☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Address of principal executive offices) | 14-1682544 | |
(I.R.S. Employer Identification No.) | ||
19312-1177 | ||
(Zip Code) |
Trading symbol(s) AME | Name of each exchange on which registered | |||
New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||||
Non-accelerated filer | ☐ | |||||||||||||||
Smaller reporting company | ☐ | |||||||||||||||
Emerging growth company | ☐ |
Page | ||||||||||||
1A. | ||||||||||||
1B. | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(In millions) | ||||||||||||
Electronic Instruments | $ | 842.5 | $ | 765.5 | $ | 718.1 | ||||||
Electromechanical | 875.4 | 836.6 | 678.0 | |||||||||
Total | $ | 1,717.9 | $ | 1,602.1 | $ | 1,396.1 | ||||||
Item 3. Legal Proceedings |
Period | Total Number of Shares Purchased (1)(2) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan (2) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan | ||||||||||||
October 1, 2019 to October 31, 2019 | �� | $ | — | — | $ | 494,436,704 | ||||||||||
November 1, 2019 to November 30, 2019 | 55,211 | 96.20 | 55,211 | 489,125,278 | ||||||||||||
December 1, 2019 to December 31, 2019 | — | — | — | 489,125,278 | ||||||||||||
Total | 55,211 | 96.20 | 55,211 | |||||||||||||
Period | Total Number of Shares Purchased (1)(2) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan (2) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan | |||||||||||||||||||
October 1, 2022 to October 31, 2022 | 43 | $ | 120.45 | 43 | $ | 825,294,533 | |||||||||||||||||
November 1, 2022 to November 30, 2022 | 10,202 | 136.39 | 10,202 | 823,903,036 | |||||||||||||||||||
December 1, 2022 to December 31, 2022 | — | — | — | 823,903,036 | |||||||||||||||||||
Total | 10,245 | $ | 136.33 | 10,245 |
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted average exercise price of outstanding options, warrants and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | |||||||||
Equity compensation plans approved by security holders | 4,302,540 | $ | 62.50 | 4,579,533 | ||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||
Total | 4,302,540 | 62.50 | 4,579,533 | |||||||||
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted average exercise price of outstanding options, warrants and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | ||||||||||||||
Equity compensation plans approved by security holders | 3,059,845 | $ | 79.46 | 6,118,226 | |||||||||||||
Equity compensation plans not approved by security holders | — | — | — | ||||||||||||||
Total | 3,059,845 | $ | 79.46 | 6,118,226 |
COMPARISON OF FIVE-YEAR CUMULATIVE TOTAL RETURN |
December 31, | |||||||||||||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | ||||||||||||||||||||||||||||||
AMETEK, Inc. | $ | 100.00 | $ | 94.11 | $ | 139.53 | $ | 170.55 | $ | 208.62 | $ | 199.60 | |||||||||||||||||||||||
S&P 500 Index | 100.00 | 95.62 | 125.72 | 148.85 | 191.58 | 156.89 | |||||||||||||||||||||||||||||
S&P Industrials | 100.00 | 86.71 | 112.17 | 124.59 | 150.89 | 142.63 |
December 31, | ||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||||||
AMETEK, Inc. | $ | 100.00 | $ | 102.51 | $ | 93.66 | $ | 140.48 | $ | 132.20 | $ | 196.00 | ||||||||||||
S&P 500 Index | 100.00 | 101.38 | 113.51 | 138.29 | 132.23 | 173.86 | ||||||||||||||||||
S&P Industrials | 100.00 | 97.47 | 115.85 | 140.22 | 121.58 | 157.29 |
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||
Consolidated Operating Results (Year Ended December 31): | ||||||||||||||||||||
Net sales | $ | 5,158.6 | $ | 4,845.9 | $ | 4,300.2 | $ | 3,840.1 | $ | 3,974.3 | ||||||||||
Operating income (1) | $ | 1,177.4 | $ | 1,075.5 | $ | 903.6 | $ | 791.0 | $ | 907.7 | ||||||||||
Interest expense | $ | 88.5 | $ | 82.2 | $ | 98.0 | $ | 94.3 | $ | 91.8 | ||||||||||
Net income | $ | 861.3 | $ | 777.9 | $ | 681.5 | $ | 512.2 | $ | 590.9 | ||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 3.78 | $ | 3.37 | $ | 2.96 | $ | 2.20 | $ | 2.46 | ||||||||||
Diluted | $ | 3.75 | $ | 3.34 | $ | 2.94 | $ | 2.19 | $ | 2.45 | ||||||||||
Dividends declared and paid per share | $ | 0.56 | $ | 0.56 | $ | 0.36 | $ | 0.36 | $ | 0.36 | ||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||
Basic | 227.8 | 230.8 | 230.2 | 232.6 | 239.9 | |||||||||||||||
Diluted | 229.4 | 232.7 | 231.8 | 233.7 | 241.6 | |||||||||||||||
Performance Measures and Other Data: | ||||||||||||||||||||
Operating income — Return on net sales (1) | 22.8 | % | 22.2 | % | 21.0 | % | 20.6 | % | 22.8 | % | ||||||||||
— Return on average total assets (1) | 12.7 | % | 13.1 | % | 12.1 | % | 11.5 | % | 13.9 | % | ||||||||||
Net income — Return on average total capital | 11.7 | % | 11.9 | % | 11.6 | % | 9.5 | % | 11.6 | % | ||||||||||
— Return on average stockholders’ equity | 18.4 | % | 18.8 | % | 18.7 | % | 15.7 | % | 18.2 | % | ||||||||||
EBITDA (2) | $ | 1,388.3 | $ | 1,267.7 | $ | 1,076.0 | $ | 966.0 | $ | 1,046.9 | ||||||||||
Ratio of EBITDA to interest expense (2) | 15.7x | 15.4x | 11.0x | 10.2x | 11.4x | |||||||||||||||
Depreciation and amortization | $ | 234.0 | $ | 199.5 | $ | 183.2 | $ | 179.7 | $ | 149.5 | ||||||||||
Capital expenditures | $ | 102.3 | $ | 82.1 | $ | 75.1 | $ | 63.3 | $ | 69.1 | ||||||||||
Cash provided by operating activities | $ | 1,114.4 | $ | 925.5 | $ | 833.3 | $ | 756.8 | $ | 672.5 | ||||||||||
Free cash flow (3) | $ | 1,012.1 | $ | 843.4 | $ | 758.2 | $ | 693.5 | $ | 603.4 | ||||||||||
Consolidated Financial Position (At December 31): | ||||||||||||||||||||
Current assets | $ | 2,025.8 | $ | 1,836.1 | $ | 1,934.7 | $ | 1,928.2 | $ | 1,618.8 | ||||||||||
Current liabilities | $ | 1,425.9 | $ | 1,258.7 | $ | 1,138.7 | $ | 924.4 | $ | 1,024.0 | ||||||||||
Property, plant and equipment, net | $ | 548.9 | $ | 554.1 | $ | 493.3 | $ | 473.2 | $ | 484.5 | ||||||||||
Total assets | $ | 9,844.6 | $ | 8,662.3 | $ | 7,796.1 | $ | 7,100.7 | $ | 6,660.5 | ||||||||||
Long-term debt, net | $ | 2,271.3 | $ | 2,273.8 | $ | 1,866.2 | $ | 2,062.6 | $ | 1,553.1 | ||||||||||
Total debt, net | $ | 2,768.7 | $ | 2,632.7 | $ | 2,174.3 | $ | 2,341.6 | $ | 1,938.0 | ||||||||||
Stockholders’ equity | $ | 5,115.5 | $ | 4,241.9 | $ | 4,027.6 | $ | 3,256.5 | $ | 3,254.6 | ||||||||||
Stockholders’ equity per share | $ | 22.33 | $ | 18.68 | $ | 17.42 | $ | 14.20 | $ | 13.82 | ||||||||||
Total debt as a percentage of capitalization | 35.1 | % | 38.3 | % | 35.1 | % | 41.8 | % | 37.3 | % | ||||||||||
Net debt as a percentage of capitalization (4) | 31.7 | % | 34.9 | % | 27.5 | % | 33.3 | % | 32.4 | % |
Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Net income | $ | 861.3 | $ | 777.9 | $ | 681.5 | $ | 512.2 | $ | 590.9 | ||||||||||
Add (deduct): | ||||||||||||||||||||
Interest expense | 88.5 | 82.2 | 98.0 | 94.3 | 91.8 | |||||||||||||||
Interest income | (4.0 | ) | (1.7 | ) | (2.0 | ) | (1.1 | ) | (0.8 | ) | ||||||||||
Income taxes | 208.5 | 209.8 | 115.3 | 180.9 | 215.5 | |||||||||||||||
Depreciation | 101.4 | 85.4 | 82.0 | 74.8 | 68.7 | |||||||||||||||
Amortization | 132.6 | 114.1 | 101.2 | 104.9 | 80.8 | |||||||||||||||
Total adjustments | 527.0 | 489.8 | 394.5 | 453.8 | 456.0 | |||||||||||||||
EBITDA | $ | 1,388.3 | $ | 1,267.7 | $ | 1,076.0 | $ | 966.0 | $ | 1,046.9 | ||||||||||
Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Cash provided by operating activities | $ | 1,114.4 | $ | 925.5 | $ | 833.3 | $ | 756.8 | $ | 672.5 | ||||||||||
Deduct: Capital expenditures | (102.3 | ) | (82.1 | ) | (75.1 | ) | (63.3 | ) | (69.1 | ) | ||||||||||
Free cash flow | $ | 1,012.1 | $ | 843.4 | $ | 758.2 | $ | 693.5 | $ | 603.4 | ||||||||||
December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Total debt, net | $ | 2,768.7 | $ | 2,632.7 | $ | 2,174.3 | $ | 2,341.6 | $ | 1,938.0 | ||||||||||
Less: Cash and cash equivalents | (393.0 | ) | (354.0 | ) | (646.3 | ) | (717.3 | ) | (381.0 | ) | ||||||||||
Net debt | 2,375.7 | 2,278.7 | 1,528.0 | 1,624.3 | 1,557.0 | |||||||||||||||
Stockholders’ equity | 5,115.5 | 4,241.9 | 4,027.6 | 3,256.5 | 3,254.6 | |||||||||||||||
Capitalization (net debt plus stockholders’ equity) | $ | 7,491.2 | $ | 6,520.6 | $ | 5,555.6 | $ | 4,880.8 | $ | 4,811.6 | ||||||||||
Net debt as a percentage of capitalization | 31.7 | % | 34.9 | % | 27.5 | % | 33.3 | % | 32.4 | % | ||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2019 | 2018 | 2017 | Year Ended December 31, | ||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Net sales: | Net sales: | ||||||||||||||||||||||||||||
Electronic Instruments | $ | 3,322,881 | $ | 3,028,959 | $ | 2,690,554 | Electronic Instruments | $ | 4,229,353 | $ | 3,763,758 | $ | 2,989,928 | ||||||||||||||||
Electromechanical | 1,835,676 | 1,816,913 | 1,609,616 | Electromechanical | 1,921,177 | 1,782,756 | 1,550,101 | ||||||||||||||||||||||
Consolidated net sales | $ | 5,158,557 | $ | 4,845,872 | $ | 4,300,170 | Consolidated net sales | $ | 6,150,530 | $ | 5,546,514 | $ | 4,540,029 | ||||||||||||||||
Operating income and income before income taxes: | Operating income and income before income taxes: | ||||||||||||||||||||||||||||
Segment operating income: | Segment operating income: | ||||||||||||||||||||||||||||
Electronic Instruments | $ | 865,307 | $ | 782,144 | $ | 671,646 | Electronic Instruments | $ | 1,089,729 | $ | 958,183 | $ | 770,620 | ||||||||||||||||
Electromechanical | 387,931 | 363,765 | 306,779 | Electromechanical | 503,593 | 437,378 | 324,962 | ||||||||||||||||||||||
Total segment operating income | 1,253,238 | 1,145,909 | 978,425 | Total segment operating income | 1,593,322 | 1,395,561 | 1,095,582 | ||||||||||||||||||||||
Corporate administrative expenses | (75,858 | ) | (70,369 | ) | (74,805 | ) | Corporate administrative expenses | (92,630) | (86,891) | (67,698) | |||||||||||||||||||
Consolidated operating income | 1,177,380 | 1,075,540 | 903,620 | Consolidated operating income | 1,500,692 | 1,308,670 | 1,027,884 | ||||||||||||||||||||||
Interest expense | (88,481 | ) | (82,180 | ) | (98,029 | ) | Interest expense | (83,186) | (80,381) | (86,062) | |||||||||||||||||||
Other expense, net | (19,151 | ) | (5,615 | ) | (8,862 | ) | |||||||||||||||||||||||
Other (expense) income, net | Other (expense) income, net | 11,186 | (5,119) | 140,487 | |||||||||||||||||||||||||
Consolidated income before income taxes | $ | 1,069,748 | $ | 987,745 | $ | 796,729 | Consolidated income before income taxes | $ | 1,428,692 | $ | 1,223,170 | $ | 1,082,309 | ||||||||||||||||
Payments Due | ||||||||||||||||||||
Contractual Obligations (1) | Total | Less Than One Year | One to Three Years | Four to Five Years | After Five Years | |||||||||||||||
(In millions) | ||||||||||||||||||||
Long-term debt borrowings (2) | $ | 2,382.1 | $ | 106.1 | $ | 56.8 | $ | 725.0 | $ | 1,494.2 | ||||||||||
Revolving credit loans (3) | 384.8 | 384.8 | — | — | — | |||||||||||||||
Other indebtedness | 9.2 | 9.2 | — | — | — | |||||||||||||||
Total debt (4) | 2,776.1 | 500.1 | 56.8 | 725.0 | 1,494.2 | |||||||||||||||
Interest on long-term fixed-rate debt | 516.2 | 73.6 | 139.0 | 134.9 | 168.7 | |||||||||||||||
Noncancellable operating leases (5) | 208.0 | 49.4 | 76.2 | 43.4 | 39.0 | |||||||||||||||
Purchase obligations (6) | 505.2 | 478.5 | 23.0 | 2.8 | 0.9 | |||||||||||||||
Restructuring and other | 23.8 | 23.8 | — | — | — | |||||||||||||||
Total | $ | 4,029.3 | $ | 1,125.4 | $ | 295.0 | $ | 906.1 | $ | 1,702.8 | ||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Net income | $ | 1,159.5 | $ | 990.1 | $ | 872.4 | |||||||||||||||||||||||
Add (deduct): | |||||||||||||||||||||||||||||
Interest expense | 83.2 | 80.4 | 86.1 | ||||||||||||||||||||||||||
Interest income | (1.7) | (1.4) | (2.1) | ||||||||||||||||||||||||||
Income taxes | 269.2 | 233.1 | 209.9 | ||||||||||||||||||||||||||
Depreciation | 113.7 | 108.5 | 101.3 | ||||||||||||||||||||||||||
Amortization | 205.8 | 183.6 | 154.0 | ||||||||||||||||||||||||||
Total adjustments | 670.2 | 604.2 | 549.2 | ||||||||||||||||||||||||||
EBITDA | $ | 1,829.7 | $ | 1,594.3 | $ | 1,421.6 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Cash provided by operating activities | $ | 1,149.4 | $ | 1,160.5 | $ | 1,281.0 | |||||||||||||||||||||||
Deduct: Capital expenditures | (139.0) | (110.7) | (74.2) | ||||||||||||||||||||||||||
Free cash flow | $ | 1,010.4 | $ | 1,049.8 | $ | 1,206.8 |
December 31, | |||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Total debt, net | $ | 2,385.0 | $ | 2,544.2 | |||||||||||||||||||||||||
Less: Cash and cash equivalents | (345.4) | (346.8) | |||||||||||||||||||||||||||
Net debt | 2,039.6 | 2,197.4 | |||||||||||||||||||||||||||
Stockholders’ equity | 7,476.5 | 6,871.9 | |||||||||||||||||||||||||||
Capitalization (net debt plus stockholders’ equity) | $ | 9,516.1 | $ | 9,069.3 | |||||||||||||||||||||||||
Net debt as a percentage of capitalization | 21.4 | % | 24.2 | % |
Item 8. Financial Statements and Supplementary Data |
Page | ||||||||
Index to Financial Statements (Item 15(a)(1)) | ||||||||
Reports of Independent Registered Public Accounting Firm Ernst & Young LLP, Philadelphia, Auditor Firm ID: | 42 | |||||||
/s/ DAVID A. ZAPICO | /s/ WILLIAM J. BURKE | |||||||
Chairman of the Board and Chief Executive Officer | Executive Vice President – Chief Financial Officer | |||||||
February 21, 2023 |
/s/ | ERNST & YOUNG LLP | |||||||
Philadelphia, Pennsylvania | ||||||||
February 21, 2023 |
Impairment Assessment of Indefinite Lived Intangible Assets (other than Goodwill) | ||||||||
Description of the Matter | At December 31, Auditing management’s indefinite lived intangible asset impairment tests was complex and highly judgmental due to the significant measurement uncertainty in estimating the fair value of the trademarks and trade names. In particular, the fair value estimates were sensitive to significant assumptions such as discount rate, forecasted revenues and royalty rates, which are affected by expectations about future market or economic conditions. |
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s indefinite lived intangible asset impairment process. For example, we tested controls over management’s review of the valuation models and significant assumptions, including forecasted financial information, as well as management’s controls to validate that the data used in the valuations was complete and accurate. To test the estimated fair value of the Company’s indefinite lived intangible assets, we performed audit procedures that included, among others, assessing the fair value methodologies utilized by management and the significant assumptions discussed above, including the underlying data used in the analyses. For example, when evaluating the significant assumptions, we compared them to current financial and operating plans, market and industry studies, historical trends, and |
/s/ ERNST & YOUNG LLP | ||||||||
We have served as the Company’s auditor since 1930. | ||||||||
Philadelphia, Pennsylvania | ||||||||
February 21, 2023 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Net sales | $ | 6,150,530 | $ | 5,546,514 | $ | 4,540,029 | |||||||||||
Cost of sales | 4,005,261 | 3,633,900 | 2,996,515 | ||||||||||||||
Selling, general and administrative | 644,577 | 603,944 | 515,630 | ||||||||||||||
Total operating expenses | 4,649,838 | 4,237,844 | 3,512,145 | ||||||||||||||
Operating income | 1,500,692 | 1,308,670 | 1,027,884 | ||||||||||||||
Interest expense | (83,186) | (80,381) | (86,062) | ||||||||||||||
Other income (expense), net | 11,186 | (5,119) | 140,487 | ||||||||||||||
Income before income taxes | 1,428,692 | 1,223,170 | 1,082,309 | ||||||||||||||
