0001037646falseFebruary 4, 202100010376462021-02-042021-02-04

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 4, 2021
Mettler Toledo International Inc
(Exact name of registrant as specified in its charter)
Delaware File No. 001-13595 13-3668641
(State or other jurisdiction
of incorporation)
(Commission File Number) (IRS Employer Identification No.)
1900 Polaris Parkway
Columbus
OH
and
Im Langacher, P.O. Box MT-100
CH Greifensee, Switzerland
43240 and 8606
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: 1-614-438-4511 and +41-44-944-22-11
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol Name of each exchange on which registered
Common Stock, $0.01 par value MTD New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act. ☐




Item 2.02 Results of Operations and Financial Condition
    The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition.” The information furnished in this Form 8-K and the Exhibit attached hereto shall not be treated as filed for purposes of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
    On February 4, 2021 Mettler-Toledo International Inc. (“Mettler-Toledo”) issued a press release (the “Release”) setting forth its financial results for the three and twelve months ended December 31, 2020. A copy of the Release is furnished hereto as Exhibit 99.1 to this report.

Non-GAAP Financial Measures
    Mettler-Toledo supplements its U.S. GAAP results with non-GAAP financial measures. The principal non-GAAP financial measures Mettler-Toledo uses are Adjusted Earnings per Share, Adjusted Operating Profit, Adjusted Free Cash Flow, and Local Currency Sales Growth.

Adjusted Earnings per Share
    Mettler-Toledo defines Adjusted Earnings per Share as diluted earnings per common share excluding certain non-recurring discrete tax items, amortization of purchased intangible assets, net of tax, restructuring charges, net of tax and certain other one-time charges, net of tax. The most directly comparable U.S. GAAP financial measure is diluted earnings per common share.
    Mettler-Toledo believes that Adjusted Earnings per Share is important supplemental information for investors. Mettler-Toledo uses this measure because it excludes certain non-recurring discrete tax items, amortization of purchased intangibles, net of tax, restructuring charges, net of tax and certain other one-time charges, net of tax, which management believes are not directly related to current and ongoing operations thereby providing investors with information that helps to compare ongoing operating performance.
    Adjusted Earnings per Share is used in addition to and in conjunction with results presented in accordance with U.S. GAAP. Adjusted Earnings per Share is not intended to represent diluted earnings per common share under U.S. GAAP and should not be considered as an alternative to diluted earnings per common share as an indicator of Mettler-Toledo’s performance because of the following limitations.

Limitations of Mettler-Toledo’s non-GAAP measure, Adjusted Earnings per Share
    Mettler-Toledo’s non-GAAP measure, Adjusted Earnings per Share, has certain material limitations as follows:
    It does not include certain non-recurring discrete tax items, amortization expense of purchased intangibles, net of tax, restructuring charges, net of tax and certain other one-time charges, net of tax. Because non-recurring discrete tax items, amortization of purchased intangibles, restructuring charges and certain other one-time charges are components of diluted earnings per share under U.S. GAAP, any measure that excludes non-recurring discrete tax items, amortization of purchased intangibles, restructuring charges and certain other one-time charges, has material limitations.

2

Adjusted Operating Profit
    Mettler-Toledo defines Adjusted Operating Profit as gross profit less research and development and selling, general and administrative expenses before amortization, interest, restructuring charges and other charges (income), net and taxes. The most directly comparable U.S. GAAP financial measure is earnings before taxes.
    Mettler-Toledo believes that Adjusted Operating Profit is important supplemental information for investors. Adjusted Operating Profit is used internally as the principal profit measurement by its segments in their reporting to management. Mettler-Toledo uses this measure because it excludes amortization, interest, restructuring charges and other charges (income), net and taxes, which are not allocated to the segments.
    On a consolidated basis, Mettler-Toledo also believes Adjusted Operating Profit is an important supplemental method of measuring profitability. It is used internally by senior management for measuring profitability and setting performance targets for managers, and has historically been used as one of the means of publicly providing guidance on possible future results. Mettler-Toledo also believes that Adjusted Operating Profit is an important performance measure because it provides a measure of comparability to other companies with different capital or legal structures, which accordingly may be subject to disparate interest rates and effective tax rates, and to companies which may incur different amortization expenses or impairment charges related to intangible assets.
    Adjusted Operating Profit is used in addition to and in conjunction with results presented in accordance with U.S. GAAP. Adjusted Operating Profit is not intended to represent operating income under U.S. GAAP and should not be considered as an alternative to earnings before taxes as an indicator of Mettler-Toledo’s performance because of the following limitations.

