Mettler-Toledo(MTD) - 2022 Q4 - Annual Report

Tax and Valuation - As of December 31, 2022, the company reported a valuation allowance of $62.6 million for deferred tax assets based on estimates of future taxable income [263]. - The company plans to repatriate earnings from multiple countries, expecting additional tax costs related to non-U.S. withholding taxes and U.S. taxes on currency gains [264]. - The company’s earnings before taxes for the year ended December 31, 2022, were $1.1 billion, with each increase of $10.7 million in tax expense raising the effective tax rate by 1% [265]. Pension and Benefit Plans - The net periodic pension cost for the U.S. pension plan was $0.5 million, with a projected benefit obligation of $110.3 million as of December 31, 2022 [266]. - A change in the discount rate of 1% would impact annual benefit plan expense by approximately $10.8 million after tax [269]. - The weighted average return on assets assumption was 6.75% for the U.S. pension plan and 3.84% for international plans in 2022 [268]. Goodwill and Intangible Assets - The company’s consolidated balance sheet included goodwill of $660.2 million and other intangible assets of $306.1 million as of December 31, 2022 [270]. - The company evaluates goodwill and indefinite-lived intangible assets annually for impairment, with no impairments reported to date [274]. Financial Instruments - The fair value of cross currency swap agreements was a net asset of $4.1 million at December 31, 2022, with a potential change of approximately $4.5 million from a 100-basis-point change in interest rates [260]. - The company has limited involvement with derivative financial instruments and does not use them for trading purposes [259].