Mettler-Toledo(US:MTD)2024-02-09 18:06Financial Instruments and Liabilities - As of December 31, 2023, the fair value of cross currency swap agreements was a net liability of $16.9 million, with a potential change of approximately $8.1 million for a 100-basis-point change in interest rates and foreign currency exchange rates [267]. Taxation - The valuation allowance for deferred tax assets was $73.5 million as of December 31, 2023, based on management's estimates of future taxable income [270]. - The effective tax rate could be materially affected by changes in assumptions or income mix, with an earnings before taxes of $1.0 billion indicating that each increase of $9.7 million in tax expense would raise the effective tax rate by 1% [272]. - 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 [271]. Pension and Employee Benefits - The net periodic pension cost for the U.S. pension plan was $2.8 million for 2023, with a projected benefit obligation of $108.5 million [273]. - The weighted average return on assets assumption was 6.75% for the U.S. pension plan and 3.85% for international plans, with a 1% change impacting annual benefit plan expense by approximately $8.7 million after tax [275]. - The discount rate assumption for the U.S. pension plan was 4.68%, with a 1% change impacting annual benefit plan expense by approximately $7.5 million after tax [277]. Goodwill and Intangible Assets - Goodwill on the consolidated balance sheet was $670.1 million, with other intangible assets totaling $285.4 million as of December 31, 2023 [278]. - The company has not recognized any impairment charges for goodwill and indefinite-lived intangible assets, indicating no decline in fair value below carrying value [282]. - The company evaluates goodwill and intangible assets for impairment annually, with assessments based on qualitative factors and potential quantitative tests if necessary [280].