Limitations of Mettler-Toledo’s non-GAAP measure, Adjusted Operating Profit
    Mettler-Toledo’s non-GAAP measure, Adjusted Operating Profit, has certain material limitations as follows:
• It excludes amortization expense. Because this item is recurring, any measure that excludes amortization expense has material limitations.
• It does not include interest expense. Because Mettler-Toledo has borrowed money to finance some of its operations, interest is a necessary and ongoing part of its costs and has assisted Mettler-Toledo in generating revenue. Therefore any measure that excludes interest expense has material limitations.
• It excludes restructuring charges. Because restructuring charges are a component of operating income under U.S. GAAP, any measure that excludes restructuring charges, has material limitations.
• It excludes other charges (income), net. Because other charges (income), net is a component of operating income under U.S. GAAP, any measure that excludes other charges (income), net, has material limitations.

Adjusted Free Cash Flow
    Mettler-Toledo defines Adjusted Free Cash Flow as net cash provided by operating activities including proceeds from the sale of property, plant and equipment, less capital expenditures, and before restructuring, acquisition cost, and Transition Tax payments. The most directly comparable U.S. GAAP financial measure is net cash provided by operating activities.
    
3

    Mettler-Toledo believes Adjusted Free Cash Flow is important supplemental information for investors. It is used internally by senior management for measuring operating cash flow generation and setting performance targets for managers, and has historically been used as one of the means of providing guidance on possible future cash flows.
    Adjusted Free Cash Flow is used in addition to and in conjunction with results presented in accordance with U.S. GAAP. Adjusted Free Cash Flow is not intended to represent net cash provided by operating activities recorded under U.S. GAAP and should not be considered as an alternative to net cash provided by operating activities as an indicator of Mettler-Toledo’s performance because of the following limitations.

Limitations of Mettler-Toledo’s non-GAAP measure, Adjusted Free Cash Flow
    Mettler-Toledo’s non-GAAP measure, Adjusted Free Cash Flow, has certain material limitations as follows:
• It includes proceeds from the sale of property, plant and equipment and purchases of property, plant and equipment, which are not considered to be components of net cash provided by operating activities under U.S. GAAP. Therefore any measure that includes proceeds from the sale of property, plant and equipment and purchases of property, plant and equipment has material limitations.
• It excludes restructuring, acquisition cost, and Transition Tax payments, which are considered to be components of net cash provided by operating activities under U.S. GAAP. Therefore any measure that excludes these items has material limitations.

Local Currency Sales Growth
    Mettler-Toledo defines Local Currency Sales Growth as sales growth excluding the effect of currency exchange rate fluctuations that result from translating activity outside of the United States into U.S. dollars. The most directly comparable U.S. GAAP financial measure is U.S. dollar sales growth.
    Mettler-Toledo believes that Local Currency Sales Growth is important supplemental information for investors. Mettler-Toledo believes local currency information provides a helpful assessment of business performance and a useful measure of results between periods.
    Local Currency Sales Growth is used in addition to and in conjunction with results presented in accordance with U.S. GAAP. Local Currency Sales Growth is not intended to represent U.S. dollar sales growth under U.S. GAAP and should not be considered as an alternative to U.S. dollar sales growth as an indicator of Mettler-Toledo’s performance because of the following limitations.

