METTLER TOLEDO INTERNATIONAL INC

Previous wording

Our interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full year ending December 31, 2024.

Current wording

Our interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year ending December 31, 2024.

Previous wording

Changes in local currencies exclude the effect of currency exchange rate fluctuations. Local currency amounts are determined by translating current and previous year consolidated financial information at an index utilizing historical currency exchange rates. We believe local currency information provides a helpful assessment of business performance and a useful measure of results between periods. We do not, nor do we suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. We present non-GAAP financial measures in reporting our financial results to provide investors with an additional analytical tool to evaluate our operating results.

Current wording

Changes in local currency exclude the effect of currency exchange rate fluctuations. Local currency amounts are determined by translating current and previous year consolidated financial information at an index utilizing historical currency exchange rates. We believe local currency information provides a helpful assessment of business performance and a useful measure of results between periods. We do not, nor do we suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. We present non-GAAP financial measures in reporting our financial results to provide investors with an additional analytical tool to evaluate our operating results.

Previous wording

The following tables set forth items from our interim consolidated statements of operations and comprehensive income for the three month periods ended March 31, 2024 and 2023 (amounts in thousands).

Current wording

The following tables set forth certain items from our interim consolidated statements of operations for the three and six month periods ended June 30, 2024 and 2023 (amounts in thousands).

Previous wording

Net sales were $925.9 million for the three months ended March 31, 2024, compared to $928.7 million for the corresponding period in 2023. Sales in U.S. dollars were flat for the three months ended March 31, 2024. Excluding the effect of currency exchange rate fluctuations, or in local currencies, net sales were also flat for the three months ended March 31, 2024. We estimate that net sales benefited by approximately 6% from the recovery of our previously disclosed shipping delays in 2023 related to a new external European logistics service provider. We also continued to experience reduced market demand, particularly in China. We continue to benefit from the execution

Current wording

2024 benefited by approximately 3% from the recovery of our previously disclosed shipping delays in 2023 related to a new external European logistics service provider.

Previous wording

21 - of our global sales and marketing programs and our innovative product portfolio. However, there is uncertainty in the economic environment and our end markets, including the risk of recession in many countries, and market conditions may change quickly. The ongoing developments related to Ukraine, the Israel-Hamas war, and inflation also present several risks to our business as further described in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023. These topics could adversely impact our financial results and could have a greater impact on our operating results in future periods.

Current wording

During the three and six month periods ended June 30, 2024, we continued to experience reduced market demand, particularly in China. We also continue to benefit from the execution of our global sales and marketing programs and our innovative product portfolio. However, there is uncertainty in the economic environment and our end markets, including the risk of recession in many countries, and market conditions may change quickly. The ongoing developments related to Ukraine, the Israel-Hamas war, and inflation also present several risks to our business as further described in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023. These topics could adversely impact our financial results and could have a greater impact on our operating results in future periods.

Previous wording

Net sales by geographic destination for the three months ended March 31, 2024 in U.S. dollars increased 3% in the Americas and 8% in Europe, and decreased 12% in Asia/Rest of World. In local currencies, our net sales by geographic destination increased 3% in the Americas, and 6% in Europe, and decreased 8% in Asia/Rest of World, including a 19% decrease in China, for the three months ended March 31, 2024 compared to the corresponding period in 2023. Excluding the benefit of delayed fourth quarter 2023 shipments, local currency sales decreased 5% in Europe, 1% in the Americas, and 12% in Asia/Rest of World, with 21% in China, during the three months ended March 31, 2024. A discussion of sales by operating segment is included below.

Current wording

Net sales by geographic destination for the three months ended June 30, 2024 in U.S. dollars increased 5% in Europe, 2% in the Americas, and decreased 16% in Asia/Rest of World. In local currencies, our net sales by geographic destination increased 6% in Europe, 2% in the Americas, and decreased 13% in Asia/Rest of World. Our net sales by geographic destination for the six months ended June 30, 2024 in U.S. dollars increased 6% in Europe, 3% in the Americas, and decreased 14% in Asia/Rest of World. Net sales by geographic destination for the six months ended June 30, 2024 in local currencies increased 6% in Europe, 2% in the Americas, and decreased 11% in Asia/Rest of World. Net sales in Asia/Rest of World in local currency includes a decrease of 23% and 21% in China during the three and six months ended June 30, 2024, respectively. Excluding the benefit of delayed fourth quarter 2023 shipments, local currency sales were flat in Europe and the Americas, and decreased 12% in Asia/Rest of World, with a 22% decline in China, during the six months ended June 30, 2024. A discussion of sales by operating segment is included below.

