BIO-RAD LABORATORIES, INC. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q)


This discussion should be read in conjunction with the information contained in
both our consolidated financial statements for the year ended December 31, 2021
and the condensed consolidated financial statements for the three and nine
months ended September 30, 2022.

Overview.  We are a multinational manufacturer and worldwide distributor of our
own life science research and clinical diagnostics products. Our business is
organized into two reportable segments, Life Science and Clinical Diagnostics,
with the mission to provide scientists with specialized tools needed for
biological research and health care specialists with products needed for
clinical diagnostics.

We sell over 12,000 products and services to a diverse customer base of scientific research, healthcare, education and government customers worldwide. We do not disclose quantitative information about our various products and services because it is impractical to do so primarily due to the many products and services we sell and the global markets we serve.

We manufacture and supply our customers with a range of reagents, apparatus and
equipment to separate complex chemical and biological materials and to identify,
analyze and purify components. As our customers require standardization for
their experiments and test results, much of our revenues are recurring in
nature.

We are impacted by the support of many governments for both research and
healthcare. The current global economic outlook is still uncertain as the need
to control government social spending by many governments limits opportunities
for growth. Approximately 41% of our year-to-date 2022 consolidated net sales
are derived from the United States and approximately 59% are derived from
international locations, with Europe being our largest international region. The
international sales are largely denominated in local currencies such as the
Euro, Swiss Franc, Japanese Yen, Chinese Yuan and British Sterling. As a result,
our consolidated net sales expressed in dollars benefit when the U.S. dollar
weakens and suffer when the dollar strengthens. When the U.S. dollar
strengthens, we benefit from lower cost of sales from our own international
manufacturing sites, and from lower international operating expenses. We
regularly discuss our changes in revenue and expense categories in terms of both
changing foreign exchange rates and in terms of a currency neutral basis, if
notable, to explain the impact currency has on our results.

Acquisition

On August 3, 2022 (the "Acquisition Date"), we acquired all equity interests of
Curiosity Diagnostics sp.z o.o.("Curiosity") for a total consideration of
$137.1 million, including the estimated fair value of contingent consideration.
The contingent consideration of up to $70.0 million is payable upon achievement
of certain technological development and sales-related milestones.

Curiosity Diagnostics, a late-stage, pre-commercial platform company, is in the
process of developing a sample-to-answer, rapid diagnostics PCR system for the
molecular diagnostics market. The strategic rationale for the transaction was to
facilitate our entry into the molecular disease testing market with a
differentiated platform. We believe this acquisition will complement our
Clinical Diagnostics product offerings. The acquisition was included in our
Clinical Diagnostics segment's results of operations from the Acquisition Date.
The amount of acquisition-related costs was not material.
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Senior Notes maturing in 2027 and 2032

In March 2022, pursuant to an indenture we issued $400.0 million in principal
amount of Senior Notes due March 2027 (the "2027 Notes") and $800.0 million in
principal amount of Senior Notes due March 2032 (the "2032 Notes" and, together
with the 2027 Notes, the "Notes"). The issuance of the 2027 Notes yielded net
cash proceeds of $395.7 million at an effective rate of 3.5346% and the sale of
the 2032 Notes yielded net cash proceeds of $790.5 million at an effective rate
of 3.8429%. The 2027 Notes and the 2032 Notes pay a fixed rate of interest of
3.3% and 3.7% per annum, respectively. Interest on the Notes is payable
semi-annually in arrears on March 15 and September 15 of each year until the
principal is paid or made available for payment.


COVID-19 and supply chain impact

The full impact of the COVID-19 pandemic and supply constraints continues to be
inherently uncertain at the time of this report. The COVID-19 pandemic has
impacted and, we expect to some extent, will continue to impact parts of our
business, operations, financial condition and results of operations in a variety
of ways. During the third quarter of 2022, we saw continued but moderating
demand for products associated with COVID-19 testing and related research. In
addition, supply chain constraints and lockdowns in China have negatively
impacted sales, particularly instrument placements. We continue to experience
delays and shortages in the supply of components and raw materials. These
shortages have caused a backlog of sales orders, some of which we consider to be
significant, and some delays in certain new product development activities. They
have also led to increases in inventory as we continue to receive available
materials and source those in short supply. While we are putting significant
effort into procuring required materials, we expect the backlog of sales orders
to continue through the remainder of 2022 and some to continue into 2023. For
more discussion relating to the impacts of the COVID-19 pandemic and supply
chain constraints, please see "Item 1A. Risk Factors" to this Form 10-Q.
Results of Operations

