Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 21, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
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 $0.01 per share | |
Trading Symbol | FTV | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 352,024,375 | |
Amendment flag | false | |
Document fiscal year focus | 2023 | |
Document fiscal period focus | Q2 | |
Entity central index key | 0001659166 | |
Current fiscal year end date | --12-31 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and equivalents | $ 712.8 | $ 709.2 |
Trade accounts receivable less allowance for doubtful accounts of $40.4 at June 30, 2023 and $43.9 at December 31, 2022 | 935.2 | 958.5 |
Inventories: | ||
Finished goods | 231.2 | 215.3 |
Work in process | 105.2 | 96.4 |
Raw materials | 224.8 | 225 |
Inventories | 561.2 | 536.7 |
Prepaid expenses and other current assets | 265.4 | 272.6 |
Total current assets | 2,474.6 | 2,477 |
Property, plant and equipment, net of accumulated depreciation of $789.2 at June 30, 2023 and $754.5 at December 31, 2022 | 425.9 | 421.9 |
Other assets | 474.3 | 455.8 |
Goodwill | 9,051.9 | 9,048.5 |
Other intangible assets, net | 3,304 | 3,487.4 |
Total assets | 15,730.7 | 15,890.6 |
Current liabilities: | ||
Current portion of long-term debt | 999.9 | 999.7 |
Trade accounts payable | 585.6 | 623 |
Accrued expenses and other current liabilities | 999.5 | 1,104.4 |
Total current liabilities | 2,585 | 2,727.1 |
Other long-term liabilities | 1,195.7 | 1,223.3 |
Long-term debt | 1,978.2 | 2,251.6 |
Commitments and Contingencies (Note 8) | ||
Equity: | ||
Common stock: $0.01 par value, 2.0 billion shares authorized; 362.7 million issued and 351.9 million outstanding at June 30, 2023; 361.5 million issued and 352.9 million outstanding at December 31, 2022 | 3.6 | 3.6 |
Additional paid-in capital | 3,778.7 | 3,706.3 |
Treasury shares, at cost | (572) | (442.9) |
Retained earnings | 7,075.4 | 6,742.1 |
Accumulated other comprehensive loss | (319.9) | (325.7) |
Total Fortive stockholders’ equity | 9,965.8 | 9,683.4 |
Noncontrolling interests | 6 | 5.2 |
Total stockholders’ equity | 9,971.8 | 9,688.6 |
Total liabilities and equity | $ 15,730.7 | $ 15,890.6 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 40.4 | $ 43.9 |
Accumulated depreciation | $ 789.2 | $ 754.5 |
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) | 362,700,000 | 361,500,000 |
Common stock, shares outstanding (in shares) | 351,900,000 | 352,900,000 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Total sales | $ 1,526.4 | $ 1,463.3 | $ 2,987.1 | $ 2,839.8 |
Total cost of sales | (621) | (629.8) | (1,233.5) | (1,214.3) |
Gross profit | 905.4 | 833.5 | 1,753.6 | 1,625.5 |
Operating costs: | ||||
Selling, general and administrative expenses | (514) | (484.9) | (1,021.7) | (965.5) |
Research and development expenses | (100.1) | (100.1) | (200.2) | (199.2) |
Russia exit and wind down costs | 0 | (16.2) | 0 | (16.2) |
Operating profit | 291.3 | 232.3 | 531.7 | 444.6 |
Non-operating income (expense), net: | ||||
Interest expense, net | (33.1) | (21) | (65.2) | (39.8) |
Other non-operating expense, net | (7.8) | (3.1) | (10.3) | (5.8) |
Earnings before income taxes | 250.4 | 208.2 | 456.2 | 399 |
Income taxes | (41.4) | (35.2) | (73.6) | (60.9) |
Net earnings | $ 209 | $ 173 | $ 382.6 | $ 338.1 |
Net earnings per share: | ||||
Basic (in dollars per share) | $ 0.59 | $ 0.48 | $ 1.08 | $ 0.94 |
Diluted (in dollars per share) | $ 0.59 | $ 0.48 | $ 1.07 | $ 0.93 |
Average common stock and common equivalent shares outstanding: | ||||
Basic (in shares) | 353 | 357.4 | 353.3 | 358.3 |
Diluted (in shares) | 355.5 | 359.8 | 356 | 364.2 |
Sales of products and software | ||||
Total sales | $ 1,290.8 | $ 1,229.4 | $ 2,527.4 | $ 2,382.1 |
Total cost of sales | (500.1) | (508.3) | (985.2) | (973.4) |
Sales of services | ||||
Total sales | 235.6 | 233.9 | 459.7 | 457.7 |
Total cost of sales | $ (120.9) | $ (121.5) | $ (248.3) | $ (240.9) |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 209 | $ 173 | $ 382.6 | $ 338.1 |
Other comprehensive income (loss), net of income taxes: | ||||
Foreign currency translation adjustments | (7.4) | (118.6) | 6 | (158) |
Pension adjustments | (0.2) | 0.4 | (0.2) | 0.9 |
Total other comprehensive income (loss), net of income taxes | (7.6) | (118.2) | 5.8 | (157.1) |
Comprehensive income | $ 201.4 | $ 54.8 | $ 388.4 | $ 181 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Changes in Equity - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Additional Paid-In Capital | Additional Paid-In Capital Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-In Capital Cumulative Effect, Period of Adoption, Adjusted Balance | Treasury Shares | Treasury Shares Cumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Cumulative Effect, Period of Adoption, Adjusted Balance | Noncontrolling Interests | Noncontrolling Interests Cumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance (in shares) at Dec. 31, 2021 | 359.1 | 359.1 | |||||||||||||
Beginning balance at Dec. 31, 2021 | $ 3.6 | $ 3.6 | $ 3,670 | $ (65.7) | $ 3,604.3 | $ 0 | $ 0 | $ 6,023.6 | $ 62.8 | $ 6,086.4 | $ (185) | $ (185) | $ 4.8 | $ 4.8 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net earnings for the period | 165.1 | ||||||||||||||
Dividends to common shareholders | $ (25.1) | (25.1) | |||||||||||||
Other comprehensive income (loss) | (38.9) | ||||||||||||||
Common stock-based award activity (in shares) | 0.5 | ||||||||||||||
Common stock-based award activity | 23.8 | ||||||||||||||
Common stock repurchases (in shares) | (1) | ||||||||||||||
Common stock repurchases | (63.8) | ||||||||||||||
Shares withheld for taxes (in shares) | (0.2) | ||||||||||||||
Shares withheld for taxes | (9) | ||||||||||||||
Change in noncontrolling interests | 0.5 | ||||||||||||||
Ending balance (in shares) at Apr. 01, 2022 | 358.4 | ||||||||||||||
Ending balance at Apr. 01, 2022 | $ 3.6 | 3,619.1 | (63.8) | 6,226.4 | (223.9) | 5.3 | |||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 359.1 | 359.1 | |||||||||||||
Beginning balance at Dec. 31, 2021 | $ 3.6 | $ 3.6 | 3,670 | $ (65.7) | $ 3,604.3 | 0 | $ 0 | 6,023.6 | $ 62.8 | $ 6,086.4 | (185) | $ (185) | 4.8 | $ 4.8 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net earnings for the period | 338.1 | ||||||||||||||
Dividends to common shareholders | (50) | ||||||||||||||
Other comprehensive income (loss) | (157.1) | ||||||||||||||
Ending balance (in shares) at Jul. 01, 2022 | 355.6 | ||||||||||||||
Ending balance at Jul. 01, 2022 | $ 3.6 | 3,651.2 | (242.9) | 6,374.5 | (342.1) | 5.1 | |||||||||
Beginning balance (in shares) at Apr. 01, 2022 | 358.4 | ||||||||||||||
Beginning balance at Apr. 01, 2022 | $ 3.6 | 3,619.1 | (63.8) | 6,226.4 | (223.9) | 5.3 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net earnings for the period | 173 | 173 | |||||||||||||
Dividends to common shareholders | (24.9) | (24.9) | |||||||||||||
Other comprehensive income (loss) | $ (118.2) | (118.2) | |||||||||||||
Common stock-based award activity (in shares) | 0.2 | ||||||||||||||
Common stock-based award activity | 32.7 | ||||||||||||||
Common stock repurchases (in shares) | (3) | ||||||||||||||
Common stock repurchases | (179.1) | ||||||||||||||
Shares withheld for taxes | (0.6) | ||||||||||||||
Change in noncontrolling interests | (0.2) | ||||||||||||||
Ending balance (in shares) at Jul. 01, 2022 | 355.6 | ||||||||||||||
Ending balance at Jul. 01, 2022 | $ 3.6 | 3,651.2 | (242.9) | 6,374.5 | (342.1) | 5.1 | |||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 352.9 | 352.9 | |||||||||||||
Beginning balance at Dec. 31, 2022 | $ 9,688.6 | $ 3.6 | 3,706.3 | (442.9) | 6,742.1 | (325.7) | 5.2 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net earnings for the period | 173.6 | ||||||||||||||
Dividends to common shareholders | $ (24.7) | (24.7) | |||||||||||||
Other comprehensive income (loss) | 13.4 | ||||||||||||||
Common stock-based award activity (in shares) | 0.8 | ||||||||||||||
Common stock-based award activity | 36.3 | ||||||||||||||
Shares withheld for taxes (in shares) | (0.2) | ||||||||||||||
Shares withheld for taxes | (12.1) | ||||||||||||||
Change in noncontrolling interests | 0.6 | ||||||||||||||
Ending balance (in shares) at Mar. 31, 2023 | 353.5 | ||||||||||||||
Ending balance at Mar. 31, 2023 | $ 3.6 | 3,730.5 | (442.9) | 6,891 | (312.3) | 5.8 | |||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 352.9 | 352.9 | |||||||||||||
Beginning balance at Dec. 31, 2022 | $ 9,688.6 | $ 3.6 | 3,706.3 | (442.9) | 6,742.1 | (325.7) | 5.2 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net earnings for the period | 382.6 | ||||||||||||||
Dividends to common shareholders | (49.3) | ||||||||||||||
Other comprehensive income (loss) | $ 5.8 | ||||||||||||||
Ending balance (in shares) at Jun. 30, 2023 | 351.9 | 351.9 | |||||||||||||
Ending balance at Jun. 30, 2023 | $ 9,971.8 | $ 3.6 | 3,778.7 | (572) | 7,075.4 | (319.9) | 6 | ||||||||
Beginning balance (in shares) at Mar. 31, 2023 | 353.5 | ||||||||||||||
Beginning balance at Mar. 31, 2023 | $ 3.6 | 3,730.5 | (442.9) | 6,891 | (312.3) | 5.8 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net earnings for the period | 209 | 209 | |||||||||||||
Dividends to common shareholders | (24.6) | (24.6) | |||||||||||||
Other comprehensive income (loss) | $ (7.6) | (7.6) | |||||||||||||
Common stock-based award activity (in shares) | 0.5 | ||||||||||||||
Common stock-based award activity | 52.3 | ||||||||||||||
Common stock repurchases (in shares) | (2) | ||||||||||||||
Common stock repurchases | (129.1) | ||||||||||||||
Shares withheld for taxes (in shares) | (0.1) | ||||||||||||||
Shares withheld for taxes | (4.1) | ||||||||||||||
Change in noncontrolling interests | 0.2 | ||||||||||||||
Ending balance (in shares) at Jun. 30, 2023 | 351.9 | 351.9 | |||||||||||||
Ending balance at Jun. 30, 2023 | $ 9,971.8 | $ 3.6 | $ 3,778.7 | $ (572) | $ 7,075.4 | $ (319.9) | $ 6 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Changes in Equity (Parenthetical) | Jun. 30, 2023 |
0.875% senior convertible notes due 2022 | Convertible Debt | |
Interest rate, stated percentage | 0.875% |