Limitations of Mettler-Toledo’s non-GAAP measure, Local Currency Sales Growth
    Mettler-Toledo’s non-GAAP measure, Local Currency Sales Growth, has certain material limitations as follows:
    It does not include the effect of currency exchange rate fluctuations that result from translating activity outside of the United States into U.S. dollars. Because the effect of changes in foreign currency exchange rates is a component of U.S. dollar sales growth under U.S. GAAP, any measure that excludes the effect of changes in foreign currency exchange rates, has material limitations.


4

    Adjusted Earnings per Share, Adjusted Operating Profit, Adjusted Free Cash Flow and Local Currency Sales Growth should not be relied upon to the exclusion of U.S. GAAP financial measures, but reflect additional measures of comparability and means of viewing aspects of Mettler-Toledo’s operations that, when viewed together with its U.S. GAAP results and the accompanying reconciliations to net earnings, net cash provided by operating activities and diluted earnings per share, provide a more complete understanding of factors and trends affecting its business.
    Because Adjusted Earnings per Share, Adjusted Operating Profit, Adjusted Free Cash Flow and Local Currency Sales Growth are not standardized, it may not be possible to compare with other companies’ non-GAAP financial measures having the same or similar names. We strongly encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
    The Release provides a reconciliation of Adjusted Earnings per Share, Adjusted Operating Profit and Adjusted Free Cash Flow to the most comparable financial measures recorded under U.S. GAAP. The Release also presents Local Currency Sales Growth in conjunction with its most comparable financial measure recorded under U.S. GAAP.


5

Item 9.01 Financial Statements and Exhibits

Exhibit No. Description
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).*

* Submitted electronically with this Report in accordance with the provision of Regulation S-T.


6


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


                            
METTLER-TOLEDO INTERNATIONAL INC.
Dated: February 4, 2021 By: /s/ Shawn P. Vadala
Shawn P. Vadala
Chief Financial Officer



7
FOR IMMEDIATE RELEASE Exhibit 99.1

METTLER-TOLEDO INTERNATIONAL INC. REPORTS
FOURTH QUARTER 2020 RESULTS


COLUMBUS, Ohio, USA – February 4, 2021 – Mettler-Toledo International Inc. (NYSE: MTD) today announced fourth quarter results for 2020. Provided below are the highlights:

•Reported sales increased 11% compared with the prior year. In local currency, sales increased 7% in the quarter as currency benefited reported sales growth by 4%.

•Net earnings per diluted share as reported (EPS) were $9.03, compared with $7.84 in the prior-year period. Adjusted EPS was $9.26, an increase of 19% over the prior-year amount of $7.78. Adjusted EPS is a non-GAAP measure, and a reconciliation to EPS is included on the last page of the attached schedules.


Quarterly Results

Olivier Filliol, President and Chief Executive Officer, stated, "We ended the year with very good sales growth in all regions, with particularly strong growth in our Laboratory business and in China. We benefited from strong execution and were well positioned to capture growth as customer demand improved, however, we continued to be negatively impacted by COVID-19 in certain businesses and end markets. Strong sales growth combined with good cost control and the benefit of our ongoing margin and productivity initiatives, contributed to strong growth in Adjusted Operating Profit and Adjusted EPS. Finally, cash flow generation in the quarter, and for the full year, was excellent."

GAAP Results
EPS in the quarter was $9.03, compared with the prior-year amount of $7.84.

Compared with the prior year, total reported sales increased 11% to $938.0 million. By region, reported sales increased 8% in the Americas, 14% in Europe and 12% in Asia/Rest of World. Earnings before taxes amounted to $269.2 million, compared with $231.1 million in the prior year.

Non-GAAP Results
Adjusted EPS was $9.26, an increase of 19% over the prior-year amount of $7.78.