Provision for income taxes | 269,150 | 233,117 | 209,870 | ||||||||||||||
Net income | $ | 1,159,542 | $ | 990,053 | $ | 872,439 | |||||||||||
Basic earnings per share | $ | 5.04 | $ | 4.29 | $ | 3.80 | |||||||||||
Diluted earnings per share | $ | 5.01 | $ | 4.25 | $ | 3.77 | |||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic shares | 230,208 | 230,955 | 229,435 | ||||||||||||||
Diluted shares | 231,536 | 232,813 | 231,150 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Net sales | $ | 5,158,557 | $ | 4,845,872 | $ | 4,300,170 | ||||||
Cost of sales | 3,370,897 | 3,186,310 | 2,861,370 | |||||||||
Selling, general and administrative | 610,280 | 584,022 | 535,180 | |||||||||
Total operating expenses | 3,981,177 | 3,770,332 | 3,396,550 | |||||||||
Operating income | 1,177,380 | 1,075,540 | 903,620 | |||||||||
Interest expense | (88,481 | ) | (82,180 | ) | (98,029 | ) | ||||||
Other expense, net | (19,151 | ) | (5,615 | ) | (8,862 | ) | ||||||
Income before income taxes | 1,069,748 | 987,745 | 796,729 | |||||||||
Provision for income taxes | 208,451 | 209,812 | 115,259 | |||||||||
Net income | $ | 861,297 | $ | 777,933 | $ | 681,470 | ||||||
Basic earnings per share | $ | 3.78 | $ | 3.37 | $ | 2.96 | ||||||
Diluted earnings per share | $ | 3.75 | $ | 3.34 | $ | 2.94 | ||||||
Weighted average common shares outstanding: | ||||||||||||
Basic shares | 227,759 | 230,823 | 230,229 | |||||||||
Diluted shares | 229,395 | 232,712 | 231,845 | |||||||||
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Net income | $ | 1,159,542 | $ | 990,053 | $ | 872,439 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Amounts arising during the period – gains (losses), net of tax (expense) benefit: | |||||||||||||||||
Foreign currency translation: | |||||||||||||||||
Translation adjustments | (123,756) | (47,331) | 64,521 | ||||||||||||||
Change in long-term intercompany notes | (21,419) | (16,333) | 16,695 | ||||||||||||||
Net investment hedge instruments gain (loss), net of tax of $(17,070), $(12,631) and $14,787 in 2022, 2021 and 2020, respectively | 52,416 | 39,047 | (45,716) | ||||||||||||||
Defined benefit pension plans: | |||||||||||||||||
Net actuarial (loss) gain, net of tax of $4,769, $(15,298) and $8,637 in 2022, 2021 and 2020, respectively | (18,238) | 46,049 | (18,733) | ||||||||||||||
Amortization of net actuarial loss, net of tax of ($2,111), ($4,103) and ($3,539) in 2022, 2021 and 2020, respectively | 6,420 | 12,249 | 11,940 | ||||||||||||||
Amortization of prior service costs, net of tax of $(25), ($114) and $7 in 2022, 2021 and 2020, respectively | 76 | 343 | (36) | ||||||||||||||
Other comprehensive (loss) income | (104,501) | 34,024 | 28,671 | ||||||||||||||
Total comprehensive income | $ | 1,055,041 | $ | 1,024,077 | $ | 901,110 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Net income | $ | 861,297 | $ | 777,933 | $ | 681,470 | ||||||
Other comprehensive (loss) income: | ||||||||||||
Amounts arising during the period – gains (losses), net of tax (expense) benefit: | ||||||||||||
Foreign currency translation: | ||||||||||||
Translation adjustments | 23,692 | (72,112 | ) | 159,507 | ||||||||
Change in long-term intercompany notes | (5,999 | ) | (16,569 | ) | 36,320 | |||||||
Net investment hedge instruments gain (loss), net of tax of $581, ($12,384) and $41,178 in 2019, 2018 and 2017, respectively | (1,803 | ) | 38,452 | (109,412 | ) | |||||||
Defined benefit pension plans: | ||||||||||||
Net actuarial (loss) gain, net of tax of $767, ($18,825) and ( $8,384) in 2019, 2018 and 2017, respectively | (10,522 | ) | (75,253 | ) | 16,518 | |||||||
Amortization of net actuarial loss, net of tax of ($3,505), ($2,716) and ($4,680) in 2019, 2018 and 2017, respectively | 12,180 | 9,313 | 9,910 | |||||||||
Amortization of prior service costs, net of tax of ($83), $1,154 and $4 in 2019, 2018 and 2017, respectively | 401 | (5,639 | ) | (41 | ) | |||||||
Unrealized holding gain (loss) on available-for-sale securities: | ||||||||||||
Unrealized gain (loss), net of tax of $ -, $ - and ($221) in 2019, 2018 and 2017, respectively | — | (104 | ) | 411 | ||||||||
Other comprehensive income (loss) | 17,949 | (121,912 | ) | 113,213 | ||||||||
Total comprehensive income | $ | 879,246 | $ | 656,021 | $ | 794,683 | ||||||
December 31, | |||||||||||
2022 | 2021 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 345,386 | $ | 346,772 | |||||||
Receivables | 919,335 | 829,213 | |||||||||
Inventories, net | 1,044,284 | 769,175 | |||||||||
Other current assets | 219,053 | 183,605 | |||||||||
Total current assets | 2,528,058 | 2,128,765 | |||||||||
Property, plant and equipment, net | 635,641 | 617,138 | |||||||||
Right of use assets, net | 170,295 | 169,924 | |||||||||
Goodwill | 5,372,562 | 5,238,726 | |||||||||
Other intangibles, net | 3,342,085 | 3,368,629 | |||||||||
Investments and other assets | 382,479 | 375,005 | |||||||||
Total assets | $ | 12,431,120 | $ | 11,898,187 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term borrowings and current portion of long-term debt, net | $ | 226,079 | $ | 315,093 | |||||||
Accounts payable | 497,134 | 470,252 | |||||||||
Customer advanced payments | 357,674 | 298,728 | |||||||||
Income taxes payable | 48,171 | 35,904 | |||||||||
Accrued liabilities and other | 435,144 | 443,337 | |||||||||
Total current liabilities | 1,564,202 | 1,563,314 | |||||||||
Long-term debt, net | 2,158,928 | 2,229,148 | |||||||||
Deferred income taxes | 694,267 | 719,675 | |||||||||
Other long-term liabilities | 537,211 | 514,166 | |||||||||
Total liabilities | 4,954,608 | 5,026,303 | |||||||||
Stockholders’ equity: | |||||||||||
Preferred stock,$0.01 par value; authorized 5,000,000 shares; none issued | — | — | |||||||||
Common stock, $0.01 par value; authorized 800,000,000 shares; issued: 2022 – 268,588,293 shares; 2021 – 267,800,160 shares | 2,700 | 2,689 | |||||||||
Capital in excess of par value | 1,094,236 | 1,012,526 | |||||||||
Retained earnings | 8,857,485 | 7,900,113 | |||||||||
Accumulated other comprehensive loss | (574,945) | (470,444) | |||||||||
Treasury stock: 2022 – 38,537,635 shares; 2021 – 36,137,864 shares | (1,902,964) | (1,573,000) | |||||||||
Total stockholders’ equity | 7,476,512 | 6,871,884 | |||||||||
Total liabilities and stockholders’ equity | $ | 12,431,120 | $ | 11,898,187 |
December 31, | ||||||||
2019 | 2018 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 393,030 | $ | 353,975 | ||||
Receivables | 744,760 | 732,839 | ||||||
Inventories, net | 624,567 | 624,744 | ||||||
Other current assets | 263,414 | 124,586 | ||||||
Total current assets | 2,025,771 | 1,836,144 | ||||||
Property, plant and equipment, net | 548,908 | 554,130 | ||||||
Right of use assets, net | 179,679 | — | ||||||
Goodwill | 4,047,539 | 3,612,033 | ||||||
Other intangibles, net | 2,762,872 | 2,403,771 | ||||||
Investments and other assets | 279,790 | 256,210 | ||||||
Total assets | $ | 9,844,559 | $ | 8,662,288 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term borrowings and current portion of long-term debt, net | $ | 497,449 | $ | 358,876 | ||||
Accounts payable | 377,219 | 399,571 | ||||||
Customer advanced payments | 156,818 | 137,229 | ||||||
Income taxes payable | 30,292 | 48,597 | ||||||
Accrued liabilities and other | 364,080 | 314,431 | ||||||
Total current liabilities | 1,425,858 | 1,258,704 | ||||||
Long-term debt, net | 2,271,292 | 2,273,837 | ||||||
Deferred income taxes | 536,140 | 528,336 | ||||||
Other long-term liabilities | 495,777 | 359,489 | ||||||
Total liabilities | 4,729,067 | 4,420,366 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.01 par value; authorized 5,000,000 shares; NaN issued | — | — | ||||||
Common stock, $0.01 par value; authorized 800,000,000 shares; issued: 2019 – 265,583,732 shares; 2018 – 263,645,489 shares | 2,662 | 2,640 | ||||||
Capital in excess of par value | 832,821 | 706,743 | ||||||
Retained earnings | 6,387,612 | 5,653,811 | ||||||
Accumulated other comprehensive loss | (533,139 | ) | (551,088 | ) | ||||
Treasury stock: 2019 – 36,500,908 shares; 2018 – 36,534,802 shares | (1,574,464 | ) | (1,570,184 | ) | ||||
Total stockholders’ equity | 5,115,492 | 4,241,922 | ||||||
Total liabilities and stockholders’ equity | $ | 9,844,559 | $ | 8,662,288 | ||||
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Capital stock | |||||||||||||||||
Preferred stock, $0.01 par value | $ | — | $ | — | $ | — | |||||||||||
Common stock, $0.01 par value | |||||||||||||||||
Balance at the beginning of the year | 2,689 | 2,676 | 2,662 | ||||||||||||||
Shares issued | 11 | 13 | 14 | ||||||||||||||
Balance at the end of the year | 2,700 | 2,689 | 2,676 | ||||||||||||||
Capital in excess of par value | |||||||||||||||||
Balance at the beginning of the year | 1,012,526 | 921,752 | 832,821 | ||||||||||||||
Issuance of common stock under employee stock plans | 34,335 | 44,671 | 47,366 | ||||||||||||||
Share-based compensation costs | 47,375 | 46,103 | 41,565 | ||||||||||||||
Balance at the end of the year | 1,094,236 | 1,012,526 | 921,752 | ||||||||||||||
Retained earnings | |||||||||||||||||
Balance at the beginning of the year | 7,900,113 | 7,094,656 | 6,387,612 | ||||||||||||||
Net income | 1,159,542 | 990,053 | 872,439 | ||||||||||||||
Cash dividends paid | (202,169) | (184,595) | (165,035) | ||||||||||||||
Adoption of ASU 2016-13 | — | — | (360) | ||||||||||||||
Other | (1) | (1) | — | ||||||||||||||
Balance at the end of the year | 8,857,485 | 7,900,113 | 7,094,656 | ||||||||||||||
Accumulated other comprehensive (loss) income | |||||||||||||||||
Foreign currency translation: | |||||||||||||||||
Balance at the beginning of the year | (275,365) | (250,748) | (286,248) | ||||||||||||||
Translation adjustments | (123,756) | (47,331) | 64,521 | ||||||||||||||
Change in long-term intercompany notes | (21,419) | (16,333) | 16,695 | ||||||||||||||
Net investment hedge instruments gain (loss), net of tax of $(17,070), $(12,631) and $14,787 in 2022, 2021 and 2020, respectively | 52,416 | 39,047 | (45,716) | ||||||||||||||
Balance at the end of the year | (368,124) | (275,365) | (250,748) | ||||||||||||||
Defined benefit pension plans: | |||||||||||||||||
Balance at the beginning of the year | (195,079) | (253,720) | (246,891) | ||||||||||||||
Net actuarial (loss) gain, net of tax of $4,769, $(15,298) and $8,637 in 2022, 2021 and 2020, respectively | (18,238) | 46,049 | (18,733) | ||||||||||||||
Amortization of net actuarial loss, net of tax of ($2,111), ($4,103) and ($3,539) in 2022, 2021 and 2020, respectively | 6,420 | 12,249 | 11,940 | ||||||||||||||
Amortization of prior service costs, net of tax of $(25), ($114) and $7 in 2022, 2021 and 2020, respectively | 76 | 343 | (36) | ||||||||||||||
Balance at the end of the year | (206,821) | (195,079) | (253,720) | ||||||||||||||
Accumulated other comprehensive loss at the end of the year | (574,945) | (470,444) | (504,468) | ||||||||||||||
Treasury stock | |||||||||||||||||
Balance at the beginning of the year | (1,573,000) | (1,565,270) | (1,574,464) | ||||||||||||||
Issuance of common stock under employee stock plans | 2,857 | 6,981 | 13,879 | ||||||||||||||
Purchase of treasury stock | (332,821) | (14,711) | (4,685) | ||||||||||||||
Balance at the end of the year | (1,902,964) | (1,573,000) | (1,565,270) | ||||||||||||||
Total stockholders’ equity | $ | 7,476,512 | $ | 6,871,884 | $ | 5,949,346 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Capital stock | ||||||||||||
Preferred stock, $0.01 par value | $ | — | $ | — | $ | — | ||||||
Common stock, $0.01 par value | ||||||||||||
Balance at the beginning of the year | 2,640 | 2,631 | 2,615 | |||||||||
Shares issued | 22 | 9 | 16 | |||||||||
Balance at the end of the year | 2,662 | 2,640 | 2,631 | |||||||||
Capital in excess of par value | ||||||||||||
Balance at the beginning of the year | 706,743 | 660,894 | 604,143 | |||||||||
Issuance of common stock under employee stock plans | 85,684 | 18,534 | 31,660 | |||||||||
Share-based compensation costs | 40,394 | 27,315 | 25,091 | |||||||||
Balance at the end of the year | 832,821 | 706,743 | 660,894 | |||||||||
Retained earnings | ||||||||||||
Balance at the beginning of the year | 5,653,811 | 5,002,419 | 4,403,683 | |||||||||
Net income | 861,297 | 777,933 | 681,470 | |||||||||
Cash dividends paid | (127,496 | ) | (128,911 | ) | (82,735 | ) | ||||||
Other | — | 2,370 | 1 | |||||||||
Balance at the end of the year | 6,387,612 | 5,653,811 | 5,002,419 | |||||||||
Accumulated other comprehensive (loss) income | ||||||||||||
Foreign currency translation: | ||||||||||||
Balance at the beginning of the year | (302,138 | ) | (251,909 | ) | (338,324 | ) | ||||||
Translation adjustments | 23,692 | (72,112 | ) | 159,507 | ||||||||
Change in long-term intercompany notes | (5,999 | ) | (16,569 | ) | 36,320 | |||||||
Net investment hedge instruments (loss) gain, net of tax of $581, ($12,384) and $41,178 in 2019, 2018 and 2017, respectively | (1,803 | ) | 38,452 | (109,412 | ) | |||||||
Balance at the end of the year | (286,248 | ) | (302,138 | ) | (251,909 | ) | ||||||
Defined benefit pension plans: | ||||||||||||
Balance at the beginning of the year | (248,950 | ) | (177,371 | ) | (203,758 | ) | ||||||
Net actuarial (loss) gain, net of tax of $767, ($18,825) and ($8,384) in 2019, 2018 and 2017, respectively | (10,522 | ) | (75,253 | ) | 16,518 | |||||||
Amortization of net actuarial loss, net of tax of ($3,505), ($2,716) and ($4,680) in 2019, 2018 and 2017, respectively | 12,180 | 9,313 | 9,910 | |||||||||
Amortization of prior service costs, net of tax of ($83), $1,154 and $4 in 2019, 2018 and 2017, respectively | 401 | (5,639 | ) | (41 | ) | |||||||
Balance at the end of the year | (246,891 | ) | (248,950 | ) | (177,371 | ) | ||||||
Unrealized holding gain (loss) on available-for-sale securities: | ||||||||||||
Balance at the beginning of the year | — | 104 | (307 | ) | ||||||||
Increase (decrease) during the year, net of tax | — | (104 | ) | 411 | ||||||||
Balance at the end of the year | — | — | 104 | |||||||||
Accumulated other comprehensive loss at the end of the year | (533,139 | ) | (551,088 | ) | (429,176 | ) | ||||||
Treasury stock | ||||||||||||
Balance at the beginning of the year | (1,570,184 | ) | (1,209,135 | ) | (1,211,539 | ) | ||||||
Issuance of common stock under employee stock plans | 7,644 | 6,629 | 9,271 | |||||||||
Purchase of treasury stock | (11,924 | ) | (367,678 | ) | (6,867 | ) | ||||||
Balance at the end of the year | (1,574,464 | ) | (1,570,184 | ) | (1,209,135 | ) | ||||||
Total stockholders’ equity | $ | 5,115,492 | $ | 4,241,922 | $ | 4,027,633 | ||||||
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Cash provided by (used for): | |||||||||||||||||
Operating activities: | |||||||||||||||||
Net income | $ | 1,159,542 | $ | 990,053 | $ | 872,439 | |||||||||||
Adjustments to reconcile net income to total operating activities: | |||||||||||||||||
Depreciation and amortization | 319,427 | 292,112 | 255,275 | ||||||||||||||
Deferred income taxes | (67,818) | (29,762) | 1,839 | ||||||||||||||
Share-based compensation expense | 47,375 | 46,103 | 41,565 | ||||||||||||||
Gain on sale of business/investment | (3,584) | (6,349) | (141,020) | ||||||||||||||
Gain on sale of facilities | (7,054) | — | (7,523) | ||||||||||||||
Changes in assets and liabilities, net of acquisitions: | |||||||||||||||||
(Increase) decrease in receivables | (86,713) | (172,791) | 163,471 | ||||||||||||||
