Cover
Cover - shares | 9 Months Ended | |
Oct. 01, 2021 | Oct. 25, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 1, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-37654 | |
Entity Registrant Name | Fortive Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-5654583 | |
Entity Address, Address Line One | 6920 Seaway Blvd | |
Entity Address, City or Town | Everett, | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98203 | |
City Area Code | 425 | |
Local Phone Number | 446-5000 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | FTV | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity common stock, shares outstanding | 358,577,652 | |
Amendment flag | false | |
Document fiscal year focus | 2021 | |
Document fiscal period focus | Q3 | |
Entity central index key | 0001659166 | |
Current fiscal year end date | --12-31 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Oct. 01, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and equivalents | $ 838.4 | $ 1,824.8 |
Accounts receivable, net | 830.4 | 810.3 |
Inventories: | ||
Finished goods | 231.1 | 227.9 |
Work in process | 87.9 | 75.2 |
Raw materials | 187.8 | 152.4 |
Inventories | 506.8 | 455.5 |
Prepaid expenses and other current assets | 249.7 | 206.7 |
Investment in Vontier Corporation | 0 | 1,119.2 |
Current assets, discontinued operations | 0 | 30.4 |
Total current assets | 2,425.3 | 4,446.9 |
Property, plant and equipment, net of accumulated depreciation of $701.1 and $674.5 at October 1, 2021 and December 31, 2020, respectively | 395 | 422 |
Operating lease right-of-use assets | 180.3 | 188.7 |
Other assets | 361.9 | 344.1 |
Goodwill | 8,221.5 | 7,359.2 |
Other intangible assets, net | 3,392.1 | 3,290.6 |
Total assets | 14,976.1 | 16,051.5 |
Current liabilities: | ||
Commercial paper | 215 | 0 |
Current portion of long-term debt | 1,143.2 | 1,399.8 |
Trade accounts payable | 494.9 | 480.8 |
Current operating lease liabilities | 45.4 | 47 |
Accrued expenses and other current liabilities | 969.2 | 899.9 |
Current liabilities, discontinued operations | 1.2 | 33.3 |
Total current liabilities | 2,868.9 | 2,860.8 |
Operating lease liabilities | 144.3 | 154.3 |
Other long-term liabilities | 1,198 | 1,233.4 |
Long-term debt | 1,442.1 | 2,830.3 |
Commitments and Contingencies | ||
Equity: | ||
Preferred stock: $0.01 par value, 15.0 million shares authorized at October 1, 2021 and December 31, 2020; 5.0% Mandatory convertible preferred stock, series A, 0.0 million and 1.4 million shares designated, issued, and outstanding at October 1, 2021 and December 31, 2020, respectively | 0 | 0 |
Common stock: $0.01 par value, 2.0 billion shares authorized; 359.9 and 339.0 million issued; 358.6 and 337.9 million outstanding at October 1, 2021 and December 31, 2020, respectively | 3.6 | 3.4 |
Additional paid-in capital | 3,624.3 | 3,554.5 |
Retained earnings | 5,882.2 | 5,547.4 |
Accumulated other comprehensive loss | (192.1) | (141.1) |
Total Fortive stockholders’ equity | 9,318 | 8,964.2 |
Noncontrolling interests | 4.8 | 8.5 |
Total stockholders’ equity | 9,322.8 | 8,972.7 |
Total liabilities and equity | $ 14,976.1 | $ 16,051.5 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Oct. 01, 2021 | Dec. 31, 2020 | |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 701.1 | $ 674.5 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, dividend rate | 5.00% | 5.00% |
Preferred stock, shares issued (in shares) | 0 | 1,400,000 |
Preferred stock, shares outstanding (in shares) | 0 | 1,400,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 359,900,000 | 339,000,000 |
Common stock, shares outstanding (in shares) | 358,600,000 | 337,900,000 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 25, 2020 | Oct. 01, 2021 | Sep. 25, 2020 | |
Total sales | $ 1,299.5 | $ 1,159.8 | $ 3,878.4 | $ 3,309.5 |
Total cost of sales | (555.3) | (508.2) | (1,666.8) | (1,463.1) |
Gross profit | 744.2 | 651.6 | 2,211.6 | 1,846.4 |
Operating costs: | ||||
Selling, general and administrative expenses | (455.6) | (434.8) | (1,340.1) | (1,253.4) |
Research and development expenses | (87.8) | (79.2) | (261.8) | (237.4) |
Operating profit | 200.8 | 137.6 | 609.7 | 355.6 |
Non-operating income (expense), net: | ||||
Interest expense, net | (25.1) | (36.9) | (78) | (111.7) |
Loss on extinguishment of debt | 0 | 0 | (104.9) | 0 |
Gain on investment in Vontier Corporation | 0 | 0 | 57 | 0 |
Gain on litigation dismissal | 0 | 0 | 26 | 0 |
Other non-operating expense, net | (1.6) | (1.4) | (9.5) | (0.3) |
Earnings from continuing operations before income taxes | 174.1 | 99.3 | 500.3 | 243.6 |
Income taxes | (23) | (13.3) | (55.5) | (43) |
Net earnings from continuing operations | 151.1 | 86 | 444.8 | 200.6 |
Earnings (loss) from discontinued operations, net of income taxes | (0.3) | 139.8 | (2.9) | 197.1 |
Net earnings | 150.8 | 225.8 | 441.9 | 397.7 |
Mandatory convertible preferred dividends | 0 | (17.3) | (34.5) | (51.8) |
Net earnings attributable to common stockholders | $ 150.8 | $ 208.5 | $ 407.4 | $ 345.9 |
Net earnings per common share from continuing operations: | ||||
Net earnings per common share from continuing operations - Basic (in dollars per share) | $ 0.42 | $ 0.20 | $ 1.19 | $ 0.44 |
Net earnings per common share from continuing operations - Diluted (in dollars per share) | 0.42 | 0.20 | 1.18 | 0.44 |
Net earnings (loss) per share from discontinued operations: | ||||
Net earnings (loss) per share from discontinued operations - Basic (in dollars per share) | 0 | 0.41 | (0.01) | 0.58 |
Net earnings (loss) per share from discontinued operations - Diluted (in dollars per share) | 0 | 0.41 | (0.01) | 0.58 |
Net earnings per share: | ||||
Net earnings per share - Basic (in dollars per share) | 0.42 | 0.62 | 1.18 | 1.03 |
Net earnings per share - Diluted (in dollars per share) | $ 0.42 | $ 0.61 | $ 1.17 | $ 1.02 |
Average common stock and common equivalent shares outstanding: | ||||
Average common stock and common equivalent shares outstanding - Basic (in shares) | 358.9 | 337.6 | 345.6 | 337.3 |
Average common stock and common equivalent shares outstanding - Diluted (in shares) | 362.2 | 340.8 | 348.8 | 340.2 |
Sales of products and software | ||||
Total sales | $ 1,105.6 | $ 988.1 | $ 3,318.8 | $ 2,820.6 |
Total cost of sales | (448.3) | (409.6) | (1,356.6) | (1,185.8) |
Sales of services | ||||
Total sales | 193.9 | 171.7 | 559.6 | 488.9 |
Total cost of sales | $ (107) | $ (98.6) | $ (310.2) | $ (277.3) |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 25, 2020 | Oct. 01, 2021 | Sep. 25, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 150.8 | $ 225.8 | $ 441.9 | $ 397.7 |
Other comprehensive income, net of income taxes: | ||||
Foreign currency translation adjustments | (35.7) | 63.9 | (53.8) | (36.4) |
Pension adjustments | 0.9 | 1 | 2.8 | 1 |
Total other comprehensive income (loss), net of income taxes | (34.8) | 64.9 | (51) | (35.4) |
Comprehensive income | $ 116 | $ 290.7 | $ 390.9 | $ 362.3 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Changes in Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Preferred Stock | Preferred StockCumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-In Capital | Additional Paid-In CapitalCumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained EarningsCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjusted Balance | Noncontrolling Interests | Noncontrolling InterestsCumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance (in shares) at Dec. 31, 2019 | 336 | 336 | 1.4 | 1.4 | ||||||||||
Beginning balance at Dec. 31, 2019 | $ 3.4 | $ 3.4 | $ 0 | $ 0 | $ 3,311.1 | $ 3,311.1 | $ 4,128.8 | $ (31.3) | $ 4,097.5 | $ (56.3) | $ (56.3) | $ 13.2 | $ 13.2 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net earnings for the period | 41.9 | |||||||||||||
Dividends to common shareholders | $ (23.5) | (23.5) | ||||||||||||
Mandatory convertible preferred stock cumulative dividends | (17.3) | (17.3) | ||||||||||||
Other comprehensive income (loss) | (137.3) | |||||||||||||
Common stock-based award activity (in shares) | 0.8 | |||||||||||||
Common stock-based award activity | 22.6 | |||||||||||||
Change in noncontrolling interests | (2) | |||||||||||||
Ending balance (in shares) at Mar. 27, 2020 | 336.8 | 1.4 | ||||||||||||
Ending balance at Mar. 27, 2020 | $ 3.4 | $ 0 | 3,333.7 | 4,098.6 | (193.6) | 11.2 | ||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 336 | 336 | 1.4 | 1.4 | ||||||||||
Beginning balance at Dec. 31, 2019 | $ 3.4 | $ 3.4 | $ 0 | $ 0 | 3,311.1 | $ 3,311.1 | 4,128.8 | $ (31.3) | $ 4,097.5 | (56.3) | $ (56.3) | 13.2 | $ 13.2 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net earnings for the period | 397.7 | |||||||||||||
Dividends to common shareholders | (70.7) | |||||||||||||
Mandatory convertible preferred stock cumulative dividends | (51.8) | |||||||||||||
Other comprehensive income (loss) | (35.4) | |||||||||||||
Ending balance (in shares) at Sep. 25, 2020 | 337.2 | 1.4 | ||||||||||||
Ending balance at Sep. 25, 2020 | $ 3.4 | $ 0 | 3,391.7 | 4,372.7 | (91.7) | 12 | ||||||||
Beginning balance (in shares) at Mar. 27, 2020 | 336.8 | 1.4 | ||||||||||||
Beginning balance at Mar. 27, 2020 | $ 3.4 | $ 0 | 3,333.7 | 4,098.6 | (193.6) | 11.2 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net earnings for the period | 130 | |||||||||||||
Dividends to common shareholders | (23.6) | (23.6) | ||||||||||||
Mandatory convertible preferred stock cumulative dividends | (17.2) | (17.2) | ||||||||||||
Other comprehensive income (loss) | 37 | |||||||||||||
Common stock-based award activity (in shares) | 0.2 | |||||||||||||
Common stock-based award activity | 27 | |||||||||||||
Change in noncontrolling interests | 0.4 | |||||||||||||
Ending balance (in shares) at Jun. 26, 2020 | 337 | 1.4 | ||||||||||||
Ending balance at Jun. 26, 2020 | $ 3.4 | $ 0 | 3,360.7 | 4,187.8 | (156.6) | 11.6 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net earnings for the period | 225.8 | 225.8 | ||||||||||||
Dividends to common shareholders | (23.6) | (23.6) | ||||||||||||
Mandatory convertible preferred stock cumulative dividends | (17.3) | (17.3) | ||||||||||||
Other comprehensive income (loss) | 64.9 | 64.9 | ||||||||||||
Common stock-based award activity (in shares) | 0.2 | |||||||||||||
Common stock-based award activity | 31 | |||||||||||||
Change in noncontrolling interests | 0.4 | |||||||||||||
Ending balance (in shares) at Sep. 25, 2020 | 337.2 | 1.4 | ||||||||||||
Ending balance at Sep. 25, 2020 | $ 3.4 | $ 0 | 3,391.7 | 4,372.7 | (91.7) | 12 | ||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 339 | 1.4 | ||||||||||||
Beginning balance at Dec. 31, 2020 | 8,972.7 | $ 3.4 | $ 0 | 3,554.5 | 5,547.4 | (141.1) | 8.5 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net earnings for the period | 110.2 | |||||||||||||
Dividends to common shareholders | (23.7) | (23.7) | ||||||||||||
Mandatory convertible preferred stock cumulative dividends | (17.3) | (17.3) | ||||||||||||
Other comprehensive income (loss) | (33.7) | |||||||||||||
Common stock-based award activity (in shares) | (0.5) | |||||||||||||
Common stock-based award activity | (2.3) | |||||||||||||
Early extinguishment of 0.875% senior convertible notes due 2022 | 11.6 | |||||||||||||
Change in noncontrolling interests | (0.8) | |||||||||||||
Ending balance (in shares) at Apr. 02, 2021 | 338.5 | 1.4 | ||||||||||||
Ending balance at Apr. 02, 2021 | $ 3.4 | $ 0 | 3,563.8 | 5,616.6 | (174.8) | 7.7 | ||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 339 | 1.4 | ||||||||||||
Beginning balance at Dec. 31, 2020 | 8,972.7 | $ 3.4 | $ 0 | 3,554.5 | 5,547.4 | (141.1) | 8.5 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net earnings for the period | 441.9 | |||||||||||||
Dividends to common shareholders | (72.6) | |||||||||||||
Mandatory convertible preferred stock cumulative dividends | (34.5) | |||||||||||||
Other comprehensive income (loss) | (51) | |||||||||||||
Ending balance (in shares) at Oct. 01, 2021 | 358.6 | 0 | ||||||||||||
Ending balance at Oct. 01, 2021 | 9,322.8 | $ 3.6 | $ 0 | 3,624.3 | 5,882.2 | (192.1) | 4.8 | |||||||
Beginning balance (in shares) at Apr. 02, 2021 | 338.5 | 1.4 | ||||||||||||
Beginning balance at Apr. 02, 2021 | $ 3.4 | $ 0 | 3,563.8 | 5,616.6 | (174.8) | 7.7 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net earnings for the period | 180.9 | |||||||||||||
Dividends to common shareholders | (23.7) | (23.7) | ||||||||||||
Mandatory convertible preferred stock cumulative dividends | (17.2) | (17.2) | ||||||||||||
Other comprehensive income (loss) | 17.5 | |||||||||||||
Common stock-based award activity (in shares) | 0.5 | |||||||||||||
Common stock-based award activity | 35.3 | |||||||||||||
Conversion of mandatory convertible preferred stock to common stock (in shares) | 19.4 | (1.4) | ||||||||||||
Conversion of Mandatory convertible preferred stock to common stock | $ 0.2 | |||||||||||||
Change in noncontrolling interests | 3 | (3) | ||||||||||||
Ending balance (in shares) at Jul. 02, 2021 | 358.4 | 0 | ||||||||||||
Ending balance at Jul. 02, 2021 | $ 3.6 | $ 0 | 3,602.1 | 5,756.6 | (157.3) | 4.7 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net earnings for the period | 150.8 | 150.8 | ||||||||||||
Dividends to common shareholders | (25.2) | (25.2) | ||||||||||||
Mandatory convertible preferred stock cumulative dividends | 0 | |||||||||||||
Other comprehensive income (loss) | (34.8) | (34.8) | ||||||||||||
Common stock-based award activity (in shares) | 0.2 | |||||||||||||
Common stock-based award activity | 26 | |||||||||||||
Change in noncontrolling interests | (3.8) | 0.1 | ||||||||||||
Ending balance (in shares) at Oct. 01, 2021 | 358.6 | 0 | ||||||||||||
Ending balance at Oct. 01, 2021 | $ 9,322.8 | $ 3.6 | $ 0 | $ 3,624.3 | $ 5,882.2 | $ (192.1) | $ 4.8 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Changes in Equity (Parenthetical) | Oct. 01, 2021 | Apr. 02, 2021 | Sep. 25, 2020 | Feb. 22, 2019 |
0.875% senior convertible notes due 2022 | Convertible Debt | ||||
Interest rate, stated percentage | 0.875% | 0.875% | 0.875% | 0.875% |
Consolidated Condensed Statem_5
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Oct. 01, 2021 | Sep. 25, 2020 | |
Cash flows from operating activities: | ||
Net earnings from continuing operations | $ 444.8 | $ 200.6 |
Noncash items: | ||
Amortization | 235.4 | 232.7 |
Depreciation | 56.1 | 60.3 |
Stock-based compensation expense | 55.2 | 45.3 |
Loss on extinguishment of debt | 104.2 | 0 |
Gain on investment in Vontier Corporation | (57) | 0 |
Gain on litigation dismissal | (26) | 0 |
Change in trade accounts receivable, net | (20.4) | 102.9 |
Change in inventories | (46.1) | (14.2) |
Change in trade accounts payable | 14.8 | (24.7) |
Change in prepaid expenses and other assets | (61.5) | 23.2 |
Change in accrued expenses and other liabilities | 6.4 | 22.2 |
Total operating cash provided by continuing operations | 705.9 | 648.3 |
Total operating cash provided by (used in) discontinued operations | (19.4) | 503.7 |
Net cash provided by operating activities | 686.5 | 1,152 |
