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 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.

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 nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for the full year ending December 31, 2024.

Previous 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).

Current wording

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

Previous wording

Net sales were $946.8 million and $982.1 million for the three months ended June 30, 2024, and 2023, respectively, and $1.9 billion for both six month periods ended June 30, 2024 and 2023. Sales in U.S. dollars decreased 4% for the three month period and decreased 2% for the six month period ended June 30, 2024. Excluding the effect of currency exchange rate fluctuations, or in local currencies, net sales decreased 2% for the three month period and decreased 1% for the six month period ended June 30, 2024. We estimate that net sales for the six month period ended June 30,

Current wording

Net sales were $954.5 million and $942.5 million for the three months ended September 30, 2024, and 2023, respectively, and $2.8 billion and $2.9 billion for the nine month periods ended September 30, 2024 and 2023, respectively. Sales in U.S. dollars increased 1% for the three month period and decreased 1% for the nine month period ended September 30, 2024. Excluding the effect of currency exchange rate fluctuations, or in local currencies, net sales increased 1% for the three month period and were flat for the nine month period ended September 30, 2024. We estimate that

Previous 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.

Current wording

25 - net sales for the nine month period ended September 30, 2024 benefited by approximately 2% from the recovery of our previously disclosed shipping delays in 2023 related to a new external European logistics service provider.

Previous 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.

Current wording

During the three months ended September 30, 2024 we continued to experience soft 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 war in the Middle East, 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 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.

Current wording

Net sales by geographic destination for the three months ended September 30, 2024 in U.S. dollars increased 2% in Europe and 4% in Asia/Rest of World, and decreased 1% in the Americas. In local currencies, our net sales by geographic destination increased 1% in Europe and 4% in Asia/Rest of World, and decreased 1% in the Americas. Our net sales by geographic destination for the nine months ended September 30, 2024 in U.S. dollars increased 5% in Europe and 1% in the Americas, and decreased 8% in Asia/Rest of World. Net sales by geographic destination for the nine months ended September 30, 2024 in local currencies increased 4% in Europe and 1% in the Americas, and decreased 6% in Asia/Rest of World. Net sales in Asia/Rest of World in local currency includes an increase of 1% and a decrease of 15% in China during the three and nine months ended September 30, 2024, respectively. Excluding the benefit of delayed fourth quarter 2023 shipments, local currency sales were flat in Europe and the Americas, and decreased 7% in Asia/Rest of World, with a 15% decline in China, during the nine months ended September 30, 2024. A discussion of sales by operating segment is included below.

Previous wording

Net sales of products 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, compared to the corresponding periods in 2023. Service revenue (including spare parts) increased 5% in U.S. dollars and 6% in local currencies for the three and six months ended June 30, 2024, compared to the corresponding periods in 2023.

Current wording

Net sales of products decreased 1% in both U.S. dollars and local currencies for the three months ended September 30, 2024 and decreased 3% in U.S. dollars and 2% in local currencies for the nine months ended September 30, 2024, compared to the corresponding periods in 2023. Service revenue (including spare parts) increased 9% in both U.S. dollars and local currencies for the three months ended September 30, 2024, and increased 7% in both U.S. dollars and local currencies for the nine months ended September 30, 2024, compared to the corresponding periods in 2023.

Previous 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.

Current wording

Net sales of our laboratory products and services, which represented approximately 56% of our total net sales, increased 5% in both U.S. dollars and local currencies for the three months ended September 30, 2024, and increased 2% in both U.S. dollars and local currencies for the nine months ended September 30, 2024. Laboratory net sales benefited approximately 3% from the previously disclosed shipping delays during the nine month period ended September 30, 2024. The increase in local currency net sales for the three month period ended September 30, 2024 reflects growth in most product categories, especially analytical instruments and process analytics. Laboratory results for the nine month period ended September 30, 2024 were also negatively impacted by a significant decline in China.

Previous 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.

