Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 29, 2019 | Apr. 18, 2019 | |
Document and Entity Information [Abstract] | ||
Document type | 10-Q | |
Amendment flag | false | |
Document period end date | Mar. 29, 2019 | |
Document fiscal year focus | 2019 | |
Document fiscal period focus | Q1 | |
Trading symbol | FTV | |
Entity registrant name | Fortive Corporation | |
Entity small business | false | |
Entity emerging growth company | false | |
Entity central index key | 0001659166 | |
Current fiscal year end date | --12-31 | |
Entity filer category | Large Accelerated Filer | |
Entity common stock, shares outstanding | 335,099,399 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and equivalents | $ 3,728.9 | $ 1,178.4 |
Accounts receivable, net | 1,146.6 | 1,195.1 |
Inventories: | ||
Finished goods | 244.1 | 219.5 |
Work in process | 98.3 | 103.1 |
Raw materials | 265.9 | 251.9 |
Total inventories | 608.3 | 574.5 |
Prepaid expenses and other current assets | 286.2 | 193.2 |
Current assets, discontinued operations | 26.3 | 30 |
Total current assets | 5,796.3 | 3,171.2 |
Property, plant and equipment, net of accumulated depreciation of $797.7 and $889.8 at March 29, 2019 and December 31, 2018, respectively | 468.3 | 576.1 |
Operating lease right-of-use assets | 166.4 | 0 |
Other assets | 620.7 | 548.9 |
Goodwill | 6,169 | 6,133.1 |
Other intangible assets, net | 2,435.5 | 2,476.3 |
Total assets | 15,656.2 | 12,905.6 |
Current liabilities: | ||
Current portion of long-term debt | 1,055.4 | 455.6 |
Trade accounts payable | 667.8 | 706.5 |
Current operating lease liabilities | 55.9 | 0 |
Accrued expenses and other current liabilities | 837.8 | 999.3 |
Current liabilities, discontinued operations | 22.7 | 30.7 |
Total current liabilities | 2,639.6 | 2,192.1 |
Operating lease liabilities | 112.5 | 0 |
Other long-term liabilities | 1,313.1 | 1,125.9 |
Long-term debt | 4,728.3 | 2,974.7 |
Equity: | ||
5.0% Mandatory convertible preferred stock, series A: $0.01 par value, 15.0 million shares authorized; 1.4 million shares issued and outstanding at March 29, 2019 and December 31, 2018 | 0 | 0 |
Common stock: $0.01 par value, 2.0 billion shares authorized; 335.8 and 335.1 million issued; 335.0 and 334.5 million outstanding at March 29, 2019 and December 31, 2018, respectively | 3.4 | 3.4 |
Additional paid-in capital | 3,240.3 | 3,126 |
Retained earnings | 3,676.4 | 3,552.7 |
Accumulated other comprehensive income (loss) | (69.4) | (86.6) |
Total Fortive stockholders’ equity | 6,850.7 | 6,595.5 |
Noncontrolling interests | 12 | 17.4 |
Total stockholders’ equity | 6,862.7 | 6,612.9 |
Total liabilities and equity | $ 15,656.2 | $ 12,905.6 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 29, 2019 | Mar. 30, 2018 | Dec. 31, 2018 | |
Statement of Financial Position [Abstract] | |||
Accumulated depreciation | $ 797.7 | $ 889.8 | |
Preferred Stock, Dividend Rate, Percentage | 5.00% | 5.00% | |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock authorized (in shares) | 15,000,000 | 15,000,000 | |
Preferred stock issued (in shares) | 1,400,000 | 0 | |
Preferred stock outstanding (in shares) | 1,400,000 | 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) | 335,800,000 | 335,100,000 | |
Common stock outstanding (in shares) | 335,000,000 | 334,500,000 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Sales | $ 1,592.9 | $ 1,492.2 |
Cost of sales | (780.2) | (725.9) |
Gross profit | 812.7 | 766.3 |
Operating costs: | ||
Selling, general and administrative expenses | (486.4) | (388.5) |
Research and development expenses | (109) | (99.9) |
Operating profit | 217.3 | 277.9 |
Non-operating expenses, net: | ||
Interest expense, net | (25.3) | (23.3) |
Other non-operating income (expenses), net | 0.4 | (0.7) |
Earnings from continuing operations before income taxes | 192.4 | 253.9 |
Income taxes | (28.4) | (39.9) |
Net earnings from continuing operations | 164 | 214 |
Earnings from discontinued operations, net of income taxes | 0.4 | 47.2 |
Net earnings | 164.4 | 261.2 |
Mandatory convertible preferred dividends | (17.3) | 0 |
Net earnings attributable to common stockholders | $ 147.1 | $ 261.2 |
Net earnings per common share from continuing operations: | ||
Net earnings per common share from continuing operations - basic (in dollars per share) | $ 0.44 | $ 0.61 |
Net earnings per common share from continuing operations - diluted (in dollars per share) | 0.43 | 0.61 |
Net earnings per share from discontinued operations: | ||
Net earnings per share from discontinued operations - basic (in dollars per share) | 0 | 0.14 |
Net earnings per share from discontinued operations - diluted (in dollars per share) | 0 | 0.13 |
Net earnings per share: | ||
Net earnings per common share - Basic (in dollars per share) | 0.44 | 0.75 |
Net earnings per share - Diluted (in dollars per share) | $ 0.43 | $ 0.74 |
Average common stock and common equivalent shares outstanding: | ||
Weighted average common shares outstanding used in basic earnings per share (in shares) | 335.1 | 348.6 |
Weighted average common shares outstanding used in diluted earnings per share (in shares) | 339.5 | 354.4 |
Products | ||
Sales | $ 1,405.1 | $ 1,332.4 |
Cost of sales | (647.9) | (614.8) |
Services | ||
Sales | 187.8 | 159.8 |
Cost of sales | $ (132.3) | $ (111.1) |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 164.4 | $ 261.2 |
Other comprehensive income, net of income taxes: | ||
Foreign currency translation adjustments | 16.7 | 36.4 |
Pension adjustments | 0.5 | 0.7 |
Total other comprehensive income, net of income taxes | 17.2 | 37.1 |
Comprehensive income | $ 181.6 | $ 298.3 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Changes in Equity - USD ($) $ in Millions | Total | Common Stock | Preferred Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2017 | 347,800,000 | ||||||
Beginning balance at Dec. 31, 2017 | $ 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 common shareholders | (24.3) | (24.3) | |||||
Mandatory convertible preferred stock cumulative dividends | 0 | ||||||
Separation related adjustments | 13.3 | ||||||
Other comprehensive income | $ 37.1 | 37.1 | |||||
Common stock-based award activity (in shares) | 700,000 | ||||||
Common stock-based award activity | 18.7 | ||||||
Change in noncontrolling interests | (0.6) | ||||||
Ending balance (in shares) at Mar. 30, 2018 | 348,500,000 | ||||||
Ending balance at Mar. 30, 2018 | $ 3.5 | 2,476.1 | 1,583.3 | 29.5 | 17.3 | ||
Beginning balance (in shares) at Dec. 31, 2018 | 334,500,000 | 334,500,000 | |||||
Preferred stock outstanding (in shares) at Dec. 31, 2018 | 0 | 1,400,000 | |||||
Beginning balance at Dec. 31, 2018 | $ 6,612.9 | $ 3.4 | 3,126 | 3,552.7 | (86.6) | 17.4 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings for the period | 164.4 | 164.4 | |||||
Dividends to common shareholders | (23.4) | (23.4) | |||||
Mandatory convertible preferred stock cumulative dividends | (17.3) | (17.3) | |||||
Other comprehensive income | $ 17.2 | 17.2 | |||||
Common stock-based award activity (in shares) | 500,000 | ||||||
Common stock-based award activity | $ 0 | 13.9 | |||||
Issuance of 0.875% senior convertible notes due 2022 | 100.4 | ||||||
Change in noncontrolling interests | (5.4) | ||||||
Ending balance (in shares) at Mar. 29, 2019 | 335,000,000 | 335,000,000 | |||||
Preferred stock outstanding (in shares) at Mar. 29, 2019 | 1,400,000 | 1,400,000 | |||||
Ending balance at Mar. 29, 2019 | $ 6,862.7 | $ 3.4 | $ 3,240.3 | $ 3,676.4 | $ (69.4) | $ 12 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Changes in Equity (Parenthetical) | Mar. 29, 2019 | Feb. 22, 2019 |
0.875% senior convertible notes due 2022 | Convertible Debt | ||
Interest rate, stated percentage | 0.875% | 0.875% |
Consolidated Condensed Statem_5
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Cash flows from operating activities: | ||
Net earnings from continuing operations | $ 164 | $ 214 |
Noncash items: | ||
Depreciation | 29.7 | 31 |
Amortization | 52.2 | 24.9 |
Stock-based compensation expense | 12.9 | 11 |
Change in trade accounts receivable, net | 49.9 | (3.8) |
Change in inventories | (33.3) | (29.8) |
Change in trade accounts payable | (40.6) | (28.6) |
Change in prepaid expenses and other assets | (60.4) | (5.3) |
Change in accrued expenses and other liabilities | (13.2) | (82.6) |
Total operating cash provided by continuing operations | 161.2 | 130.8 |
Total operating cash provided by (used in) discontinued operations | (5) | 40.2 |
Net cash provided by operating activities | 156.2 | 171 |
Cash flows from investing activities: | ||
Cash paid for acquisitions, net of cash received | 0 | (7.7) |
Payments for additions to property, plant and equipment | (24) | (25.9) |
All other investing activities | 0 | 0.1 |
Total investing cash used in continuing operations | (24) | (33.5) |
Total investing cash used in discontinued operations | 0 | (5.5) |
Net cash used in investing activities | (24) | (39) |
Cash flows from financing activities: | ||
Net proceeds from (repayments of) commercial paper borrowings | 443.8 | (74.2) |
Proceeds from borrowings (maturities greater than 90 days), net of $24.3 million of issuance costs | 2,417.8 | 0 |
Repayment of borrowings (maturities greater than 90 days) | (402.9) | 0 |
Payment of common stock cash dividend to shareholders | (23.4) | (24.3) |
Payment of mandatory convertible preferred stock cash dividend to shareholders | (17.3) | 0 |
All other financing activities | (6.8) | 4.4 |
Total financing cash provided by (used in) continuing operations | 2,411.2 | (94.1) |
Total financing cash provided by (used in) discontinued operations | 0 | (0.1) |
Net cash provided by (used in) financing activities | 2,411.2 | (94.2) |
Effect of exchange rate changes on cash and equivalents | 7.1 | 15.8 |
Net change in cash and equivalents | 2,550.5 | 53.6 |
Beginning balance of cash and equivalents | 1,178.4 | 962.1 |
Ending balance of cash and equivalents | $ 3,728.9 | $ 1,015.7 |
Consolidated Condensed Statem_6
Consolidated Condensed Statements of Cash Flows (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 29, 2019USD ($) | |
Parenthetical [Abstract] | |
Payments of debt issuance costs | $ 24.3 |
Business Overview
Business Overview | 3 Months Ended |