Cash flows from investing activities: | ||
Cash paid for acquisitions, net of cash received | (1,156.7) | (15.2) |
Payments for additions to property, plant and equipment | (28) | (58.9) |
All other investing activities | 1.1 | 5.3 |
Total investing cash used in continuing operations | (1,183.6) | (68.8) |
Total investing cash used in discontinued operations | 0 | (36.3) |
Net cash used in investing activities | (1,183.6) | (105.1) |
Cash flows from financing activities: | ||
Net proceeds from (repayment of) commercial paper borrowings | 215 | (1,141.9) |
Proceeds from borrowings (maturities greater than 90 days), net of issuance costs of $8 million in 2020 | 0 | 741.7 |
Repayment of borrowings (maturities greater than 90 days) | (611.1) | (250) |
Payment of common stock cash dividend to shareholders | (72.6) | (70.7) |
Payment of mandatory convertible preferred stock cash dividend to shareholders | (34.5) | (34.5) |
All other financing activities | 18.1 | (0.6) |
Total financing cash used in continuing operations | (485.1) | (756) |
Total financing cash used in discontinued operations | 0 | (4.2) |
Net cash used in financing activities | (485.1) | (760.2) |
Effect of exchange rate changes on cash and equivalents | (4.2) | (2.7) |
Net change in cash and equivalents | (986.4) | 284 |
Beginning balance of cash and equivalents | 1,824.8 | 1,205.2 |
Ending balance of cash and equivalents | $ 838.4 | $ 1,489.2 |
Consolidated Condensed Statem_6
Consolidated Condensed Statements of Cash Flows (Parenthetical) $ in Millions | 9 Months Ended |
Sep. 25, 2020USD ($) | |
Statement of Cash Flows [Abstract] | |
Payments of debt issuance costs | $ 8 |
Business Overview
Business Overview | 9 Months Ended |
Oct. 01, 2021 | |
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 provider of essential technologies for connected workflow solutions across a range of attractive end-markets. Our well-known brands hold leading positions in intelligent operating solutions, precision technologies, and advanced healthcare solutions. 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 technologies, and significant market positions. Our research and development, manufacturing, sales, distribution, service, and administrative facilities are located in more than 50 countries across North America, Asia Pacific, Europe, and Latin America. 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, 2020 and the footnotes (“Notes”) thereto included within our 2020 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 October 1, 2021 and December 31, 2020, our results of operations for the three and nine month periods ended October 1, 2021 and September 25, 2020, and cash flows for the nine month periods ended October 1, 2021 and September 25, 2020. Reclassification of certain prior year amounts have been made to conform to current year presentation. Vontier Separation and Discontinued Operations On October 9, 2020 (the “Distribution Date”), the Company completed the separation of its Industrial Technologies segment by distributing 80.1% of the outstanding shares of Vontier Corporation (“Vontier”), the entity incorporated to hold such businesses, to Fortive stockholders (the “Vontier Separation”) on a pro rata basis. To effect the Vontier Separation, the Company distributed to its stockholders two shares of Vontier common stock for every five shares of the Company’s common stock outstanding held on September 25, 2020, the record date for the distribution, with the Company retaining 19.9% of the shares of Vontier common stock outstanding immediately following the Vontier Separation (the “Retained Vontier Shares”). On the Distribution Date, Vontier paid the Company $1.8 billion, including $1.6 billion as part of the consideration for the contribution of certain assets and liabilities to Vontier by the Company in connection with the Vontier Separation and $202 million as an adjustment for excess cash balances remaining with Vontier (collectively, the “Cash Consideration”). We have used the Cash Consideration to repay certain outstanding indebtedness, make interest payments on certain debt instruments, and pay certain of the Company’s regular, quarterly cash dividends. On January 19, 2021, we completed an exchange (the “Debt-for-Equity Exchange”) of 33.5 million shares of common stock of Vontier, representing all of the Retained Vontier Shares, for $1.1 billion in aggregate principal amount of indebtedness of the Company held by Goldman Sachs & Co. Refer to Note 11 of our 2020 Annual Report on Form 10-K and Note 6 to the consolidated condensed financial statements for the description of the debt repayments made subsequent to the Distribution Date. Interest expense and extinguishment costs related to the debt retired during the first quarter of 2021 are included in continuing operations. The accounting requirements for reporting the Vontier business as a discontinued operation were met when the Vontier Separation was completed. Accordingly, the consolidated financial statements reflect the results of the Vontier business as a discontinued operation for all periods presented. Fortive did not retain a controlling interest in Vontier and therefore the Retained Vontier Shares were included in our assets of continuing operations as of December 31, 2020 and subsequent fair value changes in the Retained Vontier Shares prior to the Debt-for-Equity Exchange are included in our results from continuing operations for the nine month period ended October 1, 2021. Segment Presentation In light of the Vontier Separation, we changed our internal reporting structure on the first day of the fourth quarter of 2020, September 26, 2020, to reflect organizational and leadership changes that allow us to better assess the operational performance of, and allocate resources to, our businesses. Our chief operating decision maker assesses performance and allocates resources based on our new operating segments, which are also our new reportable segments. Our new reportable segments are comprised of Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions. All prior period segment information has been restated to reflect our new reportable segments. 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 designated our ¥13.8 billion senior unsecured term facility loan and our Euro-denominated commercial paper outstanding during the nine month period ended September 25, 2020 as net investment hedges of our investment in certain foreign operations; we exited our Euro-denominated commercial paper positions during the second quarter of 2020 and repaid our ¥13.8 billion senior unsecured term facility loan during the fourth quarter of 2020. As of October 1, 2021 and December 31, 2020, we had no designated net investment hedges. During the three and nine month periods ended September 25, 2020, we recognized foreign currency transaction losses of $2.0 million and gains of $2.0 million, respectively, on the debt that were deferred in the foreign currency translation component of Accumulated other comprehensive income (loss) (“AOCI”) as an offset to the foreign currency translation adjustments on our investments in foreign subsidiaries. Any amounts deferred in AOCI will remain until the hedged investment is sold or substantially liquidated. We recorded no ineffectiveness from our net investment hedges during the three and nine month periods ended September 25, 2020. The changes in AOCI by component are summarized below ($ in millions): Foreign Pension adjustments (a) Total For the Three Months Ended October 1, 2021: Balance, July 2, 2021 $ (72.1) $ (85.2) $ (157.3) Other comprehensive income (loss) before reclassifications, net of income taxes (35.7) — (35.7) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 1.2 (b) 1.2 Income tax impact — (0.3) (0.3) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.9 0.9 Net current period other comprehensive income (loss), net of income taxes (35.7) 0.9 (34.8) Balance, October 1, 2021 $ (107.8) $ (84.3) $ (192.1) For the Three Months Ended September 25, 2020: Balance, June 26, 2020 $ (79.1) $ (77.5) $ (156.6) Other comprehensive income (loss) before reclassifications, net of income taxes 63.9 — 63.9 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 1.2 (b) 1.2 Income tax impact — (0.2) (0.2) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 1.0 1.0 Net current period other comprehensive income (loss), net of income taxes 63.9 1.0 64.9 Balance, September 25, 2020 $ (15.2) $ (76.5) $ (91.7) Foreign Pension adjustments (a) Total For the Nine Months Ended October 1, 2021: Balance, December 31, 2020 $ (54.0) $ (87.1) $ (141.1) Other comprehensive income (loss) before reclassifications, net of income taxes (53.8) — (53.8) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 3.7 (b) 3.7 Income tax impact — (0.9) (0.9) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 2.8 2.8 Net current period other comprehensive income (loss) (53.8) 2.8 (51.0) Balance, October 1, 2021 $ (107.8) $ (84.3) $ (192.1) For the Nine Months Ended September 25, 2020: Balance, December 31, 2019 $ 21.2 $ (77.5) $ (56.3) Other comprehensive income (loss) before reclassifications, net of income taxes (36.4) — (36.4) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 1.2 (b) 1.2 Income tax impact — (0.2) (0.2) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 1.0 1.0 Net current period other comprehensive income (loss) (36.4) 1.0 (35.4) Balance, September 25, 2020 $ (15.2) $ (76.5) $ (91.7) (a) Includes balances relating to defined benefit plans, supplemental executive retirement plans, and other postretirement employee benefit plans. (b) This component of AOCI is included in the computation of net periodic pension cost (refer to Note 8 for additional details). Allowances for Doubtful Accounts All trade accounts and unbilled receivables are reported in the Consolidated Condensed Balance Sheet adjusted for any write-offs and net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from our unbilled and trade accounts receivable portfolios over the life of the underlying assets. Additions to the allowances are charged to current period earnings, amounts determined to be uncollectible are charged directly against the allowances, while amounts recovered on previously written-off accounts increase the allowances. The following is a rollforward of the aggregated allowance for credit losses related to our trade accounts receivables as of October 1, 2021 ($ in millions): Balance, December 31, 2020 $ 42.5 Provision (0.4) Write-offs (6.1) Foreign currency exchange and other 0.3 Balance, October 1, 2021 $ 36.3 The allowance for unbilled receivables was immaterial for all periods presented. Recently Issued Accounting Standard In August 2020, the Financial Accounting Standards Board issued Accounting Standards Update No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity |
Acquisitions
Acquisitions | 9 Months Ended |
Oct. 01, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | NOTE 2. ACQUISITIONS 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 markets. We have completed a number of acquisitions that have been accounted for as business combinations 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 complementary 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 complementary 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 and nine month periods ended October 1, 2021, immaterial adjustments were recorded to the preliminary purchase price allocation of acquisitions that closed during 2020. Advanced Sterilization Products On April 1, 2019 (the “Principal Closing Date”), we acquired the advanced sterilization products business (“ASP”) of Johnson & Johnson, a New Jersey corporation (“Johnson & Johnson”), for an aggregate purchase price of $2.7 billion (the “Transaction”), subject to certain post-closing adjustments set forth in a Stock and Asset Purchase Agreement, dated effective as of June 6, 2018 (the “Purchase Agreement”), between the Company and Ethicon, Inc., a New Jersey corporation (“Ethicon”) and a wholly owned subsidiary of Johnson & Johnson. ASP engages in the research, development, manufacture, marketing, distribution, and sale of low-temperature terminal sterilization and high-level disinfection products. On the Principal Closing Date, we paid $2.7 billion in cash and obtained the transferred assets and assumed liabilities in 20 countries (“Principal Countries”), general patent and trademark assignments, and all transferred equity interests in ASP. ASP has operations in an additional 39 countries (“Non-Principal Countries”). The transferred assets and liabilities associated with these operations will close when requirements of country-specific agreements or regulatory approvals are satisfied. The $2.7 billion purchase price was paid in exchange for ASP’s businesses in both Principal and Non-Principal Countries. As of October 1, 2021 we have closed 20 Principal Countries and 38 Non-Principal Countries that, in aggregate, accounted for approximately 99% of the preliminary valuation of ASP. The remaining Non-Principal Country represents less than 1% of the preliminary valuation of ASP, or $1.0 million, which is included as a prepaid asset in Other assets in the Consolidated Condensed Balance Sheet. As each Non-Principal Country closes, we reduce the prepaid asset and record the fair value of the assets acquired and liabilities assumed. All of the provisional goodwill associated with the Transaction is included in goodwill at October 1, 2021, and the majority of the provisional goodwill is tax deductible. There were no material measurement period adjustments recorded for the Non-Principal Countries during the three and nine month periods ended October 1, 2021. In addition, the Company entered into a transition services agreement with Johnson & Johnson for certain administrative and operational services (“TSA”) and distribution agreements in the Non-Principal Countries. Under the distribution agreements, ASP sells finished goods to Ethicon at prices agreed by the parties. ASP recognizes these sales as revenue when the conditions for revenue recognition are met. Following the sale of finished goods by ASP, Ethicon obtains title of the finished goods, has full authority to sell and market the finished goods to end customers as it sees fit, and retains any revenue and profit from the sale. As of October 1, 2021, ASP had exited the TSAs and substantially all of the distribution agreements. ASP expects to close the remaining Non-Principal Country in the fourth quarter of 2021. Prior to our acquisition of ASP, Johnson & Johnson received a Civil Investigative Demand from the United States Department of Justice (“DOJ”) regarding a False Claims Act investigation arising from a whistleblower lawsuit pertaining to the pricing, quality, marketing, and promotion of certain of ASP’s products. Based on the totality of available information at the Principal Closing Date and throughout the applicable measurement period, management allocated $26 million of the $2.7 billion purchase price