Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 30, 2018 | Apr. 19, 2018 | |
Document and Entity Information [Abstract] | ||
Document type | 10-Q | |
Amendment flag | false | |
Document period end date | Mar. 30, 2018 | |
Document fiscal year focus | 2,018 | |
Document fiscal period focus | Q1 | |
Trading symbol | FTV | |
Entity registrant name | Fortive Corp | |
Entity central index key | 1,659,166 | |
Current fiscal year end date | --12-31 | |
Entity filer category | Large Accelerated Filer | |
Entity common stock, shares outstanding | 348,560,770 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Mar. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and equivalents | $ 1,015.7 | $ 962.1 |
Accounts receivable, net | 1,172.1 | 1,143.6 |
Inventories: | ||
Finished goods | 216.6 | 217.2 |
Work in process | 96.7 | 78.9 |
Raw materials | 302.6 | 284.5 |
Total inventories | 615.9 | 580.6 |
Prepaid expenses and other current assets | 276 | 250.5 |
Total current assets | 3,079.7 | 2,936.8 |
Property, plant and equipment, net of accumulated depreciation of $1,117.3 and $1,086.8 at March 30, 2018 and December 31, 2017, respectively | 709.8 | 712.5 |
Other assets | 480.5 | 476.8 |
Goodwill | 5,126.2 | 5,098.5 |
Other intangible assets, net | 1,259.2 | 1,276 |
Total assets | 10,655.4 | 10,500.6 |
Current liabilities: | ||
Trade accounts payable | 711.7 | 727.5 |
Accrued expenses and other current liabilities | 749.7 | 874.8 |
Total current liabilities | 1,461.4 | 1,602.3 |
Other long-term liabilities | 1,087.4 | 1,033.9 |
Long-term Debt | 3,996.9 | 4,056.2 |
Equity: | ||
Preferred stock: $0.01 par value, 15 million shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock: $0.01 par value, 2.0 billion shares authorized; 349.0 million and 348.2 million issued; 348.5 million and 347.8 million outstanding at March 30, 2018 and December 31,2017, respectively | 3.5 | 3.5 |
Additional paid-in capital | 2,476.1 | 2,444.1 |
Retained earnings | 1,583.3 | 1,350.3 |
Accumulated other comprehensive income (loss) | 29.5 | (7.6) |
Total Fortive stockholders’ equity | 4,092.4 | 3,790.3 |
Noncontrolling interests | 17.3 | 17.9 |
Total stockholders’ equity | 4,109.7 | 3,808.2 |
Total liabilities and equity | $ 10,655.4 | $ 10,500.6 |
Consolidated Condensed Balance3
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 1,117.3 | $ 1,086.8 |
Preferred stock par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock issued (in shares) | 349,000,000 | 348,200,000 |
Common stock outstanding (in shares) | 348,500,000 | 347,800,000 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Sales | $ 1,740.7 | $ 1,535.2 |
Cost of sales | (869.9) | (791.2) |
Gross profit | 870.8 | 744 |
Operating costs: | ||
Selling, general and administrative expenses | (423.7) | (352.2) |
Research and development expenses | (108.9) | (96.2) |
Operating profit | 338.2 | 295.6 |
Non-operating expense: | ||
Interest expense, net | (24.6) | (22.6) |
Other non-operating expenses | (0.7) | (0.7) |
Earnings before income taxes | 312.9 | 272.3 |
Income taxes | (51.7) | (72.6) |
Net earnings | $ 261.2 | $ 199.7 |
Net earnings per share: | ||
Basic (in dollars per share) | $ 0.75 | $ 0.58 |
Diluted (in dollars per share) | $ 0.74 | $ 0.57 |
Average common stock and common equivalent shares outstanding: | ||
Basic (in shares) | 348.6 | 347 |
Diluted (in shares) | 354.4 | 351.5 |
Consolidated Condensed Stateme
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 261.2 | $ 199.7 |
Other comprehensive income, net of income taxes: | ||
Foreign currency translation adjustments | 36.4 | 43.6 |
Pension adjustments | 0.7 | 0.8 |
Total other comprehensive income, net of income taxes | 37.1 | 44.4 |
Comprehensive income | $ 298.3 | $ 244.1 |
Consolidated Condensed Stateme6
Consolidated Condensed Statement of Changes in Equity - 3 months ended Mar. 30, 2018 - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Common stock outstanding (in shares) at Dec. 31, 2017 | 347.8 | 347.8 | ||||
Equity, beginning of period at Dec. 31, 2017 | $ 3,808.2 | $ 3.5 | $ 2,444.1 | $ 1,350.3 | $ (7.6) | $ 17.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings for the period | 261.2 | 261.2 | ||||
Dividends to shareholders | (24.3) | |||||
Separation related adjustments | 13.3 | |||||
Other comprehensive income | $ 37.1 | 37.1 | ||||
Common stock-based award activity (in shares) | 0.7 | |||||
Common stock-based award activity | 18.7 | |||||
Change in noncontrolling interests | (0.6) | |||||
Common stock outstanding (in shares) at Mar. 30, 2018 | 348.5 | 348.5 | ||||
Equity, end of period at Mar. 30, 2018 | $ 4,109.7 | $ 3.5 | $ 2,476.1 | $ 1,583.3 | $ 29.5 | $ 17.3 |
Consolidated Condensed Stateme7
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net earnings | $ 261.2 | $ 199.7 |
Noncash items: | ||
Depreciation | 35 | 23.4 |
Amortization | 25 | 13.3 |
Stock-based compensation expense | 11.9 | 12 |
Change in accounts receivable, net | (20.1) | 10 |
Change in inventories | (31.9) | (24.2) |
Change in trade accounts payable | (22.2) | (47.5) |
Change in prepaid expenses and other assets | (5.9) | (0.6) |
Change in accrued expenses and other liabilities | (82) | (37.8) |
Net cash provided by operating activities | 171 | 148.3 |
Cash flows from investing activities: | ||
Cash paid for acquisitions | (7.7) | 0 |
Payments for additions to property, plant and equipment | (31.4) | (26.8) |
All other investing activities | 0.1 | (0.6) |
Net cash used in investing activities | (39) | (27.4) |
Cash flows from financing activities: | ||
Net repayments of borrowings (maturities of 90 days or less) | (74.3) | (95.5) |
Payments of dividends | (24.3) | (24.2) |
All other financing activities | 4.4 | 0.3 |
Net cash used by financing activities | (94.2) | (119.4) |
Effect of exchange rate changes on cash and equivalents | 15.8 | 12.9 |
Net change in cash and equivalents | 53.6 | 14.4 |
Beginning balance of cash and equivalents | 962.1 | 803.2 |
Ending balance of cash and equivalents | $ 1,015.7 | $ 817.6 |
Business Overview and Basis of
Business Overview and Basis of Presentation | 3 Months Ended |
Mar. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview and Basis of Presentation | NOTE 1. BUSINESS OVERVIEW Fortive Corporation (“Fortive”, the “Company,” “we,” “us,” or “our”) is a diversified industrial growth company encompassing businesses that are recognized leaders in attractive markets. Our well-known brands hold leading positions in advanced instrumentation and solutions, transportation technology, sensing, automation and specialty, and franchise distribution markets. Our businesses design, develop, service, manufacture and market professional and engineered products, software and services for a variety of end markets, building upon leading brand names, innovative technology and significant market positions. We prepared the unaudited consolidated condensed financial statements included herein in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) applicable for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations; however, we believe the disclosures are adequate to make the information presented not misleading. The consolidated condensed financial statements included herein should be read in conjunction with the audited annual consolidated and combined financial statements as of and for the year ended December 31, 2017 and the footnotes (“Notes”) thereto included within our 2017 Annual Report on Form 10-K . In our opinion, the accompanying financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to fairly present our financial position as of March 30, 2018 and December 31, 2017 , and our results of operations and cash flows for the three months ended March 30, 2018 and March 31, 2017 . Accumulated Other Comprehensive Income (Loss) —Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. The changes in accumulated other comprehensive income (loss) by component are summarized below ($ in millions): Foreign currency translation adjustments Pension adjustments Total For the Three Months Ended March 30, 2018: Balance, December 31, 2017 $ 64.0 $ (71.6 ) $ (7.6 ) Other comprehensive income (loss) before reclassifications, net of income taxes 36.4 — 36.4 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 0.9 (a) 0.9 Income tax impact — (0.2 ) (0.2 ) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.7 0.7 Net current period other comprehensive income (loss), net of income taxes 36.4 0.7 37.1 Balance, March 30, 2018 $ 100.4 $ (70.9 ) $ 29.5 For the Three Months Ended March 31, 2017: Balance, December 31, 2016 $ (72.6 ) $ (73.2 ) $ (145.8 ) Other comprehensive income (loss) before reclassifications, net of income taxes 43.6 — 43.6 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 1.1 (a) 1.1 Income tax impact — (0.3 ) (0.3 ) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.8 0.8 Net current period other comprehensive income (loss), net of income taxes 43.6 0.8 44.4 Balance, March 31, 2017 $ (29.0 ) $ (72.4 ) $ (101.4 ) (a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 7 for additional details). Recently Issued Accounting Standards —In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amends the impairment model by requiring entities to use a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. This standard is effective for us beginning January 1, 2020, with early adoption permitted. We are currently evaluating the impact of this standard on our financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which will require, among other items, lessees to recognize a right-of-use asset and a lease liability for most leases. The standard also requires lessees and lessors to disclose the amount, timing and uncertainty of cash flows arising from leases. The accounting applied by a lessor is largely unchanged from the current standard. This standard is effective for us beginning January 1, 2019 (with early adoption permitted) using a modified retrospective transition approach and provides for certain practical expedients. In September 2017, the FASB issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842) , which provided additional implementation guidance on the previously issued ASU. We are currently evaluating the impact of this standard on our financial statements. |