Consolidated Condensed Statem_5
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jul. 01, 2022 | |
Cash flows from operating activities: | ||
Net earnings | $ 382.6 | $ 338.1 |
Noncash items: | ||
Amortization | 184.2 | 192.1 |
Depreciation | 42.1 | 41.9 |
Stock-based compensation expense | 55.7 | 45 |
Russia exit and wind down costs | 0 | 9.2 |
Change in trade accounts receivable, net | 26 | (37.7) |
Change in inventories | (27.4) | (50.7) |
Change in trade accounts payable | (36.4) | 40.1 |
Change in prepaid expenses and other assets | (13.1) | (39.2) |
Change in accrued expenses and other liabilities | (118.3) | (29.6) |
Net cash provided by operating activities | 495.4 | 509.2 |
Cash flows from investing activities: | ||
Payments for additions to property, plant and equipment | (45.8) | (37.1) |
Proceeds from sale of property | 4.9 | 0 |
Cash paid for acquisitions, net of cash received | 0 | (1.6) |
Net cash used in investing activities | (40.9) | (38.7) |
Cash flows from financing activities: | ||
Net proceeds from (repayments of) commercial paper borrowings | (268.6) | 481.3 |
Proceeds from borrowings (maturities greater than 90 days), net of issuance costs | 0 | 397 |
Payment of 0.875% convertible senior notes due 2022 | 0 | (1,156.5) |
Repurchase of common shares | (129.1) | (242.9) |
Payment of dividends | (49.3) | (50) |
All other financing activities | 5.6 | (11.8) |
Net cash used in financing activities | (441.4) | (582.9) |
Effect of exchange rate changes on cash and equivalents | (9.5) | (24) |
Net change in cash and equivalents | 3.6 | (136.4) |
Beginning balance of cash and equivalents | 709.2 | 819.3 |
Ending balance of cash and equivalents | $ 712.8 | $ 682.9 |
Consolidated Condensed Statem_6
Consolidated Condensed Statements of Cash Flows (Parenthetical) | Jun. 30, 2023 |
0.875% senior convertible notes due 2022 | Convertible Debt | |
Interest rate, stated percentage | 0.875% |
BUSINESS OVERVIEW
BUSINESS OVERVIEW | 6 Months Ended |
Jun. 30, 2023 | |
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 strategic segments - Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions - include well-known brands with leading positions in their markets. Our businesses design, develop, manufacture, and service professional and engineered products, software, and services, 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 around the world. 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 omitted pursuant to such rules and regulations; however, we believe the disclosures are adequate to make the information presented not misleading. The unaudited 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, 2022 and the footnotes (“Notes”) thereto included within our 2022 Annual Report on Form 10-K. In our opinion, the accompanying financial statements contain all adjustments, which consist of only normal, recurring accruals necessary to fairly present our financial position, results of operations, comprehensive income, stockholders’ equity, and cash flows for the periods presented. The results of operations for the three and six months ended June 30, 2023, are not necessarily indicative of the results for the full year. Russia Ukraine Conflict In February 2022, Russian forces invaded Ukraine (“Russia Ukraine Conflict”) resulting in broad economic sanctions being imposed on Russia. In the second quarter of 2022, the Company exited business operations in Russia, other than for ASP’s sterilization products, which are exempt from international sanctions as humanitarian products. In the three and six-month periods ended July 1, 2022, the Company recorded pre-tax charges of $16.2 million primarily relating to the write-off of net assets, the write-off of the cumulative translation adjustment in earnings for legal entities deemed substantially liquidated, and to record provisions for employee severance and legal contingencies. These costs are identified as the “Russia exit and wind down costs” in the Condensed Consolidated Statements of Earnings. The exit activities were completed in 2022 and we did not incur additional charges in 2023. Accumulated Other Comprehensive Loss Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. During the second quarter of 2022, our ¥14.4 billion Yen-denominated term loan and our €275 million Euro-denominated term loan were designated as net investment hedges of our investment in applicable foreign operations. We recognized after-tax foreign currency transaction gains of $5.1 million and $3.6 million, respectively, during the three-month periods ended June 30, 2023 and July 1, 2022, and gains of $3.4 million and $3.6 million, respectively, during the six-month periods ended June 30, 2023 and July 1, 2022, on the debt that was deferred in the foreign currency translation component of Accumulated other comprehensive income (loss) (“AOCI”) as an offset to the foreign currency translation adjustments on our investments in foreign subsidiaries. Any amounts deferred in AOCI will remain until the hedged investment is sold or substantially liquidated. We recorded no ineffectiveness from our net investment hedges during the three and six-month periods ended June 30, 2023 and July 1, 2022. The changes in AOCI by component are summarized below ($ in millions): Foreign Pension & post-retirement plan benefit adjustments (a) Total For the Three Months Ended June 30, 2023: Balance, March 31, 2023 $ (288.0) $ (24.3) $ (312.3) Other comprehensive income (loss) before reclassifications, net of income taxes (7.4) — (7.4) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — (0.5) (b) (0.5) Income tax impact — 0.3 0.3 Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — (0.2) (0.2) Net current period other comprehensive income (loss), net of income taxes (7.4) (0.2) (7.6) Balance, June 30, 2023 $ (295.4) $ (24.5) $ (319.9) For the Three Months Ended July 1, 2022: Balance, April 1, 2022 $ (162.1) $ (61.8) $ (223.9) Other comprehensive income (loss) before reclassifications, net of income taxes (121.3) — (121.3) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) 2.7 0.5 (b) 3.2 Income tax impact — (0.1) (0.1) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes 2.7 0.4 3.1 Net current period other comprehensive income (loss), net of income taxes (118.6) 0.4 (118.2) Balance, July 1, 2022 $ (280.7) $ (61.4) $ (342.1) Foreign Pension & post-retirement plan benefit adjustments (a) Total For the Six Months Ended June 30, 2023: Balance, December 31, 2022 $ (301.4) $ (24.3) $ (325.7) Other comprehensive income (loss) before reclassifications, net of income taxes 6.0 — 6.0 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — (0.4) (b) (0.4) Income tax impact — 0.2 0.2 Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — (0.2) (0.2) Net current period other comprehensive income (loss) 6.0 (0.2) 5.8 Balance, June 30, 2023 $ (295.4) $ (24.5) $ (319.9) For the Six Months Ended July 1, 2022: Balance, December 31, 2021 $ (122.7) $ (62.3) $ (185.0) Other comprehensive income (loss) before reclassifications, net of income taxes (160.7) — (160.7) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) 2.7 1.1 (b) 3.8 Income tax impact — (0.2) (0.2) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes 2.7 0.9 3.6 Net current period other comprehensive income (loss) (158.0) 0.9 (157.1) Balance, July 1, 2022 $ (280.7) $ (61.4) $ (342.1) (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 12 in our most recently filed Form 10-K for additional details). Allowances for Doubtful Accounts All trade accounts and unbilled receivables are reported in the Consolidated Condensed Balance Sheets 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. During the three and six-month periods ending June 30, 2023 and July 1, 2022, the activity was immaterial. Restructuring We initiated a discrete plan in the first quarter of 2023 that is expected to be completed by December 31, 2023. The nature of these activities were broadly consistent throughout our segments and consist primarily of targeted workforce reductions in response to overall macroeconomic and other external conditions. We incurred these costs to position ourselves to provide superior products and services to customers in a cost-efficient manner, while taking into consideration the impact of broad economic uncertainties. During the three and six-month periods ended June 30, 2023, we incurred charges of $10.7 million and $28.3 million, respectively. These charges are included in Cost of sales and Selling, general, and administrative expenses in the Consolidated Condensed Statements of Earnings. Accrued restructuring costs were $14.2 million as of June 30, 2023 and are included within Accrued expenses and other current liabilities in the Consolidated Condensed Balance Sheets. The total restructuring charges we expect to recognize during the year ending December 31, 2023 under this discrete plan are approximately $30 to $35 million. 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 (“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. Upon conversion of the Convertible Notes, holders were entitled to receive cash, shares of our common stock, or a combination thereof, at our election. Upon adopting 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 (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), on January 1, 2022, we accounted for the Convertible Notes under the if-converted method in our calculation of diluted EPS, as required under the new guidance. On February 15, 2022, the maturity date of the Convertible Notes, Fortive repaid, in cash, $1.2 billion in outstanding principal and accrued interest thereon. Recently Issued Accounting Standard The Financial Accounting Standards Board (“FASB”) establishes changes to accounting principles under GAAP in the form of accounting standards updates (“ASUs”) to the Accounting Standards Codification (“ASC”). We consider the applicability and impact of all ASUs. Any recently issued ASUs were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company’s result of operations, financials position or cash flows. |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | NOTE 2. GOODWILL The following is a roll forward of our carrying value of goodwill by segment ($ in millions): Balance, Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Total Goodwill Balance, December 31, 2022 $ 4,074.4 $ 1,810.2 $ 3,163.9 $ 9,048.5 Foreign currency translation and other 13.5 (5.1) (5.0) 3.4 Balance, June 30, 2023 $ 4,087.9 $ 1,805.1 $ 3,158.9 $ 9,051.9 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 3. 