to a potential liability related to the aforementioned litigation. Following the Principal Closing Date, management continually evaluated the likelihood and magnitude of the asserted claims based on any new information that became available. In the second quarter of 2021, following the unsealing of the whistleblower lawsuit and DOJ’s declination to intervene in the litigation, the plaintiff dismissed the whistleblower lawsuit. Based on these developments, management derecognized the litigation liability from our Consolidated Condensed Balance Sheet and recorded the gain on litigation dismissal of $26 million within Non-operating income (expense), net in our Consolidated Condensed Statements of Earnings during the nine month period ended October 1, 2021. ServiceChannel On August 24, 2021, we acquired ServiceChannel Holdings, Inc. (“ServiceChannel”), a privately held, global provider of software as a service based multi-site facilities maintenance service solutions with an integrated service-provider network. The acquisition of ServiceChannel broadens our offering of software-enabled solutions for the facility and asset lifecycle workflow. The total consideration paid was approximately $1.2 billion, net of acquired cash, and includes approximately $36 million of deferred compensation consideration that will be recognized ratably over a twelve month service period. The ServiceChannel acquisition was primarily financed with available cash and proceeds from our financing activities. We preliminarily recorded approximately $897 million of goodwill related to the ServiceChannel acquisition, which is not tax deductible. ServiceChannel had revenue in 2020 of approximately $70 million and is an operating company within our Intelligent Operating Solutions segment. The following table summarizes the preliminary estimated fair value of the assets acquired and liabilities assumed from ServiceChannel as of October 1, 2021 ($ in millions): Goodwill $ 897.3 Other intangible assets, primarily customer relationships, technology, database, and trade names 343.8 Other assets and liabilities, net (82.4) Net cash consideration $ 1,158.7 Revenue and operating loss attributable to ServiceChannel for both the three and nine month periods ended October 1, 2021 were $10.1 million and $19.5 million, respectively, consistent with our expectations. The operating loss includes a combined $18.2 million of intangible asset amortization, acquisition-related fair value adjustments, and transaction and integration costs for both the three and nine month periods ended October 1, 2021. Transaction and integration related costs were approximately $13.2 million and are recorded in Selling, general and administration expenses, which are primarily comprised of compensation cost for employee retention bonuses and amounts paid to third-party advisors. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Oct. 01, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 3. DISCONTINUED OPERATIONS On October 9, 2020, we completed the Vontier Separation. The accounting requirements for reporting the Vontier business as a discontinued operation were met when the Vontier Separation was completed. Accordingly, the consolidated financial statements reflect the results of the Vontier business as a discontinued operation for all periods presented. Vontier Impairment Charge As a result of the interim impairment testing performed, we concluded that the estimated fair value of the Telematics reporting unit was less than its carrying value as of March 27, 2020, and recorded a non-cash goodwill impairment charge of $85.3 million during the three month period ended March 27, 2020. The Telematics reporting unit was included in our former Industrial Technologies segment and part of the Vontier Separation. Accordingly, the impairment charge is recorded in Earnings from discontinued operations, net of income taxes in the Consolidated Statement of Earnings. The key components of income from discontinued operations for the three and nine month periods ended October 1, 2021 and September 25, 2020 were as follows ($ in millions): Three Months Ended Nine Months Ended October 1, 2021 September 25, 2020 October 1, 2021 September 25, 2020 Sales $ — $ 746.7 $ — $ 1,889.6 Cost of sales — (415.3) — (1,064.2) Selling, general and administrative expenses (0.3) (127.1) (3.5) (380.7) Research and development expenses — (31.6) — (94.7) Goodwill impairment — — — (85.3) Interest expense and other income, net — (7.0) 0.1 (19.3) Earnings before income taxes (0.3) 165.7 (3.4) 245.4 Income taxes — (25.9) 0.5 (48.3) Net earnings from discontinued operations $ (0.3) $ 139.8 $ (2.9) $ 197.1 The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company’s Consolidated Balance Sheets ($ in millions): October 1, 2021 December 31, 2020 ASSETS Other current assets $ — $ 30.4 Total assets, discontinued operations $ — $ 30.4 LIABILITIES Current liabilities: Accrued expenses and other current liabilities $ (1.2) $ (33.3) Total liabilities, discontinued operations $ (1.2) $ (33.3) |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Oct. 01, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | NOTE 4. GOODWILL AND OTHER INTANGIBLES The following is a rollforward of our carrying value of goodwill by segment ($ in millions): Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Total Goodwill Balance, December 31, 2020 $ 3,268.8 $ 1,867.9 $ 2,222.5 $ 7,359.2 Measurement period adjustments for 2020 acquisitions 0.5 — (4.0) (3.5) Attributable to 2021 acquisitions 897.3 — — 897.3 Foreign currency translation and other (13.3) (19.7) 1.5 (31.5) Balance, October 1, 2021 $ 4,153.3 $ 1,848.2 $ 2,220.0 $ 8,221.5 The increase in the goodwill balance of the Intelligent Operating Solutions segment for the nine month period ended October 1, 2021 is a result of the ServiceChannel acquisition. Refer to Note 2 for more information. During the three and nine month periods ended October 1, 2021, we identified no triggering events indicating a potential impairment of goodwill. The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset ($ in millions): October 1, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangibles: Patents and technology $ 1,051.8 $ (449.4) $ 983.3 $ (401.1) Customer relationships and other intangibles 3,106.5 (1,008.8) 2,958.3 (896.8) Trademarks and trade names 67.2 (2.3) 18.0 (1.4) Total finite-lived intangibles 4,225.5 (1,460.5) 3,959.6 (1,299.3) Indefinite-lived intangibles: Trademarks and trade names 627.0 — 630.3 — Total intangibles $ 4,852.5 $ (1,460.5) $ 4,589.9 $ (1,299.3) Finite-lived intangible assets are amortized over the shorter of their legal or estimated useful lives. During the three and nine month periods ended October 1, 2021, we acquired finite-lived intangible assets, consisting primarily of customer relationships, developed technology, and trade names, with a weighted average life of approximately 12 years as a result of the ServiceChannel Acquisition . Refer to Note 2 for additional information on the intangible assets acquired. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 01, 2021 | |
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) for identical assets or liabilities in active markets. • 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 Significant Other Significant Total October 1, 2021 Deferred compensation liabilities $ — $ 40.1 $ — $ 40.1 December 31, 2020 Investment in Vontier $ 1,119.2 $ — $ — $ 1,119.2 Deferred compensation liabilities — 34.8 — 34.8 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 Consolidated Condensed Balance Sheets. Participants may choose among alternative earnings 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. On October 9, 2020, we completed the Vontier Separation and retained 19.9% of the shares of Vontier common stock outstanding immediately following the Vontier Separation. We did not retain a controlling interest in Vontier and therefore the fair value of our Retained Vontier Shares were included in our assets of continuing operations as of December 31, 2020, and subsequent fair value changes are included in our results from continuing operations for the nine month period ended October 1, 2021. On January 19, 2021, we completed the Debt-for-Equity Exchange of 33.5 million shares of common stock of Vontier, representing all of the Retained Vontier Shares, for $1.1 billion in aggregate principal amount of indebtedness of the Company held by Goldman Sachs & Co., including (i) all $400.0 million of the 364-day delayed draw term loan due March 22, 2021 (the “Term Loan due March 2021”) and (ii) $683.2 million of the delayed-draw term loan due May 30, 2021 (the “Term Loan due May 2021”). The change in fair value of the Retained Vontier Shares and the resulting gain of $57.0 million was recorded in the nine month period ended October 1, 2021. We recorded a loss on extinguishment of the debt included in the Debt-for-Equity Exchange of $94.4 million in the nine month period ended October 1, 2021. Nonrecurring Fair Value Measurements Certain non-financial assets, primarily property, plant, and equipment, goodwill, and intangible assets, are not required to be measured at fair value on a recurring basis and are reported at their carrying value. However, these assets are required to be assessed for impairment whenever events or circumstances indicate that their carrying value may not be fully recoverable, and at least annually for goodwill and indefinite-lived intangible assets. We evaluated events or circumstances that may indicate the carrying value of our non-financial assets may not be fully recoverable during the three and nine month periods ended October 1, 2021, and recorded no impairments. Fair Value of Financial Instruments The carrying amount and fair value of financial instruments are as follows ($ in millions): October 1, 2021 December 31, 2020 Carrying Amount Fair Value Carrying Amount Fair Value Current portion of long-term debt $ 1,143.2 $ 1,164.1 $ 1,399.8 $ 1,400.0 Long-term debt, net of current maturities $ 1,442.1 $ 1,627.2 $ 2,830.3 $ 3,155.5 As of October 1, 2021 and December 31, 2020, the current portion of long-term debt and long-term debt, net of current maturities were categorized as Level 1. The fair values of the current portion of long-term debt and long-term debt were based on quoted market prices. The difference between the fair value and the carrying amounts of long-term borrowings may be attributable to changes in market interest rates and/or our credit ratings subsequent to the incurrence of the borrowing. The fair value of cash and cash equivalents, accounts receivable, net, and trade accounts payable, and commercial paper approximates their carrying amount due to the short-term maturities of these instruments. |
Financing and Capital
Financing and Capital | 9 Months Ended |
Oct. 01, 2021 | |
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): October 1, 2021 December 31, 2020 3.15% senior unsecured notes due 2026 $ 894.9 $ 894.1 4.30% senior unsecured notes due 2046 547.2 547.2 0.875% senior convertible notes due 2022 1,143.2 1,389.0 Term Loan due May 2021 — 1,000.0 Term Loan due March 2021 — 399.8 Long-term debt 2,585.3 4,230.1 Less: current portion of long-term debt 1,143.2 1,399.8 Long-term debt, net of current maturities $ 1,442.1 $ 2,830.3 Aggregate unamortized debt discounts, premiums, and issuance costs of $21 million and $57 million as of October 1, 2021 and December 31, 2020, respectively, are netted against the principal amounts of the components of debt in the table above. Refer to Note 11 of our 2020 Annual Report on Form 10-K for further details of our debt financing. Debt-for-Equity Exchange On January 19, 2021, we completed the Debt-for-Equity Exchange of 33.5 million shares of common stock of Vontier, representing all of the Retained Vontier Shares, for $1.1 billion in aggregate principal amount of indebtedness of the Company held by Goldman Sachs & Co., including (i) all $400.0 million of the Term Loan due March 2021 and (ii) $683.2 million of the Term Loan due May 2021. We recorded a loss on extinguishment of the debt included in the Debt-for-Equity Exchange of $94.4 million in the nine month period ended October 1, 2021. Term Loan due May 2021 On January 21, 2021, we repaid the remaining $316.8 million outstanding of the Term Loan due May 2021 from the cash proceeds received from Vontier in the Vontier Separation. The fees associated with the prepayment were immaterial. 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 issued 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 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. As a result of the Vontier Separation and in accordance with the anti-dilution provisions of the Convertible Notes, effective October 9, 2020, the Convertible Notes are convertible into shares of our common stock at an adjusted conversion rate of 10.9568 shares per $1,000 principal amount of Convertible Notes (which is equivalent to an initial conversion price of $91.27 per share), subject to future adjustment upon the occurrence of certain events. The conversion rate is subject to customary anti-dilution adjustments. If certain corporate events 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. 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. Of the $1.4 billion in principal amount 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. On February 9, 2021, we repurchased $281 million of the Convertible Notes at fair value using the remaining cash proceeds received from Vontier in the Vontier Separation and other cash on hand. In connection with the repurchase, we recorded a loss on debt extinguishment during the nine month period ended October 1, 2021 of $10.5 million. In addition, upon repurchase we recorded $11.6 million as a reduction to additional paid-in capital related to the equity component of the repurchased Convertible Notes. We recognized $11.1 million and $34.5 million in interest expense during the three and nine month periods ended October 1, 2021, respectively, of which $2.5 million and $7.9 million was related to the contractual coupon rate of 0.875%, $1.5 million and $4.7 million was attributable to the amortization of debt issuance costs and $7.1 million and $21.9 million was attributable to the amortization of the discount for each respective period. We recognized $13.6 million and $40.6 million in interest expense during the three and nine month periods ended September 25, 2020, respectively, of which $3.2 million and $9.5 million related to the contractual coupon rate of 0.875%, $1.8 million and $5.6 million was attributable to the amortization of debt issuance costs, and $8.6 million and $25.5 million was attributable to the amortization of the discount for each respective period. The discount at issuance was $102.2 million and is being amortized over a three-year period. The unamortized discount at October 1, 2021 was $11.0 million. Prior to November 15, 2021, the Convertible Notes will be convertible only upon the occurrence of certain events and will be convertible thereafter at any time until the close of business on the business day immediately preceding the maturity date of the Convertible Notes. Classification of Debt Due within the Next Twelve Months Our Convertible Senior Notes are recorded in the Current portion of long-term debt line item in the Consolidated Condensed Balance Sheet as of October 1, 2021. Other Liquidity Sources We generally satisfy any short-term liquidity needs that are not met through operating cash flows and available cash primarily through issuances of commercial paper under our U.S. dollar and Euro-denominated commercial paper programs (“Commercial Paper Programs”). Under these programs, we may issue unsecured promissory notes with maturities not exceeding 397 and 183 days, respectively. Due to the volatility and disruption in the commercial paper markets during the first six months of 2020, we temporarily reduced our reliance on this source of funding, and consequently paid down and refinanced our outstanding commercial paper with the Term Loan due March 2021 that was retired in the Debt-for-Equity Exchange. In August 2021, we resumed borrowing under our Commercial Paper Program to fund, in part, the ServiceChannel acquisition. Interest expense on commercial paper is paid at maturity and is generally based on our credit ratings at the time of issuance and prevailing short-term interest rates. The details of our outstanding Commercial Paper Programs as of October 1, 2021 were as follows ($ in millions): Carrying value Annual effective rate Weighted average remaining maturity (in days) U.S. dollar-denominated commercial paper $ 215.0 0.19 % 12 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, to the extent not otherwise providing credit support for our commercial paper programs, can also be used for working capital and other general corporate purposes. As of October 1, 2021, no borrowings were outstanding under the Revolving Credit Facility. |
