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].
Bio-Rad(BIO_B) - 2023 Q4 - Annual Report