The following table shows cost of goods sold, gross profit, components of
operating expense, (gains) losses from change in fair market value of equity
securities and loan receivable, and net income (loss) as a percentage of net
sales:
                                                               Three Months Ended                             Nine Months Ended
                                                                 September 30,                                  September 30,
                                                          2022                    2021                   2022                   2021
Net sales                                                    100.0  %               100.0  %               100.0  %                100.0  %
Cost of goods sold                                            45.1                   41.4                   43.4                    43.4
Gross profit                                                  54.9                   58.6                   56.6                    56.6
Selling, general and administrative expense                   31.0                   28.9                   29.8                    29.9
Research and development expense                              10.3                    8.6                    9.6                     9.2

(Gains) losses from change in fair market value of equity securities and loans receivable

                         42.4                 (651.7)                 297.9                  (323.3)
Net income (loss)                                            (24.1)                 525.8                 (215.3)                  265.8



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Significant Accounting Policies and Estimates

An accounting policy is deemed to be critical if it requires an accounting
estimate to be made based on assumptions about matters that are highly uncertain
at the time the estimate is made, if different estimates reasonably could have
been used, or if changes in the estimate that are reasonably likely to occur
could materially impact the financial statements.  Management believes that
there have been no significant changes during the three and nine months ended
September 30, 2022 to the items that we disclosed as our critical accounting
policies and estimates in Management's Discussion and Analysis of Financial
Condition and Results of Operations in our Annual Report on Form 10-K for the
fiscal year ended December 31, 2021.

Other than the recent accounting pronouncement adoptions as discussed in Note 1
to the condensed consolidated financial statements, there have been no
substantial changes in our significant accounting policies during the three and
nine months ended September 30, 2022, compared with the significant accounting
policies described in our Annual Report on Form 10-K for the year ended
December 31, 2021.


               Three Months Ended September 30, 2022 Compared to
                     Three Months Ended September 30, 2021

Results of Operations — Sales, Margins and Expenses

Percentage sales growth in currency neutral amounts are calculated by
translating prior period sales in each local currency using the current period
monthly average foreign exchange rates for that currency and comparing that to
current period sales.

Net sales (sales) for the third quarter of 2022 were $680.8 million compared to
$747.0 million in the third quarter of 2021, a decrease of 8.9%.  COVID-related
sales were approximately $17.2 million in the third quarter of 2022 compared to
approximately $57.1 million reported in the third quarter of 2021. Excluding the
impact of foreign currency, third quarter 2022 sales decreased by approximately
4.1% compared to the same period in 2021. Currency neutral sales increased in
Europe, but this was more than offset by decreased sales in the Americas and
Asia Pacific as a result of ongoing supply constraints. Sales in the third
quarter of 2021 were elevated due to approximately $31.6 million of royalty
revenue related to an intellectual property litigation settlement. Excluding
COVID-related sales and the impact of royalty revenue related to an intellectual
property litigation settlement in the third quarter of 2021, revenue increased
6.1% on a currency neutral basis from the third quarter of 2021.

The Life Science segment sales for the third quarter of 2022 were $317.9
million, a decrease of 14.9% compared to the same period last year.  On a
currency neutral basis, sales decreased 11.0% compared to the third quarter in
2021. The currency neutral sales decline was primarily attributed to the $31.6
million royalty revenue related to an intellectual property litigation
settlement in the third quarter of 2021, lower COVID-related sales, and the
impact from ongoing supply constraints on instrument placements. The sales
decreases were partially offset by increased sales of Process Media, Western
Blotting, and Antibody products. Currency neutral sales decreased in both Asia
Pacific and the Americas, partially offset by increased sales in Europe.

The Clinical Diagnostics segment sales for the third quarter of 2022 were $361.9
million, a decrease of 2.8% compared to the same period last year.  On a
currency neutral basis, sales increased 3.0% compared to the third quarter in
2021.  The currency neutral sales increase was primarily driven by Quality
Controls, Blood Typing, and Infectious Disease products, despite supply chain
constraints having an impact on instrument placements. Currency neutral sales
increased in both Asia Pacific and the Americas, partially offset by a decrease
in Europe.

