Document and Entity Information
Document and Entity Information - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Apr. 11, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | DOVER Corp | ||
Entity Central Index Key | 0000029905 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 10,776,562,926 | ||
Entity Common Stock, Shares Outstanding | 145,329,437 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | Q1 | ||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2019 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 1,724,757 | $ 1,637,671 |
Cost of goods and services | 1,101,215 | 1,034,842 |
Gross profit | 623,542 | 602,829 |
Selling, General and Administrative Expense | 408,466 | 435,026 |
Loss on assets held for sale | (46,946) | 0 |
Operating earnings | 168,130 | 167,803 |
Interest Expense | 31,808 | 35,640 |
Interest Income | (890) | (2,058) |
Other (income) expense, net | (1,106) | (30) |
Earnings before provision for income taxes | 138,318 | 134,251 |
Provision for income taxes | 32,613 | 24,841 |
Earnings from continuing operations | 105,705 | 109,410 |
Earnings (loss) from discontinued operations | 0 | 22,025 |
Net earnings | $ 105,705 | $ 131,435 |
Earnings per share from continuing operations | ||
Earnings from continuing operations (in dollars per basic share) | $ 0.73 | $ 0.71 |
Earnings from continuing operations (in dollars per diluted share) | 0.72 | 0.70 |
Earnings (loss) per share from discontinued operations: | ||
Earnings (loss) per share from discontinued operations (in dollars per basic share) | 0 | 0.14 |
Earnings (loss) per share from discontinued operations (in dollars per diluted share) | 0 | 0.14 |
Net earnings per share: | ||
Net earnings (in dollars per basic share) | 0.73 | 0.85 |
Net earnings (in dollars per diluted share) | $ 0.72 | $ 0.84 |
Weighted average shares outstanding: | ||
Weighted average shares outstanding - basic | 145,087,000 | 154,520,000 |
Weighted average shares outstanding - diluted | 146,911,000 | 157,090,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 105,705 | $ 131,435 |
Foreign currency translation adjustments [Abstract] | ||
Foreign currency translation (losses) gains | 23,700 | 52,308 |
Reclassification of foreign currency translation losses to earnings | 25,339 | 0 |
Total foreign currency translation adjustment | 49,039 | 52,308 |
Pension and other postretirement benefit plans [Abstract] | ||
Amortization of actuarial losses included in net periodic pension cost | 175 | 1,939 |
Amortization of prior service cost included in net periodic pension cost | 572 | 743 |
Total pension and other postretirement benefit plans | 747 | 2,682 |
Changes in fair value of cash flow hedges [Abstract] | ||
Unrealized net (losses) gains arising during period | 2,594 | 1,362 |
Net losses (gains) reclassified into earnings | (230) | (253) |
Total cash flow hedges | 2,364 | 1,109 |
Other comprehensive (loss) earnings | 52,150 | 56,099 |
Comprehensive earnings | $ 157,855 | $ 187,534 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 243,014 | $ 396,221 |
Receivables, net of allowances | 1,272,053 | 1,231,859 |
Inventories | 828,298 | 748,796 |
Prepaid and other current assets | 141,891 | 126,878 |
Assets held for sale | 44,210 | 0 |
Total current assets | 2,529,466 | 2,503,754 |
Property, plant and equipment, net | 797,682 | 806,497 |
Goodwill | 3,777,277 | 3,677,328 |
Intangible assets, net | 1,149,136 | 1,134,256 |
Other assets and deferred charges | 404,350 | 243,936 |
Total assets | 8,657,911 | 8,365,771 |
Current liabilities: | ||
Notes payable and current maturities of long-term debt | 346,255 | 220,318 |
Accounts payable | 952,162 | 969,531 |
Accrued compensation and employee benefits | 176,726 | 212,666 |
Accrued insurance | 99,215 | 97,600 |
Other accrued expenses | 337,417 | 313,452 |
Federal and other income taxes | 14,566 | 13,854 |
Liabilities held for sale | 20,581 | 0 |
Total current liabilities | 1,946,922 | 1,827,421 |
Long-term debt | 2,940,967 | 2,943,660 |
Deferred income taxes | 349,428 | 339,325 |
Noncurrent income tax payable | 54,304 | 54,304 |
Other liabilities | 528,837 | 432,395 |
Stockholders' Equity: | ||
Total stockholders' equity | 2,837,453 | 2,768,666 |
Total liabilities and stockholders' equity | $ 8,657,911 | $ 8,365,771 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Allowance for doubtful accounts receivable | $ 29,116 | $ 28,469 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Earnings |
Balance at Dec. 31, 2017 | $ 4,383,180 | $ 256,992 | $ 942,485 | $ (5,077,039) | $ 8,455,501 | $ (194,759) |
Net earnings | 131,435 | 0 | 0 | 0 | 131,435 | 0 |
Dividends paid | (72,691) | 0 | 0 | 0 | (72,691) | 0 |
Common stock issued for the exercise of share-based awards | (14,939) | 290 | (15,229) | 0 | 0 | 0 |
Share-based compensation expense | 7,314 | 0 | 7,314 | 0 | 0 | 0 |
Common stock acquired, including accelerated share repurchase program | (44,977) | 0 | 0 | (44,977) | 0 | 0 |
Other comprehensive loss, net of tax | 56,099 | 0 | 0 | 0 | 0 | 56,099 |
Other, net | 26 | 0 | 26 | 0 | 0 | 0 |
Balance at Mar. 31, 2018 | 4,445,622 | 257,282 | 934,596 | (5,122,016) | 8,527,276 | (151,516) |
Balance at Dec. 31, 2017 | 4,383,180 | 256,992 | 942,485 | (5,077,039) | 8,455,501 | (194,759) |
Balance at Dec. 31, 2018 | 2,768,666 | 257,822 | 886,016 | (5,947,562) | 7,815,486 | (243,096) |
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2018-02 [Member] | 0 | 0 | 0 | 0 | 12,856 | (12,856) |
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2014-09 [Member] | 175 | 0 | 0 | 0 | 175 | 0 |
Net earnings | 105,705 | 0 | 0 | 0 | 105,705 | 0 |
Dividends paid | (69,809) | 0 | 0 | 0 | (69,809) | 0 |
Common stock issued for the exercise of share-based awards | (19,608) | 392 | (20,000) | 0 | 0 | 0 |
Share-based compensation expense | 8,182 | 0 | 8,182 | 0 | 0 | 0 |
Other comprehensive loss, net of tax | 52,150 | 0 | 0 | 0 | 0 | 52,150 |
Other, net | (7,833) | 0 | (7,833) | 0 | 0 | 0 |
Balance at Mar. 31, 2019 | $ 2,837,453 | $ 258,214 | $ 866,365 | $ (5,947,562) | $ 7,851,382 | $ (190,946) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid per common share (in dollars per share) | $ 0.48 | $ 0.47 | |
Preferred stock, par value per share | $ 100 | $ 100 | |
Preferred stock, shares authorized | 100,000 | 100,000 | |
Preferred stock, shares issued | 0 | 0 | |
Common stock, par value per share | $ 1 | $ 1 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities | ||
Net earnings | $ 105,705 | $ 131,435 |
Loss (earnings) from discontinued operations | 0 | (22,025) |
Loss on assets held for sale | (46,946) | 0 |
Adjustments to reconcile net earnings to cash from operating activities: | ||
Depreciation and amortization | 67,738 | 68,625 |
Share-based compensation expense | 8,182 | 6,745 |
Other, net | 2,363 | (5,440) |
Cash effect of changes in assets and liabilities (excluding effects of acquisitions, dispositions and foreign exchange): | ||
Accounts receivable, net | (42,252) | 22,781 |
Inventories | (73,041) | (63,554) |
Prepaid expenses and other assets | (14,921) | (14,778) |
Accounts payable | (22,638) | (6,690) |
Accrued compensation and employee benefits | (55,559) | (69,554) |
Accrued expenses and other liabilities | (16,107) | (36,029) |
Accrued and deferred taxes, net | 18,108 | 4,019 |
Net cash provided by operating activities | 24,524 | 15,535 |
Investing Activities | ||
Additions to property, plant and equipment | (37,122) | (44,678) |
Acquisitions, net of cash and cash equivalents acquired | (175,083) | (68,385) |
Proceeds from sale of property, plant, and equipment | 170 | 2,160 |
Proceeds from sale of businesses | 2,245 | 2,069 |
Other | (7,900) | (13,763) |
Net cash (used in) provided by investing activities | (217,690) | (122,597) |
Financing Activities | ||
Repurchase of common stock, including prepayment under an accelerated share repurchase program | 0 | (44,977) |
Change in commercial paper and notes payable | 125,893 | 195,066 |
Dividends paid to stockholders | (69,809) | (72,691) |
Payments to settle employee tax obligations on exercise of share-based awards | (19,608) | (14,943) |
Repayments of long-term debt | 0 | (350,000) |
Other | (409) | (1,558) |
Net cash used in by financing activities | 36,067 | (289,103) |
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 0 | 19,963 |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | 0 | (13,426) |
Net Cash Provided by (Used in) Discontinued Operations | 0 | 6,537 |
Effect of Exchange Rate on Cash and Cash Equivalents | 3,892 | 2,886 |
Net (decrease) increase in cash and cash equivalents | (153,207) | (386,742) |
Cash and cash equivalents at beginning of period | 396,221 | 753,964 |
Cash and cash equivalents at end of period | $ 243,014 | $ 367,222 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited interim Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim periods and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America ("GAAP") for complete financial statements. These unaudited interim Condensed Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes for Dover Corporation ("Dover" or the "Company") for the year ended December 31, 2018, included in the Company's Annual Report on Form 10-K filed with the SEC on February 15, 2019. The year end Condensed Consolidated Balance Sheet was derived from audited financial statements. Certain amounts in the prior periods have been reclassified to conform to the current year presentation. On May 9, 2018, the Company completed a pro-rata distribution of the common stock of Apergy Corporation ("Apergy") to the Company's shareholders of record as of the close of business on April 30, 2018. Apergy holds entities conducting upstream energy businesses previously included in the Energy segment. As discussed in Note 5 - Discontinued and Disposed Operations, the Apergy businesses met the criteria to be reported as discontinued operations because the spin-off is a strategic shift in business that has a major effect on the Company's operations and financial results. Therefore, the Company is reporting the historical results of Apergy, including the results of operations, cash flows, and related assets and liabilities, as discontinued operations for all periods presented herein. Subsequent to the spin-off of Apergy, effective the second quarter of 2018, the Company no longer has the Energy segment and is aligned into three reportable segments. See Note 18 —Segment Information for additional information regarding the updated segments, including segment results for the three months ended March 31, 2019 and 2018. Unless otherwise noted, the accompanying Notes to the Consolidated Financial Statements have all been revised to reflect the effect of the separation of Apergy and all prior year balances have been revised accordingly to reflect continuing operations only. The accompanying unaudited interim Condensed Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may differ from those estimates. The Condensed Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair statement of results for these interim periods. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year. |
Spin-off of Apergy Corporation
Spin-off of Apergy Corporation | 3 Months Ended |
Mar. 31, 2019 | |
Spin-off of Apergy Corporation [Abstract] | |
Spin-Off of Apergy Corporation [Text Block] | 2. Spin-off of Apergy Corporation On May 9, 2018, Dover completed the distribution of Apergy to its shareholders. The transaction was completed through the pro rata distribution of 100% of the common stock of Apergy to Dover's shareholders of record as of the close of business on April 30, 2018. Each Dover shareholder received one share of Apergy common stock for every two shares of Dover common stock held as of the record date. The following is a summary of the assets and liabilities transferred to Apergy as part of the separation on May 9, 2018: Assets: Cash and cash equivalents $ 10,357 Current assets 462,620 Non-current assets 1,438,760 $ 1,911,737 Liabilities: Current liabilities $ 185,354 Non-current liabilities 119,568 $ 304,922 Net assets distributed to Apergy Corporation $ 1,606,815 Less: Cash received from Apergy Corporation 700,000 Net distribution to Apergy Corporation $ 906,815 In connection with the spin-off from the company, Apergy issued and sold $300.0 million in aggregate principal amount of its 6.375% senior notes due May 2026 in a private offering exempt from the registration requirements of the Securities Act of 1933, as amended, and incurred $415.0 million in borrowings under its new senior secured term loan facility to fund a one-time cash payment of $700.0 million to Dover. Dover received net cash of $689.6 million upon separation, which reflects $10.4 million of cash held by Apergy on the distribution date and retained by it in connection with its separation from Dover. Dover utilized the proceeds from Apergy as the primary source of funding for $1 billion of share repurchases started in December 2017 and completed in December 2018. Included within the net assets distributed to Apergy is approximately $33 million of accumulated other comprehensive earnings attributable to Apergy, relating primarily to foreign currency translation gains, offset by unrecognized losses on pension obligations. The historical results of Apergy, including the results of operations, cash flows, and related assets and liabilities have been reclassified to discontinued operations for all periods presented herein. See Note 5 — Held for Sale, Disposed and Discontinued Operations. Pursuant to the separation of Apergy from Dover, and the related separation and distribution agreements, any liabilities due from Dover to Apergy are not significant. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 3. Revenue Effective January 1, 2018, the Company adopted Accounting Standard Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("Topic 606” or “ASC 606”), using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Under Topic 606, a contract with a customer is an agreement which both parties have approved, that creates enforceable rights and obligations, has commercial substance and where payment terms are identified and collectability is probable. Once the Company has entered a contract, it is evaluated to identify performance obligations. For each performance obligation, revenue is recognized as control of promised goods or services transfers to the customer in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. The amount of revenue recognized takes into account variable consideration, such as discounts and volume rebates. Over 95% of the Company’s performance obligations are recognized at a point in time that relate to the manufacture and sale of a broad range of products and components. Revenue is recognized when control transfers to the customer upon shipment or completion of installation, testing, certification, or other substantive acceptance provisions required under the contract. Less than 5% of the Company’s revenue is recognized over time and relates to the sale of engineered to order equipment or services that have no alternative use and in which the contract specifies the Company has a right to payment for its costs, plus a reasonable margin. Revenue from contracts with customers is disaggregated by end markets, segments and geographic location, as it best depicts the nature and amount of the Company’s revenue. The following table presents revenue disaggregated by end market and segment: Three Months Ended March 31, 2019 2018 Printing & Identification $ 282,086 $ 282,522 Industrials 405,105 389,104 Total Engineered Systems segment 687,191 671,626 Fueling & Transport 373,050 319,304 Pumps 177,439 162,309 Process Solutions 152,735 146,485 Total Fluids segment 703,224 628,098 Refrigeration 277,598 278,655 Food Equipment 57,045 59,580 Total Refrigeration & Food Equipment segment 334,643 338,235 Intra-segment eliminations (301) (288) Total Consolidated Revenue $ 1,724,757 $ 1,637,671 The following table presents revenue disaggregated by geography based on the location of the Company's customer: Three Months Ended March 31, 2019 2018 United States $ 919,892 $ 853,002 Europe 402,645 387,178 Asia 196,350 194,603 Other Americas 138,118 133,144 Other 67,752 69,744 Total $ 1,724,757 $ 1,637,671 At March 31, 2019, we estimated that $83.0 million in revenue is expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. We expect to recognize approximately 65% of our unsatisfied (or partially unsatisfied) performance obligations as revenue through 2020, with the remaining balance to be recognized in 2021 and thereafter. The following table provides information about contract assets and contract liabilities from contracts with customers: March 31, 2019 December 31, 2018 At Adoption Contract assets $ 11,443 $ 9,330 $ 11,932 Contract liabilities - current 39,733 36,461 48,268 Contract liabilities - non-current 9,731 9,382 9,916 The revenue recognized during the three months ended March 31, 2019 and 2018 that was included in the contract liabilities at the beginning of the period amounted to $15,414 and $13,781, respectively. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions 2019 Acquisitions On January 25, 2019, the Company acquired the assets of Belanger , Inc. ("Belanger") , a leading full-line car wash equipment manufacturer for $175,083, net of cash acquired. The Belanger acquisition strengthens Dover's position in the vehicle wash business within the Fueling & Transport end market of the Fluids segment. The following presents the preliminary allocation of acquisition cost to the assets acquired and liabilities assumed, based on their estimated fair values: Belanger Current assets, net of cash acquired $ 9,392 Property, plant and equipment 597 Goodwill 97,817 Intangible assets 77,000 Other assets and deferred charges 20 Current liabilities (9,743) Net assets acquired $ 175,083 The amounts assigned to goodwill and major intangible asset classifications are as follows: Amount allocated Useful life (in years) Goodwill - Tax deductible 97,817 na Customer intangibles 54,500 9 Patents 16,000 9 Trademarks 6,500 15 $ 174,817 The goodwill recorded as a result of this acquisition reflects the benefits expected to be derived from product line expansions and operational synergies. 2018 Acquisitions During the three months ended March 31, 2018, the Company acquired two businesses in separate transactions for total consideration of $68,385, net of cash acquired. These businesses were acquired to complement and expand upon existing operations within the Fluids and Refrigeration & Food Equipment segments. The goodwill recorded as a result of these acquisitions reflects the benefits expected to be derived from product line expansions and operational synergies. The goodwill is non-deductible for U.S. federal income tax purposes for these acquisitions. On January 2, 2018, the Company acquired 100% of the voting stock of Ettlinger Group ("Ettlinger"), within the Fluids segment for $53,046, net of cash acquired. In connection with this acquisition, the Company recorded goodwill of $36,505 and intangible assets of $20,084, primarily related to customer intangibles. The intangible assets are being amortized over 8 to 15 years. On January 12, 2018, the Company acquired 100% of the voting stock of Rosario Handel B.V. ("Rosario"), within the Refrigeration & Food Equipment segment for total consideration of $15,339, net of cash acquired. In connection with this acquisition, the Company recorded goodwill of $10,402 and a customer intangible asset of $4,149. The customer intangible asset is being amortized over 10 years. Pro Forma Information The following unaudited pro forma information illustrates the impact of 2019 and 2018 acquisitions on the Company’s revenue and earnings from operations for the three months ended March 31, 2019 and 2018, respectively. The unaudited pro forma information assumes that the 2019 and 2018 acquisitions had taken place at the beginning of the prior year, 2018 and 2017, respectively. Unaudited pro forma earnings are adjusted to reflect the comparable impact of additional depreciation and amortization expense, net of tax, resulting from the fair value measurement of intangible and tangible assets relating to the year of acquisition. The unaudited pro forma effects for the three months ended March 31, 2019 and 2018 were as follows: Three Months Ended March 31, 2019 2018 Revenue: As reported $ 1,724,757 $ 1,637,671 Pro forma 1,728,525 1,651,530 Earnings from continuing operations: As reported $ 105,705 $ 109,410 Pro forma 107,204 111,953 Basic earnings per share from continuing operations: As reported $ 0.73 $ 0.71 Pro forma 0.74 0.72 Diluted earnings per share from continuing operations: As reported $ 0.72 $ 0.70 Pro forma 0.73 0.71 |
Held for Sale, Disposed, and Di
Held for Sale, Disposed, and Discontinued Operations | 3 Months Ended |
Mar. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Discontinued Operations | 5. Held for Sale, Disposed and Discontinued Operations Management evaluates Dover's businesses periodically for their strategic fit within its operations and may from time to time sell or discontinue certain operations for various reasons. Assets and Liabilities Held for Sale On March 29, 2019, the Co mpany entered into a definitive agreement to sell Finder Pompe S.r.l ("Finder"), a wholly owned subsidiary, to Gruppo Aturia S.p.A (“Aturia”) for a total consideration of approximatel y $23,629 net of estimated selling costs. As of March 31, 2019, Finder met the criteria to be classified as held for sale. The Company classified Finder's assets and liabilities separately on the consolidated balance sheet as of March 31, 2019. The following table presents the assets and liabilities associated with the Finder business classified as held for sale as of March 31, 2019. March 31, 2019 Assets Held for Sale Accounts receivable, net $ 12,698 Inventories 3,693 Prepaid and other current assets 1,050 Total current assets 17,441 Property, plant and equipment, net 13,596 Goodwill and intangible assets, net 34,524 Other assets and deferred charges 256 Impairment on assets held for sale (21,607) Total assets $ 44,210 Liabilities Held for Sale Accounts payable $ 7,859 Other current liabilities 5,088 Total current liabilities 12,947 Deferred income taxes 7,011 Other liabilities 623 Total liabilities $ 20,581 Based on the total consideration from the sale, net of selling costs, the Company recorded a loss on the assets held for sale of $46,946 , in the Condensed Consolidated Statements of Earnings during the three months ended March 31, 2019. The loss was comprise d of an impairment on assets held for sale of $21,607 an d $25,339 of foreign currency translation losses reclassified out of accumulated other comprehensive losses. The Finder business is included in the results of the Fluids segment. The sale does not represent a strategic shift that will have a major effect on operations and financial results and, therefo re, did not qualify for presentation as a discontinued operation. The sale closed on April 2, 2019. See Note 22 — Subsequent Events for further details on the subsequent completed sale of Finder. The Company had no assets or liabilities classified as held for sale as of December 31, 2018. Disposed Operations There were no dispositions during the three months ended March 31, 2019 and 2018. Discontinued Operations There were no discontinued operations as of and for the three months ending March 31, 2019. In 2018, the Apergy businesses, as discussed in Note 2, met the criteria to be reported as discontinued operations because the spin-off was a strategic shift in business that has a major effect on the Company's operations and financial results. Therefore, the results of discontinued operations for the three months ended March 31, 2018 include the historical results of Apergy prior to its distribution on May 9, 2018. The three months ended March 31, 2018 included costs incurred by Dover to complete the spin-off of Apergy amounting to $11,746, reflected in selling, general and administrative expenses in discontinued operations. See Note 2 — Spin-off of Apergy Corporation for further information. Summarized results of the Company's discontinued operations are as follows: Three Months Ended March 31, 2018 Revenue $ 284,041 Cost of goods and services 177,928 Gross profit 106,113 Selling, general and administrative expenses 79,123 Operating earnings 26,990 Other expense, net 484 Earnings from discontinued operations before taxes 26,506 Provision for income taxes 4,481 Earnings from discontinued operations, net of tax $ 22,025 On May 9, 2018, all assets and liabilities of Apergy were spun-off. Therefore, as of March 31, 2019 and December 31, 2018 there were no assets and liabilities classified as discontinued operations. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory, Net [Abstract] | |
Inventory Disclosure | 6. Inventories March 31, 2019 December 31, 2018 Raw materials $ 474,204 $ 439,616 Work in progress 177,544 154,878 Finished goods 288,986 265,722 Subtotal 940,734 860,216 Less reserves (112,436) (111,420) Total $ 828,298 $ 748,796 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | 7. Property, Plant and Equipment, net March 31, 2019 December 31, 2018 Land $ 49,834 $ 53,623 Buildings and improvements 518,238 529,982 Machinery, equipment and other 1,589,863 1,555,345 Property, plant and equipment, gross 2,157,935 2,138,950 Accumulated depreciation (1,360,253) (1,332,453) Property, plant and equipment, net $ 797,682 $ 806,497 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | 8. Leases The Company adopted ASC Topic 842 - Leases as of January 1, 2019, using the transition method per ASU No. 2018-11 issued on July 2018 wherein entities were allowed to initially apply the new leases standard at adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Accordingly, all periods prior to January 1, 2019 were presented in accordance with the previous ASC Topic 840, Leases, and no retrospective adjustments were made to the comparative periods presented. Adoption of ASC 842 resulted in an increase to total assets and liabilities due to the recording of operating lease right-of-use assets ("ROU") and operating lease liabilities of approximately $163 million, as of January 1, 2019. Finance leases were not impacted by the adoption of ASC 842, as finance lease liabilities and the corresponding ROU assets were already recorded in the balance sheet under the previous guidance, ASC 840. The adoption did not materially impact the Company’s Consolidated Statements of Earnings or Cash Flows. The Company has operating and finance leases for corporate offices, manufacturing plants, research and development facilities, shared services facilities, vehicle fleets and certain office and manufacturing equipment. Leases with an initial term of 12 months or less are not recorded in the balance sheet. The Company has elected the practical expedient to account for each separate lease component of a contract and its associated non-lease components as a single lease component, thus causing all fixed payments to be capitalized. The Company also elected the package of practical expedients permitted within the new standard, which among other things, allows the Company to carry forward historical lease classification. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the ROU assets or liabilities. These are expensed as incurred and recorded as variable lease expense. The Company determines if an arrangement is a lease at inception of a contract. Operating lease ROU assets are included in other assets and deferred charges and operating lease liabilities are included in other accrued expenses and other liabilities in the Consolidated Balance Sheet. Finance lease ROU assets are included in property and equipment, and the related lease liabilities are included in other accrued expenses and other liabilities in the Consolidated Balance Sheet. ROU assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at commencement date based on the net present value of fixed lease payments over the lease term. The Company's lease term include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. ROU assets also include any advance lease payments made and exclude lease incentives. As most of the Company's operating leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Finance lease agreements generally include an interest rate that is used to determine the present value of future lease payments. Operating fixed lease expense and finance lease depreciation expense are recognized on a straight-line basis over the lease term. The components of lease costs were as follows: Three Months Ended March 31, 2019 Operating Lease Costs: Fixed $ 12,244 Variable 2,047 Short-term 4,865 Total* $ 19,156 * Finance lease cost and sublease income were immaterial. Supplemental cash flow information were as follows: Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12,414 Operating cash flows from finance leases 108 Financing cash flows from finance leases 409 Total $ 12,931 Right-of-use assets obtained in exchange for new lease obligations: Operating leases 10,708 Finance leases 37 Total $ 10,745 Supplemental balance sheet information related to leases were as follows: March 31, 2019 Operating Leases: Right of use assets: Other assets and deferred charges $ 154,562 Lease liabilities: Other accrued expenses $ 43,247 Other liabilities 118,783 Total operating lease liabilities $ 162,030 Finance Leases: Right of use assets: Property, plant and equipment, net (1) $ 11,856 Lease liabilities: Other accrued expenses $ 1,526 Other liabilities 8,350 Total financing lease liabilities $ 9,876 (1) Finance lease assets are recorded net of accumulated depreciation of $909. The aggregate future lease payments for operating and finance leases as of March 31, 2019 were as follows: Operating Finance 2019 (excluding the three months ending