Acquisitions and Divestitures A
Acquisitions and Divestitures Acquisitions and Divestitures | 3 Months Ended |
Mar. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 2. ACQUISITIONS AND DIVESTITURES For a description of our material acquisition activity, refer to Note 3 of our 2017 Annual Report on Form 10-K . We continually evaluate potential acquisitions and divestitures that align with our portfolio strategy and expedite the evolution of our portfolio into new and attractive business areas. We have completed a number of acquisitions that have been accounted for as purchases and have resulted in the recognition of goodwill in our financial statements. This goodwill arises because the purchase price for each business reflects a number of factors including the future earnings and cash flow potential of the business, the multiple to earnings, cash flow and other factors at which similar businesses have been purchased by other acquirers, the competitive nature of the processes by which we acquired the business, the avoidance of the time and costs which would be required (and the associated risks that would be encountered) to enhance our existing offerings to key target markets and develop new and profitable businesses, and the complementary strategic fit and resulting synergies the business brings to existing operations. We make an initial allocation of the purchase price at the date of acquisition based on our understanding of the fair value of the acquired assets and assumed liabilities. We obtain this information during due diligence and through other sources. In the months after closing, as we obtain additional information about these assets and liabilities, including through tangible and intangible asset appraisals, and learn more about the newly acquired business, we are able to refine the estimates of fair value and more accurately allocate the purchase price. Only items identified as of the acquisition date are considered for subsequent adjustment. We are in the process of obtaining valuations of certain acquired assets and evaluating the tax impact in connection with certain acquisitions. We make appropriate adjustments to purchase price allocations prior to completion of the applicable measurement period, as required. Planned Divestiture of A&S Business On March 7, 2018, we entered into a definitive agreement to combine four of our operating companies from our Automation & Specialty platform (the “A&S Business”) with Altra Industrial Motion Corp (“Altra”) in a tax-efficient Reverse Morris Trust transaction. In the transaction, we will receive approximately $1.4 billion in cash and debt retirement, and our shareholders will receive in the aggregate 35 million shares of Altra, representing approximately 54% of outstanding shares of Altra common stock immediately following the transaction. The A&S Business includes the market-leading brands of Kollmorgen, Thomson, Portescap and Jacobs Vehicle Systems, and generated approximately $907 million in revenue for the year ended December 31, 2017. The transaction is expected to close by the end of 2018, subject to customary closing conditions, including receipt of certain regulatory approvals, Altra shareholder approval, and our receipt of confirmation of the tax treatment of certain matters. Upon closing of the transaction, we will classify the historical results of the A&S Business as discontinued operations in our financial statements. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 3. GOODWILL The following is a rollforward of our goodwill ($ in millions): Balance, December 31, 2017 $ 5,098.5 Attributable to 2018 acquisitions 1.8 Foreign currency translation & other 25.9 Balance, March 30, 2018 $ 5,126.2 The carrying value of goodwill by segment is summarized as follows ($ in millions): March 30, 2018 December 31, 2017 Professional Instrumentation $ 3,349.1 $ 3,331.0 Industrial Technologies 1,777.1 1,767.5 Total goodwill $ 5,126.2 $ 5,098.5 We have not identified any “triggering” events which would have indicated a potential impairment of goodwill in the three months ended March 30, 2018 . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 4. FAIR VALUE MEASUREMENTS Accounting standards define fair value based on an exit price model, establish a framework for measuring fair value where our assets and liabilities are required to be carried at fair value and provide for certain disclosures related to the valuation methods used within a valuation hierarchy as established within the accounting standards. This hierarchy prioritizes the inputs into three broad levels as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, or other observable characteristics for the asset or liability, including interest rates, yield curves and credit risks, or inputs that are derived principally from, or corroborated by, observable market data through correlation. • Level 3 inputs are unobservable inputs based on our assumptions. The classification of a financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Below is a summary of financial liabilities that are measured at fair value on a recurring basis ($ in millions): Quoted Prices in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total March 30, 2018 Deferred compensation liabilities $ — $ 20.3 $ — $ 20.3 December 31, 2017 Deferred compensation liabilities $ — $ 20.9 $ — $ 20.9 Certain management employees participate in our nonqualified deferred compensation programs that permit such employees to defer a portion of their compensation, on a pretax basis, until after their termination of employment. All amounts deferred under such plans are unfunded, unsecured obligations and are presented as a component of our compensation and benefits accrual included in other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets. Participants may choose among alternative earning rates for the amounts they defer, which are primarily based on investment options within our defined contribution plans for the benefit of U.S. employees (except that the earnings rates for amounts contributed unilaterally by the Company are entirely based on changes in the value of Fortive common stock). Changes in the deferred compensation liability under these programs are recognized based on changes in the fair value of the participants’ accounts, which are based on the applicable earnings rates. Fair Value of Financial Instruments The carrying amount and fair value of financial instruments are as follows ($ in millions): March 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Long-term borrowings $ 3,996.9 $ 3,932.9 $ 4,056.2 $ 4,051.8 As of March 30, 2018 and December 31, 2017 , long-term borrowings were categorized as Level 1. The fair value of long-term borrowings was based on quoted market prices. The difference between the fair value and the carrying amounts of long-term borrowings may be attributable to changes in market interest rates and/or our credit ratings subsequent to the incurrence of the borrowing. The fair value of cash and cash equivalents, accounts receivable, net and trade accounts payable approximates their carrying amount due to the short-term maturities of these instruments. |
Financing
Financing | 3 Months Ended |
Mar. 30, 2018 | |
Debt Disclosure [Abstract] | |