Mar. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview | NOTE 1. BUSINESS OVERVIEW Fortive Corporation (“Fortive”, the “Company,” “we,” “us,” or “our”) is a diversified industrial technology growth company encompassing businesses that are recognized leaders in attractive markets. Our well-known brands hold leading positions in advanced instrumentation and solutions, sensing, transportation technology, 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 financial statements as of and for the year ended December 31, 2018 and the footnotes (“Notes”) thereto included within our 2018 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 29, 2019 and December 31, 2018 , and our results of operations and cash flows for the three months ended March 29, 2019 and March 30, 2018 . Reclassification of certain prior year amounts have been made to conform to current year presentation. On October 1, 2018, we completed the split-off of businesses in our automation and specialty platform (excluding our Hengstler and Dynapar businesses) (the “A&S Business”) and have reported the A&S Business as discontinued operations in our Consolidated Condensed Statements of Income, Consolidated Condensed Balance Sheets, and Consolidated Condensed Statements of Cash Flows for all periods presented. Unless otherwise noted discussion within these notes to the consolidated condensed financial statements relates to continuing operations. Refer to Note 3 for additional information on discontinued operations. 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. We have designated our Euro-denominated commercial paper and ¥13.8 billion senior unsecured term facility loan as net investment hedges of our investment in certain foreign operations. Accordingly, foreign currency transaction gains or losses on the debt are deferred in the foreign currency translation component of accumulated other comprehensive income (loss) (“accumulated OCI”) as an offset to the foreign currency translation adjustments on our investments in foreign subsidiaries. We recognized gains of $7.2 million for the three months ended March 29, 2019 and losses of $14.8 million for the three months ended March 30, 2018 in other comprehensive income related to the net investment hedge. Any amounts deferred in accumulated OCI will remain until the hedged investment is sold or substantially liquidated. We recorded no ineffectiveness from our net investment hedges during the three months ended March 29, 2019 and March 30, 2018 , respectively. The changes in accumulated other comprehensive income (loss) by component are summarized below ($ in millions): Foreign currency translation adjustments Pension adjustments (b) Total For the Three Months Ended March 29, 2019: Balance, December 31, 2018 $ (29.3 ) $ (57.3 ) $ (86.6 ) Other comprehensive income (loss) before reclassifications, net of income taxes 16.7 — 16.7 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 0.7 (a) 0.7 Income tax impact — (0.2 ) (c) (0.2 ) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.5 0.5 Net current period other comprehensive income (loss), net of income taxes 16.7 0.5 17.2 Balance, March 29, 2019 $ (12.6 ) $ (56.8 ) $ (69.4 ) 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 ) (c) (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 (a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 9 for additional details). (b) Includes balances relating to defined benefit plans, supplemental executive retirement plans and other postretirement employee benefit plans. (c) We did not elect to reclassify the income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. 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 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 29, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 2. ACQUISITIONS For a description of our material acquisition activity refer to Note 3 of our 2018 Annual Report on Form 10-K . We continually evaluate potential mergers, acquisitions and divestitures that align with our strategy and expedite the evolution of our portfolio of businesses into new and attractive areas. We have completed a number of acquisitions that have been accounted for as purchases and resulted in the recognition of goodwill in our financial statements. This goodwill arises because the purchase price for each acquired business reflects a number of factors including the complimentary fit, acceleration of our strategy and synergies the business brings with respect to our existing operations, the future earnings and cash flow potential of the business, the potential to add other strategically complimentary acquisitions to the acquired business, the scarce or unique nature of the business in its markets, competition to acquire the business, the valuation of similar businesses in the marketplace (as reflected in a multiple of revenues, earnings or cash flows) and 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. 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 of certain acquisitions. We make appropriate adjustments to purchase price allocations prior to completion of the applicable measurement period, as required. During the three months ended March 29, 2019, we recorded certain adjustments to the preliminary purchase price allocation of acquisitions that closed during 2018 which resulted in a net increase of $31.8 million to goodwill. Advanced Sterilization Products We entered into a purchase agreement, effective June 6, 2018, with Ethicon, Inc., a subsidiary of Johnson & Johnson, to purchase its Advanced Sterilization Products (“ASP”) business for approximately $2.7 billion in cash. The transaction was completed in accordance with the terms of the purchase agreement, and on April 1, 2019, we paid $2.7 billion in cash to acquire the ASP business. ASP is a leading global provider of innovative sterilization and disinfection solutions and pioneered low-temperature hydrogen peroxide sterilization technology. ASP’s products, which are sold globally, include the STERRAD system for sterilizing instruments and the EVOTECH and ENDOCLENS systems for endoscope reprocessing and cleaning. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 29, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 3. DISCONTINUED OPERATIONS Divestiture of A&S Business On October 1, 2018, we completed the split-off of four of our operating companies from the Automation & Specialty platform (the “A&S Business”) in a tax efficient Reverse Morris Trust transaction with Altra Industrial Motion Corp. (“Altra”). The total consideration received was $2.7 billion and consisted of (i) $1.3 billion through a fully-subscribed exchange offer, in which we accepted and subsequently retired 15,824,931 shares of our own common stock from our stockholders in exchange for the 35,000,000 shares of common stock of Stevens Holding Company, Inc., an entity created to hold the A&S Business; (ii) $1.0 billion in cash paid to us for the direct sales of certain assets and liabilities of the A&S Business; (iii) $250 million as part of a debt-for-debt exchange that reduced outstanding indebtedness of Fortive; and (iv) $150 million in cash paid to us by Steven’s Holding Company, Inc. as a dividend. We recognized an after-tax gain on the transaction of $1.9 billion . The accounting requirements for reporting the disposition of the A&S Business as a discontinued operation were met when the separation and merger were completed in the fourth quarter of 2018. Accordingly, the accompanying consolidated financial statements reflect this business as discontinued operations for all periods presented. We are providing certain support services to Altra under transition services agreements. The impact of these services on our consolidated condensed financial statements was immaterial. The key components of income from discontinued operations for the three month periods ended March 29, 2019 and March 30, 2018 were as follows ($ in millions): March 29, 2019 March 30, 2018 Sales $ 5.7 $ 248.5 Cost of sales (5.8 ) (144.0 ) Selling, general and administrative expenses — (35.2 ) Research and development expenses — (9.0 ) Gain on disposition of discontinued operations before income taxes 0.5 — Interest expense and other — (1.3 ) Earnings before income taxes 0.4 59.0 Income taxes — (11.8 ) Net earnings $ 0.4 $ 47.2 Interest expense related to the debt retired as part of the debt-for-debt exchange was allocated to discontinued operations for all periods prior to the disposition. The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in our accompanying Consolidated Condensed Balance Sheets as of March 29, 2019 and December 31, 2018 ($ in millions): March 29, 2019 December 31, 2018 ASSETS Trade accounts receivable, net $ 5.1 $ 4.2 Inventories — 4.4 Other current assets 21.2 21.4 Total current assets, discontinued operations $ 26.3 $ 30.0 LIABILITIES Current liabilities: Trade accounts payable $ 5.4 $ 9.2 Accrued expenses and other current liabilities 17.3 21.5 Total current liabilities, discontinued operations $ 22.7 $ 30.7 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 4. GOODWILL The following is a rollforward of our goodwill ($ in millions): Balance, December 31, 2018 $ 6,133.1 Foreign currency translation & other 35.9 Balance, March 29, 2019 $ 6,169.0 The carrying value of goodwill by segment is summarized as follows ($ in millions): March 29, 2019 December 31, 2018 Professional Instrumentation $ 4,927.3 $ 4,894.6 Industrial Technologies 1,241.7 1,238.5 Total goodwill $ 6,169.0 $ 6,133.1 We have not identified any triggering events which would have indicated a potential impairment of goodwill in the three months ended March 29, 2019 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 5. 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 29, 2019 Deferred compensation liabilities $ — $ 25.9 $ — $ 25.9 December 31, 2018 Deferred compensation liabilities $ — $ 20.8 $ — $ 20.8 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 29, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Current portion of long-term debt $ 1,055.4 $ 1,055.2 $ 455.6 $ 454.9 Long-term debt, net of current maturities $ 4,728.3 $ 4,889.9 $ 2,974.7 $ 2,867.5 As of March 29, 2019 and December 31, 2018 , the current portion of long-term debt and long-term debt, net of current maturities were categorized as Level 1. |
Financing and Capital
Financing and Capital | 3 Months Ended |
Mar. 29, 2019 | |
Debt Disclosure [Abstract] | |