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 June 30, 2023 Deferred compensation liabilities $ — $ 37.5 $ — $ 37.5 December 31, 2022 Deferred compensation liabilities — 31.5 — 31.5 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 included in Other long-term liabilities in the accompanying 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 and are recorded within Selling, general and administrative in the Consolidated Condensed Statements of Earnings. Non-recurring 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 six-month periods ended June 30, 2023, and recorded no material impairments. Fair Value of Financial Instruments The carrying amount and fair value of financial instruments are as follows ($ in millions): June 30, 2023 December 31, 2022 Carrying Amount Fair Value Carrying Amount Fair Value Current portion of long-term debt $ 999.9 $ 1,000.0 $ 999.7 $ 1,000.0 Long-term debt, net of current maturities 1,978.2 1,824.4 2,251.6 2,078.1 As of June 30, 2023 and December 31, 2022, the current portion of long-term debt and long-term debt, net of current maturities were categorized as Level 1. The fair values of long-term borrowings 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 borrowing. The fair value of cash and cash equivalents, trade accounts receivable, net, trade accounts payable, and commercial paper approximates their carrying value due to the short-term maturities of these instruments. |
FINANCING
FINANCING | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
FINANCING | NOTE 4. FINANCING The components of our debt were as follows ($ in millions): June 30, 2023 December 31, 2022 U.S. dollar-denominated commercial paper $ 135.0 $ 405.0 Delayed-Draw Term Loan due 2023 1,000.0 1,000.0 Euro Term Loan due 2025 300.0 294.4 Yen Term Loan due 2025 99.8 109.8 3.15% senior unsecured notes due 2026 900.0 900.0 4.30% senior unsecured notes due 2046 550.0 550.0 Long-term debt, principal amounts 2,984.8 3,259.2 Less: aggregate unamortized debt discounts, premiums, and issuance costs 6.7 7.9 Long-term debt, carrying value 2,978.1 3,251.3 Less: current portion of long-term debt 999.9 999.7 Long-term debt, net of current maturities $ 1,978.2 $ 2,251.6 Refer to Note 11 of our 2022 Annual Report on Form 10-K for further details of our debt financing. 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. 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 June 30, 2023 were as follows ($ in millions): Carrying value (a) Annual effective rate Weighted average maturity (in days) U.S. dollar-denominated commercial paper $ 134.8 5.39 % 17 (a) Net of unamortized debt discount. Credit support for the Commercial Paper Programs is provided by a five-year $2.0 billion senior unsecured revolving credit facility that expires on October 18, 2027 (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 June 30, 2023, no borrowings were outstanding under the Revolving Credit Facility. We classified our borrowings outstanding under the Commercial Paper Programs as Long-term debt in the accompanying Consolidated Condensed Balance Sheets as we had the intent and ability, as supported by availability under the Revolving Credit Facility, to refinance these borrowings for at least one year from the balance sheet date. |
SALES
SALES | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
SALES | NOTE 5. SALES We derive revenue primarily from the sale of products, including software, and services. Revenue is recognized when control of promised products or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products, software, or services. Product sales include revenue from the sale of products and equipment, which includes our software and SaaS product offerings and equipment rentals. Service sales include revenues from extended warranties, post-contract customer support (“PCS”), maintenance contracts or services, contract labor to perform ongoing service at a customer location, services related to previously sold products, and software implementation services. 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 $97 million as of June 30, 2023 and $82 million as of December 31, 2022. Contract assets are recorded in Prepaid expenses and other current assets in our Consolidated Condensed Balance Sheets. Contract Costs — We incur and capitalize incremental costs to obtain certain contracts, typically sales-related commissions where the amortization period is greater than one year and costs associated with assets used by our customers in certain service arrangements. As of June 30, 2023 and December 31, 2022, we had $48 million and $42 million, respectively, in net revenue-related contract costs primarily related to certain software contracts. Revenue-related contract costs are recorded in the Prepaid expenses and other current assets and Other assets line items in our Consolidated Condensed Balance Sheets. These assets have estimated useful lives between three Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to subscription-based software contracts, PCS and extended warranty sales, where we generally receive up-front payment and recognize revenue over the service or support term. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The current portion of deferred revenue is included in Accrued expenses and other current liabilities and the noncurrent portion of deferred revenue is included in Other long-term liabilities in our Consolidated Condensed Balance Sheets. Our contract liabilities consisted of the following ($ in millions): June 30, 2023 December 31, 2022 Deferred revenue - current $ 495.4 $ 509.6 Deferred revenue - noncurrent 41.5 38.0 Total contract liabilities $ 536.9 $ 547.6 During the three and six-month periods ended June 30, 2023, we recognized revenue related to our contract liabilities at December 31, 2022 of $113 million and $288 million. The change in our contract liabilities from December 31, 2022 to June 30, 2023 was primarily due to the timing of billings and revenue recognized for subscription-based software contracts, PCS and extended warranty services. Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, non-cancelable orders and the average contract value for software contracts, for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below. The aggregate remaining performance obligations attributable to each of our segments is as follows ($ in millions): June 30, 2023 Intelligent Operating Solutions $ 565.8 Precision Technologies 54.7 Advanced Healthcare Solutions 58.4 Total remaining performance obligations $ 678.9 The majority of remaining performance obligations are related to service and support contracts, which we expect to fulfill approximately 75 percent within the next two years, approximately 90 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 June 30, 2023 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 1,290.8 $ 546.4 $ 481.0 $ 263.4 Sales of services 235.6 106.7 56.4 72.5 Total $ 1,526.4 $ 653.1 $ 537.4 $ 335.9 Geographic: United States $ 827.8 $ 362.0 $ 273.2 $ 192.6 China 178.9 58.6 94.1 26.2 All other (each country individually less than 5% of total sales) 519.7 232.5 170.1 117.1 Total $ 1,526.4 $ 653.1 $ 537.4 $ 335.9 End markets: (a) Direct sales: Healthcare $ 359.6 $ 11.6 $ 35.3 $ 312.7 Industrial & Manufacturing 357.8 232.6 117.8 7.4 Utilities & Power 104.6 46.3 58.3 — Government 132.9 77.2 47.0 8.7 Communications, Electronics & Semiconductor 97.4 23.3 73.4 0.7 Aerospace & Defense 76.3 0.2 76.1 — Oil & Gas 71.6 67.6 4.0 — Retail & Consumer 84.4 62.1 22.3 — Other 181.6 100.1 81.5 — Total direct sales 1,466.2 621.0 515.7 329.5 Distributors 60.2 32.1 21.7 6.4 Total $ 1,526.4 $ 653.1 $ 537.4 $ 335.9 (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 July 1, 2022 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 1,229.4 $ 534.2 $ 444.7 $ 250.5 Sales of services 233.9 95.9 54.4 83.6 Total $ 1,463.3 $ 630.1 $ 499.1 $ 334.1 Geographic: United States $ 779.0 $ 341.1 $ 249.6 $ 188.3 China 182.7 56.1 101.6 25.0 All other (each country individually less than 5% of total sales) 501.6 232.9 147.9 120.8 Total $ 1,463.3 $ 630.1 $ 499.1 $ 334.1 End markets: (a) Direct sales: Healthcare $ 369.8 $ 13.2 $ 41.3 $ 315.3 Industrial & Manufacturing 341.9 227.4 107.7 6.8 Utilities & Power 94.0 47.9 46.1 — Government 110.1 60.5 41.4 8.2 Communications, Electronics & Semiconductor 102.1 26.3 75.4 0.4 Aerospace & Defense 64.7 0.2 64.5 — Oil & Gas 68.6 65.8 2.8 — Retail & Consumer 84.4 60.6 23.8 — Other 158.5 90.1 68.4 — Total direct sales 1,394.1 592.0 471.4 330.7 Distributors 69.2 38.1 27.7 3.4 Total $ 1,463.3 $ 630.1 $ 499.1 $ 334.1 (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 six-month period ended June 30, 2023 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 2,527.4 $ 1,083.8 $ 941.3 $ 502.3 Sales of services 459.7 201.4 111.6 146.7 Total $ 2,987.1 $ 1,285.2 $ 1,052.9 $ 649.0 Geographic: United States $ 1,599.3 $ 702.1 $ 524.5 $ 372.7 China 360.3 123.5 186.3 50.5 All other (each country individually less than 5% of total sales) 1,027.5 459.6 342.1 225.8 Total $ 2,987.1 $ 1,285.2 $ 1,052.9 $ 649.0 End markets: (a) Direct sales: Healthcare $ 699.0 $ 22.5 $ 69.8 $ 606.7 Industrial & Manufacturing 711.0 460.9 236.0 14.1 Utilities & Power 203.5 93.6 109.9 — Government 244.0 139.0 87.9 17.1 Communications, Electronics & Semiconductor 203.3 48.9 153.0 1.4 Aerospace & Defense 143.9 0.3 143.6 — Oil & Gas 141.9 133.5 8.4 — Retail & Consumer 167.3 124.4 42.9 — Other 351.7 195.1 156.6 — Total direct sales 2,865.6 1,218.2 1,008.1 639.3 Distributors 121.5 67.0 44.8 9.7 Total $ 2,987.1 $ 1,285.2 $ 1,052.9 $ 649.0 (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 six-month period ended July 1, 2022 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 