Financing | NOTE 5. FINANCING The carrying value of the components of our long-term debt were as follows ($ in millions): March 30, 2018 December 31, 2017 U.S. dollar-denominated commercial paper $ 590.3 $ 665.1 Euro-denominated commercial paper 290.3 282.7 U.S. dollar variable interest rate term loan due 2019 500.0 500.0 Yen variable interest rate term loan due 2022 129.7 122.4 1.80% senior unsecured notes due 2019 299.1 298.9 2.35% senior unsecured notes due 2021 746.2 745.9 3.15% senior unsecured notes due 2026 891.2 891.0 4.30% senior unsecured notes due 2046 546.8 546.8 Other 3.3 3.4 Long-term debt $ 3,996.9 $ 4,056.2 Unamortized debt discounts, premiums and issuance costs of $18.0 million and $18.2 million as of March 30, 2018 and December 31, 2017 , respectively, and have been netted against the aggregate principal amounts of the components of debt table above. Refer to Note 9 of our 2017 Annual Report on Form 10-K for further details of our debt financing. We generally satisfy any short-term liquidity needs that are not met through operating cash flows and available cash primarily through issuances of commercial paper under our U.S. dollar and Euro-denominated commercial paper programs (“Commercial Paper Programs”). Credit support for the Commercial Paper Programs is provided by a five -year $1.5 billion senior unsecured revolving credit facility that expires on June 16, 2021 (the “Revolving Credit Facility”) which can also be used for working capital and other general corporate purposes. As of March 30, 2018 , no borrowings were outstanding under the Revolving Credit Facility. The details of our Commercial Paper Programs as of March 30, 2018 are as follows ($ in millions): Carrying Value Annual effective rate Weighted average remaining maturity (in days) U.S. dollar-denominated commercial paper $ 590.3 2.48 % 34 Euro-denominated commercial paper $ 290.3 (0.11 )% 58 We classified our borrowings outstanding under the Commercial Paper Programs as long-term debt in the accompanying Consolidated Condensed Balance Sheets as we had the intent and ability, as supported by availability under the Revolving Credit Facility referenced above, to refinance these borrowings for at least one year from the balance sheet date. As of March 30, 2018 , we were in compliance with all of our covenants. |
Revenue (Notes)
Revenue (Notes) | 3 Months Ended |
Mar. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue from Contract with Customer | NOTE 6. REVENUE On January 1, 2018, we adopted ASU 2014-09 Revenue from Contracts with Customers (“Topic 606”) using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting policy under ASC Topic 605 Revenue Recognition . We recorded an immaterial transition adjustment to opening retained earnings as of January 1, 2018 due to the cumulative impact of adopting Topic 606. The impact to revenues as a result of applying Topic 606 for the quarter ended March 30, 2018 was immaterial. Our significant accounting policies are detailed in Note 2 of our 2017 Annual Report on Form 10-K . Significant changes to our accounting policies as a result of adopting Topic 606 are discussed below: Revenue Recognition —We derive revenues primarily from the sale of Professional Instrumentation and Industrial Technologies products and services. Revenue is recognized when control of promised products or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. For revenue related to a product or service to qualify for recognition, we must have an enforceable contract with a customer that defines the goods or services to be transferred and the payment terms related to those goods or services. Further, collection of substantially all consideration for the goods or services transferred must be probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a combination of financial and qualitative factors, including the customers’ financial condition, collateral, debt-servicing ability, past payment experience and credit bureau information. Customer allowances and rebates, consisting primarily of volume discounts and other short-term incentive programs, are considered in determining the transaction price for the contract; these allowances and rebates are reflected as a reduction in the contract transaction price. Significant judgment is exercised in determining product returns, customer allowances and rebates, and are estimated based on historical experience and known trends. Most of our sales contracts contain standard terms and conditions. We evaluate contracts to identify distinct goods and services promised in the contract (performance obligations). Sometimes this evaluation involves judgment to determine whether the goods or services are highly dependent on or highly interrelated with one another, or whether such goods or services significantly modify or customize one another. Certain customer arrangements include multiple performance obligations, typically hardware, installation, training, consulting, services and/or post contract support (“PCS”). Generally, these elements are delivered within the same reporting period, except PCS or other services. We allocate the contract transaction price to each performance obligation using the observable price that the good or service sells for separately in similar circumstances and to similar customers, and/or a residual approach when the observable selling price of a good or service is not known and is either highly variable or uncertain. Allocating the transaction price to each performance obligation sometimes requires significant judgment. Our principal terms of sale are FOB Shipping Point, or equivalent, and, as such, we primarily record revenue upon shipment as we have transferred control to the customer at that point and our performance obligations are satisfied. We evaluate contracts with delivery terms other than FOB Shipping Point and recognize revenue when we have transfered control and satisfied our performance obligations. If any significant obligation to the customer with respect to a sales transaction remains to be fulfilled following shipment (typically installation, other services noted above or acceptance by the customer), revenue recognition is deferred until such obligations have been fulfilled. Further, revenue related to separately priced extended warranty and product maintenance agreements is deferred when appropriate and recognized as revenue over the term of the agreement. Contract Assets — In certain circumstances, we record contract assets which include unbilled amounts typically resulting from sales under contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is not only subject to the passage of time. Contract assets were immaterial as of March 30, 2018 . Contract Costs — We incur direct incremental costs to obtain certain contracts, typically sales-related commissions. Deferred sales-related commissions are generally not capitalized as the amortization period is one year or less, and we elected to use the practical expedient to expense these sales commissions as incurred. Impairment losses recognized on our contract-related assets were immaterial in the first three months of 2018 . Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to PCS and extended warranty sales, where in most cases we receive up-front payment and recognize revenue over the support term. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The noncurrent portion of deferred revenue is included in other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets. Our contract liabilities consisted of the following: March 30, 2018 December 31, 2017 Deferred revenue - current $ 210.3 $ 213.4 Deferred revenue - noncurrent 88.6 86.9 Total contract liabilities $ 298.9 $ 300.3 In the first three months of 2018 , we recognized $43 million of revenue related to our contract liabilities at January 1, 2018 . The decrease in our contract liabilities from December 31, 2017 to March 30, 2018 was primarily due to the timing of cash receipts and sales of PCS and extended warranty services. Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, noncancelable orders, with expected delivery dates to customers greater than one year from March 30, 2018 , for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below. The aggregate performance obligations attributable to each of our segments is as follows ($ in millions): March 30, 2018 Professional Instrumentation $ 115 Industrial Technologies 543 Total $ 658 The majority of remaining performance obligations are related to service and support contracts, which we expect to fulfill approximately 40 percent within the next two years, approximately 70 percent within the next three years and substantially all within four years. Disaggregation of Revenue We disaggregate revenue from contracts with customers by geographic location, major product group and end market for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Disaggregation of revenue for the three months ended March 30, 2018 is presented as follows ($ in millions): Total Professional Instrumentation Industrial Technologies Geographic: United States $ 916.9 $ 408.4 $ 508.5 China 156.4 108.3 48.1 Germany 86.5 35.9 50.6 All other (each country individually less than 5% of total sales) 580.9 319.1 261.8 Total $ 1,740.7 $ 871.7 $ 869.0 Major Products Group: Professional tools and equipment $ 1,120.1 $ 706.5 $ 413.6 Industrial automation, controls and sensors 327.8 104.6 223.2 Franchise distribution 172.9 — 172.9 All other 119.9 60.6 59.3 Total $ 1,740.7 $ 871.7 $ 869.0 End markets: Direct sales Retail fueling (a) $ 348.3 $ — $ 348.3 Industrial & Manufacturing 156.1 90.4 65.7 Vehicle repair (a) 158.8 — 158.8 Utilities & Power 56.0 55.4 0.6 Other 518.5 301.2 217.3 Total direct sales 1,237.7 447.0 790.7 Distributors (a) 503.0 424.7 78.3 Total $ 1,740.7 $ 871.7 $ 869.0 (a) Retail fueling and vehicle repair includes sales to these end markets made through third party distributors. Total distributor sales for the three months ended March 30, 2018 was $789.7 million. Disaggregation of revenue for the three months ended March 31, 2017 is presented as follows ($ in millions): Total Professional Instrumentation Industrial Technologies Geographic: United States $ 846.8 $ 330.4 $ 516.4 China 129.9 90.5 39.4 Germany 69.6 28.7 40.9 All other (each country individually less than 5% of total sales) 488.9 266.5 222.4 Total $ 1,535.2 $ 716.1 $ 819.1 Major Products Group: Professional tools and equipment $ 961.6 $ 558.6 $ 403.0 Industrial automation, controls and sensors 290.7 96.1 194.6 Franchise distribution 171.7 — 171.7 All other 111.2 61.4 49.8 Total $ 1,535.2 $ 716.1 $ 819.1 End markets: Direct sales Retail fueling (a) $ 346.5 $ — $ 346.5 Industrial & Manufacturing 109.9 65.1 44.8 Vehicle repair (a) 157.9 — 157.9 Utilities & Power 52.6 51.7 0.9 Other 460.5 261.7 198.8 Total direct sales 1,127.4 378.5 748.9 Distributors (a) 407.8 337.6 70.2 Total $ 1,535.2 $ 716.1 $ 819.1 (a) Retail fueling and vehicle repair includes sales to these end markets made through third party distributors. Total distributor sales for the three months ended March 31, 2017 was $746.9 million. |