Sales
Sales | 9 Months Ended |
Oct. 01, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Sales | NOTE 7. SALES We derive revenues primarily from the sale of products, software, and services. Revenue is recognized when control of promised products, software, or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products, software, or services. Sales of products and software includes revenues from the sale of products and equipment, software product offerings, and equipment rentals. Sales of services 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 $77 million as of October 1, 2021 and $56 million as of December 31, 2020. 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 software arrangements. Deferred sales-related commissions are generally not capitalized as the amortization period is one year or less, and we elected to use the practical expedient to expense these sales commissions as incurred. As of October 1, 2021 and December 31, 2020, we had $28 million and $31 million, respectively, in net revenue-related contract assets primarily related to certain software contracts. Revenue-related contract assets are recorded in the Prepaid expenses and other current assets and Other assets line items in our Condensed Consolidated Balance Sheets. These assets have estimated useful lives between 3 and 8 years. Impairment losses recognized on our revenue-related contract assets were immaterial during the three and nine month periods ended October 1, 2021 and September 25, 2020. Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to PCS and extended warranty sales, where in most cases we receive up-front payment and recognize revenue over the support term. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The noncurrent portion of deferred revenue is included in Other long-term liabilities in the Consolidated Condensed Balance Sheets. Our contract liabilities consisted of the following ($ in millions): October 1, 2021 December 31, 2020 Deferred revenue - current $ 400.5 $ 376.4 Deferred revenue - noncurrent 30.8 34.2 Total contract liabilities $ 431.3 $ 410.6 During the three and nine month periods ended October 1, 2021, we recognized revenue related to our contract liabilities at December 31, 2020 of $82 million and $270 million, respectively. The change in our contract liabilities from December 31, 2020 to October 1, 2021 was primarily due to the timing of cash receipts and sales of PCS and extended warranty services. Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, noncancelable orders, with expected delivery dates to customers greater than one year from October 1, 2021, for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below. The aggregate performance obligations attributable to each of our segments is as follows ($ in millions): October 1, 2021 Intelligent Operating Solutions $ 109.4 Precision Technologies 25.9 Advanced Healthcare Solutions 7.9 Total remaining performance obligations $ 143.2 The majority of remaining performance obligations are related to service and support contracts, which we expect to fulfill approximately 55 percent within the next two years, approximately 85 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 software and services, geographic location, 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 month period ended October 1, 2021 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 1,105.6 $ 462.7 $ 401.0 $ 241.9 Sales of services 193.9 72.7 54.7 66.5 Total $ 1,299.5 $ 535.4 $ 455.7 $ 308.4 Geographic: United States $ 683.7 $ 283.8 $ 234.6 $ 165.3 China 154.8 48.8 75.8 30.2 All other (each country individually less than 5% of total sales) 461.0 202.8 145.3 112.9 Total $ 1,299.5 $ 535.4 $ 455.7 $ 308.4 End markets: (a) Direct sales: Medical $ 327.6 $ 10.5 $ 30.7 $ 286.4 Industrial & Manufacturing 313.5 204.4 103.2 5.9 Utilities & Power 97.3 55.3 42.0 — Government 100.1 54.6 33.4 12.1 Communication, Electronics & Semiconductor 103.4 30.6 72.3 0.5 Aerospace & Defense 60.6 — 60.6 — Oil & Gas 64.6 62.4 2.2 — Retail & Consumer 52.1 31.5 20.6 — Other 117.7 56.5 61.1 0.1 Total direct sales 1,236.9 505.8 426.1 305.0 Distributors 62.6 29.6 29.6 3.4 Total $ 1,299.5 $ 535.4 $ 455.7 $ 308.4 (a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer. Disaggregation of revenue for the three month period ended September 25, 2020 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 988.1 $ 409.3 $ 366.2 $ 212.6 Sales of services 171.7 49.8 52.3 69.6 Total $ 1,159.8 $ 459.1 $ 418.5 $ 282.2 Geographic: United States $ 610.6 $ 241.1 $ 213.9 $ 155.6 China 142.0 43.2 71.0 27.8 All other (each country individually less than 5% of total sales) 407.2 174.8 133.6 98.8 Total $ 1,159.8 $ 459.1 $ 418.5 $ 282.2 End markets: (a) Direct sales: Medical $ 304.7 $ 9.2 $ 29.7 $ 265.8 Industrial & Manufacturing 259.8 168.6 86.1 5.1 Utilities & Power 89.1 51.1 38.0 — Government 86.2 42.3 36.4 7.5 Communications, Electronics & Semiconductor 73.2 28.8 43.9 0.5 Aerospace & Defense 66.3 8.6 57.7 — Oil & Gas 54.7 52.5 2.2 — Retail & Consumer 39.1 20.4 18.7 — Other 117.6 52.4 65.2 — Total direct sales 1,090.7 433.9 377.9 278.9 Distributors 69.1 25.2 40.6 3.3 Total $ 1,159.8 $ 459.1 $ 418.5 $ 282.2 (a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer. Disaggregation of revenue for the nine month period ended October 1, 2021 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 3,318.8 $ 1,394.1 $ 1,211.6 $ 713.1 Sales of services 559.6 194.0 163.4 202.2 Total $ 3,878.4 $ 1,588.1 $ 1,375.0 $ 915.3 Geographic: United States $ 1,976.1 $ 808.7 $ 690.0 $ 477.4 China 482.6 162.0 234.3 86.3 All other (each country individually less than 5% of total sales) 1,419.7 617.4 450.7 351.6 Total $ 3,878.4 $ 1,588.1 $ 1,375.0 $ 915.3 End markets: (a) Direct sales: Medical $ 983.0 $ 28.3 $ 99.6 $ 855.1 Industrial & Manufacturing 927.9 601.6 308.6 17.7 Utilities & Power 290.0 166.8 123.2 — Government 287.0 150.7 105.7 30.6 Communication, Electronics & Semiconductor 288.8 90.9 196.2 1.7 Aerospace & Defense 181.7 — 181.7 — Oil & Gas 194.6 186.9 7.7 — Retail & Consumer 142.2 73.7 68.5 — Other 379.9 184.3 195.5 0.1 Total direct sales 3,675.1 1,483.2 1,286.7 905.2 Distributors 203.3 104.9 88.3 10.1 Total $ 3,878.4 $ 1,588.1 $ 1,375.0 $ 915.3 (a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer. Disaggregation of revenue for the nine month period ended September 25, 2020 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 2,820.6 $ 1,189.4 $ 1,036.6 $ 594.6 Sales of services 488.9 149.4 150.5 189 Total $ 3,309.5 $ 1,338.8 $ 1,187.1 $ 783.6 Geographic: United States $ 1,773.8 $ 710.7 $ 616.4 $ 446.7 China 391.5 130.4 192.5 68.6 All other (each country individually less than 5% of total sales) 1,144.2 497.7 378.2 268.3 Total $ 3,309.5 $ 1,338.8 $ 1,187.1 $ 783.6 End markets: (a) Direct sales: Medical $ 849.1 $ 28.7 $ 84.5 $ 735.9 Industrial & Manufacturing 750.7 490.3 244.8 15.6 Utilities & Power 257.1 148.6 108.5 — Government 244.0 119.6 102.6 21.8 Communications, Electronics & Semiconductor 201.0 79.8 119.9 1.3 Aerospace & Defense 179.5 15.4 164.1 — Oil & Gas 164.3 155.4 8.9 — Retail & Consumer 123.1 64.3 58.8 — Other 342.2 163.3 178.9 — Total direct sales 3,111.0 1,265.4 1,071.0 774.6 Distributors 198.5 73.4 116.1 9.0 Total $ 3,309.5 $ 1,338.8 $ 1,187.1 $ 783.6 (a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer. |
Pension Plans
Pension Plans | 9 Months Ended |
Oct. 01, 2021 | |
Retirement Benefits [Abstract] | |
Pension Plans | NOTE 8. PENSION PLANS For a full description of our noncontributory defined benefit pension plans refer to Note 12 of our 2020 Annual Report on Form 10-K. The following sets forth the components of our net periodic costs associated with our noncontributory defined benefit pension plans ($ in millions): Three Months Ended Nine Months Ended October 1, 2021 September 25, 2020 October 1, 2021 September 25, 2020 U.S. Pension Benefits: Interest cost $ 0.3 $ 0.3 $ 0.7 $ 0.9 Expected return on plan assets (0.3) (0.3) (0.7) (0.9) Net periodic pension cost $ — $ — $ — $ — Non-U.S. Pension Benefits: Service cost $ 1.0 $ 1.1 $ 3.0 $ 3.3 Interest cost 0.7 1.0 2.3 3.0 Expected return on plan assets (1.3) (1.4) (3.9) (4.0) Amortization of net loss 1.0 1.1 3.2 3.1 Amortization of prior service cost 0.1 0.1 0.3 0.3 Net periodic pension cost $ 1.5 $ 1.9 $ 4.9 $ 5.7 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 Consolidated Condensed Statements of Earnings. Service costs are reported in cost of sales and selling, general and administrative expenses in the Consolidated Condensed Statements of Earnings according to the classification of the participant’s compensation. Employer Contributions |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 01, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 9. INCOME TAXES Our effective tax rate for the three and nine month periods ended October 1, 2021 was 13.2% and 11.1% as compared to 13.4% and 17.7%, respectively, for the three and nine month periods ended September 25, 2020. The effective tax rate for the three month period ended October 1, 2021 was relatively consistent with the effective tax rate for the three month period ended September 25, 2020. The year-over-year decrease in the effective tax rate for the nine month period ended October 1, 2021 as compared to the nine month period ended September 25, 2020 was due primarily to a permanent difference on the gain on our Retained Vontier Shares due to the tax-free treatment of our disposition of the shares through the Debt-for-Equity Exchange, a reduction to our uncertain tax positions, and increases in certain federal tax benefits for the nine month period ended October 1, 2021. Additionally, the tax costs incurred during the nine month period ended September 25, 2020 associated with the repatriation of a portion of our previously reinvested earnings outside of the United States contributed to the year-over year decrease in the effective tax rate for the nine month period ended October 1, 2021. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 01, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 10. 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 October 1, 2021, approximately 19 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 2020 Annual Report on Form 10-K. Stock-based Compensation Expense Stock-based compensation has been recognized as a component of Selling, general and administrative expenses in the 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 Nine Months Ended October 1, 2021 September 25, 2020 October 1, 2021 September 25, 2020 Stock Awards: Pretax compensation expense $ 11.3 $ 9.5 $ 34.0 $ 27.7 Income tax benefit (2.1) (1.7) (5.9) (4.6) Stock Award expense, net of income taxes 9.2 7.8 28.1 23.1 Stock options: Pretax compensation expense 7.1 6.1 21.2 17.6 Income tax benefit (1.3) (0.8) (3.8) (2.6) Stock option expense, net of income taxes 5.8 5.3 17.4 15.0 Total stock-based compensation: Pretax compensation expense 18.4 15.6 55.2 45.3 Income tax benefit (3.4) (2.5) (9.7) (7.2) Total stock-based compensation expense, net of income taxes $ 15.0 $ 13.1 $ 45.5 $ 38.1 The following summarizes the unrecognized compensation cost for the Stock Plan awards as of October 1, 2021. 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 $ 89.6 Stock options 55.2 Total unrecognized compensation cost $ 144.8 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 01, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11. COMMITMENTS AND CONTINGENCIES For a description of our litigation and contingencies and additional information about our leases, refer to Note 16 and Note 10, respectively, in our 2020 Annual Report on Form 10-K. Warranty 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, 2020 $ 24.9 Accruals for warranties issued during the period 13.0 Settlements made (12.1) Balance, October 1, 2021 $ 25.8 Leases Operating lease cost for the three month periods ended October 1, 2021 and September 25, 2020 was $15 million and $14 million, respectively. Operating lease cost for the nine month periods ended October 1, 2021 and September 25, 2020 was $45 million and $44 million, respectively. During the nine month periods ended October 1, 2021 and September 25, 2020, cash paid for operating leases included in operating cash flows was $40 million and $37 million, respectively. Right-of-use assets obtained in exchange for operating lease obligations were $24 million and $34 million during the nine month periods ended October 1, 2021 and September 25, 2020, respectively. |
Net Earnings Per Share
Net Earnings Per Share | 9 Months Ended |