2,382.1 $ 1,034.7 $ 855.3 $ 492.1 Sales of services 457.7 183.0 106.2 168.5 Total $ 2,839.8 $ 1,217.7 $ 961.5 $ 660.6 Geographic: United States $ 1,518.9 $ 663.0 $ 483.6 $ 372.3 China 328.1 104.0 170.9 53.2 All other (each country individually less than 5% of total sales) 992.8 450.7 307.0 235.1 Total $ 2,839.8 $ 1,217.7 $ 961.5 $ 660.6 End markets: (a) Direct sales: Healthcare $ 723.1 $ 23.5 $ 78.4 $ 621.2 Industrial & Manufacturing 663.8 438.5 211.4 13.9 Utilities & Power 180.3 90.9 89.4 — Government 215.8 112.1 86.1 17.6 Communications, Electronics & Semiconductor 189.9 50.1 138.8 1.0 Aerospace & Defense 120.1 0.3 119.8 — Oil & Gas 133.4 128.1 5.3 — Retail & Consumer 165.6 124.3 41.3 — Other 312.4 177.6 134.7 0.1 Total direct sales 2,704.4 1,145.4 905.2 653.8 Distributors 135.4 72.3 56.3 6.8 Total $ 2,839.8 $ 1,217.7 $ 961.5 $ 660.6 (a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 6. INCOME TAXES Our effective tax rates for the three and six-month period ended June 30, 2023 were 16.5% and 16.1%, respectively, as compared to 16.9% and 15.3%, respectively, for the three and six-month period ended July 1, 2022. The decrease in the effective tax rate for the three-month period ended June 30, 2023 as compared to the three-month period ended July 1, 2022 was primarily due to effect of Russia exit and wind down costs for which no tax benefit was recognized during the three-month period ending July 1, 2022. The increase in the effective tax rate for the six-month period ended June 30, 2023 as compared to the six-month period ended July 1, 2022 was primarily due to uncertain tax position reserves released during the six-month period ending July 1, 2022. Our effective tax rates for the three and six-month periods ended June 30, 2023, differ from the U.S. federal statutory rate of 21% due primarily to the impact of credits and deductions provided by law and changes in our uncertain tax position reserves. On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022, which, among other provisions implements a 15% corporate alternative minimum tax. Based upon our current analysis of the Inflation Reduction Act of 2022 and subsequently released guidance, we believe the 15% corporate minimum tax will not have a material impact on our financial statements during 2023. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 7. STOCK-BASED COMPENSATION The 2016 Stock Incentive Plan (the “Stock Plan”), provides for the grant of stock appreciation rights, restricted stock units, and performance stock units (collectively, “Stock Awards”), stock options, or any other stock-based award. As of June 30, 2023, approximately 14 million shares of our common stock were available for subsequent issuance under the Stock Plan. For a full description of our Stock Plan refer to Note 17 of our 2022 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 Six Months Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Stock Awards: Pretax compensation expense $ 19.9 $ 16.0 $ 38.0 $ 28.7 Income tax benefit (2.7) (3.0) (5.3) (4.7) Stock Award expense, net of income taxes 17.2 13.0 32.7 24.0 Stock options: Pretax compensation expense 9.1 9.1 17.7 16.3 Income tax benefit (1.3) (1.4) (2.5) (2.4) Stock option expense, net of income taxes 7.8 7.7 15.2 13.9 Total stock-based compensation: Pretax compensation expense 29.0 25.1 55.7 45.0 Income tax benefit (4.0) (4.4) (7.8) (7.1) Total stock-based compensation expense, net of income taxes $ 25.0 $ 20.7 $ 47.9 $ 37.9 The following summarizes the unrecognized compensation cost for the Stock Plan awards as of June 30, 2023. 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 $ 53.3 Stock options 121.5 Total unrecognized compensation cost $ 174.8 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8. 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 2022 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. During the six-month periods ending June 30, 2023 and July 1, 2022, warranty related activity was immaterial. Leases |
NET EARNINGS PER SHARE
NET EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
NET EARNINGS PER SHARE | NOTE 9. NET EARNINGS PER SHARE Basic net 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 conversion of 0.875% Convertible Notes and associated issuance of shares under the if-converted method, while outstanding in 2022, and 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 both the three and six-month periods ended June 30, 2023 were 2.7 million, and were 7.7 million and 7.5 million for the three and six-month periods ended July 1, 2022, respectively. Information related to the calculation of net earnings per share of common stock is summarized as follows ($ and shares in millions, except per share amounts): Three Months Ended Six Months Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Numerator Net earnings $ 209.0 $ 173.0 $ 382.6 $ 338.1 Convertible note interest add-back (if converted method) — — — 1.8 Diluted Net Earnings $ 209.0 $ 173.0 $ 382.6 $ 339.9 Denominator Weighted average common shares outstanding used in basic earnings per share 353.0 357.4 353.3 358.3 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive Stock Awards 2.5 2.4 2.7 2.7 Conversion of convertible notes (if converted method) — — — 3.2 Weighted average common shares outstanding used in diluted earnings per share 355.5 359.8 356.0 364.2 Net earnings per common share - Basic $ 0.59 $ 0.48 $ 1.08 $ 0.94 Net earnings per common share - Diluted $ 0.59 $ 0.48 $ 1.07 $ 0.93 We declared and paid cash dividends per common share for the periods as presented below. Dividend Per Amount 2023: First quarter $ 0.07 $ 24.7 Second quarter 0.07 24.6 Total $ 0.14 $ 49.3 2022: First quarter $ 0.07 $ 25.1 Second quarter 0.07 24.9 Total $ 0.14 $ 50.0 * The sum of the components of total dividends paid may not equal the total amount due to rounding. Share Repurchase Program |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 10. 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 (“CODM”) assesses performance and allocates resources based on our operating segments, which are also our reportable segments. Our Intelligent Operating Solutions segment provides advanced instrumentation, software and services to tens of thousands of customers enabling their mission-critical workflows. These offerings include electrical test & measurement, facility and asset lifecycle software applications, connected worker safety and compliance solutions across a range of vertical end markets, including manufacturing, process industries, healthcare, utilities and power, communications and electronics, among others. Our Precision Technologies segment helps solve tough technical challenges to speed breakthroughs in a wide range of applications, from food and beverage production and manufacturing to next-generation electric vehicles and clean energy, as our customers seek new test solutions to enable the electrification and connectivity of everything. Our expertise in materials, methods and measurements are reflected in our electrical test & measurement, sensing and material technologies offered to a broad set of customers and vertical end markets, including industrial, power and energy, automotive, medical equipment, food and beverage, aerospace and defense, semiconductor, and other general industries. Our Advanced Healthcare Solutions segment supplies critical workflow solutions enabling healthcare providers to deliver exceptional patient care more efficiently. Our offerings include instrument sterilization solutions, instrument tracking, cell therapy equipment design and manufacturing, biomedical test tools, radiation detection and safety monitoring, and end-to-end clinical productivity software and solutions. Our healthcare offerings help ensure critical safety standards are met, instruments and operating rooms are working at peak performance, and complex procedures are followed accurately in these mission-critical healthcare environments. Our segment results are as follows ($ in millions): Three Months Ended Six Months Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Sales: Intelligent Operating Solutions $ 653.1 $ 630.1 $ 1,285.2 $ 1,217.7 Precision Technologies 537.4 499.1 1,052.9 961.5 Advanced Healthcare Solutions 335.9 334.1 649.0 660.6 Total $ 1,526.4 $ 1,463.3 $ 2,987.1 $ 2,839.8 Operating Profit: Intelligent Operating Solutions $ 161.7 $ 129.9 $ 295.2 $ 236.9 Precision Technologies 136.3 115.3 259.0 216.7 Advanced Healthcare Solutions 25.9 28.1 42.2 56.1 Other (32.6) (24.8) (64.7) (48.9) Russia exit and wind down costs — (16.2) — (16.2) Total Operating Profit 291.3 232.3 531.7 444.6 Interest expense, net (33.1) (21.0) (65.2) (39.8) Other non-operating expense, net (7.8) (3.1) (10.3) (5.8) Earnings before income taxes $ 250.4 $ 208.2 $ 456.2 $ 399.0 |
BUSINESS OVERVIEW (Policies)
BUSINESS OVERVIEW (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. During the second quarter of 2022, our ¥14.4 billion Yen-denominated term loan and our €275 million Euro-denominated term loan were designated as net investment hedges of our investment in applicable foreign operations. We recognized after-tax foreign currency transaction gains of $5.1 million and $3.6 million, respectively, during the three-month periods ended June 30, 2023 and July 1, 2022, and gains of $3.4 million and $3.6 million, respectively, during the six-month periods ended June 30, 2023 and July 1, 2022, on the debt that was 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 six-month periods ended June 30, 2023 and July 1, 2022. |
Allowances for Doubtful Accounts | Allowances for Doubtful Accounts All trade accounts and unbilled receivables are reported in the Consolidated Condensed Balance Sheets 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. During the three and six-month periods ending June 30, 2023 and July 1, 2022, the activity was immaterial. |