Previous wording

Net sales of our laboratory product and services, which represented approximately 57% of our total net sales for the three months ended March 31, 2024, increased 1% in U.S. dollars and 2% in local currencies during the three months ended March 31, 2024. Laboratory net sales benefited approximately 8% from the previously disclosed shipping delays during the three months ended March 31, 2024. Excluding this impact, the local currency net sales decrease in our laboratory-related products includes a decline in most products, particularly in China.

Current wording

Net sales of our laboratory products and services, which represented approximately 56% of our total net sales, decreased 1% in U.S. dollars and increased 1% in local currencies for the three months ended June 30, 2024, and were flat in U.S. dollars and increased 1% in local currencies for the six months ended June 30, 2024. Laboratory net sales benefited approximately 4% from the previously disclosed shipping delays during the six month period ended June 30, 2024. The increase in local currency net sales for the three month period ended June 30, 2024 reflects modest growth in most product categories. Laboratory results for the three and six month periods ended June 30, 2024 were negatively impacted by a significant decline in China.

Previous wording

Net sales of our industrial products and services, which represented approximately 38% of our total net sales for the three months ended March 31, 2024, decreased 1% in U.S. dollars and were flat in local currencies during the three months ended March 31, 2024. Industrial net sales benefited approximately 3% from the previously disclosed shipping delays during the three months ended March 31, 2024. Excluding this impact, the local currency net sales decrease in our industrial-related products includes a decline in core-industrial products, particularly in China, which was partially offset by strong project activity in the Americas.

Current wording

Net sales of our industrial products and services, which represented approximately 39% of our total net sales, decreased 6% in U.S. dollars and 5% in local currencies for the three months ended June 30, 2024, and decreased 4% in U.S. dollars and 3% in local currencies for the six months ended June 30, 2024. Industrial net sales benefited approximately 1% from the previously disclosed shipping delays during the six months ended June 30, 2024. The local currency decrease in net sales of our industrial-related products for the three and six month periods ended June 30, 2024 includes a decline in core-industrial products, particularly in China, which was partially offset by growth in product inspection.

Previous wording

Net sales in our food retailing products and services, which represented approximately 5% of our total net sales for the three months ended March 31, 2024, decreased 8% in U.S. dollars and 9% in local currencies during the three months ended March 31, 2024. Retail net sales benefited approximately 6% from the previously disclosed shipping delays during the three months ended March 31, 2024. Excluding this impact, the local currency net sales decrease in food retailing products primarily reflects the timing of project activity related to especially strong growth in the prior year.

Current wording

Net sales in our food retailing products and services, which represented approximately 5% of our total net sales, decreased 13% in U.S. dollars and 12% local currencies for the three months ended June 30, 2024, and decreased 11% in U.S. dollars and 10% in local currencies for the six months ended June 30, 2024. Retail net sales benefited approximately 3% from the previously disclosed shipping delays during the six months ended June 30, 2024. The local currency net sales decrease in food retailing products primarily reflects the timing of project activity related to especially strong growth in the prior year.

Previous wording

Gross profit as a percentage of net sales for products was 61.2% and 60.1% for the three month periods ended March 31, 2024 and 2023, respectively.

Current wording

Gross profit as a percentage of net sales for products was 62.0% and 60.9% for the three months ended June 30, 2024 and 2023, respectively, and 61.6% and 60.5% for the six months ended June 30, 2024 and 2023, respectively.

Previous wording

Gross profit as a percentage of net sales for services (including spare parts) was 52.9% for the three months ended March 31, 2024 compared to 54.7% for the corresponding period in 2023.

Current wording

Gross profit as a percentage of net sales for services (including spare parts) was 52.9% and 54.5% for the three months ended June 30, 2024 and 2023, respectively, and 52.9% and 54.6% for the six months ended June 30, 2024 and 2023, respectively.

