Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-12273 | |
Entity Registrant Name | ROPER TECHNOLOGIES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 51-0263969 | |
Entity Address, Address Line One | 6496 University Parkway | |
Entity Address, City or Town | Sarasota, | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 34240 | |
City Area Code | 941 | |
Local Phone Number | 556-2601 | |
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Trading Symbol | ROP | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 107,044,532 | |
Entity Central Index Key | 0000882835 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net revenues | $ 1,680.7 | $ 1,469.7 |
Cost of sales | 499.7 | 451.1 |
Gross profit | 1,181 | 1,018.6 |
Selling, general and administrative expenses | 699.7 | 617.6 |
Income from operations | 481.3 | 401 |
Interest expense, net | 53.2 | 37.4 |
Equity investments (gain) loss, net | (57) | 1.2 |
Other expense, net | 1.2 | 2.3 |
Earnings before income taxes | 483.9 | 360.1 |
Income taxes | 101.9 | 75.8 |
Net earnings from continuing operations | 382 | 284.3 |
Net loss from discontinued operations | 0 | (1.2) |
Net earnings | $ 382 | $ 283.1 |
Net earnings per share from continuing operations: | ||
Basic (in dollars per share) | $ 3.57 | $ 2.67 |
Diluted (in dollars per share) | 3.54 | 2.66 |
Net loss per share from discontinued operations: | ||
Basic (in dollars per share) | 0 | (0.01) |
Diluted (in dollars per share) | 0 | (0.01) |
Net earnings per share: | ||
Basic (in dollars per share) | 3.57 | 2.66 |
Diluted (in dollars per share) | $ 3.54 | $ 2.65 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 107 | 106.3 |
Diluted (in shares) | 107.9 | 107 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 382 | $ 283.1 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | (19.1) | 24.1 |
Total other comprehensive income (loss), net of tax | (19.1) | 24.1 |
Comprehensive income | $ 362.9 | $ 307.2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS: | ||
Cash and cash equivalents | $ 198.4 | $ 214.3 |
Accounts receivable, net | 763.5 | 829.9 |
Inventories, net | 126 | 118.6 |
Income taxes receivable | 25.2 | 47.7 |
Unbilled receivables | 118.2 | 106.4 |
Other current assets | 194.4 | 164.5 |
Total current assets | 1,425.7 | 1,481.4 |
Property, plant and equipment, net | 119.6 | 119.6 |
Goodwill | 18,310.8 | 17,118.8 |
Other intangible assets, net | 8,830.9 | 8,212.1 |
Deferred taxes | 31.2 | 32.2 |
Equity investments | 852.5 | 795.7 |
Other assets | 407.8 | 407.7 |
Total assets | 29,978.5 | 28,167.5 |
LIABILITIES AND STOCKHOLDERS’ EQUITY: | ||
Accounts payable | 145.2 | 143 |
Accrued compensation | 165.2 | 250 |
Deferred revenue | 1,507.7 | 1,583.8 |
Other accrued liabilities | 464.2 | 446.5 |
Income taxes payable | 127.5 | 40.4 |
Current portion of long-term debt, net | 499.7 | 499.5 |
Total current liabilities | 2,909.5 | 2,963.2 |
Long-term debt, net of current portion | 7,222.3 | 5,830.6 |
Deferred taxes | 1,624.9 | 1,513.1 |
Other liabilities | 424.2 | 415.8 |
Total liabilities | 12,180.9 | 10,722.7 |
Commitments and contingencies (Note 10) | ||
Common stock | 1.1 | 1.1 |
Additional paid-in capital | 2,837.1 | 2,767 |
Retained earnings | 15,118 | 14,816.3 |
Accumulated other comprehensive loss | (141.9) | (122.8) |
Treasury stock | (16.7) | (16.8) |
Total stockholders’ equity | 17,797.6 | 17,444.8 |
Total liabilities and stockholders’ equity | $ 29,978.5 | $ 28,167.5 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net earnings from continuing operations | $ 382 | $ 284.3 |
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities: | ||
Depreciation and amortization of property, plant and equipment | 9.2 | 8.6 |
Amortization of intangible assets | 185 | 175.1 |
Amortization of deferred financing costs | 2.2 | 2.6 |
Non-cash stock compensation | 33.6 | 29.6 |
Equity investments (gain) loss, net | (57) | 1.2 |
Income tax provision | 101.9 | 75.8 |
Changes in operating assets and liabilities, net of acquired businesses: | ||
Accounts receivable | 79.4 | 98 |
Unbilled receivables | (12.2) | (8.7) |
Inventories | (7.9) | (3.8) |
Accounts payable | 0.3 | 11.2 |
Other accrued liabilities | (69.3) | (103.7) |
Deferred revenue | (70.5) | (61.4) |