(Increase) decrease in inventories and other current assets | (322,467) | (129,593) | 77,448 | ||||||||||||||
Increase in payables, accruals and income taxes | 95,481 | 212,101 | 7,017 | ||||||||||||||
Increase (decrease) in other long-term liabilities | 47,226 | (35,104) | 20,430 | ||||||||||||||
Pension contributions | (8,959) | (10,277) | (9,527) | ||||||||||||||
Other, net | (23,083) | 3,964 | (434) | ||||||||||||||
Total operating activities | 1,149,373 | 1,160,457 | 1,280,980 | ||||||||||||||
Investing activities: | |||||||||||||||||
Additions to property, plant and equipment | (139,005) | (110,671) | (74,199) | ||||||||||||||
Purchases of businesses, net of cash acquired | (429,714) | (1,959,218) | (116,509) | ||||||||||||||
Proceeds from sale of business/investment | 3,734 | 12,000 | 245,311 | ||||||||||||||
Proceeds from sale of facilities | 11,754 | 2,341 | 9,508 | ||||||||||||||
Other, net | 471 | (294) | (2,481) | ||||||||||||||
Total investing activities | (552,760) | (2,055,842) | 61,630 | ||||||||||||||
Financing activities: | |||||||||||||||||
Net change in short-term borrowings | (73,691) | 243,615 | (328,003) | ||||||||||||||
Repayments of long-term borrowings | — | (59,718) | (102,947) | ||||||||||||||
Repurchases of common stock | (332,821) | (14,711) | (4,685) | ||||||||||||||
Cash dividends paid | (202,169) | (184,595) | (165,035) | ||||||||||||||
Proceeds from stock option exercises | 49,937 | 60,297 | 64,903 | ||||||||||||||
Other, net | (16,955) | (5,551) | (3,669) | ||||||||||||||
Total financing activities | (575,699) | 39,337 | (539,436) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (22,300) | (10,002) | 16,618 | ||||||||||||||
(Decrease) increase in cash and cash equivalents | (1,386) | (866,050) | 819,792 | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Beginning of year | 346,772 | 1,212,822 | 393,030 | ||||||||||||||
End of year | $ | 345,386 | $ | 346,772 | $ | 1,212,822 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Cash provided by (used for): | ||||||||||||
Operating activities: | ||||||||||||
Net income | $ | 861,297 | $ | 777,933 | $ | 681,470 | ||||||
Adjustments to reconcile net income to total operating activities: | ||||||||||||
Depreciation and amortization | 234,042 | 199,490 | 183,227 | |||||||||
Deferred income taxes | 19,380 | (73,682 | ) | (91,205 | ) | |||||||
Share-based compensation expense | 40,394 | 27,315 | 25,091 | |||||||||
(Gain) loss on sale of facilities | (5,332 | ) | 127 | (1,213 | ) | |||||||
Changes in assets and liabilities, net of acquisitions: | ||||||||||||
Decrease (increase) in receivables | 14,398 | (13,383 | ) | (24,581 | ) | |||||||
Decrease (increase) in inventories and other current assets | 16,410 | (59,472 | ) | (6,087 | ) | |||||||
(Decrease) increase in payables, accruals and income taxes | (58,932 | ) | 36,547 | 124,399 | ||||||||
(Decrease) increase in other long-term liabilities | (16,845 | ) | 42,814 | 2,787 | ||||||||
Pension contributions | (5,609 | ) | (5,063 | ) | (54,796 | ) | ||||||
Other, net | 15,219 | (7,108 | ) | (5,833 | ) | |||||||
Total operating activities | 1,114,422 | 925,518 | 833,259 | |||||||||
Investing activities: | ||||||||||||
Additions to property, plant and equipment | (102,346 | ) | (82,076 | ) | (75,074 | ) | ||||||
Purchases of businesses, net of cash acquired | (1,061,945 | ) | (1,129,305 | ) | (556,634 | ) | ||||||
Proceeds from sale of facilities | 11,306 | 2,570 | 6,290 | |||||||||
Other, net | 2,060 | (1,233 | ) | (399 | ) | |||||||
Total investing activities | (1,150,925 | ) | (1,210,044 | ) | (625,817 | ) | ||||||
Financing activities: | ||||||||||||
Net change in short-term borrowings | 130,705 | 258,349 | (9,616 | ) | ||||||||
Proceeds from long-term borrowings | 100,000 | 560,050 | — | |||||||||
Repayments of long-term borrowings | (100,000 | ) | (305,000 | ) | (270,000 | ) | ||||||
Repurchases of common stock | (11,924 | ) | (367,678 | ) | (6,867 | ) | ||||||
Cash dividends paid | (127,496 | ) | (128,911 | ) | (82,735 | ) | ||||||
Acquisition contingent consideration | (3,000 | ) | (25,500 | ) | — | |||||||
Proceeds from stock option exercises | 90,388 | 30,021 | 40,047 | |||||||||
Other, net | (5,760 | ) | (8,291 | ) | — | |||||||
Total financing activities | 72,913 | 13,040 | (329,171 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 2,645 | (20,839 | ) | 50,770 | ||||||||
Increase (decrease) in cash and cash equivalents | 39,055 | (292,325 | ) | (70,959 | ) | |||||||
Cash and cash equivalents: | ||||||||||||
Beginning of year | 353,975 | 646,300 | 717,259 | |||||||||
End of year | $ | 393,030 | $ | 353,975 | $ | 646,300 | ||||||
Page | ||||||||
Index to Financial Statements (Item 15(a)(1)) | ||||||||
Reports of Independent Registered Public Accounting Firm Ernst & Young LLP, Philadelphia, Auditor Firm ID: | 42 | |||||||
/s/ DAVID A. ZAPICO | /s/ WILLIAM J. BURKE | |||||||
Chairman of the Board and Chief Executive Officer | Executive Vice President – Chief Financial Officer | |||||||
February 21, 2023 |
/s/ | ERNST & YOUNG LLP | |||||||
Philadelphia, Pennsylvania | ||||||||
February 21, 2023 |
Impairment Assessment of Indefinite Lived Intangible Assets (other than Goodwill) | ||||||||
Description of the Matter | At December 31, 2022, the Company’s indefinite lived intangible assets (other than goodwill) totaled $889.7 million, consisting of trademarks and trade names. As described in Note 1 to the consolidated financial statements, indefinite lived intangible assets are not amortized but are tested for impairment at least annually in the Company’s fourth quarter. Auditing management’s indefinite lived intangible asset impairment tests was complex and highly judgmental due to the significant measurement uncertainty in estimating the fair value of the trademarks and trade names. In particular, the fair value estimates were sensitive to significant assumptions such as discount rate, forecasted revenues and royalty rates, which are affected by expectations about future market or economic conditions. | |||||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s indefinite lived intangible asset impairment process. For example, we tested controls over management’s review of the valuation models and significant assumptions, including forecasted financial information, as well as management’s controls to validate that the data used in the valuations was complete and accurate. To test the estimated fair value of the Company’s indefinite lived intangible assets, we performed audit procedures that included, among others, assessing the fair value methodologies utilized by management and the significant assumptions discussed above, including the underlying data used in the analyses. For example, when evaluating the significant assumptions, we compared them to current financial and operating plans, market and industry studies, historical trends, and royalty rates used in prior periods. We also assessed the historical accuracy of management’s forecasts and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair value estimates of the trademarks and trade names that would result from changes in the assumptions. We involved our valuation specialists to assist in evaluating the discount rate, royalty rate and valuation methodologies used by the Company. |
/s/ ERNST & YOUNG LLP | ||||||||
We have served as the Company’s auditor since 1930. | ||||||||
Philadelphia, Pennsylvania | ||||||||
February 21, 2023 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Net sales | $ | 6,150,530 | $ | 5,546,514 | $ | 4,540,029 | |||||||||||
Cost of sales | 4,005,261 | 3,633,900 | 2,996,515 | ||||||||||||||
Selling, general and administrative | 644,577 | 603,944 | 515,630 | ||||||||||||||
Total operating expenses | 4,649,838 | 4,237,844 | 3,512,145 | ||||||||||||||
Operating income | 1,500,692 | 1,308,670 | 1,027,884 | ||||||||||||||
Interest expense | (83,186) | (80,381) | (86,062) | ||||||||||||||
Other income (expense), net | 11,186 | (5,119) | 140,487 | ||||||||||||||
Income before income taxes | 1,428,692 | 1,223,170 | 1,082,309 | ||||||||||||||
Provision for income taxes | 269,150 | 233,117 | 209,870 | ||||||||||||||
Net income | $ | 1,159,542 | $ | 990,053 | $ | 872,439 | |||||||||||
Basic earnings per share | $ | 5.04 | $ | 4.29 | $ | 3.80 | |||||||||||
Diluted earnings per share | $ | 5.01 | $ | 4.25 | $ | 3.77 | |||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic shares | 230,208 | 230,955 | 229,435 | ||||||||||||||
Diluted shares | 231,536 | 232,813 | 231,150 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Net income | $ | 1,159,542 | $ | 990,053 | $ | 872,439 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Amounts arising during the period – gains (losses), net of tax (expense) benefit: | |||||||||||||||||
Foreign currency translation: | |||||||||||||||||
Translation adjustments | (123,756) | (47,331) | 64,521 | ||||||||||||||
Change in long-term intercompany notes | (21,419) | (16,333) | 16,695 | ||||||||||||||
Net investment hedge instruments gain (loss), net of tax of $(17,070), $(12,631) and $14,787 in 2022, 2021 and 2020, respectively | 52,416 | 39,047 | (45,716) | ||||||||||||||
Defined benefit pension plans: | |||||||||||||||||
Net actuarial (loss) gain, net of tax of $4,769, $(15,298) and $8,637 in 2022, 2021 and 2020, respectively | (18,238) | 46,049 | (18,733) | ||||||||||||||
Amortization of net actuarial loss, net of tax of ($2,111), ($4,103) and ($3,539) in 2022, 2021 and 2020, respectively | 6,420 | 12,249 | 11,940 | ||||||||||||||
Amortization of prior service costs, net of tax of $(25), ($114) and $7 in 2022, 2021 and 2020, respectively | 76 | 343 | (36) | ||||||||||||||
Other comprehensive (loss) income | (104,501) | 34,024 | 28,671 | ||||||||||||||
Total comprehensive income | $ | 1,055,041 | $ | 1,024,077 | $ | 901,110 |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 345,386 | $ | 346,772 | |||||||
Receivables | 919,335 | 829,213 | |||||||||
Inventories, net | 1,044,284 | 769,175 | |||||||||
Other current assets | 219,053 | 183,605 | |||||||||
Total current assets | 2,528,058 | 2,128,765 | |||||||||
Property, plant and equipment, net | 635,641 | 617,138 | |||||||||
Right of use assets, net | 170,295 | 169,924 | |||||||||
Goodwill | 5,372,562 | 5,238,726 | |||||||||
Other intangibles, net | 3,342,085 | 3,368,629 | |||||||||
Investments and other assets | 382,479 | 375,005 | |||||||||
Total assets | $ | 12,431,120 | $ | 11,898,187 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term borrowings and current portion of long-term debt, net | $ | 226,079 | $ | 315,093 | |||||||
Accounts payable | 497,134 | 470,252 | |||||||||
Customer advanced payments | 357,674 | 298,728 | |||||||||
Income taxes payable | 48,171 | 35,904 | |||||||||
Accrued liabilities and other | 435,144 | 443,337 | |||||||||
Total current liabilities | 1,564,202 | 1,563,314 | |||||||||
Long-term debt, net | 2,158,928 | 2,229,148 | |||||||||
Deferred income taxes | 694,267 | 719,675 | |||||||||
Other long-term liabilities | 537,211 | 514,166 | |||||||||
Total liabilities | 4,954,608 | 5,026,303 | |||||||||
Stockholders’ equity: | |||||||||||
Preferred stock,$0.01 par value; authorized 5,000,000 shares; none issued | — | — | |||||||||
Common stock, $0.01 par value; authorized 800,000,000 shares; issued: 2022 – 268,588,293 shares; 2021 – 267,800,160 shares | 2,700 | 2,689 | |||||||||
Capital in excess of par value | 1,094,236 | 1,012,526 | |||||||||
Retained earnings | 8,857,485 | 7,900,113 | |||||||||
Accumulated other comprehensive loss | (574,945) | (470,444) | |||||||||
Treasury stock: 2022 – 38,537,635 shares; 2021 – 36,137,864 shares | (1,902,964) | (1,573,000) | |||||||||
Total stockholders’ equity | 7,476,512 | 6,871,884 | |||||||||
Total liabilities and stockholders’ equity | $ | 12,431,120 | $ | 11,898,187 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Capital stock | |||||||||||||||||
Preferred stock, $0.01 par value | $ | — | $ | — | $ | — | |||||||||||
Common stock, $0.01 par value | |||||||||||||||||
Balance at the beginning of the year | 2,689 | 2,676 | 2,662 | ||||||||||||||
Shares issued | 11 | 13 | 14 | ||||||||||||||
Balance at the end of the year | 2,700 | 2,689 | 2,676 | ||||||||||||||
Capital in excess of par value | |||||||||||||||||
Balance at the beginning of the year | 1,012,526 | 921,752 | 832,821 | ||||||||||||||
Issuance of common stock under employee stock plans | 34,335 | 44,671 | 47,366 | ||||||||||||||
Share-based compensation costs | 47,375 | 46,103 | 41,565 | ||||||||||||||
Balance at the end of the year | 1,094,236 | 1,012,526 | 921,752 | ||||||||||||||
Retained earnings | |||||||||||||||||
Balance at the beginning of the year | 7,900,113 | 7,094,656 | 6,387,612 | ||||||||||||||
Net income | 1,159,542 | 990,053 | 872,439 | ||||||||||||||
Cash dividends paid | (202,169) | (184,595) | (165,035) | ||||||||||||||
Adoption of ASU 2016-13 | — | — | (360) | ||||||||||||||
Other | (1) | (1) | — | ||||||||||||||
Balance at the end of the year | 8,857,485 | 7,900,113 | 7,094,656 | ||||||||||||||
Accumulated other comprehensive (loss) income | |||||||||||||||||
Foreign currency translation: | |||||||||||||||||
Balance at the beginning of the year | (275,365) | (250,748) | (286,248) | ||||||||||||||
Translation adjustments | (123,756) | (47,331) | 64,521 | ||||||||||||||
Change in long-term intercompany notes | (21,419) | (16,333) | 16,695 | ||||||||||||||
Net investment hedge instruments gain (loss), net of tax of $(17,070), $(12,631) and $14,787 in 2022, 2021 and 2020, respectively | 52,416 | 39,047 | (45,716) | ||||||||||||||
Balance at the end of the year | (368,124) | (275,365) | (250,748) | ||||||||||||||
Defined benefit pension plans: | |||||||||||||||||
Balance at the beginning of the year | (195,079) | (253,720) | (246,891) | ||||||||||||||
Net actuarial (loss) gain, net of tax of $4,769, $(15,298) and $8,637 in 2022, 2021 and 2020, respectively | (18,238) | 46,049 | (18,733) | ||||||||||||||
Amortization of net actuarial loss, net of tax of ($2,111), ($4,103) and ($3,539) in 2022, 2021 and 2020, respectively | 6,420 | 12,249 | 11,940 | ||||||||||||||
Amortization of prior service costs, net of tax of $(25), ($114) and $7 in 2022, 2021 and 2020, respectively | 76 | 343 | (36) | ||||||||||||||
Balance at the end of the year | (206,821) | (195,079) | (253,720) | ||||||||||||||
Accumulated other comprehensive loss at the end of the year | (574,945) | (470,444) | (504,468) | ||||||||||||||
Treasury stock | |||||||||||||||||
Balance at the beginning of the year | (1,573,000) | (1,565,270) | (1,574,464) | ||||||||||||||
Issuance of common stock under employee stock plans | 2,857 | 6,981 | 13,879 | ||||||||||||||
Purchase of treasury stock | (332,821) | (14,711) | (4,685) | ||||||||||||||
Balance at the end of the year | (1,902,964) | (1,573,000) | (1,565,270) | ||||||||||||||
Total stockholders’ equity | $ | 7,476,512 | $ | 6,871,884 | $ | 5,949,346 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Cash provided by (used for): | |||||||||||||||||
Operating activities: | |||||||||||||||||
Net income | $ | 1,159,542 | $ | 990,053 | $ | 872,439 | |||||||||||
Adjustments to reconcile net income to total operating activities: | |||||||||||||||||
Depreciation and amortization | 319,427 | 292,112 | 255,275 | ||||||||||||||
Deferred income taxes | (67,818) | (29,762) | 1,839 | ||||||||||||||
Share-based compensation expense | 47,375 | 46,103 | 41,565 | ||||||||||||||
Gain on sale of business/investment | (3,584) | (6,349) | (141,020) | ||||||||||||||
