Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 23, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | IEX | |
Entity Registrant Name | IDEX CORP /DE/ | |
Entity Central Index Key | 0000832101 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 75,707,118 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 456,130 | $ 466,407 |
Receivables, less allowance for doubtful accounts of $7,385 at March 31, 2019 and $6,709 at December 31, 2018 | 333,782 | 312,192 |
Inventories | 298,327 | 279,995 |
Other current assets | 40,989 | 33,938 |
Total current assets | 1,129,228 | 1,092,532 |
Property, plant and equipment - net | 271,920 | 281,220 |
Goodwill | 1,694,408 | 1,697,955 |
Intangible assets - net | 372,740 | 383,327 |
Other noncurrent assets | 83,164 | 18,823 |
Total assets | 3,551,460 | 3,473,857 |
Current liabilities | ||
Trade accounts payable | 160,594 | 143,196 |
Accrued expenses | 178,198 | 187,536 |
Short-term borrowings | 455 | 483 |
Dividends payable | 0 | 33,446 |
Total current liabilities | 339,247 | 364,661 |
Long-term borrowings | 848,437 | 848,335 |
Deferred income taxes | 130,881 | 128,007 |
Other noncurrent liabilities | 177,663 | 138,214 |
Total liabilities | 1,496,228 | 1,479,217 |
Commitments and contingencies | ||
Preferred stock: | ||
Authorized: 5,000,000 shares, $.01 per share par value; Issued: None | 0 | 0 |
Common stock: | ||
Authorized: 150,000,000 shares, $.01 per share par value, Issued: 89,967,159 shares at March 31, 2019 and 90,112,028 shares at December 31, 2018 | 900 | 901 |
Additional paid-in capital | 743,743 | 738,339 |
Retained earnings | 2,452,375 | 2,342,079 |
Treasury stock at cost: 14,264,971 shares at March 31, 2019 and 14,159,251 shares at December 31, 2018 | (1,011,769) | (957,454) |
Accumulated other comprehensive income (loss) | (130,017) | (129,225) |
Total shareholders’ equity | 2,055,232 | 1,994,640 |
Total liabilities and shareholders’ equity | $ 3,551,460 | $ 3,473,857 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 7,385 | $ 6,709 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock , par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 89,967,159 | 90,112,028 |
Treasury stock, shares (in shares) | 14,264,971 | 14,159,251 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 622,231 | $ 612,324 |
Cost of sales | 338,397 | 335,672 |
Gross profit | 283,834 | 276,652 |
Selling, general and administrative expenses | 136,052 | 138,327 |
Restructuring expenses | 0 | 1,642 |
Operating income | 147,782 | 136,683 |
Other (income) expense - net | (140) | (4,449) |
Interest expense | 10,921 | 11,000 |
Income before income taxes | 137,001 | 130,132 |
Provision for income taxes | 26,733 | 31,174 |
Net income | $ 110,268 | $ 98,958 |
Basic earnings per common share (in dollars per share) | $ 1.46 | $ 1.29 |
Diluted earnings per common share (in dollars per share) | $ 1.44 | $ 1.27 |
Share data: | ||
Basic weighted average common shares outstanding (in shares) | 75,442 | 76,419 |
Diluted weighted average common shares outstanding (in shares) | 76,284 | 77,739 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 110,268 | $ 98,958 |
Other comprehensive income (loss): | ||
Reclassification adjustments for derivatives, net of tax | 1,227 | 1,261 |
Pension and other postretirement adjustments, net of tax | 1,262 | 1,413 |
Cumulative translation adjustment | (3,281) | 27,578 |
Other comprehensive income (loss) | (792) | 30,252 |
Comprehensive income | $ 109,476 | $ 129,210 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock and Additional Paid-In Capital | Retained Earnings | Cumulative Translation Adjustment | Retirement Benefits Adjustment | Cumulative Unrealized Gain (Loss) on Derivatives | Treasury Stock |
Balance at Dec. 31, 2017 | $ 1,886,542 | $ 717,808 | $ 2,057,915 | $ (46,306) | $ (29,154) | $ (14,047) | $ (799,674) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 98,958 | 98,958 | |||||
Adjustment for adoption of ASU | 6,435 | (3,411) | (3,024) | ||||
Adjustment for adoption of ASU | Accounting Standards Update 2016-16 | (645) | (645) | |||||
Cumulative translation adjustment | 27,578 | 27,578 | |||||
Net change in retirement obligations (net of tax) | 1,413 | 1,413 | |||||
Net change on derivatives designated as cash flow hedges (net of tax) | 1,261 | 1,261 | |||||
Issuance of shares of common stock from issuance of unvested shares, performance share units and exercise of stock options (net of tax) | 6,590 | 6,590 | |||||
Shares surrendered for tax withholding | (10,750) | (10,750) | |||||
Share-based compensation | 5,938 | 5,938 | |||||
Balance at Mar. 31, 2018 | 2,016,885 | 723,746 | 2,162,663 | (18,728) | (31,152) | (15,810) | (803,834) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adjustment for adoption of ASU | Accounting Standards Update 2016-02 | 28 | 28 | |||||
Balance at Dec. 31, 2018 | 1,994,640 | 739,240 | 2,342,079 | (94,420) | (22,740) | (12,065) | (957,454) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 110,268 | 110,268 | |||||
Cumulative translation adjustment | (3,281) | (3,281) | |||||
Net change in retirement obligations (net of tax) | 1,262 | 1,262 | |||||
Net change on derivatives designated as cash flow hedges (net of tax) | 1,227 | 1,227 | |||||
Issuance of shares of common stock from issuance of unvested shares, performance share units and exercise of stock options (net of tax) | 8,870 | 8,870 | |||||
Repurchase of 369,810 shares of common stock | (51,706) | (51,706) | |||||
Shares surrendered for tax withholding | (11,479) | (11,479) | |||||
Share-based compensation | 5,403 | 5,403 | |||||
Balance at Mar. 31, 2019 | $ 2,055,232 | $ 744,643 | $ 2,452,375 | $ (97,701) | $ (21,478) | $ (10,838) | $ (1,011,769) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Pension and other postretirement adjustments, tax | $ 438 | $ 505 |
Amortization of forward starting swaps, tax | $ 361 | $ 371 |
Issuance of common stock from performance share units and exercise of stock options (in shares) | 264,090 | 227,932 |
Issuance of common stock from exercise of stock options and deferred compensation plans, tax amount | $ 3,415 | $ 2,934 |
Purchase of common stock (in shares) | 369,810 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net income | $ 110,268 | $ 98,958 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,660 | 10,183 |
Amortization of intangible assets | 8,999 | 10,871 |
Amortization of debt issuance expenses | 335 | 332 |
Share-based compensation expense | 7,560 | 7,652 |
Deferred income taxes | 3,027 | (2,041) |
Non-cash interest expense associated with forward starting swaps | 1,588 | 1,632 |
Changes in (net of the effect from acquisitions): | ||
Receivables | (21,402) | (30,816) |
Inventories | (18,548) | (21,116) |
Other current assets | (7,119) | 16,881 |
Trade accounts payable | 17,488 | 8,215 |
Accrued expenses | (24,606) | (27,273) |
Other - net | 1,413 | (1,749) |
Net cash flows provided by operating activities | 88,663 | 71,729 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | (12,875) | (10,009) |
Proceeds from disposal of fixed assets | 629 | 0 |
Other - net | (195) | (184) |
Net cash flows used in investing activities | (12,441) | (10,193) |
Cash flows from financing activities | ||
Dividends paid | (33,446) | (28,945) |
Proceeds from stock option exercises | 8,870 | 6,590 |
Repurchases of common stock | (50,797) | 0 |
Shares surrendered for tax withholding | (11,479) | (10,750) |
Settlement of foreign exchange contracts | 0 | 6,618 |
Other - net | (129) | 0 |
Net cash flows used in financing activities | (86,981) | (26,487) |
Effect of exchange rate changes on cash and cash equivalents | 482 | 1,974 |
Net increase (decrease) in cash | (10,277) | 37,023 |
Cash and cash equivalents at beginning of year | 466,407 | 375,950 |
Cash and cash equivalents at end of period | 456,130 | 412,973 |
Cash paid for: | ||
Interest | 323 | 355 |
Income taxes | 13,911 | 10,942 |
Significant non-cash activities: | ||
Capital expenditures for construction of new leased facility | $ 0 | $ 5,801 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The Condensed Consolidated Financial Statements of IDEX Corporation (“IDEX,” “we,” “our,” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) applicable to interim financial information and the instructions to Form 10-Q under the Securities Exchange Act of 1934, as amended. The statements are unaudited but include all adjustments, consisting only of recurring items, except as noted, that the Company considers necessary for a fair presentation of the information set forth herein. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the entire year. The Condensed Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth in this report should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases , which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The standard introduces a new lessee model that will require most leases to be recorded on the balance sheet and eliminates the required use of bright line tests in current U.S. GAAP for determining lease classification. In July 2018, the FASB issued the following standards which clarify ASU 2016-02 and have the same effective date as the original standard: ASU 2018-10, Codification Improvements to Topic 842 , Leases and ASU 2018-11, Leases (Topic 842): Targeted Improvements . ASU 2018-11 includes an option to not restate comparative periods in transition and elect to use the effective date of ASU 2016-02 as the date of initial application of transition. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements, which clarifies ASU 2016-02 and is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company adopted this standard on January 1, 2019 using the optional transition method provided by the FASB in ASU 2018-11. As we did not restate comparative periods, the adoption had no impact on our previously reported results. We elected to use the practical expedient that allowed us to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases as well as the practical expedient that allows lessees to treat the lease and non-lease components of leases as a single lease component for all asset classes. We also elected to account for short-term leases in accordance with Accounting Standards Codification (“ASC”) 842-20-25-2. The adoption of this standard had a material impact on our condensed consolidated balance sheet due to the recognition of right of use assets and lease liabilities. Upon adoption, we recognized right of use assets and lease liabilities of approximately $68 million that reflected the present value of future lease payments. The adoption of this standard did not have a material impact on our condensed consolidated results of operations or cash flows. See Note 13 for further information. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations and Dispositions [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures All of the Company’s acquisitions of businesses have been accounted for under ASC 805, Business Combinations . Accordingly, the accounts of the acquired companies, after adjustments to reflect the fair values assigned to assets and liabilities, have been included in the Company’s condensed consolidated financial statements from their respective dates of acquisition. The results of operations of the acquired companies have been included in the Company’s condensed consolidated results since the date of each acquisition. The Company incurred $0.3 million and $0.7 million of acquisition-related transaction costs in the three months ended March 31, 2019 and 2018 , respectively. These costs were recorded in Selling, general and administrative expenses and were related to completed transactions, pending transactions and potential transactions, including transactions that ultimately were not completed. 2018 Acquisition On July 23, 2018, the Company acquired Finger Lakes Instrumentation (“FLI”), a technology leader in the design, development and production of low-noise cooled CCD and high speed, high-sensitivity Scientific CMOS cameras for the astronomy and life science markets. Headquartered in Lima, NY, FLI operates in our Health & Sciences Technologies segment. FLI was acquired for an aggregate purchase price of $23.6 million , consisting of $20.2 million in cash and contingent consideration valued at $3.4 million as of the opening balance sheet date. The contingent consideration is based on the achievement of financial objectives during the 24 -month period following the close of the transaction. The entire purchase price was funded with cash on hand. Goodwill and intangible assets recognized as part of this transaction were $12.6 million and $7.9 million , respectively. Acquired intangible assets consist of trade names, customer relationships and unpatented technology. The goodwill recorded for the acquisition reflects the strategic fit, revenue and earnings growth potential of this business. The goodwill is deductible for tax purposes. The Company made an initial allocation of the purchase price for the FLI acquisition as of the acquisition date based on its understanding of the fair value of the acquired assets and assumed liabilities. These nonrecurring fair value measurements are classified as Level 3 in the fair value hierarchy. As the Company continues to obtain additional information about these assets and liabilities, and continues to learn more about the newly acquired business, we will refine the estimates of fair value and more accurately allocate the purchase price. Only items identified as of the acquisition date are considered for subsequent adjustment. The Company will make the appropriate adjustments to the purchase price allocation prior to the completion of the measurement period, as required. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments IDEX has three reportable business segments: Fluid & Metering Technologies (“FMT”), Health & Science Technologies (“HST”) and Fire & Safety/Diversified Products (“FSDP”). The Fluid & Metering Technologies segment designs, produces and distributes positive displacement pumps, flow meters, injectors, and other fluid-handling pump modules and systems and provides flow monitoring and other services for the food, chemical, general industrial, water and wastewater, agriculture and energy industries. The Health & Science Technologies segment designs, produces and distributes a wide range of precision fluidics, rotary lobe pumps, centrifugal and positive displacement pumps, roll compaction and drying systems used in beverage, food processing, pharmaceutical and cosmetics, pneumatic components and sealing solutions, including very high precision, low-flow rate pumping solutions required in analytical instrumentation, clinical diagnostics and drug discovery, high performance molded and extruded sealing components, biocompatible medical devices and implantables, air compressors used in medical, dental and industrial applications, optical components and coatings for applications in the fields of scientific research, defense, biotechnology, aerospace, telecommunications and electronics manufacturing, laboratory and commercial equipment used in the production of micro and nano scale materials, precision photonic solutions used in life sciences, research and defense markets and precision gear and peristaltic pump technologies that meet exacting original equipment manufacturer specifications. The Fire & Safety/Diversified Products segment designs, produces and distributes firefighting pumps, valves and controls, rescue tools, lifting bags and other components and systems for the fire and rescue industry, engineered stainless steel banding and clamping devices used in a variety of industrial and commercial applications and precision equipment for dispensing, metering and mixing colorants and paints used in a variety of retail and commercial businesses around the world. Information on the Company’s business segments is presented below based on the nature of products and services offered. The Company evaluates performance based on several factors, of which sales, operating income and operating margin are the primary financial measures. Intersegment sales are accounted for at fair value as if the sales were to third parties. Three Months Ended 2019 2018 Net sales Fluid & Metering Technologies External customers $ 242,336 $ 232,261 Intersegment sales 186 72 Total segment sales 242,522 232,333 Health & Science Technologies External customers 224,688 220,967 Intersegment sales 602 108 Total segment sales 225,290 221,075 Fire & Safety/Diversified Products External customers 155,207 159,096 Intersegment sales 952 77 Total segment sales 156,159 159,173 Intersegment elimination (1,740 ) (257 ) Total net sales $ 622,231 $ 612,324 Operating income Fluid & Metering Technologies $ 71,866 $ 66,166 Health & Science Technologies 54,154 51,806 Fire & Safety/Diversified Products 40,328 39,554 Corporate office (18,566 ) (20,843 ) Total operating income 147,782 136,683 Interest expense 10,921 11,000 Other (income) expense - net (140 ) (4,449 ) Income before income taxes $ 137,001 $ 130,132 March 31, December 31, Assets Fluid & Metering Technologies $ 1,140,025 $ 1,107,777 Health & Science Technologies 1,372,517 1,329,368 Fire & Safety/Diversified Products 820,226 806,075 Corporate office 218,692 230,637 Total assets $ 3,551,460 $ 3,473,857 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue IDEX is an applied solutions company specializing in the manufacture of fluid and metering technologies, health and science technologies and fire, safety and other diversified products built to customers’ specifications. The Company’s products include industrial pumps, compressors, flow meters, injectors, valves and related controls for use in a wide variety of process applications; precision fluidics solutions, including pumps, valves, degassing equipment, corrective tubing, fittings and complex manifolds, optical filters and specialty medical equipment and devices for use in life science applications; precision-engineered equipment for dispensing, metering and mixing paints; and engineered products for industrial and commercial markets, including fire and rescue, transportation equipment, oil and gas, electronics and communications. Revenue is recognized when control of the promised products or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for transferring those products or providing those services. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of the consideration is probable. We determine the appropriate revenue recognition for our contracts with customers by analyzing the type, terms and conditions of each contract or arrangement with a customer. Disaggregation of Revenue We have a comprehensive offering of products, including technologies, built to customers’ specifications that are sold in niche markets throughout the world. We disaggregate our revenue from contracts with customers by reporting unit and geographical region for each of our segments as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Revenue was attributed to geographic areas based on the location of the customer. The following tables present our revenue disaggregated by reporting unit and geographical region. Revenue by reporting unit for the three months ended March 31, 2019 and 2018 was as follows: Three Months Ended 2019 2018 Energy $ 39,398 $ 38,759 Valves 29,382 26,029 Water 61,132 58,840 Pumps 88,260 80,666 Agriculture 24,350 28,039 Intersegment elimination (186 ) (72 ) Fluid & Metering Technologies 242,336 232,261 Scientific Fluidics & Optics 107,308 99,507 Sealing Solutions 50,506 53,702 Gast 33,909 28,512 Micropump 8,755 9,298 Material Processing Technologies 24,812 30,056 Intersegment elimination (602 ) (108 ) Health & Science Technologies 224,688 220,967 Fire & Safety 99,448 96,212 BAND-IT 27,912 27,474 Dispensing 28,799 35,487 Intersegment elimination (952 ) (77 ) Fire & Safety/Diversified Products 155,207 159,096 Total net sales $ 622,231 $ 612,324 Revenue by geographical region for the three months ended March 31, 2019 and 2018 was as follows: Three Months Ended March 31, 2019 FMT HST FSDP IDEX U.S. $ 138,149 $ 99,051 $ 74,677 $ 311,877 North America, excluding U.S. 13,057 4,892 5,980 23,929 Europe 43,624 69,372 43,062 156,058 Asia 31,917 48,059 23,560 103,536 Other (1) 15,775 3,916 8,880 28,571 Intersegment elimination (186 ) (602 ) (952 ) (1,740 ) Total net sales $ 242,336 $ 224,688 $ 155,207 $ 622,231 Three Months Ended March 31, 2018 FMT HST FSDP IDEX U.S. $ 133,153 $ 93,808 $ 72,497 $ 299,458 North America, excluding U.S. (2) — — — — Europe 43,599 73,779 47,119 164,497 Asia 26,398 44,548 24,233 95,179 Other (1) 29,183 8,940 15,324 53,447 Intersegment elimination (72 ) (108 ) (77 ) (257 ) Total net sales $ 232,261 $ 220,967 $ 159,096 $ 612,324 (1) Other includes: South America, Middle East, Australia and Africa. (2) Revenue from North America, excluding U.S. of $13,588 from FMT, $3,320 from HST and $7,609 from FSDP were included in Other for the three months ended March 31, 2018. Contract Balances The timing of revenue recognition, billings and cash collections results in customer receivables, advance payments and billings in excess of revenue recognized. Customer receivables include amounts billed and currently due from customers as well as unbilled amounts (contract assets) and are included in Receivables on our Condensed Consolidated Balance Sheets. Amounts are billed in accordance with contractual terms or as work progresses in accordance with contractual terms. Unbilled amounts arise when the timing of billing differs from the timing of revenue recognized, such as when contract provisions require specific milestones to be met before a customer can be billed. Unbilled amounts primarily relate to performance obligations satisfied over time when the cost-to-cost method is utilized and the revenue recognized exceeds the amount billed to the customer as there is not yet a right to payment in accordance with contractual terms. Unbilled amounts are recorded as a contract asset when the revenue associated with the contract is recognized prior to billing and derecognized when billed in accordance with the terms of the contract. Customer receivables are recorded at face amounts less an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses as a result of customers’ inability to make required payments. Management evaluates the aging of the customer receivable balances, the financial condition of its customers, historical trends and the time outstanding of specific balances to estimate the amount of customer receivables that may not be collected in the future and records the appropriate provision. The composition of Customer receivables was as follows: March 31, December 31, Billed receivables $ 323,723 $ 299,227 Unbilled receivables 12,080 14,492 Total customer receivables $ 335,803 $ 313,719 Advance payments and billings in excess of revenue recognized are included in Deferred revenue which is classified as current or noncurrent based on the timing of when we expect to recognize the revenue. The current portion is included in Accrued expenses and the noncurrent portion is included in Other noncurrent liabilities on our Condensed Consolidated Balance Sheets. Advance payments and billings in excess of revenue recognized represent contract liabilities and are recorded when customers remit contractual cash payments in advance of us satisfying performance obligations under contractual arrangements, including those with performance obligations satisfied over time. Billings in excess of revenue recognized primarily relate to performance obligations satisfied over time when the cost-to-cost method is utilized and revenue cannot yet be recognized as the Company has not completed the corresponding performance obligation. We generally receive advance payments from customers related to maintenance services which we recognize ratably over the service term. Contract liabilities are derecognized when revenue is recognized and the performance obligation is satisfied. The composition of Deferred revenue was as follows: March 31, December 31, Deferred revenue - current $ 12,392 $ 8,055 Deferred revenue - noncurrent 2,789 3,027 Total deferred revenue $ 15,181 $ 11,082 Performance Obligations A performance obligation is a promise in a contract to transfer a distinct product or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For our contracts that require complex design, manufacturing and installation activities that are not separately identifiable from other promises in the contract and, therefore, not distinct, the entire contract is accounted for as a single performance obligation. For our contracts that include distinct products or services that are substantially the same and have the same pattern of transfer to the customer over time, they are recognized as a series of distinct products or services. Certain of our contracts have multiple performance obligations for which we allocate the transaction price to each performance obligation using an estimate of the standalone selling price of each distinct product or service in the contract. For product sales, each product sold to a customer generally represents a distinct performance obligation. In such cases, the observable standalone sales are used to determine the standalone selling price. In certain cases, we may be required to estimate standalone selling price using the expected cost plus margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct product or service. Our performance obligations are satisfied at a point in time or over time as work progresses. Performance obligations are supported by contracts with customers that provide a framework for the nature of the distinct products or services or bundle of products and services. We define service revenue as revenue from activities that are not associated with the design, development or manufacture of a product or the delivery of a software license. Revenue from products and services transferred to customers at a point in time approximated 96% and 95% in the three months ended March 31, 2019 and 2018 , respectively. Revenue recognized at a point in time relates to the majority of our product sales. Revenue on these contracts is recognized when obligations under the terms of the contract with our customer are satisfied. Generally, this occurs with the transfer of control of the asset, which is in line with shipping terms. Revenue from products and services transferred to customers over time approximated 4% and 5% in the three months ended March 31, 2019 and 2018 , respectively. Revenue earned by certain business units within the Water, Energy, Material Processing Technologies (“MPT”) and Dispensing reporting units is recognized over time because control transfers continuously to our customers. When accounting for over-time contracts, we use an input measure to determine the extent of progress towards completion of the performance obligation. For certain business units within the Water, Energy and MPT reporting units, revenue is recognized over time as work is performed based on the relationship between actual costs incurred to date for each contract and the total estimated costs for such contract at completion of the performance obligation (i.e. the cost-to-cost method). We believe this measure of progress best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Incurred cost represents work performed, which corresponds with the transfer of control to the customer. Contract costs include labor, material and overhead. Contract estimates are based on various assumptions to project the outcome of future events. These assumptions include labor productivity and availability; the complexity of the work to be performed; the cost and availability of materials; the performance of subcontractors; and the availability and timing of funding from the customer. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. For certain business units within the Energy and Dispensing reporting units, revenue is recognized ratably over the contract term. As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our estimates regularly. Due to uncertainties inherent in the estimation process, it is reasonably possible that completion costs, including those arising from contract penalty provisions and final contract settlements, will be revised. Such revisions to costs and income are recognized in the period in which the revisions are determined as a cumulative catch-up adjustment. The impact of the adjustment on profit recorded to date on a contract is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance are recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize provisions for estimated losses on uncompleted contracts in the period in which such losses are determined. The Company records allowances for discounts, product returns and customer incentives at the time of sale as a reduction of revenue as such allowances can be reliably estimated based on historical experience and known trends. The Company also offers product warranties (primarily assurance-type) and accrues its estimated exposure for warranty claims at the time of sale based upon the length of the warranty period, warranty costs incurred and any other related information known to the Company. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Earnings per common share (“EPS”) is computed by dividing net income by the weighted average number of shares of common stock (basic) plus common stock equivalents outstanding (diluted) during the period. Common stock equivalents consist of stock options, which have been included in the calculation of weighted average shares outstanding using the treasury stock method, restricted stock and performance share units. ASC 260, Earnings Per Share, concludes that all outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends participate in undistributed earnings with common shareholders. If awards are considered participating securities, the Company is required to apply the two-class method of computing basic and diluted earnings per share. The Company has determined that its outstanding shares of restricted stock are participating securities. Accordingly, EPS was computed using the two-class method prescribed by ASC 260. Basic weighted average shares outstanding reconciles to diluted weighted average shares outstanding as follows: Three Months Ended 2019 2018 Basic weighted average common shares outstanding 75,442 76,419 Dilutive effect of stock options, restricted stock and performance share units 842 1,320 Diluted weighted average common shares outstanding 76,284 77,739 Options to purchase approximately 0.6 million and 0.3 million shares of common stock for the three months ended March 31, 2019 and 2018 , respectively, were not included in the computation of diluted EPS because the effect of their inclusion would have been antidilutive. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories as of March 31, 2019 and December 31, 2018 were: March 31, December 31, Raw materials and component parts $ 187,299 $ 178,805 Work in process 44,780 37,495 Finished goods 66,248 63,695 Total inventories $ 298,327 $ 279,995 Inventories are stated at the lower of cost or net realizable value. Cost, which includes material, labor and factory overhead, is determined on a FIFO basis. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the three months ended March 31, 2019 , by reportable business segment, were as follows: FMT HST FSDP IDEX Balance at December 31, 2018 $ 581,041 $ 745,357 $ 371,557 $ 1,697,955 Foreign currency translation (1,796 ) (49 ) (1,890 ) (3,735 ) Acquisition adjustments — 188 — 188 Balance at March 31, 2019 $ 579,245 $ 745,496 $ 369,667 $ 1,694,408 ASC 350, Goodwill and Other Intangible Assets, requires that goodwill be tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. In the first three months of 2019 , there were no events or circumstances that would have required an interim impairment test. Annually, on October 31, goodwill and other acquired intangible assets with indefinite lives are tested for impairment. Based on the results of our annual impairment test at October 31, 2018 , all reporting units had fair values in excess of their carrying values. The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset at March 31, 2019 and December 31, 2018 : At March 31, 2019 At December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Weighted Average Life Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets: Patents $ 6,528 $ (4,839 ) $ 1,689 12 $ 6,468 $ (4,693 ) $ 1,775 Trade names 115,788 (59,109 ) 56,679 16 115,899 (57,227 ) 58,672 Customer relationships 254,923 (90,430 ) 164,493 14 256,202 (85,652 ) 170,550 Unpatented technology 96,976 (38,172 ) 58,804 12 96,922 (35,685 ) 61,237 Other 700 (525 ) 175 10 700 (507 ) 193 Total amortized intangible assets 474,915 (193,075 ) 281,840 476,191 (183,764 ) 292,427 Indefinite-lived intangible assets: Banjo trade name 62,100 — 62,100 62,100 — 62,100 Akron Brass trade name 28,800 — 28,800 28,800 — 28,800 Total intangible assets $ 565,815 $ (193,075 ) $ 372,740 $ 567,091 $ (183,764 ) $ 383,327 On June 22, 2018, the Company acquired the intellectual property assets of Phantom Controls (“Phantom”) for cash consideration of $4.0 million . The operational capabilities and innovative pump operation of Phantom’s technology complements our existing water-flow expertise of Hale, Akron Brass and Class 1 to improve fire ground safety and reduce operational complexity during mission critical response. The Banjo trade name and the Akron Brass trade name are indefinite-lived intangible assets which are tested for impairment on an annual basis in accordance with ASC 350 or more frequently if events or changes in circumstances indicate that the assets might be impaired. In the first three months of 2019 , there were no events or circumstances that would have required an interim impairment test. The Company uses the relief-from-royalty method, a form of the income approach, to determine the fair value of these trade names. The relief-from-royalty method is dependent on a number of significant management assumptions, including estimates of revenues, royalty rates and discount rates. Amortization of intangible assets was $9.0 million and $10.9 million for the three months ended March 31, 2019 and 2018 , respectively. Based on the intangible asset balances as of March 31, 2019 , amortization expense is expected to approximate $26.9 million for the remaining nine months of 2019 , $35.1 million in 2020 , $33.9 million in 2021 , $32.1 million in 2022 and $29.0 million in 2023 . |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses The components of accrued expenses as of March 31, 2019 and December 31, 2018 were: March 31, December 31, Payroll and related items $ 60,351 $ 78,944 Management incentive compensation 6,340 25,321 Income taxes payable 30,892 23,844 Insurance 8,802 10,422 Warranty 5,230 5,303 Deferred revenue 12,392 8,055 Lease liability 13,194 — Restructuring 4,026 6,170 Liability for uncertain tax positions 980 980 Accrued interest 10,434 1,759 Other 25,557 26,738 Total accrued expenses $ 178,198 $ 187,536 |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | Other Noncurrent Liabilities The components of other noncurrent liabilities as of March 31, 2019 and December 31, 2018 were: March 31, December 31, Pension and retiree medical obligations $ 76,186 $ 80,667 Transition tax payable 17,127 17,127 Liability for uncertain tax positions 3,218 3,183 Deferred revenue 2,789 3,027 Liability for construction of new leased facility — 11,616 Lease liability 54,968 — Contingent consideration for acquisition 3,375 3,375 Other 20,000 19,219 Total other noncurrent liabilities $ 177,663 $ 138,214 |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Borrowings at March 31, 2019 and December 31, 2018 consisted of the following: March 31, December 31, Revolving Facility $ — $ — 4.50% Senior Notes, due December 2020 300,000 300,000 4.20% Senior Notes, due December 2021 350,000 350,000 3.20% Senior Notes, due June 2023 100,000 100,000 3.37% Senior Notes, due June 2025 100,000 100,000 Other borrowings 931 1,078 Total borrowings 850,931 851,078 Less current portion 455 483 Less deferred debt issuance costs 1,441 1,593 Less unaccreted debt discount 598 667 Total long-term borrowings $ 848,437 $ 848,335 On June 13, 2016, the Company completed a private placement of a $100 million aggregate principal amount of 3.20% Senior Notes due June 13, 2023 and a $100 million aggregate principal amount of 3.37% Senior Notes due June 13, 2025 (collectively, the “Notes”) pursuant to a Note Purchase Agreement dated June 13, 2016 (the “Purchase Agreement”). Each series of Notes bears interest at the stated amount per annum, which is payable semi-annually in arrears on each June 13 th and December 13 th . The Notes are unsecured obligations of the Company and rank pari passu in right of payment with all of the Company’s other unsecured, unsubordinated debt. The Company may at any time prepay all, or any portion of the Notes, provided that such portion is greater than 5% of the aggregate principal amount of the Notes then outstanding. In the event of a prepayment, the Company will pay an amount equal to par plus accrued interest plus a make-whole amount. In addition, the Company may repurchase the Notes by making an offer to all holders of the Notes, subject to certain conditions. The Purchase Agreement contains certain covenants that restrict the Company’s ability to, among other things, transfer or sell assets, incur indebtedness, create liens, transact with affiliates and engage in certain mergers or consolidations or other change of control transactions. In addition, the Company must comply with a leverage ratio and interest coverage ratio, as further described below, and the Purchase Agreement also limits the outstanding principal amount of priority debt that may be incurred by the Company to 15% of consolidated assets. The Purchase Agreement provides for customary events of default. In the case of an event of default arising from specified events of bankruptcy or insolvency, all of the outstanding Notes will become due and payable immediately without further action or notice. In the case of a payment event of default, any holder of the Notes affected thereby may declare all of the Notes held by it due and payable immediately. In the case of any other event of default, a majority of the holders of the Notes may declare all of the Notes to be due and payable immediately. On June 23, 2015, the Company entered into a credit agreement (the “Credit Agreement”) along with certain of its subsidiaries, as borrowers (the “Borrowers”), Bank of America, N.A., as administrative agent, swing line lender and an issuer of letters of credit, with other agents party thereto. The Credit Agreement consists of a revolving credit facility (the “Revolving Facility”) in an aggregate principal amount of $700 million , with a final maturity date of June 23, 2020 . The maturity date may be extended under certain conditions for an additional one -year term. Up to $75 million of the Revolving Facility is available for the issuance of letters of credit. Additionally, up to $50 million of the Revolving Facility is available to the Company for swing line loans, available on a same-day basis. Proceeds of the Revolving Facility are available for use by the Borrowers for acquisitions, working capital and other general corporate purposes, including refinancing existing debt of the Company and its subsidiaries. The Company may request increases in the lending commitments under the Credit Agreement, but the aggregate lending commitments pursuant to such increases may not exceed $350 million . The Company has the right, subject to certain conditions set forth in the Credit Agreement, to designate certain foreign subsidiaries of the Company as borrowers under the Credit Agreement. In connection with any such designation, the Company is required to guarantee the obligations of any such subsidiaries. Borrowings under the Credit Agreement bear interest at either an alternate base rate or an adjusted LIBOR rate plus, in each case, an applicable margin. Such applicable margin is based on the Company’s senior, unsecured long-term debt rating and can range from .005% to 1.50% . Based on the Company’s credit rating at March 31, 2019 , the applicable margin was 1.10% . Interest is payable (a) in the case of base rate loans, quarterly, and (b) in the case of LIBOR rate loans, on the maturity date of the borrowing or quarterly from the effective date for borrowings exceeding three months. The Credit Agreement requires payment to the lenders of a facility fee based upon (a) the amount of the lenders’ commitments under the credit facility from time to time and (b) the applicable corporate credit ratings of the Company. Voluntary prepayments of any loans and voluntary reductions of the unutilized portion of the commitments under the credit facility are permissible without penalty, subject to break funding payments and minimum notice and minimum reduction amount requirements. The negative covenants include, among other things, limitations (each of which is subject to customary exceptions for financings of this type) on our ability to grant liens; enter into transactions resulting in fundamental changes (such as mergers or sales of all or substantially all of the assets of the Company); restrict subsidiary dividends or other subsidiary distributions; enter into transactions with the Company’s affiliates; and incur certain additional subsidiary debt. The Credit Agreement also contains customary events of default (subject to grace periods, as appropriate) including among others: nonpayment of principal, interest or fees; breach of the representations or warranties in any material respect; breach of the financial, affirmative or negative covenants; payment default on, or acceleration of, other material indebtedness; bankruptcy or insolvency; material judgments entered against the Company or any of its subsidiaries; certain specified events under the Employee Retirement Income Security Act of 1974, as amended; certain changes in control of the Company; and the invalidity or unenforceability of the Credit Agreement or other documents associated with the Credit Agreement. At March 31, 2019 , there was no balance outstanding under the Revolving Facility and $8.7 million of outstanding letters of credit, resulting in a net available borrowing capacity under the Revolving Facility at March 31, 2019 of approximately $691.3 million . There are two key financial covenants that the Company is required to maintain in connection with the Revolving Facility and the Notes, a minimum interest coverage ratio of 3.0 to 1 and a maximum leverage ratio of 3.50 to 1 , which is the ratio of the Company’s consolidated total debt to its consolidated EBITDA. At March 31, 2019 , the Company was in compliance with both of these financial covenants. There are no financial covenants relating to the 4.5% Senior Notes or 4.2% Senior Notes; however, both are subject to cross-default provisions. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company enters into cash flow hedges from time to time to reduce the exposure to variability in certain expected future cash flows. The types of cash flow hedges the Company enters into include foreign currency exchange contracts designed to minimize the earnings impact on certain intercompany loans and interest rate exchange agreements that effectively convert a portion of floating-rate debt to fixed-rate debt and are designed to reduce the impact of interest rate changes on future interest expense. The effective portion of gains or losses on interest rate exchange agreements is reported in accumulated other comprehensive income (loss) in shareholders’ equity and reclassified into net income in the same period or periods in which the hedged transaction affects net income. The remaining gain or loss in excess of the cumulative change in the present value of future cash flows or the hedged item, if any, is recognized in net income during the period of change. See Note 15 for the amount of loss reclassified into net income for interest rate contracts for the three months ended March 31, 2019 and 2018 . As of March 31, 2019 , the Company did not have any interest rate contracts outstanding. In 2010 and 2011, the Company entered into two separate forward starting interest rate exchange agreements in anticipation of the issuance of the 4.2% Senior Notes and the 4.5% Senior Notes. The Company cash settled these two interest rate contracts in 2010 and 2011 for a total of $68.9 million , which is being amortized into interest expense over the 10 year terms of the respective debt instruments. Approximately $6.3 million of the pre-tax amount included in Accumulated other comprehensive income (loss) in shareholders’ equity at March 31, 2019 will be recognized in net income over the next 12 months as the underlying hedged transactions are realized. At March 31, 2018 , the Company had outstanding foreign currency exchange contracts with a combined notional value of €180 million that were not designated as hedges for accounting purposes and, as a result, the change in the fair value of these foreign currency exchange contracts and the corresponding foreign currency gain or loss on the revaluation of the intercompany loans were both recorded through earnings within Other (income) expense - net in the Condensed Consolidated Statements of Operations each period as incurred. During the three months ended March 31, 2018 , the Company recorded a gain of $1.2 million within Other (income) expense - net in the Condensed Consolidated Statements of Operations related to these foreign currency exchange contracts. During the three months ended March 31, 2018 , the Company recorded a foreign currency transaction loss of $1.2 million within Other (income) expense - net in the Condensed Consolidated Statements of Operations related to these intercompany loans. Fair values relating to derivative financial instruments reflect the estimated amounts that the Company would receive or pay to sell or buy the contracts based on quoted market prices of comparable contracts at each balance sheet date. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures, defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The standard utilizes a fair value hierarchy that prioritizes the inputs to the valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: • Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: Inputs, other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. The following table summarizes the basis used to measure the Company’s financial assets (liabilities) at fair value on a recurring basis in the balance sheets at March 31, 2019 and December 31, 2018 : Basis of Fair Value Measurements Balance at Level 1 Level 2 Level 3 Available for sale securities $ 8,562 $ 8,562 $ — $ — Contingent consideration 3,375 — — 3,375 Basis of Fair Value Measurements Balance at Level 1 Level 2 Level 3 Available for sale securities $ 7,598 $ 7,598 $ — $ — Contingent consideration 3,375 — — 3,375 There were no transfers of assets or liabilities between Level 1 and Level 2 during the three months ended March 31, 2019 or the year ended December 31, 2018 . The Company utilized a Monte Carlo Simulation during the earn-out period to determine the fair value of the contingent consideration associated with the acquisition of FLI. The $3.4 million represents management’s best estimate of the liability, based on a range of outcomes of FLI’s two-year operating results, from August 1, 2018 to July 31, 2020, and is expected to be paid during the third quarter of 2020. As of March 31, 2019 , the $3.4 million of contingent consideration is included in Other noncurrent liabilities on the Condensed Consolidated Balance Sheets. The carrying values of our cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair values because of the short term nature of these instruments. At March 31, 2019 , the fair value of the outstanding indebtedness under our 3.2% Senior Notes, 3.37% Senior Notes, 4.5% Senior Notes, 4.2% Senior Notes and other borrowings based on quoted market prices and current market rates for debt with similar credit risk and maturity was approximately $860.6 million compared to the carrying value of $850.3 million . At December 31, 2018, the fair value of the outstanding indebtedness under our 3.2% Senior Notes, 3.37% Senior Notes, 4.5% Senior Notes, 4.2% Senior Notes and other borrowings based on quoted market prices and current market rates for debt with similar credit risk and maturity was approximately $851.5 million compared to the carrying value of $850.4 million . These fair value measurements are classified as Level 2 within the fair value hierarchy since they are determined based upon significant inputs observable in the market, including interest rates on recent financing transactions to entities with a credit rating similar to ours. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Lessee Disclosure [Abstract] | |
Leases | Leases The Company leases certain office facilities, warehouses, manufacturing plants, equipment (which includes both office and plant equipment) and vehicles under operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Certain leases include one or more options to renew. The exercise of lease renewal options is at the Company’s sole discretion. There are currently no renewal periods included in any of the leases’ respective lease terms as they are not reasonably certain of being exercised. The Company does not have any material purchase options. Certain of our lease agreements have rental payments that are adjusted periodically for inflation or that are based on usage. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Supplemental balance sheet information related to leases as of March 31, 2019 was as follows: Balance Sheet Caption March 31, Operating leases: Building right-of-use assets - net Other noncurrent assets $ 59,624 Equipment right-of-use assets - net Other noncurrent assets 6,861 Total right-of-use assets - net $ 66,485 Operating leases: Current lease liabilities Accrued expenses $ 13,194 Noncurrent lease liabilities Other noncurrent liabilities 54,968 Total lease liabilities $ 68,162 As part of the adoption of the new lease standard, the Company derecognized its liability for the construction of a new leased facility that was recorded in Other noncurrent liabilities on the Condensed Consolidated Balance Sheets and recorded it as a right of use asset in Other noncurrent assets on the Condensed Consolidated Balance Sheets with a corresponding lease liability in Accured expenses and Other noncurrent liabilities on the Condensed Consolidated Balance Sheets. The components of lease cost for the three months ended March 31, 2019 were as follows: Three Months Ended Operating lease cost (1) $ 5,375 Variable lease cost 593 Total lease expense $ 5,968 (1) Includes short-term leases, which are immaterial. Supplemental cash flow information related to leases for the three months ended March 31, 2019 was as follows: Three Months Ended Cash paid for amounts included in the measurement of operating lease liabilities $ 5,539 Right-of-use assets obtained in exchange for new operating lease liabilities 1,809 Other supplemental information related to leases as of March 31, 2019 was as follows: Lease Term and Discount Rate March 31, Weighted-average remaining lease term (years): Operating leases - building and equipment 8.39 Operating leases - vehicles 1.11 Weighted-average discount rate: Operating leases - building and equipment 4.02 % Operating leases - vehicles 3.23 % The Company uses the implicit rate to determine the present value of the lease payments. If the implicit rate is not defined in the lease, the Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company used either the implicit rate or the incremental borrowing rate based on the information available at the transition date to determine the present value of the lease payments as of January 1, 2019. Total lease liabilities at March 31, 2019 have scheduled maturities as follows: Maturity of Lease Liabilities Operating Leases (1) 2019 (excluding the three months ended March 31, 2019) $ 11,276 2020 13,158 2021 11,161 2022 8,193 2023 6,626 Thereafter 30,123 Total lease payments 80,537 Less: Imputed interest (12,375 ) Present value of lease liabilities $ 68,162 (1) Excludes $25.2 million of legally binding minimum lease payments for leases signed but not yet commenced. Total lease liabilities at December 31, 2018 had scheduled maturities as follows: Maturity of Lease Liabilities Operating Leases 2019 $ 17,509 2020 13,162 2021 10,516 2022 7,979 2023 6,535 Thereafter 29,658 Total lease payments $ 85,359 |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the year ended December 31, 2018, the Company recorded accruals for restructuring costs incurred as part of restructuring initiatives that supported the implementation of key strategic efforts designed to facilitate long-term, sustainable growth through cost reduction actions, primarily consisting of employee reductions and facility rationalization. The restructuring costs included severance benefits and exit costs which were included in Restructuring expenses in the Condensed Consolidated Statements of Operations. Severance costs primarily consisted of severance benefits through payroll continuation, COBRA subsidies, outplacement services, conditional separation costs and employer tax liabilities, while exit costs primarily consisted of asset disposals or impairments and lease exit and contract termination costs. Restructuring accruals of $4.0 million and $6.2 million at March 31, 2019 and December 31, 2018 , respectively, are recorded in Accrued expenses on the Condensed Consolidated Balance Sheets. Severance benefits are expected to be paid by the end of the year using cash from operations. The changes in the restructuring accrual for the three months ended March 31, 2019 are as follows: Restructuring Balance at January 1, 2019 $ 6,170 Payments, utilization and other (2,144 ) Balance at March 31, 2019 $ 4,026 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The components of Other comprehensive income (loss) are as follows: Three Months Ended Three Months Ended Pre-tax Tax Net of tax Pre-tax Tax Net of tax Cumulative translation adjustment $ (3,281 ) $ — $ (3,281 ) $ 27,578 $ — $ 27,578 Pension and other postretirement adjustments 1,700 (438 ) 1,262 1,918 (505 ) 1,413 Reclassification adjustments for derivatives 1,588 (361 ) 1,227 1,632 (371 ) 1,261 Total other comprehensive income (loss) $ 7 $ (799 ) $ (792 ) $ 31,128 $ (876 ) $ 30,252 The following table summarizes the amounts reclassified from accumulated other comprehensive income (loss) to net income during the three months ended March 31, 2019 and 2018 : Three Months Ended 2019 2018 Income Statement Caption Pension and other postretirement plans: Amortization of service cost $ 1,700 $ 1,918 Other (income) expense - net Total before tax 1,700 1,918 Provision for income taxes (438 ) (505 ) Total net of tax $ 1,262 $ 1,413 Derivatives: Reclassification adjustments $ 1,588 $ 1,632 Interest expense Total before tax 1,588 1,632 Provision for income taxes (361 ) (371 ) Total net of tax $ 1,227 $ 1,261 The Company recognizes the service cost component in both Selling, general and administrative expenses and Cost of sales in the Condensed Consolidated Statements of Operations depending on the functional area of the underlying employees included in the plans. |
Common and Preferred Stock
Common and Preferred Stock | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Common and Preferred Stock | Common and Preferred Stock On December 1, 2015 , the Company’s Board of Directors approved an increase of $300.0 million in the authorized level of repurchases of common stock. This followed the prior Board of Directors approved repurchase authorization of $400.0 million that was announced by the Company on November 6, 2014. These authorizations have no expiration date. Repurchases under the program will be funded with future cash flow generation or borrowings available under the Revolving Facility. During the three months ended March 31, 2019 , the Company repurchased a total of 370 thousand shares at a cost of $51.7 million , of which $0.9 million was settled in April 2019 . The Company did not repurchase any shares during the three months ended March 31, 2018 . As of March 31, 2019 , the amount of share repurchase authorization remaining was $325.3 million . At March 31, 2019 and December 31, 2018 , the Company had 150 million shares of authorized common stock, with a par value of $.01 per share, and 5 million shares of authorized preferred stock, with a par value of $.01 per share. No preferred stock was outstanding at March 31, 2019 or December 31, 2018 . |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company typically grants equity awards annually at its regularly scheduled first quarter meeting of the Compensation Committee of the Board of Directors. Stock Options Stock options generally vest ratably over four years. Weighted average option fair values and assumptions for the periods specified are disclosed below. The fair value of each option grant was estimated on the date of the grant using the Binomial lattice option pricing model. Three Months Ended 2019 2018 Weighted average fair value of grants $35.17 $37.96 Dividend yield 1.18% 1.07% Volatility 24.79% 28.49% Risk-free interest rate 2.53% - 3.05% 2.01% - 3.17% Expected life (in years) 5.87 5.78 Total compensation cost for stock options is as follows: Three Months Ended 2019 2018 Cost of goods sold $ 192 $ 206 Selling, general and administrative expenses 2,540 2,524 Total expense before income taxes 2,732 2,730 Income tax benefit (368 ) (470 ) Total expense after income taxes $ 2,364 $ 2,260 A summary of the Company’s stock option activity as of March 31, 2019 , and changes during the three months ended March 31, 2019 , are presented in the following table: Stock Options Shares Weighted Average Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2019 1,714,003 $ 85.08 6.70 $ 74,191,783 Granted 332,625 144.83 Exercised (131,565 ) 67.42 Forfeited (44,168 ) 108.13 Outstanding at March 31, 2019 1,870,895 $ 96.40 7.12 $ 103,532,580 Vested and expected to vest as of March 31, 2019 1,747,058 $ 94.14 6.99 $ 100,638,073 Exercisable at March 31, 2019 1,023,778 $ 75.01 5.74 $ 78,549,384 Restricted Stock Restricted stock awards generally cliff vest after three years for employees and non-employee directors. Unvested restricted stock carries dividend and voting rights and the sale of the shares is restricted prior to the date of vesting. A summary of the Company’s restricted stock activity as of March 31, 2019 , and changes during the three months ended March 31, 2019 , are presented as follows: Restricted Stock Shares Weighted-Average Unvested at January 1, 2019 148,041 $ 101.50 Granted 32,945 144.25 Vested (34,952 ) 74.72 Forfeited (3,165 ) 128.71 Unvested at March 31, 2019 142,869 $ 117.30 Dividends are paid on restricted stock awards whose fair value is equal to the market price of the Company’s stock at the date of the grant. Total compensation cost for restricted shares is as follows: Three Months Ended 2019 2018 Cost of goods sold $ 138 $ 156 Selling, general and administrative expenses 1,288 1,289 Total expense before income taxes 1,426 1,445 Income tax benefit (275 ) (257 ) Total expense after income taxes $ 1,151 $ 1,188 Cash-Settled Restricted Stock The Company also maintains a cash-settled share based compensation plan for certain employees. Cash-settled restricted stock awards generally cliff vest after three years. A summary of the Company’s unvested cash-settled restricted stock activity as of March 31, 2019 , and changes during the three months ended March 31, 2019 , are presented in the following table: Cash-Settled Restricted Stock Shares Weighted-Average Unvested at January 1, 2019 88,225 $ 126.26 Granted 24,305 144.74 Vested (27,900 ) 144.12 Forfeited (3,625 ) 151.74 Unvested at March 31, 2019 81,005 $ 151.74 Dividend equivalents are paid on certain cash-settled restricted stock awards. Total compensation cost for cash-settled restricted stock is as follows: Three Months Ended 2019 2018 Cost of goods sold $ 500 $ 413 Selling, general and administrative expenses 1,530 1,204 Total expense before income taxes 2,030 1,617 Income tax benefit (187 ) (159 ) Total expense after income taxes $ 1,843 $ 1,458 Performance Share Units Weighted average performance share unit fair values and assumptions for the period specified are disclosed below. The performance share units are market condition awards and have been assessed at fair value on the date of grant using a Monte Carlo simulation model. Three Months Ended 2019 2018 Weighted average fair value of grants $203.06 $216.59 Dividend yield —% —% Volatility 19.08% 17.42% Risk-free interest rate 2.53% 2.40% Expected life (in years) 2.84 2.85 A summary of the Company’s performance share unit activity as of March 31, 2019 , and changes during the three months ended March 31, 2019 , are presented in the following table: Performance Share Units Shares Weighted-Average Unvested at January 1, 2019 111,155 $ 142.42 Granted 50,255 203.06 Vested — — Forfeited (8,970 ) 162.86 Unvested at March 31, 2019 152,440 $ 175.87 On December 31, 2018 , 69,995 performance share units vested. Based on the Company’s relative total shareholder return rank during the three year period ended December 31, 2018 , the Company achieved a 250% payout factor and issued 174,994 common shares in February 2019 . Total compensation cost for performance share units is as follows: Three Months Ended 2019 2018 Cost of goods sold $ — $ — Selling, general and administrative expenses 1,372 1,860 Total expense before income taxes 1,372 1,860 Income tax benefit (48 ) (317 ) Total expense after income taxes $ 1,324 $ 1,543 The Company’s policy is to recognize compensation cost on a straight-line basis, assuming forfeitures, over the requisite service period for the entire award. Classification of stock compensation cost within the Condensed Consolidated Statements of Operations is consistent with classification of cash compensation for the same employees. As of March 31, 2019 , there was $19.7 million of total unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 1.6 years, $7.5 million of total unrecognized compensation cost related to restricted stock that is expected to be recognized over a weighted-average period of 1.2 years, $5.5 million of total unrecognized compensation cost related to cash-settled restricted shares that is expected to be recognized over a weighted-average period of 1.2 years and $13.5 million of total unrecognized compensation cost related to performance share units that is expected to be recognized over a weighted-average period of 1.2 years. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The Company sponsors several qualified and nonqualified defined benefit and defined contribution pension plans and other postretirement plans for its employees. The following tables provide the components of net periodic benefit cost for its major defined benefit plans and its other postretirement plans. Pension Benefits Three Months Ended March 31, 2019 2018 U.S. Non-U.S. U.S. Non-U.S. Service cost $ 208 $ 464 $ 254 $ 545 Interest cost 764 365 653 361 Expected return on plan assets (801 ) (264 ) (983 ) (290 ) Net amortization 487 284 685 330 Net periodic benefit cost $ 658 $ 849 $ 609 $ 946 Other Postretirement Benefits Three Months Ended March 31, 2019 2018 Service cost $ 140 $ 168 Interest cost 212 203 Net amortization (159 ) (184 ) Net periodic benefit cost $ 193 $ 187 The Company previously disclosed in its financial statements for the year ended December 31, 2018 , that it expected to contribute approximately $0.6 million to its defined benefit plans and $1.1 million to its other postretirement benefit plans in 2019 . During the first three months of 2019 , the Company contributed a total of $0.1 million to fund these plans. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings The Company and certain of its subsidiaries are involved in pending and threatened legal, regulatory and other proceedings arising in the ordinary course of business. These proceedings may pertain to matters such as product liability or contract disputes, and may also involve governmental inquiries, inspections, audits or investigations relating to issues such as tax matters, intellectual property, environmental, health and safety issues, governmental regulations, employment and other matters. Although the results of such legal proceedings cannot be predicted with certainty, the Company believes that the ultimate disposition of these matters will not have a material adverse effect, individually or in the aggregate, on the Company’s business, financial condition, results of operations or cash flows. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s provision for income taxes is based upon estimated annual tax rates for the year applied to federal, state and foreign income. The provision for income taxes decreased to $26.7 million for the three months ended March 31, 2019 from $31.2 million in the same period of 2018 . The effective tax rate decreased to 19.5% for the three months ended March 31, 2019 compared to 24.0% in the same period of 2018 due to an increase in foreign tax credits as a result of U.S. Treasury proposed regulations issued related to Global Intangible Low-Taxed Income (“GILTI”), discrete income tax expense in the first quarter of 2018 related to IRS Revenue Procedure 2018-17 and IRS Notice 2018-26 as well as the mix of global pre-tax income among jurisdictions. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. Due to the potential for resolution of federal, state and foreign examinations and the expiration of various statutes of limitation, it is reasonably possible that the Company’s gross unrecognized tax benefits balance may change within the next twelve months by a range of zero to $1.0 million . |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases , which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The standard introduces a new lessee model that will require most leases to be recorded on the balance sheet and eliminates the required use of bright line tests in current U.S. GAAP for determining lease classification. In July 2018, the FASB issued the following standards which clarify ASU 2016-02 and have the same effective date as the original standard: ASU 2018-10, Codification Improvements to Topic 842 , Leases and ASU 2018-11, Leases (Topic 842): Targeted Improvements . ASU 2018-11 includes an option to not restate comparative periods in transition and elect to use the effective date of ASU 2016-02 as the date of initial application of transition. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements, which clarifies ASU 2016-02 and is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company adopted this standard on January 1, 2019 using the optional transition method provided by the FASB in ASU 2018-11. As we did not restate comparative periods, the adoption had no impact on our previously reported results. We elected to use the practical expedient that allowed us to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases as well as the practical expedient that allows lessees to treat the lease and non-lease components of leases as a single lease component for all asset classes. We also elected to account for short-term leases in accordance with Accounting Standards Codification (“ASC”) 842-20-25-2. The adoption of this standard had a material impact on our condensed consolidated balance sheet due to the recognition of right of use assets and lease liabilities. Upon adoption, we recognized right of use assets and lease liabilities of approximately $68 million that reflected the present value of future lease payments. The adoption of this standard did not have a material impact on our condensed consolidated results of operations or cash flows. See Note 13 for further information. |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Information On Company's Business Segments | Information on the Company’s business segments is presented below based on the nature of products and services offered. The Company evaluates performance based on several factors, of which sales, operating income and operating margin are the primary financial measures. Intersegment sales are accounted for at fair value as if the sales were to third parties. Three Months Ended 2019 2018 Net sales Fluid & Metering Technologies External customers $ 242,336 $ 232,261 Intersegment sales 186 72 Total segment sales 242,522 232,333 Health & Science Technologies External customers 224,688 220,967 Intersegment sales 602 108 Total segment sales 225,290 221,075 Fire & Safety/Diversified Products External customers 155,207 159,096 Intersegment sales 952 77 Total segment sales 156,159 159,173 Intersegment elimination (1,740 ) (257 ) Total net sales $ 622,231 $ 612,324 Operating income Fluid & Metering Technologies $ 71,866 $ 66,166 Health & Science Technologies 54,154 51,806 Fire & Safety/Diversified Products 40,328 39,554 Corporate office (18,566 ) (20,843 ) Total operating income 147,782 136,683 Interest expense 10,921 11,000 Other (income) expense - net (140 ) (4,449 ) Income before income taxes $ 137,001 $ 130,132 March 31, December 31, Assets Fluid & Metering Technologies $ 1,140,025 $ 1,107,777 Health & Science Technologies 1,372,517 1,329,368 Fire & Safety/Diversified Products 820,226 806,075 Corporate office 218,692 230,637 Total assets $ 3,551,460 $ 3,473,857 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Revenue by reporting unit for the three months ended March 31, 2019 and 2018 was as follows: Three Months Ended 2019 2018 Energy $ 39,398 $ 38,759 Valves 29,382 26,029 Water 61,132 58,840 Pumps 88,260 80,666 Agriculture 24,350 28,039 Intersegment elimination (186 ) (72 ) Fluid & Metering Technologies 242,336 232,261 Scientific Fluidics & Optics 107,308 99,507 Sealing Solutions 50,506 53,702 Gast 33,909 28,512 Micropump 8,755 9,298 Material Processing Technologies 24,812 30,056 Intersegment elimination (602 ) (108 ) Health & Science Technologies 224,688 220,967 Fire & Safety 99,448 96,212 BAND-IT 27,912 27,474 Dispensing 28,799 35,487 Intersegment elimination (952 ) (77 ) Fire & Safety/Diversified Products 155,207 159,096 Total net sales $ 622,231 $ 612,324 |
Schedule of External Net Sales Disaggregated by Geography | Revenue by geographical region for the three months ended March 31, 2019 and 2018 was as follows: Three Months Ended March 31, 2019 FMT HST FSDP IDEX U.S. $ 138,149 $ 99,051 $ 74,677 $ 311,877 North America, excluding U.S. 13,057 4,892 5,980 23,929 Europe 43,624 69,372 43,062 156,058 Asia 31,917 48,059 23,560 103,536 Other (1) 15,775 3,916 8,880 28,571 Intersegment elimination (186 ) (602 ) (952 ) (1,740 ) Total net sales $ 242,336 $ 224,688 $ 155,207 $ 622,231 Three Months Ended March 31, 2018 FMT HST FSDP IDEX U.S. $ 133,153 $ 93,808 $ 72,497 $ 299,458 North America, excluding U.S. (2) — — — — Europe 43,599 73,779 47,119 164,497 Asia 26,398 44,548 24,233 95,179 Other (1) 29,183 8,940 15,324 53,447 Intersegment elimination (72 ) (108 ) (77 ) (257 ) Total net sales $ 232,261 $ 220,967 $ 159,096 $ 612,324 (1) Other includes: South America, Middle East, Australia and Africa. (2) Revenue from North America, excluding U.S. of $13,588 from FMT, $3,320 from HST and $7,609 from FSDP were included in Other for the three months ended March 31, 2018. |
Schedule of Contract with Customer, Asset and Liability | The composition of Customer receivables was as follows: March 31, December 31, Billed receivables $ 323,723 $ 299,227 Unbilled receivables 12,080 14,492 Total customer receivables $ 335,803 $ 313,719 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The composition of Deferred revenue was as follows: March 31, December 31, Deferred revenue - current $ 12,392 $ 8,055 Deferred revenue - noncurrent 2,789 3,027 Total deferred revenue $ 15,181 $ 11,082 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic Weighted Average Shares Reconciles to Diluted Weighted Average Shares | Basic weighted average shares outstanding reconciles to diluted weighted average shares outstanding as follows: Three Months Ended 2019 2018 Basic weighted average common shares outstanding 75,442 76,419 Dilutive effect of stock options, restricted stock and performance share units 842 1,320 Diluted weighted average common shares outstanding 76,284 77,739 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories as of March 31, 2019 and December 31, 2018 were: March 31, December 31, Raw materials and component parts $ 187,299 $ 178,805 Work in process 44,780 37,495 Finished goods 66,248 63,695 Total inventories $ 298,327 $ 279,995 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the three months ended March 31, 2019 , by reportable business segment, were as follows: FMT HST FSDP IDEX Balance at December 31, 2018 $ 581,041 $ 745,357 $ 371,557 $ 1,697,955 Foreign currency translation (1,796 ) (49 ) (1,890 ) (3,735 ) Acquisition adjustments — 188 — 188 Balance at March 31, 2019 $ 579,245 $ 745,496 $ 369,667 $ 1,694,408 |
Schedule of Gross Carrying Value and Accumulated Amortization For Each Major Class of Intangible Asset | The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset at March 31, 2019 and December 31, 2018 : At March 31, 2019 At December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Weighted Average Life Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets: Patents $ 6,528 $ (4,839 ) $ 1,689 12 $ 6,468 $ (4,693 ) $ 1,775 Trade names 115,788 (59,109 ) 56,679 16 115,899 (57,227 ) 58,672 Customer relationships 254,923 (90,430 ) 164,493 14 256,202 (85,652 ) 170,550 Unpatented technology 96,976 (38,172 ) 58,804 12 96,922 (35,685 ) 61,237 Other 700 (525 ) 175 10 700 (507 ) 193 Total amortized intangible assets 474,915 (193,075 ) 281,840 476,191 (183,764 ) 292,427 Indefinite-lived intangible assets: Banjo trade name 62,100 — 62,100 62,100 — 62,100 Akron Brass trade name 28,800 — 28,800 28,800 — 28,800 Total intangible assets $ 565,815 $ (193,075 ) $ 372,740 $ 567,091 $ (183,764 ) $ 383,327 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses | The components of accrued expenses as of March 31, 2019 and December 31, 2018 were: March 31, December 31, Payroll and related items $ 60,351 $ 78,944 Management incentive compensation 6,340 25,321 Income taxes payable 30,892 23,844 Insurance 8,802 10,422 Warranty 5,230 5,303 Deferred revenue 12,392 8,055 Lease liability 13,194 — Restructuring 4,026 6,170 Liability for uncertain tax positions 980 980 Accrued interest 10,434 1,759 Other 25,557 26,738 Total accrued expenses $ 178,198 $ 187,536 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Noncurrent Liabilities | The components of other noncurrent liabilities as of March 31, 2019 and December 31, 2018 were: March 31, December 31, Pension and retiree medical obligations $ 76,186 $ 80,667 Transition tax payable 17,127 17,127 Liability for uncertain tax positions 3,218 3,183 Deferred revenue 2,789 3,027 Liability for construction of new leased facility — 11,616 Lease liability 54,968 — Contingent consideration for acquisition 3,375 3,375 Other 20,000 19,219 Total other noncurrent liabilities $ 177,663 $ 138,214 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | Borrowings at March 31, 2019 and December 31, 2018 consisted of the following: March 31, December 31, Revolving Facility $ — $ — 4.50% Senior Notes, due December 2020 300,000 300,000 4.20% Senior Notes, due December 2021 350,000 350,000 3.20% Senior Notes, due June 2023 100,000 100,000 3.37% Senior Notes, due June 2025 100,000 100,000 Other borrowings 931 1,078 Total borrowings 850,931 851,078 Less current portion 455 483 Less deferred debt issuance costs 1,441 1,593 Less unaccreted debt discount 598 667 Total long-term borrowings $ 848,437 $ 848,335 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Company's Financial Assets and (Liabilities) at Fair Value on Recurring Basis | The following table summarizes the basis used to measure the Company’s financial assets (liabilities) at fair value on a recurring basis in the balance sheets at March 31, 2019 and December 31, 2018 : Basis of Fair Value Measurements Balance at Level 1 Level 2 Level 3 Available for sale securities $ 8,562 $ 8,562 $ — $ — Contingent consideration 3,375 — — 3,375 Basis of Fair Value Measurements Balance at Level 1 Level 2 Level 3 Available for sale securities $ 7,598 $ 7,598 $ — $ — Contingent consideration 3,375 — — 3,375 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Lessee Disclosure [Abstract] | |