Pension Plans
Pension Plans | 3 Months Ended |
Mar. 30, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans | NOTE 7. PENSION PLANS For a full description of our noncontributory defined benefit pension plans, including the U.S. plan acquired in 2017, refer to Note 10 of our 2017 Annual Report on Form 10-K . The following sets forth the components of our net periodic pension costs associated with our noncontributory defined benefit pension plans ($ in millions): Three Months Ended March 30, 2018 March 31, 2017 U.S. Pension Benefits: Interest cost $ 0.3 $ — Expected return on plan assets (0.4 ) — Net periodic pension cost $ (0.1 ) $ — Non-U.S. Pension Benefits: Service cost $ 0.5 $ 1.0 Interest cost 1.5 1.4 Expected return on plan assets (1.9 ) (1.8 ) Amortization of net loss 0.9 1.1 Net periodic pension cost $ 1.0 $ 1.7 On January 1, 2018, we retrospectively adopted ASU No. 2017-07, Compensation–Retirement Benefits (Topic 715). Accordingly, we have included all components of net periodic pension costs, with the exception of service costs, in other non-operating expenses as a component of non-operating income in the accompanying Consolidated Condensed Statements of Earnings. Service costs continue to be included in cost of sales and selling, general and administrative expenses in the accompanying Consolidated Condensed Statements of Earnings according to the classification of the participant’s compensation. This reclassification of prior year pension cost increased operating income by $0.7 million for the three months ended March 31, 2017 . Employer Contributions During 2018 , our cash contribution requirements for our non-U.S. defined benefit pension plans are expected to be approximately $10 million . We do not expect to make contributions to the U.S. plan during 2018 . The actual amounts to be contributed depend upon, among other things, legal requirements, underlying asset returns, the plan’s funded status, the anticipated tax deductibility of the contribution, local practices, market conditions, interest rates and other factors. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 8. INCOME TAXES Our effective tax rate for the three months ended March 30, 2018 , was 16.5% as compared to 26.7% for the three months ended March 31, 2017 . The year-over-year decrease was due primarily to favorable impacts in 2018 resulting from a lower statutory tax rate in the United States as a result of the Tax Cuts and Jobs Act (“TCJA”) as well as other federal and international tax benefits. Our effective tax rates for 2018 and 2017 differ from the U.S. federal statutory rate of 21% and 35% , respectively, due primarily to our earnings outside the United States that are indefinitely reinvested and taxed at rates lower than the U.S. federal statutory rate, the impact of credits and deductions provided by law, and the effect of favorable adjustments to the provisional estimates recorded in 2017 related to the TCJA as permitted under SEC Staff Accounting Bulletin No. 118 (“SAB 118”). The adjustments recorded to our provisional estimates decreased income tax expense by $4.2 million during the three months ended March 30, 2018 . We will continue to evaluate the effects of the TCJA on the 2017 provisional estimates through the end of the SAB 118 allowable measurement period. Refer to Note 11 of our 2017 Annual Report on Form 10-K for further details including disclosures pursuant to SAB 118 interpretive guidance, including provisional estimates for all TCJA effects. On January 1, 2018, we adopted ASU No. 2016-16, Income Taxes (Topic 715): Intra-entity Transfers of Assets Other Than Inventory using the modified retrospective method , and recorded an immaterial adjustment to opening retained earnings as of January 1, 2018. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | NOTE 9. STOCK-BASED COMPENSATION Our stock-based compensation program (the “Stock Plan”) provides for the grant of stock appreciation rights, performance stock units, restricted stock units, restricted stock awards and performance stock awards (collectively, “Stock Awards”), stock options or any other stock-based award. As of March 30, 2018 , approximately 6 million shares of our common stock were available for subsequent issuance under the Stock Plan. For a full description of our stock-based compensation program refer to Note 15 of our 2017 Annual Report on Form 10-K . Stock-based Compensation Expense Stock-based compensation has been recognized as a component of selling, general & administrative expenses in the accompanying Consolidated Condensed Statements of Earnings based on the portion of the awards that are ultimately expected to vest. The following summarizes the components of our stock-based compensation expense under the Stock Plan ($ in millions): Three Months Ended March 30, 2018 March 31, 2017 Stock Awards: Pretax compensation expense $ 7.1 $ 7.4 Income tax benefit (1.5 ) (2.5 ) Stock Award expense, net of income taxes 5.6 4.9 Stock options: Pretax compensation expense 4.8 4.6 Income tax benefit (1.0 ) (1.6 ) Stock option expense, net of income taxes 3.8 3.0 Total stock-based compensation: Pretax compensation expense 11.9 12.0 Income tax benefit (2.5 ) (4.1 ) Total stock-based compensation expense, net of income taxes $ 9.4 $ 7.9 The following summarizes the unrecognized compensation cost for the Stock Plan awards as of March 30, 2018 . This compensation cost is expected to be recognized over a weighted average period of approximately two years , representing the remaining service period related to the awards. Future compensation amounts will be adjusted for any changes in estimated forfeitures ($ in millions): Stock Awards $ 66.8 Stock options 61.6 Total unrecognized compensation cost $ 128.4 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10. COMMITMENTS AND CONTINGENCIES For a description of our litigation and contingencies, refer to Notes 13 and 14 of our 2017 Annual Report on Form 10-K . Our operating leases extend for varying periods of time up to twenty years and, in some cases, contain renewal options that would extend existing terms beyond twenty years. Minimum rental payments for all operating leases having initial or remaining noncancelable lease terms in excess of one year for 2018 through 2022 and thereafter are: $48 million in 2018, $42 million in 2019, $31 million in 2020, $20 million in 2021, $16 million in 2022 and $20 million thereafter. We generally accrue estimated warranty costs at the time of sale. In general, manufactured products are warranted against defects in material and workmanship when properly used for their intended purpose, installed correctly, and appropriately maintained. Warranty period terms depend on the nature of the product and range from 90 days up to the life of the product. The amount of the accrued warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor, and in certain instances estimated property damage. The accrued warranty liability is reviewed on a quarterly basis and may be adjusted as additional information regarding expected warranty costs becomes known. The following is a rollforward of our accrued warranty liability ($ in millions): Balance, December 31, 2017 $ 69.4 Accruals for warranties issued during the period 15.1 Settlements made (19.1 ) Effect of foreign currency translation 0.3 Balance, March 30, 2018 $ 65.7 |
Net Earnings Per Share
Net Earnings Per Share | 3 Months Ended |