Financing and Capital | NOTE 6. FINANCING AND CAPITAL The carrying value of the components of our long-term debt were as follows ($ in millions): March 29, 2019 December 31, 2018 U.S. dollar-denominated commercial paper $ 834.0 $ 390.1 Euro-denominated commercial paper 264.2 270.1 Delayed-draw term loan due 2019 — 400.0 Delayed-draw term loan due 2020 1,000.0 — Yen variable interest rate term loan due 2022 124.4 125.7 1.80% senior unsecured notes due 2019 55.4 55.6 2.35% senior unsecured notes due 2021 747.3 747.0 3.15% senior unsecured notes due 2026 892.2 891.9 4.30% senior unsecured notes due 2046 546.9 546.9 0.875% senior convertible notes due 2022 1,316.9 — Other 2.4 3.0 Long-term debt 5,783.7 3,430.3 Less: current portion of long-term debt 1,055.4 455.6 Long-term debt, net of current maturities $ 4,728.3 $ 2,974.7 Unamortized debt discounts, premiums and issuance costs of $137.7 million and $17.0 million as of March 29, 2019 and December 31, 2018 , respectively, are netted against the aggregate principal amounts of the components of debt in the table above. Refer to Note 10 of our 2018 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 $2.0 billion senior unsecured revolving credit facility that expires on November 30, 2023 (the “Revolving Credit Facility”) which can also be used for working capital and other general corporate purposes. As of March 29, 2019 , no borrowings were outstanding under the Revolving Credit Facility. Convertible Senior Notes On February 22, 2019, we issued $1.4 billion in aggregate principal amount of our 0.875% Convertible Senior Notes due 2022 (the “Convertible Notes”), including $187.5 million in aggregate principal amount resulting from an exercise in full of an over-allotment option. The Convertible Notes were sold in a private placement to certain initial purchasers for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The Convertible Notes are fully and unconditionally guaranteed, jointly and severally, on an unsecured basis, by four of our wholly-owned domestic subsidiaries (the “Guarantees”). Under the Indenture, the Convertible Notes are our senior unsecured obligations, and the Convertible Notes and the Guarantees rank equally in right of payment with all of our and the guarantors’ existing and future liabilities that are not subordinated, but effectively rank junior to any of our and the guarantors secured indebtedness to the extent of the value of the assets securing such indebtedness. In addition, the Convertible Notes are structurally subordinated to all of the existing and future obligations, including trade payables, of our subsidiaries that do not guarantee the Convertible Notes. The Convertible Notes bear interest at a rate of 0.875% per year, payable semiannually in arrears on February 15 and August 15 of each year, beginning on August 15, 2019. The Convertible Notes mature on February 15, 2022, unless earlier repurchased or converted in accordance with their terms prior to such date. The Convertible Notes are convertible into shares of our common stock at an initial conversion rate of 9.3777 shares per $1,000 principal amount of Convertible Notes (which is equivalent to an initial conversion price of $106.64 per share), subject to adjustment upon the occurrence of certain events. The initial conversion price represents a premium of approximately 32.5% to the $80.48 per share closing price of our common stock on February 19, 2019. Upon conversion of the Convertible Notes, holders will receive cash, shares of our common stock, or a combination thereof, at Fortive’s election. Our current intention is to settle such conversions through cash up to the principal amount of the converted Convertible Notes and, if applicable, through shares of our common stock for conversion value, if any, in excess of the principal amount of the converted Convertible Notes. Of the $1.4 billion in proceeds received from the issuance of the Convertible Notes, $1.3 billion was classified as debt and $102.2 million was classified as equity, using an assumed effective interest rate of 3.38% . Debt issuance costs of $24.3 million were proportionately allocated to debt and equity. We recognized $5.5 million in interest expense during the three months ended March 29, 2019 , of which $1.3 million related to the contractual coupon rate of 0.875% and $0.9 million was attributable to the amortization of debt issuance costs. The discount at issuance was $102.2 million and is being amortized over a three -year period. The unamortized discount at March 29, 2019 was $99.0 million . Prior to November 15, 2021, the Convertible Notes will be convertible only upon the occurrence of certain events and will be convertible thereafter at any time until the close of business on the business day immediately preceding the maturity date of the Convertible Notes. The conversion rate is subject to customary anti-dilution adjustments. If certain corporate events described in the Indenture occur prior to the maturity date, the conversion rate will be increased for a holder that elects to convert its Convertible Notes in connection with such corporate event in certain circumstances. The Convertible Notes are not redeemable prior to maturity, and no sinking fund is provided for the Convertible Notes. If we undergo a “fundamental change,” as defined in the Indenture, subject to certain conditions, holders may require us to repurchase for cash all or any portion of their Convertible Notes. The fundamental change purchase price will be 100% of the principal amount of the Convertible Notes to be repurchased plus any accrued and unpaid additional interest up to but excluding the fundamental change repurchase date. The Indenture contains customary terms and covenants, including that upon certain events of default occurring and continuing, either the Trustee or the holders of at least 25% in aggregate principal amount of the outstanding Convertible Notes may declare 100% of the principal of, and accrued and unpaid interest, if any, on all the Convertible Notes to be due and payable. We used the net proceeds from the offering to fund a portion of the cash consideration payable for, and certain costs associated with, our acquisition of ASP. In connection with this offering of the Convertible Notes, on February 21, 2019, we entered into amendments to the credit facility agreement associated with our delayed-draw term loan due 2019 dated as of August 22, 2018, and our Credit Agreement, dated as of November 30, 2018, to exclude the Guarantees from the limitations on subsidiary indebtedness under the Agreements. Delayed-Draw Term Loan Due 2020 On March 1, 2019, we entered into a credit facility agreement that provides for a 364 -day delayed-draw term loan facility (“2020 Delayed-Draw Term Loan”) in an aggregate principal amount of $1.0 billion . On March 20, 2019, we drew down the full $1.0 billion available under the 2020 Delayed-Draw Term Loan in order to fund, in part, the ASP Acquisition. The 2020 Delayed-Draw Term Loan bears interest at a variable rate equal to the London inter-bank offered rate plus a ratings based margin currently at 75 basis points. As of March 29, 2019, borrowings under this facility bore an interest rate of 3.24% per annum. The 2020 Delayed-Draw Term Loan is prepayable at our option, and we are not permitted to re-borrow once the term loan is repaid. The terms and conditions, including covenants, applicable to the 2020 Delayed-Draw Term Loan are substantially similar to those applicable to the Revolving Credit Facility. Commercial Paper The details of our Commercial Paper Programs as of March 29, 2019 are as follows ($ in millions): Carrying value Annual effective rate Weighted average remaining maturity (in days) U.S. dollar-denominated commercial paper $ 834.0 2.82 % 16 Euro-denominated commercial paper $ 264.2 (0.10 )% 78 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 29, 2019 , we were in compliance with all of our covenants. Repayments On February 28, 2019, we prepaid the remaining $400.0 million |
Leases
Leases | 3 Months Ended |
Mar. 29, 2019 | |
Leases [Abstract] | |
Leases | NOTE 7. LEASES In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use (“ROU”) asset and a lease liability for all leases with terms greater than 12 months and also requires disclosures by lessees and lessors about the amount, timing and uncertainty of cash flows arising from leases. Subsequent to the issuance of Topic 842, the FASB clarified the guidance through several ASUs; hereinafter the collection of lease guidance is referred to as “ASC 842”. On January 1, 2019, we adopted ASC 842 using the modified retrospective transition method for all lease arrangements at the beginning of the period of adoption. Results for reporting periods beginning January 1, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 840, Leases . The standard had a material impact on our Consolidated Condensed Balance Sheet but had no impact on our consolidated net earnings and cash flows. The most significant impact of adopting ASC 842 was the recognition of the ROU asset and lease liabilities for operating leases, which are presented in the following three line items on the Consolidated Condensed Balance Sheet: (i) operating lease right-of-use asset; (ii) current operating lease liabilities; and (iii) operating lease liabilities. We elected the package of practical expedients for leases that commenced before the effective date of ASC 842 whereby we elected to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. In addition, we have lease agreements with lease and non-lease components and we have elected the practical expedient for all underlying asset classes and account for them as a single lease component. Our finance lease and lessor arrangements are immaterial. We determine if an arrangement is a lease at inception. We have operating leases for office space, warehouses, distribution centers, research and development facilities, manufacturing locations, and certain equipment, primarily automobiles. Many leases include one or more options to renew, some of which include options to extend the leases for up to 15 years , and some of which include options to terminate the leases in less than one year . We considered options to renew in our lease terms and measurement of right-of-use assets and lease liabilities if we determined they were reasonably certain to be exercised. For the three months ended March 29, 2019 , operating lease cost was $17.8 million . Short-term and variable lease cost, and cost for finance leases were immaterial for the three months ended March 29, 2019 . During the three-month period ended March 29, 2019, cash paid for operating leases included in operating cash flows was $15.8 million . ROU assets obtained in exchange for operating lease obligations were immaterial for the three months ended March 29, 2019 . The following table presents the maturity of our operating lease liabilities as of March 29, 2019 ($ in millions): Remainder of 2019 $ 41.8 2020 41.1 2021 31.7 2022 21.9 2023 11.7 Thereafter 40.7 Total lease payments 188.9 Less: imputed interest (20.5 ) Total lease liabilities $ 168.4 As previously disclosed in our 2018 Annual Report on Form 10-K and under Topic 840, future minimum lease payments for operating leases having initial or remaining noncancelable lease terms in excess of one year would have been as follows: 2019 $ 54.2 2020 41.2 2021 32.4 2022 24.0 2023 13.5 Thereafter 16.1 Total lease payments $ 181.4 As of March 29, 2019, the weighted average lease term of our operating leases was 6.3 years and the weighted average discount rate of our operating leases was 3.4% . We primarily use our incremental borrowing rate as the discount rate for our operating leases, as we are generally unable to determine the interest rate implicit in the lease. As of March 29, 2019, we entered into operating leases for which the lease term had not yet commenced. These operating leases will commence in 2019 with lease terms between 1 and 10 years with fixed payments over the non-cancelable lease terms of $3.7 million |