Gain on sale of facilities | (7,054) | — | (7,523) | ||||||||||||||
Changes in assets and liabilities, net of acquisitions: | |||||||||||||||||
(Increase) decrease in receivables | (86,713) | (172,791) | 163,471 | ||||||||||||||
(Increase) decrease in inventories and other current assets | (322,467) | (129,593) | 77,448 | ||||||||||||||
Increase in payables, accruals and income taxes | 95,481 | 212,101 | 7,017 | ||||||||||||||
Increase (decrease) in other long-term liabilities | 47,226 | (35,104) | 20,430 | ||||||||||||||
Pension contributions | (8,959) | (10,277) | (9,527) | ||||||||||||||
Other, net | (23,083) | 3,964 | (434) | ||||||||||||||
Total operating activities | 1,149,373 | 1,160,457 | 1,280,980 | ||||||||||||||
Investing activities: | |||||||||||||||||
Additions to property, plant and equipment | (139,005) | (110,671) | (74,199) | ||||||||||||||
Purchases of businesses, net of cash acquired | (429,714) | (1,959,218) | (116,509) | ||||||||||||||
Proceeds from sale of business/investment | 3,734 | 12,000 | 245,311 | ||||||||||||||
Proceeds from sale of facilities | 11,754 | 2,341 | 9,508 | ||||||||||||||
Other, net | 471 | (294) | (2,481) | ||||||||||||||
Total investing activities | (552,760) | (2,055,842) | 61,630 | ||||||||||||||
Financing activities: | |||||||||||||||||
Net change in short-term borrowings | (73,691) | 243,615 | (328,003) | ||||||||||||||
Repayments of long-term borrowings | — | (59,718) | (102,947) | ||||||||||||||
Repurchases of common stock | (332,821) | (14,711) | (4,685) | ||||||||||||||
Cash dividends paid | (202,169) | (184,595) | (165,035) | ||||||||||||||
Proceeds from stock option exercises | 49,937 | 60,297 | 64,903 | ||||||||||||||
Other, net | (16,955) | (5,551) | (3,669) | ||||||||||||||
Total financing activities | (575,699) | 39,337 | (539,436) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (22,300) | (10,002) | 16,618 | ||||||||||||||
(Decrease) increase in cash and cash equivalents | (1,386) | (866,050) | 819,792 | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Beginning of year | 346,772 | 1,212,822 | 393,030 | ||||||||||||||
End of year | $ | 345,386 | $ | 346,772 | $ | 1,212,822 |
2019 | 2018 | 2017 | ||||||||||
(In thousands) | ||||||||||||
Weighted average shares: | ||||||||||||
Basic shares | 227,759 | 230,823 | 230,229 | |||||||||
Equity-based compensation plans | 1,636 | 1,889 | 1,616 | |||||||||
Diluted shares | 229,395 | 232,712 | 231,845 | |||||||||
Page | ||||||||
Index to Financial Statements (Item 15(a)(1)) | ||||||||
Reports of Independent Registered Public Accounting Firm Ernst & Young LLP, Philadelphia, Auditor Firm ID: | 42 | |||||||
/s/ DAVID A. ZAPICO | /s/ WILLIAM J. BURKE | |||||||
Chairman of the Board and Chief Executive Officer | Executive Vice President – Chief Financial Officer | |||||||
February 21, 2023 |
/s/ | ERNST & YOUNG LLP | |||||||
Philadelphia, Pennsylvania | ||||||||
February 21, 2023 |
Impairment Assessment of Indefinite Lived Intangible Assets (other than Goodwill) | ||||||||
Description of the Matter | At December 31, 2022, the Company’s indefinite lived intangible assets (other than goodwill) totaled $889.7 million, consisting of trademarks and trade names. As described in Note 1 to the consolidated financial statements, indefinite lived intangible assets are not amortized but are tested for impairment at least annually in the Company’s fourth quarter. Auditing management’s indefinite lived intangible asset impairment tests was complex and highly judgmental due to the significant measurement uncertainty in estimating the fair value of the trademarks and trade names. In particular, the fair value estimates were sensitive to significant assumptions such as discount rate, forecasted revenues and royalty rates, which are affected by expectations about future market or economic conditions. | |||||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s indefinite lived intangible asset impairment process. For example, we tested controls over management’s review of the valuation models and significant assumptions, including forecasted financial information, as well as management’s controls to validate that the data used in the valuations was complete and accurate. To test the estimated fair value of the Company’s indefinite lived intangible assets, we performed audit procedures that included, among others, assessing the fair value methodologies utilized by management and the significant assumptions discussed above, including the underlying data used in the analyses. For example, when evaluating the significant assumptions, we compared them to current financial and operating plans, market and industry studies, historical trends, and royalty rates used in prior periods. We also assessed the historical accuracy of management’s forecasts and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair value estimates of the trademarks and trade names that would result from changes in the assumptions. We involved our valuation specialists to assist in evaluating the discount rate, royalty rate and valuation methodologies used by the Company. |
/s/ ERNST & YOUNG LLP | ||||||||
We have served as the Company’s auditor since 1930. | ||||||||
Philadelphia, Pennsylvania | ||||||||
February 21, 2023 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Net sales | $ | 6,150,530 | $ | 5,546,514 | $ | 4,540,029 | |||||||||||
Cost of sales | 4,005,261 | 3,633,900 | 2,996,515 | ||||||||||||||
Selling, general and administrative | 644,577 | 603,944 | 515,630 | ||||||||||||||
Total operating expenses | 4,649,838 | 4,237,844 | 3,512,145 | ||||||||||||||
Operating income | 1,500,692 | 1,308,670 | 1,027,884 | ||||||||||||||
Interest expense | (83,186) | (80,381) | (86,062) | ||||||||||||||
Other income (expense), net | 11,186 | (5,119) | 140,487 | ||||||||||||||
Income before income taxes | 1,428,692 | 1,223,170 | 1,082,309 | ||||||||||||||
Provision for income taxes | 269,150 | 233,117 | 209,870 | ||||||||||||||
Net income | $ | 1,159,542 | $ | 990,053 | $ | 872,439 | |||||||||||
Basic earnings per share | $ | 5.04 | $ | 4.29 | $ | 3.80 | |||||||||||
Diluted earnings per share | $ | 5.01 | $ | 4.25 | $ | 3.77 | |||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic shares | 230,208 | 230,955 | 229,435 | ||||||||||||||
Diluted shares | 231,536 | 232,813 | 231,150 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Net income | $ | 1,159,542 | $ | 990,053 | $ | 872,439 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Amounts arising during the period – gains (losses), net of tax (expense) benefit: | |||||||||||||||||
Foreign currency translation: | |||||||||||||||||
Translation adjustments | (123,756) | (47,331) | 64,521 | ||||||||||||||
Change in long-term intercompany notes | (21,419) | (16,333) | 16,695 | ||||||||||||||
Net investment hedge instruments gain (loss), net of tax of $(17,070), $(12,631) and $14,787 in 2022, 2021 and 2020, respectively | 52,416 | 39,047 | (45,716) | ||||||||||||||
Defined benefit pension plans: | |||||||||||||||||
Net actuarial (loss) gain, net of tax of $4,769, $(15,298) and $8,637 in 2022, 2021 and 2020, respectively | (18,238) | 46,049 | (18,733) | ||||||||||||||
Amortization of net actuarial loss, net of tax of ($2,111), ($4,103) and ($3,539) in 2022, 2021 and 2020, respectively | 6,420 | 12,249 | 11,940 | ||||||||||||||
Amortization of prior service costs, net of tax of $(25), ($114) and $7 in 2022, 2021 and 2020, respectively | 76 | 343 | (36) | ||||||||||||||
Other comprehensive (loss) income | (104,501) | 34,024 | 28,671 | ||||||||||||||
Total comprehensive income | $ | 1,055,041 | $ | 1,024,077 | $ | 901,110 |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 345,386 | $ | 346,772 | |||||||
Receivables | 919,335 | 829,213 | |||||||||
Inventories, net | 1,044,284 | 769,175 | |||||||||
Other current assets | 219,053 | 183,605 | |||||||||
Total current assets | 2,528,058 | 2,128,765 | |||||||||
Property, plant and equipment, net | 635,641 | 617,138 | |||||||||
Right of use assets, net | 170,295 | 169,924 | |||||||||
Goodwill | 5,372,562 | 5,238,726 | |||||||||
Other intangibles, net | 3,342,085 | 3,368,629 | |||||||||
Investments and other assets | 382,479 | 375,005 | |||||||||
Total assets | $ | 12,431,120 | $ | 11,898,187 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term borrowings and current portion of long-term debt, net | $ | 226,079 | $ | 315,093 | |||||||
Accounts payable | 497,134 | 470,252 | |||||||||
Customer advanced payments | 357,674 | 298,728 | |||||||||
Income taxes payable | 48,171 | 35,904 | |||||||||
Accrued liabilities and other | 435,144 | 443,337 | |||||||||
Total current liabilities | 1,564,202 | 1,563,314 | |||||||||
Long-term debt, net | 2,158,928 | 2,229,148 | |||||||||
Deferred income taxes | 694,267 | 719,675 | |||||||||
Other long-term liabilities | 537,211 | 514,166 | |||||||||
Total liabilities | 4,954,608 | 5,026,303 | |||||||||
Stockholders’ equity: | |||||||||||
Preferred stock,$0.01 par value; authorized 5,000,000 shares; none issued | — | — | |||||||||
Common stock, $0.01 par value; authorized 800,000,000 shares; issued: 2022 – 268,588,293 shares; 2021 – 267,800,160 shares | 2,700 | 2,689 | |||||||||
Capital in excess of par value | 1,094,236 | 1,012,526 | |||||||||
Retained earnings | 8,857,485 | 7,900,113 | |||||||||
Accumulated other comprehensive loss | (574,945) | (470,444) | |||||||||
Treasury stock: 2022 – 38,537,635 shares; 2021 – 36,137,864 shares | (1,902,964) | (1,573,000) | |||||||||
Total stockholders’ equity | 7,476,512 | 6,871,884 | |||||||||
Total liabilities and stockholders’ equity | $ | 12,431,120 | $ | 11,898,187 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Capital stock | |||||||||||||||||
Preferred stock, $0.01 par value | $ | — | $ | — | $ | — | |||||||||||
Common stock, $0.01 par value | |||||||||||||||||
Balance at the beginning of the year | 2,689 | 2,676 | 2,662 | ||||||||||||||
Shares issued | 11 | 13 | 14 | ||||||||||||||
Balance at the end of the year | 2,700 | 2,689 | 2,676 | ||||||||||||||
Capital in excess of par value | |||||||||||||||||
Balance at the beginning of the year | 1,012,526 | 921,752 | 832,821 | ||||||||||||||
Issuance of common stock under employee stock plans | 34,335 | 44,671 | 47,366 | ||||||||||||||
Share-based compensation costs | 47,375 | 46,103 | 41,565 | ||||||||||||||
Balance at the end of the year | 1,094,236 | 1,012,526 | 921,752 | ||||||||||||||
Retained earnings | |||||||||||||||||
Balance at the beginning of the year | 7,900,113 | 7,094,656 | 6,387,612 | ||||||||||||||
Net income | 1,159,542 | 990,053 | 872,439 | ||||||||||||||
Cash dividends paid | (202,169) | (184,595) | (165,035) | ||||||||||||||
Adoption of ASU 2016-13 | — | — | (360) | ||||||||||||||
Other | (1) | (1) | — | ||||||||||||||
Balance at the end of the year | 8,857,485 | 7,900,113 | 7,094,656 | ||||||||||||||
Accumulated other comprehensive (loss) income | |||||||||||||||||
Foreign currency translation: | |||||||||||||||||
Balance at the beginning of the year | (275,365) | (250,748) | (286,248) | ||||||||||||||
Translation adjustments | (123,756) | (47,331) | 64,521 | ||||||||||||||
Change in long-term intercompany notes | (21,419) | (16,333) | 16,695 | ||||||||||||||
Net investment hedge instruments gain (loss), net of tax of $(17,070), $(12,631) and $14,787 in 2022, 2021 and 2020, respectively | 52,416 | 39,047 | (45,716) | ||||||||||||||
Balance at the end of the year | (368,124) | (275,365) | (250,748) | ||||||||||||||
Defined benefit pension plans: | |||||||||||||||||
Balance at the beginning of the year | (195,079) | (253,720) | (246,891) | ||||||||||||||
Net actuarial (loss) gain, net of tax of $4,769, $(15,298) and $8,637 in 2022, 2021 and 2020, respectively | (18,238) | 46,049 | (18,733) | ||||||||||||||
Amortization of net actuarial loss, net of tax of ($2,111), ($4,103) and ($3,539) in 2022, 2021 and 2020, respectively | 6,420 | 12,249 | 11,940 | ||||||||||||||
Amortization of prior service costs, net of tax of $(25), ($114) and $7 in 2022, 2021 and 2020, respectively | 76 | 343 | (36) | ||||||||||||||
Balance at the end of the year | (206,821) | (195,079) | (253,720) | ||||||||||||||
Accumulated other comprehensive loss at the end of the year | (574,945) | (470,444) | (504,468) | ||||||||||||||
Treasury stock | |||||||||||||||||
Balance at the beginning of the year | (1,573,000) | (1,565,270) | (1,574,464) | ||||||||||||||
Issuance of common stock under employee stock plans | 2,857 | 6,981 | 13,879 | ||||||||||||||
Purchase of treasury stock | (332,821) | (14,711) | (4,685) | ||||||||||||||
Balance at the end of the year | (1,902,964) | (1,573,000) | (1,565,270) | ||||||||||||||
Total stockholders’ equity | $ | 7,476,512 | $ | 6,871,884 | $ | 5,949,346 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Cash provided by (used for): | |||||||||||||||||
Operating activities: | |||||||||||||||||
Net income | $ | 1,159,542 | $ | 990,053 | $ | 872,439 | |||||||||||
Adjustments to reconcile net income to total operating activities: | |||||||||||||||||
Depreciation and amortization | 319,427 | 292,112 | 255,275 | ||||||||||||||
Deferred income taxes | (67,818) | (29,762) | 1,839 | ||||||||||||||
Share-based compensation expense | 47,375 | 46,103 | 41,565 | ||||||||||||||
Gain on sale of business/investment | (3,584) | (6,349) | (141,020) | ||||||||||||||
Gain on sale of facilities | (7,054) | — | (7,523) | ||||||||||||||
Changes in assets and liabilities, net of acquisitions: | |||||||||||||||||
(Increase) decrease in receivables | (86,713) | (172,791) | 163,471 | ||||||||||||||
(Increase) decrease in inventories and other current assets | (322,467) | (129,593) | 77,448 | ||||||||||||||
Increase in payables, accruals and income taxes | 95,481 | 212,101 | 7,017 | ||||||||||||||
Increase (decrease) in other long-term liabilities | 47,226 | (35,104) | 20,430 | ||||||||||||||
Pension contributions | (8,959) | (10,277) | (9,527) | ||||||||||||||
Other, net | (23,083) | 3,964 | (434) | ||||||||||||||
Total operating activities | 1,149,373 | 1,160,457 | 1,280,980 | ||||||||||||||
Investing activities: | |||||||||||||||||
Additions to property, plant and equipment | (139,005) | (110,671) | (74,199) | ||||||||||||||
Purchases of businesses, net of cash acquired | (429,714) | (1,959,218) | (116,509) | ||||||||||||||
Proceeds from sale of business/investment | 3,734 | 12,000 | 245,311 | ||||||||||||||
Proceeds from sale of facilities | 11,754 | 2,341 | 9,508 | ||||||||||||||
Other, net | 471 | (294) | (2,481) | ||||||||||||||
Total investing activities | (552,760) | (2,055,842) | 61,630 | ||||||||||||||
Financing activities: | |||||||||||||||||
Net change in short-term borrowings | (73,691) | 243,615 | (328,003) | ||||||||||||||
Repayments of long-term borrowings | — | (59,718) | (102,947) | ||||||||||||||
Repurchases of common stock | (332,821) | (14,711) | (4,685) | ||||||||||||||
Cash dividends paid | (202,169) | (184,595) | (165,035) | ||||||||||||||
Proceeds from stock option exercises | 49,937 | 60,297 | 64,903 | ||||||||||||||
Other, net | (16,955) | (5,551) | (3,669) | ||||||||||||||
Total financing activities | (575,699) | 39,337 | (539,436) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (22,300) | (10,002) | 16,618 | ||||||||||||||
(Decrease) increase in cash and cash equivalents | (1,386) | (866,050) | 819,792 | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Beginning of year | 346,772 | 1,212,822 | 393,030 | ||||||||||||||