Compared with the prior year, total sales in local currency increased 7% as currency benefited sales growth by 4%. By region, local currency sales increased 8% in the Americas, 7% in Europe and 8% in Asia/Rest of World. Adjusted Operating Profit amounted to $292.8 million, a 14% increase from the prior-year amount of $256.3 million.

Adjusted EPS and Adjusted Operating Profit are non-GAAP measures. Reconciliations to the most comparable GAAP measures are provided in the attached schedules.


Year-to-Date Results

GAAP Results
EPS for the year was $24.91, compared with the prior-year amount of $22.47.

Compared with the prior year, total reported sales increased 3% to $3.085 billion. By region, reported sales increased 1% in the Americas, 3% in Europe and 3% in Asia/Rest of World. Earnings before taxes amounted to $748.7 million, compared with $681.4 million in the prior year.
-1-


Non-GAAP Results
Adjusted EPS was $25.72, an increase of 13% over the prior-year amount of $22.77.

Compared with the prior year, total sales in local currency increased 2% as currency increased reported sales by 1%. By region, local currency sales increased 2% in the Americas, 1% in Europe and 3% in Asia/Rest of World. Adjusted Operating Profit amounted to $840.7 million, an 8% increase from the prior-year amount of $778.1 million.

Adjusted EPS and Adjusted Operating Profit are non-GAAP measures. Reconciliations to the most comparable GAAP measures are provided in the attached schedules.


Outlook

The Company stated that forecasting continues to be challenging given the uncertainty surrounding COVID-19 and ensuing impact to the global economic environment. Management cautions that market dynamics and impacts related to COVID-19 are fluid and changes to the business environment can happen quickly. The estimates include significant uncertainty and management acknowledges that market conditions are subject to change.

Based on today's assessment of market conditions, management anticipates local currency sales growth in 2021 will be in the range of 5% to 7%, and Adjusted EPS is forecasted to be in the range of $29.20 to $29.80, an increase of 14% to 16%. This compares with previous guidance of Adjusted EPS in the range of $27.50 to $28.30.

For the first quarter of 2021, based on current market conditions, the Company anticipates that local currency sales growth will be in the range of 11% to 13% and Adjusted EPS is forecasted to be $5.55 to $5.70, a growth rate of 39% to 43%.

While the Company has provided an outlook for local currency sales growth and Adjusted EPS, it has not provided an outlook for reported sales growth or EPS as it would require an estimate of currency exchange fluctuations and non-recurring items, which are not yet known.


Conclusion

Filliol concluded, "In 2020, we strengthened our franchise with our ability to support our customers, while prioritizing on the safety of our employees and customers. We differentiated from competition by leveraging and quickly adjusting our digital sales and marketing and Go-to-Market approaches to identify and pursue pockets of growth and effectively engage with customers. Our agility in responding to the unprecedented market conditions led to further share gains that would not have been possible without our Spinnaker sales and marketing foundation, excellent product portfolio, world-class service organization and strong culture of execution. We are in a strong position to capitalize on growth as customer demand improves throughout the world. While uncertainty remains surrounding the ultimate impact to the economy from COVID-19, we will continue to focus on serving our customers and driving our growth and margin initiatives. We will remain agile and adapt to changes in market conditions as necessary. We have good momentum as we enter 2021 and believe we are well positioned to continue to gain share and deliver strong results."


Other Matters
The Company will host a conference call to discuss its quarterly results today (Thursday, Feb. 4) at 5:00 p.m. Eastern Time. To hear a live webcast or replay of the call, visit the investor relations page on the Company’s website at www.mt.com/investors. The presentation referenced in the conference call will be located on the website prior to the call.
-2-



METTLER TOLEDO (NYSE: MTD) is a leading global supplier of precision instruments and services. We have strong leadership positions in all of our businesses and believe we hold global number-one market positions in most of them. We are recognized as an innovation leader and our solutions are critical in key R&D, quality control and manufacturing processes for customers in a wide range of industries including life sciences, food and chemicals. Our sales and service network is one of the most extensive in the industry. Our products are sold in more than 140 countries and we have a direct presence in approximately 40 countries. With proven growth strategies and a focus on execution, we have achieved a long-term track record of strong financial performance. For more information, please visit www.mt.com.