Previous wording

The increase in gross profit as a percentage of net sales for the three months ended March 31, 2024 primarily reflects favorable price realization and business mix, partially offset by unfavorable foreign currency.

Current wording

The increase in gross profit as a percentage of net sales for the three and six months ended June 30, 2024 primarily reflects favorable price realization and business mix, partially offset by reduced sales volume and unfavorable foreign currency.

Previous wording

Research and development expenses as a percentage of net sales was 5.0% for the three months ended March 31, 2024 compared to 4.9% in the corresponding period of 2023. Research and development expenses increased 2% in U.S. dollars and were flat in local currencies, during the three months ended March 31, 2024 compared to the corresponding period in 2023.

Current wording

Research and development expenses as a percentage of net sales was 4.8% for the three months ended June 30, 2024 and 2023, and was 4.9% for the six months ended June 30, 2024 and 2023. Research and development expenses decreased 3% in U.S. dollars and 2% in local currencies for the three months ended June 30, 2024, and decreased 1% in U.S. dollars and in local currencies for the six months ended June 30, 2024, respectively, compared to the corresponding periods in 2023.

Previous wording

Selling, general and administrative expenses as a percentage of net sales were 25.3% for both the three months ended March 31, 2024 and the corresponding period during 2023. Selling, general and administrative expense was flat in U.S. dollars and decreased 1% in local currencies during the three months ended March 31, 2024 compared to the corresponding period in 2023. The local currency decrease includes benefits from our cost savings programs.

Current wording

Selling, general and administrative expenses as a percentage of net sales were 24.9% and 23.3% for the three months ended June 30, 2024 and 2023, respectively, and were 25.1% and 24.2% for the six months ended June 30, 2024 and 2023, respectively. Selling, general and administrative expenses increased 3% in U.S. dollars and 4% in local currencies for the three months ended June 30, 2024, and increased 2% in U.S. dollars and local currencies for the six months ended June 30, 2024. The local currency increase includes higher variable compensation costs, offset in part by savings from our cost savings initiatives.

Previous wording

Amortization expense was $18.2 million for the three months ended March 31, 2024 and $17.8 million for the corresponding period in 2023.

Current wording

Amortization expense was $18.2 million and $18.0 million for the three months ended June 30, 2024 and 2023, respectively, and $36.4 million and $35.8 million for the six months ended June 30, 2024 and 2023, respectively.

Previous wording

Restructuring charges were $9.7 million and $4.3 million for the three months ended March 31, 2024 and 2023, respectively. Restructuring expenses are primarily comprised of employee-related costs.

Current wording

Restructuring charges were $5.3 million and $8.0 million for the three months ended June 30, 2024 and 2023, respectively, and $15.0 million and $12.3 million for the six months ended June 30, 2024 and 2023, respectively. Restructuring expenses are primarily comprised of employee-related costs.

Previous wording

Other charges (income), net includes non-service pension costs (benefits), net (gains) losses from foreign currency transactions and hedging activities, interest income and other items. Non-service pension benefits for the three months ended March 31, 2024 and 2023 were $2.0 million and $1.8 million, respectively.

Current wording

Other charges (income), net includes non-service pension costs (benefits), net (gains) losses from foreign currency transactions and hedging activities, interest income and other items. Non-service pension benefits were $1.9 million for the three months ended June 30, 2024 and 2023, and $3.8 million and $3.7 million and for the six months ended June 30, 2024 and 2023, respectively.

Previous wording

Our reported tax rate was 19.5% and 16.9% during the three months ended March 31, 2024 and 2023, respectively. The provision for taxes is based upon using our projected annual effective tax rate of 19.0% and 18.5% before non-recurring discrete tax items for the three months ended March 31, 2024 and 2023, respectively. The difference between our projected annual effective tax rate and the reported tax rate is related to the timing of excess tax benefits associated with stock option exercises.

Current wording

Our reported tax rate was 8.8% and 18.8% during the three months ended June 30, 2024 and 2023, respectively, and 13.9% and 17.9% during the six months ended June 30, 2024 and 2023, respectively. The reported tax rate for the three and six month periods ended June 30, 2024 includes a non-cash discrete tax benefit of $23.0 million resulting from the reduction of uncertain tax position liabilities related to the settlement of a tax audit. The provision for taxes is based upon using our projected annual effective tax rate of 19.0% before non-recurring discrete tax items for the periods ended June 30, 2024 and 2023. The difference between our projected annual effective tax rate and the reported tax rate is related to the non-recurring discrete tax item and the timing of excess tax benefits associated with stock option exercises.