Restructuring | Restructuring We initiated a discrete plan in the first quarter of 2023 that is expected to be completed by December 31, 2023. The nature of these activities were broadly consistent throughout our segments and consist primarily of targeted workforce reductions in response to overall macroeconomic and other external conditions. We incurred these costs to position ourselves to provide superior products and services to customers in a cost-efficient manner, while taking into consideration the impact of broad economic uncertainties. During the three and six-month periods ended June 30, 2023, we incurred charges of $10.7 million and $28.3 million, respectively. These charges are included in Cost of sales and Selling, general, and administrative expenses in the Consolidated Condensed Statements of Earnings. Accrued restructuring costs were $14.2 million as of June 30, 2023 and are included within Accrued expenses and other current liabilities in the Consolidated Condensed Balance Sheets. The total |
Convertible Senior Notes | 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 (“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. Upon conversion of the Convertible Notes, holders were entitled to receive cash, shares of our common stock, or a combination thereof, at our election. Upon adopting 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 (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), on January 1, 2022, we accounted for the Convertible Notes under the if-converted method in our calculation of diluted EPS, as required under the new guidance. On February 15, 2022, the maturity date of the Convertible Notes, Fortive repaid, in cash, $1.2 billion in outstanding principal and accrued interest thereon. |
Recently Issued Accounting Standard | Recently Issued Accounting Standard The Financial Accounting Standards Board (“FASB”) establishes changes to accounting principles under GAAP in the form of accounting standards updates (“ASUs”) to the Accounting Standards Codification (“ASC”). We consider the applicability and impact of all ASUs. Any recently issued ASUs were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company’s result of operations, financials position or cash flows. |
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 revenue primarily from the sale of products, including software, and services. Revenue is recognized when control of promised products or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products, software, or services. Product sales include revenue from the sale of products and equipment, which includes our software and SaaS product offerings and equipment rentals. Service sales include revenues from extended warranties, post-contract customer support (“PCS”), maintenance contracts or services, contract labor to perform ongoing service at a customer location, services related to previously sold products, and software implementation services. 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 $97 million as of June 30, 2023 and $82 million as of December 31, 2022. Contract assets are recorded in Prepaid expenses and other current assets in our Consolidated Condensed Balance Sheets. Contract Costs — We incur and capitalize incremental costs to obtain certain contracts, typically sales-related commissions where the amortization period is greater than one year and costs associated with assets used by our customers in certain service arrangements. As of June 30, 2023 and December 31, 2022, we had $48 million and $42 million, respectively, in net revenue-related contract costs primarily related to certain software contracts. Revenue-related contract costs are recorded in the Prepaid expenses and other current assets and Other assets line items in our Consolidated Condensed Balance Sheets. These assets have estimated useful lives between three Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to subscription-based software contracts, PCS and extended warranty sales, where we generally receive up-front payment and recognize revenue over the service or support term. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The current portion of deferred revenue is included in Accrued expenses and other current liabilities and the noncurrent portion of deferred revenue is included in Other long-term liabilities in our Consolidated Condensed Balance Sheets. Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, non-cancelable orders and the average contract value for software contracts, for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below. |
BUSINESS OVERVIEW (Tables)
BUSINESS OVERVIEW (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Reclassification of Accumulated Other Comprehensive Income | The changes in AOCI by component are summarized below ($ in millions): Foreign Pension & post-retirement plan benefit adjustments (a) Total For the Three Months Ended June 30, 2023: Balance, March 31, 2023 $ (288.0) $ (24.3) $ (312.3) Other comprehensive income (loss) before reclassifications, net of income taxes (7.4) — (7.4) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — (0.5) (b) (0.5) Income tax impact — 0.3 0.3 Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — (0.2) (0.2) Net current period other comprehensive income (loss), net of income taxes (7.4) (0.2) (7.6) Balance, June 30, 2023 $ (295.4) $ (24.5) $ (319.9) For the Three Months Ended July 1, 2022: Balance, April 1, 2022 $ (162.1) $ (61.8) $ (223.9) Other comprehensive income (loss) before reclassifications, net of income taxes (121.3) — (121.3) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) 2.7 0.5 (b) 3.2 Income tax impact — (0.1) (0.1) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes 2.7 0.4 3.1 Net current period other comprehensive income (loss), net of income taxes (118.6) 0.4 (118.2) Balance, July 1, 2022 $ (280.7) $ (61.4) $ (342.1) Foreign Pension & post-retirement plan benefit adjustments (a) Total For the Six Months Ended June 30, 2023: Balance, December 31, 2022 $ (301.4) $ (24.3) $ (325.7) Other comprehensive income (loss) before reclassifications, net of income taxes 6.0 — 6.0 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — (0.4) (b) (0.4) Income tax impact — 0.2 0.2 Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — (0.2) (0.2) Net current period other comprehensive income (loss) 6.0 (0.2) 5.8 Balance, June 30, 2023 $ (295.4) $ (24.5) $ (319.9) For the Six Months Ended July 1, 2022: Balance, December 31, 2021 $ (122.7) $ (62.3) $ (185.0) Other comprehensive income (loss) before reclassifications, net of income taxes (160.7) — (160.7) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) 2.7 1.1 (b) 3.8 Income tax impact — (0.2) (0.2) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes 2.7 0.9 3.6 Net current period other comprehensive income (loss) (158.0) 0.9 (157.1) Balance, July 1, 2022 $ (280.7) $ (61.4) $ (342.1) (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 12 in our most recently filed Form 10-K for additional details). |
GOODWILL (Tables)
GOODWILL (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following is a roll forward of our carrying value of goodwill by segment ($ in millions): Balance, Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Total Goodwill Balance, December 31, 2022 $ 4,074.4 $ 1,810.2 $ 3,163.9 $ 9,048.5 Foreign currency translation and other 13.5 (5.1) (5.0) 3.4 Balance, June 30, 2023 $ 4,087.9 $ 1,805.1 $ 3,158.9 $ 9,051.9 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 Deferred compensation liabilities $ — $ 37.5 $ — $ 37.5 December 31, 2022 Deferred compensation liabilities — 31.5 — 31.5 |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amount and fair value of financial instruments are as follows ($ in millions): June 30, 2023 December 31, 2022 Carrying Amount Fair Value Carrying Amount Fair Value Current portion of long-term debt $ 999.9 $ 1,000.0 $ 999.7 $ 1,000.0 Long-term debt, net of current maturities 1,978.2 1,824.4 2,251.6 2,078.1 |
FINANCING (Tables)
FINANCING (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Value of Debt | The components of our debt were as follows ($ in millions): June 30, 2023 December 31, 2022 U.S. dollar-denominated commercial paper $ 135.0 $ 405.0 Delayed-Draw Term Loan due 2023 1,000.0 1,000.0 Euro Term Loan due 2025 300.0 294.4 Yen Term Loan due 2025 99.8 109.8 3.15% senior unsecured notes due 2026 900.0 900.0 4.30% senior unsecured notes due 2046 550.0 550.0 Long-term debt, principal amounts 2,984.8 3,259.2 Less: aggregate unamortized debt discounts, premiums, and issuance costs 6.7 7.9 Long-term debt, carrying value 2,978.1 3,251.3 Less: current portion of long-term debt 999.9 999.7 Long-term debt, net of current maturities $ 1,978.2 $ 2,251.6 |
Schedule of Short-Term Debt | The details of our outstanding Commercial Paper Programs as of June 30, 2023 were as follows ($ in millions): Carrying value (a) Annual effective rate Weighted average maturity (in days) U.S. dollar-denominated commercial paper $ 134.8 5.39 % 17 (a) Net of unamortized debt discount. |
SALES (Tables)
SALES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Liabilities | Our contract liabilities consisted of the following ($ in millions): June 30, 2023 December 31, 2022 Deferred revenue - current $ 495.4 $ 509.6 Deferred revenue - noncurrent 41.5 38.0 Total contract liabilities $ 536.9 $ 547.6 |
Schedule of Remaining Performance Obligations | The aggregate remaining performance obligations attributable to each of our segments is as follows ($ in millions): June 30, 2023 Intelligent Operating Solutions $ 565.8 Precision Technologies 54.7 Advanced Healthcare Solutions 58.4 Total remaining performance obligations $ 678.9 |