Mar. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | NOTE 11. NET EARNINGS PER SHARE Basic net earnings per share (“EPS”) is calculated by dividing net earnings by the weighted average number of shares of common stock outstanding for the applicable period. Diluted EPS is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of shares under stock-based compensation plans except where the inclusion of such shares would have an anti-dilutive impact. There were 1.5 million and 1.8 million anti-dilutive options to purchase shares excluded from the diluted EPS calculation for the three months ended March 30, 2018 and March 31, 2017 , respectively. Information related to the calculation of net earnings per share of common stock is summarized as follows ($ and shares in millions, except per share amounts): Net Earnings (Numerator) Shares (Denominator) Per Share Amount For the Three Months Ended March 30, 2018: Basic EPS $ 261.2 348.6 $ 0.75 Incremental shares from assumed exercise of dilutive options and vesting of dilutive Stock Awards — 5.8 Diluted EPS $ 261.2 354.4 $ 0.74 For the Three Months Ended March 31, 2017: Basic EPS $ 199.7 347.0 $ 0.58 Incremental shares from assumed issuance of shares under stock-based compensation plans — 4.5 Diluted EPS $ 199.7 351.5 $ 0.57 On January 23, 2018, we declared a regular quarterly dividend of $0.07 per share paid on March 29, 2018 to holders of record on February 23, 2018. On January 24, 2017, we declared a regular quarterly dividend of $0.07 per share paid on March 31, 2017 to holders of record on February 24, 2017. For the three months ended March 30, 2018 , cash dividend payments of $24.3 million were recorded as dividends to shareholders in the accompanying Consolidated Condensed Statement of Changes in Equity. On April 12, 2018, we declared a regular quarterly dividend of $0.07 per share payable on June 29, 2018 to holders of record on May 25, 2018. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 12. SEGMENT INFORMATION We report our results in two separate business segments consisting of Professional Instrumentation and Industrial Technologies. When determining the reportable segments, we aggregated operating segments based on their similar economic and operating characteristics. Operating profit amounts in the Other category consist of unallocated corporate costs and other costs not considered part of our evaluation of reportable segment operating performance. As of March 30, 2018 , there have been no material changes in total assets or liabilities by segment since December 31, 2017 . Segment results are shown below ($ in millions): Three Months Ended March 30, 2018 March 31, 2017 Sales: Professional Instrumentation $ 871.7 $ 716.1 Industrial Technologies 869.0 819.1 Total $ 1,740.7 $ 1,535.2 Operating Profit: Professional Instrumentation $ 206.4 $ 158.5 Industrial Technologies 158.3 152.8 Other (26.5 ) (15.7 ) Total $ 338.2 $ 295.6 |
Business Overview and Basis o20
Business Overview and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Standards | Recently Issued Accounting Standards —In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amends the impairment model by requiring entities to use a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. This standard is effective for us beginning January 1, 2020, with early adoption permitted. We are currently evaluating the impact of this standard on our financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which will require, among other items, lessees to recognize a right-of-use asset and a lease liability for most leases. The standard also requires lessees and lessors to disclose the amount, timing and uncertainty of cash flows arising from leases. The accounting applied by a lessor is largely unchanged from the current standard. This standard is effective for us beginning January 1, 2019 (with early adoption permitted) using a modified retrospective transition approach and provides for certain practical expedients. In September 2017, the FASB issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842) , which provided additional implementation guidance on the previously issued ASU. We are currently evaluating the impact of this standard on our financial statements. |
Revenue (Policies)
Revenue (Policies) | 3 Months Ended |
Mar. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition —We derive revenues primarily from the sale of Professional Instrumentation and Industrial Technologies products and services. Revenue is recognized when control of promised products or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. For revenue related to a product or service to qualify for recognition, we must have an enforceable contract with a customer that defines the goods or services to be transferred and the payment terms related to those goods or services. Further, collection of substantially all consideration for the goods or services transferred must be probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a combination of financial and qualitative factors, including the customers’ financial condition, collateral, debt-servicing ability, past payment experience and credit bureau information. Customer allowances and rebates, consisting primarily of volume discounts and other short-term incentive programs, are considered in determining the transaction price for the contract; these allowances and rebates are reflected as a reduction in the contract transaction price. Significant judgment is exercised in determining product returns, customer allowances and rebates, and are estimated based on historical experience and known trends. Most of our sales contracts contain standard terms and conditions. We evaluate contracts to identify distinct goods and services promised in the contract (performance obligations). Sometimes this evaluation involves judgment to determine whether the goods or services are highly dependent on or highly interrelated with one another, or whether such goods or services significantly modify or customize one another. Certain customer arrangements include multiple performance obligations, typically hardware, installation, training, consulting, services and/or post contract support (“PCS”). Generally, these elements are delivered within the same reporting period, except PCS or other services. We allocate the contract transaction price to each performance obligation using the observable price that the good or service sells for separately in similar circumstances and to similar customers, and/or a residual approach when the observable selling price of a good or service is not known and is either highly variable or uncertain. Allocating the transaction price to each performance obligation sometimes requires significant judgment. Our principal terms of sale are FOB Shipping Point, or equivalent, and, as such, we primarily record revenue upon shipment as we have transferred control to the customer at that point and our performance obligations are satisfied. We evaluate contracts with delivery terms other than FOB Shipping Point and recognize revenue when we have transfered control and satisfied our performance obligations. If any significant obligation to the customer with respect to a sales transaction remains to be fulfilled following shipment (typically installation, other services noted above or acceptance by the customer), revenue recognition is deferred until such obligations have been fulfilled. Further, revenue related to separately priced extended warranty and product maintenance agreements is deferred when appropriate and recognized as revenue over the term of the agreement. |
Contract Assets | Contract Assets — In certain circumstances, we record contract assets which include unbilled amounts typically resulting from sales under contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is not only subject to the passage of time. |
Contract Costs | Contract Costs — We incur direct incremental costs to obtain certain contracts, typically sales-related commissions. Deferred sales-related commissions are generally not capitalized as the amortization period is one year or less, and we elected to use the practical expedient to expense these sales commissions as incurred. |
Contract Liabilities | Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to PCS and extended warranty sales, where in most cases we receive up-front payment and recognize revenue over the support term. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The noncurrent portion of deferred revenue is included in other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets. |
Remaining Performance Obligation | Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, noncancelable orders, with expected delivery dates to customers greater than one year from March 30, 2018 , for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below. |
Business Overview and Basis o22