Supplemental Balance Sheet Disclosures | Supplemental balance sheet information related to leases as of March 31, 2019 was as follows: Balance Sheet Caption March 31, Operating leases: Building right-of-use assets - net Other noncurrent assets $ 59,624 Equipment right-of-use assets - net Other noncurrent assets 6,861 Total right-of-use assets - net $ 66,485 Operating leases: Current lease liabilities Accrued expenses $ 13,194 Noncurrent lease liabilities Other noncurrent liabilities 54,968 Total lease liabilities $ 68,162 |
Schedule of Lease, Cost | The components of lease cost for the three months ended March 31, 2019 were as follows: Three Months Ended Operating lease cost (1) $ 5,375 Variable lease cost 593 Total lease expense $ 5,968 (1) Includes short-term leases, which are immaterial. |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow information related to leases for the three months ended March 31, 2019 was as follows: Three Months Ended Cash paid for amounts included in the measurement of operating lease liabilities $ 5,539 Right-of-use assets obtained in exchange for new operating lease liabilities 1,809 Other supplemental information related to leases as of March 31, 2019 was as follows: Lease Term and Discount Rate March 31, Weighted-average remaining lease term (years): Operating leases - building and equipment 8.39 Operating leases - vehicles 1.11 Weighted-average discount rate: Operating leases - building and equipment 4.02 % Operating leases - vehicles 3.23 % |
Schedule of Operating Lease, Liability, Maturity | Total lease liabilities at March 31, 2019 have scheduled maturities as follows: Maturity of Lease Liabilities Operating Leases (1) 2019 (excluding the three months ended March 31, 2019) $ 11,276 2020 13,158 2021 11,161 2022 8,193 2023 6,626 Thereafter 30,123 Total lease payments 80,537 Less: Imputed interest (12,375 ) Present value of lease liabilities $ 68,162 (1) Excludes $25.2 million of legally binding minimum lease payments for leases signed but not yet commenced. |
Schedule of Future Minimum Rental Payments for Operating Leases | Total lease liabilities at December 31, 2018 had scheduled maturities as follows: Maturity of Lease Liabilities Operating Leases 2019 $ 17,509 2020 13,162 2021 10,516 2022 7,979 2023 6,535 Thereafter 29,658 Total lease payments $ 85,359 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve | The changes in the restructuring accrual for the three months ended March 31, 2019 are as follows: Restructuring Balance at January 1, 2019 $ 6,170 Payments, utilization and other (2,144 ) Balance at March 31, 2019 $ 4,026 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of Other comprehensive income (loss) are as follows: Three Months Ended Three Months Ended Pre-tax Tax Net of tax Pre-tax Tax Net of tax Cumulative translation adjustment $ (3,281 ) $ — $ (3,281 ) $ 27,578 $ — $ 27,578 Pension and other postretirement adjustments 1,700 (438 ) 1,262 1,918 (505 ) 1,413 Reclassification adjustments for derivatives 1,588 (361 ) 1,227 1,632 (371 ) 1,261 Total other comprehensive income (loss) $ 7 $ (799 ) $ (792 ) $ 31,128 $ (876 ) $ 30,252 |
Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the amounts reclassified from accumulated other comprehensive income (loss) to net income during the three months ended March 31, 2019 and 2018 : Three Months Ended 2019 2018 Income Statement Caption Pension and other postretirement plans: Amortization of service cost $ 1,700 $ 1,918 Other (income) expense - net Total before tax 1,700 1,918 Provision for income taxes (438 ) (505 ) Total net of tax $ 1,262 $ 1,413 Derivatives: Reclassification adjustments $ 1,588 $ 1,632 Interest expense Total before tax 1,588 1,632 Provision for income taxes (361 ) (371 ) Total net of tax $ 1,227 $ 1,261 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Weighted Average Option Fair Values and Assumptions | Weighted average option fair values and assumptions for the periods specified are disclosed below. The fair value of each option grant was estimated on the date of the grant using the Binomial lattice option pricing model. Three Months Ended 2019 2018 Weighted average fair value of grants $35.17 $37.96 Dividend yield 1.18% 1.07% Volatility 24.79% 28.49% Risk-free interest rate 2.53% - 3.05% 2.01% - 3.17% Expected life (in years) 5.87 5.78 |
Schedule of Compensation Cost for Stock Options | Total compensation cost for stock options is as follows: Three Months Ended 2019 2018 Cost of goods sold $ 192 $ 206 Selling, general and administrative expenses 2,540 2,524 Total expense before income taxes 2,732 2,730 Income tax benefit (368 ) (470 ) Total expense after income taxes $ 2,364 $ 2,260 |
Schedule of Stock Option Activity | A summary of the Company’s stock option activity as of March 31, 2019 , and changes during the three months ended March 31, 2019 , are presented in the following table: Stock Options Shares Weighted Average Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2019 1,714,003 $ 85.08 6.70 $ 74,191,783 Granted 332,625 144.83 Exercised (131,565 ) 67.42 Forfeited (44,168 ) 108.13 Outstanding at March 31, 2019 1,870,895 $ 96.40 7.12 $ 103,532,580 Vested and expected to vest as of March 31, 2019 1,747,058 $ 94.14 6.99 $ 100,638,073 Exercisable at March 31, 2019 1,023,778 $ 75.01 5.74 $ 78,549,384 |
Schedule of Restricted Stock Activity | A summary of the Company’s restricted stock activity as of March 31, 2019 , and changes during the three months ended March 31, 2019 , are presented as follows: Restricted Stock Shares Weighted-Average Unvested at January 1, 2019 148,041 $ 101.50 Granted 32,945 144.25 Vested (34,952 ) 74.72 Forfeited (3,165 ) 128.71 Unvested at March 31, 2019 142,869 $ 117.30 |
Schedule of Compensation Cost for Restricted Stock | Total compensation cost for restricted shares is as follows: Three Months Ended 2019 2018 Cost of goods sold $ 138 $ 156 Selling, general and administrative expenses 1,288 1,289 Total expense before income taxes 1,426 1,445 Income tax benefit (275 ) (257 ) Total expense after income taxes $ 1,151 $ 1,188 |
Schedule of Unvested Cash-settled Restricted Stock Activity | A summary of the Company’s unvested cash-settled restricted stock activity as of March 31, 2019 , and changes during the three months ended March 31, 2019 , are presented in the following table: Cash-Settled Restricted Stock Shares Weighted-Average Unvested at January 1, 2019 88,225 $ 126.26 Granted 24,305 144.74 Vested (27,900 ) 144.12 Forfeited (3,625 ) 151.74 Unvested at March 31, 2019 81,005 $ 151.74 |
Schedule of Compensation Cost for Unvested Cash-settled Restricted Stock | Total compensation cost for cash-settled restricted stock is as follows: Three Months Ended 2019 2018 Cost of goods sold $ 500 $ 413 Selling, general and administrative expenses 1,530 1,204 Total expense before income taxes 2,030 1,617 Income tax benefit (187 ) (159 ) Total expense after income taxes $ 1,843 $ 1,458 |
Schedule of Weighted Average Performance Share Units Fair Values and Assumptions | Weighted average performance share unit fair values and assumptions for the period specified are disclosed below. The performance share units are market condition awards and have been assessed at fair value on the date of grant using a Monte Carlo simulation model. Three Months Ended 2019 2018 Weighted average fair value of grants $203.06 $216.59 Dividend yield —% —% Volatility 19.08% 17.42% Risk-free interest rate 2.53% 2.40% Expected life (in years) 2.84 2.85 |
Schedule of Performance Shares Units Activity | A summary of the Company’s performance share unit activity as of March 31, 2019 , and changes during the three months ended March 31, 2019 , are presented in the following table: Performance Share Units Shares Weighted-Average Unvested at January 1, 2019 111,155 $ 142.42 Granted 50,255 203.06 Vested — — Forfeited (8,970 ) 162.86 Unvested at March 31, 2019 152,440 $ 175.87 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Total compensation cost for performance share units is as follows: Three Months Ended 2019 2018 Cost of goods sold $ — $ — Selling, general and administrative expenses 1,372 1,860 Total expense before income taxes 1,372 1,860 Income tax benefit (48 ) (317 ) Total expense after income taxes $ 1,324 $ 1,543 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost for Defined Benefit Plans and Other Postretirement Plans | The following tables provide the components of net periodic benefit cost for its major defined benefit plans and its other postretirement plans. Pension Benefits Three Months Ended March 31, 2019 2018 U.S. Non-U.S. U.S. Non-U.S. Service cost $ 208 $ 464 $ 254 $ 545 Interest cost 764 365 653 361 Expected return on plan assets (801 ) (264 ) (983 ) (290 ) Net amortization 487 284 685 330 Net periodic benefit cost $ 658 $ 849 $ 609 $ 946 Other Postretirement Benefits Three Months Ended March 31, 2019 2018 Service cost $ 140 $ 168 Interest cost 212 203 Net amortization (159 ) (184 ) Net periodic benefit cost $ 193 $ 187 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, right-of-use asset | $ 66,485 | |
Operating lease, liability | $ 68,162 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, right-of-use asset | $ 68,000 | |
Operating lease, liability | $ 68,000 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) - USD ($) $ in Thousands | Jul. 23, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,694,408 | $ 1,697,955 | ||
Finger Lakes Instrumentation (FLI) | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | $ 23,600 | |||
Aggregate purchase price, cash paid | 20,200 | |||
Contingent consideration | $ 3,400 | |||
Contingent consideration arrangements, period | 24 months | |||
Goodwill | $ 12,600 | |||
Intangible assets | $ 7,900 | |||
Selling, general and administrative expenses | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related transaction costs | $ 300 | $ 700 |
Business Segments - Narrative (
Business Segments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 3 |
Business Segments - Schedule of
Business Segments - Schedule of Information on Company's Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 622,231 | $ 612,324 | |
Operating income | 147,782 | 136,683 | |
Interest expense | 10,921 | 11,000 | |
Other (income) expense - net | (140) | (4,449) | |
Income before income taxes | 137,001 | 130,132 | |
Total assets | 3,551,460 | $ 3,473,857 | |
Intersegment elimination | |||
Segment Reporting Information [Line Items] | |||
Net sales | (1,740) | (257) | |
Corporate office | |||
Segment Reporting Information [Line Items] | |||
Operating income | (18,566) | (20,843) | |
Total assets | 218,692 | 230,637 | |
Fluid & Metering Technologies | |||
Segment Reporting Information [Line Items] | |||
Net sales | 242,336 | 232,261 | |
Operating income | 71,866 | 66,166 | |
Fluid & Metering Technologies | Intersegment elimination | |||
Segment Reporting Information [Line Items] | |||
Net sales | 186 | 72 | |
Fluid & Metering Technologies | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 242,522 | 232,333 | |
Total assets | 1,140,025 | 1,107,777 | |
Health & Science Technologies | |||
Segment Reporting Information [Line Items] | |||
Net sales | 224,688 | 220,967 | |
Operating income | 54,154 | 51,806 | |
Health & Science Technologies | Intersegment elimination | |||
Segment Reporting Information [Line Items] | |||
Net sales | 602 | 108 | |
Health & Science Technologies | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 225,290 | 221,075 | |
Total assets | 1,372,517 | 1,329,368 | |
Fire & Safety/Diversified Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 155,207 | 159,096 | |
Operating income | 40,328 | 39,554 | |
Fire & Safety/Diversified Products | Intersegment elimination | |||
Segment Reporting Information [Line Items] | |||
Net sales | 952 | 77 | |
Fire & Safety/Diversified Products | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 156,159 | $ 159,173 | |
Total assets | $ 820,226 | $ 806,075 |
Revenue - Revenue by Reporting
Revenue - Revenue by Reporting Unit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 622,231 | $ 612,324 |
Intersegment elimination | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | (1,740) | (257) |
Fluid & Metering Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 242,336 | 232,261 |
Fluid & Metering Technologies | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 242,336 | 232,261 |
Fluid & Metering Technologies | Intersegment elimination | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | (186) | (72) |
Fluid & Metering Technologies | Energy | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 39,398 | 38,759 |
Fluid & Metering Technologies | Valves | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 29,382 | 26,029 |
Fluid & Metering Technologies | Water | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 61,132 | 58,840 |
Fluid & Metering Technologies | Pumps | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 88,260 | 80,666 |
Fluid & Metering Technologies | Agriculture | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 24,350 | 28,039 |
Health & Science Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 224,688 | 220,967 |
Health & Science Technologies | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 224,688 | 220,967 |
Health & Science Technologies | Intersegment elimination | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | (602) | (108) |
Health & Science Technologies | Scientific Fluidics & Optics | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 107,308 | 99,507 |
Health & Science Technologies | Sealing Solutions | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 50,506 | 53,702 |
Health & Science Technologies | Gast | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 33,909 | 28,512 |
Health & Science Technologies | Micropump | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 8,755 | 9,298 |
Health & Science Technologies | Material Processing Technologies | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 24,812 | 30,056 |
Fire & Safety/Diversified Products | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 155,207 | 159,096 |
Fire & Safety/Diversified Products | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 155,207 | 159,096 |
Fire & Safety/Diversified Products | Intersegment elimination | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | (952) | (77) |
Fire & Safety/Diversified Products | Fire & Safety | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 99,448 | 96,212 |
Fire & Safety/Diversified Products | BAND-IT | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 27,912 | 27,474 |
Fire & Safety/Diversified Products | Dispensing | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 28,799 | $ 35,487 |
Revenue - Revenue by Geography
Revenue - Revenue by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 622,231 | $ 612,324 |
Intersegment elimination | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | (1,740) | (257) |
U.S. | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 311,877 | 299,458 |