End of year | $ | 345,386 | $ | 346,772 | $ | 1,212,822 |
2022 | 2021 | 2020 | |||||||||||||||
(In thousands) | |||||||||||||||||
Weighted average shares: | |||||||||||||||||
Basic shares | 230,208 | 230,955 | 229,435 | ||||||||||||||
Equity-based compensation plans | 1,328 | 1,858 | 1,715 | ||||||||||||||
Diluted shares | 231,536 | 232,813 | 231,150 |
2022 | 2021 | ||||||||||
(In thousands) | |||||||||||
Contract assets – January 1 | $ | 95,274 | $ | 68,971 | |||||||
Contract assets – December 31 | 119,741 | 95,274 | |||||||||
Change in contract assets – increase | 24,467 | 26,303 | |||||||||
Contract liabilities – January 1 | 328,816 | 215,093 | |||||||||
Contract liabilities – December 31 | 398,692 | 328,816 | |||||||||
Change in contract liabilities – (increase) | (69,876) | (113,723) | |||||||||
Net change | $ | (45,409) | $ | (87,420) |
2019 | 2018 | |||||||
(In thousands) | ||||||||
Contract assets – January 1 | $ | 58,266 | $ | 32,658 | ||||
Contract assets – December 31 | 73,039 | 58,266 | ||||||
Change in contract assets – increase | 14,773 | 25,608 | ||||||
Contract liabilities – January 1 | 146,162 | 117,058 | ||||||
Contract liabilities – December 31 | 167,306 | 146,162 | ||||||
Change in contract liabilities – increase | (21,144 | ) | (29,104 | ) | ||||
Net change | $ | (6,371 | ) | $ | (3,496 | ) | ||
2019 | ||||||||||||
EIG | EMG | Total | ||||||||||
(In thousands) | ||||||||||||
United States | $ | 1,685,369 | $ | 998,317 | $ | 2,683,686 | ||||||
International (1) : | ||||||||||||
United Kingdom | 64,423 | 132,485 | 196,908 | |||||||||
European Union countries | 434,072 | 392,283 | 826,355 | |||||||||
Asia | 773,034 | 186,535 | 959,569 | |||||||||
Other foreign countries | 365,983 | 126,056 | 492,039 | |||||||||
Total international | 1,637,512 | 837,359 | 2,474,871 | |||||||||
Consolidated net sales | $ | 3,322,881 | $ | 1,835,676 | $ | 5,158,557 | ||||||
2018 | ||||||||||||
EIG | EMG | Total | ||||||||||
(In thousands) | ||||||||||||
United States | $ | 1,446,974 | $ | 950,358 | $ | 2,397,332 | ||||||
International (1) : | ||||||||||||
United Kingdom | 61,513 | 135,077 | 196,590 | |||||||||
European Union countries | 389,032 | 399,547 | 788,579 | |||||||||
Asia | 780,135 | 205,047 | 985,182 | |||||||||
Other foreign countries | 351,305 | 126,884 | 478,189 | |||||||||
Total international | 1,581,985 | 866,555 | 2,448,540 | |||||||||
Consolidated net sales | $ | 3,028,959 | $ | 1,816,913 | $ | 4,845,872 | ||||||
2022 | |||||||||||||||||
EIG | EMG | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
United States | $ | 2,171,684 | $ | 982,579 | $ | 3,154,263 | |||||||||||
International(1): | |||||||||||||||||
United Kingdom | 92,668 | 117,788 | 210,456 | ||||||||||||||
European Union countries | 510,052 | 420,756 | 930,808 | ||||||||||||||
Asia | 1,050,843 | 266,011 | 1,316,854 | ||||||||||||||
Other foreign countries | 404,106 | 134,043 | 538,149 | ||||||||||||||
Total international | 2,057,669 | 938,598 | 2,996,267 | ||||||||||||||
Consolidated net sales | $ | 4,229,353 | $ | 1,921,177 | $ | 6,150,530 |
2017 | ||||||||||||
EIG | EMG | Total | ||||||||||
(In thousands) | ||||||||||||
United States | $ | 1,284,570 | $ | 801,610 | $ | 2,086,180 | ||||||
International (1) : | ||||||||||||
United Kingdom | 59,319 | 127,215 | 186,534 | |||||||||
European Union countries | 327,970 | 364,146 | 692,116 | |||||||||
Asia | 685,070 | 194,356 | 879,426 | |||||||||
Other foreign countries | 333,625 | 122,289 | 455,914 | |||||||||
Total international | 1,405,984 | 808,006 | 2,213,990 | |||||||||
Consolidated net sales | $ | 2,690,554 | $ | 1,609,616 | $ | 4,300,170 | ||||||
2021 | |||||||||||||||||
EIG | EMG | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
United States | $ | 1,910,203 | $ | 890,737 | $ | 2,800,940 | |||||||||||
International(1): | |||||||||||||||||
United Kingdom | 96,206 | 121,290 | 217,496 | ||||||||||||||
European Union countries | 482,426 | 403,890 | 886,316 | ||||||||||||||
Asia | 927,027 | 254,370 | 1,181,397 | ||||||||||||||
Other foreign countries | 347,896 | 112,469 | 460,365 | ||||||||||||||
Total international | 1,853,555 | 892,019 | 2,745,574 | ||||||||||||||
Consolidated net sales | $ | 3,763,758 | $ | 1,782,756 | $ | 5,546,514 |
2020 | |||||||||||||||||
EIG | EMG | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
United States | $ | 1,513,967 | $ | 816,159 | $ | 2,330,126 | |||||||||||
International(1): | |||||||||||||||||
United Kingdom | 54,158 | 117,469 | 171,627 | ||||||||||||||
European Union countries | 371,884 | 324,203 | 696,087 | ||||||||||||||
Asia | 769,532 | 189,987 | 959,519 | ||||||||||||||
Other foreign countries | 280,387 | 102,283 | 382,670 | ||||||||||||||
Total international | 1,475,961 | 733,942 | 2,209,903 | ||||||||||||||
Consolidated net sales | $ | 2,989,928 | $ | 1,550,101 | $ | 4,540,029 |
2019 | ||||||||||||
EIG | EMG | Total | ||||||||||
(In thousands) | ||||||||||||
Process and analytical instrumentation | $ | 2,393,587 | $ | — | $ | 2,393,587 | ||||||
Aerospace and power | 929,294 | 491,171 | 1,420,465 | |||||||||
Automation and engineered solutions | — | 1,344,505 | 1,344,505 | |||||||||
Consolidated net sales | $ | 3,322,881 | $ | 1,835,676 | $ | 5,158,557 | ||||||
2018 | ||||||||||||
EIG | EMG | Total | ||||||||||
(In thousands) | ||||||||||||
Process and analytical instrumentation | $ | 2,120,448 | $ | — | $ | 2,120,448 | ||||||
Aerospace and power | 908,511 | 456,517 | 1,365,028 | |||||||||
Automation and engineered solutions | — | 1,360,396 | 1,360,396 | |||||||||
Consolidated net sales | $ | 3,028,959 | $ | 1,816,913 | $ | 4,845,872 | ||||||
2022 | |||||||||||||||||
EIG | EMG | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Process and analytical instrumentation | $ | 3,061,263 | $ | — | $ | 3,061,263 | |||||||||||
Aerospace and power | 1,168,090 | 549,735 | 1,717,825 | ||||||||||||||
Automation and engineered solutions | — | 1,371,442 | 1,371,442 | ||||||||||||||
Consolidated net sales | $ | 4,229,353 | $ | 1,921,177 | $ | 6,150,530 |
2021 | |||||||||||||||||
EIG | EMG | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Process and analytical instrumentation | $ | 2,627,476 | $ | — | $ | 2,627,476 | |||||||||||
Aerospace and power | 1,136,282 | 506,925 | 1,643,207 | ||||||||||||||
Automation and engineered solutions | — | 1,275,831 | 1,275,831 | ||||||||||||||
Consolidated net sales | $ | 3,763,758 | $ | 1,782,756 | $ | 5,546,514 |
2020 | |||||||||||||||||
EIG | EMG | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Process and analytical instrumentation | $ | 2,199,167 | $ | — | $ | 2,199,167 | |||||||||||
Aerospace and power | 790,761 | 466,343 | 1,257,104 | ||||||||||||||
Automation and engineered solutions | — | 1,083,758 | 1,083,758 | ||||||||||||||
Consolidated net sales | $ | 2,989,928 | $ | 1,550,101 | $ | 4,540,029 |
2019 | 2022 | ||||||||||||||||||||||||||||
EIG | EMG | Total | EIG | EMG | Total | ||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||||
Products transferred at a point in time | $ | 2,680,296 | $ | 1,670,448 | $ | 4,350,744 | Products transferred at a point in time | $ | 3,471,118 | $ | 1,680,558 | $ | 5,151,676 | ||||||||||||||||
Products and services transferred over time | 642,585 | 165,228 | 807,813 | Products and services transferred over time | 758,235 | 240,619 | 998,854 | ||||||||||||||||||||||
Consolidated net sales | $ | 3,322,881 | $ | 1,835,676 | $ | 5,158,557 | Consolidated net sales | $ | 4,229,353 | $ | 1,921,177 | $ | 6,150,530 | ||||||||||||||||
2021 | |||||||||||||||||
EIG | EMG | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Products transferred at a point in time | $ | 3,048,819 | $ | 1,596,911 | $ | 4,645,730 | |||||||||||
Products and services transferred over time | 714,939 | 185,845 | 900,784 | ||||||||||||||
Consolidated net sales | $ | 3,763,758 | $ | 1,782,756 | $ | 5,546,514 |
2020 | |||||||||||||||||
EIG | EMG | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Products transferred at a point in time | $ | 2,427,254 | $ | 1,390,574 | $ | 3,817,828 | |||||||||||
Products and services transferred over time | 562,674 | 159,527 | 722,201 | ||||||||||||||
Consolidated net sales | $ | 2,989,928 | $ | 1,550,101 | $ | 4,540,029 |
2018 | ||||||||||||
EIG | EMG | Total | ||||||||||
(In thousands) | ||||||||||||
Products transferred at a point in time | $ | 2,533,718 | $ | 1,690,124 | $ | 4,223,842 | ||||||
Products and services transferred over time | 495,241 | 126,789 | 622,030 | |||||||||
Consolidated net sales | $ | 3,028,959 | $ | 1,816,913 | $ | 4,845,872 | ||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Balance at the beginning of the year | $ | 23,482 | $ | 22,872 | $ | 22,007 | Balance at the beginning of the year | $ | 27,478 | $ | 27,839 | $ | 27,611 | ||||||||||||||||
Accruals for warranties issued during the year | 21,145 | 13,897 | 15,951 | Accruals for warranties issued during the year | 11,414 | 11,518 | 12,000 | ||||||||||||||||||||||
Settlements made during the year | (19,637 | ) | (14,509 | ) | (17,854 | ) | Settlements made during the year | (11,835) | (13,669) | (14,602) | |||||||||||||||||||
Warranty accruals related to acquired businesses and other during the year | 2,621 | 1,222 | 2,768 | Warranty accruals related to acquired businesses and other during the year | (570) | 1,790 | 2,830 | ||||||||||||||||||||||
Balance at the end of the year | $ | 27,611 | $ | 23,482 | $ | 22,872 | Balance at the end of the year | $ | 26,487 | $ | 27,478 | $ | 27,839 | ||||||||||||||||
2019 | 2018 | |||||||
Fair Value | Fair Value | |||||||
(In thousands) | ||||||||
Mutual fund investments | $ | 8,390 | $ | 7,655 |
2022 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Mutual fund investments | $ | 9,856 | $ | 9,856 | $ | — | $ | — | |||||||||||||||
Foreign currency forward contracts | 3,032 | — | 3,032 | — |
2021 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Mutual fund investments | $ | 10,703 | $ | 10,703 | $ | — | $ | — | |||||||||||||||
2019 | 2018 | |||||||||||||||
Recorded Amount | Fair Value | Recorded Amount | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Long-term debt, net (including current portion) | $ | (2,382,041 | ) | $ | (2,531,549 | ) | $ | (2,378,809 | ) | $ | (2,368,676 | ) |
PDT | Gatan | Total | ||||||||||
Property, plant and equipment | $ | 1.0 | $ | 8.8 | $ | 9.8 | ||||||
Goodwill | 42.3 | 398.9 | 441.2 | |||||||||
Other intangible assets | 70.0 | 487.6 | 557.6 | |||||||||
Long-term assets | 1.7 | 11.8 | 13.5 | |||||||||
Long-term liabilities | (1.3 | ) | (5.0 | ) | (6.3 | ) | ||||||
Net working capital and other (1) | 9.7 | 36.4 | 46.1 | |||||||||
Total cash paid | $ | 123.4 | $ | 938.5 | $ | 1,061.9 | ||||||
Property, plant and | $ | 11.8 | |||||||||||||||
Goodwill | 197.8 | ||||||||||||||||
Other intangible assets | 213.3 | ||||||||||||||||
Deferred income taxes | (23.5) | ||||||||||||||||
Net working capital and other(1) | 30.3 | ||||||||||||||||
Total cash | $ | 429.7 |
EIG | EMG | Total | EIG | EMG | Total | ||||||||||||||||||||||||
(In millions) | (In millions) | ||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 2,077.0 | $ | 1,038.6 | $ | 3,115.6 | |||||||||||||||||||||||
Goodwill acquired | 396.2 | 139.0 | 535.2 | ||||||||||||||||||||||||||
Purchase price allocation adjustments and other | (1.6 | ) | — | (1.6 | ) | ||||||||||||||||||||||||
Foreign currency translation adjustments | (19.6 | ) | (17.6 | ) | (37.2 | ) | |||||||||||||||||||||||
Balance at December 31, 2018 | 2,452.0 | 1,160.0 | 3,612.0 | ||||||||||||||||||||||||||
Balance at December 31, 2020 | Balance at December 31, 2020 | $ | 3,050.3 | $ | 1,174.6 | $ | 4,224.9 | ||||||||||||||||||||||
Goodwill acquired | 398.9 | 42.3 | 441.2 | Goodwill acquired | 1,037.9 | 5.9 | 1,043.8 | ||||||||||||||||||||||
Purchase price allocation adjustments and other | 35.5 | (50.0 | ) | (14.5 | ) | Purchase price allocation adjustments and other | 1.9 | — | 1.9 | ||||||||||||||||||||
Foreign currency translation adjustments | 5.8 | 3.0 | 8.8 | Foreign currency translation adjustments | (16.3) | (15.6) | (31.9) | ||||||||||||||||||||||
Balance at December 31, 2019 | $ | 2,892.2 | $ | 1,155.3 | $ | 4,047.5 | |||||||||||||||||||||||
Balance at December 31, 2021 | Balance at December 31, 2021 | 4,073.8 | 1,164.9 | 5,238.7 | |||||||||||||||||||||||||
Goodwill acquired | Goodwill acquired | 197.8 | — | 197.8 | |||||||||||||||||||||||||
Purchase price allocation adjustments and other | Purchase price allocation adjustments and other | 1.8 | — | 1.8 | |||||||||||||||||||||||||
Foreign currency translation adjustments | Foreign currency translation adjustments | (37.3) | (28.4) | (65.7) | |||||||||||||||||||||||||
Balance at December 31, 2022 | Balance at December 31, 2022 | $ | 4,236.1 | $ | 1,136.5 | $ | 5,372.6 |
2019 | 2018 | 2022 | 2021 | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||
Definite-lived intangible assets (subject to amortization): | Definite-lived intangible assets (subject to amortization): | ||||||||||||||||||
Patents | $ | 47,872 | $ | 51,348 | Patents | $ | 46,418 | $ | 48,071 | ||||||||||
Purchased technology | 517,464 | 405,204 | Purchased technology | 722,277 | 677,896 | ||||||||||||||
Customer lists | 2,282,184 | 1,966,709 | Customer lists | 3,023,762 | 2,930,120 | ||||||||||||||
3,792,457 | 3,656,087 | ||||||||||||||||||
2,847,520 | 2,423,261 | ||||||||||||||||||
Accumulated amortization: | Accumulated amortization: | ||||||||||||||||||
Patents | (36,697 | ) | (37,768 | ) | Patents | (37,215) | (37,713) | ||||||||||||
Purchased technology | (164,231 | ) | (127,363 | ) | Purchased technology | (269,155) | (235,989) | ||||||||||||
Customer lists | (625,591 | ) | (538,504 | ) | Customer lists | (1,033,658) | (888,092) | ||||||||||||
(1,340,028) | (1,161,794) | ||||||||||||||||||
(826,519 ) | (703,635 ) | ||||||||||||||||||
Net intangible assets subject to amortization | 2,021,001 | 1,719,626 | Net intangible assets subject to amortization | 2,452,429 | 2,494,293 | ||||||||||||||
Indefinite-lived intangible assets (not subject to amortization): | Indefinite-lived intangible assets (not subject to amortization): | ||||||||||||||||||
Trademarks and trade names | 741,871 | 684,145 | Trademarks and trade names | 889,656 | 874,336 | ||||||||||||||
$ | 2,762,872 | $ | 2,403,771 | ||||||||||||||||
$ | 3,342,085 | $ | 3,368,629 |
December 31, | December 31, | ||||||||||||||||||
2019 | 2018 | 2022 | 2021 | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||
INVENTORIES, NET | INVENTORIES, NET | ||||||||||||||||||
Finished goods and parts | $ | 99,773 | $ | 107,289 | Finished goods and parts | $ | 130,989 | $ | 89,985 | ||||||||||
Work in process | 118,240 | 117,899 | Work in process | 138,043 | 122,356 | ||||||||||||||
Raw materials and purchased parts | 406,554 | 399,556 | Raw materials and purchased parts | 775,252 | 556,834 | ||||||||||||||
$ | 1,044,284 | $ | 769,175 | ||||||||||||||||
$ | 624,567 | $ | 624,744 | ||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT, NET | PROPERTY, PLANT AND EQUIPMENT, NET | ||||||||||||||||||
Land | $ | 33,516 | $ | 41,751 | Land | $ | 55,915 | $ | 41,709 | ||||||||||
Buildings | 295,891 | 315,250 | Buildings | 365,679 | 343,996 | ||||||||||||||
Machinery and equipment | 1,074,643 | 1,022,362 | Machinery and equipment | 1,199,600 | 1,149,316 | ||||||||||||||
1,621,194 | 1,535,021 | ||||||||||||||||||
1,404,050 | 1,379,363 | ||||||||||||||||||
Less: Accumulated depreciation | (855,142 | ) | (825,233 | ) | Less: Accumulated depreciation | (985,553) | (917,883) | ||||||||||||