March 31, 2019) $ 37,090 $ 1,425 2020 39,237 1,881 2021 29,666 1,793 2022 21,329 1,608 2023 13,544 1,204 Thereafter 42,182 4,040 Total lease payments 183,048 11,951 Less: Interest (21,018) (2,075) Present value of lease liabilities $ 162,030 $ 9,876 The aggregate future lease payments for operating and capital leases as of December 31, 2018 are as follows: Operating Capital 2019 $ 49,009 $ 1,802 2020 38,620 1,748 2021 29,396 1,687 2022 21,767 1,392 2023 13,994 952 Thereafter 42,087 3,802 Total $ 194,873 $ 11,383 Average lease terms and discount rates were as follows: March 31, 2019 Weighted-average remaining lease term (years) Operating leases 5.8 Finance leases 6.4 Weighted-average discount rate Operating leases 3.3% Finance leases 4.4% |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 9. Goodwill and Other Intangible Assets The changes in the carrying value of goodwill by reportable operating segments were as follows: Engineered Systems Fluids Refrigeration & Food Equipment Total Balance at December 31, 2018 $ 1,623,660 $ 1,507,602 $ 546,066 $ 3,677,328 Acquisitions — 97,817 — 97,817 Held for sale — (4,739) — (4,739) Foreign currency translation (1,460) 8,386 (55) 6,871 Balance at March 31, 2019 $ 1,622,200 $ 1,609,066 $ 546,011 $ 3,777,277 During the three months ended March 31, 2019, the Company recorded additions of $97,817 to goodwill as a result of the acquisition discussed in Note 4 — Acquisitions. As noted in Note 5 — Held for Sale, Disposed and Discontinued Operations, the Company classified Finder's assets and liabilities as held for sale as of March 31, 2019. As a result, the Fluids segment goodwill balance was reduced by $4,739. The Company’s definite-lived and indefinite-lived intangible assets by major asset class were as follows: March 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets: Customer intangibles $ 1,404,109 $ 648,177 $ 755,932 $ 1,395,742 $ 645,305 $ 750,437 Trademarks 217,996 74,597 143,399 214,774 72,305 142,469 Patents 160,240 129,692 30,548 144,302 128,254 16,048 Unpatented technologies 155,481 89,379 66,102 155,380 85,560 69,820 Distributor relationships 83,804 39,750 44,054 82,970 37,943 45,027 Drawings & manuals 27,707 20,784 6,923 31,849 23,273 8,576 Other 21,434 15,927 5,507 21,046 15,835 5,211 Total 2,070,771 1,018,306 1,052,465 2,046,063 1,008,475 1,037,588 Unamortized intangible assets: Trademarks 96,671 — 96,671 96,668 — 96,668 Total intangible assets, net $ 2,167,442 $ 1,018,306 $ 1,149,136 $ 2,142,731 $ 1,008,475 $ 1,134,256 |
Restructuring Activities
Restructuring Activities | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | 10. Restructuring Activities The Company's restructuring charges by segment were as follows: Three Months Ended March 31, 2019 2018 Engineered Systems $ 370 $ 1,375 Fluids 1,119 2,051 Refrigeration & Food Equipment 1,412 45 Corporate 35 749 Total $ 2,936 $ 4,220 These amounts are classified in the Condensed Consolidated Statements of Earnings as follows: Cost of goods and services $ 1,179 $ 2,339 Selling, general and administrative expenses 1,757 1,881 Total $ 2,936 $ 4,220 The restructuring expenses of $2,936 incurred during the three months ended March 31, 2019 were related to two significant rightsizing restructuring programs initiated in 2018 comprised primarily of broad-based selling, general and administrative expense reduction and footprint consolidation initiatives designed to increase operating margin, enhance operations and position the Company for sustained growth and investment. In 2019, the Company expects to incur charges of approximately $5 million related to the selling, general and administrative expense reduction initiative, $2 million of which was incurred during the three months ended March 31, 2019 and $3 million of which the Company expects to incur during the remainder of 2019. In 2019 and 2020, the Company expects to incur total restructuring charges of approximately $10 million related to footprint consolidation initiatives, $1 million of which was incurred during the three months ended March 31, 2019 and $9 million of which the Company expects to incur in the second quarter of 2019 through 2020. Additional programs, beyond the scope of the announced programs, may be implemented during 2019 with related restructuring charges. The $2,936 of restructuring charges incurred during the first quarter of 2019 primarily included the following items: • The Engineered Systems segment recorded $370 of restructuring charges related to programs focused on headcount reduction. • The Fluids segment recorded $1,119 of restructuring charges principally related to headcount reductions and facility restructuring costs. • The Refrigeration and Food Equipment segment recorded $1,412 of restructuring expense primarily due to headcount reductions and facility restructuring costs. • Corporate recorded $35 of restructuring charges primarily related to headcount reductions. The Company’s severance and exit accrual activities were as follows: Severance Exit Total Balance at December 31, 2018 $ 24,284 $ 3,880 $ 28,164 Restructuring charges 1,941 995 2,936 Payments (10,776) (424) (11,200) Other, including foreign currency translation (754) (915) (1,669) Balance at March 31, 2019 $ 14,695 $ 3,536 $ 18,231 |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | 11. Borrowings Borrowings consisted of the following: March 31, 2019 December 31, 2018 Short-term Current portion of long-term debt and short-term borrowings $ 1,355 $ — Commercial paper 344,900 220,318 Notes payable and current maturities of long-term debt $ 346,255 $ 220,318 Carrying amount (1) Principal March 31, 2019 December 31, 2018 Long-term 2.125% 7-year notes due December 1, 2020 (euro-denominated) € 300,000 338,583 339,657 4.30% 10-year notes due March 1, 2021 $ 450,000 449,293 449,200 3.150% 10-year notes due November 15, 2025 $ 400,000 395,537 395,368 1.25% 10-year notes due November 9, 2026 (euro-denominated) € 600,000 670,021 672,103 6.65% 30-year debentures due June 1, 2028 $ 200,000 199,080 199,054 5.375% 30-year debentures due October 15, 2035 $ 300,000 295,873 295,811 6.60% 30-year notes due March 15, 2038 $ 250,000 247,855 247,827 5.375% 30-year notes due March 1, 2041 $ 350,000 343,946 343,877 Other 779 763 Total long-term debt 2,940,967 2,943,660 Less long-term debt current portion — — Net long-term debt $ 2,940,967 $ 2,943,660 (1) Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discounts were $15.4 million and $15.8 million as of March 31, 2019 and December 31, 2018, respectively. Total deferred debt issuance costs were $12.6 million and $13.0 million as of March 31, 2019 and December 31, 2018, respectively. The Company maintains a $1.0 billion five-year unsecured revolving credit facility (the "Credit Agreement") with a syndicate of banks which expires on November 10, 2020. The Company was in compliance with all covenants in the Credit Agreement and other long-term debt covenants at March 31, 2019 and had a coverage ratio of 9.7 to 1.0. The Company uses the Credit Agreement as liquidity back-up for its commercial paper program and has not drawn down any loans under the Credit Agreement and does not anticipate doing so. The Company generally uses commercial paper borrowings for general corporate purposes, funding of acquisitions and repurchases of its common stock. As of March 31, 2019, the Company had approximately $142.4 million outstanding in letters of credit and performance and other guarantees which expire on various dates through 2028. These letters of credit are primarily maintained as security for insurance, warranty and other performance obligations. In general, we would only be liable for the amount of these guarantees in the event of default in the performance of our obligations. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | 12. Financial Instruments Derivatives The Company is exposed to market risk for changes in foreign currency exchange rates due to the global nature of its operations and certain commodity risks. In order to manage these risks, the Company has hedged portions of its forecasted sales and purchases to occur within the next twelve months that are denominated in non-functional currencies, with currency forward contracts designated as cash flow hedges. At March 31, 2019 and December 31, 2018, the Company had contracts with U.S. dollar equivalent notional amounts of $210,787 and $153,873, respectively, to exchange foreign currencies, principally the Pound Sterling, Chinese Yuan, Swedish Krona, Swiss Franc, and Canadian Dollar. The Company believes it is probable that all forecasted cash flow transactions will occur. In addition, the Company had outstanding contracts with a total notional amount of $91,749 and $66,906 as of March 31, 2019 and December 31, 2018, respectively, that are not designated as hedging instruments. These instruments are used to reduce the Company's exposure for operating receivables and payables that are denominated in non-functional currencies. Gains and losses on these contracts are recorded in other (income) expense, net in the Condensed Consolidated Statements of Earnings. The following table sets forth the fair values of derivative instruments held by the Company as of March 31, 2019 and December 31, 2018 and the balance sheet lines in which they are recorded: Fair Value Asset (Liability) March 31, 2019 December 31, 2018 Balance Sheet Caption Foreign currency forward $ 3,996 $ 1,874 Prepaid / Other current assets Foreign currency forward (637) (1,165) Other accrued expenses For a cash flow hedge, the effective portion of the change in estimated fair value of a hedging instrument is recorded in accumulated other comprehensive loss (earnings) as a separate component of the Condensed Consolidated Statement of Stockholders' Equity and is reclassified into revenues and cost of goods and services in the Condensed Consolidated Statements of Earnings during the period in which the hedged transaction is recognized. The amount of gains or losses from hedging activity recorded in earnings is not significant, and the amount of unrealized gains and losses from cash flow hedges that are expected to be reclassified to earnings in the next twelve months is not significant; therefore, additional tabular disclosures are not presented. There are no amounts excluded from the assessment of hedge effectiveness and the Company's derivative instruments that are subject to credit risk contingent features were not significant. The Company is exposed to credit loss in the event of nonperformance by counterparties to the financial instrument contracts held by the Company; however, nonperformance by these counterparties is considered unlikely as the Company’s policy is to contract with highly-rated, diversified counterparties. The Company has designated the €600,000 and €300,000 of euro-denominated notes issued November 9, 2016 and December 4, 2013, respectively, as hedges of a portion of its net investment in euro-denominated operations. Changes in the value of the euro-denominated debt are recognized in foreign currency translation adjustments within other comprehensive earnings of the Condensed Consolidated Statements of Comprehensive Earnings to offset changes in the value of the net investment in euro-denominated operations. Amounts recognized in other comprehensive earnings for the gains (losses) on net investment hedges were as follows: Three Months Ended March 31, 2019 2018 Gain (loss) on euro-denominated debt $ 3,557 $ (44,109) Tax (expense) benefit (747) 9,263 Net gain (loss) on net investment hedges, net of tax $ 2,810 $ (34,846) Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of assets or liabilities. Level 3 inputs are unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018: Level 2 Level 2 Assets: Foreign currency cash flow hedges $ 3,996 $ 1,874 Liabilities: Foreign currency cash flow hedges 637 1,165 In addition to fair value disclosure requirements related to financial instruments carried at fair value, accounting standards require interim disclosures regarding the fair value of all of the Company’s financial instruments. The estimated fair value of long-term debt, net at March 31, 2019 and December 31, 2018 , w as $3,190,794 and $3,132,330, respectively, compared to the carrying value of $2,940,967 and $2,943,660, respectively. The estimated fair value of long-term debt is based on quoted market prices for similar instruments and is, therefore, classified as Level 2 within the fair value hierarchy. The carrying values of cash and cash equivalents, trade receivables, accounts payable and notes payable are reasonable estimates of their fair values as of March 31, 2019, and December 31, 2018 due to the short-term nature of these instruments. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes The effective tax rates for the three months ended March 31, 2019 and 2018 were 23.6% and 18.5%, respectively. The increase in the effective tax rate for the three months ended March 31, 2019 relative to the prior comparable period was predominantly driven by the exclusion of capital losses on assets held for sale of Finder under local tax law. Additionally, the effective tax rates for the three months ended March 31, 2019 and 2018 included discrete tax benefits principally from stock award exercises. Dover and its subsidiaries file tax returns in the U.S., including various state and local returns and in other foreign jurisdictions. We believe adequate provision has been made for all income tax uncertainties. The Company is routinely audited by taxing authorities in its filing jurisdictions, and a number of these audits are currently underway. The Company believes that within the |
Equity Incentive Program
Equity Incentive Program | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Compensation [Abstract] | |