Statements in this press release which are not historical facts constitute “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. You should not rely on forward-looking statements to predict our actual results. Our actual results or performance may be materially different than reflected in forward-looking statements because of various risks and uncertainties, including statements about expected revenue growth and long-term impacts of the COVID-19 pandemic. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential” or “continue.” We make forward-looking statements about future events or our future financial performance, including earnings and sales growth, earnings per share, strategic plans and contingency plans, growth opportunities or economic downturns, our ability to respond to changes in market conditions, customer demand, our competitive position, pricing, our supply chain, adequacy of our facilities, access to and the costs of raw materials, shipping and supplier costs, gross margins, planned research and development efforts and product introductions, capital expenditures, cash flow, tax-related matters, the impact of foreign currencies, compliance with laws, effects of acquisitions and the impact of the COVID-19 pandemic on our businesses. Our forward-looking statements may not be accurate or complete, and we do not intend to update or revise them in light of actual results. New risks also periodically arise. Please consider the risks and factors that could cause our results to differ materially from what is described in our forward-looking statements, including the uncertain duration and severity of the COVID-19 pandemic. See in particular “Factors Affecting Our Future Operating Results” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2019 and other reports filed with the SEC from time to time.

-3-

METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
Three months ended Three months ended
December 31, 2020 % of sales December 31, 2019 % of sales
Net sales $ 937,985  (a) 100.0 $ 843,969  100.0
Cost of sales 378,941  40.4 345,672  41.0
Gross profit 559,044  59.6 498,297  59.0
Research and development 39,866  4.3 35,299  4.2
Selling, general and administrative 226,369  24.1 206,717  24.5
Amortization 14,657  1.6 12,813  1.5
Interest expense 9,505  1.0 9,635  1.1
Restructuring charges 3,181  0.3 4,614  0.5
Other charges (income), net (3,714) (0.4) (1,924) (0.3)
Earnings before taxes 269,180  28.7 231,143  27.3
Provision for taxes 52,885  5.6 38,394  (b) 4.5
Net earnings $ 216,295  23.1 $ 192,749  22.8
Basic earnings per common share:
Net earnings $ 9.15  $ 7.95 
Weighted average number of common shares 23,642,415  24,241,383 
Diluted earnings per common share:
Net earnings $ 9.03  $ 7.84 
Weighted average number of common and common equivalent shares 23,965,853  24,599,702 
Note:
(a) Local currency sales increased 7% as compared to the same period in 2019.
(b) Provision for taxes includes a non-cash deferred net benefit of $15.8 million for the three months ended December 31, 2019 related to the enactment of Swiss tax reform.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT
Three months ended Three months ended
December 31, 2020 % of sales December 31, 2019 % of sales
Earnings before taxes $ 269,180  $ 231,143 
Amortization 14,657  12,813 
Interest expense 9,505  9,635 
Restructuring charges 3,181  4,614 
Other charges (income), net (3,714) (1,924)
Adjusted operating profit $ 292,809  (c) 31.2 $ 256,281  30.4
Note:
(c) Adjusted operating profit increased 14% as compared to the same period in 2019.