Previous wording

Net sales of products decreased 2% in U.S. dollars and 1% in local currency for the three months ended March 31, 2024 compared to the prior year period. Service revenue (including spare parts) increased 6% in both U.S. dollars and local currency during the three months ended March 31, 2024 compared to the corresponding period in 2023.

Current wording

Total net sales decreased 4% in U.S. dollars and 3% in local currency for the three months ended June 30, 2024, and increased 4% in U.S. dollars and 1% in local currency for the six months ended June 30, 2024, respectively, compared to the corresponding periods in 2023. Net sales to

Previous wording

Total net sales increased 12% in U.S. dollars and 6% in local currency for the three months ended March 31, 2024 compared to the corresponding period in 2023. Net sales to external customers increased 17% in U.S. dollars and 13% in local currency during the three months ended March 31, 2024 compared to the corresponding period in 2023. Net sales to external customers benefited by approximately 14% from our previously disclosed shipping delays during the three months ended March 31, 2024. Excluding this impact, the local currency net sales to external customers decrease for the three months ended March 31, 2024 includes a decline in food retailing related to strong project activity in the prior year, partially offset by modest growth in laboratory products.

Current wording

27 - external customers increased 7% in U.S. dollars and 8% in local currency for the three months ended June 30, 2024 and increased 12% in U.S. dollars and 10% in local currency for the six months ended June 30, 2024, compared to the corresponding periods in 2023. Net sales to external customers benefited by approximately 7% from our previously disclosed shipping delays during the six months ended June 30, 2024. Net sales to external customers for the three months ended June 30, 2024 reflect strong growth in most product categories, especially laboratory-related products, offset in part by a significant decline in food retailing related to strong project activity in the prior year.

Previous wording

Segment profit decreased $17.3 million for the three month period ended March 31, 2024 compared to the corresponding period in 2023. Segment profit during the three months ended March 31, 2024 includes unfavorable inter-segment pricing, increased costs, unfavorable foreign currency translation and mix.

Current wording

Segment profit decreased $11.1 million and $28.4 million for the three and six months ended June 30, 2024, respectively, compared to the corresponding periods in 2023. Segment profit during the three and six months ended June 30, 2024 includes lower net sales volume to intercompany segments, unfavorable inter-segment pricing, increased costs, unfavorable foreign currency translation and unfavorable mix.

Previous wording

Total net sales increased 7% in U.S. dollars and 6% in local currencies during the three months ended March 31, 2024 compared to the corresponding period in 2023. Net sales to external customers increased 8% in U.S. dollars and 6% in local currencies during the three months ended March 31, 2024 compared to the corresponding period in 2023. Net sales benefited by approximately 10% from our previously disclosed shipping delays during the three months ended March 31, 2024. Excluding this impact, the local currency net sales to external customers decrease for the three months ended March 31, 2024 includes declines in most categories.

Current wording

Total net sales increased 2% in U.S. dollars and 3% in local currencies for the three months ended June 30, 2024 and increased 5% in U.S. dollars and 4% in local currencies for the six months ended June 30, 2024, compared to the corresponding periods in 2023. Net sales to external customers increased 5% in U.S. dollars and 6% in local currencies for the three months ended June 30, 2024, and increased 7% in U.S. dollars and 6% in local currencies for the six months ended June 30, 2024, compared to the corresponding periods in 2023. Net sales benefited by approximately 5% from our previously disclosed shipping delays during the six months ended June 30, 2024. Net sales to external customers for the three months ended June 30, 2024 includes particularly strong growth in laboratory products.

Previous wording

Segment profit increased $5.8 million for the three month period ended March 31, 2024 compared to the corresponding period in 2023. Segment profit increased during the three months ended March 31, 2024 primarily due to higher volume from our previously disclosed shipping delays, benefits from our margin expansion and cost savings initiatives.