Oct. 01, 2021 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | NOTE 12. 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. Anti-dilutive options excluded from the diluted EPS calculation for the three month periods ended October 1, 2021 and September 25, 2020 were 0.2 million and 5.3 million, respectively. There were 0.3 million and 5.5 million anti-dilutive options excluded for the nine month periods ended October 1, 2021 and September 25, 2020, 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. Because the fair value of our common stock is below the conversion price, the Convertible Notes had no impact on our earnings per share for the three and nine month periods ended October 1, 2021 and September 25, 2020. On July 1, 2021, all outstanding shares of our 5.0% Mandatory Convertible Preferred Stock (“MCPS”) converted at a rate of 14.0978 common shares per share of preferred stock into an aggregate of approximately 19.4 million shares (net of fractional shares) of the Company’s common stock, pursuant to the terms of the Certificate of Designation governing the Series A Preferred Stock. Fortive issued cash in lieu of fractional shares of common stock in the conversion. These payments were recorded as a reduction to additional paid-in capital. The final dividend of $12.50 per share, or $17.2 million in the aggregate, was paid on July 1, 2021. The impact of the MCPS calculated under the if-converted method was anti-dilutive for the periods in 2021 prior to conversion. Information related to the calculation of net earnings per share of common stock is summarized as follows ($ and shares in millions, except per share amounts): Three Months Ended Nine Months Ended October 1, 2021 September 25, 2020 October 1, 2021 September 25, 2020 Numerator Net earnings from continuing operations $ 151.1 $ 86.0 $ 444.8 $ 200.6 Mandatory convertible preferred stock cumulative dividends — (17.3) (34.5) (51.8) Net earnings attributable to common stockholders from continuing operations $ 151.1 $ 68.7 $ 410.3 $ 148.8 Denominator Weighted average common shares outstanding used in basic earnings per share 358.9 337.6 345.6 337.3 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive Stock Awards 3.3 3.2 3.2 2.9 Weighted average common shares outstanding used in diluted earnings per share 362.2 340.8 348.8 340.2 Net earnings from continuing operations per common share - Basic $ 0.42 $ 0.20 $ 1.19 $ 0.44 Net earnings from continuing operations per common share - Diluted $ 0.42 $ 0.20 $ 1.18 $ 0.44 We declared and paid cash dividends per common share for the periods as presented below. We declared and paid the MCPS dividend in the first quarter of 2021, and declared and paid the final dividend in the second quarter of 2021, while the MCPS dividends for the first, second and third quarter of 2020 were declared, accrued, and paid as follows: Dividend Per Amount Dividend per MCPS Amount 2021: First quarter $ 0.07 $ 23.7 $ 12.5 $ 17.3 Second quarter 0.07 23.7 12.5 17.2 Third quarter 0.07 25.2 — — Total $ 0.21 $ 72.6 $ 25.0 $ 34.5 2020: First quarter $ 0.07 $ 23.5 $ 12.5 $ 17.3 Second quarter 0.07 23.6 12.5 17.2 Third quarter 0.07 23.6 12.5 17.3 Total $ 0.21 $ 70.7 $ 37.5 $ 51.8 * The sum of the components of total dividends paid may not equal the total amount due to rounding. |
Segment Information
Segment Information | 9 Months Ended |
Oct. 01, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 13. SEGMENT INFORMATION We report our results in three separate business segments consisting of Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions. Our chief operating decision maker assesses performance and allocates resources based on our operating segments, which are also our reportable segments. 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 Nine Months Ended October 1, 2021 September 25, 2020 October 1, 2021 September 25, 2020 Sales: Intelligent Operating Solutions $ 535.4 $ 459.1 $ 1,588.1 $ 1,338.8 Precision Technologies 455.7 418.5 1,375.0 1,187.1 Advanced Healthcare Solutions 308.4 282.2 915.3 783.6 Total $ 1,299.5 $ 1,159.8 $ 3,878.4 $ 3,309.5 Operating Profit: Intelligent Operating Solutions $ 90.0 $ 77.5 $ 313.4 $ 213.0 Precision Technologies 101.1 82.1 301.1 232.7 Advanced Healthcare Solutions 34.4 1.8 75.8 (15.9) Other (24.7) (23.8) (80.6) (74.2) Total Operating Profit 200.8 137.6 609.7 355.6 Interest expense, net (25.1) (36.9) (78.0) (111.7) Loss on extinguishment of debt — — (104.9) — Gain on investment in Vontier Corporation — — 57.0 — Gain on litigation dismissal — — 26.0 — Other non-operating expense, net (1.6) (1.4) (9.5) (0.3) Earnings from continuing operations before income taxes $ 174.1 $ 99.3 $ 500.3 $ 243.6 |
Business Overview (Policies)
Business Overview (Policies) | 9 Months Ended |
Oct. 01, 2021 | |
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 designated our ¥13.8 billion senior unsecured term facility loan and our Euro-denominated commercial paper outstanding during the nine month period ended September 25, 2020 as net investment hedges of our investment in certain foreign operations; we exited our Euro-denominated commercial paper positions during the second quarter of 2020 and repaid our ¥13.8 billion senior unsecured term facility loan during the fourth quarter of 2020. As of October 1, 2021 and December 31, 2020, we had no designated net investment hedges. |
Allowances for Doubtful Accounts | Allowances for Doubtful AccountsAll trade accounts and unbilled receivables are reported in the Consolidated Condensed Balance Sheet adjusted for any write-offs and net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from our unbilled and trade accounts receivable portfolios over the life of the underlying assets. Additions to the allowances are charged to current period earnings, amounts determined to be uncollectible are charged directly against the allowances, while amounts recovered on previously written-off accounts increase the allowances. |
Recently Issued Accounting Standard | Recently Issued Accounting Standard In August 2020, the Financial Accounting Standards Board issued Accounting Standards Update No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity |
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) for identical assets or liabilities in active markets. • 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. |
Sales | We derive revenues primarily from the sale of products, software, and services. Revenue is recognized when control of promised products, software, or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products, software, or services. Sales of products and software includes revenues from the sale of products and equipment, software product offerings, and equipment rentals. Sales of services 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 $77 million as of October 1, 2021 and $56 million as of December 31, 2020. 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 software arrangements. Deferred sales-related commissions are generally not capitalized as the amortization period is one year or less, and we elected to use the practical expedient to expense these sales commissions as incurred. As of October 1, 2021 and December 31, 2020, we had $28 million and $31 million, respectively, in net revenue-related contract assets primarily related to certain software contracts. Revenue-related contract assets are recorded in the Prepaid expenses and other current assets and Other assets line items in our Condensed Consolidated Balance Sheets. These assets have estimated useful lives between 3 and 8 years. Impairment losses recognized on our revenue-related contract assets were immaterial during the three and nine month periods ended October 1, 2021 and September 25, 2020. Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to PCS and extended warranty sales, where in most cases we receive up-front payment and recognize revenue over the support term. We classify deferred revenue as |
Business Overview (Tables)
Business Overview (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Reclassification of Accumulated Other Comprehensive Income | The changes in AOCI by component are summarized below ($ in millions): Foreign Pension adjustments (a) Total For the Three Months Ended October 1, 2021: Balance, July 2, 2021 $ (72.1) $ (85.2) $ (157.3) Other comprehensive income (loss) before reclassifications, net of income taxes (35.7) — (35.7) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 1.2 (b) 1.2 Income tax impact — (0.3) (0.3) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.9 0.9 Net current period other comprehensive income (loss), net of income taxes (35.7) 0.9 (34.8) Balance, October 1, 2021 $ (107.8) $ (84.3) $ (192.1) For the Three Months Ended September 25, 2020: Balance, June 26, 2020 $ (79.1) $ (77.5) $ (156.6) Other comprehensive income (loss) before reclassifications, net of income taxes 63.9 — 63.9 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 1.2 (b) 1.2 Income tax impact — (0.2) (0.2) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 1.0 1.0 Net current period other comprehensive income (loss), net of income taxes 63.9 1.0 64.9 Balance, September 25, 2020 $ (15.2) $ (76.5) $ (91.7) Foreign Pension adjustments (a) Total For the Nine Months Ended October 1, 2021: Balance, December 31, 2020 $ (54.0) $ (87.1) $ (141.1) Other comprehensive income (loss) before reclassifications, net of income taxes (53.8) — (53.8) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 3.7 (b) 3.7 Income tax impact — (0.9) (0.9) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 2.8 2.8 Net current period other comprehensive income (loss) (53.8) 2.8 (51.0) Balance, October 1, 2021 $ (107.8) $ (84.3) $ (192.1) For the Nine Months Ended September 25, 2020: Balance, December 31, 2019 $ 21.2 $ (77.5) $ (56.3) Other comprehensive income (loss) before reclassifications, net of income taxes (36.4) — (36.4) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 1.2 (b) 1.2 Income tax impact — (0.2) (0.2) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 1.0 1.0 Net current period other comprehensive income (loss) (36.4) 1.0 (35.4) Balance, September 25, 2020 $ (15.2) $ (76.5) $ (91.7) (a) Includes balances relating to defined benefit plans, supplemental executive retirement plans, and other postretirement employee benefit plans. (b) This component of AOCI is included in the computation of net periodic pension cost (refer to Note 8 for additional details). |
Schedule of Accounts Receivable, Allowance for Credit Loss | The following is a rollforward of the aggregated allowance for credit losses related to our trade accounts receivables as of October 1, 2021 ($ in millions): Balance, December 31, 2020 $ 42.5 Provision (0.4) Write-offs (6.1) Foreign currency exchange and other 0.3 Balance, October 1, 2021 $ 36.3 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary estimated fair value of the assets acquired and liabilities assumed from ServiceChannel as of October 1, 2021 ($ in millions): Goodwill $ 897.3 Other intangible assets, primarily customer relationships, technology, database, and trade names 343.8 Other assets and liabilities, net (82.4) Net cash consideration $ 1,158.7 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Key Components of Discontinued Operations | The key components of income from discontinued operations for the three and nine month periods ended October 1, 2021 and September 25, 2020 were as follows ($ in millions): Three Months Ended Nine Months Ended October 1, 2021 September 25, 2020 October 1, 2021 September 25, 2020 Sales $ — $ 746.7 $ — $ 1,889.6 Cost of sales — (415.3) — (1,064.2) Selling, general and administrative expenses (0.3) (127.1) (3.5) (380.7) Research and development expenses — (31.6) — (94.7) Goodwill impairment — — — (85.3) Interest expense and other income, net — (7.0) 0.1 (19.3) Earnings before income taxes (0.3) 165.7 (3.4) 245.4 Income taxes — (25.9) 0.5 (48.3) Net earnings from discontinued operations $ (0.3) $ 139.8 $ (2.9) $ 197.1 The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company’s Consolidated Balance Sheets ($ in millions): October 1, 2021 December 31, 2020 ASSETS Other current assets $ — $ 30.4 Total assets, discontinued operations $ — $ 30.4 LIABILITIES Current liabilities: Accrued expenses and other current liabilities $ (1.2) $ (33.3) Total liabilities, discontinued operations $ (1.2) $ (33.3) |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following is a rollforward of our carrying value of goodwill by segment ($ in millions): Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Total Goodwill Balance, December 31, 2020 $ 3,268.8 $ 1,867.9 $ 2,222.5 $ 7,359.2 Measurement period adjustments for 2020 acquisitions 0.5 — (4.0) (3.5) Attributable to 2021 acquisitions 897.3 — — 897.3 Foreign currency translation and other (13.3) (19.7) 1.5 (31.5) Balance, October 1, 2021 $ 4,153.3 $ 1,848.2 $ 2,220.0 $ 8,221.5 |
Schedule of Indefinite Lived Intangible Assets | The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset ($ in millions): October 1, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangibles: Patents and technology $ 1,051.8 $ (449.4) $ 983.3 $ (401.1) Customer relationships and other intangibles 3,106.5 (1,008.8) 2,958.3 (896.8) Trademarks and trade names 67.2 (2.3) 18.0 (1.4) Total finite-lived intangibles 4,225.5 (1,460.5) 3,959.6 (1,299.3) Indefinite-lived intangibles: Trademarks and trade names 627.0 — 630.3 — Total intangibles $ 4,852.5 $ (1,460.5) $ 4,589.9 $ (1,299.3) Finite-lived intangible assets are amortized over the shorter of their legal or estimated useful lives. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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 Significant Other Significant Total October 1, 2021 Deferred compensation liabilities $ — $ 40.1 $ — $ 40.1 December 31, 2020 Investment in Vontier $ 1,119.2 $ — $ — $ 1,119.2 Deferred compensation liabilities — 34.8 — 34.8 |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amount and fair value of financial instruments are as follows ($ in millions): October 1, 2021 December 31, 2020 Carrying Amount Fair Value Carrying Amount Fair Value Current portion of long-term debt $ 1,143.2 $ 1,164.1 $ 1,399.8 $ 1,400.0 Long-term debt, net of current maturities $ 1,442.1 $ 1,627.2 $ 2,830.3 $ 3,155.5 |
Financing and Capital (Tables)
Financing and Capital (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The carrying value of the components of our long-term debt were as follows ($ in millions): October 1, 2021 December 31, 2020 3.15% senior unsecured notes due 2026 $ 894.9 $ 894.1 4.30% senior unsecured notes due 2046 547.2 547.2 0.875% senior convertible notes due 2022 1,143.2 1,389.0 Term Loan due May 2021 — 1,000.0 Term Loan due March 2021 — 399.8 Long-term debt 2,585.3 4,230.1 Less: current portion of long-term debt 1,143.2 1,399.8 Long-term debt, net of current maturities $ 1,442.1 $ 2,830.3 |
Schedule of Outstanding Paper Programs | The details of our outstanding Commercial Paper Programs as of October 1, 2021 were as follows ($ in millions): Carrying value Annual effective rate Weighted average remaining maturity (in days) U.S. dollar-denominated commercial paper $ 215.0 0.19 % 12 |
Sales (Tables)
Sales (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Liabilities | Our contract liabilities consisted of the following ($ in millions): October 1, 2021 December 31, 2020 Deferred revenue - current $ 400.5 $ 376.4 Deferred revenue - noncurrent 30.8 34.2 Total contract liabilities $ 431.3 $ 410.6 |