Current wording

Net sales of our industrial products and services, which represented approximately 39% of our total net sales, were flat in both U.S. dollars and local currencies for the three months ended September 30, 2024, and decreased 3% in U.S. dollars and 2% in local currencies for the nine months ended September 30, 2024. Industrial net sales benefited approximately 1% from the previously disclosed shipping delays during the nine months ended September 30, 2024. The local

Previous 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.

Current wording

Net sales in our food retailing products and services, which represented approximately 5% of our total net sales, decreased 20% in both U.S. dollars and local currencies for the three months ended September 30, 2024, and decreased 14% in both U.S. dollars and local currencies for the nine months ended September 30, 2024. Retail net sales benefited approximately 2% from the previously disclosed shipping delays during the nine months ended September 30, 2024. The local currency net sales decrease in food retailing products during the three and nine months ended September 30, 2024 is primarily due to the especially strong project related growth in the prior year.

Previous wording

Gross profit as a percentage of net sales was 59.7% and 59.4% for the three months ended June 30, 2024 and 2023, respectively, and 59.5% and 59.1% for the six months ended June 30, 2024 and 2023, respectively.

Current wording

Gross profit as a percentage of net sales was 60.0% and 59.4% for the three months ended September 30, 2024 and 2023, respectively, and 59.6% and 59.2% for the nine months ended September 30, 2024 and 2023, respectively.

Previous 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.

Current wording

Gross profit as a percentage of net sales for products was 61.8% and 61.2% for the three months ended September 30, 2024 and 2023, respectively, and 61.7% and 60.7% for the nine months ended September 30, 2024 and 2023, respectively.

Previous 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.

Current wording

Gross profit as a percentage of net sales for services (including spare parts) was 54.4% and 53.5% for the three months ended September 30, 2024 and 2023, respectively, and 53.4% and 54.2% for the nine months ended September 30, 2024 and 2023, respectively.

Previous 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.

Current wording

The increase in gross profit as a percentage of net sales for the three and nine months ended September 30, 2024 primarily reflects favorable price realization and business mix, offset in part by investments in our service organization.

Previous 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.

Current wording

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

Previous 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.

Current wording

Selling, general and administrative expenses as a percentage of net sales were 24.0% and 23.1% for the three months ended September 30, 2024 and 2023, respectively, and were 24.7% and 23.9% for the nine months ended September 30, 2024 and 2023, respectively. Selling, general and administrative expenses increased 5% in both U.S. dollars and local currencies for the three months ended September 30, 2024, and increased 3% in both U.S. dollars and local currencies for the nine months ended September 30, 2024, respectively, compared to the corresponding periods in 2023. The increase includes higher variable compensation costs, offset in part by benefits from our cost savings initiatives.

Previous 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.

Current wording

Amortization expense was $18.2 million and $18.3 million for the three months ended September 30, 2024 and 2023, respectively, and $54.6 million and $54.1 million for the nine months ended September 30, 2024 and 2023, respectively.

Previous 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.

Current wording

Restructuring charges were $2.6 million and $7.4 million for the three months ended September 30, 2024 and 2023, respectively, and $17.6 million and $19.7 million for the nine months ended September 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 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.

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 September 30, 2024 and 2023, and $5.7 million and $5.6 million for the nine months ended September 30, 2024 and 2023, respectively.

Previous 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.

Current wording

Our reported tax rate was 18.3% and 19.7% during the three months ended September 30, 2024 and 2023, respectively, and 15.5% and 18.5% during the nine months ended September 30, 2024 and 2023, respectively. The reported tax rate for the nine month period ended September 30, 2024 includes a non-cash discrete tax benefit of $23 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 three and nine month periods ended September 30, 2024 and 2023. The difference between the Company's projected annual effective tax rate and the reported tax rate for the nine month period ended September 30, 2024 is primarily related to a non-cash discrete tax benefit of $23 million resulting from the reduction of uncertain tax position liabilities related to the settlement of a tax audit. The reported tax rate for the three and nine month periods ended September 30, 2024 is also impacted by the timing of excess tax benefits associated with stock option exercises.