North America, excluding U.S. | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 23,929 | 0 |
Europe | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 156,058 | 164,497 |
Asia | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 103,536 | 95,179 |
Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 28,571 | 53,447 |
FMT | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 242,336 | 232,261 |
FMT | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 242,336 | 232,261 |
FMT | Intersegment elimination | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | (186) | (72) |
FMT | U.S. | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 138,149 | 133,153 |
FMT | North America, excluding U.S. | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 13,057 | 0 |
FMT | Europe | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 43,624 | 43,599 |
FMT | Asia | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 31,917 | 26,398 |
FMT | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 15,775 | 29,183 |
FMT | North America, Excluding United States Included in Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 13,588 | |
HST | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 224,688 | 220,967 |
HST | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 224,688 | 220,967 |
HST | Intersegment elimination | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | (602) | (108) |
HST | U.S. | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 99,051 | 93,808 |
HST | North America, excluding U.S. | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 4,892 | 0 |
HST | Europe | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 69,372 | 73,779 |
HST | Asia | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 48,059 | 44,548 |
HST | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 3,916 | 8,940 |
HST | North America, Excluding United States Included in Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 3,320 | |
FSDP | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 155,207 | 159,096 |
FSDP | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 155,207 | 159,096 |
FSDP | Intersegment elimination | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | (952) | (77) |
FSDP | U.S. | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 74,677 | 72,497 |
FSDP | North America, excluding U.S. | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 5,980 | 0 |
FSDP | Europe | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 43,062 | 47,119 |
FSDP | Asia | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 23,560 | 24,233 |
FSDP | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 8,880 | 15,324 |
FSDP | North America, Excluding United States Included in Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 7,609 |
Revenue - Receivables (Details)
Revenue - Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total customer receivables | $ 335,803 | $ 313,719 |
Unbilled receivables | 12,080 | 14,492 |
Billed receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total customer receivables | $ 323,723 | $ 299,227 |
Revenue - Deferred Revenue (Det
Revenue - Deferred Revenue (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Revenue from Contract with Customer [Abstract] | |||
Deferred revenue - current | $ 12,392 | $ 8,055 | $ 8,055 |
Deferred revenue - noncurrent | 2,789 | $ 3,027 | 3,027 |
Total deferred revenue | $ 15,181 | $ 11,082 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - Revenue from Contract with Customer - Product Concentration Risk | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Transferred at Point in Time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services transferred to customers | 96.00% | 95.00% |
Transferred over Time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from products and services transferred to customers | 4.00% | 5.00% |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Basic Weighted Average Shares Reconciles to Diluted Weighted Average Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Basic weighted average common shares outstanding (in shares) | 75,442 | 76,419 |
Dilutive effect of stock options, restricted stock and performance share units (in shares) | 842 | 1,320 |
Diluted weighted average common shares outstanding (in shares) | 76,284 | 77,739 |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Option to purchase common stock shares not included in the computation of diluted EPS (in shares) | 0.6 | 0.3 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and component parts | $ 187,299 | $ 178,805 |
Work in process | 44,780 | 37,495 |
Finished goods | 66,248 | 63,695 |
Total inventories | $ 298,327 | $ 279,995 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Balance at December 31, 2018 | $ 1,697,955 |
Foreign currency translation | (3,735) |
Acquisition adjustments | 188 |
Balance at March 31, 2019 | 1,694,408 |
FMT | |
Goodwill [Roll Forward] | |
Balance at December 31, 2018 | 581,041 |
Foreign currency translation | (1,796) |
Acquisition adjustments | 0 |
Balance at March 31, 2019 | 579,245 |
HST | |
Goodwill [Roll Forward] | |
Balance at December 31, 2018 | 745,357 |
Foreign currency translation | (49) |
Acquisition adjustments | 188 |
Balance at March 31, 2019 | 745,496 |
FSDP | |
Goodwill [Roll Forward] | |
Balance at December 31, 2018 | 371,557 |
Foreign currency translation | (1,890) |
Acquisition adjustments | 0 |
Balance at March 31, 2019 | $ 369,667 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Gross Carrying Value and Accumulated Amortization for Each Major Class of Intangible Asset (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | $ 474,915 | $ 476,191 |
Intangible assets - Gross Carrying Amount | 565,815 | 567,091 |
Amortized intangible assets - Accumulated Amortization | (193,075) | (183,764) |
Amortized intangible assets - Net | 281,840 | 292,427 |
Intangible assets - Net | 372,740 | 383,327 |
Banjo trade name | ||
Goodwill And Intangible Assets [Line Items] | ||
Indefinite lived intangible assets - Net | 62,100 | 62,100 |
Akron Brass trade name | ||
Goodwill And Intangible Assets [Line Items] | ||
Indefinite lived intangible assets - Net | 28,800 | 28,800 |
Patents | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | 6,528 | 6,468 |
Amortized intangible assets - Accumulated Amortization | (4,839) | (4,693) |
Amortized intangible assets - Net | $ 1,689 | 1,775 |
Amortized intangible assets - Weighted Average Life | 12 years | |
Trade names | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | $ 115,788 | 115,899 |
Amortized intangible assets - Accumulated Amortization | (59,109) | (57,227) |
Amortized intangible assets - Net | $ 56,679 | 58,672 |
Amortized intangible assets - Weighted Average Life | 16 years | |
Customer relationships | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | $ 254,923 | 256,202 |
Amortized intangible assets - Accumulated Amortization | (90,430) | (85,652) |
Amortized intangible assets - Net | $ 164,493 | 170,550 |
Amortized intangible assets - Weighted Average Life | 14 years | |
Unpatented technology | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | $ 96,976 | 96,922 |
Amortized intangible assets - Accumulated Amortization | (38,172) | (35,685) |
Amortized intangible assets - Net | $ 58,804 | 61,237 |
Amortized intangible assets - Weighted Average Life | 12 years | |
Other | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | $ 700 | 700 |
Amortized intangible assets - Accumulated Amortization | (525) | (507) |
Amortized intangible assets - Net | $ 175 | $ 193 |
Amortized intangible assets - Weighted Average Life | 10 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | Jun. 22, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 8,999 | $ 10,871 | |
Intangible assets, amortization expense | |||
Remaining of 2019 | 26,900 | ||
2020 | 35,100 | ||
2021 | 33,900 | ||
2022 | 32,100 | ||
2023 | $ 29,000 | ||
Phantom Controls (Phantom) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Purchase of intellectual property | $ 4,000 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Payables and Accruals [Abstract] | |||
Payroll and related items | $ 60,351 | $ 78,944 | |
Management incentive compensation | 6,340 | 25,321 | |
Income taxes payable | 30,892 | 23,844 | |
Insurance | 8,802 | 10,422 | |
Warranty | 5,230 | 5,303 | |
Deferred revenue | 12,392 | 8,055 | $ 8,055 |
Current lease liabilities | 13,194 | 0 | |
Restructuring | 4,026 | 6,170 | |
Liability for uncertain tax positions | 980 | 980 | |
Accrued interest | 10,434 | 1,759 | |
Other | 25,557 | 26,738 | |
Total accrued expenses | $ 178,198 | $ 187,536 |
Other Noncurrent Liabilities (D
Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Other Liabilities Disclosure [Abstract] | |||
Pension and retiree medical obligations | $ 76,186 | $ 80,667 | |
Transition tax payable | 17,127 | 17,127 | |
Liability for uncertain tax positions | 3,218 | 3,183 | |
Deferred revenue | 2,789 | 3,027 | $ 3,027 |
Liability for construction of new leased facility | 0 | 11,616 | |
Lease liability | 54,968 | 0 | |
Contingent consideration for acquisition | 3,375 | 3,375 | |
Other | 20,000 | 19,219 | |
Total other noncurrent liabilities | $ 177,663 | $ 138,214 |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 13, 2016 |
Debt Instrument [Line Items] | |||
Total borrowings | $ 850,931 | $ 851,078 | |
Less current portion | 455 | 483 | |
Less deferred debt issuance costs | 1,441 | 1,593 | |
Less unaccreted debt discount | 598 | 667 | |
Total long-term borrowings | $ 848,437 | $ 848,335 | |
4.50% Senior Notes, due December 2020 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.50% | 4.50% | |
4.20% Senior Notes, due December 2021 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.20% | 4.20% | |
3.20% Senior Notes, due June 2023 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.20% | 3.20% | |
3.37% Senior Notes, due June 2025 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.37% | 3.37% | |
Revolving Facility | |||
Debt Instrument [Line Items] | |||
Revolving Facility | $ 0 | $ 0 | |
Senior Notes | 4.50% Senior Notes, due December 2020 | |||
Debt Instrument [Line Items] | |||
Total borrowings | 300,000 | 300,000 | |
Senior Notes | 4.20% Senior Notes, due December 2021 | |||
Debt Instrument [Line Items] | |||
Total borrowings | 350,000 | 350,000 | |
Senior Notes | 3.20% Senior Notes, due June 2023 | |||
Debt Instrument [Line Items] | |||
Total borrowings | 100,000 | 100,000 | |
Stated interest rate | 3.20% | ||
Senior Notes | 3.37% Senior Notes, due June 2025 | |||
Debt Instrument [Line Items] | |||
Total borrowings | 100,000 | 100,000 | |
Stated interest rate | 3.37% | ||
Other borrowings | |||
Debt Instrument [Line Items] | |||
Other borrowings | $ 931 | $ 1,078 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) | Jun. 23, 2015USD ($) | Mar. 31, 2019USD ($)covenant | Dec. 31, 2018USD ($) | Jun. 13, 2016USD ($) |
Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing capacity | $ 700,000,000 | |||
Extension period | 1 year | |||
Aggregate lending commitments | $ 350,000,000 | |||
Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Required percent for prepayment amount of aggregate principal amount | 5.00% | |||
Minimum | Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Applicable margin over LIBOR | 0.005% | |||
Maximum | Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Applicable margin over LIBOR | 1.50% | |||
3.20% Senior Notes, due June 2023 | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate | 3.20% | 3.20% | ||
3.37% Senior Notes, due June 2025 | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate | 3.37% | 3.37% | ||
Revolving Facility | ||||
Line of Credit Facility [Line Items] | ||||
Applicable margin over LIBOR | 1.10% | |||
Current borrowings under revolving facility | $ 0 | |||
4.50% Senior Notes, due December 2020 | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate | 4.50% | 4.50% | ||
4.20% Senior Notes, due December 2021 | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate | 4.20% | 4.20% | ||
Senior Notes | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Interest coverage ratio | 3 | |||
Senior Notes | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Limitation of outstanding principal of higher preference debt as percent of consolidated assets | 15.00% | |||
Leverage ratio | 3.50 | |||
Senior Notes | 3.20% Senior Notes, due June 2023 | ||||
Line of Credit Facility [Line Items] | ||||
Face amount of debt | $ 100,000,000 | |||
Stated interest rate | 3.20% | |||
Senior Notes | 3.37% Senior Notes, due June 2025 | ||||
Line of Credit Facility [Line Items] | ||||
Face amount of debt | $ 100,000,000 | |||
Stated interest rate | 3.37% | |||
Letters Of Credit | Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing capacity | 75,000,000 | |||
Swing line Loans | Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing capacity | $ 50,000,000 | |||
Revolving Facility | ||||
Line of Credit Facility [Line Items] | ||||
Current borrowings under revolving facility | $ 0 | $ 0 | ||
Outstanding letters of credit | 8,700,000 | |||
Amount available to borrow | $ 691,300,000 | |||
Number of financial covenants | covenant | 2 |
Derivative Instruments (Details
Derivative Instruments (Details) $ in Thousands | 3 Months Ended | 24 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2011USD ($)instrument | Dec. 31, 2018EUR (€) | |
Derivative [Line Items] | ||||
Amortization of interest expense | $ 335 | $ 332 | ||
Amount to be recognized from hedged transactions within 12 months, approximate | $ 6,300 | |||
Other (Income) Expense Net | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivatives | 1,200 | |||
Foreign currency transaction loss | $ 1,200 | |||
4.20% Senior Notes, due December 2021 | ||||
Derivative [Line Items] | ||||
Interest rate on senior notes | 4.20% | |||
4.50% Senior Notes, due December 2020 | ||||
Derivative [Line Items] | ||||
Interest rate on senior notes | 4.50% | |||
Interest Rate Contract | ||||
Derivative [Line Items] | ||||
Number of instruments held | instrument | 2 | |||
Interest Rate Exchange Agreement Expiring 2010 and 2011 | ||||
Derivative [Line Items] | ||||
Amortization of interest expense | $ 68,900 | |||
Term of amortized interest expense, years | 10 years | |||
Foreign currency exchange contracts | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | € | € 180,000,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Company Financial Assets and Liabilities at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 8,562 | $ 7,598 |
Contingent consideration | 3,375 | 3,375 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 8,562 | 7,598 |
Contingent consideration | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Contingent consideration | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Contingent consideration | $ 3,375 | $ 3,375 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Jul. 23, 2018 |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | $ 860.6 | $ 851.5 | |
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | $ 850.3 | $ 850.4 | |
3.20% Senior Notes, due June 2023 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate | 3.20% | 3.20% | |
3.37% Senior Notes, due June 2025 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate | 3.37% | 3.37% | |
4.50% Senior Notes, due December 2020 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate | 4.50% | 4.50% | |