Sales
Sales | 3 Months Ended |
Mar. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Sales | NOTE 8. SALES 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. Product Sales include revenues from the sale of products and equipment, which includes our software as a service product offerings and equipment rentals. Service Sales includes revenues from extended warranties, post-contract customer support (“PCS”), maintenance contracts or services, contract labor to perform ongoing service at a customer location, and services related to previously sold products. 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 29, 2019 and December 31, 2018 . Contract Costs — We incur direct incremental costs to obtain certain contracts, typically sales-related commissions and costs associated with assets used by our customers in certain service arrangements. Deferred sales-related commissions are generally not capitalized as the amortization period is 1 year or less, and we elected to use the practical expedient to expense these sales commissions as incurred. As of March 29, 2019, we had $139.2 million in net revenue-related contract assets related to certain service arrangements. Our revenue-related contract assets at December 31, 2018 were $144.4 million , the majority of which were recorded in property, plant and equipment on the Consolidated Condensed Balance Sheet. These assets have estimated useful lives between 3 and 5 years . Impairment losses recognized on our revenue-related contract assets were immaterial in the three months ended March 29, 2019 . Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to PCS and extended warranty sales, where in most cases we receive up-front payment and recognize revenue over the support term. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The noncurrent portion of deferred revenue is included in other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets. Our contract liabilities consisted of the following ($ in millions): March 29, 2019 December 31, 2018 Deferred revenue - current $ 306.2 $ 288.1 Deferred revenue - noncurrent 97.3 92.6 Total contract liabilities $ 403.5 $ 380.7 In the three months ended March 29, 2019 , we recognized $114.3 million of revenue related to our contract liabilities at December 31, 2018 . The change in our contract liabilities from December 31, 2018 to March 29, 2019 was primarily due to the timing of cash receipts and sales of post-contract support and extended warranty services. Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, noncancelable orders, with expected delivery dates to customers greater than one year from March 29, 2019 , for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below. The aggregate performance obligations attributable to each of our segments is as follows ($ in millions): March 29, 2019 Professional Instrumentation $ 147.2 Industrial Technologies 408.9 Total remaining performance obligations $ 556.1 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 75 percent within the next three years and substantially all within four years . Disaggregation of Revenue We disaggregate revenue from contracts with customers by sales of products and services, 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 29, 2019 is presented as follows ($ in millions): Total Professional Instrumentation Industrial Technologies Sales: Sales of products $ 1,405.1 $ 825.8 $ 579.3 Sales of services 187.8 121.5 66.3 Total $ 1,592.9 $ 947.3 $ 645.6 Geographic: United States $ 887.6 $ 486.0 $ 401.6 China 150.0 128.4 21.6 Germany 57.6 32.4 25.2 All other (each country individually less than 5% of total sales) 497.7 300.5 197.2 Total $ 1,592.9 $ 947.3 $ 645.6 Major Products Group: Professional tools and equipment $ 1,226.9 $ 780.3 $ 446.6 Industrial automation, controls and sensors 130.0 100.0 30.0 Franchise distribution 169.0 — 169.0 All other 67.0 67.0 — Total $ 1,592.9 $ 947.3 $ 645.6 End markets: Direct sales: Retail fueling (a) $ 388.2 $ — $ 388.2 Industrial & Manufacturing 109.6 96.8 12.8 Vehicle repair (a) 153.8 — 153.8 Utilities & Power 49.6 49.6 — Other 463.0 391.1 71.9 Total direct sales 1,164.2 537.5 626.7 Distributors (a) 428.7 409.8 18.9 Total $ 1,592.9 $ 947.3 $ 645.6 (a) Retail fueling and vehicle repair include sales to these end markets made through third-party distributors. Total distributor sales for the three months ended March 29, 2019 was $745.2 million. Disaggregation of revenue for the three months ended March 30, 2018 is presented as follows ($ in millions): Total Professional Instrumentation Industrial Technologies Sales: Sales of products $ 1,332.4 $ 776.6 $ 555.8 Sales of services 159.8 95.1 64.7 Total $ 1,492.2 $ 871.7 $ 620.5 Geographic: United States $ 788.7 $ 406.4 $ 382.3 China 143.6 125.1 18.5 Germany 58.3 35.9 22.4 All other (each country individually less than 5% of total sales) 501.6 304.3 197.3 Total $ 1,492.2 $ 871.7 $ 620.5 Major Products Group: Professional tools and equipment $ 1,119.2 $ 704.7 $ 414.5 Industrial automation, controls and sensors 138.0 105.0 33.0 Franchise distribution 173.0 — 173.0 All other 62.0 62.0 — Total $ 1,492.2 $ 871.7 $ 620.5 End markets: Direct sales: Retail fueling (a) $ 348.3 $ — $ 348.3 Industrial & Manufacturing 105.5 90.4 15.1 Vehicle repair (a) 158.8 — 158.8 Utilities & Power 55.4 55.4 — Other 381.9 301.2 80.7 Total direct sales 1,049.9 447.0 602.9 Distributors (a) 442.3 424.7 17.6 Total $ 1,492.2 $ 871.7 $ 620.5 (a) Retail fueling and vehicle repair include sales to these end markets made through third-party distributors. Total distributor sales for the three months ended March 30, 2018 was $728.1 million. |
Pension Plans
Pension Plans | 3 Months Ended |
Mar. 29, 2019 | |
Retirement Benefits [Abstract] | |
Pension Plans | NOTE 9. PENSION PLANS For a full description of our noncontributory defined benefit pension plans refer to Note 11 of our 2018 Annual Report on Form 10-K . The following sets forth the components of our net periodic pension costs associated with our noncontributory defined benefit pension plans ($ in millions): Three Months Ended March 29, 2019 March 30, 2018 U.S. Pension Benefits: Interest cost $ 0.4 $ 0.3 Expected return on plan assets (0.3 ) (0.4 ) Net periodic pension cost $ 0.1 $ (0.1 ) Non-U.S. Pension Benefits: Service cost $ 0.3 $ 0.3 Interest cost 1.4 1.4 Expected return on plan assets (1.4 ) (1.5 ) Amortization of net loss 0.7 0.7 Net curtailment and settlement loss recognized — 0.2 Net periodic pension cost $ 1.0 $ 1.1 We report 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 are reported 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. Employer Contributions During 2019 , our cash contribution requirements for our non-U.S. defined benefit pension plans are expected to be approximately $9.6 million . We do not expect to make contributions to the U.S. plan during 2019 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10. INCOME TAXES Our effective tax rate for the three months ended March 29, 2019 was 14.8% as compared to 15.7% for the three months ended March 30, 2018 . The year-over-year decrease was due primarily to favorable impacts of certain federal and international tax benefits. Our effective tax rate for 2019 and 2018 differs from the U.S. federal statutory rate of 21% |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 29, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | NOTE 11. STOCK-BASED COMPENSATION Our stock-based compensation program (the “Stock Plan”) provides for the grant of stock appreciation rights, performance stock units, restricted stock units, restricted stock awards and performance stock awards (collectively, “Stock Awards”), stock options or any other stock-based award. As of March 29, 2019 , approximately 20 million shares of our common stock were available for subsequent issuance under the Stock Plan. For a full description of our stock-based compensation program refer to Note 17 of our 2018 Annual Report on Form 10-K . Stock-based Compensation Expense Stock-based compensation has been recognized as a component of selling, general & administrative expenses in the accompanying Consolidated Condensed Statements of Earnings based on the portion of the awards that are ultimately expected to vest. The following summarizes the components of our stock-based compensation expense under the Stock Plan ($ in millions): Three Months Ended March 29, 2019 March 30, 2018 Stock Awards: Pretax compensation expense $ 7.8 $ 6.5 Income tax benefit (1.7 ) (1.4 ) Stock Award expense, net of income taxes 6.1 5.1 Stock options: Pretax compensation expense 5.1 4.5 Income tax benefit (1.1 ) (0.9 ) Stock option expense, net of income taxes 4.0 3.6 Total stock-based compensation: Pretax compensation expense 12.9 11.0 Income tax benefit (2.8 ) (2.3 ) Total stock-based compensation expense, net of income taxes $ 10.1 $ 8.7 On February 22, 2019, the Board of Directors granted 1.7 million stock options and 550 thousand stock awards at market value to employees. The following summarizes the unrecognized compensation cost for the Stock Plan awards as of March 29, 2019 . 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 $ 77.2 Stock options 70.4 Total unrecognized compensation cost $ 147.6 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 12. COMMITMENTS AND CONTINGENCIES For a description of our litigation and contingencies, refer to Notes 15 and 16 of our 2018 Annual Report on Form 10-K . 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, 2018 $ 72.1 Accruals for warranties issued during the period 17.9 Settlements made (23.0 ) Effect of foreign currency translation 0.2 Balance, March 29, 2019 $ 67.2 |
Net Earnings Per Share
Net Earnings Per Share | 3 Months Ended |