Business Overview and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassification of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) —Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. The changes in accumulated other comprehensive income (loss) by component are summarized below ($ in millions): Foreign currency translation adjustments Pension adjustments Total For the Three Months Ended March 30, 2018: Balance, December 31, 2017 $ 64.0 $ (71.6 ) $ (7.6 ) Other comprehensive income (loss) before reclassifications, net of income taxes 36.4 — 36.4 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 0.9 (a) 0.9 Income tax impact — (0.2 ) (0.2 ) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.7 0.7 Net current period other comprehensive income (loss), net of income taxes 36.4 0.7 37.1 Balance, March 30, 2018 $ 100.4 $ (70.9 ) $ 29.5 For the Three Months Ended March 31, 2017: Balance, December 31, 2016 $ (72.6 ) $ (73.2 ) $ (145.8 ) Other comprehensive income (loss) before reclassifications, net of income taxes 43.6 — 43.6 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 1.1 (a) 1.1 Income tax impact — (0.3 ) (0.3 ) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.8 0.8 Net current period other comprehensive income (loss), net of income taxes 43.6 0.8 44.4 Balance, March 31, 2017 $ (29.0 ) $ (72.4 ) $ (101.4 ) (a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 7 for additional details). |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following is a rollforward of our goodwill ($ in millions): Balance, December 31, 2017 $ 5,098.5 Attributable to 2018 acquisitions 1.8 Foreign currency translation & other 25.9 Balance, March 30, 2018 $ 5,126.2 The carrying value of goodwill by segment is summarized as follows ($ in millions): March 30, 2018 December 31, 2017 Professional Instrumentation $ 3,349.1 $ 3,331.0 Industrial Technologies 1,777.1 1,767.5 Total goodwill $ 5,126.2 $ 5,098.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis | Below is a summary of financial liabilities that are measured at fair value on a recurring basis ($ in millions): Quoted Prices in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total March 30, 2018 Deferred compensation liabilities $ — $ 20.3 $ — $ 20.3 December 31, 2017 Deferred compensation liabilities $ — $ 20.9 $ — $ 20.9 |
Carrying Amounts and Fair Values of Financial Instruments | The carrying amount and fair value of financial instruments are as follows ($ in millions): March 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Long-term borrowings $ 3,996.9 $ 3,932.9 $ 4,056.2 $ 4,051.8 |
Financing (Tables)
Financing (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Carry Value of Debt | The carrying value of the components of our long-term debt were as follows ($ in millions): March 30, 2018 December 31, 2017 U.S. dollar-denominated commercial paper $ 590.3 $ 665.1 Euro-denominated commercial paper 290.3 282.7 U.S. dollar variable interest rate term loan due 2019 500.0 500.0 Yen variable interest rate term loan due 2022 129.7 122.4 1.80% senior unsecured notes due 2019 299.1 298.9 2.35% senior unsecured notes due 2021 746.2 745.9 3.15% senior unsecured notes due 2026 891.2 891.0 4.30% senior unsecured notes due 2046 546.8 546.8 Other 3.3 3.4 Long-term debt $ 3,996.9 $ 4,056.2 The details of our Commercial Paper Programs as of March 30, 2018 are as follows ($ in millions): Carrying Value Annual effective rate Weighted average remaining maturity (in days) U.S. dollar-denominated commercial paper $ 590.3 2.48 % 34 Euro-denominated commercial paper $ 290.3 (0.11 )% 58 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Revenue Recognition [Abstract] | ||
Contract liabilities | Our contract liabilities consisted of the following: March 30, 2018 December 31, 2017 Deferred revenue - current $ 210.3 $ 213.4 Deferred revenue - noncurrent 88.6 86.9 Total contract liabilities $ 298.9 $ 300.3 | |
Remaining performance obligations | The aggregate performance obligations attributable to each of our segments is as follows ($ in millions): March 30, 2018 Professional Instrumentation $ 115 Industrial Technologies 543 Total $ 658 | |
Disaggregation of revenue | Disaggregation of revenue for the three months ended March 30, 2018 is presented as follows ($ in millions): Total Professional Instrumentation Industrial Technologies Geographic: United States $ 916.9 $ 408.4 $ 508.5 China 156.4 108.3 48.1 Germany 86.5 35.9 50.6 All other (each country individually less than 5% of total sales) 580.9 319.1 261.8 Total $ 1,740.7 $ 871.7 $ 869.0 Major Products Group: Professional tools and equipment $ 1,120.1 $ 706.5 $ 413.6 Industrial automation, controls and sensors 327.8 104.6 223.2 Franchise distribution 172.9 — 172.9 All other 119.9 60.6 59.3 Total $ 1,740.7 $ 871.7 $ 869.0 End markets: Direct sales Retail fueling (a) $ 348.3 $ — $ 348.3 Industrial & Manufacturing 156.1 90.4 65.7 Vehicle repair (a) 158.8 — 158.8 Utilities & Power 56.0 55.4 0.6 Other 518.5 301.2 217.3 Total direct sales 1,237.7 447.0 790.7 Distributors (a) 503.0 424.7 78.3 Total $ 1,740.7 $ 871.7 $ 869.0 (a) Retail fueling and vehicle repair includes sales to these end markets made through third party distributors. Total distributor sales for the three months ended March 30, 2018 was $789.7 million. | Disaggregation of revenue for the three months ended March 31, 2017 is presented as follows ($ in millions): Total Professional Instrumentation Industrial Technologies Geographic: United States $ 846.8 $ 330.4 $ 516.4 China 129.9 90.5 39.4 Germany 69.6 28.7 40.9 All other (each country individually less than 5% of total sales) 488.9 266.5 222.4 Total $ 1,535.2 $ 716.1 $ 819.1 Major Products Group: Professional tools and equipment $ 961.6 $ 558.6 $ 403.0 Industrial automation, controls and sensors 290.7 96.1 194.6 Franchise distribution 171.7 — 171.7 All other 111.2 61.4 49.8 Total $ 1,535.2 $ 716.1 $ 819.1 End markets: Direct sales Retail fueling (a) $ 346.5 $ — $ 346.5 Industrial & Manufacturing 109.9 65.1 44.8 Vehicle repair (a) 157.9 — 157.9 Utilities & Power 52.6 51.7 0.9 Other 460.5 261.7 198.8 Total direct sales 1,127.4 378.5 748.9 Distributors (a) 407.8 337.6 70.2 Total $ 1,535.2 $ 716.1 $ 819.1 (a) Retail fueling and vehicle repair includes sales to these end markets made through third party distributors. Total distributor sales for the three months ended March 31, 2017 was $746.9 million. |
Pension Plans (Tables)
Pension Plans (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Periodic Pension Costs | The following sets forth the components of our net periodic pension costs associated with our noncontributory defined benefit pension plans ($ in millions): Three Months Ended March 30, 2018 March 31, 2017 U.S. Pension Benefits: Interest cost $ 0.3 $ — Expected return on plan assets (0.4 ) — Net periodic pension cost $ (0.1 ) $ — Non-U.S. Pension Benefits: Service cost $ 0.5 $ 1.0 Interest cost 1.5 1.4 Expected return on plan assets (1.9 ) (1.8 ) Amortization of net loss 0.9 1.1 Net periodic pension cost $ 1.0 $ 1.7 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation Costs | The following summarizes the components of our stock-based compensation expense under the Stock Plan ($ in millions): Three Months Ended March 30, 2018 March 31, 2017 Stock Awards: Pretax compensation expense $ 7.1 $ 7.4 Income tax benefit (1.5 ) (2.5 ) Stock Award expense, net of income taxes 5.6 4.9 Stock options: Pretax compensation expense 4.8 4.6 Income tax benefit (1.0 ) (1.6 ) Stock option expense, net of income taxes 3.8 3.0 Total stock-based compensation: Pretax compensation expense 11.9 12.0 Income tax benefit (2.5 ) (4.1 ) Total stock-based compensation expense, net of income taxes $ 9.4 $ 7.9 |
Schedule of Future Compensation | Future compensation amounts will be adjusted for any changes in estimated forfeitures ($ in millions): Stock Awards $ 66.8 Stock options 61.6 Total unrecognized compensation cost $ 128.4 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Accrued Warranty Liability | The following is a rollforward of our accrued warranty liability ($ in millions): Balance, December 31, 2017 $ 69.4 Accruals for warranties issued during the period 15.1 Settlements made (19.1 ) Effect of foreign currency translation 0.3 Balance, March 30, 2018 $ 65.7 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Information related to the calculation of net earnings per share of common stock is summarized as follows ($ and shares in millions, except per share amounts): Net Earnings (Numerator) Shares (Denominator) Per Share Amount For the Three Months Ended March 30, 2018: Basic EPS $ 261.2 348.6 $ 0.75 Incremental shares from assumed exercise of dilutive options and vesting of dilutive Stock Awards — 5.8 Diluted EPS $ 261.2 354.4 $ 0.74 For the Three Months Ended March 31, 2017: Basic EPS $ 199.7 347.0 $ 0.58 Incremental shares from assumed issuance of shares under stock-based compensation plans — 4.5 Diluted EPS $ 199.7 351.5 $ 0.57 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Segment results are shown below ($ in millions): Three Months Ended March 30, 2018 March 31, 2017 Sales: Professional Instrumentation $ 871.7 $ 716.1 Industrial Technologies 869.0 819.1 Total $ 1,740.7 $ 1,535.2 Operating Profit: Professional Instrumentation $ 206.4 $ 158.5 Industrial Technologies 158.3 152.8 Other (26.5 ) (15.7 ) Total $ 338.2 $ 295.6 |
Business Overview and Basis o32
Business Overview and Basis of Presentation Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Equity, beginning of period | $ (7.6) | ||
Amounts reclassified from accumulated other comprehensive income (loss): | |||
Total other comprehensive income, net of income taxes | 37.1 | $ 44.4 | |
Equity, end of period | 29.5 | ||
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Equity, beginning of period | 64 | (72.6) | |
Other comprehensive income (loss) before reclassifications, net of income taxes | 36.4 | 43.6 | |
Amounts reclassified from accumulated other comprehensive income (loss): | |||
Increase (decrease) | 0 | 0 | |