Share-based Compensation | 14. Equity Incentive Program The Company typically grants equity awards annually at its regularly scheduled first quarter meeting of the Compensation Committee of the Board of Directors. During the three months ended March 31, 2019, the Company issued stock-settled appreciation rights ("SARs") covering 610,979 shares, performance share awards of 34,402 and restricted stock units ("RSUs") of 121,560. The Company uses the Black-Scholes option pricing model to determine the fair value of each SAR on the date of grant. Expected volatilities are based on Dover's stock price history, including implied volatilities from traded options on Dover stock. The Company uses historical data to estimate SAR exercise and employee termination patterns within the valuation model. The expected life of SARs granted is derived from the output of the option valuation model and represents the average period of time that SARs granted are expected to be outstanding. The interest rate for periods within the contractual life of the SARs is based on the U.S. Treasury yield curve in effect at the time of grant. The range of assumptions used in determining the fair value of the SARs awarded during the respective periods were as follows: SARs 2019 2018 Risk-free interest rate 2.51 % 2.58 % - 2.87 % Dividend yield 2.13 % 1.99 % - 2.43 % Expected life (years) 5.6 5.6 - 5.7 Volatility 22.35 % 20.95 % - 21.20 % Grant price $91.20 $79.75 - $82.09 Fair value per share at date of grant $17.55 $14.58 - $15.41 The performance share awards granted in 2019 and 2018 are considered performance condition awards as attainment is based on Dover's performance relative to established internal metrics. The fair value of these awards was determined using Dover's closing stock price on the date of grant. The expected attainment of the internal metrics for these awards is analyzed each reporting period, and the related expense is adjusted based on expected attainment, if that attainment differs from previous estimates. The cumulative effect on current and prior periods of a change in attainment is recognized in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings in the period of change. The fair value and average attainment used in determining stock-based compensation cost for the performance shares issued in 2019 and 2018 is as follows for the three months ended March 31, 2019: 2019 2018 Fair value per share at date of grant $91.20 $79.75 - $82.09 Average attainment rate reflected in expense 211.68% 267.91% The Company also has granted RSUs, and the fair value of these awards was determined using Dover's closing stock price on the date of grant. Stock-based compensation is reported within selling, general and administrative expenses of continuing operations in the Condensed Consolidated Statements of Earnings. The following table summarizes the Company’s compensation expense relating to all stock-based incentive plans: Three Months Ended March 31, 2019 2018 Pre-tax stock-based compensation expense (continuing) $ 8,182 $ 6,745 Tax benefit (1,048) (1,496) Total stock-based compensation expense, net of tax $ 7,134 $ 5,249 Stock-based compensation expense attributable to Apergy employees for the three months ended March 31, 2018 was $569. These costs are reported within earnings from discontinued operations in the Condensed Consolidated Statement of Earnings. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 15. Commitments and Contingent Liabilities Litigation Certain of the Company’s subsidiaries are involved in legal proceedings relating to the cleanup of waste disposal sites identified under federal and state statutes that provide for the allocation of such costs among "potentially responsible parties." In each instance, the extent of the Company’s liability appears to be very small in relation to the total projected expenditures and the number of other "potentially responsible parties" involved and is anticipated to be immaterial to the Company. In addition, certain of the Company’s subsidiaries are involved in ongoing remedial activities at certain current and former plant sites, in cooperation with regulatory agencies, and appropriate reserves have been established. At March 31, 2019 and December 31, 2018, the Company has reserves totaling $31,555 and $31,797, respectively, for environmental and other matters, including private party claims for exposure to hazardous substances that are probable and estimable. The Company and certain of its subsidiaries are also parties to a number of other legal proceedings incidental to their businesses. These proceedings primarily involve claims by private parties alleging injury arising out of use of the Company’s products, patent infringement, employment matters, and commercial disputes. Management and legal counsel, at least quarterly, review the probable outcome of such proceedings, the costs and expenses reasonably expected to be incurred and currently accrued to-date, and the availability and extent of insurance coverage. The Company has reserves for legal matters that are probable and estimable and not otherwise covered by insurance, and at March 31, 2019 and December 31, 2018, these reserves were not significant. While it is not possible at this time to predict the outcome of these legal actions, in the opinion of management, based on the aforementioned reviews, the Company is not currently involved in any legal proceedings which, individually or in the aggregate, could have a material effect on its financial position, results of operations, or cash flows. Warranty Accruals Estimated warranty program claims are provided for at the time of sale of the Company's products. Amounts provided for are based on historical costs and adjusted for new claims and are included within other accrued expenses and other liabilities in the Condensed Consolidated Balance Sheet. The changes in the carrying amount of product warranties through March 31, 2019 and 2018, were as follows: 2019 2018 Beginning Balance, December 31 of the Prior Year $ 50,073 $ 59,403 Provision for warranties 13,955 12,447 Settlements made (14,993) (14,833) Other adjustments, including acquisitions and currency translation (792) 848 Ending Balance, March 31 $ 48,243 $ 57,865 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans | 16. Employee Benefit Plans Retirement Plans The Company offers defined contribution retirement plans which cover the majority of its U.S. employees, as well as employees in certain other countries. In addition, the Company sponsors qualified defined benefit pension plans covering certain employees of the Company and its subsidiaries. The plans’ benefits are generally based on years of service and employee compensation. The Company also provides to certain management employees, through non-qualified plans, supplemental retirement benefits in excess of qualified plan limits imposed by federal tax law. The tables below set forth the components of the Company’s net periodic (income) expense relating to retirement benefit plans. The service cost component is recognized within selling, general and administrative expenses and cost of goods and services, depending on the functional area of the underlying employees included in the plans, and the non-operating components of pension costs are included within other income, net in the Condensed Consolidated Statements of Earnings. The amounts recorded to discontinued operations represent the net periodic benefit expense for several non-U.S. qualified and U.S. non-qualified plans that were transferred to Apergy at the spin-off date of May 9, 2018. Qualified Defined Benefits Three Months Ended March 31, U.S. Plan Non-U.S. Plans 2019 2018 2019 2018 Service cost $ 1,754 $ 2,984 $ 1,545 $ 1,577 Interest cost 4,756 5,102 1,241 1,378 Expected return on plan assets (8,534) (10,211) (1,517) (2,091) Amortization: Prior service cost (credit) 76 87 (58) (115) Recognized actuarial loss — 1,931 816 803 Transition obligation — — — 1 Net periodic (income) expense (1,948) (107) 2,027 1,553 Less: Discontinued operations — 677 — 174 Net periodic (income) expense - Continuing operations $ (1,948) $ (784) $ 2,027 $ 1,379 Non-Qualified Supplemental Benefits Three Months Ended March 31, 2019 2018 Service cost $ 486 $ 695 Interest cost 668 893 Amortization: Prior service cost 703 963 Recognized actuarial gain (570) (255) Net periodic expense $ 1,287 $ 2,296 Less: Discontinued operations — 254 Net periodic expense - Continuing operations $ 1,287 $ 2,042 Post-Retirement Benefit Plans The Company also maintains post-retirement benefit plans, although these plans are closed to new entrants. The supplemental and post-retirement benefit plans are supported by the general assets of the Company. The following table sets forth the components of the Company’s net periodic expense relating to its post-retirement benefit plans: Three Months Ended March 31, 2019 2018 Service cost $ 5 $ 8 Interest cost 78 73 Amortization: Prior service cost 3 3 Recognized actuarial gain (18) (8) Net periodic expense $ 68 $ 76 The total amount amortized out of accumulated other comprehensive earnings into net periodic pension and post-retirement expense totaled $952 and $3,410 for the three months ended March 31, 2019 and 2018, respectively. Defined Contribution Retirement Plans The Company also offers defined contribution retirement plans which cover the majority of its U.S. employees, as well as employees in certain other countries. The Company’s expense relating to defined contribution plans were $12,906 and $12,870 for the three months ended March 31, 2019 and 2018, respectively. |
Other Comprehensive Earnings
Other Comprehensive Earnings | 3 Months Ended |
Mar. 31, 2019 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive Earnings | 17. Other Comprehensive Earnings The amounts recognized in other comprehensive earnings were as follows: Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation adjustments $ 49,786 $ (747) $ 49,039 $ 43,045 $ 9,263 $ 52,308 Pension and other post-retirement benefit plans 952 (205) 747 3,410 (728) 2,682 Changes in fair value of cash flow hedges 2,993 (629) 2,364 1,404 (295) 1,109 Total other comprehensive earnings $ 53,731 $ (1,581) $ 52,150 $ 47,859 $ 8,240 $ 56,099 Total comprehensive earnings were as follows: Three Months Ended March 31, 2019 2018 Net earnings $ 105,705 $ 131,435 Other comprehensive earnings 52,150 56,099 Comprehensive earnings $ 157,855 $ 187,534 Amounts reclassified from accumulated other comprehensive loss to earnings during the three months ended March 31, 2019 and 2018 were as follows: Three Months Ended March 31, 2019 2018 Foreign currency translation: Reclassification of foreign currency translation losses to earnings for assets held for sale $ 25,339 $ — Tax benefit — — Net of tax $ 25,339 $ — Pension and other postretirement benefit plans: Amortization of actuarial losses $ 228 $ 2,471 Amortization of prior service costs 724 939 Total before tax 952 3,410 Tax benefit (205) (728) Net of tax $ 747 $ 2,682 Cash flow hedges: Net gains reclassified into earnings $ (291) $ (320) Tax provision 61 67 Net of tax $ (230) $ (253) The reclassification of foreign currency translation losses to earnings relates to the Finder assets and liabilities held for sale. See Note 5 — Held for Sale, Disposed and Discontinued Operations for further details. The Company recognizes the amortization of net actuarial gains and losses and prior service costs in other income, net within the Condensed Consolidated Statements of Earnings. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 18. Segment Information The Company categorizes its operating companies into three distinct reportable segments. Segment financial information and a reconciliation of segment results to consolidated results is as follows: • Engineered Systems segment is comprised of two platforms, Printing & Identification and Industrials, and is focused on the design, manufacture and service of critical equipment and components serving the fast-moving consumer goods, digital textile printing, vehicle service, environmental solutions and industrial end markets. • Fluids segment, serving the Fueling & Transport, Pumps and Process Solutions end markets, is focused on the safe handling of critical fluids, and providing critical components to the retail fueling, chemical, hygienic, oil and gas, power generation and industrial markets. • Refrigeration & Food Equipment segment is a provider of innovative and energy efficient equipment and systems serving the commercial refrigeration and food equipment end markets. Segment financial information and a reconciliation of segment results to consolidated results is as follows: Three Months Ended March 31, 2019 2018 Revenue: Engineered Systems $ 687,191 $ 671,626 Fluids 703,224 628,098 Refrigeration & Food Equipment 334,643 338,235 Intra-segment eliminations (301) (288) Total consolidated revenue $ 1,724,757 $ 1,637,671 Earnings from continuing operations: Segment earnings: (1) Engineered Systems $ 123,074 $ 102,066 Fluids (2) 52,221 67,348 Refrigeration & Food Equipment 24,807 29,182 Total segment earnings 200,102 198,596 Corporate expense / other (3) 30,866 30,763 Interest expense 31,808 35,640 Interest income (890) (2,058) Earnings before provision for income taxes and discontinued operations 138,318 134,251 Provision for income taxes 32,613 24,841 Earnings from continuing operations $ 105,705 $ 109,410 ( 1 ) Segment earnings includes non-operating income and expense directly attributable to the segments. (2) The three months ended March 31, 2019 includes a $46,946 loss on assets held for sale for Finder. Excluding this loss, Fluids segment earnings was $99,167. ( 3 ) Certain expenses are maintained at the corporate level and not allocated to the segments. These expenses include executive and functional compensation costs, non-service pension costs, non-operating insurance expenses, shared business services costs and various administrative expenses relating to the corporate headquarters. |
Share Repurchases
Share Repurchases | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Share repurchases | 19. Share Repurchases Under the January 2015 authorization which expired on January 9, 2018, the Company repurchased 440,608 shares of common stock during the three months ended March 31, 2018 at a total cost of $44,977, or $102.08 per share. There were 5,271,168 shares available for repurchase under this authorization upon expiration. In February 2018, the Company's Board of Directors approved a new standing share repurchase authorization, whereby the Company may repurchase up to 20 million shares of its common stock through December 31, 2020. This share repurchase authorization replaced the January 2015 share repurchase authorization. There were no repurchases under the February 2018 authorization during the three months ended March 31, 2019 and 2018. As of March 31, 2019, 9,703,666 shares remain authorized for repurchase under the February 2018 share repurchase authorization. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 20. Earnings per Share The following table sets forth a reconciliation of the information used in computing basic and diluted earnings per share: Three Months Ended March 31, 2019 2018 Earnings from continuing operations $ 105,705 $ 109,410 Earnings from discontinued operations, net — 22,025 Net earnings $ 105,705 $ 131,435 Basic earnings per common share: Earnings from continuing operations $ 0.73 $ 0.71 Earnings from discontinued operations, net $ — $ 0.14 Net earnings $ 0.73 $ 0.85 Weighted average shares outstanding 145,087,000 154,520,000 Diluted earnings per common share: Earnings from continuing operations $ 0.72 $ 0.70 Earnings from discontinued operations, net $ — $ 0.14 Net earnings $ 0.72 $ 0.84 Weighted average shares outstanding 146,911,000 157,090,000 The following table is a reconciliation of the share amounts used in computing earnings per share: Three Months Ended March 31, 2019 2018 Weighted average shares outstanding - Basic 145,087,000 154,520,000 Dilutive effect of assumed exercise of SARs and vesting of performance shares and RSUs 1,824,000 2,570,000 Weighted average shares outstanding - Diluted 146,911,000 157,090,000 Diluted earnings per share amounts are computed using the weighted average number of common shares outstanding and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of SARs and vesting of performance shares and RSUs, as determined using the treasury stock method. |