$ | 635,641 | $ | 617,138 | ||||||||||||||||
ACCRUED LIABILITIES AND OTHER | ACCRUED LIABILITIES AND OTHER | ||||||||||||||||||
Employee compensation and benefits | Employee compensation and benefits | $ | 213,478 | $ | 205,994 | ||||||||||||||
Product warranty obligation | Product warranty obligation | 26,487 | 27,478 | ||||||||||||||||
Realignment | Realignment | 34,394 | 30,476 | ||||||||||||||||
Short term lease liability | Short term lease liability | 46,366 | 47,353 | ||||||||||||||||
$ | 548,908 | $ | 554,130 | ||||||||||||||||
Other | Other | 114,419 | 132,036 | ||||||||||||||||
$ | 435,144 | $ | 443,337 |
December 31, | ||||||||
2019 | 2018 | |||||||
(In thousands) | ||||||||
ACCRUED LIABILITIES AND OTHER | ||||||||
Employee compensation and benefits | $ | 137,951 | $ | 150,006 | ||||
Product warranty obligation | 27,611 | 23,482 | ||||||
Restructuring | 23,825 | 24,149 | ||||||
Short term lease liability | 43,025 | — | ||||||
Liabilities held for sale | 23,405 | — | ||||||
Contingent purchase price | — | 3,000 | ||||||
Other | 108,263 | 113,794 | ||||||
$ | 364,080 | $ | 314,431 | |||||
2019 | 2018 | 2017 | ||||||||||
(In thousands) | ||||||||||||
ALLOWANCES FOR POSSIBLE LOSSES ON ACCOUNTS RECEIVABLE | ||||||||||||
Balance at the beginning of the year | $ | 9,270 | $ | 10,401 | $ | 10,257 | ||||||
Additions charged to expense | 2,835 | 1,667 | 2,800 | |||||||||
Write-offs | (819 | ) | (2,335 | ) | (3,208 | ) | ||||||
Foreign currency translation adjustments and other | (43 | ) | (463 | ) | 552 | |||||||
Balance at the end of the year | $ | 11,243 | $ | 9,270 | $ | 10,401 | ||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Income before income taxes: | Income before income taxes: | ||||||||||||||||||||||||||||
Domestic | $ | 766,436 | $ | 555,077 | $ | 447,853 | Domestic | $ | 893,478 | $ | 958,206 | $ | 810,844 | ||||||||||||||||
Foreign | 303,312 | 432,668 | 348,876 | Foreign | 535,214 | 264,964 | 271,465 | ||||||||||||||||||||||
Total | $ | 1,069,748 | $ | 987,745 | $ | 796,729 | Total | $ | 1,428,692 | $ | 1,223,170 | $ | 1,082,309 | ||||||||||||||||
Provision for income taxes: | Provision for income taxes: | ||||||||||||||||||||||||||||
Current: | Current: | ||||||||||||||||||||||||||||
Federal | $ | 88,526 | $ | 204,712 | $ | 127,874 | Federal | $ | 183,619 | $ | 99,706 | $ | 126,427 | ||||||||||||||||
Foreign | 81,452 | 51,686 | 71,846 | Foreign | 119,148 | 146,890 | 61,672 | ||||||||||||||||||||||
State | 19,093 | 27,096 | 6,744 | State | 34,201 | 16,282 | 19,932 | ||||||||||||||||||||||
Total current | 189,071 | 283,494 | 206,464 | Total current | 336,968 | 262,878 | 208,031 | ||||||||||||||||||||||
Deferred: | Deferred: | ||||||||||||||||||||||||||||
Federal | 18,005 | (62,095 | ) | (97,465 | ) | Federal | (37,810) | 23,538 | (1,254) | ||||||||||||||||||||
Foreign | (29 | ) | (3,872 | ) | 6,204 | Foreign | (20,818) | (56,572) | (4,072) | ||||||||||||||||||||
State | 1,404 | (7,715 | ) | 56 | State | (9,190) | 3,273 | 7,165 | |||||||||||||||||||||
Total deferred | 19,380 | (73,682 | ) | (91,205 | ) | Total deferred | (67,818) | (29,761) | 1,839 | ||||||||||||||||||||
Total provision | $ | 208,451 | $ | 209,812 | $ | 115,259 | Total provision | $ | 269,150 | $ | 233,117 | $ | 209,870 | ||||||||||||||||
2019 | 2018 | 2022 | 2021 | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||
Noncurrent deferred tax (asset) liability: | |||||||||||||||||||
Non-current deferred tax (asset) liability: | Non-current deferred tax (asset) liability: | ||||||||||||||||||
Differences in basis of property and accelerated depreciation (1) | $ | 45,747 | $ | 46,103 | Differences in basis of property and accelerated depreciation (1) | $ | 43,594 | $ | 44,199 | ||||||||||
Reserves not currently deductible | (44,239 | ) | (41,159 | ) | Reserves not currently deductible | (131,958) | (118,578) | ||||||||||||
Pensions | 39,820 | 29,624 | Pensions | 66,558 | 63,329 | ||||||||||||||
Differences in basis of intangible assets and accelerated amortization | 537,534 | 554,597 | Differences in basis of intangible assets and accelerated amortization | 726,525 | 768,542 | ||||||||||||||
Net operating loss carryforwards | (41,782 | ) | (52,142 | ) | Net operating loss carryforwards | (54,318) | (44,164) | ||||||||||||
Share-based compensation | (12,060 | ) | (15,399 | ) | Share-based compensation | (13,279) | (12,728) | ||||||||||||
Foreign Tax Credit Carryforwards | (333 | ) | — | Foreign Tax Credit Carryforwards | (2,317) | (2,291) | |||||||||||||
Unremitted earnings | 12,977 | 12,598 | Unremitted earnings | 12,429 | 11,361 | ||||||||||||||
Other | (20,889 | ) | (24,492 | ) | Other | (13,448) | (28,343) | ||||||||||||
633,786 | 681,327 | ||||||||||||||||||
516,775 | 509,730 | ||||||||||||||||||
Less: Valuation allowance | 7,146 | 8,634 | Less: Valuation allowance | 9,613 | 11,349 | ||||||||||||||
643,399 | 692,676 | ||||||||||||||||||
523,921 | 518,364 | ||||||||||||||||||
Portion included in noncurrent assets | 12,219 | 9,972 | |||||||||||||||||
Gross noncurrent deferred tax liability | $ | 536,140 | $ | 528,336 | |||||||||||||||
Portion included in non-current assets | Portion included in non-current assets | 50,868 | 26,999 | ||||||||||||||||
Gross non-current deferred tax liability | Gross non-current deferred tax liability | $ | 694,267 | $ | 719,675 |
2019 | 2018 | 2017 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||
U.S. Federal statutory rate | 21.0 | % | 21.0 | % | 35.0 | % | U.S. Federal statutory rate | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||||||||||
State income taxes, net of federal income tax benefit | 1.8 | 1.2 | 0.4 | State income taxes, net of federal income tax benefit | 1.6 | 1.5 | 2.3 | ||||||||||||||||||||||
Foreign operations, net | (0.9 | ) | (0.1 | ) | (6.8 | ) | Foreign operations, net | (1.0) | (0.4) | (1.4) | |||||||||||||||||||
U.S. Benefits for Manufacturing, Export and credits | (2.0 | ) | (1.8 | ) | (1.8 | ) | U.S. Benefits for Manufacturing, Export and credits | (2.9) | (2.6) | (1.9) | |||||||||||||||||||
Uncertain Tax Items | (1.0 | ) | 1.7 | 0.4 | Uncertain Tax Items | 1.0 | (0.1) | (1.3) | |||||||||||||||||||||
Stock compensation | (1.5 | ) | (0.5 | ) | (1.5 | ) | Stock compensation | (0.9) | (1.7) | (1.0) | |||||||||||||||||||
Net deferred tax revaluation | — | (0.1 | ) | (23.3 | ) | ||||||||||||||||||||||||
US Tax on Foreign Earnings | 2.3 | (0.1 | ) | 11.9 | |||||||||||||||||||||||||
U.S. Tax on Foreign Earnings | U.S. Tax on Foreign Earnings | 0.5 | 3.9 | 2.2 | |||||||||||||||||||||||||
U.S. General Basket FTC | U.S. General Basket FTC | (0.1) | (2.9) | (0.1) | |||||||||||||||||||||||||
Other | (0.2 | ) | (0.1 | ) | 0.2 | Other | (0.4) | 0.3 | (0.5) | ||||||||||||||||||||
Consolidated effective tax rate | 19.5 | % | 21.2 | % | 14.5 | % | Consolidated effective tax rate | 18.8 | % | 19.1 | % | 19.4 | % | ||||||||||||||||
2019 | 2018 | 2017 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||
(In millions) | (In millions) | ||||||||||||||||||||||||||||
Balance at the beginning of the year | $ | 119.3 | $ | 60.3 | $ | 57.9 | Balance at the beginning of the year | $ | 147.0 | $ | 100.7 | $ | 109.1 | ||||||||||||||||
Additions for tax positions related to the current year | 17.5 | 21.8 | 10.0 | Additions for tax positions related to the current year | 29.3 | 41.4 | 15.6 | ||||||||||||||||||||||
Additions for tax positions of prior years | 2.8 | 53.5 | 3.1 | Additions for tax positions of prior years | 2.1 | 34.9 | 6.2 | ||||||||||||||||||||||
Reductions for tax positions of prior years | (1.3 | ) | (3.9 | ) | (2.8 | ) | Reductions for tax positions of prior years | (1.0) | (1.5) | (0.3) | |||||||||||||||||||
Reductions related to settlements with taxing authorities | (0.9 | ) | — | — | Reductions related to settlements with taxing authorities | (0.2) | (0.1) | (0.5) | |||||||||||||||||||||
Reductions due to statute expirations | (28.3 | ) | (12.4 | ) | (7.9 | ) | Reductions due to statute expirations | (2.5) | (28.4) | (29.4) | |||||||||||||||||||
Balance at the end of the year | $ | 109.1 | $ | 119.3 | $ | 60.3 | Balance at the end of the year | $ | 174.7 | $ | 147.0 | $ | 100.7 | ||||||||||||||||
2022 | 2021 | ||||||||||
(In thousands) | |||||||||||
U.S. dollar 3.73% senior notes due September 2024 | $ | 300,000 | $ | 300,000 | |||||||
U.S. dollar 3.91% senior notes due June 2025 | 50,000 | 50,000 | |||||||||
U.S. dollar 3.96% senior notes due August 2025 | 100,000 | 100,000 | |||||||||
U.S. dollar 4.18% senior notes due December 2025 | 275,000 | 275,000 | |||||||||
U.S. dollar 3.83% senior notes due September 2026 | 100,000 | 100,000 | |||||||||
U.S. dollar 4.32% senior notes due December 2027 | 250,000 | 250,000 | |||||||||
U.S. dollar 4.37% senior notes due December 2028 | 50,000 | 50,000 | |||||||||
U.S. dollar 3.98% senior notes due September 2029 | 100,000 | 100,000 | |||||||||
U.S. dollar 4.45% senior notes due August 2035 | 50,000 | 50,000 | |||||||||
British pound 2.59% senior note due November 2028 | 181,157 | 203,046 | |||||||||
British pound 2.70% senior note due November 2031 | 90,579 | 101,510 | |||||||||
Euro 1.34% senior notes due October 2026 | 320,808 | 341,284 | |||||||||
Euro 1.71% senior notes due December 2027 | 80,205 | 85,323 | |||||||||
Euro 1.53% senior notes due October 2028 | 213,894 | 227,541 | |||||||||
Revolving credit facility borrowings | 219,000 | 314,480 | |||||||||
Other, principally foreign | 11,759 | 1,976 | |||||||||
Less: Debt issuance costs | (7,395) | (5,919) | |||||||||
Total debt, net | 2,385,007 | 2,544,241 | |||||||||
Less: Current portion, net | (226,079) | (315,093) | |||||||||
Total long-term debt, net | $ | 2,158,928 | $ | 2,229,148 |
2019 | 2018 | |||||||
(In thousands) | ||||||||
U.S. dollar 6.30% senior notes due December 2019 | $ | — | $ | 100,000 | ||||
U.S. dollar 3.73% senior notes due September 2024 | 300,000 | 300,000 | ||||||
U.S. dollar 3.91% senior notes due June 2025 | 50,000 | 50,000 | ||||||
U.S. dollar 3.96% senior notes due August 2025 | 100,000 | 100,000 | ||||||
U.S. dollar 4.18% senior notes due December 2025 | 275,000 | 275,000 | ||||||
U.S. dollar 3.83% senior notes due September 2026 | 100,000 | 100,000 | ||||||
U.S. dollar 4.32% senior notes due December 2027 | 150,000 | 150,000 | ||||||
U.S. dollar 4.32% senior notes due December 2027 | 100,000 | — | ||||||
U.S. dollar 4.37% senior notes due December 2028 | 50,000 | 50,000 | ||||||
U.S. dollar 3.98% senior notes due September 2029 | 100,000 | 100,000 | ||||||
U.S. dollar 4.45% senior notes due August 2035 | 50,000 | 50,000 | ||||||
British pound 4.68% senior note due September 2020 | 106,140 | 102,082 | ||||||
British pound 2.59% senior note due November 2028 | 199,011 | 191,405 | ||||||
British pound 2.70% senior note due November 2031 | 99,508 | 95,700 | ||||||
Euro 1.34% senior notes due October 2026 | 336,797 | 343,666 | ||||||
Euro 1.71% senior notes due December 2027 | 84,202 | 85,916 | ||||||
Euro 1.53% senior notes due October 2028 | 224,553 | 229,108 | ||||||
Swiss franc 2.44% senior note due December 2021 | 56,830 | 55,932 | ||||||
Revolving credit facility borrowings | 384,816 | 260,000 | ||||||
Other, principally foreign | 9,234 | 2,278 | ||||||
Less: Debt issuance costs | (7,350 | ) | (8,374 | ) | ||||
Total debt, net | 2,768,741 | 2,632,713 | ||||||
Less: Current portion, net | (497,449 | ) | (358,876 | ) | ||||
Total long-term debt, net | $ | 2,271,292 | $ | 2,273,837 | ||||
2019 | 2018 | 2017 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||||
Stock option expense | $ | 12,810 | $ | 11,390 | $ | 9,895 | Stock option expense | $ | 13,021 | $ | 12,733 | $ | 13,695 | ||||||||||||||||
Restricted stock expense | 16,169 | 14,400 | 15,196 | Restricted stock expense | 20,115 | 21,393 | 17,997 | ||||||||||||||||||||||
PRSU expense | 11,415 | 1,525 | — | PRSU expense | 14,239 | 11,977 | 9,873 | ||||||||||||||||||||||
Total pre-tax expense | $ | 40,394 | $ | 27,315 | $ | 25,091 | Total pre-tax expense | $ | 47,375 | $ | 46,103 | $ | 41,565 | ||||||||||||||||
2019 | 2018 | 2017 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||
Expected volatility | 19.1 | % | 17.3 | % | 18.0 | % | Expected volatility | 24.5 | % | 24.2 | % | 22.2 | % | ||||||||||||||||
Expected term (years) | 5.0 | 5.0 | 5.0 | Expected term (years) | 5.0 | 5.0 | 5.0 | ||||||||||||||||||||||
Risk-free interest rate | 2.25 | % | 2.81 | % | 1.94 | % | Risk-free interest rate | 2.33 | % | 0.85 | % | 0.52 | % | ||||||||||||||||
Expected dividend yield | 0.66 | % | 0.76 | % | 0.60 | % | Expected dividend yield | 0.65 | % | 0.66 | % | 1.14 | % | ||||||||||||||||
Black-Scholes-Merton fair value per stock option granted | $ | 16.85 | $ | 14.12 | $ | 11.05 | Black-Scholes-Merton fair value per stock option granted | $ | 32.54 | $ | 25.63 | $ | 11.01 |
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||||||
(In thousands) | (Years) | (In millions) | ||||||||||||||
Outstanding at the beginning of the year | 5,629 | $ | 53.46 | |||||||||||||
Granted | 826 | 85.43 | ||||||||||||||
Exercised | (1,939 | ) | 45.48 | |||||||||||||
Forfeited | (210 | ) | 67.96 | |||||||||||||
Expired | (3 | ) | 35.33 | |||||||||||||
Outstanding at the end of the year | 4,303 | $ | 62.50 | 5.2 | $ | 160.2 | ||||||||||
Exercisable at the end of the year | 2,237 | $ | 54.27 | 3.5 | $ | 101.7 | ||||||||||
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||||||||||||
(In thousands) | (Years) | (In millions) | |||||||||||||||||||||
Outstanding at the beginning of the year | 3,352 | $ | 76.08 | ||||||||||||||||||||
Granted | 608 | 134.69 | |||||||||||||||||||||
Exercised | (788) | 63.75 | |||||||||||||||||||||
Forfeited | (107) | 108.79 | |||||||||||||||||||||
Expired | (5) | 101.38 | |||||||||||||||||||||
Outstanding at the end of the year | 3,060 | $ | 79.46 | 6.5 | $ | 153.0 | |||||||||||||||||
Exercisable at the end of the year | 1,944 | $ | 75.00 | 5.4 | $ | 125.8 |
Shares | Weighted Average Grant Date Fair Value | |||||||
(In thousands) | ||||||||
Nonvested stock options outstanding at the beginning of the year | 2,494 | $ | 11.69 | |||||
Granted | 826 | 16.85 | ||||||
Vested | (1,044 | ) | 11.28 | |||||
Forfeited | (210 | ) | 9.76 | |||||
Nonvested stock options outstanding at the end of the year | 2,066 | $ | 14.17 | |||||
Shares | Weighted Average Grant Date Fair Value | ||||||||||
(In thousands) | |||||||||||
Non-vested stock options outstanding at the beginning of the year | 1,292 | $ | 18.41 | ||||||||
Granted | 608 | 32.54 | |||||||||
Vested | (677) | 16.78 | |||||||||
Forfeited | (107) | 23.86 | |||||||||
Non-vested stock options outstanding at the end of the year | 1,116 | $ | 26.57 |
Shares | Weighted Average Grant Date Fair Value | |||||||
(In thousands) | ||||||||
Nonvested restricted stock outstanding at the beginning of the year | 891 | $ | 58.98 | |||||
Granted | 212 | 85.81 | ||||||
Vested | (456 | ) | 53.82 | |||||
Forfeited | (86 | ) | 64.60 | |||||
Nonvested restricted stock outstanding at the end of the year | 561 | $ | 72.46 | |||||
Shares | Weighted Average Grant Date Fair Value | ||||||||||
(In thousands) | |||||||||||
Non-vested restricted stock outstanding at the beginning of the year | 413 | $ | 96.07 | ||||||||
Granted | 184 | 134.52 | |||||||||
Vested | (195) | 90.78 | |||||||||
Forfeited | (46) | 109.08 | |||||||||
Non-vested restricted stock outstanding at the end of the year | 356 | $ | 117.18 |