Previous wording

Total net sales and net sales to external customers increased 1% and 2% for the three and six months ended June 30, 2024, respectively, compared with the corresponding periods in 2023. Net sales to external customers benefited by approximately 2% from the 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 an increase in laboratory-related products offset in part by a significant decline in food retailing related to strong project activity in prior year.

Current wording

Total net sales were flat and increased 2% for the three and nine months ended September 30, 2024, respectively, compared with the corresponding periods in 2023. Net sales to external customers decreased 1% and increased 1% for the three and nine months ended September 30, 2024, respectively, compared with the corresponding periods in 2023. Net sales to external customers benefited by approximately 1% from the previously disclosed shipping delays during the nine months ended September 30, 2024. Net sales to external customers for the three and nine months ended September 30, 2024 reflect a significant decline in food retailing related to strong project activity in the prior year, offset in part by growth in most other product categories. Net sales to external customers for the three months ended September 30, 2024 also reflect strong growth in process analytics.

Previous 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.

Current wording

Segment profit increased $6.7 million and $14.6 million for the three and nine month period ended September 30, 2024, respectively, compared to the corresponding periods in 2023. Segment profit increased during the three and nine months ended September 30, 2024 primarily due to improved business mix, and benefits from our margin expansion and cost savings initiatives.

Previous 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.

Current wording

Total net sales decreased 2% in U.S. dollars and 3% in local currency for the three months ended September 30, 2024, and increased 2% in U.S. dollars and was flat in local currency for the nine months ended September 30, 2024, respectively, compared to the corresponding periods in 2023. Net sales to external customers increased 6% in U.S. dollars and 5% in local currency for the three months ended September 30, 2024 and increased 10% in U.S. dollars and 8% in local currency for the nine months ended September 30, 2024, compared to the corresponding periods in 2023. Net sales to external customers benefited by approximately 5% from our previously disclosed shipping delays during the nine months ended September 30, 2024. Net sales to external customers for the three and nine months ended September 30, 2024 reflect strong growth in most product categories, offset in part by a significant decline in food retailing related to strong project activity in the prior year.

Previous 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.

Current wording

Segment profit increased $15.8 million and decreased $12.6 million for the three and nine months ended September 30, 2024, respectively, compared to the corresponding periods in 2023. Segment profit during the three months ended September 30, 2024 reflects favorable business mix and inter-segment pricing, as well as benefits from our margin expansion and cost savings initiatives. Segment profit for the nine months ended September 30, 2024 includes unfavorable inter-segment pricing, unfavorable foreign currency translation and business mix.

Previous 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.

Current wording

Total net sales were flat in U.S. dollars and decreased 1% in local currencies for the three months ended September 30, 2024 and increased 3% in U.S. dollars and 2% in local currencies for the nine months ended September 30, 2024, compared to the corresponding periods in 2023. Net sales to external customers increased 2% in U.S. dollars and 1% in local currencies for the three months ended September 30, 2024, and increased 5% in U.S. dollars and 4% in local currencies for the nine months ended September 30, 2024, compared to the corresponding periods in 2023. Net sales benefited by approximately 3% from our previously disclosed shipping delays during the nine months ended September 30, 2024. Net sales to external customers for the three and nine months ended September 30, 2024 reflect modest growth in most product categories. Net sales to external customers for the three months ended September 30, 2024 also reflect strong growth in process analytics.

Previous 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.