Recent Accounting Standards
Recent Accounting Standards | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Standards | 21. Recent Accounting Pronouncements Recently Issued Accounting Standards The following standards, issued by the Financial Accounting Standards Board ("FASB"), will, or are expected to, result in a change in practice and/or have a financial impact to the Company’s Consolidated Financial Statements: In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. The guidance is effective for interim and annual periods for the Company on January 1, 2020, with early adoption permitted. Management has not yet completed its assessment of the impact of the new standard on the Company’s Consolidated Financial Statements. Currently, the Company believes that the most notable impact of this ASU may relate to its processes around the assessment of the adequacy of its allowance for doubtful accounts on trade accounts receivable and the recognition of credit losses. Recently Adopted Accounting Standards In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The Company early adopted this guidance prospectively beginning on January 1, 2019. The adoption of this ASU did not have a material impact on the Company's Consolidated Financial Statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This ASU provides new guidance about income statement classification and eliminates the requirement to separately measure and report hedge ineffectiveness. The entire change in fair value for qualifying hedge instruments included in the effectiveness will be recorded in Other Comprehensive Income ("OCI") and amounts deferred in OCI will be reclassified to earnings in the same income statement line item in which the earnings effect of the hedged item is reported. The Company adopted this guidance on January 1, 2019. The adoption of this ASU did not have a material impact on the Company's Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which amends existing guidance to require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose additional quantitative and qualitative information about leasing arrangements. This ASU also provides clarifications surrounding the presentation of the effects of leases in the income statement and statement of cash flows. The Company adopted this guidance on January 1, 2019. The Company commenced its assessment of ASU 2016-02 in the second half of 2017 and developed a project plan to guide the implementation. The Company completed this project plan, in which it analyzed the ASU's impact on its leases, surveyed the Company's businesses, assessed the portfolio of leases, compiled a central repository of active leases, and established a future lease process to keep the lease accounting portfolio up to date. The Company evaluated the key policy elections and considerations under the standard and completed the internal policy documentation and training to address the new standard requirements. The Company also implemented a new lease accounting software solution to support the new reporting requirements. The Company adopted this new guidance using the updated modified transition method allowed per ASU 2018-11. Upon adoption on January 1, 2019, total assets and liabilities increased due to the recording of right-of-use assets and lease liabilities amounting to approximately $163 million. See Note 8 — Leases for further details. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 22. Subsequent EventsOn April 2, 2019 Dover completed the sale of Finder to Aturia, which generated total cash proceeds of $24,218, of which $2,245 was received on March 29, 2019. Any final working capital adjustments, which are not expected to be significant, will be recorded in the second quarter of 2019. The assets and liabilities of Finder were classified as held for sale as of March 31, 2019. See Note 5 — Held for Sale, Disposed and Discontinued Operations for further details. |
Spin-off of Apergy Corporation
Spin-off of Apergy Corporation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Spin-off of Apergy Corporation [Abstract] | |
Spin-Off of Apergy Corporation [Table Text Block] | The following is a summary of the assets and liabilities transferred to Apergy as part of the separation on May 9, 2018: Assets: Cash and cash equivalents $ 10,357 Current assets 462,620 Non-current assets 1,438,760 $ 1,911,737 Liabilities: Current liabilities $ 185,354 Non-current liabilities 119,568 $ 304,922 Net assets distributed to Apergy Corporation $ 1,606,815 Less: Cash received from Apergy Corporation 700,000 Net distribution to Apergy Corporation $ 906,815 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table presents revenue disaggregated by end market and segment: Three Months Ended March 31, 2019 2018 Printing & Identification $ 282,086 $ 282,522 Industrials 405,105 389,104 Total Engineered Systems segment 687,191 671,626 Fueling & Transport 373,050 319,304 Pumps 177,439 162,309 Process Solutions 152,735 146,485 Total Fluids segment 703,224 628,098 Refrigeration 277,598 278,655 Food Equipment 57,045 59,580 Total Refrigeration & Food Equipment segment 334,643 338,235 Intra-segment eliminations (301) (288) Total Consolidated Revenue $ 1,724,757 $ 1,637,671 |
Revenue from External Customers by Geographic Areas [Table Text Block] | The following table presents revenue disaggregated by geography based on the location of the Company's customer: Three Months Ended March 31, 2019 2018 United States $ 919,892 $ 853,002 Europe 402,645 387,178 Asia 196,350 194,603 Other Americas 138,118 133,144 Other 67,752 69,744 Total $ 1,724,757 $ 1,637,671 |
Contract with Customer, Asset and Liability [Table Text Block] | The following table provides information about contract assets and contract liabilities from contracts with customers: March 31, 2019 December 31, 2018 At Adoption Contract assets $ 11,443 $ 9,330 $ 11,932 Contract liabilities - current 39,733 36,461 48,268 Contract liabilities - non-current 9,731 9,382 9,916 The revenue recognized during the three months ended March 31, 2019 and 2018 that was included in the contract liabilities at the beginning of the period amounted to $15,414 and $13,781, respectively. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following presents the preliminary allocation of acquisition cost to the assets acquired and liabilities assumed, based on their estimated fair values: Belanger Current assets, net of cash acquired $ 9,392 Property, plant and equipment 597 Goodwill 97,817 Intangible assets 77,000 Other assets and deferred charges 20 Current liabilities (9,743) Net assets acquired $ 175,083 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The amounts assigned to goodwill and major intangible asset classifications are as follows: Amount allocated Useful life (in years) Goodwill - Tax deductible 97,817 na Customer intangibles 54,500 9 Patents 16,000 9 Trademarks 6,500 15 $ 174,817 The goodwill recorded as a result of this acquisition reflects the benefits expected to be derived from product line expansions and operational synergies. |
Pro forma results of operations | The following unaudited pro forma information illustrates the impact of 2019 and 2018 acquisitions on the Company’s revenue and earnings from operations for the three months ended March 31, 2019 and 2018, respectively. The unaudited pro forma information assumes that the 2019 and 2018 acquisitions had taken place at the beginning of the prior year, 2018 and 2017, respectively. Unaudited pro forma earnings are adjusted to reflect the comparable impact of additional depreciation and amortization expense, net of tax, resulting from the fair value measurement of intangible and tangible assets relating to the year of acquisition. The unaudited pro forma effects for the three months ended March 31, 2019 and 2018 were as follows: Three Months Ended March 31, 2019 2018 Revenue: As reported $ 1,724,757 $ 1,637,671 Pro forma 1,728,525 1,651,530 Earnings from continuing operations: As reported $ 105,705 $ 109,410 Pro forma 107,204 111,953 Basic earnings per share from continuing operations: As reported $ 0.73 $ 0.71 Pro forma 0.74 0.72 Diluted earnings per share from continuing operations: As reported $ 0.72 $ 0.70 Pro forma 0.73 0.71 |
Held for Sale, Disposed, and _2
Held for Sale, Disposed, and Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table presents the assets and liabilities associated with the Finder business classified as held for sale as of March 31, 2019. March 31, 2019 Assets Held for Sale Accounts receivable, net $ 12,698 Inventories 3,693 Prepaid and other current assets 1,050 Total current assets 17,441 Property, plant and equipment, net 13,596 Goodwill and intangible assets, net 34,524 Other assets and deferred charges 256 Impairment on assets held for sale (21,607) Total assets $ 44,210 Liabilities Held for Sale Accounts payable $ 7,859 Other current liabilities 5,088 Total current liabilities 12,947 Deferred income taxes 7,011 Other liabilities 623 Total liabilities $ 20,581 |
Results of discontinued operations [Table Text Block] | Summarized results of the Company's discontinued operations are as follows: Three Months Ended March 31, 2018 Revenue $ 284,041 Cost of goods and services 177,928 Gross profit 106,113 Selling, general and administrative expenses 79,123 Operating earnings 26,990 Other expense, net 484 Earnings from discontinued operations before taxes 26,506 Provision for income taxes 4,481 Earnings from discontinued operations, net of tax $ 22,025 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory, Net [Abstract] | |
Components of Inventory | March 31, 2019 December 31, 2018 Raw materials $ 474,204 $ 439,616 Work in progress 177,544 154,878 Finished goods 288,986 265,722 Subtotal 940,734 860,216 Less reserves (112,436) (111,420) Total $ 828,298 $ 748,796 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment, net | March 31, 2019 December 31, 2018 Land $ 49,834 $ 53,623 Buildings and improvements 518,238 529,982 Machinery, equipment and other 1,589,863 1,555,345 Property, plant and equipment, gross 2,157,935 2,138,950 Accumulated depreciation (1,360,253) (1,332,453) Property, plant and equipment, net $ 797,682 $ 806,497 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease costs were as follows: Three Months Ended March 31, 2019 Operating Lease Costs: Fixed $ 12,244 Variable 2,047 Short-term 4,865 Total* $ 19,156 * Finance lease cost and sublease income were immaterial. |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Supplemental cash flow information were as follows: Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12,414 Operating cash flows from finance leases 108 Financing cash flows from finance leases 409 Total $ 12,931 Right-of-use assets obtained in exchange for new lease obligations: Operating leases 10,708 Finance leases 37 Total $ 10,745 |
Lease Supp Balance Sheet disclosures [Table Text Block] | Supplemental balance sheet information related to leases were as follows: March 31, 2019 Operating Leases: Right of use assets: Other assets and deferred charges $ 154,562 Lease liabilities: Other accrued expenses $ 43,247 Other liabilities 118,783 Total operating lease liabilities $ 162,030 Finance Leases: Right of use assets: Property, plant and equipment, net (1) $ 11,856 Lease liabilities: Other accrued expenses $ 1,526 Other liabilities 8,350 Total financing lease liabilities $ 9,876 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The aggregate future lease payments for operating and finance leases as of March 31, 2019 were as follows: Operating Finance 2019 (excluding the three months ending March 31, 2019) $ 37,090 $ 1,425 2020 39,237 1,881 2021 29,666 1,793 2022 21,329 1,608 2023 13,544 1,204 Thereafter 42,182 4,040 Total lease payments 183,048 11,951 Less: Interest (21,018) (2,075) Present value of lease liabilities $ 162,030 $ 9,876 |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | The aggregate future lease payments for operating and capital leases as of December 31, 2018 are as follows: Operating Capital 2019 $ 49,009 $ 1,802 2020 38,620 1,748 2021 29,396 1,687 2022 21,767 1,392 2023 13,994 952 Thereafter 42,087 3,802 Total $ 194,873 $ 11,383 |
Lease Assumptions [Table Text Block] | Average lease terms and discount rates were as follows: March 31, 2019 Weighted-average remaining lease term (years) Operating leases 5.8 Finance leases 6.4 Weighted-average discount rate Operating leases 3.3% Finance leases 4.4% |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill [Line Items] | |
Goodwill | The changes in the carrying value of goodwill by reportable operating segments were as follows: Engineered Systems Fluids Refrigeration & Food Equipment Total Balance at December 31, 2018 $ 1,623,660 $ 1,507,602 $ 546,066 $ 3,677,328 Acquisitions — 97,817 — 97,817 Held for sale — (4,739) — (4,739) Foreign currency translation (1,460) 8,386 (55) 6,871 Balance at March 31, 2019 $ 1,622,200 $ 1,609,066 $ 546,011 $ 3,777,277 |
Schedule of Intangible Assets | The Company’s definite-lived and indefinite-lived intangible assets by major asset class were as follows: March 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets: Customer intangibles $ 1,404,109 $ 648,177 $ 755,932 $ 1,395,742 $ 645,305 $ 750,437 Trademarks 217,996 74,597 143,399 214,774 72,305 142,469 Patents 160,240 129,692 30,548 144,302 128,254 16,048 Unpatented technologies 155,481 89,379 66,102 155,380 85,560 69,820 Distributor relationships 83,804 39,750 44,054 82,970 37,943 45,027 Drawings & manuals 27,707 20,784 6,923 31,849 23,273 8,576 Other 21,434 15,927 5,507 21,046 15,835 5,211 Total 2,070,771 1,018,306 1,052,465 2,046,063 1,008,475 1,037,588 Unamortized intangible assets: Trademarks 96,671 — 96,671 96,668 — 96,668 Total intangible assets, net $ 2,167,442 $ 1,018,306 $ 1,149,136 $ 2,142,731 $ 1,008,475 $ 1,134,256 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The Company's restructuring charges by segment were as follows: Three Months Ended March 31, 2019 2018 Engineered Systems $ 370 $ 1,375 Fluids 1,119 2,051 Refrigeration & Food Equipment 1,412 45 Corporate 35 749 Total $ 2,936 $ 4,220 These amounts are classified in the Condensed Consolidated Statements of Earnings as follows: Cost of goods and services $ 1,179 $ 2,339 Selling, general and administrative expenses 1,757 1,881 Total $ 2,936 $ 4,220 |