Schedule of Remaining Performance Obligations | The aggregate performance obligations attributable to each of our segments is as follows ($ in millions): October 1, 2021 Intelligent Operating Solutions $ 109.4 Precision Technologies 25.9 Advanced Healthcare Solutions 7.9 Total remaining performance obligations $ 143.2 |
Schedule of Disaggregation of Revenue | Disaggregation of revenue for the three month period ended October 1, 2021 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 1,105.6 $ 462.7 $ 401.0 $ 241.9 Sales of services 193.9 72.7 54.7 66.5 Total $ 1,299.5 $ 535.4 $ 455.7 $ 308.4 Geographic: United States $ 683.7 $ 283.8 $ 234.6 $ 165.3 China 154.8 48.8 75.8 30.2 All other (each country individually less than 5% of total sales) 461.0 202.8 145.3 112.9 Total $ 1,299.5 $ 535.4 $ 455.7 $ 308.4 End markets: (a) Direct sales: Medical $ 327.6 $ 10.5 $ 30.7 $ 286.4 Industrial & Manufacturing 313.5 204.4 103.2 5.9 Utilities & Power 97.3 55.3 42.0 — Government 100.1 54.6 33.4 12.1 Communication, Electronics & Semiconductor 103.4 30.6 72.3 0.5 Aerospace & Defense 60.6 — 60.6 — Oil & Gas 64.6 62.4 2.2 — Retail & Consumer 52.1 31.5 20.6 — Other 117.7 56.5 61.1 0.1 Total direct sales 1,236.9 505.8 426.1 305.0 Distributors 62.6 29.6 29.6 3.4 Total $ 1,299.5 $ 535.4 $ 455.7 $ 308.4 (a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer. Disaggregation of revenue for the three month period ended September 25, 2020 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 988.1 $ 409.3 $ 366.2 $ 212.6 Sales of services 171.7 49.8 52.3 69.6 Total $ 1,159.8 $ 459.1 $ 418.5 $ 282.2 Geographic: United States $ 610.6 $ 241.1 $ 213.9 $ 155.6 China 142.0 43.2 71.0 27.8 All other (each country individually less than 5% of total sales) 407.2 174.8 133.6 98.8 Total $ 1,159.8 $ 459.1 $ 418.5 $ 282.2 End markets: (a) Direct sales: Medical $ 304.7 $ 9.2 $ 29.7 $ 265.8 Industrial & Manufacturing 259.8 168.6 86.1 5.1 Utilities & Power 89.1 51.1 38.0 — Government 86.2 42.3 36.4 7.5 Communications, Electronics & Semiconductor 73.2 28.8 43.9 0.5 Aerospace & Defense 66.3 8.6 57.7 — Oil & Gas 54.7 52.5 2.2 — Retail & Consumer 39.1 20.4 18.7 — Other 117.6 52.4 65.2 — Total direct sales 1,090.7 433.9 377.9 278.9 Distributors 69.1 25.2 40.6 3.3 Total $ 1,159.8 $ 459.1 $ 418.5 $ 282.2 (a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer. Disaggregation of revenue for the nine month period ended October 1, 2021 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 3,318.8 $ 1,394.1 $ 1,211.6 $ 713.1 Sales of services 559.6 194.0 163.4 202.2 Total $ 3,878.4 $ 1,588.1 $ 1,375.0 $ 915.3 Geographic: United States $ 1,976.1 $ 808.7 $ 690.0 $ 477.4 China 482.6 162.0 234.3 86.3 All other (each country individually less than 5% of total sales) 1,419.7 617.4 450.7 351.6 Total $ 3,878.4 $ 1,588.1 $ 1,375.0 $ 915.3 End markets: (a) Direct sales: Medical $ 983.0 $ 28.3 $ 99.6 $ 855.1 Industrial & Manufacturing 927.9 601.6 308.6 17.7 Utilities & Power 290.0 166.8 123.2 — Government 287.0 150.7 105.7 30.6 Communication, Electronics & Semiconductor 288.8 90.9 196.2 1.7 Aerospace & Defense 181.7 — 181.7 — Oil & Gas 194.6 186.9 7.7 — Retail & Consumer 142.2 73.7 68.5 — Other 379.9 184.3 195.5 0.1 Total direct sales 3,675.1 1,483.2 1,286.7 905.2 Distributors 203.3 104.9 88.3 10.1 Total $ 3,878.4 $ 1,588.1 $ 1,375.0 $ 915.3 (a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer. Disaggregation of revenue for the nine month period ended September 25, 2020 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 2,820.6 $ 1,189.4 $ 1,036.6 $ 594.6 Sales of services 488.9 149.4 150.5 189 Total $ 3,309.5 $ 1,338.8 $ 1,187.1 $ 783.6 Geographic: United States $ 1,773.8 $ 710.7 $ 616.4 $ 446.7 China 391.5 130.4 192.5 68.6 All other (each country individually less than 5% of total sales) 1,144.2 497.7 378.2 268.3 Total $ 3,309.5 $ 1,338.8 $ 1,187.1 $ 783.6 End markets: (a) Direct sales: Medical $ 849.1 $ 28.7 $ 84.5 $ 735.9 Industrial & Manufacturing 750.7 490.3 244.8 15.6 Utilities & Power 257.1 148.6 108.5 — Government 244.0 119.6 102.6 21.8 Communications, Electronics & Semiconductor 201.0 79.8 119.9 1.3 Aerospace & Defense 179.5 15.4 164.1 — Oil & Gas 164.3 155.4 8.9 — Retail & Consumer 123.1 64.3 58.8 — Other 342.2 163.3 178.9 — Total direct sales 3,111.0 1,265.4 1,071.0 774.6 Distributors 198.5 73.4 116.1 9.0 Total $ 3,309.5 $ 1,338.8 $ 1,187.1 $ 783.6 (a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer. |
Pension Plans (Tables)
Pension Plans (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Pension Costs | The following sets forth the components of our net periodic costs associated with our noncontributory defined benefit pension plans ($ in millions): Three Months Ended Nine Months Ended October 1, 2021 September 25, 2020 October 1, 2021 September 25, 2020 U.S. Pension Benefits: Interest cost $ 0.3 $ 0.3 $ 0.7 $ 0.9 Expected return on plan assets (0.3) (0.3) (0.7) (0.9) Net periodic pension cost $ — $ — $ — $ — Non-U.S. Pension Benefits: Service cost $ 1.0 $ 1.1 $ 3.0 $ 3.3 Interest cost 0.7 1.0 2.3 3.0 Expected return on plan assets (1.3) (1.4) (3.9) (4.0) Amortization of net loss 1.0 1.1 3.2 3.1 Amortization of prior service cost 0.1 0.1 0.3 0.3 Net periodic pension cost $ 1.5 $ 1.9 $ 4.9 $ 5.7 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Share-based Payment Arrangement [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 Nine Months Ended October 1, 2021 September 25, 2020 October 1, 2021 September 25, 2020 Stock Awards: Pretax compensation expense $ 11.3 $ 9.5 $ 34.0 $ 27.7 Income tax benefit (2.1) (1.7) (5.9) (4.6) Stock Award expense, net of income taxes 9.2 7.8 28.1 23.1 Stock options: Pretax compensation expense 7.1 6.1 21.2 17.6 Income tax benefit (1.3) (0.8) (3.8) (2.6) Stock option expense, net of income taxes 5.8 5.3 17.4 15.0 Total stock-based compensation: Pretax compensation expense 18.4 15.6 55.2 45.3 Income tax benefit (3.4) (2.5) (9.7) (7.2) Total stock-based compensation expense, net of income taxes $ 15.0 $ 13.1 $ 45.5 $ 38.1 |
Schedule of Future Compensation | Future compensation amounts will be adjusted for any changes in estimated forfeitures ($ in millions): Stock Awards $ 89.6 Stock options 55.2 Total unrecognized compensation cost $ 144.8 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
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, 2020 $ 24.9 Accruals for warranties issued during the period 13.0 Settlements made (12.1) Balance, October 1, 2021 $ 25.8 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
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 Nine Months Ended October 1, 2021 September 25, 2020 October 1, 2021 September 25, 2020 Numerator Net earnings from continuing operations $ 151.1 $ 86.0 $ 444.8 $ 200.6 Mandatory convertible preferred stock cumulative dividends — (17.3) (34.5) (51.8) Net earnings attributable to common stockholders from continuing operations $ 151.1 $ 68.7 $ 410.3 $ 148.8 Denominator Weighted average common shares outstanding used in basic earnings per share 358.9 337.6 345.6 337.3 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive Stock Awards 3.3 3.2 3.2 2.9 Weighted average common shares outstanding used in diluted earnings per share 362.2 340.8 348.8 340.2 Net earnings from continuing operations per common share - Basic $ 0.42 $ 0.20 $ 1.19 $ 0.44 Net earnings from continuing operations per common share - Diluted $ 0.42 $ 0.20 $ 1.18 $ 0.44 |
Schedule of Dividends Declared | We declared and paid cash dividends per common share for the periods as presented below. We declared and paid the MCPS dividend in the first quarter of 2021, and declared and paid the final dividend in the second quarter of 2021, while the MCPS dividends for the first, second and third quarter of 2020 were declared, accrued, and paid as follows: Dividend Per Amount Dividend per MCPS Amount 2021: First quarter $ 0.07 $ 23.7 $ 12.5 $ 17.3 Second quarter 0.07 23.7 12.5 17.2 Third quarter 0.07 25.2 — — Total $ 0.21 $ 72.6 $ 25.0 $ 34.5 2020: First quarter $ 0.07 $ 23.5 $ 12.5 $ 17.3 Second quarter 0.07 23.6 12.5 17.2 Third quarter 0.07 23.6 12.5 17.3 Total $ 0.21 $ 70.7 $ 37.5 $ 51.8 * The sum of the components of total dividends paid may not equal the total amount due to rounding. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Our segment results are as follows ($ in millions): Three Months Ended Nine Months Ended October 1, 2021 September 25, 2020 October 1, 2021 September 25, 2020 Sales: Intelligent Operating Solutions $ 535.4 $ 459.1 $ 1,588.1 $ 1,338.8 Precision Technologies 455.7 418.5 1,375.0 1,187.1 Advanced Healthcare Solutions 308.4 282.2 915.3 783.6 Total $ 1,299.5 $ 1,159.8 $ 3,878.4 $ 3,309.5 Operating Profit: Intelligent Operating Solutions $ 90.0 $ 77.5 $ 313.4 $ 213.0 Precision Technologies 101.1 82.1 301.1 232.7 Advanced Healthcare Solutions 34.4 1.8 75.8 (15.9) Other (24.7) (23.8) (80.6) (74.2) Total Operating Profit 200.8 137.6 609.7 355.6 Interest expense, net (25.1) (36.9) (78.0) (111.7) Loss on extinguishment of debt — — (104.9) — Gain on investment in Vontier Corporation — — 57.0 — Gain on litigation dismissal — — 26.0 — Other non-operating expense, net (1.6) (1.4) (9.5) (0.3) Earnings from continuing operations before income taxes $ 174.1 $ 99.3 $ 500.3 $ 243.6 |
Business Overview - Narrative (
Business Overview - Narrative (Details) ¥ in Millions, shares in Millions, $ in Millions | Oct. 09, 2020USD ($) | Sep. 25, 2020USD ($) | Sep. 25, 2020USD ($) | Jan. 19, 2021USD ($)shares | Sep. 25, 2020JPY (¥) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
(Loss) gain in OCI related to net investment hedge | $ (2) | $ 2 | |||
Vontier | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Investment balance (in shares) | shares | 33.5 | ||||
Principal amount | $ 1,100 | ||||
Yen variable interest rate term loan due 2022 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Term loan facility, aggregate amount | ¥ | ¥ 13,800 | ||||
Vontier | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Percentage of shares distributed in separation | 80.10% | ||||
Distribution ratio of vontier shares | 0.40 | ||||
Percentage of equity investment retained after disposal | 19.90% | ||||
Proceeds from divestiture of businesses | $ 1,800 | ||||
Discontinued operation consideration | 1,600 | ||||
Preliminary adjustment for excess cash balances remaining | $ 202 | ||||
Principal amount | $ 1,100 |
Business Overview - Accumulated
Business Overview - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Oct. 01, 2021 | Jul. 02, 2021 | Apr. 02, 2021 | Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Oct. 01, 2021 | Sep. 25, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Beginning balance | $ 8,972.7 | $ 8,972.7 | ||||||
Other comprehensive income (loss) before reclassifications, net of income taxes | $ (35.7) | $ 63.9 | (53.8) | $ (36.4) | ||||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||
Increase (Decrease) | 1.2 | 1.2 | 3.7 | 1.2 | ||||
Income tax impact | (0.3) | (0.2) | (0.9) | (0.2) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0.9 | 1 | 2.8 | 1 | ||||
Total other comprehensive income (loss), net of income taxes | (34.8) | 64.9 | (51) | (35.4) | ||||
Ending balance | 9,322.8 | 9,322.8 | ||||||
Foreign currency translation adjustments | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (72.1) | (54) | (79.1) | $ 21.2 | (54) | 21.2 | ||
Other comprehensive income (loss) before reclassifications, net of income taxes | (35.7) | 63.9 | (53.8) | (36.4) | ||||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||
Increase (Decrease) | 0 | 0 | 0 | 0 | ||||
Income tax impact | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0 | 0 | 0 | 0 | ||||
Total other comprehensive income (loss), net of income taxes | (35.7) | 63.9 | (53.8) | (36.4) | ||||
Ending balance | (107.8) | $ (72.1) | (15.2) | $ (79.1) | (107.8) | (15.2) | ||
Pension adjustments | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (85.2) | (87.1) | (77.5) | (77.5) | (87.1) | (77.5) | ||
Other comprehensive income (loss) before reclassifications, net of income taxes | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||
Increase (Decrease) | 1.2 | 1.2 | 3.7 | 1.2 | ||||
Income tax impact | (0.3) | (0.2) | (0.9) | (0.2) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0.9 | 1 | 2.8 | 1 | ||||
Total other comprehensive income (loss), net of income taxes | 0.9 | 1 | 2.8 | 1 | ||||
Ending balance | (84.3) | (85.2) | (76.5) | (77.5) | (84.3) | (76.5) | ||
Accumulated Other Comprehensive Income (Loss) | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (157.3) | (174.8) | (141.1) | (156.6) | (193.6) | (56.3) | (141.1) | (56.3) |
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||
Total other comprehensive income (loss), net of income taxes | (34.8) | 17.5 | (33.7) | 64.9 | 37 | (137.3) | ||
Ending balance | $ (192.1) | $ (157.3) | $ (174.8) | $ (91.7) | $ (156.6) | $ (193.6) | $ (192.1) | $ (91.7) |
Business Overview - Allowance f
Business Overview - Allowance for Credit Losses Rollforward (Details) $ in Millions | 9 Months Ended |
Oct. 01, 2021USD ($) | |
Accounts And Financing Receivable, Allowance For Credit Loss [Roll Forward] | |
Beginning balance | $ 42.5 |
Provision | (0.4) |
Write-offs | (6.1) |
Foreign currency exchange and other | 0.3 |
Ending balance | $ 36.3 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Millions | Aug. 24, 2021USD ($) | Apr. 01, 2019USD ($)country | Oct. 01, 2021USD ($) | Sep. 25, 2020USD ($) | Oct. 01, 2021USD ($)country | Sep. 25, 2020USD ($) | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | |||||||
Prepaid acquisition asset related to remaining non-principal countries | $ 1 | $ 1 | |||||
Gain on litigation dismissal | 0 | $ 0 | 26 | $ 0 | |||
Goodwill | $ 8,221.5 | $ 8,221.5 | $ 7,359.2 | ||||
Acquisitions, ASP | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase price | $ 2,700 | ||||||
Number of principal countries | country | 20 | ||||||
Number of non-principal countries | country | 39 | ||||||
Number of principal countries, closed | country | 20 | ||||||
Number of non-principal countries, closed | country | 38 | ||||||
Percent of preliminary valuation in principal countries | 99.00% | 99.00% | |||||
Percent of preliminary valuation in non-principal countries | 1.00% | 1.00% | |||||
Litigation liability assumed | $ 26 | $ 26 | |||||
Gain on litigation dismissal | 26 | ||||||
Goodwill | 897.3 | 897.3 | |||||
Service Channel | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase price | $ 1,200 | ||||||
Deferred compensation consideration | $ 36 | ||||||
Revenue of prior fiscal year | $ 70 | ||||||
Goodwill | 897 | 897 | |||||
Revenue of acquiree since acquisition date | 10.1 | 10.1 | |||||
Operating loss of acquiree since acquisition date | 19.5 | 19.5 | |||||
Amortization of intangibles and integration and transaction costs attributable to acquiree | 18.2 | 18.2 | |||||
Transaction-related costs | $ 13.2 | $ 13.2 |
Acquisitions - Recognized Ident
Acquisitions - Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Oct. 01, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||