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Consolidated gross margins were 54.9% for the third quarter of 2022 compared to
58.6% for the third quarter of 2021.  Life Science segment gross margins for the
third quarter of 2022 decreased by approximately 5.6 percentage points,
primarily due to higher logistics costs and product mix due to lower COVID
related sales, partially offset by the strong US dollar. The third quarter of
2021 Life Science margins benefited from the $31.6 million royalty revenue
related to an intellectual property litigation settlement. Clinical Diagnostics
segment gross margins for the third quarter of 2022 decreased by approximately
1.1 percentage points from the same period last year. The decrease in gross
margins was primarily driven by higher logistics costs and production costs,
partially offset by the strong US dollar.

Selling, general and administrative expenses (SG&A) decreased to $211.0 million
or 31.0% of sales for the third quarter of 2022 compared to $216.2 million or
28.9% of sales for the third quarter of 2021.  The decrease to SG&A was
primarily driven by lower employee related expenses, partially offset by higher
discretionary expense, including marketing and travel. The SG&A expenses in the
third quarter of 2022 also benefitted from the impact of a stronger dollar.

Research and development (R&D) expenses increased to $69.9 million or 10.3% of
sales in the third quarter of 2022 compared to $64.5 million or 8.6% of sales in
the third quarter of 2021.  Life Science segment R&D expense increased in the
third quarter of 2022 compared to the prior year period, primarily from
increased personnel costs from the Dropworks, Inc. acquisition in October of
2021, and increased investment to complete strategic projects in key investment
areas. Clinical Diagnostics segment R&D expense increased in the third quarter
of 2022 from the prior year period driven by continued investment in new
strategic development projects.

Operating results – Non-operating

Interest expense for the third quarter of 2022 and 2021 was $11.7 million and
$0.4 million, respectively, an increase of $11.3 million compared to the prior
year period. The increase was primarily due to the $1.2 billion Senior Notes
(see Note 7, "Long-term Debt" in the condensed consolidated financial
statements).

Foreign currency exchange (gains) and losses consist primarily of foreign
currency transaction gains and losses on intercompany net receivables and
payables and the change in fair value of our forward foreign exchange contracts
used to manage our foreign currency exchange risk.  Foreign currency exchange
losses, net were $4.4 million for the third quarter of 2022 compared to foreign
currency exchange losses, net of $2.2 million for the third quarter of 2021.
Gains and losses are primarily due to the estimating process inherent in the
timing of product shipments and intercompany debt payments, market volatility,
and the change in the fair value of our foreign exchange contracts.

(Gains) losses from change in fair market value of equity securities and loan
receivable was a loss of $289.0 million and a gain of $4.87 billion for the
third quarter of 2022 and 2021, respectively. The change in the fair market
value primarily resulted from the recognition of holding losses of $267.8
million in the third quarter of 2022 compared to holding gains of $4.87 billion
in the third quarter of 2021 on our position in Sartorius AG. In addition, in
the third quarter of 2022, there was a loss of $19.4 million in the change in
fair market value of the Loan we entered into with SHB during the fourth quarter
of 2021.

Other (income) expense, net for the third quarter of 2022 was income, net of
$3.1 million compared to expense, net of $0.6 million for the third quarter of
2021. The difference of income, net of $3.6 million was primarily attributable
to an increase in our investment income as a result of cash invested from the
$1.2 billion Senior Notes issued in March 2022.

Our effective income tax rate was 21.5% and 21.8% for the third quarter of 2022
and 2021, respectively. The effective tax rate reported in the third quarter of
2022 was primarily affected by an unrealized loss in equity securities and the
tax rate reported in the third quarter of 2021 was primarily affected by an
unrealized gain in equity securities. The difference in the rate is primarily
driven by geographical mix of earnings.

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Our income tax returns are routinely audited by U.S. federal, state and foreign
tax authorities. We are currently under examination by many of these tax
authorities. There are differing interpretations of tax laws and regulations,
and as a result, significant disputes may arise with these tax authorities
involving issues of the timing and amount of deductions and allocations of
income among various tax jurisdictions.

We record liabilities for unrecognized tax benefits related to uncertain tax
positions. We do not believe the
resolution of our uncertain tax positions will have a material adverse effect on
our condensed consolidated financial statements, although an adverse resolution
of one or more of these uncertain tax positions in any period may have a
material impact on the results of operations for that period.