Shares | Weighted Average Grant Date Fair Value | ||||||||||
(In thousands) | |||||||||||
Non-vested performance restricted stock outstanding at the beginning of the year | 289 | $ | 85.29 | ||||||||
Granted | 87 | 134.69 | |||||||||
Performance assumption change 1 | 66 | 81.76 | |||||||||
Vested | (161) | 81.76 | |||||||||
Forfeited | (6) | 98.07 | |||||||||
Non-vested performance restricted stock outstanding at the end of the year | 275 | $ | 101.98 |
2019 | 2018 | |||||||
(In thousands) | ||||||||
Change in projected benefit obligation: | ||||||||
Net projected benefit obligation at the beginning of the year | $ | 471,506 | $ | 520,376 | ||||
Service cost | 3,248 | 3,777 | ||||||
Interest cost | 20,287 | 19,183 | ||||||
Actuarial losses (gains) | 46,269 | (43,163 | ) | |||||
Gross benefits paid | (30,796 | ) | (30,127 | ) | ||||
Acquisition | — | 1,460 | ||||||
Net projected benefit obligation at the end of the year | $ | 510,514 | $ | 471,506 | ||||
Change in plan assets: | ||||||||
Fair value of plan assets at the beginning of the year | $ | 552,187 | $ | 619,993 | ||||
Actual return on plan assets | 99,573 | (39,022 | ) | |||||
Employer contributions | 668 | 541 | ||||||
Gross benefits paid | (30,796 | ) | (30,127 | ) | ||||
Acquisition | — | 802 | ||||||
Fair value of plan assets at the end of the year | $ | 621,632 | $ | 552,187 | ||||
2022 | 2021 | ||||||||||
(In thousands) | |||||||||||
Change in projected benefit obligation: | |||||||||||
Net projected benefit obligation at the beginning of the year | $ | 504,773 | $ | 532,357 | |||||||
Service cost | 2,067 | 2,767 | |||||||||
Interest cost | 14,889 | 14,074 | |||||||||
Actuarial (gains) losses | (106,159) | (12,593) | |||||||||
Gross benefits paid | (32,090) | (31,832) | |||||||||
Acquisition | (337) | — | |||||||||
Net projected benefit obligation at the end of the year | $ | 383,143 | $ | 504,773 | |||||||
Change in plan assets: | |||||||||||
Fair value of plan assets at the beginning of the year | $ | 701,627 | $ | 662,298 | |||||||
Actual return on plan assets | (101,381) | 70,540 | |||||||||
Employer contributions | 1,230 | 621 | |||||||||
Gross benefits paid | (32,090) | (31,832) | |||||||||
Acquisition | (337) | — | |||||||||
Fair value of plan assets at the end of the year | $ | 569,049 | $ | 701,627 |
2019 | 2018 | ||||||||||||||||||
(In thousands) | 2022 | 2021 | |||||||||||||||||
(In thousands) | |||||||||||||||||||
Change in projected benefit obligation: | Change in projected benefit obligation: | ||||||||||||||||||
Net projected benefit obligation at the beginning of the year | $ | 268,763 | $ | 284,178 | Net projected benefit obligation at the beginning of the year | $ | 332,422 | $ | 351,584 | ||||||||||
Service cost | 3,307 | 3,102 | Service cost | 2,852 | 4,218 | ||||||||||||||
Interest cost | 6,692 | 6,495 | Interest cost | 5,235 | 4,458 | ||||||||||||||
Foreign currency translation adjustments | 9,042 | (15,568 | ) | Foreign currency translation adjustments | (31,367) | (6,580) | |||||||||||||
Employee contributions | 110 | 108 | Employee contributions | — | 76 | ||||||||||||||
Actuarial losses (gains) | 35,021 | (4,674 | ) | ||||||||||||||||
Actuarial (gains) losses | Actuarial (gains) losses | (100,201) | (10,199) | ||||||||||||||||
Expenses paid from assets | (747 | ) | (572 | ) | Expenses paid from assets | (686) | (1,121) | ||||||||||||
Gross benefits paid | (8,421 | ) | (11,114 | ) | Gross benefits paid | (9,409) | (10,426) | ||||||||||||
Settlements | (1,984 | ) | — | Settlements | (102) | — | |||||||||||||
Plan amendments | — | 6,808 | |||||||||||||||||
Curtailments | Curtailments | — | 412 | ||||||||||||||||
Net projected benefit obligation at the end of the year | $ | 311,783 | $ | 268,763 | Net projected benefit obligation at the end of the year | $ | 198,744 | $ | 332,422 | ||||||||||
Change in plan assets: | Change in plan assets: | ||||||||||||||||||
Fair value of plan assets at the beginning of the year | $ | 196,801 | $ | 226,968 | Fair value of plan assets at the beginning of the year | $ | 266,288 | $ | 250,735 | ||||||||||
Actual return on plan assets | 25,391 | (11,171 | ) | Actual return on plan assets | (77,643) | 20,184 | |||||||||||||
Employer contributions | 4,941 | 4,521 | Employer contributions | 7,729 | 9,656 | ||||||||||||||
Employee contributions | 110 | 108 | Employee contributions | — | 76 | ||||||||||||||
Foreign currency translation adjustments | 8,256 | (11,939 | ) | Foreign currency translation adjustments | (26,585) | (2,816) | |||||||||||||
Expenses paid from assets | (747 | ) | (572 | ) | Expenses paid from assets | (686) | (1,121) | ||||||||||||
Settlements | (1,984 | ) | — | Settlements | (102) | — | |||||||||||||
Gross benefits paid | (8,421 | ) | (11,114 | ) | Gross benefits paid | (9,409) | (10,426) | ||||||||||||
Fair value of plan assets at the end of the year | $ | 224,347 | $ | 196,801 | Fair value of plan assets at the end of the year | $ | 159,592 | $ | 266,288 | ||||||||||
2022 | 2021 | ||||||||||
(In thousands) | |||||||||||
Funded plans | $ | 374,979 | $ | 492,957 | |||||||
Unfunded plans | 2,869 | 3,913 | |||||||||
Total | $ | 377,848 | $ | 496,870 |
2019 | 2018 | |||||||
(In thousands) | ||||||||
Funded plans | $ | 493,756 | $ | 456,319 | ||||
Unfunded plans | 5,213 | 5,453 | ||||||
Total | $ | 498,969 | $ | 461,772 | ||||
2022 | 2021 | ||||||||||
(In thousands) | |||||||||||
Funded plans | $ | 167,495 | $ | 284,013 | |||||||
Unfunded plans | 30,924 | 47,761 | |||||||||
Total | $ | 198,419 | $ | 331,774 |
2019 | 2018 | |||||||
(In thousands) | ||||||||
Funded plans | $ | 264,675 | $ | 220,842 | ||||
Unfunded plans | 45,315 | 39,459 | ||||||
Total | $ | 309,990 | $ | 260,301 | ||||
2022 | 2021 | ||||||||||
U.S. Defined Benefit Pension Plans: | |||||||||||
Discount rate | 5.65 | % | 3.02 | % | |||||||
Rate of compensation increase (where applicable) | 3.75 | % | 3.75 | % | |||||||
Foreign Defined Benefit Pension Plans: | |||||||||||
Discount rate | 4.73 | % | 1.78 | % | |||||||
Rate of compensation increase (where applicable) | 2.50 | % | 2.50 | % |
2019 | 2018 | |||||||
U.S. Defined Benefit Pension Plans: | ||||||||
Discount rate | 3.45 | % | 4.40 | % | ||||
Rate of compensation increase (where applicable) | 3.75 | % | 3.75 | % | ||||
Foreign Defined Benefit Pension Plans: | ||||||||
Discount rate | 1.83 | % | 2.59 | % | ||||
Rate of compensation increase (where applicable) | 2.50 | % | 2.50 | % |
2022 | 2021 | ||||||||||||||||||||||||||||||||||
Asset Class | Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Corporate debt instruments | $ | 6,192 | $ | — | $ | 6,192 | $ | 4,053 | $ | — | $ | 4,053 | |||||||||||||||||||||||
Corporate debt instruments – Preferred | 13,425 | — | 13,425 | 11,265 | — | 11,265 | |||||||||||||||||||||||||||||
Corporate stocks – Common | 53,629 | 53,629 | — | 67,975 | 67,975 | — | |||||||||||||||||||||||||||||
Municipal bonds | 711 | — | 711 | 676 | — | 676 | |||||||||||||||||||||||||||||
Registered investment companies | 155,541 | 155,541 | — | 150,535 | 150,535 | — | |||||||||||||||||||||||||||||
U.S. Government securities | 1,253 | — | 1,253 | 663 | — | 663 | |||||||||||||||||||||||||||||
Total investments | 230,751 | 209,170 | 21,581 | 235,167 | 218,510 | 16,657 | |||||||||||||||||||||||||||||
Investments measured at net asset value | 338,298 | — | — | 466,460 | — | — | |||||||||||||||||||||||||||||
Total investments | $ | 569,049 | $ | 209,170 | $ | 21,581 | $ | 701,627 | $ | 218,510 | $ | 16,657 |
2019 | 2018 | |||||||||||||||||||||||
Asset Class | Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Corporate debt instruments | $ | 3,152 | $ | — | $ | 3,152 | $ | 2,440 | $ | — | $ | 2,440 | ||||||||||||
Corporate debt instruments �� Preferred | 10,781 | — | 10,781 | 10,967 | — | 10,967 | ||||||||||||||||||
Corporate stocks – Common | 127,221 | 127,221 | — | 115,013 | 115,013 | — | ||||||||||||||||||
Municipal bonds | 574 | — | 574 | 488 | — | 488 | ||||||||||||||||||
Registered investment companies | 288,076 | 288,076 | — | 279,006 | 279,006 | — | ||||||||||||||||||
U.S. Government securities | 240 | — | 240 | 362 | — | 362 | ||||||||||||||||||
Total investments | 430,044 | 415,297 | 14,747 | 408,276 | 394,019 | 14,257 | ||||||||||||||||||
Investments measured at net asset value | 191,588 | — | — | 143,911 | — | — | ||||||||||||||||||
Total investments | $ | 621,632 | $ | 415,297 | $ | 14,747 | $ | 552,187 | $ | 394,019 | $ | 14,257 | ||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Asset Class | Total | Level 3 | Total | Level 3 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Life insurance | $ | 13,043 | $ | 13,043 | $ | 18,806 | $ | 18,806 | |||||||||||||||
Total investments | 13,043 | 13,043 | 18,806 | 18,806 | |||||||||||||||||||
Investments measured at net asset value | 146,549 | — | 247,482 | — | |||||||||||||||||||
Total investments | $ | 159,592 | $ | 13,043 | $ | 266,288 | $ | 18,806 |
2019 | 2018 | |||||||||||||||
Asset Class | Total | Level 3 | Total | Level 3 | ||||||||||||
(In thousands) | ||||||||||||||||
Life insurance | $ | 19,298 | $ | 19,298 | $ | 18,685 | $ | 18,685 | ||||||||
Total investments | 19,298 | 19,298 | 18,685 | 18,685 | ||||||||||||
Investments measured at net asset value | 205,049 | — | 178,116 | — | ||||||||||||
Total investments | $ | 224,347 | $ | 19,298 | $ | 196,801 | $ | 18,685 | ||||||||
Life Insurance | |||||
(In thousands) | |||||
Balance, December 31, 2020 | $ | 20,908 | |||
Actual return on assets: | |||||
Unrealized losses relating to instruments still held at the end of the year | $ | (2,102) | |||
Realized gains (losses) relating to assets sold during the year | $ | — | |||
Purchases, sales, issuances and settlements, net | $ | — | |||
Balance, December 31, 2021 | $ | 18,806 | |||
Actual return on assets: | |||||
Unrealized gains (losses) relating to instruments still held at the end of the year | $ | (5,763) | |||
Realized gains (losses) relating to assets sold during the year | $ | — | |||
Purchases, sales, issuances and settlements, net | $ | — | |||
Balance, December 31, 2022 | $ | 13,043 |
Life Insurance | ||||
(In thousands) | ||||
Balance, December 31, 2017 | $ | 21,294 | ||
Actual return on assets: | ||||
Unrealized losses relating to instruments still held at the end of the year | (2,609 | ) | ||
Realized gains (losses) relating to assets sold during the year | — | |||
Purchases, sales, issuances and settlements, net | — | |||
Balance, December 31, 2018 | 18,685 | |||
Actual return on assets: | ||||
Unrealized gains (losses) relating to instruments still held at the end of the year | 613 | |||
Realized gains (losses) relating to assets sold during the year | — | |||
Purchases, sales, issuances and settlements, net | — | |||
Balance, December 31, 2019 | $ | 19,298 | ||
Projected Benefit Obligation Exceeds Fair Value of Assets | Accumulated Benefit Obligation Exceeds Fair Value of Assets | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Benefit obligation | $ | 4,043 | $ | 6,234 | $ | 4,043 | $ | 6,234 | |||||||||||||||
Fair value of plan assets | 707 | 1,239 | 707 | 1,239 |
Projected Benefit Obligation Exceeds Fair Value of Assets | Accumulated Benefit Obligation Exceeds Fair Value of Assets | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In thousands) | ||||||||||||||||
Benefit obligation | $ | 7,119 | $ | 6,928 | $ | 7,119 | $ | 6,928 | ||||||||
Fair value of plan assets | 958 | 809 | 958 | 809 |
Projected Benefit Obligation Exceeds Fair Value of Assets | Accumulated Benefit Obligation Exceeds Fair Value of Assets | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Benefit obligation | $ | 162,105 | $ | 272,245 | $ | 161,780 | $ | 271,596 | |||||||||||||||
Fair value of plan assets | 120,056 | 200,862 | 120,056 | 200,862 |
Projected Benefit Obligation Exceeds Fair Value of Assets | Accumulated Benefit Obligation Exceeds Fair Value of Assets | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In thousands) | ||||||||||||||||
Benefit obligation | $ | 311,783 | $ | 268,763 | $ | 309,990 | $ | 260,301 | ||||||||
Fair value of plan assets | 224,347 | 196,801 | 224,347 | 196,801 |
2022 | 2021 | ||||||||||
(In thousands) | |||||||||||
Funded status asset (liability): | |||||||||||
Fair value of plan assets | $ | 728,641 | $ | 967,915 | |||||||
Projected benefit obligation | (581,887) | (837,195) | |||||||||
Funded status at the end of the year | $ | 146,754 | $ | 130,720 | |||||||
Amounts recognized in the consolidated balance sheet consisted of: | |||||||||||
Non-current asset for pension benefits (other assets) | $ | 192,140 | $ | 207,099 | |||||||
Current liabilities for pension benefits | (2,700) | (2,133) | |||||||||
Non-current liability for pension benefits | (42,686) | (74,246) | |||||||||
Net amount recognized at the end of the year | $ | 146,754 | $ | 130,720 |
2019 | 2018 | |||||||
(In thousands) | ||||||||
Funded status asset (liability): | ||||||||
Fair value of plan assets | $ | 845,979 | $ | 748,988 | ||||
Projected benefit obligation | (822,297 | ) | (740,269 | ) | ||||
Funded status at the end of the year | $ | 23,682 | $ | 8,719 | ||||
Amounts recognized in the consolidated balance sheet consisted of: | ||||||||
Noncurrent asset for pension benefits (other assets) | $ | 117,278 | $ | 86,799 | ||||
Current liabilities for pension benefits | (1,954 | ) | (1,905 | ) | ||||
Noncurrent liability for pension benefits | (91,642 | ) | (76,175 | ) | ||||
Net amount recognized at the end of the year | $ | 23,682 | $ | 8,719 | ||||
Net amounts recognized: | 2019 | 2018 | Net amounts recognized: | 2022 | 2021 | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||
Net actuarial loss | $ | 242,696 | $ | 244,511 | Net actuarial loss | $ | 205,193 | $ | 193,220 | ||||||||||
Prior service costs | 4,189 | 4,432 | Prior service costs | 1,625 | 1,855 | ||||||||||||||
Transition asset | 6 | 7 | Transition asset | 3 | 4 | ||||||||||||||
Total recognized | $ | 246,891 | $ | 248,950 | Total recognized | $ | 206,821 | $ | 195,079 | ||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Defined benefit plans: | Defined benefit plans: | ||||||||||||||||||||||||||||
Service cost | $ | 6,556 | $ | 6,879 | $ | 7,138 | Service cost | $ | 4,919 | $ | 6,985 | $ | 7,261 | ||||||||||||||||
Interest cost | 26,979 | 25,678 | 27,424 | Interest cost | 20,124 | 18,532 | 22,611 | ||||||||||||||||||||||
Expected return on plan assets | (52,402 | ) | (59,325 | ) | (53,442 | ) | Expected return on plan assets | (60,104) | (56,752) | (54,629) | |||||||||||||||||||
Curtailment | Curtailment | — | 3,151 | — | |||||||||||||||||||||||||
Settlement | 739 | — | — | Settlement | (58) | — | — | ||||||||||||||||||||||
Amortization of: | Amortization of: | ||||||||||||||||||||||||||||
Net actuarial loss | 15,685 | 12,092 | 14,591 | Net actuarial loss | 8,531 | 16,353 | 15,479 | ||||||||||||||||||||||
Prior service costs | 484 | (49 | ) | (47 | ) | Prior service costs | 100 | 456 | 486 | ||||||||||||||||||||
Transition asset | 1 | 1 | 1 | Transition asset | 1 | 1 | 1 | ||||||||||||||||||||||
Total net periodic benefit income | (1,958 | ) | (14,724 | ) | (4,335 | ) | Total net periodic benefit income | (26,487) | (11,274) | (8,791) | |||||||||||||||||||
Other plans: | Other plans: | ||||||||||||||||||||||||||||
Defined contribution plans | 32,508 | 28,829 | 24,280 | Defined contribution plans | 39,326 | 31,149 | 30,829 | ||||||||||||||||||||||
Foreign plans and other | 9,406 | 6,185 | 5,866 | Foreign plans and other | 8,373 | 8,454 | 7,902 | ||||||||||||||||||||||