Schedule of Restructuring Reserve by Type of Cost | The Company’s severance and exit accrual activities were as follows: Severance Exit Total Balance at December 31, 2018 $ 24,284 $ 3,880 $ 28,164 Restructuring charges 1,941 995 2,936 Payments (10,776) (424) (11,200) Other, including foreign currency translation (754) (915) (1,669) Balance at March 31, 2019 $ 14,695 $ 3,536 $ 18,231 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Borrowings consisted of the following: March 31, 2019 December 31, 2018 Short-term Current portion of long-term debt and short-term borrowings $ 1,355 $ — Commercial paper 344,900 220,318 Notes payable and current maturities of long-term debt $ 346,255 $ 220,318 |
Schedule of Long-term Debt Instruments | Carrying amount (1) Principal March 31, 2019 December 31, 2018 Long-term 2.125% 7-year notes due December 1, 2020 (euro-denominated) € 300,000 338,583 339,657 4.30% 10-year notes due March 1, 2021 $ 450,000 449,293 449,200 3.150% 10-year notes due November 15, 2025 $ 400,000 395,537 395,368 1.25% 10-year notes due November 9, 2026 (euro-denominated) € 600,000 670,021 672,103 6.65% 30-year debentures due June 1, 2028 $ 200,000 199,080 199,054 5.375% 30-year debentures due October 15, 2035 $ 300,000 295,873 295,811 6.60% 30-year notes due March 15, 2038 $ 250,000 247,855 247,827 5.375% 30-year notes due March 1, 2041 $ 350,000 343,946 343,877 Other 779 763 Total long-term debt 2,940,967 2,943,660 Less long-term debt current portion — — Net long-term debt $ 2,940,967 $ 2,943,660 (1) Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discounts were $15.4 million and $15.8 million as of March 31, 2019 and December 31, 2018, respectively. Total deferred debt issuance costs were $12.6 million and $13.0 million as of March 31, 2019 and December 31, 2018, respectively. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivative instruments and the balance sheet lines in which they are recorded | The following table sets forth the fair values of derivative instruments held by the Company as of March 31, 2019 and December 31, 2018 and the balance sheet lines in which they are recorded: Fair Value Asset (Liability) March 31, 2019 December 31, 2018 Balance Sheet Caption Foreign currency forward $ 3,996 $ 1,874 Prepaid / Other current assets Foreign currency forward (637) (1,165) Other accrued expenses |
Schedule of net investment hedges in accumulated other comprehensive income (loss) | Amounts recognized in other comprehensive earnings for the gains (losses) on net investment hedges were as follows: Three Months Ended March 31, 2019 2018 Gain (loss) on euro-denominated debt $ 3,557 $ (44,109) Tax (expense) benefit (747) 9,263 Net gain (loss) on net investment hedges, net of tax $ 2,810 $ (34,846) |
Assets and liabilities measured at fair value on a recurring basis | The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018: Level 2 Level 2 Assets: Foreign currency cash flow hedges $ 3,996 $ 1,874 Liabilities: Foreign currency cash flow hedges 637 1,165 |
Equity Incentive Program (Table
Equity Incentive Program (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based incentive plans compensation expense | Stock-based compensation is reported within selling, general and administrative expenses of continuing operations in the Condensed Consolidated Statements of Earnings. The following table summarizes the Company’s compensation expense relating to all stock-based incentive plans: Three Months Ended March 31, 2019 2018 Pre-tax stock-based compensation expense (continuing) $ 8,182 $ 6,745 Tax benefit (1,048) (1,496) Total stock-based compensation expense, net of tax $ 7,134 $ 5,249 Stock-based compensation expense attributable to Apergy employees for the three months ended March 31, 2018 was $569. These costs are reported within earnings from discontinued operations in the Condensed Consolidated Statement of Earnings. |
Stock Appreciation Rights (SARs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Valuation assumptions | The range of assumptions used in determining the fair value of the SARs awarded during the respective periods were as follows: SARs 2019 2018 Risk-free interest rate 2.51 % 2.58 % - 2.87 % Dividend yield 2.13 % 1.99 % - 2.43 % Expected life (years) 5.6 5.6 - 5.7 Volatility 22.35 % 20.95 % - 21.20 % Grant price $91.20 $79.75 - $82.09 Fair value per share at date of grant $17.55 $14.58 - $15.41 |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Valuation assumptions | The fair value and average attainment used in determining stock-based compensation cost for the performance shares issued in 2019 and 2018 is as follows for the three months ended March 31, 2019: 2019 2018 Fair value per share at date of grant $91.20 $79.75 - $82.09 Average attainment rate reflected in expense 211.68% 267.91% |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | Estimated warranty program claims are provided for at the time of sale of the Company's products. Amounts provided for are based on historical costs and adjusted for new claims and are included within other accrued expenses and other liabilities in the Condensed Consolidated Balance Sheet. The changes in the carrying amount of product warranties through March 31, 2019 and 2018, were as follows: 2019 2018 Beginning Balance, December 31 of the Prior Year $ 50,073 $ 59,403 Provision for warranties 13,955 12,447 Settlements made (14,993) (14,833) Other adjustments, including acquisitions and currency translation (792) 848 Ending Balance, March 31 $ 48,243 $ 57,865 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Defined benefit pension plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | The tables below set forth the components of the Company’s net periodic (income) expense relating to retirement benefit plans. The service cost component is recognized within selling, general and administrative expenses and cost of goods and services, depending on the functional area of the underlying employees included in the plans, and the non-operating components of pension costs are included within other income, net in the Condensed Consolidated Statements of Earnings. The amounts recorded to discontinued operations represent the net periodic benefit expense for several non-U.S. qualified and U.S. non-qualified plans that were transferred to Apergy at the spin-off date of May 9, 2018. Qualified Defined Benefits Three Months Ended March 31, U.S. Plan Non-U.S. Plans 2019 2018 2019 2018 Service cost $ 1,754 $ 2,984 $ 1,545 $ 1,577 Interest cost 4,756 5,102 1,241 1,378 Expected return on plan assets (8,534) (10,211) (1,517) (2,091) Amortization: Prior service cost (credit) 76 87 (58) (115) Recognized actuarial loss — 1,931 816 803 Transition obligation — — — 1 Net periodic (income) expense (1,948) (107) 2,027 1,553 Less: Discontinued operations — 677 — 174 Net periodic (income) expense - Continuing operations $ (1,948) $ (784) $ 2,027 $ 1,379 |
Supplemental Employee Retirement Plans, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | Non-Qualified Supplemental Benefits Three Months Ended March 31, 2019 2018 Service cost $ 486 $ 695 Interest cost 668 893 Amortization: Prior service cost 703 963 Recognized actuarial gain (570) (255) Net periodic expense $ 1,287 $ 2,296 Less: Discontinued operations — 254 Net periodic expense - Continuing operations $ 1,287 $ 2,042 |
Post-Retirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | Post-Retirement Benefit Plans The Company also maintains post-retirement benefit plans, although these plans are closed to new entrants. The supplemental and post-retirement benefit plans are supported by the general assets of the Company. The following table sets forth the components of the Company’s net periodic expense relating to its post-retirement benefit plans: Three Months Ended March 31, 2019 2018 Service cost $ 5 $ 8 Interest cost 78 73 Amortization: Prior service cost 3 3 Recognized actuarial gain (18) (8) Net periodic expense $ 68 $ 76 |
Other Comprehensive Earnings (T
Other Comprehensive Earnings (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of other comprehensive income | The amounts recognized in other comprehensive earnings were as follows: Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation adjustments $ 49,786 $ (747) $ 49,039 $ 43,045 $ 9,263 $ 52,308 Pension and other post-retirement benefit plans 952 (205) 747 3,410 (728) 2,682 Changes in fair value of cash flow hedges 2,993 (629) 2,364 1,404 (295) 1,109 Total other comprehensive earnings $ 53,731 $ (1,581) $ 52,150 $ 47,859 $ 8,240 $ 56,099 |
Schedule of comprehensive income (loss) | Total comprehensive earnings were as follows: Three Months Ended March 31, 2019 2018 Net earnings $ 105,705 $ 131,435 Other comprehensive earnings 52,150 56,099 Comprehensive earnings $ 157,855 $ 187,534 |
Schedule of amounts reclassified from accumulated other comprehensive income (loss) to earnings | Amounts reclassified from accumulated other comprehensive loss to earnings during the three months ended March 31, 2019 and 2018 were as follows: Three Months Ended March 31, 2019 2018 Foreign currency translation: Reclassification of foreign currency translation losses to earnings for assets held for sale $ 25,339 $ — Tax benefit — — Net of tax $ 25,339 $ — Pension and other postretirement benefit plans: Amortization of actuarial losses $ 228 $ 2,471 Amortization of prior service costs 724 939 Total before tax 952 3,410 Tax benefit (205) (728) Net of tax $ 747 $ 2,682 Cash flow hedges: Net gains reclassified into earnings $ (291) $ (320) Tax provision 61 67 Net of tax $ (230) $ (253) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenue and earnings from continuing operations by market segment | Segment financial information and a reconciliation of segment results to consolidated results is as follows: Three Months Ended March 31, 2019 2018 Revenue: Engineered Systems $ 687,191 $ 671,626 Fluids 703,224 628,098 Refrigeration & Food Equipment 334,643 338,235 Intra-segment eliminations (301) (288) Total consolidated revenue $ 1,724,757 $ 1,637,671 Earnings from continuing operations: Segment earnings: (1) Engineered Systems $ 123,074 $ 102,066 Fluids (2) 52,221 67,348 Refrigeration & Food Equipment 24,807 29,182 Total segment earnings 200,102 198,596 Corporate expense / other (3) 30,866 30,763 Interest expense 31,808 35,640 Interest income (890) (2,058) Earnings before provision for income taxes and discontinued operations 138,318 134,251 Provision for income taxes 32,613 24,841 Earnings from continuing operations $ 105,705 $ 109,410 ( 1 ) Segment earnings includes non-operating income and expense directly attributable to the segments. (2) The three months ended March 31, 2019 includes a $46,946 loss on assets held for sale for Finder. Excluding this loss, Fluids segment earnings was $99,167. ( 3 ) Certain expenses are maintained at the corporate level and not allocated to the segments. These expenses include executive and functional compensation costs, non-service pension costs, non-operating insurance expenses, shared business services costs and various administrative expenses relating to the corporate headquarters. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of information used in computing basic and diluted earnings per share | The following table sets forth a reconciliation of the information used in computing basic and diluted earnings per share: Three Months Ended March 31, 2019 2018 Earnings from continuing operations $ 105,705 $ 109,410 Earnings from discontinued operations, net — 22,025 Net earnings $ 105,705 $ 131,435 Basic earnings per common share: Earnings from continuing operations $ 0.73 $ 0.71 Earnings from discontinued operations, net $ — $ 0.14 Net earnings $ 0.73 $ 0.85 Weighted average shares outstanding 145,087,000 154,520,000 Diluted earnings per common share: Earnings from continuing operations $ 0.72 $ 0.70 Earnings from discontinued operations, net $ — $ 0.14 Net earnings $ 0.72 $ 0.84 Weighted average shares outstanding 146,911,000 157,090,000 |
Reconciliation of share amounts used in computing earnings per share | The following table is a reconciliation of the share amounts used in computing earnings per share: Three Months Ended March 31, 2019 2018 Weighted average shares outstanding - Basic 145,087,000 154,520,000 Dilutive effect of assumed exercise of SARs and vesting of performance shares and RSUs 1,824,000 2,570,000 Weighted average shares outstanding - Diluted 146,911,000 157,090,000 |
Spin-off of Apergy Corporatio_2
Spin-off of Apergy Corporation (Detail) € in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) | May 09, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash and Cash Equivalents | $ 10,400 | |||
Current assets | $ 17,441 | |||
Assets held for sale | $ 0 | 44,210 | ||
Current liabilities | 12,947 | |||
Total liabilities of discontinued operations | 0 | $ 20,581 | ||
Less: Cash received from Apergy Corporation | 700,000 | |||
Cash received from Apergy, net of cash distributed | 689,600 | |||
Stock repurchase program (dollar value of planned repurchases) | 1,000,000 | |||
Apergy [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash and Cash Equivalents | 10,357 | |||
Current assets | 462,620 | |||
Non-current assets | 1,438,760 | |||
Assets held for sale | 1,911,737 | |||
Current liabilities | 185,354 | |||
Noncurrent liabilities | 119,568 | |||
Total liabilities of discontinued operations | 304,922 | |||
Net assets distributed to Apergy Corporation | 1,606,815 | |||
Less: Cash received from Apergy Corporation | 700,000 | |||
Net distribution to Apergy Corporation | $ 906,815 | |||
Separation of Apergy | 33,000 | |||
Note due 2026 [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Debt Instrument, Face Amount | € | € 600,000 | |||
Note due 2026 [Member] | Apergy [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Debt Instrument, Face Amount | $ 300,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | |||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 415,000 |
Disaggregation of Revenue (Deta
Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 1,724,757 | $ 1,637,671 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 919,892 | 853,002 |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 402,645 | 387,178 |
Asia [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 196,350 | 194,603 |
Other Americas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 138,118 | 133,144 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 67,752 | 69,744 |
Printing and Identification End Market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 282,086 | 282,522 |
Industrials End Market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 405,105 | 389,104 |
Engineered Systems Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 687,191 | 671,626 |
Fueling and Transport End Market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 373,050 | 319,304 |
Pumps End Market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 177,439 | 162,309 |
Process Solutions End Market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 152,735 | 146,485 |
Fluids Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 703,224 | 628,098 |
Refrigeration End Market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 277,598 | 278,655 |