As of September 30, 2022, based on the expected outcome of certain examinations
or as a result of the expiration of
statutes of limitation for certain jurisdictions, we believe that within the
next twelve months it is reasonably possible
that our previously unrecognized tax benefits could decrease by approximately
$3.5 million.
                Nine Months Ended September 30, 2022 Compared to
                      Nine Months Ended September 30, 2021

Results of Operations — Sales, Margins and Expenses

Percentage sales growth in currency neutral amounts are calculated by
translating prior period sales in each local currency using the current period
monthly average foreign exchange rates for that currency and comparing that to
current period sales.

Net sales (sales) for the first nine months of 2022 were $2.07 billion compared to $2.19 billion over the first nine months of 2021, a decrease of 5.4%.

 COVID-related sales were approximately $95.7 million in the first nine months
of 2022 compared to approximately $220.1 million reported in the first nine
months of 2021. On a currency neutral basis, the first nine months of 2022 sales
decreased by approximately 1.5% compared to the same period in 2021. Currency
neutral sales decreased in both Asia Pacific and Europe, partially offset by
increased sales in the Americas. Sales in the first nine months of 2021 were
elevated due to the approximately $31.6 million of royalty revenue related to an
intellectual property settlement. Excluding COVID-related sales and the impact
of royalty revenue related to an intellectual property litigation settlement in
the third quarter of 2021, sales increased 6.1% on a currency neutral basis from
the first nine months of 2021.

The Life Science segment sales for the first nine months of 2022 were $987.5
million, a decrease of 8.1% compared to the same period last year.  On a
currency neutral basis, sales decreased 4.5% compared to the first nine months
of 2021. The currency neutral sales decline was primarily attributed to lower
qPCR product sales due to the decline in COVID-19 related demand and the impact
of supply chain constraints on instrument placements, partially offset by strong
growth of Process Media, Western Blotting, and Antibody products. Sales in 2021
also benefited from the $31.6 million royalty revenue related to an intellectual
property litigation settlement. Currency neutral sales declined in Europe and
Asia Pacific, while the Americas was essentially flat.

The Clinical Diagnostics segment sales for the first nine months of 2022 were
$1.08 billion, a decrease of 2.7% compared to the same period last year.  On a
currency neutral basis, sales increased 1.6% compared to the first nine months
of 2021. The currency neutral sales increase was primarily driven by growth in
Quality Controls and Blood Typing products, especially in Europe and the
Americas, despite supply chain constraints having an impact on instrument
placements. The increase in currency neutral sales was partially offset by the
impact of COVID lockdowns in China during the second and third quarters of 2022.
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Consolidated gross margins were 56.6% for the first nine months of 2022 compared
to 56.6% for the first nine months of 2021.  Life Science segment gross margins
for the first nine months of 2022 decreased by approximately 2.1 percentage
points from the same period last year. The decrease in gross margins was
primarily driven by higher logistics costs and product mix. The 2021 Life
Science margins also benefited from the $31.6 million royalty revenue related to
an intellectual property litigation settlement. Clinical Diagnostics segment
gross margins for the first nine months of 2022 increased by approximately 2.4
percentage points compared to the same period last year. The increase in gross
margins was primarily driven by a one-time restructuring expense related to the
2021 restructuring plan that was announced and recorded in the first quarter of
2021 and the strong US dollar, partially offset by higher logistics cost and
product mix.

Selling, general and administrative expenses (SG&A) decreased to $617.4 million
or 29.8% of sales for the first nine months of 2022 compared to $655.4 million
or 29.9% of sales for the first nine months of 2021.  The decrease in SG&A was
primarily driven by a one-time restructuring expense related to the 2021
restructuring plan that was announced and recorded in the first quarter of 2021,
as well as by lower employee related expenses.

Research and development (R&D) expenses decreased to $199.5 million or 9.6% of
sales in the first nine months of 2022 compared to $201.8 million or 9.2% of
sales in the first nine months of 2021.  Life Science segment R&D expense
increased in the first nine months of 2022 compared to the prior year period,
primarily from increased personnel costs from the Dropworks, Inc. acquisition in
October of 2021, and increased investment to complete strategic projects in key
investment areas. Clinical Diagnostics segment R&D expense decreased in the
first nine months of 2022 from the prior year period, primarily due to a
one-time restructuring expense related to the 2021 restructuring plan that was
announced and recorded in the first quarter of 2021, partially offset by
continued investment in new strategic development projects.