Mar. 29, 2019 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | NOTE 13. NET EARNINGS PER SHARE Basic net earnings per share (“EPS”) is calculated by dividing net earnings attributable to common stockholders 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 under the treasury stock method, except where the inclusion of such shares would have an anti-dilutive impact. There were 1.7 million and 1.5 million anti-dilutive options excluded from the diluted EPS calculation for the three months ended March 29, 2019 and March 30, 2018 , respectively. As described in Note 6, upon conversion of the Convertible Notes, holders will receive cash, shares of our common stock, or a combination thereof, at our election. Our intention is to settle such conversions through cash up to the principal amount of the Convertible Notes and, if applicable, through shares of our common stock for conversion value, if any, in excess of the principal amount of the Convertible Notes. We believe we have the ability to settle these obligations as intended, and therefore we have accounted for the conversion features under the treasury stock method in our calculation of EPS. Given the price of our common stock is below the conversion price, the Convertible Notes had no impact on our earnings per share for the three months ended March 29, 2019. The impact of our MCPS calculated under the if-converted method were anti-dilutive, and as such 16.7 million shares were excluded from the diluted EPS calculation for the three months ended March 29, 2019 . 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): Three Months Ended March 29, 2019 March 30, 2018 Numerator Net earnings from continuing operations $ 164.0 $ 214.0 Mandatory convertible preferred stock cumulative dividends (17.3 ) — Net earnings attributable to common stockholders from continuing operations $ 146.7 $ 214.0 Denominator Weighted average common shares outstanding used in basic earnings per share 335.1 348.6 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive Stock Awards 4.4 5.8 Weighted average common shares outstanding used in diluted earnings per share 339.5 354.4 Net earnings from continuing operations per common share - Basic $ 0.44 $ 0.61 Net earnings from continuing operations per common share - Diluted $ 0.43 $ 0.61 We declared and paid cash dividends per common share and per MCPS during the periods presented as follows: Dividend Per Common Share Amount ($ in millions) Dividend per MCPS Amount ($ in millions) 2019: First quarter $ 0.07 $ 23.4 $ 12.50 $ 17.3 2018: First quarter $ 0.07 $ 24.3 $ — $ — On April 11, 2019, we declared a regular quarterly cash dividend of $0.07 per share payable on June 28, 2019, to common stockholders of record on May 31, 2019 and a regular quarterly cash dividend of $12.50 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 29, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 14. SEGMENT INFORMATION We report our results in two separate business segments consisting of Professional Instrumentation and Industrial Technologies. When determining the reportable segments, we aggregated operating segments based on their similar economic and operating characteristics. Operating profit amounts in the Other category consist of unallocated corporate costs and other costs not considered part of our evaluation of reportable segment operating performance. Our segment results are as follows ($ in millions): Three Months Ended March 29, 2019 March 30, 2018 Sales: Professional Instrumentation $ 947.3 $ 871.7 Industrial Technologies 645.6 620.5 Total $ 1,592.9 $ 1,492.2 Operating Profit: Professional Instrumentation $ 136.2 $ 206.4 Industrial Technologies 105.3 94.2 Other (24.2 ) (22.7 ) Total Operating Profit 217.3 277.9 Interest expense, net (25.3 ) (23.3 ) Other non-operating income (expenses), net 0.4 (0.7 ) Earnings from continuing operations before income taxes $ 192.4 $ 253.9 |
Business Overview (Policies)
Business Overview (Policies) | 3 Months Ended |
Mar. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 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. We have designated our Euro-denominated commercial paper and ¥13.8 billion senior unsecured term facility loan as net investment hedges of our investment in certain foreign operations. Accordingly, foreign currency transaction gains or losses on the debt are deferred in the foreign currency translation component of accumulated other comprehensive income (loss) (“accumulated OCI”) as an offset to the foreign currency translation adjustments on our investments in foreign subsidiaries. We recognized gains of $7.2 million for the three months ended March 29, 2019 and losses of $14.8 million for the three months ended March 30, 2018 in other comprehensive income related to the net investment hedge. Any amounts deferred in accumulated OCI will remain until the hedged investment is sold or substantially liquidated. We recorded no ineffectiveness from our net investment hedges during the three months ended March 29, 2019 and March 30, 2018 |
Recently Issued 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 |
Sales | 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. Product Sales include revenues from the sale of products and equipment, which includes our software as a service product offerings and equipment rentals. Service Sales includes revenues from extended warranties, post-contract customer support (“PCS”), maintenance contracts or services, contract labor to perform ongoing service at a customer location, and services related to previously sold products. 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 29, 2019 and December 31, 2018 . Contract Costs — We incur direct incremental costs to obtain certain contracts, typically sales-related commissions and costs associated with assets used by our customers in certain service arrangements. Deferred sales-related commissions are generally not capitalized as the amortization period is 1 year or less, and we elected to use the practical expedient to expense these sales commissions as incurred. As of March 29, 2019, we had $139.2 million in net revenue-related contract assets related to certain service arrangements. Our revenue-related contract assets at December 31, 2018 were $144.4 million , the majority of which were recorded in property, plant and equipment on the Consolidated Condensed Balance Sheet. These assets have estimated useful lives between 3 and 5 years . Impairment losses recognized on our revenue-related contract assets were immaterial in the three months ended March 29, 2019 . Contract Liabilities — Our remaining performance obligations represent the transaction price of firm, noncancelable orders, with expected delivery dates to customers greater than one year from March 29, 2019 |
Business Overview (Tables)
Business Overview (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassification of Accumulated Other Comprehensive Income | The changes in accumulated other comprehensive income (loss) by component are summarized below ($ in millions): Foreign currency translation adjustments Pension adjustments (b) Total For the Three Months Ended March 29, 2019: Balance, December 31, 2018 $ (29.3 ) $ (57.3 ) $ (86.6 ) Other comprehensive income (loss) before reclassifications, net of income taxes 16.7 — 16.7 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 0.7 (a) 0.7 Income tax impact — (0.2 ) (c) (0.2 ) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.5 0.5 Net current period other comprehensive income (loss), net of income taxes 16.7 0.5 17.2 Balance, March 29, 2019 $ (12.6 ) $ (56.8 ) $ (69.4 ) 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 ) (c) (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 (a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 9 for additional details). (b) Includes balances relating to defined benefit plans, supplemental executive retirement plans and other postretirement employee benefit plans. (c) We did not elect to reclassify the income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Key Components of Discontinued Operations | The key components of income from discontinued operations for the three month periods ended March 29, 2019 and March 30, 2018 were as follows ($ in millions): March 29, 2019 March 30, 2018 Sales $ 5.7 $ 248.5 Cost of sales (5.8 ) (144.0 ) Selling, general and administrative expenses — (35.2 ) Research and development expenses — (9.0 ) Gain on disposition of discontinued operations before income taxes 0.5 — Interest expense and other — (1.3 ) Earnings before income taxes 0.4 59.0 Income taxes — (11.8 ) Net earnings $ 0.4 $ 47.2 March 29, 2019 December 31, 2018 ASSETS Trade accounts receivable, net $ 5.1 $ 4.2 Inventories — 4.4 Other current assets 21.2 21.4 Total current assets, discontinued operations $ 26.3 $ 30.0 LIABILITIES Current liabilities: Trade accounts payable $ 5.4 $ 9.2 Accrued expenses and other current liabilities 17.3 21.5 Total current liabilities, discontinued operations $ 22.7 $ 30.7 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following is a rollforward of our goodwill ($ in millions): Balance, December 31, 2018 $ 6,133.1 Foreign currency translation & other 35.9 Balance, March 29, 2019 $ 6,169.0 The carrying value of goodwill by segment is summarized as follows ($ in millions): March 29, 2019 December 31, 2018 Professional Instrumentation $ 4,927.3 $ 4,894.6 Industrial Technologies 1,241.7 1,238.5 Total goodwill $ 6,169.0 $ 6,133.1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
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 29, 2019 Deferred compensation liabilities $ — $ 25.9 $ — $ 25.9 December 31, 2018 Deferred compensation liabilities $ — $ 20.8 $ — $ 20.8 |
Carrying Amounts and Fair Values of Financial Instruments | The carrying amount and fair value of financial instruments are as follows ($ in millions): March 29, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Current portion of long-term debt $ 1,055.4 $ 1,055.2 $ 455.6 $ 454.9 Long-term debt, net of current maturities $ 4,728.3 $ 4,889.9 $ 2,974.7 $ 2,867.5 |
Financing and Capital (Tables)
Financing and Capital (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The details of our Commercial Paper Programs as of March 29, 2019 are as follows ($ in millions): Carrying value Annual effective rate Weighted average remaining maturity (in days) U.S. dollar-denominated commercial paper $ 834.0 2.82 % 16 Euro-denominated commercial paper $ 264.2 (0.10 )% 78 March 29, 2019 December 31, 2018 U.S. dollar-denominated commercial paper $ 834.0 $ 390.1 Euro-denominated commercial paper 264.2 270.1 Delayed-draw term loan due 2019 — 400.0 Delayed-draw term loan due 2020 1,000.0 — Yen variable interest rate term loan due 2022 124.4 125.7 1.80% senior unsecured notes due 2019 55.4 55.6 2.35% senior unsecured notes due 2021 747.3 747.0 3.15% senior unsecured notes due 2026 892.2 891.9 4.30% senior unsecured notes due 2046 546.9 546.9 0.875% senior convertible notes due 2022 1,316.9 — Other 2.4 3.0 Long-term debt 5,783.7 3,430.3 Less: current portion of long-term debt 1,055.4 455.6 Long-term debt, net of current maturities $ 4,728.3 $ 2,974.7 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Leases [Abstract] | |
Maturities of Operating Lease Liabilities | The following table presents the maturity of our operating lease liabilities as of March 29, 2019 ($ in millions): Remainder of 2019 $ 41.8 2020 41.1 2021 31.7 2022 21.9 2023 11.7 Thereafter 40.7 Total lease payments 188.9 Less: imputed interest (20.5 ) Total lease liabilities $ 168.4 |