Schedule of Disaggregation of Revenue | Disaggregation of revenue for the three-month period ended June 30, 2023 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 1,290.8 $ 546.4 $ 481.0 $ 263.4 Sales of services 235.6 106.7 56.4 72.5 Total $ 1,526.4 $ 653.1 $ 537.4 $ 335.9 Geographic: United States $ 827.8 $ 362.0 $ 273.2 $ 192.6 China 178.9 58.6 94.1 26.2 All other (each country individually less than 5% of total sales) 519.7 232.5 170.1 117.1 Total $ 1,526.4 $ 653.1 $ 537.4 $ 335.9 End markets: (a) Direct sales: Healthcare $ 359.6 $ 11.6 $ 35.3 $ 312.7 Industrial & Manufacturing 357.8 232.6 117.8 7.4 Utilities & Power 104.6 46.3 58.3 — Government 132.9 77.2 47.0 8.7 Communications, Electronics & Semiconductor 97.4 23.3 73.4 0.7 Aerospace & Defense 76.3 0.2 76.1 — Oil & Gas 71.6 67.6 4.0 — Retail & Consumer 84.4 62.1 22.3 — Other 181.6 100.1 81.5 — Total direct sales 1,466.2 621.0 515.7 329.5 Distributors 60.2 32.1 21.7 6.4 Total $ 1,526.4 $ 653.1 $ 537.4 $ 335.9 (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 July 1, 2022 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 1,229.4 $ 534.2 $ 444.7 $ 250.5 Sales of services 233.9 95.9 54.4 83.6 Total $ 1,463.3 $ 630.1 $ 499.1 $ 334.1 Geographic: United States $ 779.0 $ 341.1 $ 249.6 $ 188.3 China 182.7 56.1 101.6 25.0 All other (each country individually less than 5% of total sales) 501.6 232.9 147.9 120.8 Total $ 1,463.3 $ 630.1 $ 499.1 $ 334.1 End markets: (a) Direct sales: Healthcare $ 369.8 $ 13.2 $ 41.3 $ 315.3 Industrial & Manufacturing 341.9 227.4 107.7 6.8 Utilities & Power 94.0 47.9 46.1 — Government 110.1 60.5 41.4 8.2 Communications, Electronics & Semiconductor 102.1 26.3 75.4 0.4 Aerospace & Defense 64.7 0.2 64.5 — Oil & Gas 68.6 65.8 2.8 — Retail & Consumer 84.4 60.6 23.8 — Other 158.5 90.1 68.4 — Total direct sales 1,394.1 592.0 471.4 330.7 Distributors 69.2 38.1 27.7 3.4 Total $ 1,463.3 $ 630.1 $ 499.1 $ 334.1 (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 six-month period ended June 30, 2023 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 2,527.4 $ 1,083.8 $ 941.3 $ 502.3 Sales of services 459.7 201.4 111.6 146.7 Total $ 2,987.1 $ 1,285.2 $ 1,052.9 $ 649.0 Geographic: United States $ 1,599.3 $ 702.1 $ 524.5 $ 372.7 China 360.3 123.5 186.3 50.5 All other (each country individually less than 5% of total sales) 1,027.5 459.6 342.1 225.8 Total $ 2,987.1 $ 1,285.2 $ 1,052.9 $ 649.0 End markets: (a) Direct sales: Healthcare $ 699.0 $ 22.5 $ 69.8 $ 606.7 Industrial & Manufacturing 711.0 460.9 236.0 14.1 Utilities & Power 203.5 93.6 109.9 — Government 244.0 139.0 87.9 17.1 Communications, Electronics & Semiconductor 203.3 48.9 153.0 1.4 Aerospace & Defense 143.9 0.3 143.6 — Oil & Gas 141.9 133.5 8.4 — Retail & Consumer 167.3 124.4 42.9 — Other 351.7 195.1 156.6 — Total direct sales 2,865.6 1,218.2 1,008.1 639.3 Distributors 121.5 67.0 44.8 9.7 Total $ 2,987.1 $ 1,285.2 $ 1,052.9 $ 649.0 (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 six-month period ended July 1, 2022 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 2,382.1 $ 1,034.7 $ 855.3 $ 492.1 Sales of services 457.7 183.0 106.2 168.5 Total $ 2,839.8 $ 1,217.7 $ 961.5 $ 660.6 Geographic: United States $ 1,518.9 $ 663.0 $ 483.6 $ 372.3 China 328.1 104.0 170.9 53.2 All other (each country individually less than 5% of total sales) 992.8 450.7 307.0 235.1 Total $ 2,839.8 $ 1,217.7 $ 961.5 $ 660.6 End markets: (a) Direct sales: Healthcare $ 723.1 $ 23.5 $ 78.4 $ 621.2 Industrial & Manufacturing 663.8 438.5 211.4 13.9 Utilities & Power 180.3 90.9 89.4 — Government 215.8 112.1 86.1 17.6 Communications, Electronics & Semiconductor 189.9 50.1 138.8 1.0 Aerospace & Defense 120.1 0.3 119.8 — Oil & Gas 133.4 128.1 5.3 — Retail & Consumer 165.6 124.3 41.3 — Other 312.4 177.6 134.7 0.1 Total direct sales 2,704.4 1,145.4 905.2 653.8 Distributors 135.4 72.3 56.3 6.8 Total $ 2,839.8 $ 1,217.7 $ 961.5 $ 660.6 (a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 Six Months Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Stock Awards: Pretax compensation expense $ 19.9 $ 16.0 $ 38.0 $ 28.7 Income tax benefit (2.7) (3.0) (5.3) (4.7) Stock Award expense, net of income taxes 17.2 13.0 32.7 24.0 Stock options: Pretax compensation expense 9.1 9.1 17.7 16.3 Income tax benefit (1.3) (1.4) (2.5) (2.4) Stock option expense, net of income taxes 7.8 7.7 15.2 13.9 Total stock-based compensation: Pretax compensation expense 29.0 25.1 55.7 45.0 Income tax benefit (4.0) (4.4) (7.8) (7.1) Total stock-based compensation expense, net of income taxes $ 25.0 $ 20.7 $ 47.9 $ 37.9 |
Schedule of Future Compensation | Future compensation amounts will be adjusted for any changes in estimated forfeitures ($ in millions): Stock Awards $ 53.3 Stock options 121.5 Total unrecognized compensation cost $ 174.8 |
NET EARNINGS PER SHARE (Tables)
NET EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 Six Months Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Numerator Net earnings $ 209.0 $ 173.0 $ 382.6 $ 338.1 Convertible note interest add-back (if converted method) — — — 1.8 Diluted Net Earnings $ 209.0 $ 173.0 $ 382.6 $ 339.9 Denominator Weighted average common shares outstanding used in basic earnings per share 353.0 357.4 353.3 358.3 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive Stock Awards 2.5 2.4 2.7 2.7 Conversion of convertible notes (if converted method) — — — 3.2 Weighted average common shares outstanding used in diluted earnings per share 355.5 359.8 356.0 364.2 Net earnings per common share - Basic $ 0.59 $ 0.48 $ 1.08 $ 0.94 Net earnings per common share - Diluted $ 0.59 $ 0.48 $ 1.07 $ 0.93 |
Schedule of Dividends Declared | We declared and paid cash dividends per common share for the periods as presented below. Dividend Per Amount 2023: First quarter $ 0.07 $ 24.7 Second quarter 0.07 24.6 Total $ 0.14 $ 49.3 2022: First quarter $ 0.07 $ 25.1 Second quarter 0.07 24.9 Total $ 0.14 $ 50.0 * The sum of the components of total dividends paid may not equal the total amount due to rounding. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Our segment results are as follows ($ in millions): Three Months Ended Six Months Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Sales: Intelligent Operating Solutions $ 653.1 $ 630.1 $ 1,285.2 $ 1,217.7 Precision Technologies 537.4 499.1 1,052.9 961.5 Advanced Healthcare Solutions 335.9 334.1 649.0 660.6 Total $ 1,526.4 $ 1,463.3 $ 2,987.1 $ 2,839.8 Operating Profit: Intelligent Operating Solutions $ 161.7 $ 129.9 $ 295.2 $ 236.9 Precision Technologies 136.3 115.3 259.0 216.7 Advanced Healthcare Solutions 25.9 28.1 42.2 56.1 Other (32.6) (24.8) (64.7) (48.9) Russia exit and wind down costs — (16.2) — (16.2) Total Operating Profit 291.3 232.3 531.7 444.6 Interest expense, net (33.1) (21.0) (65.2) (39.8) Other non-operating expense, net (7.8) (3.1) (10.3) (5.8) Earnings before income taxes $ 250.4 $ 208.2 $ 456.2 $ 399.0 |
BUSINESS OVERVIEW - Narrative (
BUSINESS OVERVIEW - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||||
Feb. 15, 2022 USD ($) | Feb. 22, 2019 USD ($) | Jun. 30, 2023 USD ($) country | Jul. 01, 2022 USD ($) | Jun. 30, 2023 USD ($) country | Jul. 01, 2022 USD ($) | Jul. 01, 2022 JPY (¥) | Jul. 01, 2022 EUR (€) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Number of countries in which entity operates (more than) | country | 50 | 50 | ||||||
Russia exit and wind down costs | $ 0 | $ 16,200,000 | $ 0 | $ 16,200,000 | ||||
After-tax foreign currency transaction gain (loss) from foreign currency translation | 5,100,000 | $ 3,600,000 | 3,400,000 | 3,600,000 | ||||
Repayments of convertible debt | 0 | $ 1,156,500,000 | ||||||
Facility exit and other related | Discrete Restructuring Plan | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Restructuring charges | 10,700,000 | 28,300,000 | ||||||
Accrued restructuring costs | 14,200,000 | 14,200,000 | ||||||
Facility exit and other related | Discrete Restructuring Plan | Maximum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Restructuring and related cost | 35,000,000 | 35,000,000 | ||||||
Facility exit and other related | Discrete Restructuring Plan | Minimum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Restructuring and related cost | $ 30,000,000 | $ 30,000,000 | ||||||
Yen Term Loan | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Principal amount | ¥ | ¥ 14,400,000,000 | |||||||
Euro Term Loan | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Principal amount | € | € 275,000,000 | |||||||
Euro Term Loan | Convertible Debt | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Principal amount | $ 187,500,000 | |||||||
Senior Convertible Notes Due 2022 | Convertible Debt | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Proceeds from the issuance of convertible notes | $ 1,400,000,000 | |||||||
Interest rate, stated percentage | 0.875% | |||||||
Repayments of convertible debt | $ 1,200,000,000 |
BUSINESS OVERVIEW - Accumulated
BUSINESS OVERVIEW - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jul. 01, 2022 | Apr. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 9,688.6 | $ 9,688.6 | ||||
Other comprehensive income (loss) before reclassifications, net of income taxes | $ (7.4) | $ (121.3) | 6 | $ (160.7) | ||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||
Increase (decrease) | (0.5) | 3.2 | (0.4) | 3.8 | ||
Income tax impact | 0.3 | (0.1) | 0.2 | (0.2) | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | (0.2) | 3.1 | (0.2) | 3.6 | ||
Total other comprehensive income (loss), net of income taxes | (7.6) | (118.2) | 5.8 | (157.1) | ||
Ending balance | 9,971.8 | 9,971.8 | ||||
Foreign currency translation adjustments | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Beginning balance | (288) | (301.4) | (162.1) | $ (122.7) | (301.4) | (122.7) |
Other comprehensive income (loss) before reclassifications, net of income taxes | (7.4) | (121.3) | 6 | (160.7) | ||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||
Increase (decrease) | 0 | 2.7 | 0 | 2.7 | ||
Income tax impact | 0 | 0 | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0 | 2.7 | 0 | 2.7 | ||
Total other comprehensive income (loss), net of income taxes | (7.4) | (118.6) | 6 | (158) | ||
Ending balance | (295.4) | (288) | (280.7) | (162.1) | (295.4) | (280.7) |
Pension & post-retirement plan benefit adjustments | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Beginning balance | (24.3) | (24.3) | (61.8) | (62.3) | (24.3) | (62.3) |
Other comprehensive income (loss) before reclassifications, net of income taxes | 0 | 0 | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||
Increase (decrease) | (0.5) | 0.5 | (0.4) | 1.1 | ||
Income tax impact | 0.3 | (0.1) | 0.2 | (0.2) | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | (0.2) | 0.4 | (0.2) | 0.9 | ||
Total other comprehensive income (loss), net of income taxes | (0.2) | 0.4 | (0.2) | 0.9 | ||
Ending balance | (24.5) | (24.3) | (61.4) | (61.8) | (24.5) | (61.4) |