Operating results – Non-operating

Interest expense for the first nine months of 2022 and 2021 was $26.4 million
and $1.2 million, respectively, an increase of $25.2 million compared to the
prior year period. The increase was primarily due to the sale in March 2022 of
the $1.2 billion Senior Notes.

Foreign currency exchange (gains) and losses consist primarily of foreign
currency transaction gains and losses on intercompany net receivables and
payables and the change in fair value of our forward foreign exchange contracts
used to manage our foreign currency exchange risk.  Foreign currency exchange
losses, net were $3.1 million for the first nine months of 2022 compared to
losses, net of $0.5 million for the first nine months of 2021. Gains and losses
are primarily due to the estimating process inherent in the timing of product
shipments and intercompany debt payments, market volatility, and the change in
the fair value of our foreign exchange contracts.

(Gains) losses from change in fair market value of equity securities and loan
receivable was a loss of $6.17 billion and a gain of $7.08 billion for the first
nine months of 2022 and 2021, respectively. The change in the fair market value
primarily resulted from the recognition of holding losses of $6.0 billion in the
first nine months of 2022 compared to holding gains of $7.07 billion in the
first nine months of 2021 on our position in Sartorius AG. In addition, there
was a loss of $149.0 million in the change in fair market value of the Loan
entered into with SHB during the fourth quarter of 2021.

Other income, net for the first nine months of 2022 was $42.4 million compared
to $16.7 million for the first nine months of 2021. The difference of income of
$25.6 million was primarily due to $12.6 million increase in the Sartorius AG
dividends declared in the first quarter of 2022 compared to the first quarter of
2021 and an increase in our investment income primarily attributable to an
increase in our investments as a result of cash invested from the $1.2 billion
Senior Notes issued in March 2022.

Our effective income tax rate was 23.1% and 22.2% for the first nine months of
2022 and 2021, respectively. The effective tax rate reported in the first nine
months of 2022 was primarily affected by an unrealized loss in equity securities
and the tax rate reported in the first nine months of 2021 was primarily
affected by an unrealized gain in equity securities. The difference in the rate
is primarily driven by geographical mix of earnings.

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On August 16, 2022, President Biden signed into law the Inflation Reduction Act
of 2022, which includes an Alternative Minimum Tax based on the Adjusted
Financial Statement Income of Applicable Corporations. Based on our initial
evaluation, we do not believe the Inflation Reduction Act will have a material
impact on our income tax provision and cash taxes. The company continues to
monitor the changes in tax laws and regulations to evaluate their potential
impact on our business.
Liquidity and Capital Resources

Bio-Rad operates and conducts business globally, primarily through subsidiary
companies established in the markets in which we trade.  Goods are manufactured
in a small number of locations, and are then shipped to local distribution
facilities around the world.  Our product mix is diversified, and certain
products compete largely on product efficacy, while others compete on price.
 Gross margins are generally sufficient to exceed normal operating costs,
and funding for research and development of new products, as well as routine
outflows for capital expenditures, interest and taxes.  In addition to the
annual positive cash flow from operating activities, additional liquidity is
readily available via the sale of short-term investments and access to our
$200.0 million unsecured revolving credit facility (Credit Agreement, as
amended) that we entered into in April 2019, and to a lesser extent
international lines of credit.  Borrowings under the Credit Agreement, as
amended, are available on a revolving basis and can be used to make permitted
acquisitions, for working capital and for other general corporate purposes. We
had no outstanding borrowings under the 2019 Credit Agreement, as amended, as of
September 30, 2022, however, $0.2 million was utilized for domestic standby
letters of credit that reduced our borrowing availability. In March 2022, we
sold $400 million aggregate principal amount of 3.3% Senior Notes due 2027, and
$800 million aggregate principal amount of 3.7% Senior Notes due 2032. The sales
yielded net cash proceeds after deducting the underwriting discount and
estimated offering expenses payable by it, of $1.186 billion. Interest on the
Notes is payable semiannually in arrears on March 15 and September 15 of each
year until the principal is paid or made available for payment. Management
believes that this availability, together with cash flow from operations, will
be adequate to meet our current objectives for operations, research and
development, capital additions for manufacturing and distribution, plant and
equipment, information technology systems and acquisitions of reasonable
proportion to our existing total available capital.