-4-


METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
Twelve months ended Twelve months ended
December 31, 2020 % of sales December 31, 2019 % of sales
Net sales $ 3,085,177  (a) 100.0 $ 3,008,652  100.0
Cost of sales 1,284,146  41.6 1,267,441  42.1
Gross profit 1,801,031  58.4 1,741,211  57.9
Research and development 140,102  4.5 143,950  4.8
Selling, general and administrative 820,221  26.6 819,183  27.2
Amortization 56,665  1.8 49,690  1.7
Interest expense 38,616  1.3 37,411  1.2
Restructuring charges 10,516  0.3 15,760  0.5
Other charges (income), net (13,832) (0.4) (6,177) (0.3)
Earnings before taxes 748,743  24.3 681,394  22.6
Provision for taxes 146,004  4.8 120,285  (b) 4.0
Net earnings $ 602,739  19.5 $ 561,109  18.6
Basic earnings per common share:
Net earnings $ 25.24  $ 22.84 
Weighted average number of common shares 23,882,648  24,567,609 
Diluted earnings per common share:
Net earnings $ 24.91  $ 22.47 
Weighted average number of common and common equivalent shares 24,199,230  24,974,457 
Note:
(a) Local currency sales increased 2% compared to the same period in 2019.
(b) Provision for taxes includes a non-cash deferred net benefit of $15.8 million for the twelve months ended December 31, 2019 related to the enactment of Swiss tax reform.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT
Twelve months ended Twelve months ended
December 31, 2020 % of sales December 31, 2019 % of sales
Earnings before taxes $ 748,743  $ 681,394 
Amortization 56,665  49,690 
Interest expense 38,616  37,411 
Restructuring charges 10,516  15,760 
Other charges (income), net (13,832) (6,177)
Adjusted operating profit $ 840,708  (c) 27.2 $ 778,078  25.9
Note:
(c) Adjusted operating profit increased 8% as compared to the same period in 2019.

-5-

METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
December 31, 2020 December 31, 2019
Cash and cash equivalents $ 94,254  $ 207,785 
Accounts receivable, net 593,809  566,256 
Inventories 297,611  274,285 
Other current assets and prepaid expenses 71,230  61,321 
Total current assets 1,056,904  1,109,647 
Property, plant and equipment, net 798,868  748,657 
Goodwill and other intangible assets, net 747,055  742,221 
Other non-current assets 211,722  188,796 
Total assets $ 2,814,549  $ 2,789,321 
Short-term borrowings and maturities of long-term debt $ 50,317  $ 55,868 
Trade accounts payable 175,801  185,592 
Accrued and other current liabilities 614,209  513,052 
Total current liabilities 840,327  754,512 
Long-term debt 1,284,174  1,235,350 
Other non-current liabilities 407,373  378,679 
Total liabilities 2,531,874  2,368,541 
Shareholders’ equity 282,675  420,780 
Total liabilities and shareholders’ equity $ 2,814,549  $ 2,789,321 






-6-

METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
Three months ended Twelve months ended
December 31, December 31,
2020 2019 2020 2019
Cash flow from operating activities:
Net earnings $ 216,295  $ 192,749  $ 602,739  $ 561,109 
 Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation 11,095  9,643  42,044  38,991 
Amortization 14,657  12,813  56,665  49,690 
Deferred tax (benefit) expense (5,794) 29,166  (12,784) 11,203 
Share-based compensation 5,439  5,002  18,687  18,285 
Swiss tax reform benefit (a) —  (15,833) —  (15,833)
Other (2,399) 161  (2,399) 133 
Increase (decrease) in cash resulting from changes in
operating assets and liabilities 11,576  (31,992) 19,747  (60,128)
Net cash provided by operating activities 250,869  201,709  724,699  603,450 
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment 60  174  3,106  1,422 
Purchase of property, plant and equipment (35,066) (25,714) (92,494) (97,341)
Acquisitions —  —  (6,242) (2,004)
Net hedging settlements on intercompany loans 4,691  2,939  (4,730) (1,160)
Net cash used in investing activities (30,315) (22,601) (100,360) (99,083)
Cash flows from financing activities:
Proceeds from borrowings 340,680  627,370  1,489,040  1,435,081 
Repayments of borrowings (252,678) (515,989) (1,483,869) (1,176,784)
Proceeds from exercise of stock options 525  9,665  26,719  47,581 
Repurchases of common stock (374,999) (216,249) (774,998) (774,999)
Acquisition contingent consideration payment —  —  —  (10,000)
Other financing activities —  —  (800) 1,753 
Net cash used in financing activities (286,472) (95,203) (743,908) (477,368)
Effect of exchange rate changes on cash and cash equivalents 6,486  3,348  6,038  2,676 
Net decrease in cash and cash equivalents (59,432) 87,253  (113,531) 29,675 
Cash and cash equivalents:
    Beginning of period 153,686  120,534  207,785  178,110 
    End of period $ 94,254  $ 207,787  $ 94,254  $ 207,785 
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW
Net cash provided by operating activities $ 250,869  $ 201,709  $ 724,699  $ 603,450 
Payments in respect of restructuring activities 2,280  7,033  8,541  16,483 
Proceeds from sale of property, plant and equipment 60  174  3,106  1,422 
Purchase of property, plant and equipment (35,066) (25,714) (92,494) (97,341)
Payments for one-time legal charge (b) $ —  2,992 $ —  2,992
Transition tax payment —  —  4,264  4,289 
Adjusted free cash flow $ 218,143  $ 186,194  $ 648,116  $ 531,295 
-7-