Accumulated Other Comprehensive Loss | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Beginning balance | (312.3) | (325.7) | (223.9) | (185) | (325.7) | (185) |
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||
Total other comprehensive income (loss), net of income taxes | (7.6) | 13.4 | (118.2) | (38.9) | ||
Ending balance | $ (319.9) | $ (312.3) | $ (342.1) | $ (223.9) | $ (319.9) | $ (342.1) |
GOODWILL - Rollforward of Goodw
GOODWILL - Rollforward of Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 9,048.5 |
Foreign currency translation and other | 3.4 |
Ending balance | 9,051.9 |
Intelligent Operating Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 4,074.4 |
Foreign currency translation and other | 13.5 |
Ending balance | 4,087.9 |
Precision Technologies | |
Goodwill [Roll Forward] | |
Beginning balance | 1,810.2 |
Foreign currency translation and other | (5.1) |
Ending balance | 1,805.1 |
Advanced Healthcare Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 3,163.9 |
Foreign currency translation and other | (5) |
Ending balance | $ 3,158.9 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liabilities | $ 37.5 | $ 31.5 |
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 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liabilities | 37.5 | 31.5 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current portion of long-term debt, carrying amount | $ 999.9 | $ 999.7 |
Long-term debt, net of current maturities, carrying value | 1,978.2 | 2,251.6 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current portion of long-term debt, carrying amount | 999.9 | 999.7 |
Current portion of long-term debt, fair value | 1,000 | 1,000 |
Long-term debt, net of current maturities, carrying value | 1,978.2 | 2,251.6 |
Long-term debt, net of current maturities, fair value | $ 1,824.4 | $ 2,078.1 |
FINANCING - Components of Debt
FINANCING - Components of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt, principal amounts | $ 2,984.8 | $ 3,259.2 |
Less: aggregate unamortized debt discounts, premiums, and issuance costs | 6.7 | 7.9 |
Long-term debt, carrying value | 2,978.1 | 3,251.3 |
Less: current portion of long-term debt | 999.9 | 999.7 |
Long-term debt, net of current maturities | 1,978.2 | 2,251.6 |
U.S. dollar-denominated commercial paper | Commercial Paper | ||
Debt Instrument [Line Items] | ||
Long-term debt, principal amounts | 135 | 405 |
Long-term debt, carrying value | 134.8 | |
Delayed-Draw Term Loan due 2023 | Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, principal amounts | 1,000 | 1,000 |
Euro Term Loan due 2025 | Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, principal amounts | 300 | 294.4 |
Yen Term Loan due 2025 | Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, principal amounts | 99.8 | 109.8 |
3.15% senior unsecured notes due 2026 | Registered Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, principal amounts | $ 900 | 900 |
Interest rate, stated percentage | 3.15% | |
4.30% senior unsecured notes due 2046 | Registered Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, principal amounts | $ 550 | $ 550 |
Interest rate, stated percentage | 4.30% |
FINANCING - Narrative (Details)
FINANCING - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
U.S. dollar-denominated commercial paper | Commercial Paper | |
Debt Instrument [Line Items] | |
Debt term | 17 days |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Debt term | 5 years |
Maximum borrowing capacity | $ 2,000,000,000 |
Outstanding borrowings | $ 0 |
Maximum | U.S. dollar-denominated commercial paper | Commercial Paper | |
Debt Instrument [Line Items] | |
Debt term | 397 days |
Maximum | Euro Denominated Commercial Paper | Commercial Paper | |
Debt Instrument [Line Items] | |
Debt term | 183 days |
FINANCING - Outstanding Paper P
FINANCING - Outstanding Paper Programs (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Short-term Debt [Line Items] | ||
Carrying value (a) | $ 2,978.1 | $ 3,251.3 |
U.S. dollar-denominated commercial paper | Commercial Paper | ||
Short-term Debt [Line Items] | ||
Carrying value (a) | $ 134.8 | |
Annual effective rate | 5.39% | |
Weighted average maturity (in days) | 17 days |
SALES - Narrative (Details)
SALES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Capitalized Contract Cost [Line Items] | |||
Contract assets | $ 97 | $ 97 | $ 82 |
Net revenue-related contract assets | 48 | 48 | $ 42 |
Contract liabilities, revenue recognized | $ (113) | $ (288) | |
Minimum | |||
Capitalized Contract Cost [Line Items] | |||
Useful life | 3 years | 3 years | |
Maximum | |||
Capitalized Contract Cost [Line Items] | |||
Useful life | 5 years | 5 years |
SALES - Contract liabilities (D
SALES - Contract liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue - current | $ 495.4 | $ 509.6 |
Deferred revenue - noncurrent | 41.5 | 38 |
Total contract liabilities | $ 536.9 | $ 547.6 |
SALES - Revenue, Remaining Perf
SALES - Revenue, Remaining Performance Obligation (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 678.9 |
Intelligent Operating Solutions | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 565.8 |
Precision Technologies | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 54.7 |
Advanced Healthcare Solutions | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 58.4 |
SALES - Remaining Performance O
SALES - Remaining Performance Obligation, Expected Timing (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | Jun. 30, 2023 |
Period One | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 75% |
Remaining performance obligation, expected timing | 2 years |
Period Two | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 90% |
Remaining performance obligation, expected timing | 3 years |
Period Three | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 100% |
Remaining performance obligation, expected timing | 4 years |
SALES - Disaggregation of Reven
SALES - Disaggregation of Revenue (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) | Jul. 01, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jul. 01, 2022 USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Total sales | $ 1,526.4 | $ 1,463.3 | $ 2,987.1 | $ 2,839.8 |
Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 359.6 | 369.8 | 699 | 723.1 |
Industrial & Manufacturing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 357.8 | 341.9 | 711 | 663.8 |
Utilities & Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 104.6 | 94 | 203.5 | 180.3 |
Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 132.9 | 110.1 | 244 | 215.8 |
Communications, Electronics & Semiconductor | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 97.4 | 102.1 | 203.3 | 189.9 |
Aerospace & Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 76.3 | 64.7 | 143.9 | 120.1 |
Oil & Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 71.6 | 68.6 | 141.9 | 133.4 |
Retail & Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 84.4 | 84.4 | 167.3 | 165.6 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 181.6 | 158.5 | 351.7 | 312.4 |
Total direct sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 1,466.2 | 1,394.1 | 2,865.6 | 2,704.4 |
Distributors | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 60.2 | 69.2 | 121.5 | 135.4 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 827.8 | 779 | 1,599.3 | 1,518.9 |
China | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 178.9 | 182.7 | 360.3 | 328.1 |
All other (each country individually less than 5% of total sales) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | $ 519.7 | $ 501.6 | $ 1,027.5 | $ 992.8 |
Percentage of total sales | 0.05 | 0.05 | 0.05 | 0.05 |
Sales of products and software | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | $ 1,290.8 | $ 1,229.4 | $ 2,527.4 | $ 2,382.1 |
Sales of services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 235.6 | 233.9 | 459.7 | 457.7 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 1,526.4 | 1,463.3 | ||
Operating Segments | Intelligent Operating Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 653.1 | 630.1 | 1,285.2 | 1,217.7 |
Operating Segments | Intelligent Operating Solutions | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 11.6 | 13.2 | 22.5 | 23.5 |
Operating Segments | Intelligent Operating Solutions | Industrial & Manufacturing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 232.6 | 227.4 | 460.9 | 438.5 |
Operating Segments | Intelligent Operating Solutions | Utilities & Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 46.3 | 47.9 | 93.6 | 90.9 |
Operating Segments | Intelligent Operating Solutions | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 77.2 | 60.5 | 139 | 112.1 |
Operating Segments | Intelligent Operating Solutions | Communications, Electronics & Semiconductor | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 23.3 | 26.3 | 48.9 | 50.1 |
Operating Segments | Intelligent Operating Solutions | Aerospace & Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 0.2 | 0.2 | 0.3 | 0.3 |
Operating Segments | Intelligent Operating Solutions | Oil & Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 67.6 | 65.8 | 133.5 | 128.1 |
Operating Segments | Intelligent Operating Solutions | Retail & Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 62.1 | 60.6 | 124.4 | 124.3 |
Operating Segments | Intelligent Operating Solutions | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 100.1 | 90.1 | 195.1 | 177.6 |
Operating Segments | Intelligent Operating Solutions | Total direct sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 621 | 592 | 1,218.2 | 1,145.4 |
Operating Segments | Intelligent Operating Solutions | Distributors | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 32.1 | 38.1 | 67 | 72.3 |
Operating Segments | Intelligent Operating Solutions | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 362 | 341.1 | 702.1 | 663 |
Operating Segments | Intelligent Operating Solutions | China | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 58.6 | 56.1 | 123.5 | 104 |
Operating Segments | Intelligent Operating Solutions | All other (each country individually less than 5% of total sales) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 232.5 | 232.9 | 459.6 | 450.7 |