Food Equipment End Market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 57,045 | 59,580 |
Refrigeration and Food Equipment Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 334,643 | 338,235 |
Intersegment Eliminations [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ (301) | $ (288) |
Remaining Performance Obligatio
Remaining Performance Obligation (Details) $ in Millions | Mar. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 83 |
Revenue, Remaining Performance Obligation, Percentage | 65.00% |
Contract Balances (Details)
Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jan. 01, 2018 | |
Change in Contract with Customer, Asset and Liability [Abstract] | ||||
Revenue recognized that was included in the contract liability balance at the beginning of the period | $ (15,414) | $ (13,781) | ||
Contract with Customer, Asset and Liability [Abstract] | ||||
Contract assets balance | 11,443 | $ 9,330 | $ 11,932 | |
Contract liabilities - current | 39,733 | 36,461 | 48,268 | |
Contract liabilities - non-current | $ 9,731 | $ 9,382 | $ 9,916 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 175,083 | $ 68,385 |
Revenue [Abstract] | ||
As reported | 1,724,757 | 1,637,671 |
Pro forma | 1,728,525 | 1,651,530 |
Net earnings [Abstract] | ||
As reported | 105,705 | 109,410 |
Pro forma | $ 107,204 | $ 111,953 |
Basic earnings per share [Abstract] | ||
As reported (in dollars per share) | $ 0.73 | $ 0.71 |
Pro forma (in dollars per share) | 0.74 | 0.72 |
Diluted earnings per share [Abstract] | ||
As reported (in dollars per share) | 0.72 | 0.70 |
Pro forma (in dollars per share) | $ 0.73 | $ 0.71 |
Belanger [Member] | ||
Business Acquisition [Line Items] | ||
Current Assets | $ 9,392 | |
Property, Plant, and Equipment | 597 | |
Goodwill | 97,817 | |
Intangibles | 77,000 | |
Other assets and deferred charges | 20 | |
Current Liabilities | 9,743 | |
Net assets acquired | 175,083 | |
Goodwill and intangible assets | 174,817 | |
Belanger [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Intangibles | $ 54,500 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | |
Belanger [Member] | Patents [Member] | ||
Business Acquisition [Line Items] | ||
Intangibles | $ 16,000 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | |
Belanger [Member] | Trademarks [Member] | ||
Business Acquisition [Line Items] | ||
Intangibles | $ 6,500 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |
Ettiingler [Member] | ||
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 53,046 | |
Goodwill | 36,505 | |
Intangibles | 20,084 | |
Rosario [Member] | ||
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Net of Cash Acquired | 15,339 | |
Goodwill | $ 10,402 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |
Rosario [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Intangibles | $ 4,149 | |
Minimum [Member] | Ettiingler [Member] | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years | |
Maximum [Member] | Ettiingler [Member] | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years |
Held for Sale (Details)
Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ 23,629 | ||
Accounts Receivable, net | 12,698 | ||
Inventories | 3,693 | ||
Prepaid and Other Current Assets | 1,050 | ||
Total Current Assets | 17,441 | ||
Property, Plant and Equipment, Net | 13,596 | ||
Goodwill and Intangible Assets, Net | 34,524 | ||
Other Assets and Deferred Charges | 256 | ||
Impairment of Long-Lived Assets to be Disposed of | (21,607) | ||
Assets held for sale | 44,210 | $ 0 | |
Accounts Payable | 7,859 | ||
Other Current Liabilities | 5,088 | ||
Current liabilities | 12,947 | ||
Deferred Income Taxes | 7,011 | ||
Other Liabilities | 623 | ||
Liabilities held for sale | 20,581 | $ 0 | |
Loss on assets held for sale | (46,946) | $ 0 | |
Foreign Currency Translation Gains (Losses) | $ 25,339 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Spin-off Costs Incurred to Date | $ 11,746 | |
Discontinued Operation, Revenue | 284,041 | |
Discontinued Operation, Costs of Goods and Services | 177,928 | |
Discontinued Operation, Gross Profit | 106,113 | |
Discontinued Operation, Selling, General and Administrative Expense | 79,123 | |
Discontinued Operation, Operating Earnings | 26,990 | |
Discontinued Operation, Other Expense, Net | 484 | |
Discontinued Operation, Earnings from Discontinued Operations Before Taxes | 26,506 | |
Discontinued Operation, Tax Effect of Discontinued Operation | 4,481 | |
Earnings (loss) from discontinued operations | $ 0 | $ 22,025 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory, Net [Abstract] | ||
Raw materials | $ 474,204 | $ 439,616 |
Work in progress | 177,544 | 154,878 |
Finished goods | 288,986 | 265,722 |
Subtotal | 940,734 | 860,216 |
Less reserves | (112,436) | (111,420) |
Total | $ 828,298 | $ 748,796 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Cost | $ 2,157,935 | $ 2,138,950 | |
Accumulated depreciation | (1,360,253) | (1,332,453) | |
Total | 797,682 | 806,497 | |
Depreciation expense | 32,188 | $ 32,164 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 49,834 | 53,623 | |
Buildings and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 518,238 | 529,982 | |
Machinery, equipment and other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 1,589,863 | $ 1,555,345 |
Lease Cost (Details)
Lease Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Cost | $ 12,244 |
Variable Lease, Cost | 2,047 |
Short-term Lease, Cost | 4,865 |
Lease, Cost, Total | $ 19,156 |
Lease Cash Flow (Details)
Lease Cash Flow (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Supplemental Cash Flow Disclosures [Line Items] | |
Operating Lease, Payments | $ 12,414 |
Finance Lease, Interest Payment on Liability | 108 |
Finance Lease, Principal Payments | 409 |
Total Cash flow leases | 12,931 |
New ROU assets | 10,708 |
New Finance Lease Assets | 37 |
Total New Lease Assets | $ 10,745 |
Lease Assets and Liabilities (D
Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 154,562 | $ 163,000 |
Operating Lease, Liability, Current | 43,247 | |
Operating Lease, Liability, Noncurrent | 118,783 | |
Operating Lease, Liability | 162,030 | |
Finance Lease, Right-of-Use Asset | 11,856 | |
Finance Lease, Liability, Current | 1,526 | |
Finance Lease, Liability, Noncurrent | 8,350 | |
Finance Lease, Liability | 9,876 | |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | $ 909 |
Lease Maturity Tables (Details)
Lease Maturity Tables (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating Lease Liabilities, Payments Due [Abstract] | ||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 37,090 | $ 49,009 |
Operating Leases, Future Minimum Payments, Due in Two Years | 39,237 | 38,620 |
Operating Leases, Future Minimum Payments, Due in Three Years | 29,666 | 29,396 |
Operating Leases, Future Minimum Payments, Due in Four Years | 21,329 | 21,767 |
Operating Leases, Future Minimum Payments, Due in Five Years | 13,544 | 13,994 |
Operating Leases, Future Minimum Payments, Due Thereafter | 42,182 | 42,087 |
Operating Leases, Future Minimum Payments Due | 183,048 | 194,873 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (21,018) | |
Lessee, Operating Lease, Liability, Payments, Due | 162,030 | |
Finance Lease Liabilities, Payments, Due [Abstract] | ||
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 1,425 | 1,802 |
Capital Leases, Future Minimum Payments Due in Two Years | 1,881 | 1,748 |
Capital Leases, Future Minimum Payments Due in Three Years | 1,793 | 1,687 |
Capital Leases, Future Minimum Payments Due in Four Years | 1,608 | 1,392 |
Capital Leases, Future Minimum Payments Due in Five Years | 1,204 | 952 |
Capital Leases, Future Minimum Payments Due Thereafter | 4,040 | 3,802 |
Capital Leases, Future Minimum Payments Due | 11,951 | $ 11,383 |
Finance Lease, Liability, Undiscounted Excess Amount | 2,075 | |
Finance Lease, Liability, Payments, Due | $ 9,876 |
Lease Assumptions (Details)
Lease Assumptions (Details) | Mar. 31, 2019 |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Weighted Average Remaining Lease Term | 5 years 9 months 18 days |
Finance Lease, Weighted Average Remaining Lease Term | 6 years 4 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.30% |
Finance Lease, Weighted Average Discount Rate, Percent | 4.40% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill Balance | $ 3,777,277 | $ 3,677,328 |
Goodwill, Acquired During Period | 97,817 | |
Goodwill, Written off Related to Sale of Business Unit | (4,739) | |
Foreign Currency Translation | 6,871 | |
Balance | 3,777,277 | |
Engineered Systems Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill Balance | 1,622,200 | 1,623,660 |
Goodwill, Acquired During Period | 0 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | |
Foreign Currency Translation | (1,460) | |
Balance | 1,622,200 | |
Fluids Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill Balance | 1,609,066 | 1,507,602 |
Goodwill, Acquired During Period | 97,817 | |
Goodwill, Written off Related to Sale of Business Unit | (4,739) | |
Foreign Currency Translation | 8,386 | |
Balance | 1,609,066 | |
Refrigeration and Food Equipment Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill Balance | 546,011 | $ 546,066 |
Goodwill, Acquired During Period | 0 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | |
Foreign Currency Translation | (55) | |
Balance | $ 546,011 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 2,070,771 | $ 2,046,063 | |
Accumulated amortization | 1,018,306 | 1,008,475 | |
Finite-Lived Intangible Assets, Net | 1,052,465 | 1,037,588 | |
Intangible Assets, Gross (Excluding Goodwill) | 2,167,442 | 2,142,731 | |
Intangible assets, net | 1,149,136 | 1,134,256 | |
Amortization expense | 35,550 | $ 36,461 | |
Acquisition-related amortization expense | 35,155 | $ 35,889 | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated amortization | 0 | 0 | |
Customer Intangibles [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 1,404,109 | 1,395,742 | |
Accumulated amortization | 648,177 | 645,305 | |
Finite-Lived Intangible Assets, Net | 755,932 | 750,437 | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 217,996 | 214,774 | |
Accumulated amortization | 74,597 | 72,305 | |
Finite-Lived Intangible Assets, Net | 143,399 | 142,469 | |
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 160,240 | 144,302 | |
Accumulated amortization | 129,692 | 128,254 | |
Finite-Lived Intangible Assets, Net | 30,548 | 16,048 | |
Unpatented Technologies [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 155,481 | 155,380 | |
Accumulated amortization | 89,379 | 85,560 | |
Finite-Lived Intangible Assets, Net | 66,102 | 69,820 | |
Distributor Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 83,804 | 82,970 | |
Accumulated amortization | 39,750 | 37,943 | |
Finite-Lived Intangible Assets, Net | 44,054 | 45,027 | |
Drawings and Manuals [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 27,707 | 31,849 | |
Accumulated amortization | 20,784 | 23,273 | |
Finite-Lived Intangible Assets, Net | 6,923 | 8,576 | |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 21,434 | 21,046 | |
Accumulated amortization | 15,927 | 15,835 | |
Finite-Lived Intangible Assets, Net | $ 5,507 | $ 5,211 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Indefinite-lived Intangibles (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Trademarks [Member] | ||
Unamortized Intangible Assets [Abstract] | ||
Gross carrying amount | $ 96,671 | $ 96,668 |
Restructuring Activities (Detai
Restructuring Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 2,936 | $ 4,220 | ||
Restructuring Reserve [Roll Forward] | ||||
Severance and other restructuring reserve, beginning balance | 28,164 | $ 18,231 | $ 28,164 | |
Provision | 2,936 | |||
Payments | (11,200) | |||
Other, including write-offs of fixed assets | (1,669) | |||
Severance and other restructuring reserve, ending balance | 18,231 | |||
Engineered Systems Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 370 | 1,375 | ||
Fluids Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,119 | 2,051 | ||
Refrigeration and Food Equipment Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,412 | 45 | ||
Corporate, Non-Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 35 | 749 | ||
Footprint Consolidation Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,000 | |||
Footprint Consolidation Costs [Member] | Scenario, Forecast [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 9,000 | 10,000 | ||
Employee Severance [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Severance and other restructuring reserve, beginning balance | 24,284 | 14,695 | 24,284 | |
Provision | 1,941 | |||
Payments | (10,776) | |||
Other, including write-offs of fixed assets | (754) | |||
Severance and other restructuring reserve, ending balance | 14,695 | |||
Facility Closing [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Severance and other restructuring reserve, beginning balance | 3,880 | 3,536 | 3,880 | |
Provision | 995 | |||
Payments | (424) | |||
Other, including write-offs of fixed assets | (915) | |||
Severance and other restructuring reserve, ending balance | 3,536 | |||
Cost of Sales [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,179 | 2,339 | ||
Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,757 | $ 1,881 | ||
Selling, General and Administrative Expenses [Member] | Rightsizing Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 2,000 | |||
Selling, General and Administrative Expenses [Member] | Rightsizing Costs [Member] | Scenario, Forecast [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 3,000 | $ 5,000 |
Borrowings (Details)
Borrowings (Details) € in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | |
Short-term borrowings [Abstract] | |||
Current poriton of long-term debt and short-term borrowings | $ 1,355 | $ 0 | |
Commercial Paper | 344,900 | 220,318 | |
Notes payable and current maturities of long-term debt | 346,255 | 220,318 | |
Long-term borrowings [Abstract] | |||
Long-term debt | 2,940,967 | 2,943,660 | |
Long-term debt current portion | 0 | 0 | |
Net long-term debt | 2,940,967 | 2,943,660 | |
Unamortized debt discounts | 15,400 | 15,800 | |
Deferred debt issuance costs | 12,600 | 13,000 | |
Line of Credit Facility [Abstract] | |||
Unsecured revolving credit facility, maximum borrowing capacity | $ 1,000,000 | ||
Line of Credit Facility, Covenant Compliance | The Company was in compliance with all covenants in the Credit Agreement and other long-term debt covenants at March 31, 2019 and had a coverage ratio of 9.7 to 1.0. | ||
Letters of Credit Outstanding, Amount | $ 142,400 | ||
Note due 2020 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 338,583 | 339,657 | |
Debt Instrument, Face Amount | € | € 300,000 | ||
Note due 2021 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 449,293 | 449,200 | |
Debt Instrument, Face Amount | 450,000 | ||
Note due 2025 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 395,537 | 395,368 | |