Total other plans | 41,914 | 35,014 | 30,146 | Total other plans | 47,699 | 39,603 | 38,731 | ||||||||||||||||||||||
Total net pension expense | $ | 39,956 | $ | 20,290 | $ | 25,811 | Total net pension expense | $ | 21,212 | $ | 28,329 | $ | 29,940 | ||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
U.S. Defined Benefit Pension Plans: | |||||||||||||||||
Discount rate | 3.02 | % | 2.69 | % | 3.45 | % | |||||||||||
Expected return on plan assets | 6.75 | % | 6.75 | % | 7.00 | % | |||||||||||
Rate of compensation increase (where applicable) | 3.75 | % | 3.75 | % | 3.75 | % | |||||||||||
Foreign Defined Benefit Pension Plans: | |||||||||||||||||
Discount rate | 1.78 | % | 1.27 | % | 1.83 | % | |||||||||||
Expected return on plan assets | 5.85 | % | 5.47 | % | 5.97 | % | |||||||||||
Rate of compensation increase (where applicable) | 2.50 | % | 2.50 | % | 2.50 | % |
2019 | 2018 | 2017 | ||||||||||
U.S. Defined Benefit Pension Plans: | ||||||||||||
Discount rate | 4.40 | % | 4.40 | % | 4.25 | % | ||||||
Expected return on plan assets | 7.50 | % | 7.50 | % | 7.50 | % | ||||||
Rate of compensation increase (where applicable) | 3.75 | % | 3.75 | % | 3.75 | % | ||||||
Foreign Defined Benefit Pension Plans: | ||||||||||||
Discount rate | 2.59 | % | 2.59 | % | 2.56 | % | ||||||
Expected return on plan assets | 6.52 | % | 6.52 | % | 6.79 | % | ||||||
Rate of compensation increase (where applicable) | 2.50 | % | 2.50 | % | 2.50 | % |
2022 | 2021 | 2020 | |||||||||||||||
(In thousands) | |||||||||||||||||
Operating lease cost | $ | 59,296 | $ | 61,680 | $ | 44,498 | |||||||||||
Variable lease cost | 11,096 | 7,724 | 4,526 | ||||||||||||||
Total lease cost | $ | 70,392 | $ | 69,404 | $ | 49,024 |
2019 | ||||
(In thousands) | ||||
Operating lease cost | $ | 45,438 | ||
Variable lease cost | 7,813 | |||
Total lease cost | $ | 53,251 | ||
December 31, | |||||||||||||||
December 31, 2019 | 2022 | 2021 | |||||||||||||
(In thousands) | (In thousands) | ||||||||||||||
Right of use assets, net | $ | 179,679 | Right of use assets, net | $ | 170,295 | $ | 169,924 | ||||||||
Lease liabilities included in Accrued liabilities and other | 43,025 | Lease liabilities included in Accrued liabilities and other | 46,366 | 47,353 | |||||||||||
Lease liabilities included in Other long-term liabilities | 142,620 | Lease liabilities included in Other long-term liabilities | 129,227 | 129,101 | |||||||||||
Total lease liabilities | $ | 185,645 | Total lease liabilities | $ | 175,593 | $ | 176,454 | ||||||||
2022 | 2021 | ||||||||||
(In thousands) | |||||||||||
Cash used in operations for operating leases | $ | 54,724 | $ | 55,657 | |||||||
Right-of-use assets obtained in exchange for new operating liabilities | $ | 59,802 | $ | 64,653 | |||||||
Weighted-average remaining lease terms – operating leases (years) | 5.07 | 5.36 | |||||||||
Weighted-average discount rate – operating leases | 3.32 | % | 2.91 | % |
2019 | ||||
(In thousands) | ||||
Cash used in operations for operating leases | $ | 53,266 | ||
Right-of-use assets obtained in exchange for new operating liabilities | $ | 40,793 | ||
Weighted-average remaining lease terms – operating leases (years) | 5.93 | |||
Weighted-average discount rate – operating leases | 3.72 | % |
Lease Liability Maturity Analysis | Operating Leases | ||||
(In thousands) | |||||
2023 | $ | 51,740 | |||
2024 | 41,047 | ||||
2025 | 31,338 | ||||
2026 | 23,770 | ||||
2027 | 15,467 | ||||
Thereafter | 29,523 | ||||
Total lease payments | 192,885 | ||||
Less: imputed interest | 17,292 | ||||
$ | 175,593 |
Lease Liability Maturity Analysis | Operating Leases | |||
(In thousands) | ||||
2020 | $ | 49,432 | ||
2021 | 42,084 | |||
2022 | 34,103 | |||
2023 | 25,879 | |||
2024 | 17,543 | |||
Thereafter | 38,953 | |||
Total lease payments | 207,994 | |||
Less: imputed interest | 22,349 | |||
$ | 185,645 | |||
2019 | 2018 | 2017 | ||||||||||
(In thousands) | ||||||||||||
Operating income and income before income taxes: | ||||||||||||
Segment operating income (1) : | ||||||||||||
Electronic Instruments | $ | 865,307 | $ | 782,144 | $ | 671,646 | ||||||
Electromechanical | 387,931 | 363,765 | 306,779 | |||||||||
Total segment operating income | 1,253,238 | 1,145,909 | 978,425 | |||||||||
Corporate administrative expenses | (75,858 | ) | (70,369 | ) | (74,805 | ) | ||||||
Consolidated operating income | 1,177,380 | 1,075,540 | 903,620 | |||||||||
Interest and other expenses, net | (107,632 | ) | (87,795 | ) | (106,891 | ) | ||||||
Consolidated income before income taxes | $ | 1,069,748 | $ | 987,745 | $ | 796,729 | ||||||
Assets: | ||||||||||||
Electronic Instruments | $ | 6,651,920 | $ | 5,625,303 | ||||||||
Electromechanical | 2,818,155 | 2,685,674 | ||||||||||
Total segment assets | 9,470,075 | 8,310,977 | ||||||||||
Corporate | 374,484 | 351,311 | ||||||||||
Consolidated assets | $ | 9,844,559 | $ | 8,662,288 | ||||||||
Additions to property, plant and equipment (2) : | ||||||||||||
Electronic Instruments | $ | 74,994 | $ | 110,858 | $ | 54,321 | ||||||
Electromechanical | 42,924 | 42,461 | 36,829 | |||||||||
Total segment additions to property, plant and equipment | 117,918 | 153,319 | 91,150 | |||||||||
Corporate | 4,770 | 3,496 | 3,002 | |||||||||
Consolidated additions to property, plant and equipment | $ | 122,688 | $ | 156,815 | $ | 94,152 | ||||||
Depreciation and amortization: | ||||||||||||
Electronic Instruments | $ | 153,111 | $ | 121,709 | $ | 108,053 | ||||||
Electromechanical | 78,664 | 75,801 | 73,222 | |||||||||
Total segment depreciation and amortization | 231,775 | 197,510 | 181,275 | |||||||||
Corporate | 2,267 | 1,980 | 1,952 | |||||||||
Consolidated depreciation and amortization | $ | 234,042 | $ | 199,490 | $ | 183,227 | ||||||
2022 | 2021 | 2020 | |||||||||||||||
(In thousands) | |||||||||||||||||
Operating income and income before income taxes: | |||||||||||||||||
Segment operating income: | |||||||||||||||||
Electronic Instruments | $ | 1,089,729 | $ | 958,183 | $ | 770,620 | |||||||||||
Electromechanical | 503,593 | 437,378 | 324,962 | ||||||||||||||
Total segment operating income | 1,593,322 | 1,395,561 | 1,095,582 | ||||||||||||||
Corporate administrative expenses | (92,630) | (86,891) | (67,698) | ||||||||||||||
Consolidated operating income | 1,500,692 | 1,308,670 | 1,027,884 | ||||||||||||||
Interest and other income (expenses), net | (72,000) | (85,500) | 54,425 | ||||||||||||||
Consolidated income before income taxes | $ | 1,428,692 | $ | 1,223,170 | $ | 1,082,309 | |||||||||||
Assets: | |||||||||||||||||
Electronic Instruments | $ | 9,430,797 | $ | 8,672,711 | |||||||||||||
Electromechanical | 2,617,685 | 2,638,773 | |||||||||||||||
Total segment assets | 12,048,482 | 11,311,484 | |||||||||||||||
Corporate | 382,638 | 586,703 | |||||||||||||||
Consolidated assets | $ | 12,431,120 | $ | 11,898,187 |
2022 | 2021 | 2020 | |||||||||||||||
(In thousands) | |||||||||||||||||
Additions to property, plant and equipment(1): | |||||||||||||||||
Electronic Instruments | $ | 93,505 | $ | 168,267 | $ | 48,638 | |||||||||||
Electromechanical | 38,186 | 34,586 | 26,381 | ||||||||||||||
Total segment additions to property, plant and equipment | 131,691 | 202,853 | 75,019 | ||||||||||||||
Corporate | 19,757 | 10,417 | 1,007 | ||||||||||||||
Consolidated additions to property, plant and equipment | $ | 151,448 | $ | 213,270 | $ | 76,026 | |||||||||||
Depreciation and amortization: | |||||||||||||||||
Electronic Instruments | $ | 238,436 | $ | 210,118 | $ | 174,494 | |||||||||||
Electromechanical | 77,896 | 79,497 | 78,297 | ||||||||||||||
Total segment depreciation and amortization | 316,332 | 289,615 | 252,791 | ||||||||||||||
Corporate | 3,095 | 2,497 | 2,484 | ||||||||||||||
Consolidated depreciation and amortization | $ | 319,427 | $ | 292,112 | $ | 255,275 |
2022 | 2021 | ||||||||||
(In thousands) | |||||||||||
Long-lived assets from continuing operations (excluding intangible assets): | |||||||||||
United States | $ | 412,577 | $ | 416,323 | |||||||
International(1): | |||||||||||
United Kingdom | 71,462 | 74,525 | |||||||||
European Union countries | 89,993 | 87,117 | |||||||||
Asia | 11,479 | 11,971 | |||||||||
Other foreign countries | 50,130 | 27,202 | |||||||||
Total international | 223,064 | 200,815 | |||||||||
Total consolidated | $ | 635,641 | $ | 617,138 |
2019 | 2018 | |||||||
(In thousands) | ||||||||
Long-lived assets from continuing operations (excluding intangible assets): | ||||||||
United States | $ | 370,144 | $ | 380,855 | ||||
�� | ||||||||
International (1) : | ||||||||
United Kingdom | 57,675 | 55,527 | ||||||
European Union countries | 78,500 | 78,524 | ||||||
Asia | 12,869 | 11,846 | ||||||
Other foreign countries | 29,720 | 27,378 | ||||||
Total international | 178,764 | 173,275 | ||||||
Total consolidated | $ | 548,908 | $ | 554,130 | ||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total Year | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||
2019 | ||||||||||||||||||||
Net sales | $ | 1,287,691 | $ | 1,289,412 | $ | 1,276,633 | $ | 1,304,821 | $ | 5,158,557 | ||||||||||
Operating income | $ | 283,259 | $ | 295,410 | $ | 301,056 | $ | 297,655 | $ | 1,177,380 | ||||||||||
Net income | $ | 204,268 | $ | 215,503 | $ | 220,749 | $ | 220,777 | $ | 861,297 | ||||||||||
Basic earnings per share (2) | $ | 0.90 | $ | 0.95 | $ | 0.97 | $ | 0.97 | $ | 3.78 | ||||||||||
Diluted earnings per share (2) | $ | 0.89 | $ | 0.94 | $ | 0.96 | $ | 0.96 | $ | 3.75 | ||||||||||
Dividends paid per share | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.56 | ||||||||||
2018 | ||||||||||||||||||||
Net sales | $ | 1,172,647 | $ | 1,208,935 | $ | 1,192,962 | $ | 1,271,328 | $ | 4,845,872 | ||||||||||
Operating income | $ | 258,168 | $ | 270,086 | $ | 265,266 | $ | 282,020 | $ | 1,075,540 | ||||||||||
Net income (1) | $ | 181,340 | $ | 193,860 | $ | 191,213 | $ | 211,520 | $ | 777,933 | ||||||||||
Basic earnings per share (1) (2) | $ | 0.79 | $ | 0.84 | $ | 0.83 | $ | 0.92 | $ | 3.37 | ||||||||||
Diluted earnings per share (1) (2) | $ | 0.78 | $ | 0.83 | $ | 0.82 | $ | 0.91 | $ | 3.34 | ||||||||||
Dividends paid per share | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.56 |
Exhibit Number | Description | Incorporated Herein by Reference to | ||||||||||
3.1 | Exhibit 3.1 to Form 8-K, dated May 13, 2019, SEC File No. 1-12981. | |||||||||||
3.2 | Exhibit 3.2 to 1-12981. | |||||||||||
4.3† | ||||||||||||
Exhibit 4 to Form S-8 dated May 6, 2011, SEC File No. 1-12981. | ||||||||||||
4.4† | Exhibit 4.5 to 2012 Form 10-K, SEC File No. 1-12981. | |||||||||||
4.5† | Exhibit 4.3 to Form S-8 dated May 8, 2020, No. 1-12981 | |||||||||||
10.1† | Exhibit 10.4 to Form 10-Q dated September 30, 2007, SEC File No. 1-12981. | |||||||||||
10.2† | Exhibit 10.1 to Form 10-Q dated September 30, 2018, SEC File No. 1-12981. | |||||||||||
10.3† | Exhibit 10.1 to Form 10-Q dated June 30, 2018, SEC File No. 1-12981. | |||||||||||
10.5† | Exhibit 10.5 to 2016 Form 10-K, SEC File No. 1-12981. | |||||||||||
10.6† | Exhibit 10.3 to Form 10-Q dated September 30, 2007, SEC File No. 1-12981. | |||||||||||
10.7† | Exhibit 10.7 to Form 10-Q dated September 30, 2007, SEC File No. 1-12981. | |||||||||||
Exhibit Number | Description | Incorporated Herein by Reference to | ||||||||||
10.8† | Exhibit 10.1 to Form 10-Q dated March 31, 2017, SEC File No. 1-12981. | |||||||||||
10.9† | Exhibit 10.2 to Form 10-Q dated September 30, 2018, SEC File No. 1-12981. | |||||||||||
10.10† | Exhibit 10.3 to Form 10-Q dated September 30, 2018, SEC File No. 1-12981. | |||||||||||
10.11† | Exhibit 10.1 to Form 10-Q dated March 31, 2018, SEC File No. 1-12981. | |||||||||||
10.12† | Exhibit 10.2 to Form 10-Q dated March 31, 2018, SEC File No. 1-12981. | |||||||||||
10.13† | Exhibit 10.1 to Form 8-K dated May 8, 2018, SEC File No. 1-12981. | |||||||||||
10.14† | Exhibit 10.2 to Form 8-K dated May 8, 2018, SEC File No. 1-12981. | |||||||||||
10.15† | Exhibit 10.3 to Form 8-K dated May 8, 2018, SEC File No. 1-12981. | |||||||||||
10.16† | Exhibit 10.4 to Form 8-K dated May 8, 2018, SEC File No. 1-12981. | |||||||||||
10.17 | Exhibit 10.4 to Form 10-Q dated September 30, 2018, SEC File No. 1-12981. | |||||||||||
Exhibit | Description | |||||||||||
10.18 | Exhibit 10.1 to Form |
1-12981 | ||||||||||||
10.19 | Exhibit 1-12981 | |||||||||||
10.24 | Exhibit 10.1 to Form 8-K dated October 2, 2014, SEC File No. 1-12981. | |||||||||||
10.25 | Exhibit 10.1 to Form 10-Q dated September 30, 2016, SEC File No. 1-12981. | |||||||||||
10.26 | Exhibit 10.1 to Form 8-K dated November 2, 2016, SEC File No. 1-12981. | |||||||||||
10.27 | Exhibit 10.1 to Form 8-K dated December 13, 2018, SEC File No. 1-12981. | |||||||||||
10.28 | Exhibit 10.1 to Form 10-Q dated March 31, 2021, SEC File No. 1-12981. | |||||||||||
10.29 | Exhibit 10.2 to Form 10-Q dated March 31, 2021, SEC File No. 1-12981. | |||||||||||
10.30 | Exhibit 10.3 to Form 10-Q dated March 31, 2021, SEC File No. 1-12981. | |||||||||||
10.31 | Exhibit 10.4 to Form 10-Q dated March 31, 2021, SEC File No. 1-12981. | |||||||||||
10.32 | Exhibit 10.5 to Form 10-Q dated March 31, 2021, SEC File No. 1-12981. | |||||||||||
10.33 | Exhibit 10.6 to Form 10-Q dated March 31, 2021, SEC File No. 1-12981. | |||||||||||
10.34 | Exhibit 10.7 to Form 10-Q dated March 31, 2021, SEC File No. 1-12981. | |||||||||||
10.35* | ||||||||||||
21* |
Exhibit Number | Description | Incorporated Herein by Reference to | ||||||||||
23* | ||||||||||||
31.1* | ||||||||||||
31.2* | ||||||||||||
32.1* | ||||||||||||
32.2* | ||||||||||||
101.INS* | ||||||||||||
XBRL Instance Document. | ||||||||||||
101.SCH* | XBRL Taxonomy Extension Schema Document. | |||||||||||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||||||
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. | |||||||||||
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document. | |||||||||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||||||
104 | Cover Page Interactive Date File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibit 101). |
AMETEK, Inc. | |||||||||||||||
By: | |||||||||||||||
ZAPICO | |||||||||||||||
David A. Zapico | |||||||||||||||
Chief Executive Officer | |||||||||||||||
Date : February 21, 2023 | |||||||||||||||
Signature | Title | Date | ||||||||||||
/s/ | Chairman of the Board of Directors and Chief Executive Officer (Principal Executive Officer) | February | ||||||||||||
21, 2023 | ||||||||||||||
David A. Zapico | ||||||||||||||
/s/ WILLIAM J. BURKE | Executive Vice President – Chief Financial Officer (Principal Financial Officer) | February 21, 2023 | ||||||||||||
William J. Burke | ||||||||||||||
/s/ THOMAS M. MONTGOMERY | Senior Vice President – Comptroller (Principal | February | ||||||||||||
Thomas M. Montgomery | ||||||||||||||
/s/ THOMAS A. AMATO | Director | February 21, 2023 | ||||||||||||
Thomas A. Amato | ||||||||||||||
/s/ TOD E. CARPENTER | Director | February 21, 2023 | ||||||||||||
Tod E. Carpenter | ||||||||||||||
/s/ ANTHONY J. CONTI | Director | February 21, 2023 | ||||||||||||
Anthony J. Conti | ||||||||||||||
/s/ STEVEN W. KOHLHAGEN | Director | February 21, 2023 | ||||||||||||
Steven W. Kohlhagen | ||||||||||||||
/s/ GRETCHEN W. MCCLAIN | Director | February 21, 2023 | ||||||||||||
Gretchen W. McClain | ||||||||||||||
/s/ | Director | February | ||||||||||||
Karleen M. Oberton | ||||||||||||||
/s/ | Director | February | ||||||||||||
Dean Seavers | ||||||||||||||
/s/ SUZANNE L. STEFANY | Director | February 21, 2023 | ||||||||||||
Suzanne L. Stefany |