Current wording

Segment profit increased $6.4 million and $12.2 million for the three and six month periods ended June 30, 2024, respectively, compared to the corresponding periods in 2023. Segment profit increased during the three and six months ended June 30, 2024 primarily due to increased sales volume, and benefits from our margin expansion and cost savings initiatives.

Previous wording

Total net sales decreased 9% in U.S. dollars and 5% in local currency for the three months ended March 31, 2024 compared to the corresponding period in 2023. Net sales to external customers by origin decreased 23% in U.S. dollars and 20% in local currency for the three months ended March 31, 2024 compared to the corresponding period in 2023. Net sales to external customers benefited by approximately 2% from our previously disclosed shipping delays during the three months ended March 31, 2024. Excluding this impact, the decrease in local currency net sales to external customers during the three months ended March 31, 2024 reflects a significant decline in market demand in most product categories. Uncertainties continue to exist and market conditions may change quickly.

Current wording

28 - by approximately 1% from our previously disclosed shipping delays during the six months ended June 30, 2024. Net sales to external customers for the three and six months ended June 30, 2024 reflect a significant decline in market demand in most product categories. Uncertainties continue to exist and market conditions may change quickly.

Previous wording

Segment profit decreased $5.4 million for the three month period ended March 31, 2024 compared to the corresponding period in 2023. The decrease in segment profit for the three month period ended March 31, 2024 primarily relates to lower sales volume and unfavorable currency, offset in part by benefits from our margin expansion and cost savings initiatives.

Current wording

Segment profit decreased $20.2 million and $25.6 million for the three and six month periods ended June 30, 2024, respectively, compared to the corresponding periods in 2023. The decrease in segment profit for the three and six months ended June 30, 2024 primarily reflects lower sales volume and unfavorable currency translation, offset in part by benefits from our margin expansion and cost savings initiatives.

Previous wording

Total net sales increased 6% in U.S. dollars and 9% in local currencies during the three months ended March 31, 2024 compared to the corresponding period in 2023. Net sales to external customers by origin increased 5% in U.S. dollars and 7% in local currency for the three months ended March 31, 2024 compared to the corresponding period in 2023. Net sales to external customers benefited by approximately 9% from our previously disclosed shipping delays during the three months ended March 31, 2024. Excluding this impact, the decrease in net sales to external customers includes a decline in most product categories.

Current wording

Total net sales were flat in U.S. dollars and increased 3% in local currency for the three months ended June 30, 2024 and increased 3% in U.S. dollars and 6% in local currency for the six months ended June 30, 2024, compared to the corresponding periods in 2023. Net sales to external customers increased 3% in U.S. dollars and 6% in local currencies for the three months ended June 30, 2024 and increased 4% in U.S. dollars and 7% in local currencies for the six months ended June 30, 2024, compared to the corresponding periods in 2023. Net sales benefited by approximately 4% from our previously disclosed shipping delays during the six months ended June 30, 2024. Net sales to external customers for the three months ended June 30, 2024 reflects good growth in most product categories.

Previous wording

Segment profit increased $0.9 million for the three months ended March 31, 2024 compared to the corresponding period in 2023. The increase in segment profit is primarily related to our increased sales volume and margin expansion initiatives, offset in part by unfavorable foreign currency translation.

Current wording

Segment profit increased $0.2 million and $1.1 million for the three and six months ended June 30, 2024, respectively, compared to the corresponding periods in 2023. The increase in segment profit for the three and six months ended June 30, 2024 is primarily related to increased sales volume and our margin expansion initiatives, offset in part by unfavorable foreign currency translation.

Previous wording

Liquidity is our ability to generate sufficient cash flows from operating activities to meet our obligations and commitments. In addition, liquidity includes available borrowings under our Credit Agreement, the ability to obtain appropriate financing and our cash and cash equivalent balances. Currently, our liquidity needs are primarily driven by working capital requirements, capital expenditures, share repurchases and acquisitions. Global market conditions can be uncertain, and our ability to generate cash flows could be reduced by a deterioration in global markets.

Current wording

Liquidity is our ability to generate sufficient cash flows from operating activities to meet our obligations and commitments. In addition, liquidity includes available borrowings under our Credit Agreement, the ability to obtain appropriate financing and our cash and cash equivalent balances. Currently, our liquidity needs are primarily driven by working capital requirements, capital expenditures, share repurchases and acquisitions. Global market conditions can be uncertain, and our ability to generate cash flow could be reduced by a deterioration in global markets.