Schedule of Future Minimum Rental Payments for Operating Leases | As previously disclosed in our 2018 Annual Report on Form 10-K and under Topic 840, future minimum lease payments for operating leases having initial or remaining noncancelable lease terms in excess of one year would have been as follows: 2019 $ 54.2 2020 41.2 2021 32.4 2022 24.0 2023 13.5 Thereafter 16.1 Total lease payments $ 181.4 |
Sales (Tables)
Sales (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract liabilities | Our contract liabilities consisted of the following ($ in millions): March 29, 2019 December 31, 2018 Deferred revenue - current $ 306.2 $ 288.1 Deferred revenue - noncurrent 97.3 92.6 Total contract liabilities $ 403.5 $ 380.7 |
Remaining performance obligations | The aggregate performance obligations attributable to each of our segments is as follows ($ in millions): March 29, 2019 Professional Instrumentation $ 147.2 Industrial Technologies 408.9 Total remaining performance obligations $ 556.1 |
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 Sales: Sales of products $ 1,332.4 $ 776.6 $ 555.8 Sales of services 159.8 95.1 64.7 Total $ 1,492.2 $ 871.7 $ 620.5 Geographic: United States $ 788.7 $ 406.4 $ 382.3 China 143.6 125.1 18.5 Germany 58.3 35.9 22.4 All other (each country individually less than 5% of total sales) 501.6 304.3 197.3 Total $ 1,492.2 $ 871.7 $ 620.5 Major Products Group: Professional tools and equipment $ 1,119.2 $ 704.7 $ 414.5 Industrial automation, controls and sensors 138.0 105.0 33.0 Franchise distribution 173.0 — 173.0 All other 62.0 62.0 — Total $ 1,492.2 $ 871.7 $ 620.5 End markets: Direct sales: Retail fueling (a) $ 348.3 $ — $ 348.3 Industrial & Manufacturing 105.5 90.4 15.1 Vehicle repair (a) 158.8 — 158.8 Utilities & Power 55.4 55.4 — Other 381.9 301.2 80.7 Total direct sales 1,049.9 447.0 602.9 Distributors (a) 442.3 424.7 17.6 Total $ 1,492.2 $ 871.7 $ 620.5 (a) Retail fueling and vehicle repair include sales to these end markets made through third-party distributors. Total distributor sales for the three months ended March 30, 2018 was $728.1 million. March 29, 2019 is presented as follows ($ in millions): Total Professional Instrumentation Industrial Technologies Sales: Sales of products $ 1,405.1 $ 825.8 $ 579.3 Sales of services 187.8 121.5 66.3 Total $ 1,592.9 $ 947.3 $ 645.6 Geographic: United States $ 887.6 $ 486.0 $ 401.6 China 150.0 128.4 21.6 Germany 57.6 32.4 25.2 All other (each country individually less than 5% of total sales) 497.7 300.5 197.2 Total $ 1,592.9 $ 947.3 $ 645.6 Major Products Group: Professional tools and equipment $ 1,226.9 $ 780.3 $ 446.6 Industrial automation, controls and sensors 130.0 100.0 30.0 Franchise distribution 169.0 — 169.0 All other 67.0 67.0 — Total $ 1,592.9 $ 947.3 $ 645.6 End markets: Direct sales: Retail fueling (a) $ 388.2 $ — $ 388.2 Industrial & Manufacturing 109.6 96.8 12.8 Vehicle repair (a) 153.8 — 153.8 Utilities & Power 49.6 49.6 — Other 463.0 391.1 71.9 Total direct sales 1,164.2 537.5 626.7 Distributors (a) 428.7 409.8 18.9 Total $ 1,592.9 $ 947.3 $ 645.6 (a) Retail fueling and vehicle repair include sales to these end markets made through third-party distributors. Total distributor sales for the three months ended March 29, 2019 was $745.2 million. |
Pension Plans (Tables)
Pension Plans (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Pension Costs | The following sets forth the components of our net periodic pension costs associated with our noncontributory defined benefit pension plans ($ in millions): Three Months Ended March 29, 2019 March 30, 2018 U.S. Pension Benefits: Interest cost $ 0.4 $ 0.3 Expected return on plan assets (0.3 ) (0.4 ) Net periodic pension cost $ 0.1 $ (0.1 ) Non-U.S. Pension Benefits: Service cost $ 0.3 $ 0.3 Interest cost 1.4 1.4 Expected return on plan assets (1.4 ) (1.5 ) Amortization of net loss 0.7 0.7 Net curtailment and settlement loss recognized — 0.2 Net periodic pension cost $ 1.0 $ 1.1 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
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 29, 2019 March 30, 2018 Stock Awards: Pretax compensation expense $ 7.8 $ 6.5 Income tax benefit (1.7 ) (1.4 ) Stock Award expense, net of income taxes 6.1 5.1 Stock options: Pretax compensation expense 5.1 4.5 Income tax benefit (1.1 ) (0.9 ) Stock option expense, net of income taxes 4.0 3.6 Total stock-based compensation: Pretax compensation expense 12.9 11.0 Income tax benefit (2.8 ) (2.3 ) Total stock-based compensation expense, net of income taxes $ 10.1 $ 8.7 |
Schedule of Future Compensation | Future compensation amounts will be adjusted for any changes in estimated forfeitures ($ in millions): Stock Awards $ 77.2 Stock options 70.4 Total unrecognized compensation cost $ 147.6 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
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, 2018 $ 72.1 Accruals for warranties issued during the period 17.9 Settlements made (23.0 ) Effect of foreign currency translation 0.2 Balance, March 29, 2019 $ 67.2 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
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): Three Months Ended March 29, 2019 March 30, 2018 Numerator Net earnings from continuing operations $ 164.0 $ 214.0 Mandatory convertible preferred stock cumulative dividends (17.3 ) — Net earnings attributable to common stockholders from continuing operations $ 146.7 $ 214.0 Denominator Weighted average common shares outstanding used in basic earnings per share 335.1 348.6 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive Stock Awards 4.4 5.8 Weighted average common shares outstanding used in diluted earnings per share 339.5 354.4 Net earnings from continuing operations per common share - Basic $ 0.44 $ 0.61 Net earnings from continuing operations per common share - Diluted $ 0.43 $ 0.61 |
Dividends Declared | We declared and paid cash dividends per common share and per MCPS during the periods presented as follows: Dividend Per Common Share Amount ($ in millions) Dividend per MCPS Amount ($ in millions) 2019: First quarter $ 0.07 $ 23.4 $ 12.50 $ 17.3 2018: First quarter $ 0.07 $ 24.3 $ — $ — |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Our segment results are as follows ($ in millions): Three Months Ended March 29, 2019 March 30, 2018 Sales: Professional Instrumentation $ 947.3 $ 871.7 Industrial Technologies 645.6 620.5 Total $ 1,592.9 $ 1,492.2 Operating Profit: Professional Instrumentation $ 136.2 $ 206.4 Industrial Technologies 105.3 94.2 Other (24.2 ) (22.7 ) Total Operating Profit 217.3 277.9 Interest expense, net (25.3 ) (23.3 ) Other non-operating income (expenses), net 0.4 (0.7 ) Earnings from continuing operations before income taxes $ 192.4 $ 253.9 |
Business Overview - Accumulated
Business Overview - Accumulated Other Comprehensive Income (Details) $ in Millions | 3 Months Ended | ||
Mar. 29, 2019USD ($) | Mar. 30, 2018USD ($) | Mar. 29, 2019JPY (¥) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gain (loss) in OCI related to the net investment hedge | $ 7.2 | $ (14.8) | |
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Equity, beginning of period | (86.6) | ||
Other comprehensive income (loss) before reclassifications, net of income taxes | 16.7 | 36.4 | |
Amounts reclassified from accumulated other comprehensive income (loss): | |||
Increase (decrease) | 0.7 | 0.9 | |
Income tax impact | (0.2) | (0.2) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0.5 | 0.7 | |
Total other comprehensive income, net of income taxes | 17.2 | 37.1 | |
Equity, end of period | (69.4) | ||
Foreign currency translation adjustments | |||
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Equity, beginning of period | (29.3) | 64 | |
Other comprehensive income (loss) before reclassifications, net of income taxes | 16.7 | 36.4 | |
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 | 16.7 | 36.4 | |
Equity, end of period | (12.6) | 100.4 | |
Pension adjustments | |||
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Equity, beginning of period | (57.3) | (71.6) | |
Other comprehensive income (loss) before reclassifications, net of income taxes | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss): | |||
Increase (decrease) | 0.7 | 0.9 | |
Income tax impact | (0.2) | (0.2) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0.5 | 0.7 | |
Total other comprehensive income, net of income taxes | 0.5 | 0.7 | |
Equity, end of period | (56.8) | (70.9) | |
Accumulated Other Comprehensive Income (Loss) | |||
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Equity, beginning of period | (86.6) | (7.6) | |
Amounts reclassified from accumulated other comprehensive income (loss): | |||
Total other comprehensive income, net of income taxes | 17.2 | 37.1 | |
Equity, end of period | $ (69.4) | $ 29.5 | |
Yen variable interest rate term loan due 2022 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Term loan facility, aggregate amount | ¥ | ¥ 13,800,000,000 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | Apr. 01, 2019 | Mar. 29, 2019 |
Business Acquisition [Line Items] | ||
Adjustments to purchase price allocation | $ 31.8 | |
Subsequent Event | Acquisitions, ASP | ||
Business Acquisition [Line Items] | ||
Purchase price | $ 2,700 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - A&S Business - Discontinued Operations $ in Millions | Oct. 01, 2018USD ($)companyshares | Dec. 31, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of operating segments | company | 4 | |
Consideration | $ 2,700 | |
Exchange offer | $ 1,300 | |
Consideration, number of shares (in shares) | shares | 15,824,931 | |
Cash paid to company for direct sales of assets and liabilities | $ 1,000 | |
Debt-for-debt exchange | 250 | |
Cash paid to company as a dividend | $ 150 | |
After tax gain on transaction | $ 1,900 | |
Stevens Holding Company, Inc. | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Stockholders right to exchange (in shares) | shares | 35,000,000 |
Discontinued Operations - Key C
Discontinued Operations - Key Components of Income and Major Classes of Assets and Liabilities from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 29, 2019 | Mar. 30, 2018 | Dec. 31, 2018 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Sales | $ 5.7 | $ 248.5 | |
Cost of sales | (5.8) | (144) | |
Selling, general and administrative expenses | 0 | (35.2) | |
Research and development expenses | 0 | (9) | |
Gain on disposition of discontinued operations before income taxes | 0.5 | 0 | |
Interest expense and other | 0 | (1.3) | |
Earnings before income taxes | 0.4 | 59 | |
Income taxes | 0 | (11.8) | |
Net earnings | 0.4 | $ 47.2 | |
ASSETS | |||
Trade accounts receivable, net | 5.1 | $ 4.2 | |
Inventories | 0 | 4.4 | |
Other current assets | 21.2 | 21.4 | |