At September 30, 2022, we had available $1.85 billion in cash, cash equivalents
and short-term investments, of which approximately 13% was held in our foreign
subsidiaries. The amount of funds held in the United States can fluctuate due to
the timing of receipts and payments in the ordinary course of business and due
to other reasons, such as acquisitions and borrowings. As part of our ongoing
liquidity assessments, we regularly monitor the mix of domestic and foreign cash
flows (both inflows and outflows).

We generally intend to repatriate certain foreign income to the extent such repatriations are not restricted by local laws or accounting rules and there are no substantial additional costs.

Operating cash flow

Net cash provided by operations was $104.0 million compared to cash provided by
operations of $498.6 million for the nine months ended September 30, 2022 and
2021, respectively.  The decrease in operating cash flows was primarily due to
lower cash received from customers, higher cash paid to suppliers and to
employees, higher income taxes paid, and interest paid in September 2022 on the
Notes in the first nine months of 2022. These decreases were partially offset by
higher proceeds from foreign exchange contracts and higher dividends in 2022
compared to 2021.

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Cash flow from investing activities

Our investing activities consisted primarily of cash used for the purchase of marketable securities and investments, as well as one acquisition.

Net cash used in investing activities was $1,138.3 million and $230.0 million
for the nine months ended September 30, 2022 and 2021, respectively. The
increase was primarily attributable to the purchase of marketable securities and
investments utilizing the cash proceeds from the sale of the senior notes as
described below. The increase also included net cash outflows of $100.8 million
for the acquisition of Curiosity.
Cash Flows from Financing Activities

Our financing activities consisted primarily of cash from the issuance of senior notes.

Net cash provided by financing activities was $1,060.2 million compared to cash
used for financing activities of $60.1 million for the nine months ended
September 30, 2022, and 2021, respectively. This increase was primarily
attributable to the net cash proceeds from the Notes. The increase was partially
offset by a higher repurchase of our common stock by $75.0 million in 2022 than
in 2021 as described below.

Own shares

During the third quarter of 2022, 111,144 shares of Class A treasury stock with
an aggregate total cost of $48.1 million were reissued to fulfill grants to
employees under our restricted stock program and our Employee Stock Purchase
Program. Upon reissuing the Class A treasury stock, a loss of $0.3 million was
incurred as they were reissued at a lower price than their average cost, which
reduced Retained earnings, while $49.5 million reduced Additional
paid-in-capital.

During the second quarter of 2022, 11,609 shares of Class A treasury stock with
an aggregate total cost of $4.95 million were reissued to fulfill grants to
employees under our restricted stock program and our Employee Stock Purchase
Program. Upon reissuing the Class A treasury stock, a loss of $13 thousand was
incurred as they were reissued at a lower price than their average cost, which
reduced Retained earnings, while $0.7 million reduced Additional
paid-in-capital.

During the second quarter of 2022, we repurchased 255,284 shares of Class A
common stock for $125.0 million under our Share Repurchase Program. We
designated these repurchased shares as treasury stock. In July 2022, the Board
of Directors authorized increasing the amount available under the Share
Repurchase Program to allow the Company to repurchase up to an additional $200.0
million of stock. As of September 30, 2022, $298.1 million remained available
for repurchases under the Share Repurchase Program.

During the second quarter of 2021, 1,164 shares of Class A treasury stock with
an aggregate total cost of $0.4 million were reissued to fulfill grants to
employees under our restricted stock program. Upon reissuing the Class A
treasury stock, a loss of $65 thousand was incurred as they were reissued at a
lower price than their average cost, which reduced Retained earnings, while $0.4
million reduced Additional paid-in capital.

During the third quarter of 2021, 112,623 shares of Class A treasury stock with
an aggregate total cost of $42.8 million were reissued to fulfill grants to
employees under our restricted stock program. Upon reissuing the Class A
treasury stock, a loss of $6.7 million was incurred as they were reissued at a
lower price than their average cost, which reduced Retained earnings, while
$36.2 million reduced Additional paid-in capital.

During the first quarter of 2021, we repurchased 89,506 shares of Class A common
stock for $50.0 million under our Share Repurchase Program. We designated these
repurchased shares as treasury stock.

See Note 1 to the condensed consolidated financial statements for the latest adopted accounting recommendations.

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