Previous wording

Cash provided by operating activities totaled $190.0 million during the three months ended March 31, 2024, compared to $153.3 million in the corresponding period in 2023. The increase for the three months ended March 31, 2024 compared to the prior year is primarily related to working capital, including lower cash incentive payments of approximately $35 million.

Current wording

Cash provided by operating activities totaled $447.5 million during the six months ended June 30, 2024, compared to $420.1 million in the corresponding period in 2023. The increase for the six months ended June 30, 2024 is primarily related to working capital, including lower cash incentive payments of approximately $35 million.

Previous wording

Capital expenditures are made primarily for investments in information systems and technology, machinery, equipment and the purchase and expansion of facilities. Our capital expenditures totaled $17.4 million for the three months ended March 31, 2024 compared to $23.2 million in the corresponding period in 2023.

Current wording

Capital expenditures are made primarily for investments in information systems and technology, machinery, equipment and the purchase and expansion of facilities. Our capital expenditures totaled $41.2 million for the six months ended June 30, 2024 compared to $51.9 million in the corresponding period in 2023.

Previous wording

We continue to explore potential acquisitions. In connection with any acquisition, we may incur additional indebtedness.

Current wording

We continue to explore potential acquisitions. In connection with any acquisition, we may incur additional indebtedness. During the six months ended June 30, 2023, $10.0 million of contingent consideration was paid relating to the PendoTECH acquisition of which $5.6 million is included in financing activities for the amount accrued at the acquisition date and $4.4 million is included in operating activities for the amount not accrued at the acquisition date on the Consolidated Statement of Cash Flows in accordance with U.S. GAAP.

Previous wording

Cash flows used in financing activities are primarily comprised of share repurchases. In accordance with our share repurchase program, we spent $212.5 million and $250.0 million on the repurchase of 173,700 shares and 166,628 shares, during the three months ended March 31, 2024 and 2023, respectively.

Current wording

Cash flows used in financing activities are primarily comprised of share repurchases. In accordance with our share repurchase program, we spent $425.0 million and $500.0 million on the repurchase of 330,492 shares and 344,382 shares, during the six months ended June 30, 2024 and 2023, respectively.

Previous wording

The Inflation Reduction Act (IRA) was enacted on August 16, 2022. The IRA includes provisions imposing a 1% excise tax on net share repurchases that occur after December 31, 2022, and introduces a 15% corporate alternative minimum tax (CAMT) on adjusted financial statement income. The financial impact of the IRA is immaterial to our financial statements.

Current wording

The Inflation Reduction Act (IRA) was enacted on August 16, 2022. The IRA includes provisions imposing a 1% excise tax on net share repurchases that occur after December 31, 2022 and introduces a 15% corporate alternative minimum tax (CAMT) on adjusted financial statement income. The financial impact of the IRA was immaterial to our financial statements.

Previous wording

As of March 31, 2024, approximately $583.6 million of additional borrowings was available under our Credit Agreement, and we maintained $70.2 million of cash and cash equivalents.

Current wording

As of June 30, 2024, we had $712.0 million of additional borrowings available under our Credit Agreement, and we maintained $70.8 million of cash and cash equivalents.

Previous wording

In May 2023 we amended our Credit Agreement to replace all references of LIBOR to SOFR and other non-U.S. dollar references as the interest rate benchmark.

Current wording

In May 2023 we amended our Prior Credit Agreement to replace all references of LIBOR to SOFR and other non-U.S. dollar references as the interest rate benchmark.

Previous wording

In December 2022, we entered into an agreement to issue and sell $150 million 10-year Senior Notes in a private placement. We issued $150 million with a fixed interest rate of 5.45% (5.45% Senior Notes) in March 2023. The 5.45% Senior Notes are senior unsecured obligations of the Company. The 5.45% Senior Notes mature on March 1, 2033. The terms of the 5.45% Senior Notes are consistent with the previous Senior Notes as described in the Company's Annual Report Form 10-K for the year ended December 31, 2023. We used the proceeds from the sale of the 5.45% Senior Notes to refinance existing indebtedness and for other general corporate purposes.