(a) Represents a non-cash deferred net benefit of $15.8 million for the three and twelve months ended December 31, 2019 related to the enactment of Swiss tax reform.
(b) Represents cash payment made in 2019, related to the one-time legal charge recorded during the three months ended December 31, 2018.
-8-

METTLER-TOLEDO INTERNATIONAL INC.
OTHER OPERATING STATISTICS
SALES GROWTH BY DESTINATION
(unaudited)
Europe Americas Asia/RoW Total
U.S. Dollar Sales Growth (Decrease)
Three Months Ended December 31, 2020 14% 8% 12% 11%
Twelve Months Ended December 31, 2020 3% 1% 3% 3%
Local Currency Sales Growth (Decrease)
Three Months Ended December 31, 2020 7% 8% 8% 7%
Twelve Months Ended December 31, 2020 1% 2% 3% 2%
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
Three months ended Twelve months ended
December 31, December 31,
2020 2019 % Growth 2020 2019 % Growth
EPS as reported, diluted $ 9.03  $ 7.84  15% $ 24.91  $ 22.47  11%
Restructuring charges, net of tax 0.11  (a) 0.15  (a) 0.35  (a) 0.50  (a)
Purchased intangible amortization, net of tax
0.12  (b) 0.11  (b) 0.46  (b) 0.43  (b)
Income tax expense
—  (c) 0.32  (c) —  — 
Swiss Tax reform 0.00 (d) (0.64) (d) —  (0.63) (d)
Adjusted EPS, diluted 9.26 7.78 19  % 25.72 22.77 13  %
Notes:
(a) Represents the EPS impact of restructuring charges of $3.2 million ($2.6 million after tax) and $4.6 million ($3.7 million after tax) for the three months ended December 31, 2020 and 2019, and $10.5 million ($8.5 million after tax) and $15.8 million ($12.6 million after tax) for the twelve months ended December 31, 2020 and 2019, respectively, which primarily include employee related costs.
(b) Represents the EPS impact of purchased intangibles amortization of $3.7 million ($2.8 million after tax) and $3.8 million ($2.8 million after tax) for the three months ended December 31, 2020 and 2019, and of $14.9 million ($11.2 million after tax) and $14.3 million ($10.8 million after tax) for the twelve months ended December 31, 2020 and 2019, respectively.
(c) Represents the EPS impact of the difference between our reported and annual tax rate before non-recurring discrete items, due to the timing of excess tax benefits associated with stock option exercises and a $0.20 EPS benefit for the three months ended December 31, 2020 for the reduction in our annualized effective tax rate to 19.5% for the first three quarters of 2020.
(d) Represents the EPS impact of a non-cash deferred net benefit of $15.8 million related to the enactment of Swiss tax reform for the three and twelve months ended December 31, 2019.



-9-