Debt Instrument, Face Amount | 400,000 | ||
Note due 2026 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 670,021 | 672,103 | |
Debt Instrument, Face Amount | € | € 600,000 | ||
Debentures due 2028 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 199,080 | 199,054 | |
Debt Instrument, Face Amount | 200,000 | ||
Debenture due 2035 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 295,873 | 295,811 | |
Debt Instrument, Face Amount | 300,000 | ||
Note due 2038 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 247,855 | 247,827 | |
Debt Instrument, Face Amount | 250,000 | ||
Note due 2041 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 343,946 | 343,877 | |
Debt Instrument, Face Amount | 350,000 | ||
Other long term debt instruments [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | $ 779 | $ 763 |
Financial Instruments (Details)
Financial Instruments (Details) € in Thousands, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | |
Derivatives, Fair Value [Line Items] | ||||
(Loss) gain on euro-denominated debt | $ 3,557 | $ (44,109) | ||
Tax benefit (expense) | (747) | 9,263 | ||
Net (loss) gain on net investment hedge, net of tax | 2,810 | $ (34,846) | ||
Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Notional Amount | 210,787 | $ 153,873 | ||
Not Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Notional Amount | 91,749 | 66,906 | ||
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value - Asset | 3,996 | 1,874 | ||
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Other Accrued Expenses [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value - Liability | 637 | $ 1,165 | ||
Note due 2026 [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Debt Instrument, Face Amount | € | € 600,000 | |||
Note due 2026 [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Debt Instrument, Face Amount | $ 600,000 | |||
Note due 2020 [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Debt Instrument, Face Amount | € | 300,000 | |||
Note due 2020 [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Debt Instrument, Face Amount | € | € 300,000 |
Financial Instruments - Balance
Financial Instruments - Balance Sheet Location (Details) - Fair Value, Measurements, Recurring [Member] - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets [Abstract] | ||
Foreign currency cash flow hedges - asset | $ 3,996 | $ 1,874 |
Liabilities [Abstract] | ||
Foreign currency cash flow hedges - liability | $ 637 | $ 1,165 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 2,940,967 | $ 2,943,660 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | 3,190,794 | 3,132,330 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign currency cash flow hedges - asset | 3,996 | 1,874 |
Foreign currency cash flow hedges - liability | $ (637) | $ (1,165) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Effective tax rate (in hundredths) | 23.60% | 18.50% |
Minimum [Member] | ||
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, lower bound | $ 0 | |
Maximum [Member] | ||
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, lower bound | $ 12,200 |
Equity Incentive Program (Detai
Equity Incentive Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stock-based compensation expense [Abstract] | ||
Pre-tax stock-based compensation expense | $ 8,182 | $ 6,745 |
Tax benefit | (1,048) | (1,496) |
Total stock-based compensation expense, net of tax | $ 7,134 | $ 5,249 |
Stock Appreciation Rights (SARs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards issued during period (in shares) | 610,979 | |
Risk-free interest rate (in hundredths) | 2.51% | |
Dividend yield (in hundredths) | 2.13% | |
Expected life (in years) | 5 years 7 months 6 days | |
Volatility (in hundredths) | 22.35% | |
Grant price (in dollars per share) | $ 91.20 | |
Fair value at date of grant (in dollars per share) | $ 17.55 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards issued during period (in shares) | 121,560 | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards issued during period (in shares) | 34,402 | |
Fair value at date of grant (in dollars per share) | $ 91.20 | |
Performance share attainment | 211.68% | 267.91% |
Minimum [Member] | Stock Appreciation Rights (SARs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate (in hundredths) | 2.58% | |
Dividend yield (in hundredths) | 1.99% | |
Expected life (in years) | 5 years 7 months 6 days | |
Volatility (in hundredths) | 20.95% | |
Fair value at date of grant (in dollars per share) | $ 14.58 | |
Minimum [Member] | Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant price (in dollars per share) | $ 79.75 | |
Maximum [Member] | Stock Appreciation Rights (SARs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate (in hundredths) | 2.87% | |
Dividend yield (in hundredths) | 2.43% | |
Expected life (in years) | 5 years 8 months 12 days | |
Volatility (in hundredths) | 21.20% | |
Grant price (in dollars per share) | $ 82.09 | |
Fair value at date of grant (in dollars per share) | 15.41 | |
Maximum [Member] | Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value at date of grant (in dollars per share) | $ 82.09 | |
Discontinuing Operations [Member] | ||
Stock-based compensation expense [Abstract] | ||
Pre-tax stock-based compensation expense | $ 569 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Accrual for environmental loss contingencies | $ 31,555 | $ 31,797 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Beginning balance | 50,073 | $ 59,403 | |
Provision for warranties | 13,955 | 12,447 | |
Settlements made | (14,993) | (14,833) | |
Other adjustments, including acquisitions and currency translation | (792) | 848 | |
Ending balance | $ 48,243 | $ 57,865 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net periodic benefit cost [Abstract] | ||
Total amount amortized out of accumulated other comprehensive income | $ 952 | $ 3,410 |
Defined contribution plan expense | 12,906 | 12,870 |
Post-Retirement Benefits [Member] | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 5 | 8 |
Interest cost | 78 | 73 |
Prior service cost (credit) | 3 | 3 |
Recognized actuarial loss | (18) | (8) |
Net periodic (income)/expense | 68 | 76 |
Qualified Plan [Member] | Defined benefit pension plans | U.S. Pension Plans, Defined Benefit [Member] | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 1,754 | 2,984 |
Interest cost | 4,756 | 5,102 |
Expected return on plan assets | (8,534) | (10,211) |
Prior service cost (credit) | 76 | 87 |
Recognized actuarial loss | 0 | 1,931 |
Transition obligation | 0 | 0 |
Net periodic (income)/expense | (1,948) | (107) |
Qualified Plan [Member] | Defined benefit pension plans | Foreign Pension Plans, Defined Benefit [Member] | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 1,545 | 1,577 |
Interest cost | 1,241 | 1,378 |
Expected return on plan assets | (1,517) | (2,091) |
Prior service cost (credit) | (58) | (115) |
Recognized actuarial loss | 816 | 803 |
Transition obligation | 0 | 1 |
Net periodic (income)/expense | 2,027 | 1,553 |
Nonqualified Plan [Member] | Supplemental Employee Retirement Plans, Defined Benefit [Member] | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 486 | 695 |
Interest cost | 668 | 893 |
Prior service cost (credit) | 703 | 963 |
Recognized actuarial loss | (570) | (255) |
Net periodic (income)/expense | 1,287 | 2,296 |
Discontinued Operations [Member] | Qualified Plan [Member] | Defined benefit pension plans | U.S. Pension Plans, Defined Benefit [Member] | ||
Net periodic benefit cost [Abstract] | ||
Net periodic (income)/expense | 0 | 677 |
Discontinued Operations [Member] | Qualified Plan [Member] | Defined benefit pension plans | Foreign Pension Plans, Defined Benefit [Member] | ||
Net periodic benefit cost [Abstract] | ||
Net periodic (income)/expense | 0 | 174 |
Discontinued Operations [Member] | Nonqualified Plan [Member] | Supplemental Employee Retirement Plans, Defined Benefit [Member] | ||
Net periodic benefit cost [Abstract] | ||
Net periodic (income)/expense | 0 | 254 |
Continuing Operations [Member] | Qualified Plan [Member] | Defined benefit pension plans | U.S. Pension Plans, Defined Benefit [Member] | ||
Net periodic benefit cost [Abstract] | ||
Net periodic (income)/expense | (1,948) | (784) |
Continuing Operations [Member] | Qualified Plan [Member] | Defined benefit pension plans | Foreign Pension Plans, Defined Benefit [Member] | ||
Net periodic benefit cost [Abstract] | ||
Net periodic (income)/expense | 2,027 | 1,379 |
Continuing Operations [Member] | Nonqualified Plan [Member] | Supplemental Employee Retirement Plans, Defined Benefit [Member] | ||
Net periodic benefit cost [Abstract] | ||
Net periodic (income)/expense | $ 1,287 | $ 2,042 |
Other Comprehensive Earnings (D
Other Comprehensive Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Foreign currency translation adjustments [Abstract] | ||
Foreign currency translation adjustments, before tax | $ 49,786 | $ 43,045 |
Foreign currency translation adjustments, tax | (747) | 9,263 |
Total foreign currency translation adjustment | 49,039 | 52,308 |
Pension and other postretirement benefit plans [Abstract] | ||
Pension and other postretirement benefit plans, before tax | 952 | 3,410 |
Pension and other postretirement benefit plans, tax | (205) | (728) |
Total pension and other postretirement benefit plans | 747 | 2,682 |
Changes in fair value of cash flow hedges [Abstract] | ||
Changes in fair value of cash flow hedges, before tax | 2,993 | 1,404 |
Changes in fair value of cash flow hedges, tax | (629) | (295) |
Total cash flow hedges | 2,364 | 1,109 |
Total other comprehensive earnings [Abstract] | ||
Other comprehensive earnings (loss), before Tax | 53,731 | 47,859 |
Other comprehensive earnings (loss), tax | (1,581) | 8,240 |
Other comprehensive (loss) earnings | 52,150 | 56,099 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net earnings | 105,705 | 131,435 |
Other comprehensive earnings (loss) | 52,150 | 56,099 |
Comprehensive earnings | 157,855 | 187,534 |
Other Comprehensive Income Loss Reclassification Adjustment from AOCI Foreign Currency Translation Net of Tax [Abstract] | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 25,339 | 0 |
Tax benefit | 0 | 0 |
Net of tax | 25,339 | 0 |
Other Comprehensive Income Loss Reclassification Adjustment From AOCI Pension And Other Postretirement Benefit Plans Net Of Tax Abstract [Abstract] | ||
Amortization of actuarial losses | 228 | 2,471 |
Amortization of prior service costs | 724 | 939 |
Total before tax | 952 | 3,410 |
Tax (benefit) provision | (205) | (728) |
Net of tax | 747 | 2,682 |
Other Comprehensive Income Loss Reclassification Adjustment From AOCI Derivatives Net of Tax [Abstract] | ||
Net (gains) losses reclassified into earnings | (291) | (320) |
Tax expense (benefit) | 61 | 67 |
Net of tax | $ (230) | $ (253) |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)segments | Mar. 31, 2018USD ($) | |
Segment Reporting [Abstract] | ||
Fluids Segment Earnings Excluding Loss on Finder | $ 99,167 | |
Segment Reporting Information [Line Items] | ||
Spin-off Costs Incurred to Date | $ 11,746 | |
Number of reportable segments | segments | 3 | |
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenues | $ 1,724,757 | 1,637,671 |
Interest Expense | 31,808 | 35,640 |
Interest Income | (890) | (2,058) |
Earnings before provision for income taxes | 138,318 | 134,251 |
Provision for income taxes | (32,613) | (24,841) |
Earnings from continuing operations | 105,705 | 109,410 |
Engineered Systems Segment [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenues | 687,191 | 671,626 |
Earnings before provision for income taxes | 123,074 | 102,066 |
Fluids Segment [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenues | 703,224 | 628,098 |
Earnings before provision for income taxes | 52,221 | 67,348 |
Refrigeration and Food Equipment Segment [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenues | 334,643 | 338,235 |
Earnings before provision for income taxes | 24,807 | 29,182 |
Intersegment Eliminations [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenues | (301) | (288) |
Total segments [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Earnings before provision for income taxes | 200,102 | 198,596 |
Corporate expense / other [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Earnings before provision for income taxes | $ 30,866 | $ 30,763 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share Repurchases [Line Items] | ||
Purchase of common stock | $ 0 | $ 44,977 |
January 2015 Authorization [Member] | ||
Share Repurchases [Line Items] | ||
Share repurchases | 440,608 | |
Purchase of common stock | $ 44,977 | |
Treasury Stock Acquired, Average Cost Per Share | $ 102.08 | |
Remaining number of shares authorized to be repurchased | 5,271,168 | |
February 2018 Authorization [Member] | ||
Share Repurchases [Line Items] | ||
Number of shares authorized to be repurchased | 20,000,000 | |
Share repurchases | 0 | |
Remaining number of shares authorized to be repurchased | 9,703,666 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Earnings from continuing operations | $ 105,705 | $ 109,410 |
Earnings (loss) from discontinued operations | 0 | 22,025 |
Net earnings | $ 105,705 | $ 131,435 |
Basic earnings (loss) per common share: | ||
Earnings from continuing operations (in dollars per basic share) | $ 0.73 | $ 0.71 |
Earnings (loss) per share from discontinued operations (in dollars per basic share) | 0 | 0.14 |
Net earnings (in dollars per basic share) | $ 0.73 | $ 0.85 |
Weighted average shares outstanding - basic (in shares) | 145,087,000 | 154,520,000 |
Diluted earnings (loss) per common share: | ||
Earnings from continuing operations (in dollars per diluted share) | $ 0.72 | $ 0.70 |
Earnings (loss) per share from discontinued operations (in dollars per diluted share) | 0 | 0.14 |
Net earnings (in dollars per diluted share) | $ 0.72 | $ 0.84 |
Weighted average shares outstanding - diluted (in shares) | 146,911,000 | 157,090,000 |
Reconciliation Of Share Amounts Used In Computing Earnings Per Share [Abstract] | ||
Weighted average shares outstanding - basic (in shares) | 145,087,000 | 154,520,000 |
Dilutive effect of assumed exercise of SAR's and vesting of performance shares (in shares) | 1,824,000 | 2,570,000 |
Weighted average shares outstanding - diluted (in shares) | 146,911,000 | 157,090,000 |
Antidilutive securities excluded from computation of earnings per share | 42,000 | 13,000 |
Recent Accounting Standards (De
Recent Accounting Standards (Details) - Accounting Standards Update 2018-02 [Member] $ in Thousands | Mar. 31, 2018USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 12,856 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Subsequent Event [Line Items] | |||
Proceeds from sale of businesses | $ 2,245 | $ 2,069 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Proceeds from sale of businesses | $ 24,218 |