4 million, up from $42.4 million in the same period of 2022, driven by increased interest and investment income[218] - Other income, net for Q3 2023 increased to $20.4 million from $3.1 million in Q3 2022, primarily due to increased interest and investment income[243] - Foreign currency exchange gains for Q3 2023 were $1.7 million, compared to losses of $4.4 million in Q3 2022[242] - Losses from changes in fair market value of equity securities were $1.58 billion for the first nine months of 2023, compared to $6.17 billion in the same period of 2022[250] Cash Flow and Financing - Net cash used in financing activities was $225.0 million for the nine months ended September 30, 2023, compared to cash provided of $1,060.2 million in the same period of 2022[255] - The board authorized a new share repurchase program of up to $500 million in July 2023[224] - As of September 30, 2023, $478.7 million remained available for repurchases under the Share Repurchase Program[256]

Financial Performance - Life Science segment sales for Q2 2023 were $300.2 million, a decrease of 6.9% year-over-year, with a currency neutral sales decrease of 5.8%[98] - Net sales for Q2 2023 were $681.1 million, a decrease of 1.4% from $691.1 million in Q2 2022, with COVID-related sales dropping from approximately $33.2 million to $0.4 million[125] - Clinical Diagnostics segment sales for Q2 2023 were $380.1 million, an increase of 3.3% compared to Q2 2022, with a currency neutral increase of 4.6% driven by demand for quality controls and diagnostic testing systems[126] - Life Science segment sales for the first half of 2023 were $623.8 million, a decrease of 6.8% year-over-year, with a currency neutral sales decrease of 4.7%[106] - Net sales for the Life Science segment in the six months ended June 30, 2023, were $623.8 million, a decrease from $669.5 million in the same period of 2022, representing a decline of approximately 6.5%[199] - Clinical Diagnostics segment net sales for the six months ended June 30, 2023, were $732.2 million, down from $719.5 million in 2022, indicating a decrease of about 1.0%[199] Expenses and Margins - Consolidated gross margins for Q2 2023 were 53.2%, down from 57.2% in Q2 2022, primarily due to product mix and higher material costs[99] - Gross profit margin for the first half of 2023 was 53.4%, down from 57.3% in the first half of 2022, primarily due to product mix and increased production costs[133] - Research and development (R&D) expenses for Q2 2023 were $65.0 million, representing 9.5% of sales, consistent with $64.3 million or 9.3% of sales in Q2 2022[100] - Research and development expenses increased to $140.0 million, or 10.3% of sales, in the first half of 2023, compared to $123.9 million, or 8.9% of sales, in the first half of 2022[134] - Selling, general and administrative (SG&A) expenses increased to $433.4 million or 31.9% of sales for the first half of 2023, compared to $404.5 million or 29.1% of sales in the same period of 2022[108] - Selling, general and administrative expenses were $207.8 million, or 30.5% of sales, in Q2 2023, compared to 30.1% in Q2 2022, reflecting increased restructuring costs[127] Cash Flow and Investments - Net cash used in investing activities for the first half of 2023 was $42.5 million, a significant decrease from $1,060.6 million in the same period of 2022[113] - Net cash provided by operations for the six months ended June 30, 2023, was $196.2 million, up from $103.8 million in the same period of 2022, attributed to lower income tax paid and higher cash received from customers[139] - Net cash provided by operating activities for the six months ended June 30, 2023, was $196.2 million, compared to $103.8 million for the same period in 2022, indicating an increase of 89.0%[171] - Net cash used in financing activities was $198.4 million for the six months ended June 30, 2023, compared to cash provided of $1,069.0 million in the same period of 2022, indicating a significant decrease in financing activities[201] Tax and Losses - The effective income tax rate for the first half of 2023 was 22.8%, slightly down from 23.2% in the same period of 2022, influenced by an unrealized loss in equity securities[110] - The effective income tax rate for Q2 2023 was 22.5%, down from 24.2% in Q2 2022, primarily affected by an unrealized loss in equity securities[130] - The effective income tax rate for the three months ended June 30, 2023, was 22.5%, down from 24.2% for the same period in 2022[151] - The company reported a consolidated loss before income taxes of $(1,500.4) million for the three months ended June 30, 2023, compared to $(1,220.2) million for the same period in 2022[158] - Losses from changes in fair market value of equity securities and loan receivable were $1.60 billion in Q2 2023, compared to $1.34 billion in Q2 2022, primarily due to holding losses on Sartorius AG[129] - Losses from changes in fair market value of equity securities and loan receivable were $1.61 billion for the first half of 2023, significantly lower than $5.88 billion for the first half of 2022[161] - The company reported a net loss of $1,093.3 million for the six months ended June 30, 2023, compared to a net loss of $4,292.5 million for the same period in 2022[171] Share Repurchase and Stock - The company completed the repurchase of $650 million of stock under its share repurchase program[90] - During Q2 2023, the company repurchased 549,863 shares of Class A common stock for $207.4 million under its Share Repurchase Program[203] - The board of directors authorized a new share repurchase program in July 2023, allowing the company to repurchase up to $500 million of its outstanding common stock[204] - The company incurred a loss of $44,000 upon reissuing 17,428 shares of Class A treasury stock at a lower price than their average cost during Q2 2023[202] - In Q2 2022, the company repurchased 255,284 shares of Class A common stock for $125.0 million, with $98.1 million remaining available for repurchases as of June 30, 2022[205] - As of June 30, 2023, the company had designated repurchased shares as treasury stock[203] Market Risks - The company is exposed to foreign currency exchange fluctuations, which could materially affect its results of operations and financial condition[195] - Changes in the market value of the company's position in Sartorius AG could significantly impact its consolidated statements of income and financial statements[196] - There have been no material changes in market risk disclosures from the previous Annual Report for the year ended December 31, 2022[207] Management and Controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the period covered by the Quarterly Report[209]

Sales Performance - Life Science segment sales for Q1 2023 were $323.6 million, a decrease of 6.8% year-over-year, with a currency neutral decrease of 3.6%[149] - Clinical Diagnostics segment sales for Q1 2023 were $352.1 million, an increase of 0.1% year-over-year, with a currency neutral increase of 2.8%[150] - COVID-related sales in Q1 2023 were $2.3 million, significantly down from approximately $44.2 million in Q1 2022[149] Profitability and Expenses - Gross profit margin decreased to 53.5% in Q1 2023 from 57.5% in Q1 2022, while cost of goods sold increased to 46.5% from 42.5%[146] - Selling, general and administrative expenses rose to $225.6 million, representing 33.3% of sales, compared to $196.7 million or 28.1% of sales in the prior year[151] - Interest expense for Q1 2023 was $12.3 million, up from $4.0 million in Q1 2022, mainly due to interest accrued on $1.2 billion Senior Notes[152] Cash Flow and Investments - Net cash provided by operations increased to $98.1 million in Q1 2023 from $50.5 million in Q1 2022, driven by higher cash received from customers[157] - Net cash used in investing activities decreased to $70.5 million in Q1 2023 from $916.1 million in Q1 2022, primarily due to the purchase of marketable securities[158] Taxation - Effective income tax rate improved to 18.7% in Q1 2023 from 22.9% in Q1 2022, influenced by benefits from preferential tax rates related to export sales[154] Debt and Borrowings - The company had no outstanding borrowings under the 2019 Credit Agreement as of March 31, 2023, with $0.2 million utilized for domestic standby letters of credit[156]