Total current assets, discontinued operations | 26.3 | 30 | |
Current liabilities: | |||
Trade accounts payable | 5.4 | 9.2 | |
Accrued expenses and other current liabilities | 17.3 | 21.5 | |
Total current liabilities, discontinued operations | $ 22.7 | $ 30.7 |
Goodwill - Rollforward of Goodw
Goodwill - Rollforward of Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 29, 2019USD ($) | |
Goodwill [Roll Forward] | |
December 31, 2018 | $ 6,133.1 |
Foreign currency translation & other | 35.9 |
March 29, 2019 | $ 6,169 |
Goodwill - Goodwill by Segment
Goodwill - Goodwill by Segment (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 31, 2018 |
Goodwill [Line Items] | ||
Goodwill | $ 6,169 | $ 6,133.1 |
Professional Instrumentation | ||
Goodwill [Line Items] | ||
Goodwill | 4,927.3 | 4,894.6 |
Industrial Technologies | ||
Goodwill [Line Items] | ||
Goodwill | $ 1,241.7 | $ 1,238.5 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current portion of long-term debt, carrying amount | $ 1,055.4 | $ 455.6 |
Current portion of long-term debt, fair value | 1,055.2 | 454.9 |
Long-term debt, net of current maturities, carrying value | 4,728.3 | 2,974.7 |
Long-term debt, net of current maturities, fair value | 4,889.9 | 2,867.5 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liabilities | 25.9 | 20.8 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Market (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liabilities | 25.9 | 20.8 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liabilities | $ 0 | $ 0 |
Financing and Capital - Compone
Financing and Capital - Components of Debt (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Feb. 22, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 5,783.7 | $ 3,430.3 | |
Current portion of long-term debt | 1,055.4 | 455.6 | |
Long-term debt, net of current maturities | 4,728.3 | 2,974.7 | |
Other | |||
Debt Instrument [Line Items] | |||
Long-term debt | 2.4 | 3 | |
Commercial Paper | U.S. dollar-denominated commercial paper | |||
Debt Instrument [Line Items] | |||
Long-term debt | 834 | 390.1 | |
Commercial Paper | Euro-denominated commercial paper | |||
Debt Instrument [Line Items] | |||
Long-term debt | 264.2 | 270.1 | |
Senior Notes | 1.80% senior unsecured notes due 2019 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 55.4 | 55.6 | |
Interest rate, stated percentage | 1.80% | ||
Senior Notes | 2.35% senior unsecured notes due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 747.3 | 747 | |
Interest rate, stated percentage | 2.35% | ||
Senior Notes | 3.15% senior unsecured notes due 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 892.2 | 891.9 | |
Interest rate, stated percentage | 3.15% | ||
Senior Notes | 4.30% senior unsecured notes due 2046 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 546.9 | 546.9 | |
Interest rate, stated percentage | 4.30% | ||
Convertible Debt | 0.875% senior convertible notes due 2022 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,316.9 | 0 | |
Interest rate, stated percentage | 0.875% | 0.875% | |
Line of credit | Delayed-draw term loan due 2019 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | 400 | |
Line of credit | Delayed-draw term loan due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 1,000 | 0 | |
Line of credit | Yen variable interest rate term loan due 2022 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 124.4 | $ 125.7 |
Financing and Capital - Narrati
Financing and Capital - Narrative (Details) | Mar. 20, 2019USD ($) | Mar. 01, 2019USD ($) | Feb. 28, 2019USD ($) | Feb. 22, 2019USD ($)$ / shares | Feb. 19, 2019$ / shares | Mar. 29, 2019USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||||||
Debt discounts, premiums and issuance costs | $ 137,700,000 | $ 17,000,000 | |||||
Share closing price (in dollars per share) | $ / shares | $ 80.48 | ||||||
Payment of outstanding principal | $ 400,000,000 | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt term | 5 years | ||||||
Senior unsecured revolving credit facility | $ 2,000,000,000 | ||||||
Outstanding borrowings | 0 | ||||||
Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Interest expense | 5,500,000 | ||||||
0.875% senior convertible notes due 2022 | Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 1,400,000,000 | $ 1,300,000,000 | |||||
Interest rate, stated percentage | 0.875% | 0.875% | |||||
Amortization of Debt Issuance Costs | $ 900,000 | ||||||
Initial conversion price (in dollars per share) | $ / shares | $ 106.64 | ||||||
Conversion ratio | 0.093777 | ||||||
Threshold percentage of stock price trigger | 32.50% | ||||||
Proceeds from the issuance of Convertible Notes | 1,400,000,000 | ||||||
Discount at issuance | $ 102,200,000 | ||||||
Effective interest rate | 3.38% | ||||||
Debt Issuance Costs, Net | $ 24,300,000 | ||||||
Interest expense related to contractual coupon rate | $ 1,300,000 | ||||||
Discount amortization period | 3 years | ||||||
Unamortized discount | 102,200,000 | $ 99,000,000 | |||||
Senior Unsecured Notes due 2022, Over-Allotment Option | Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 187,500,000 | ||||||
Delayed-draw term loan due 2020 | Line of credit | |||||||
Debt Instrument [Line Items] | |||||||
Debt term | 364 days | ||||||
Long-term debt | $ 1,000,000,000 | ||||||
Proceeds from line of credit | $ 1,000,000,000 | ||||||
Interest rate at the end of the period | 3.24% | ||||||
Delayed-draw term loan due 2020 | Line of credit | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable interest rate | 0.75% | ||||||
Debt Instrument, Redemption, Period One | 0.875% senior convertible notes due 2022 | Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage | 100.00% | ||||||
Debt Instrument, Redemption, Period Two | 0.875% senior convertible notes due 2022 | Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage | 100.00% | ||||||
Amount outstanding percentage | 25.00% |
Financing and Capital - Commerc
Financing and Capital - Commercial Paper (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Carrying value | $ 5,783.7 | $ 3,430.3 |
Commercial Paper | U.S. dollar-denominated commercial paper | ||
Debt Instrument [Line Items] | ||
Carrying value | $ 834 | 390.1 |
Annual effective rate | 2.82% | |
Weighted average remaining maturity (in days) | 16 days | |
Commercial Paper | Euro-denominated commercial paper | ||
Debt Instrument [Line Items] | ||
Carrying value | $ 264.2 | $ 270.1 |
Annual effective rate | (0.10%) | |
Weighted average remaining maturity (in days) | 78 days |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 29, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | $ 17.8 |
Cash paid for operating leases | $ 15.8 |
Lease term | 6 years 3 months 18 days |
Weighted average discount rate | 3.40% |
Fixed payments of leases not yet commenced | $ 3.7 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term of leases not yet commenced | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Option to extend lease, period | 15 years |
Lease term of leases not yet commenced | 10 years |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturities (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2019 | $ 41.8 | |
2020 | 41.1 | |
2021 | 31.7 | |
2022 | 21.9 | |
2023 | 11.7 | |
Thereafter | 40.7 | |
Total lease payments | 188.9 | |
Less: imputed interest | (20.5) | |
Total lease liabilities | $ 168.4 | |
2019 | $ 54.2 | |
2020 | 41.2 | |
2021 | 32.4 | |
2022 | 24 | |
2023 | 13.5 | |
Thereafter | 16.1 | |
Total lease payments | $ 181.4 |
Sales - Contract Costs (Details
Sales - Contract Costs (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 31, 2018 |
Disaggregation of Revenue [Line Items] | ||
Net revenue-related contract assets | $ 139.2 | $ 144.4 |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Useful life | 3 years | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Useful life | 5 years | |
Deferred Sales Commissions | Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Useful life | 1 year |
Sales - Contract liabilities (D
Sales - Contract liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue - current | $ 306.2 | $ 288.1 |
Deferred revenue - noncurrent | 97.3 | 92.6 |
Total contract liabilities | 403.5 | $ 380.7 |
Contract liabilities, revenue recognized | $ 114.3 |
Sales - Revenue, Remaining Perf
Sales - Revenue, Remaining Performance Obligation (Details) $ in Millions | Mar. 29, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 556.1 |
Professional Instrumentation | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 147.2 |
Industrial Technologies | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 408.9 |
Sales - Remaining Performance O
Sales - Remaining Performance Obligation, Expected Timing (Details) | Mar. 29, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-03-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 40.00% |
Remaining performance obligation, expected timing | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 75.00% |
Remaining performance obligation, expected timing | 3 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-03-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 100.00% |
Remaining performance obligation, expected timing | 4 years |
Sales - Disaggregation of Reven
Sales - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Sales | $ 1,592.9 | $ 1,492.2 |
Retail fueling | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 388.2 | 348.3 |
Industrial & Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 109.6 | 105.5 |
Vehicle repair | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 153.8 | 158.8 |
Utilities & Power | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 49.6 | 55.4 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 463 | 381.9 |
Total direct sales | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 1,164.2 | 1,049.9 |
Distributors | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 428.7 | 442.3 |
Total Distributors | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 745.2 | 728.1 |
Products | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 1,405.1 | 1,332.4 |
Services | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 187.8 | 159.8 |
Professional tools and equipment | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 1,226.9 | 1,119.2 |
Industrial automation, controls and sensors | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 130 | 138 |
Franchise distribution | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 169 | 173 |
All other | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 67 | 62 |
Professional Instrumentation | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 947.3 | 871.7 |
Professional Instrumentation | Products | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 825.8 | 776.6 |
Professional Instrumentation | Services | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 121.5 | 95.1 |