Goodwill | $ 8,221.5 | $ 7,359.2 |
Acquisitions, ASP | ||
Business Acquisition [Line Items] | ||
Goodwill | 897.3 | |
Other intangible assets, primarily customer relationships, technology, database, and trade names | 343.8 | |
Other assets and liabilities, net | (82.4) | |
Net cash consideration | $ 1,158.7 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 27, 2020USD ($) | |
Telematics Reporting Unit | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Goodwill impairment | $ 85.3 |
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 | 9 Months Ended | |||
Oct. 01, 2021 | Sep. 25, 2020 | Oct. 01, 2021 | Sep. 25, 2020 | Dec. 31, 2020 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||
Net earnings from discontinued operations | $ (0.3) | $ 139.8 | $ (2.9) | $ 197.1 | |
ASSETS | |||||
Total assets, discontinued operations | 0 | 0 | $ 30.4 | ||
Current liabilities: | |||||
Total liabilities, discontinued operations | (1.2) | (1.2) | (33.3) | ||
Vontier | Discontinued Operations | |||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||
Sales | 0 | 746.7 | 0 | 1,889.6 | |
Cost of sales | 0 | (415.3) | 0 | (1,064.2) | |
Selling, general and administrative expenses | (0.3) | (127.1) | (3.5) | (380.7) | |
Research and development expenses | 0 | (31.6) | 0 | (94.7) | |
Goodwill impairment | 0 | 0 | 0 | (85.3) | |
Interest expense and other income, net | 0 | (7) | 0.1 | (19.3) | |
Earnings before income taxes | (0.3) | 165.7 | (3.4) | 245.4 | |
Income taxes | 0 | (25.9) | 0.5 | (48.3) | |
Net earnings from discontinued operations | (0.3) | $ 139.8 | (2.9) | $ 197.1 | |
ASSETS | |||||
Other current assets | 0 | 0 | 30.4 | ||
Total assets, discontinued operations | 0 | 0 | 30.4 | ||
Current liabilities: | |||||
Accrued expenses and other current liabilities | (1.2) | (1.2) | (33.3) | ||
Total liabilities, discontinued operations | $ (1.2) | $ (1.2) | $ (33.3) |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Rollforward of Goodwill (Details) $ in Millions | 9 Months Ended |
Oct. 01, 2021USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 7,359.2 |
Measurement period adjustments for 2020 acquisitions | (3.5) |
Attributable to 2021 acquisitions | 897.3 |
Foreign currency translation and other | (31.5) |
Ending balance | 8,221.5 |
Intelligent Operating Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 3,268.8 |
Measurement period adjustments for 2020 acquisitions | 0.5 |
Attributable to 2021 acquisitions | 897.3 |
Foreign currency translation and other | (13.3) |
Ending balance | 4,153.3 |
Precision Technologies | |
Goodwill [Roll Forward] | |
Beginning balance | 1,867.9 |
Measurement period adjustments for 2020 acquisitions | 0 |
Attributable to 2021 acquisitions | 0 |
Foreign currency translation and other | (19.7) |
Ending balance | 1,848.2 |
Advanced Healthcare Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 2,222.5 |
Measurement period adjustments for 2020 acquisitions | (4) |
Attributable to 2021 acquisitions | 0 |
Foreign currency translation and other | 1.5 |
Ending balance | $ 2,220 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Oct. 01, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, gross carrying amount | $ 4,225.5 | $ 3,959.6 |
Finite-lived intangibles, accumulated amortization | (1,460.5) | (1,299.3) |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill), Total | 4,852.5 | 4,589.9 |
Trademarks and trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangibles, gross carrying amount | 627 | 630.3 |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, gross carrying amount | 1,051.8 | 983.3 |
Finite-lived intangibles, accumulated amortization | (449.4) | (401.1) |
Customer relationships and other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, gross carrying amount | 3,106.5 | 2,958.3 |
Finite-lived intangibles, accumulated amortization | (1,008.8) | (896.8) |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, gross carrying amount | 67.2 | 18 |
Finite-lived intangibles, accumulated amortization | $ (2.3) | $ (1.4) |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Narrative (Details) | 3 Months Ended | 9 Months Ended |
Oct. 01, 2021 | Oct. 01, 2021 | |
Customer Relationships, Developed Technology and Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average life | 12 years | 12 years |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | Oct. 01, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in Vontier | $ 0 | $ 1,119.2 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liabilities | 40.1 | 34.8 |
Investment in Vontier | 1,119.2 | |
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 |
Investment in Vontier | 1,119.2 | |
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 | 40.1 | 34.8 |
Investment in Vontier | 0 | |
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 |
Investment in Vontier | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) shares in Millions, $ in Millions | Jan. 19, 2021 | Oct. 09, 2020 | Oct. 01, 2021 | Sep. 25, 2020 | Oct. 01, 2021 | Sep. 25, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Gain on investment in Vontier Corporation | $ 0 | $ 0 | $ 57 | $ 0 | ||
Loss on extinguishment of debt | $ 0 | $ 0 | 104.9 | $ 0 | ||
Line of Credit | Term Loan due March 2021 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Outstanding borrowings | $ 400 | |||||
Debt term | 364 days | |||||
Line of Credit | Term Loan due May 2021 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Outstanding borrowings | $ 683.2 | |||||
Line of Credit | Delayed-Draw Term Loan Due March 2021 And Delayed-Draw Term Loan Due May 2021 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loss on extinguishment of debt | $ 94.4 | |||||
Vontier | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment balance (in shares) | 33.5 | |||||
Principal amount | $ 1,100 | |||||
Vontier | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Percentage of equity investment retained after disposal | 19.90% | |||||
Principal amount | $ 1,100 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Oct. 01, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current portion of long-term debt, carrying amount | $ 1,143.2 | $ 1,399.8 |
Long-term debt, net of current maturities, carrying value | 1,442.1 | 2,830.3 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current portion of long-term debt, carrying amount | 1,143.2 | 1,399.8 |
Current portion of long-term debt, fair value | 1,164.1 | 1,400 |
Long-term debt, net of current maturities, carrying value | 1,442.1 | 2,830.3 |
Long-term debt, net of current maturities, fair value | $ 1,627.2 | $ 3,155.5 |
Financing and Capital - Compone
Financing and Capital - Components of Debt (Details) - USD ($) $ in Millions | Oct. 01, 2021 | Apr. 02, 2021 | Dec. 31, 2020 | Sep. 25, 2020 | Feb. 22, 2019 |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 2,585.3 | $ 4,230.1 | |||
Less: current portion of long-term debt | 1,143.2 | 1,399.8 | |||
Long-term debt, net of current maturities | 1,442.1 | 2,830.3 | |||
Term Loan due May 2021 | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 1,000 | |||
Term Loan due March 2021 | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 399.8 | |||
Senior Notes | 3.15% senior unsecured notes due 2026 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 894.9 | 894.1 | |||
Interest rate, stated percentage | 3.15% | ||||
Senior Notes | 4.30% senior unsecured notes due 2046 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 547.2 | 547.2 | |||
Interest rate, stated percentage | 4.30% | ||||
Convertible Debt | 0.875% senior convertible notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 1,143.2 | $ 1,389 | |||
Interest rate, stated percentage | 0.875% | 0.875% | 0.875% | 0.875% |
Financing and Capital - Outstan
Financing and Capital - Outstanding Paper Programs (Details) - U.S. dollar-denominated commercial paper - Commercial Paper $ in Millions | 9 Months Ended |
Oct. 01, 2021USD ($) | |
Short-term Debt [Line Items] | |
Carrying value | $ 215 |
Annual effective rate | 0.19% |
Weighted average remaining maturity (in days) | 12 days |
Financing and Capital - Narrati
Financing and Capital - Narrative (Details) $ / shares in Units, shares in Millions | Feb. 09, 2021USD ($) | Jan. 21, 2021USD ($) | Jan. 19, 2021USD ($)shares | Oct. 09, 2020 | Feb. 22, 2019USD ($)$ / shares | Oct. 01, 2021USD ($) | Apr. 02, 2021USD ($) | Sep. 25, 2020USD ($) | Oct. 01, 2021USD ($) | Sep. 25, 2020USD ($) | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |||||||||||
Debt discounts, premiums and issuance costs | $ 21,000,000 | $ 21,000,000 | $ 57,000,000 | ||||||||
Loss on extinguishment of debt | 0 | $ 0 | 104,900,000 | $ 0 | |||||||
Additional Paid-In Capital | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Reduction in additional paid in capital | $ 11,600,000 | $ 11,600,000 | |||||||||
Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Loss on extinguishment of debt | 10,500,000 | ||||||||||
Interest expense | $ 11,100,000 | $ 34,500,000 | |||||||||
0.875% senior convertible notes due 2022 | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 1,300,000,000 | ||||||||||
Proceeds from the issuance of convertible notes | $ 1,400,000,000 | ||||||||||
Interest rate, stated percentage | 0.875% | 0.875% | 0.875% | 0.875% | 0.875% | 0.875% | |||||
Conversion ratio | 0.0109568 | ||||||||||
Initial conversion price (in dollars per share) | $ / shares | $ 91.27 | ||||||||||
Discount at issuance | $ 102,200,000 | ||||||||||
Effective interest rate | 3.38% | ||||||||||
Debt issuance costs | $ 24,300,000 | ||||||||||
Debt instrument, repurchased face amount | $ 281,000,000 | ||||||||||
Interest expense | $ 13,600,000 | $ 40,600,000 | |||||||||
Interest expense related to contractual coupon rate | $ 2,500,000 | 3,200,000 | $ 7,900,000 | 9,500,000 | |||||||
Amortization of debt issuance costs | 1,500,000 | 1,800,000 | 4,700,000 | 5,600,000 | |||||||
Amortization of debt discount | 7,100,000 | $ 8,600,000 | 21,900,000 | $ 25,500,000 | |||||||
Unamortized discount | 102,200,000 | 11,000,000 | $ 11,000,000 | ||||||||
Discount amortization period | 3 years | ||||||||||
Senior Unsecured Notes due 2022, Over-Allotment Option | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 187,500,000 | ||||||||||
Line of Credit | Term Loan due March 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding borrowings | $ 400,000,000 | ||||||||||
Debt term | 364 days | ||||||||||
Line of Credit | Term Loan due May 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding borrowings | $ 683,200,000 | ||||||||||
Payment of outstanding principal | $ 316,800,000 | ||||||||||
Line of Credit | Delayed-Draw Term Loan Due March 2021 And Delayed-Draw Term Loan Due May 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Loss on extinguishment of debt | $ 94,400,000 | ||||||||||
Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding borrowings | 0 | $ 0 | |||||||||
Debt term | 5 years | ||||||||||
Long-term debt | $ 2,000,000,000 | $ 2,000,000,000 | |||||||||
Vontier | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Investment balance (in shares) | shares | 33.5 | ||||||||||
Principal amount | $ 1,100,000,000 |
Sales - Narrative (Details)
Sales - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 01, 2021 | Oct. 01, 2021 | Dec. 31, 2020 | |
Capitalized Contract Cost [Line Items] | |||
Contract assets | $ 77 | $ 77 | $ 56 |
Net revenue-related contract assets | 28 | 28 | $ 31 |
Contract liabilities, revenue recognized | $ 82 | $ 270 | |
Minimum | |||
Capitalized Contract Cost [Line Items] | |||
Useful life | 3 years | 3 years | |
Maximum | |||
Capitalized Contract Cost [Line Items] | |||
Useful life | 8 years | 8 years | |
Maximum | Deferred Sales Commissions | |||
Capitalized Contract Cost [Line Items] | |||
Useful life | 1 year | 1 year |
Sales - Contract liabilities (D
Sales - Contract liabilities (Details) - USD ($) $ in Millions | Oct. 01, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue - current | $ 400.5 | $ 376.4 |
Deferred revenue - noncurrent | 30.8 | 34.2 |
Total contract liabilities | $ 431.3 | $ 410.6 |
Sales - Revenue, Remaining Perf
Sales - Revenue, Remaining Performance Obligation (Details) $ in Millions | Oct. 01, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 143.2 |
Intelligent Operating Solutions | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 109.4 |
Precision Technologies | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 25.9 |
Advanced Healthcare Solutions | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 7.9 |
Sales - Remaining Performance O
Sales - Remaining Performance Obligation, Expected Timing (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-02 | Oct. 01, 2021 |
Period One | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 55.00% |
Remaining performance obligation, expected timing | 2 years |
Period Two | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 85.00% |
Remaining performance obligation, expected timing | 3 years |
Period Three | |
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 | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 25, 2020 | Oct. 01, 2021 | Sep. 25, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total sales | $ 1,299.5 | $ 1,159.8 | $ 3,878.4 | $ 3,309.5 |
Medical | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 327.6 | 304.7 | 983 | 849.1 |
Industrial & Manufacturing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 313.5 | 259.8 | 927.9 | 750.7 |
Utilities & Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 97.3 | 89.1 | 290 | 257.1 |
Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 100.1 | 86.2 | 287 | 244 |
Communication, Electronics & Semiconductor | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 103.4 | 73.2 | 288.8 | 201 |
Aerospace & Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 60.6 | 66.3 | 181.7 | 179.5 |
Oil & Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 64.6 | 54.7 | 194.6 | 164.3 |
Retail & Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 52.1 | 39.1 | 142.2 | 123.1 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 117.7 | 117.6 | 379.9 | 342.2 |
Total direct sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 1,236.9 | 1,090.7 | 3,675.1 | 3,111 |
Distributors | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 62.6 | 69.1 | 203.3 | 198.5 |
Operating Segments | Intelligent Operating Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 535.4 | 459.1 | 1,588.1 | 1,338.8 |
Operating Segments | Intelligent Operating Solutions | Medical | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 10.5 | 9.2 | 28.3 | 28.7 |
Operating Segments | Intelligent Operating Solutions | Industrial & Manufacturing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 204.4 | 168.6 | 601.6 | 490.3 |
Operating Segments | Intelligent Operating Solutions | Utilities & Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 55.3 | 51.1 | 166.8 | 148.6 |
Operating Segments | Intelligent Operating Solutions | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 54.6 | 42.3 | 150.7 | 119.6 |