Income tax impact | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0 | 0 | |
Total other comprehensive income, net of income taxes | 36.4 | 43.6 | |
Equity, end of period | 100.4 | (29) | |
Pension adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Equity, beginning of period | (71.6) | (73.2) | |
Other comprehensive income (loss) before reclassifications, net of income taxes | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss): | |||
Increase (decrease) | [1] | 0.9 | 1.1 |
Income tax impact | (0.2) | (0.3) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0.7 | 0.8 | |
Total other comprehensive income, net of income taxes | 0.7 | 0.8 | |
Equity, end of period | (70.9) | (72.4) | |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Equity, beginning of period | (7.6) | (145.8) | |
Other comprehensive income (loss) before reclassifications, net of income taxes | 36.4 | 43.6 | |
Amounts reclassified from accumulated other comprehensive income (loss): | |||
Increase (decrease) | 0.9 | 1.1 | |
Income tax impact | (0.2) | (0.3) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0.7 | 0.8 | |
Total other comprehensive income, net of income taxes | 37.1 | 44.4 | |
Equity, end of period | $ 29.5 | $ (101.4) | |
[1] | This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 7 for additional details). |
Acquisitions and Divestitures P
Acquisitions and Divestitures Planned Divestiture (Details) - A&S Business [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Mar. 07, 2018 | |
Noncash or Part Noncash Divestitures [Line Items] | ||
Merger Agreement, Consideration | $ 1,400 | |
Merger Agreement, Consideration, Number of Shares | $ 35 | |
Merger Agreement, Percentage of Investment Ownership | 54.00% | |
Revenues | $ 907 |
Goodwill Rollforward of Goodwil
Goodwill Rollforward of Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill Balance, December 31, 2017 | $ 5,098.5 |
Attributable to 2018 acquisitions | 1.8 |
Foreign currency translation & other | 25.9 |
Goodwill Balance, March 30, 2018 | $ 5,126.2 |
Goodwill Goodwill by Segment (D
Goodwill Goodwill by Segment (Details) - USD ($) $ in Millions | Mar. 30, 2018 | Dec. 31, 2017 |
Goodwill [Line Items] | ||
Goodwill | $ 5,126.2 | $ 5,098.5 |
Professional Instrumentation | ||
Goodwill [Line Items] | ||
Goodwill | 3,349.1 | 3,331 |
Industrial Technologies | ||
Goodwill [Line Items] | ||
Goodwill | $ 1,777.1 | $ 1,767.5 |
Fair Value Measurements Narrati
Fair Value Measurements Narrative (Details) - USD ($) $ in Millions | Mar. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Liability, Classified, Noncurrent | $ 20.3 | $ 20.9 |
Long-term borrowings, carrying value | 3,996.9 | 4,056.2 |
Long-term borrowings, fair value | 3,932.9 | 4,051.8 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Liability, Classified, Noncurrent | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Liability, Classified, Noncurrent | 20.3 | 20.9 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Liability, Classified, Noncurrent | $ 0 | $ 0 |
Financing Components of Debt (D
Financing Components of Debt (Details) - USD ($) $ in Millions | Mar. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 3,996.9 | $ 4,056.2 |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 3.3 | 3.4 |
Commercial Paper [Member] | US Dollar-Denominated Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 590.3 | 665.1 |
Commercial Paper [Member] | Euro Denominated Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 290.3 | 282.7 |
Senior Notes [Member] | Senior Unsecured Notes due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 299.1 | 298.9 |
Debt Instrument, Interest Rate, Stated Percentage | 1.80% | |
Senior Notes [Member] | Senior Unsecured Notes due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 746.2 | 745.9 |
Debt Instrument, Interest Rate, Stated Percentage | 2.35% | |
Senior Notes [Member] | Senior Unsecured Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 891.2 | 891 |
Debt Instrument, Interest Rate, Stated Percentage | 3.15% | |
Senior Notes [Member] | Senior Unsecured Notes due 2046 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 546.8 | 546.8 |
Debt Instrument, Interest Rate, Stated Percentage | 4.30% | |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 500 | 500 |
Yen Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 129.7 | $ 122.4 |
Financing Narrative (Details)
Financing Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 30, 2018 | Dec. 31, 2017 | Jun. 16, 2016 | |
Debt Instrument [Line Items] | |||
Debt discounts, premiums and issuance costs | $ 18 | $ 18.2 | |
Long-term Debt | 3,996.9 | 4,056.2 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | $ 1,500 | ||
US Dollar-Denominated Commercial Paper [Member] | Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 590.3 | 665.1 | |
Short-term Debt, Weighted Average Interest Rate | 2.48% | ||
Debt Instrument, Term | 34 days | ||
Euro Denominated Commercial Paper [Member] | Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 290.3 | $ 282.7 | |
Short-term Debt, Weighted Average Interest Rate | (0.11%) | ||
Debt Instrument, Term | 58 days |
Revenue Contract with Customer,
Revenue Contract with Customer, Liability - USD ($) $ in Millions | Mar. 30, 2018 | Dec. 31, 2017 |
Revenue Recognition [Abstract] | ||
Deferred revenue - current | $ 210.3 | $ 213.4 |
Deferred revenue - noncurrent | 88.6 | 86.9 |
Total contract liabilities | $ 298.9 | $ 300.3 |
Revenue Revenue, Remaining Perf
Revenue Revenue, Remaining Performance Obligation (Details) $ in Millions | Mar. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation [Line Items] | |
Remaining performance obligations | $ 658 |
Professional Instrumentation | Operating Segments | |
Revenue, Remaining Performance Obligation [Line Items] | |
Remaining performance obligations | 115 |
Industrial Technologies | Operating Segments | |
Revenue, Remaining Performance Obligation [Line Items] | |
Remaining performance obligations | $ 543 |
Revenue Disaggregation of Reven
Revenue Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 30, 2018 | Mar. 31, 2017 | |||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 1,740.7 | $ 1,535.2 | ||
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 916.9 | 846.8 | ||
CHINA | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 156.4 | 129.9 | ||
GERMANY | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 86.5 | 69.6 | ||
Countries Excluding United States, China and Germany [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 580.9 | 488.9 | ||
Operating Segments | Professional Instrumentation | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 871.7 | 716.1 | ||
Operating Segments | Professional Instrumentation | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 408.4 | 330.4 | ||
Operating Segments | Professional Instrumentation | CHINA | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 108.3 | 90.5 | ||
Operating Segments | Professional Instrumentation | GERMANY | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 35.9 | 28.7 | ||
Operating Segments | Professional Instrumentation | Countries Excluding United States, China and Germany [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 319.1 | 266.5 | ||
Operating Segments | Industrial Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 869 | 819.1 | ||
Operating Segments | Industrial Technologies | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 508.5 | 516.4 | ||
Operating Segments | Industrial Technologies | CHINA | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 48.1 | 39.4 | ||
Operating Segments | Industrial Technologies | GERMANY | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 50.6 | 40.9 | ||
Operating Segments | Industrial Technologies | Countries Excluding United States, China and Germany [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 261.8 | 222.4 | ||
Professional Tools and Equipment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 1,120.1 | 961.6 | ||
Professional Tools and Equipment [Member] | Operating Segments | Professional Instrumentation | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 706.5 | 558.6 | ||
Professional Tools and Equipment [Member] | Operating Segments | Industrial Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 413.6 | 403 | ||
Industrial Automation, Controls and Sensors [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 327.8 | 290.7 | ||
Industrial Automation, Controls and Sensors [Member] | Operating Segments | Professional Instrumentation | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 104.6 | 96.1 | ||
Industrial Automation, Controls and Sensors [Member] | Operating Segments | Industrial Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 223.2 | 194.6 | ||
Franchise Distribution [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 172.9 | 171.7 | ||
Franchise Distribution [Member] | Operating Segments | Professional Instrumentation | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | ||
Franchise Distribution [Member] | Operating Segments | Industrial Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 172.9 | 171.7 | ||
All Other Products and Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 119.9 | 111.2 | ||