Professional Instrumentation | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 947.3 | 871.7 |
Professional Instrumentation | Operating Segments | Retail fueling | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 0 | 0 |
Professional Instrumentation | Operating Segments | Industrial & Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 96.8 | 90.4 |
Professional Instrumentation | Operating Segments | Vehicle repair | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 0 | 0 |
Professional Instrumentation | Operating Segments | Utilities & Power | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 49.6 | 55.4 |
Professional Instrumentation | Operating Segments | Other | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 391.1 | 301.2 |
Professional Instrumentation | Operating Segments | Total direct sales | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 537.5 | 447 |
Professional Instrumentation | Operating Segments | Distributors | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 409.8 | 424.7 |
Professional Instrumentation | Operating Segments | Professional tools and equipment | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 780.3 | 704.7 |
Professional Instrumentation | Operating Segments | Industrial automation, controls and sensors | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 100 | 105 |
Professional Instrumentation | Operating Segments | Franchise distribution | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 0 | 0 |
Professional Instrumentation | Operating Segments | All other | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 67 | 62 |
Industrial Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 645.6 | 620.5 |
Industrial Technologies | Products | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 579.3 | 555.8 |
Industrial Technologies | Services | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 66.3 | 64.7 |
Industrial Technologies | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 645.6 | 620.5 |
Industrial Technologies | Operating Segments | Retail fueling | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 388.2 | 348.3 |
Industrial Technologies | Operating Segments | Industrial & Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 12.8 | 15.1 |
Industrial Technologies | Operating Segments | Vehicle repair | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 153.8 | 158.8 |
Industrial Technologies | Operating Segments | Utilities & Power | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 0 | 0 |
Industrial Technologies | Operating Segments | Other | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 71.9 | 80.7 |
Industrial Technologies | Operating Segments | Total direct sales | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 626.7 | 602.9 |
Industrial Technologies | Operating Segments | Distributors | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 18.9 | 17.6 |
Industrial Technologies | Operating Segments | Professional tools and equipment | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 446.6 | 414.5 |
Industrial Technologies | Operating Segments | Industrial automation, controls and sensors | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 30 | 33 |
Industrial Technologies | Operating Segments | Franchise distribution | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 169 | 173 |
Industrial Technologies | Operating Segments | All other | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 0 | 0 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 887.6 | 788.7 |
United States | Professional Instrumentation | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 486 | 406.4 |
United States | Industrial Technologies | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 401.6 | 382.3 |
China | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 150 | 143.6 |
China | Professional Instrumentation | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 128.4 | 125.1 |
China | Industrial Technologies | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 21.6 | 18.5 |
Germany | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 57.6 | 58.3 |
Germany | Professional Instrumentation | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 32.4 | 35.9 |
Germany | Industrial Technologies | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 25.2 | 22.4 |
All other (each country individually less than 5% of total sales) | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 497.7 | 501.6 |
All other (each country individually less than 5% of total sales) | Professional Instrumentation | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 300.5 | 304.3 |
All other (each country individually less than 5% of total sales) | Industrial Technologies | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 197.2 | $ 197.3 |
Pension Plans - Components of N
Pension Plans - Components of Net Periodic Pension Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 0.4 | $ 0.3 |
Expected return on plan assets | (0.3) | (0.4) |
Net periodic pension cost | 0.1 | (0.1) |
Foreign Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.3 | 0.3 |
Interest cost | 1.4 | 1.4 |
Expected return on plan assets | (1.4) | (1.5) |
Amortization of net loss | 0.7 | 0.7 |
Net curtailment and settlement loss recognized | 0 | 0.2 |
Net periodic pension cost | $ 1 | $ 1.1 |
Pension Plans - Narrative (Deta
Pension Plans - Narrative (Details) $ in Millions | Mar. 29, 2019USD ($) |
Foreign Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contributions | $ 9.6 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 14.80% | 15.70% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - shares shares in Thousands | Feb. 22, 2019 | Mar. 29, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of common stock reserved for issuance under the Stock Plan (in shares) | 20,000 | |
Stock options granted (in shares) | 1,700 | |
Remaining service period related to the awards | 2 years | |
Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards granted (in shares) | 550 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pretax compensation expense | $ 12.9 | $ 11 |
Income tax benefit | (2.8) | (2.3) |
Total stock-based compensation expense | 10.1 | 8.7 |
Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pretax compensation expense | 7.8 | 6.5 |
Income tax benefit | (1.7) | (1.4) |
Total stock-based compensation expense | 6.1 | 5.1 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pretax compensation expense | 5.1 | 4.5 |
Income tax benefit | (1.1) | (0.9) |
Total stock-based compensation expense | $ 4 | $ 3.6 |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Compensation Cost (Details) $ in Millions | Mar. 29, 2019USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 147.6 |
Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | 77.2 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 70.4 |
Commitments and Contingencies -
Commitments and Contingencies - Rollforward of Accrued Warranty Liability (Details) $ in Millions | 3 Months Ended |
Mar. 29, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranty period - minimum | 90 days |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
December 31, 2018 | $ 72.1 |
Accruals for warranties issued during the period | 17.9 |
Settlements made | (23) |
Effect of foreign currency translation | (0.2) |
March 29, 2019 | $ 67.2 |
Net Earnings Per Share - Narrat
Net Earnings Per Share - Narrative (Details) - $ / shares shares in Millions | Apr. 11, 2019 | Mar. 29, 2019 | Mar. 30, 2018 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1.7 | 1.5 | |
MCPS | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 16.7 | ||
Subsequent Event | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dividend declared, common share | $ 0.07 | ||
Dividend declared, MCPS | $ 12.50 |
Net Earnings Per Share - Earnin
Net Earnings Per Share - Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Numerator | ||
Net earnings from continuing operations | $ 164 | $ 214 |
Mandatory convertible preferred stock cumulative dividends | (17.3) | 0 |
Net earnings attributable to common stockholders from continuing operations | $ 146.7 | $ 214 |
Denominator | ||
Weighted average common shares outstanding used in basic earnings per share (in shares) | 335.1 | 348.6 |
Incremental common shares from: | ||
Assumed exercise of dilutive options and vesting of dilutive Stock Awards (in shares) | 4.4 | 5.8 |
Weighted average common shares outstanding used in diluted earnings per share (in shares) | 339.5 | 354.4 |
Net earnings per common share from continuing operations - basic (in dollars per share) | $ 0.44 | $ 0.61 |
Net earnings per common share from continuing operations - diluted (in dollars per share) | $ 0.43 | $ 0.61 |
Net Earnings Per Share - Divide
Net Earnings Per Share - Dividends Declared and Paid (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Dividend per Common Share (in dollars per share) | $ 0.07 | $ 0.07 |
Amount, Common Shares | $ 23.4 | $ 24.3 |
Dividend per share on MCPS (in dollars per share) | $ 12.50 | $ 0 |
Amount, MCPS | $ 17.3 | $ 0 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 29, 2019segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information - Detailed
Segment Information - Detailed Segment Data (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Segment Reporting Information [Line Items] | ||
Sales | $ 1,592.9 | $ 1,492.2 |
Operating profit | 217.3 | 277.9 |
Interest expense, net | (25.3) | (23.3) |
Other non-operating income (expenses), net | 0.4 | (0.7) |
Earnings from continuing operations before income taxes | 192.4 | 253.9 |
Professional Instrumentation | ||
Segment Reporting Information [Line Items] | ||
Sales | 947.3 | 871.7 |
Industrial Technologies | ||
Segment Reporting Information [Line Items] | ||
Sales | 645.6 | 620.5 |
Operating Segments | Professional Instrumentation | ||
Segment Reporting Information [Line Items] | ||
Sales | 947.3 | 871.7 |
Operating profit | 136.2 | 206.4 |
Operating Segments | Industrial Technologies | ||
Segment Reporting Information [Line Items] | ||
Sales | 645.6 | 620.5 |
Operating profit | 105.3 | 94.2 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Operating profit | $ (24.2) | $ (22.7) |
Uncategorized Items - a20190329
Label | Element | Value |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (7,600,000) |
Common Stock [Member] | ||
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 347,800,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 3,500,000 |
Noncontrolling Interest [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 17,900,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 2,444,100,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (3,900,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 1,346,400,000 |