Current wording

Total net sales increased 4% in U.S. dollars and 3% in local currency for the three months ended September 30, 2024 and decreased 7% in U.S. dollars and 5% in local currency for the nine months ended September 30, 2024, compared to the corresponding periods in 2023. Net sales to external customers increased 1% in both U.S. dollars and local currency for the three months ended September 30, 2024 and decreased 17% in U.S. dollars and 15% in local currency during the nine months ended September 30, 2024, compared to the corresponding periods in 2023. Net sales benefited by approximately 1% from our previously disclosed shipping delays during the nine months ended September 30, 2024. The increase in net sales to external customers for the three months ended September 30, 2024 benefited from easier prior year comparisons while market conditions remained soft. Results included growth in laboratory products, offset in part by a decline in industrial products. Net sales to external customers for the nine months ended September 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 $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.

Current wording

Segment profit increased $5.6 million and decreased $20.1 million for the three and nine month periods ended September 30, 2024, respectively, compared to the corresponding periods in 2023. The increase in segment profit for the three months ended September 30, 2024 includes increased sales volume and benefits from our margin expansion and cost savings initiatives. The decrease in segment profit for the nine months ended September 30, 2024 reflects significantly lower sales volumes and unfavorable currency translation.

Previous 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.

Current wording

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

Previous 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.

Current wording

30 - segment profit for the three and nine months ended September 30, 2024 is primarily related to increased sales volume and our margin expansion initiatives, offset in part by unfavorable foreign currency translation.

Previous 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.

Current wording

Cash provided by operating activities totaled $702.2 million during the nine months ended September 30, 2024, compared to $684.4 million in the corresponding period in 2023. The increase for the nine months ended September 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 $41.2 million for the six months ended June 30, 2024 compared to $51.9 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 $62.6 million for the nine months ended September 30, 2024 compared to $72.9 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. 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.

Current wording

We continue to explore potential acquisitions. In connection with any acquisition, we may incur additional indebtedness. During the nine months ended September 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 $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.

Current wording

Cash flows used in financing activities are primarily comprised of share repurchases. In accordance with our share repurchase program, we spent $637.5 million and $724.0 million on the repurchase of 482,413 shares and 526,019 shares, during the nine months ended September 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 was 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

Previous 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.

Current wording

As of September 30, 2024, we had $585.3 million of additional borrowings available under our Credit Agreement, and we maintained $71.6 million of cash and cash equivalents.

Previous 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.

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 subsi diary of the Company. The loans have the same terms and conditions which include an interest rate of SARON plus 97.5 basis points. This rate changed from SARON plus 87.5 basis points in August 2024. The loans were renewed for one year in April 2024.

Previous 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.

Current wording

We have $1.9 billion of remaining availability for our share repurchase program as of September 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 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.

Current wording

We have purchased 32.2 million shares at an average price per share of $297.53 since the inception of the program in 2004 through September 30, 2024. During the nine months ended September 30, 2024 and 2023, we spent $637.5 million and $724.0 million on the repurchase of 482,413 and 526,019 shares at an average price per share of $1,321.46 and $1,388.54, respectively. We also reissued 58,909 shares and 70,812 shares held in treasury upon the exercise of stock options and vesting of restricted stock units during the nine months ended September 30, 2024 and 2023, respectively.

Previous 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

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 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 $2.3 million to $2.6 million annually.

Previous wording

We also conduct business in many geographies throughout the world, including Asia Pacific, the United Kingdom, Eastern Europe, Latin America, and Canada. Fluctuations in these currency exchange rates against the U.S. dollar can also affect our operating results. The most significant of these currency exposures is the Chinese renminbi. The impact on our earnings before tax of the Chinese renminbi weakening 1% against the U.S. dollar is a reduction of approximately $2.9 million to $3.2 million annually.

Current wording

We also conduct business in many geographies throughout the world, including Asia Pacific, the United Kingdom, Eastern Europe, Latin America, and Canada. Fluctuations in these currency exchange rates against the U.S. dollar can also affect our operating results. The most significant of these currency exposures is the Chinese renminbi. The impact on our earnings before tax of the Chinese renminbi weakening 1% against the U.S. dollar is a reduction of approximately $2.5 million to $2.8 million annually.