All Other Products and Services [Member] | Operating Segments | Professional Instrumentation | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 60.6 | 61.4 | ||
All Other Products and Services [Member] | Operating Segments | Industrial Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 59.3 | 49.8 | ||
Retail Fueling [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 348.3 | [1] | 346.5 | [2] |
Retail Fueling [Member] | Operating Segments | Professional Instrumentation | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | [1] | 0 | [2] |
Retail Fueling [Member] | Operating Segments | Industrial Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 348.3 | [1] | 346.5 | [2] |
Industrial & Manufacturing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 156.1 | 109.9 | ||
Industrial & Manufacturing [Member] | Operating Segments | Professional Instrumentation | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 90.4 | 65.1 | ||
Industrial & Manufacturing [Member] | Operating Segments | Industrial Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 65.7 | 44.8 | ||
Vehicle Repair [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 158.8 | [1] | 157.9 | [2] |
Vehicle Repair [Member] | Operating Segments | Professional Instrumentation | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | [1] | 0 | [2] |
Vehicle Repair [Member] | Operating Segments | Industrial Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 158.8 | [1] | 157.9 | [2] |
Utilities & Power [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 56 | 52.6 | ||
Utilities & Power [Member] | Operating Segments | Professional Instrumentation | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 55.4 | 51.7 | ||
Utilities & Power [Member] | Operating Segments | Industrial Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0.6 | 0.9 | ||
Other Direct End Markets [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 518.5 | 460.5 | ||
Other Direct End Markets [Member] | Operating Segments | Professional Instrumentation | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 301.2 | 261.7 | ||
Other Direct End Markets [Member] | Operating Segments | Industrial Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 217.3 | 198.8 | ||
Direct End Markets [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 1,237.7 | 1,127.4 | ||
Direct End Markets [Member] | Operating Segments | Professional Instrumentation | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 447 | 378.5 | ||
Direct End Markets [Member] | Operating Segments | Industrial Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 790.7 | 748.9 | ||
Other Distributors [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 503 | [1] | 407.8 | [2] |
Other Distributors [Member] | Operating Segments | Professional Instrumentation | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 424.7 | [1] | 337.6 | [2] |
Other Distributors [Member] | Operating Segments | Industrial Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 78.3 | [1] | 70.2 | [2] |
Distributors [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 789.7 | $ 746.9 | ||
[1] | (a) Retail fueling and vehicle repair includes sales to these end markets made through third party distributors. Total distributor sales for the three months ended March 30, 2018 was $789.7 million. | |||
[2] | (a) Retail fueling and vehicle repair includes sales to these end markets made through third party distributors. Total distributor sales for the three months ended March 31, 2017 was $746.9 million. |
Revenue Narrative (Details)
Revenue Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2018USD ($) | |
Revenue Recognition [Abstract] | |
Recognized revenue from opening liability balance | $ 43 |
Revenue, Remaining Performance Obligation, Percentage Recognized in Year Two | 40.00% |
Revenue, Remaining Performance Obligation, Percentage Recognized in Year Three | 70.00% |
Pension Plans Components of Net
Pension Plans Components of Net Periodic Pension Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
United States Pension Plan of US Entity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 0.3 | $ 0 |
Expected return on plan assets | (0.4) | 0 |
Net periodic pension cost | (0.1) | 0 |
Foreign Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.5 | 1 |
Interest cost | 1.5 | 1.4 |
Expected return on plan assets | (1.9) | (1.8) |
Amortization of net loss | 0.9 | 1.1 |
Net periodic pension cost | $ 1 | $ 1.7 |
Pension Plans Narrative (Detail
Pension Plans Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Foreign Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected contributions | $ 10 | |
Accounting Standards Update 2017-07 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 0.7 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 16.50% | 26.70% |
U.S. federal statutory rate | 21.00% | 35.00% |
TCJA adjustments | $ 4.2 |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pretax compensation expense | $ 11.9 | $ 12 |
Income tax benefit | (2.5) | (4.1) |
Total stock-based compensation expense | 9.4 | 7.9 |
Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pretax compensation expense | 7.1 | 7.4 |
Income tax benefit | (1.5) | (2.5) |
Total stock-based compensation expense | 5.6 | 4.9 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pretax compensation expense | 4.8 | 4.6 |
Income tax benefit | (1) | (1.6) |
Total stock-based compensation expense | $ 3.8 | $ 3 |
Stock-Based Compensation Unreco
Stock-Based Compensation Unrecognized Compensation Cost (Details) $ in Millions | Mar. 30, 2018USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 128.4 |
Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | 66.8 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 61.6 |
Stock-Based Compensation Narrat
Stock-Based Compensation Narrative (Details) shares in Millions | 3 Months Ended |
Mar. 30, 2018shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shares of common stock reserved for issuance under the Stock Plan | 6 |
Remaining service period related to the awards | 2 years |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 48 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 42 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 31 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 20 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 16 | |
Operating Leases, Future Minimum Payments, Due Thereafter | $ 20 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Accrued warranty liability, beginning of period | $ 69.4 | |
Accruals for warranties issued during the period | 15.1 | |
Settlements made | (19.1) | |
Effect of foreign currency translation | 0.3 | |
Accrued warranty liability, end of period | $ 65.7 | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 20 years | |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Warranty Period | 90 days |
Net Earnings Per Share Earnings
Net Earnings Per Share Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Basic EPS | $ 261.2 | $ 199.7 |
Incremental shares from assumed exercise of dilutive options and vesting of dilutive Stock Awards | 0 | 0 |
Diluted EPS | $ 261.2 | $ 199.7 |
Basic EPS (in shares) | 348.6 | 347 |
Incremental shares from assumed exercise of dilutive options and vesting of dilutive RSUs and PSUs (in shares) | 5.8 | 4.5 |
Diluted EPS (in shares) | 354.4 | 351.5 |
Basic EPS (in dollars per share) | $ 0.75 | $ 0.58 |
Diluted EPS (in dollars per share) | $ 0.74 | $ 0.57 |
Net Earnings Per Share Narrativ
Net Earnings Per Share Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Apr. 12, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1.5 | 1.8 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.07 | $ 0.07 | |
Retained Earnings | |||
Dividends, Common Stock, Cash | $ 24.3 | ||
Subsequent Event [Member] | |||
Dividends Payable, Amount Per Share | $ 0.07 |
Segment Information Detailed Se
Segment Information Detailed Segment Data (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Sales | $ 1,740.7 | $ 1,535.2 |
Operating Profit | 338.2 | 295.6 |
Operating Segments | Professional Instrumentation | ||
Segment Reporting Information [Line Items] | ||
Sales | 871.7 | 716.1 |
Operating Profit | 206.4 | 158.5 |
Operating Segments | Industrial Technologies | ||
Segment Reporting Information [Line Items] | ||
Sales | 869 | 819.1 |
Operating Profit | 158.3 | 152.8 |
Corporate, Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating Profit | $ (26.5) | $ (15.7) |
Segment Information Narrative (
Segment Information Narrative (Details) | 3 Months Ended |
Mar. 30, 2018 | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 2 |
Uncategorized Items - ftv-20180
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (3,900,000) |
Noncontrolling Interest [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 17,900,000 |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 1,346,400,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | $ 2,444,100,000 |
Common Stock [Member] | ||
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 347,800,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | $ 3,500,000 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | $ (7,600,000) |