Current wording

In December 2022, we entered into an agreement to issue and sell $150 million 10-year Senior Notes in a private placement. We issued $150 million with a fixed interest rate of 5.45% (5.45% Senior Notes) in March 2023. The 5.45% Senior Notes are senior unsecured obligations of the Company. The 5.45% Senior Notes mature in March 2033. The terms of the 5.45% Senior Notes are consistent with the previous Senior Notes as described in the Company's Annual Report on Form 10-K. We used the proceeds from the sale of the 5.45% Senior Notes to refinance existing indebtedness and for other general corporate purposes.

Previous wording

In 2018, two of the Company's non-U.S. pension plans issued loans totaling $39.6 million (Swiss franc 38 million) to a wholly owned subsidiary of the Company. The loans have the same

Current wording

In April 2018, two of our non-U.S. pension plans issued loans totaling $39.6 million (Swiss franc 38 million) to a wholly owned subsidiary of the Company. The loans have the same terms and conditions which include an interest rate of SARON plus 87.5 basis points. The loans were renewed for one year in April 2024.

Previous wording

We have $2.3 billion of remaining availability for our share repurchase program as of March 31, 2024. The share repurchases are expected to be funded from cash generated from operating activities, borrowings, and cash balances. Repurchases will be made through open market transactions, and the amount and timing of purchases will depend on business and market conditions, the stock price, trading restrictions, the level of acquisition activity, and other factors.

Current wording

We have $2.1 billion of remaining availability for our share repurchase program as of June 30, 2024. The share repurchases are expected to be funded from cash generated from operating activities, borrowings, and cash balances. Repurchases will be made through open market transactions, and the amount and timing of purchases will depend on business and market conditions, the stock price, trading restrictions, the level of acquisition activity, and other factors.

Previous wording

We have purchased 31.9 million common shares at an average price per share of $287.08 since the inception of the program in 2004 through March 31, 2024. During the three months ended March 31, 2024 and 2023, we spent $212.5 million and $250.0 million on the repurchase of 173,700 shares and 166,628 shares at an average price per share of $1,223.35 and $1,511.78, respectively. We reissued 4,898 shares and 47,849 shares held in treasury for the exercise of stock options and restricted stock units during the three months ended March 31, 2024 and 2023, respectively. In addition, the Company incurred $2.1 million and $1.9 million of excise tax during the three months ended March 31, 2024 and 2023, respectively, related to the Inflation Reduction Act which is reflected as a reduction in shareholders' equity in the Company's consolidated financial statements.

Current wording

We have purchased 32.0 million shares at an average price per share of $292.31 since the inception of the program in 2004 through June 30, 2024. During the six months ended June 30, 2024 and 2023, we spent $425.0 million and $500.0 million on the repurchase of 330,492 and 344,382 shares at an average price per share of $1,285.94 and $1,464.00, respectively. We also reissued 23,538 shares and 70,191 shares held in treasury upon the exercise of stock options and vesting of restricted stock units during the six months ended June 30, 2024 and 2023, respectively.

Previous wording

Our earnings are affected by changing exchange rates. We are most sensitive to changes in the exchange rates between the Swiss franc, euro, Chinese renminbi, and U.S. dollar. We have more Swiss franc expenses than we do Swiss franc sales because we develop and manufacture products in Switzerland that we sell globally, and have a number of corporate functions located in Switzerland. When the Swiss franc strengthens against our other trading currencies, particularly the U.S. dollar and euro, our earnings decrease. We also have significantly more sales in the euro than we do expenses. When the euro weakens against the U.S. dollar and Swiss franc, our earnings also decrease. We estimate a 1% strengthening of the Swiss franc against the euro would reduce our earnings before tax by approximately $2.0 million to $2.3 million annually.

Current wording

Our earnings are affected by changes in exchange rates. We are most sensitive to changes in the exchange rates between the Swiss franc, euro, Chinese renminbi, and U.S. dollar. We have more Swiss franc expenses than we do Swiss franc sales because we develop and manufacture products in Switzerland that we sell globally, and have a number of corporate functions located in Switzerland. When the Swiss franc strengthens against our other trading currencies, particularly the U.S. dollar