Operating Segments | Intelligent Operating Solutions | Communication, Electronics & Semiconductor | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 30.6 | 28.8 | 90.9 | 79.8 |
Operating Segments | Intelligent Operating Solutions | Aerospace & Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 0 | 8.6 | 0 | 15.4 |
Operating Segments | Intelligent Operating Solutions | Oil & Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 62.4 | 52.5 | 186.9 | 155.4 |
Operating Segments | Intelligent Operating Solutions | Retail & Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 31.5 | 20.4 | 73.7 | 64.3 |
Operating Segments | Intelligent Operating Solutions | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 56.5 | 52.4 | 184.3 | 163.3 |
Operating Segments | Intelligent Operating Solutions | Total direct sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 505.8 | 433.9 | 1,483.2 | 1,265.4 |
Operating Segments | Intelligent Operating Solutions | Distributors | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 29.6 | 25.2 | 104.9 | 73.4 |
Operating Segments | Precision Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 455.7 | 418.5 | 1,375 | 1,187.1 |
Operating Segments | Precision Technologies | Medical | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 30.7 | 29.7 | 99.6 | 84.5 |
Operating Segments | Precision Technologies | Industrial & Manufacturing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 103.2 | 86.1 | 308.6 | 244.8 |
Operating Segments | Precision Technologies | Utilities & Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 42 | 38 | 123.2 | 108.5 |
Operating Segments | Precision Technologies | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 33.4 | 36.4 | 105.7 | 102.6 |
Operating Segments | Precision Technologies | Communication, Electronics & Semiconductor | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 72.3 | 43.9 | 196.2 | 119.9 |
Operating Segments | Precision Technologies | Aerospace & Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 60.6 | 57.7 | 181.7 | 164.1 |
Operating Segments | Precision Technologies | Oil & Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 2.2 | 2.2 | 7.7 | 8.9 |
Operating Segments | Precision Technologies | Retail & Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 20.6 | 18.7 | 68.5 | 58.8 |
Operating Segments | Precision Technologies | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 61.1 | 65.2 | 195.5 | 178.9 |
Operating Segments | Precision Technologies | Total direct sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 426.1 | 377.9 | 1,286.7 | 1,071 |
Operating Segments | Precision Technologies | Distributors | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 29.6 | 40.6 | 88.3 | 116.1 |
Operating Segments | Advanced Healthcare Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 308.4 | 282.2 | 915.3 | 783.6 |
Operating Segments | Advanced Healthcare Solutions | Medical | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 286.4 | 265.8 | 855.1 | 735.9 |
Operating Segments | Advanced Healthcare Solutions | Industrial & Manufacturing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 5.9 | 5.1 | 17.7 | 15.6 |
Operating Segments | Advanced Healthcare Solutions | Utilities & Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 0 | 0 | 0 | 0 |
Operating Segments | Advanced Healthcare Solutions | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 12.1 | 7.5 | 30.6 | 21.8 |
Operating Segments | Advanced Healthcare Solutions | Communication, Electronics & Semiconductor | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 0.5 | 0.5 | 1.7 | 1.3 |
Operating Segments | Advanced Healthcare Solutions | Aerospace & Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 0 | 0 | 0 | 0 |
Operating Segments | Advanced Healthcare Solutions | Oil & Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 0 | 0 | 0 | 0 |
Operating Segments | Advanced Healthcare Solutions | Retail & Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 0 | 0 | 0 | 0 |
Operating Segments | Advanced Healthcare Solutions | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 0.1 | 0 | 0.1 | 0 |
Operating Segments | Advanced Healthcare Solutions | Total direct sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 305 | 278.9 | 905.2 | 774.6 |
Operating Segments | Advanced Healthcare Solutions | Distributors | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 3.4 | 3.3 | 10.1 | 9 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 683.7 | 610.6 | 1,976.1 | 1,773.8 |
United States | Operating Segments | Intelligent Operating Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 283.8 | 241.1 | 808.7 | 710.7 |
United States | Operating Segments | Precision Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 234.6 | 213.9 | 690 | 616.4 |
United States | Operating Segments | Advanced Healthcare Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 165.3 | 155.6 | 477.4 | 446.7 |
China | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 154.8 | 142 | 482.6 | 391.5 |
China | Operating Segments | Intelligent Operating Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 48.8 | 43.2 | 162 | 130.4 |
China | Operating Segments | Precision Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 75.8 | 71 | 234.3 | 192.5 |
China | Operating Segments | Advanced Healthcare Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 30.2 | 27.8 | 86.3 | 68.6 |
All other (each country individually less than 5% of total sales) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 461 | 407.2 | 1,419.7 | 1,144.2 |
All other (each country individually less than 5% of total sales) | Operating Segments | Intelligent Operating Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 202.8 | 174.8 | 617.4 | 497.7 |
All other (each country individually less than 5% of total sales) | Operating Segments | Precision Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 145.3 | 133.6 | 450.7 | 378.2 |
All other (each country individually less than 5% of total sales) | Operating Segments | Advanced Healthcare Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 112.9 | 98.8 | 351.6 | 268.3 |
Sales of products and software | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 1,105.6 | 988.1 | 3,318.8 | 2,820.6 |
Sales of products and software | Operating Segments | Intelligent Operating Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 462.7 | 409.3 | 1,394.1 | 1,189.4 |
Sales of products and software | Operating Segments | Precision Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 401 | 366.2 | 1,211.6 | 1,036.6 |
Sales of products and software | Operating Segments | Advanced Healthcare Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 241.9 | 212.6 | 713.1 | 594.6 |
Sales of services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 193.9 | 171.7 | 559.6 | 488.9 |
Sales of services | Operating Segments | Intelligent Operating Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 72.7 | 49.8 | 194 | 149.4 |
Sales of services | Operating Segments | Precision Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 54.7 | 52.3 | 163.4 | 150.5 |
Sales of services | Operating Segments | Advanced Healthcare Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | $ 66.5 | $ 69.6 | $ 202.2 | $ 189 |
Pension Plans - Components of N
Pension Plans - Components of Net Periodic Pension Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 25, 2020 | Oct. 01, 2021 | Sep. 25, 2020 | |
U.S. Pension Benefits: | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 0.3 | $ 0.3 | $ 0.7 | $ 0.9 |
Expected return on plan assets | (0.3) | (0.3) | (0.7) | (0.9) |
Net periodic pension cost | 0 | 0 | 0 | 0 |
Non-U.S. Pension Benefits: | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 0.7 | 1 | 2.3 | 3 |
Service cost | 1 | 1.1 | 3 | 3.3 |
Expected return on plan assets | (1.3) | (1.4) | (3.9) | (4) |
Amortization of net loss | 1 | 1.1 | 3.2 | 3.1 |
Amortization of prior service cost | 0.1 | 0.1 | 0.3 | 0.3 |
Net periodic pension cost | $ 1.5 | $ 1.9 | $ 4.9 | $ 5.7 |
Pension Plans - Narrative (Deta
Pension Plans - Narrative (Details) $ in Millions | Oct. 01, 2021USD ($) |
Non-U.S. Pension Benefits: | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected future contributions, remainder of fiscal year | $ 11 |
U.S. Pension Benefits: | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected future contributions, remainder of fiscal year | $ 1 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 25, 2020 | Oct. 01, 2021 | Sep. 25, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 13.20% | 13.40% | 11.10% | 17.70% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) shares in Millions | 9 Months Ended |
Oct. 01, 2021shares | |
Share-based Payment Arrangement [Abstract] | |
Shares of common stock reserved for issuance under the stock plan (in shares) | 19 |
Remaining service period related to the awards | 2 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 25, 2020 | Oct. 01, 2021 | Sep. 25, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pretax compensation expense | $ 18.4 | $ 15.6 | $ 55.2 | $ 45.3 |
Income tax benefit | (3.4) | (2.5) | (9.7) | (7.2) |
Total stock-based compensation expense | 15 | 13.1 | 45.5 | 38.1 |
Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pretax compensation expense | 11.3 | 9.5 | 34 | 27.7 |
Income tax benefit | (2.1) | (1.7) | (5.9) | (4.6) |
Total stock-based compensation expense | 9.2 | 7.8 | 28.1 | 23.1 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pretax compensation expense | 7.1 | 6.1 | 21.2 | 17.6 |
Income tax benefit | (1.3) | (0.8) | (3.8) | (2.6) |
Total stock-based compensation expense | $ 5.8 | $ 5.3 | $ 17.4 | $ 15 |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Compensation Cost (Details) $ in Millions | Oct. 01, 2021USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 144.8 |
Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | 89.6 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 55.2 |
Commitments and Contingencies -
Commitments and Contingencies - Rollforward of Accrued Warranty Liability (Details) $ in Millions | 9 Months Ended |
Oct. 01, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranty period - minimum | 90 days |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning balance | $ 24.9 |
Accruals for warranties issued during the period | 13 |
Settlements made | (12.1) |
Ending balance | $ 25.8 |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 25, 2020 | Oct. 01, 2021 | Sep. 25, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating lease cost | $ 15 | $ 14 | $ 45 | $ 44 |
Cash paid for operating leases | 40 | 37 | ||
ROU assets obtained in exchange for operating lease obligations | $ 24 | $ 34 |
Net Earnings Per Share - Narrat
Net Earnings Per Share - Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions | Jul. 01, 2021USD ($)$ / sharesshares | Oct. 01, 2021$ / sharesshares | Jul. 02, 2021$ / shares | Apr. 02, 2021$ / shares | Sep. 25, 2020$ / sharesshares | Jun. 26, 2020$ / shares | Mar. 27, 2020$ / shares | Oct. 01, 2021USD ($)$ / sharesshares | Sep. 25, 2020USD ($)$ / sharesshares | Dec. 31, 2020 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||
Preferred stock, dividend rate | 5.00% | 5.00% | 5.00% | |||||||
Convertible preferred stock, conversion ratio | 14.0978 | |||||||||
Dividend per share (in dollars per shares) | $ / shares | $ 12.50 | $ 0 | $ 12.5 | $ 12.5 | $ 12.5 | $ 12.5 | $ 12.5 | $ 25 | $ 37.5 | |
Final dividend paid | $ | $ 17.2 | $ 34.5 | $ 34.5 | |||||||
Common Stock | ||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||
Conversion of stock, common stock issued (in shares) | 19.4 | |||||||||
Stock options | ||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.2 | 5.3 | 0.3 | 5.5 |
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 | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 25, 2020 | Oct. 01, 2021 | Sep. 25, 2020 | |
Numerator | ||||
Net earnings from continuing operations | $ 151.1 | $ 86 | $ 444.8 | $ 200.6 |
Mandatory convertible preferred stock cumulative dividends | 0 | (17.3) | (34.5) | (51.8) |
Net earnings attributable to common stockholders from continuing operations | $ 151.1 | $ 68.7 | $ 410.3 | $ 148.8 |
Denominator | ||||
Weighted average common shares outstanding used in basic earnings per share (in shares) | 358.9 | 337.6 | 345.6 | 337.3 |
Incremental common shares from: | ||||
Assumed exercise of dilutive options and vesting of dilutive Stock Awards (in shares) | 3.3 | 3.2 | 3.2 | 2.9 |
Weighted average common shares outstanding used in diluted earnings per share (in shares) | 362.2 | 340.8 | 348.8 | 340.2 |
Net earnings from continuing operations per common share - Basic (in dollars per share) | $ 0.42 | $ 0.20 | $ 1.19 | $ 0.44 |
Net earnings from continuing operations per common share - Diluted (in dollars per share) | $ 0.42 | $ 0.20 | $ 1.18 | $ 0.44 |
Net Earnings Per Share - Divide
Net Earnings Per Share - Dividends Declared and Paid (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 01, 2021 | Oct. 01, 2021 | Jul. 02, 2021 | Apr. 02, 2021 | Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Oct. 01, 2021 | Sep. 25, 2020 |
Earnings Per Share [Abstract] | |||||||||
Dividend per common share (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.21 | $ 0.21 | |
Amount, common shares | $ 25.2 | $ 23.7 | $ 23.7 | $ 23.6 | $ 23.6 | $ 23.5 | $ 72.6 | $ 70.7 | |
Dividend per MCPS (in dollars per share) | $ 12.50 | $ 0 | $ 12.5 | $ 12.5 | $ 12.5 | $ 12.5 | $ 12.5 | $ 25 | $ 37.5 |
Amount, MCPS | $ 0 | $ 17.2 | $ 17.3 | $ 17.3 | $ 17.2 | $ 17.3 | $ 34.5 | $ 51.8 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 9 Months Ended |
Oct. 01, 2021segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Segment Information - Detailed
Segment Information - Detailed Segment Data (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 25, 2020 | Oct. 01, 2021 | Sep. 25, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total sales | $ 1,299.5 | $ 1,159.8 | $ 3,878.4 | $ 3,309.5 |
Total Operating Profit | 200.8 | 137.6 | 609.7 | 355.6 |
Interest expense, net | (25.1) | (36.9) | (78) | (111.7) |
Loss on extinguishment of debt | 0 | 0 | (104.9) | 0 |
Gain on investment in Vontier Corporation | 0 | 0 | 57 | 0 |
Gain on litigation dismissal | 0 | 0 | 26 | 0 |
Other non-operating expense, net | (1.6) | (1.4) | (9.5) | (0.3) |
Earnings from continuing operations before income taxes | 174.1 | 99.3 | 500.3 | 243.6 |
Operating Segments | Intelligent Operating Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 535.4 | 459.1 | 1,588.1 | 1,338.8 |
Total Operating Profit | 90 | 77.5 | 313.4 | 213 |
Operating Segments | Precision Technologies | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 455.7 | 418.5 | 1,375 | 1,187.1 |
Total Operating Profit | 101.1 | 82.1 | 301.1 | 232.7 |
Operating Segments | Advanced Healthcare Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 308.4 | 282.2 | 915.3 | 783.6 |
Total Operating Profit | 34.4 | 1.8 | 75.8 | (15.9) |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Total Operating Profit | $ (24.7) | $ (23.8) | $ (80.6) | $ (74.2) |