4.20% Senior Notes, due December 2021 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate | 4.20% | 4.20% | |
Finger Lakes Instrumentation (FLI) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Contingent consideration | $ 3.4 | ||
Finger Lakes Instrumentation (FLI) | Other Noncurrent Liabilities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Contingent consideration | $ 3.4 |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)option | Dec. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Options for renewal | option | 1 | |
Assets and Liabilities, Lessee [Abstract] | ||
Total right-of-use assets - net | $ 66,485 | |
Current lease liabilities | 13,194 | $ 0 |
Noncurrent lease liabilities | 54,968 | 0 |
Operating Lease, Liability | 68,162 | |
Lease, Cost [Abstract] | ||
Operating lease cost | 5,375 | |
Variable lease cost | 593 | |
Total lease expense | 5,968 | |
Cash paid for amounts included in the measurement of operating lease liabilities | 5,539 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | 1,809 | |
Operating Lease Liabilities, Payments Due [Abstract] | ||
2019 (excluding the three months ended March 31, 2019) | 11,276 | |
2020 | 13,158 | |
2021 | 11,161 | |
2022 | 8,193 | |
2023 | 6,626 | |
Thereafter | 30,123 | |
Total lease payments | 80,537 | |
Less: Imputed interest | (12,375) | |
Legally binding minimum lease payments for leases signed but not yet commenced | 25,200 | |
Maturity of Lease Liabilities | ||
2019 | 17,509 | |
2020 | 13,162 | |
2021 | 10,516 | |
2022 | 7,979 | |
2023 | 6,535 | |
Thereafter | 29,658 | |
Total lease payments | $ 85,359 | |
Building | ||
Assets and Liabilities, Lessee [Abstract] | ||
Total right-of-use assets - net | 59,624 | |
Equipment | ||
Assets and Liabilities, Lessee [Abstract] | ||
Total right-of-use assets - net | $ 6,861 | |
Building and Equipment | ||
Lease, Cost [Abstract] | ||
Weighted-average remaining lease term (years): Operating leases | 8 years 4 months 21 days | |
Weighted-average discount rate: Operating leases | 4.02% | |
Vehicles | ||
Lease, Cost [Abstract] | ||
Weighted-average remaining lease term (years): Operating leases | 1 year 1 month 10 days | |
Weighted-average discount rate: Operating leases | 3.23% |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Restructuring and Related Activities [Abstract] | ||
Restructuring reserve | $ 4,026 | $ 6,170 |
Restructuring - Restructuring A
Restructuring - Restructuring Accruals (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance at January 1, 2019 | $ 6,170 |
Payments, utilization and other | (2,144) |
Balance at March 31, 2019 | $ 4,026 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) | $ (792) | $ 30,252 |
Cumulative translation adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total other comprehensive income (loss), Pre-tax | (3,281) | 27,578 |
Total other comprehensive income (loss), Tax | 0 | 0 |
Other comprehensive income (loss) | (3,281) | 27,578 |
Pension and other postretirement adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total other comprehensive income (loss), Pre-tax | 1,700 | 1,918 |
Total other comprehensive income (loss), Tax | (438) | (505) |
Other comprehensive income (loss) | 1,262 | 1,413 |
Reclassification adjustments for derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total other comprehensive income (loss), Pre-tax | 1,588 | 1,632 |
Total other comprehensive income (loss), Tax | (361) | (371) |
Other comprehensive income (loss) | 1,227 | 1,261 |
AOCI | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total other comprehensive income (loss), Pre-tax | 7 | 31,128 |
Total other comprehensive income (loss), Tax | (799) | (876) |
Other comprehensive income (loss) | $ (792) | $ 30,252 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amortization of service cost | $ (140) | $ (4,449) |
Reclassification adjustments | 10,921 | 11,000 |
Income before income taxes | (137,001) | (130,132) |
Provision for income taxes | 26,733 | 31,174 |
Net income | (110,268) | (98,958) |
Reclassification out of Accumulated Other Comprehensive Income | Net Prior Service Attributable to Parent | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amortization of service cost | 1,700 | 1,918 |
Reclassification out of Accumulated Other Comprehensive Income | Retirement Benefits Adjustment | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | 1,700 | 1,918 |
Provision for income taxes | (438) | (505) |
Net income | 1,262 | 1,413 |
Reclassification out of Accumulated Other Comprehensive Income | Cumulative Unrealized Gain (Loss) on Derivatives | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassification adjustments | 1,588 | 1,632 |
Income before income taxes | 1,588 | 1,632 |
Provision for income taxes | (361) | (371) |
Net income | $ 1,227 | $ 1,261 |
Common and Preferred Stock (Det
Common and Preferred Stock (Details) - USD ($) | Dec. 01, 2015 | Apr. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Nov. 06, 2014 |
Equity [Abstract] | ||||||
Increase in share repurchase authorized amount | $ 300,000,000 | |||||
Stock repurchase program, authorized amount | $ 400,000,000 | |||||
Purchase of common stock (in shares) | 369,810 | |||||
Repurchase of shares of common stock | $ 51,706,000 | |||||
Remaining authorized repurchase amount | $ 325,300,000 | |||||
Common stock, authorized (in shares) | 150,000,000 | 150,000,000 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Purchase of common stock | $ 50,797,000 | $ 0 | ||||
Subsequent Event | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Purchase of common stock | $ 900,000 |
Share Based Compensation - Narr
Share Based Compensation - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Feb. 28, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Total unrecognized compensation cost | $ 19.7 | ||
Weighted-average period of total unrecognized compensation cost, in years | 1 year 7 months 6 days | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 32,945 | ||
Total unrecognized compensation cost | $ 7.5 | ||
Weighted-average period of total unrecognized compensation cost, in years | 1 year 2 months 12 days | ||
Restricted Stock | Employees and Non-employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Cash-settled Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Granted (in shares) | 24,305 | ||
Total unrecognized compensation cost | $ 5.5 | ||
Weighted-average period of total unrecognized compensation cost, in years | 1 year 2 months 12 days | ||
Performance Shares Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Granted (in shares) | 50,255 | 69,995 | |
Payout percent | 250.00% | ||
Stock issued during period (in shares) | 174,994 | ||
Total unrecognized compensation cost | $ 13.5 | ||
Weighted-average period of total unrecognized compensation cost, in years | 1 year 2 months 12 days |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Weighted Average Option Fair Values and Assumptions (Details) - Stock Option - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value of grants (in dollars per share) | $ 35.17 | $ 37.96 |
Dividend yield | 1.18% | 1.07% |
Volatility | 24.79% | 28.49% |
Risk-free interest rate, minimum | 2.53% | 2.01% |
Risk-free interest rate, maximum | 3.05% | 3.17% |
Expected life (in years) | 5 years 10 months 13 days | 5 years 9 months 11 days |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Compensation Cost for Stock Options (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | $ 7,560 | $ 7,652 |
Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | 2,732 | 2,730 |
Income tax benefit | (368) | (470) |
Total expense after income taxes | 2,364 | 2,260 |
Stock Option | Cost of goods sold | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | 192 | 206 |
Stock Option | Selling, general and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | $ 2,540 | $ 2,524 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options Activity (Details) - Stock Option - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Shares | ||
Beginning balance (in shares) | 1,714,003 | |
Granted (in shares) | 332,625 | |
Exercised (in shares) | (131,565) | |
Forfeited/Expired (in shares) | (44,168) | |
Ending balance (in shares) | 1,870,895 | 1,714,003 |
Vested and expected to vest (in shares) | 1,747,058 | |
Exercisable (in shares) | 1,023,778 | |
Weighted Average Price | ||
Beginning Balance, Weighted Average Price (in dollars per share) | $ 85.08 | |
Granted, Weighted Average Price (in dollars per share) | 144.83 | |
Exercised, Weighted Average Price (in dollars per share) | 67.42 | |
Forfeited, Weighted Average Price (in dollars per share) | 108.13 | |
Ending Balance, Weighted Average Price (in dollars per share) | $ 96.40 | $ 85.08 |
Weighted-Average Remaining Contractual Term | ||
Stock options outstanding, Weighted-Average Remaining Contractual Term | 7 years 1 month 13 days | 6 years 8 months 12 days |
Aggregate Intrinsic Value | ||
Stock options outstanding, Aggregate intrinsic value | $ 103,532,580 | $ 74,191,783 |
Vested and expected to vest , Weighted Average Price (in dollars per share) | $ 94.14 | |
Exercisable, Weighted Average Price (in dollars per share) | $ 75.01 | |
Weighted-Average Remaining Contractual Term, Vested and expected to vest | 6 years 11 months 27 days | |
Weighted-Average Remaining Contractual Term, Exercisable | 5 years 8 months 27 days | |
Aggregate Intrinsic Value, Vested and expected to vest | $ 100,638,073 | |
Aggregate Intrinsic Value, Exercisable | $ 78,549,384 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Shares | |
Unvested, Beginning balance (in shares) | shares | 148,041 |
Granted (in shares) | shares | 32,945 |
Vested (in shares) | shares | (34,952) |
Forfeited (in shares) | shares | (3,165) |
Unvested, Ending balance (in shares) | shares | 142,869 |
Weighted-Average Grant Date Fair Value | |
Unvested, Beginning balance (in dollars per share) | $ / shares | $ 101.50 |
Granted (in dollars per share) | $ / shares | 144.25 |
Vested (in dollars per share) | $ / shares | 74.72 |
Forfeited (in dollars per share) | $ / shares | 128.71 |
Unvested, Ending balance (in dollars per share) | $ / shares | $ 117.30 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Compensation Cost for Restricted Stock Units (Details) - Restricted Stock - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total expense before income taxes | $ 1,426 | $ 1,445 |
Income tax benefit | (275) | (257) |
Total expense after income taxes | 1,151 | 1,188 |
Cost of goods sold | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total expense before income taxes | 138 | 156 |
Selling, general and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total expense before income taxes | $ 1,288 | $ 1,289 |
Share-Based Compensation - Cash
Share-Based Compensation - Cash-settled Restricted Stock Activity (Details) - Cash-settled Restricted Stock | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Shares | |
Unvested, Beginning balance (in shares) | shares | 88,225 |
Granted (in shares) | shares | 24,305 |
Vested (in shares) | shares | (27,900) |
Forfeited (in shares) | shares | (3,625) |
Unvested, Ending balance (in shares) | shares | 81,005 |
Weighted-Average Grant Date Fair Value | |
Unvested, Beginning balance (in dollars per share) | $ / shares | $ 126.26 |
Granted (in dollars per share) | $ / shares | 144.74 |
Vested (in dollars per share) | $ / shares | 144.12 |
Forfeited (in dollars per share) | $ / shares | 151.74 |
Unvested, Ending balance (in dollars per share) | $ / shares | $ 151.74 |
Share-Based Compensation - Sc_4
Share-Based Compensation - Schedule of Compensation Cost for Cash-settled Restricted Stock (Details) - Cash-settled Restricted Stock - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total expense before income taxes | $ 2,030 | $ 1,617 |
Income tax benefit | (187) | (159) |
Total expense after income taxes | 1,843 | 1,458 |
Cost of goods sold | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total expense before income taxes | 500 | 413 |
Selling, general and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total expense before income taxes | $ 1,530 | $ 1,204 |
Share-Based Compensation - Sc_5
Share-Based Compensation - Schedule of Weighted Average Performance Share Units Fair Values and Assumptions (Details) - Performance Shares Units - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value of grants (in dollars per share) | $ 203.06 | $ 216.59 |
Dividend yield | 0.00% | 0.00% |
Volatility | 19.08% | 17.42% |
Risk-free interest rate | 2.53% | 2.40% |
Expected life (in years) | 2 years 10 months 2 days | 2 years 10 months 6 days |
Share-Based Compensation - Perf
Share-Based Compensation - Performance Share Unit Activity (Details) - Performance Shares Units - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Shares | ||
Unvested, Beginning balance (in shares) | 111,155 | |
Granted (in shares) | 50,255 | 69,995 |
Vested (in shares) | 0 | |
Forfeited (in shares) | (8,970) | |
Unvested, Ending balance (in shares) | 152,440 | 111,155 |
Weighted-Average Grant Date Fair Value | ||
Unvested, Beginning balance (in dollars per share) | $ 142.42 | |
Granted (in dollars per share) | 203.06 | |
Vested (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 162.86 | |
Unvested, Ending balance (in dollars per share) | $ 175.87 | $ 142.42 |
Share-Based Compensation - Sc_6
Share-Based Compensation - Schedule of Compensation Cost for Performance Share Units (Details) - Performance Shares Units - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total expense before income taxes | $ 1,372 | $ 1,860 |
Income tax benefit | (48) | (317) |
Total expense after income taxes | 1,324 | 1,543 |
Cost of goods sold | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total expense before income taxes | 0 | 0 |
Selling, general and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total expense before income taxes | $ 1,372 | $ 1,860 |
Retirement Benefits - Component
Retirement Benefits - Components of Net Periodic Benefit Cost for Defined Benefit Plans and Other Postretirement Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 140 | $ 168 |
Interest cost | 212 | 203 |
Net amortization | (159) | (184) |
Net periodic benefit cost | 193 | 187 |
U.S. | Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 208 | 254 |
Interest cost | 764 | 653 |
Expected return on plan assets | (801) | (983) |
Net amortization | 487 | 685 |
Net periodic benefit cost | 658 | 609 |
Non-U.S. | Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 464 | 545 |
Interest cost | 365 | 361 |
Expected return on plan assets | (264) | (290) |
Net amortization | 284 | 330 |
Net periodic benefit cost | $ 849 | $ 946 |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | $ 0.1 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected contribution for next fiscal year | $ 0.6 | |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected contribution for next fiscal year | $ 1.1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 26,733,000 | $ 31,174,000 |
Effective tax rate | 19.50% | 24.00% |
Minimum | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Increase in unrecognized tax benefits is reasonably possible | $ 0 | |
Maximum | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Increase in unrecognized tax benefits is reasonably possible | $ 1,000,000 |