Operating Segments | Intelligent Operating Solutions | Sales of products and software | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 546.4 | 534.2 | 1,083.8 | 1,034.7 |
Operating Segments | Intelligent Operating Solutions | Sales of services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 106.7 | 95.9 | 201.4 | 183 |
Operating Segments | Precision Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 537.4 | 499.1 | 1,052.9 | 961.5 |
Operating Segments | Precision Technologies | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 35.3 | 41.3 | 69.8 | 78.4 |
Operating Segments | Precision Technologies | Industrial & Manufacturing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 117.8 | 107.7 | 236 | 211.4 |
Operating Segments | Precision Technologies | Utilities & Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 58.3 | 46.1 | 109.9 | 89.4 |
Operating Segments | Precision Technologies | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 47 | 41.4 | 87.9 | 86.1 |
Operating Segments | Precision Technologies | Communications, Electronics & Semiconductor | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 73.4 | 75.4 | 153 | 138.8 |
Operating Segments | Precision Technologies | Aerospace & Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 76.1 | 64.5 | 143.6 | 119.8 |
Operating Segments | Precision Technologies | Oil & Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 4 | 2.8 | 8.4 | 5.3 |
Operating Segments | Precision Technologies | Retail & Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 22.3 | 23.8 | 42.9 | 41.3 |
Operating Segments | Precision Technologies | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 81.5 | 68.4 | 156.6 | 134.7 |
Operating Segments | Precision Technologies | Total direct sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 515.7 | 471.4 | 1,008.1 | 905.2 |
Operating Segments | Precision Technologies | Distributors | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 21.7 | 27.7 | 44.8 | 56.3 |
Operating Segments | Precision Technologies | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 273.2 | 249.6 | 524.5 | 483.6 |
Operating Segments | Precision Technologies | China | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 94.1 | 101.6 | 186.3 | 170.9 |
Operating Segments | Precision Technologies | All other (each country individually less than 5% of total sales) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 170.1 | 147.9 | 342.1 | 307 |
Operating Segments | Precision Technologies | Sales of products and software | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 481 | 444.7 | 941.3 | 855.3 |
Operating Segments | Precision Technologies | Sales of services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 56.4 | 54.4 | 111.6 | 106.2 |
Operating Segments | Advanced Healthcare Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 335.9 | 334.1 | 649 | 660.6 |
Operating Segments | Advanced Healthcare Solutions | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 312.7 | 315.3 | 606.7 | 621.2 |
Operating Segments | Advanced Healthcare Solutions | Industrial & Manufacturing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 7.4 | 6.8 | 14.1 | 13.9 |
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 | 8.7 | 8.2 | 17.1 | 17.6 |
Operating Segments | Advanced Healthcare Solutions | Communications, Electronics & Semiconductor | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 0.7 | 0.4 | 1.4 | 1 |
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 | 0 | 0 | 0.1 |
Operating Segments | Advanced Healthcare Solutions | Total direct sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 329.5 | 330.7 | 639.3 | 653.8 |
Operating Segments | Advanced Healthcare Solutions | Distributors | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 6.4 | 3.4 | 9.7 | 6.8 |
Operating Segments | Advanced Healthcare Solutions | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 192.6 | 188.3 | 372.7 | 372.3 |
Operating Segments | Advanced Healthcare Solutions | China | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 26.2 | 25 | 50.5 | 53.2 |
Operating Segments | Advanced Healthcare Solutions | All other (each country individually less than 5% of total sales) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 117.1 | 120.8 | 225.8 | 235.1 |
Operating Segments | Advanced Healthcare Solutions | Sales of products and software | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | 263.4 | 250.5 | 502.3 | 492.1 |
Operating Segments | Advanced Healthcare Solutions | Sales of services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales | $ 72.5 | $ 83.6 | $ 146.7 | $ 168.5 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (as a percent) | 16.50% | 16.90% | 16.10% | 15.30% |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) shares in Millions | 6 Months Ended |
Jun. 30, 2023 shares | |
Share-Based Payment Arrangement [Abstract] | |
Shares of common stock reserved for issuance under the stock plan (in shares) | 14 |
Remaining service period related to the awards | 2 years |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pretax compensation expense | $ 29 | $ 25.1 | $ 55.7 | $ 45 |
Income tax benefit | (4) | (4.4) | (7.8) | (7.1) |
Total stock-based compensation expense | 25 | 20.7 | 47.9 | 37.9 |
Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pretax compensation expense | 19.9 | 16 | 38 | 28.7 |
Income tax benefit | (2.7) | (3) | (5.3) | (4.7) |
Total stock-based compensation expense | 17.2 | 13 | 32.7 | 24 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pretax compensation expense | 9.1 | 9.1 | 17.7 | 16.3 |
Income tax benefit | (1.3) | (1.4) | (2.5) | (2.4) |
Total stock-based compensation expense | $ 7.8 | $ 7.7 | $ 15.2 | $ 13.9 |
STOCK-BASED COMPENSATION - Unre
STOCK-BASED COMPENSATION - Unrecognized Compensation Cost (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation cost | $ 174.8 |
Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation cost | 53.3 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation cost | $ 121.5 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Warranty period - minimum | 90 days | ||||
Operating lease cost | $ 12 | $ 14 | $ 24 | $ 29 | |
Cash paid for operating leases | 24 | 26 | |||
ROU assets obtained in exchange for operating lease obligations | 18 | $ 6 | |||
Operating lease, right-of-use asset | 158 | 158 | $ 162 | ||
Total lease liabilities | $ 166 | $ 166 | $ 169 |
NET EARNINGS PER SHARE - Narrat
NET EARNINGS PER SHARE - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | Feb. 17, 2022 | Feb. 22, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Number of shares authorized to be repurchased (in shares) | 20,000,000 | |||||
Common stock repurchases (in shares) | 2,000,000 | 3,000,000 | 2,000,000 | 4,000,000 | ||
Common stock average price (in dollar per share) | $ 64.54 | $ 59.71 | $ 64.54 | $ 60.71 | ||
Number of shares authorized to be repurchased | $ 11 | $ 11 | ||||
Stock options | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,700,000 | 7,700,000 | 2,700,000 | 7,500,000 | ||
Senior Convertible Notes Due 2022 | Convertible Debt | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Interest rate, stated percentage | 0.875% |
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Numerator | ||||
Net earnings | $ 209 | $ 173 | $ 382.6 | $ 338.1 |
Convertible note interest add-back (if converted method) | 0 | 0 | 0 | 1.8 |
Diluted Net Earnings | $ 209 | $ 173 | $ 382.6 | $ 339.9 |
Denominator | ||||
Weighted average common shares outstanding used in basic earnings per share (in shares) | 353 | 357.4 | 353.3 | 358.3 |
Incremental common shares from: | ||||
Assumed exercise of dilutive options and vesting of dilutive stock awards (in shares) | 2.5 | 2.4 | 2.7 | 2.7 |
Conversion of convertible notes (if converted method) (in shares) | 0 | 0 | 0 | 3.2 |
Weighted average common shares outstanding used in diluted earnings per share (in shares) | 355.5 | 359.8 | 356 | 364.2 |
Net earnings per common share - Basic (in dollars per share) | $ 0.59 | $ 0.48 | $ 1.08 | $ 0.94 |
Net earnings per common share - Diluted (in dollars per share) | $ 0.59 | $ 0.48 | $ 1.07 | $ 0.93 |
NET EARNINGS PER SHARE - Divide
NET EARNINGS PER SHARE - Dividends Declared and Paid (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jul. 01, 2022 | Apr. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Earnings Per Share [Abstract] | ||||||
Dividend per common share (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.14 | $ 0.14 |
Amount, common shares | $ 24.6 | $ 24.7 | $ 24.9 | $ 25.1 | $ 49.3 | $ 50 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
SEGMENT INFORMATION - Detailed
SEGMENT INFORMATION - Detailed Segment Data (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total sales | $ 1,526.4 | $ 1,463.3 | $ 2,987.1 | $ 2,839.8 |
Total Operating Profit | 291.3 | 232.3 | 531.7 | 444.6 |
Russia exit and wind down costs | 0 | 16.2 | 0 | 16.2 |
Interest expense, net | (33.1) | (21) | (65.2) | (39.8) |
Other non-operating expense, net | (7.8) | (3.1) | (10.3) | (5.8) |
Earnings before income taxes | 250.4 | 208.2 | 456.2 | 399 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 1,526.4 | 1,463.3 | ||
Total Operating Profit | 291.3 | 232.3 | 531.7 | 444.6 |
Operating Segments | Intelligent Operating Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 653.1 | 630.1 | 1,285.2 | 1,217.7 |
Total Operating Profit | 161.7 | 129.9 | 295.2 | 236.9 |
Operating Segments | Precision Technologies | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 537.4 | 499.1 | 1,052.9 | 961.5 |
Total Operating Profit | 136.3 | 115.3 | 259 | 216.7 |
Operating Segments | Advanced Healthcare Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 335.9 | 334.1 | 649 | 660.6 |
Total Operating Profit | 25.9 | 28.1 | 42.2 | 56.1 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Total Operating Profit | (32.6) | (24.8) | (64.7) | (48.9) |
Russia exit and wind down costs | $ 0 | $ (16.2) | $ 0 | $ (16.2) |
Uncategorized Items - ftv-20230
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2020-06 [Member] |