Cash income taxes paid | (19) | (16) |
Other, net | (26.2) | (27.9) |
Cash provided by operating activities from continuing operations | 531.5 | 464.9 |
Cash used in operating activities from discontinued operations | 0 | (1.2) |
Cash provided by operating activities | 531.5 | 463.7 |
Cash flows used in investing activities: | ||
Acquisitions of businesses, net of cash acquired | (1,858.7) | (1.1) |
Capital expenditures | (9.3) | (9.8) |
Capitalized software expenditures | (9.6) | (9.9) |
Other, net | (1) | (2.8) |
Cash used in investing activities from continuing operations | (1,878.6) | (23.6) |
Cash used in disposition of discontinued operations | 0 | (3.2) |
Cash used in investing activities | (1,878.6) | (26.8) |
Cash flows from (used in) financing activities: | ||
Borrowings under revolving line of credit, net | 1,390 | 0 |
Cash dividends to stockholders | (80.5) | (72.3) |
Proceeds from stock-based compensation, net | 21.7 | 15.1 |
Treasury stock sales | 5.8 | 4.7 |
Other, net | (0.1) | 0 |
Cash provided by (used in) financing activities | 1,336.9 | (52.5) |
Effect of exchange rate changes on cash | (5.7) | 4.4 |
Net increase (decrease) in cash and cash equivalents | (15.9) | 388.8 |
Cash and cash equivalents, beginning of period | 214.3 | 792.8 |
Cash and cash equivalents, end of period | $ 198.4 | $ 1,181.6 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited) - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock |
Balance at beginning of period at Dec. 31, 2022 | $ 16,037.8 | $ 1.1 | $ 2,510.2 | $ 13,730.7 | $ (187) | $ (17.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 283.1 | 283.1 | ||||
Stock option exercises | 33.7 | 33.7 | ||||
Treasury stock sold | 4.7 | 4.6 | 0.1 | |||
Currency translation adjustments | 24.1 | 24.1 | ||||
Stock-based compensation | 31.4 | 31.4 | ||||
Restricted stock activity | (9.5) | (9.5) | ||||
Dividends declared | (72.6) | (72.6) | ||||
Balance at end of period at Mar. 31, 2023 | 16,332.7 | 1.1 | 2,570.4 | 13,941.2 | (162.9) | (17.1) |
Balance at beginning of period at Dec. 31, 2023 | 17,444.8 | 1.1 | 2,767 | 14,816.3 | (122.8) | (16.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 382 | 382 | ||||
Stock option exercises | 47.4 | 47.4 | ||||
Treasury stock sold | 5.8 | 5.7 | 0.1 | |||
Currency translation adjustments | (19.1) | (19.1) | ||||
Stock-based compensation | 34.6 | 34.6 | ||||
Restricted stock activity | (17.6) | (17.6) | ||||
Dividends declared | (80.3) | (80.3) | ||||
Balance at end of period at Mar. 31, 2024 | $ 17,797.6 | $ 1.1 | $ 2,837.1 | $ 15,118 | $ (141.9) | $ (16.7) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in usd per share) | $ 0.75 | $ 0.6825 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements for the three months ended March 31, 2024 and 2023 are unaudited. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the financial position, results of operations, comprehensive income, and cash flows of Roper Technologies, Inc. and its subsidiaries (“Roper,” the “Company,” “we,” “our,” or “us”) for all periods presented. The December 31, 2023 financial position data included herein was derived from the audited consolidated financial statements included in the Company’s 2023 Annual Report on Form 10-K (“Annual Report”) filed on February 22, 2024 with the U.S. Securities and Exchange Commission (“SEC”) but does not include all annual disclosures required by U.S. generally accepted accounting principles (“GAAP”). Roper’s management has made estimates and assumptions related to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these Condensed Consolidated Financial Statements in conformity with GAAP. Actual results could differ from those estimates. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full year. You should read these unaudited Condensed Consolidated Financial Statements in conjunction with Roper’s audited Consolidated Financial Statements and the notes thereto included in its Annual Report. Certain prior period amounts have been reclassified to conform to current period presentation. In 2022, Roper completed the divestiture of a 51% majority equity stake in its industrial businesses (“Indicor”). The financial results related to Indicor are reported as discontinued operations for all periods presented. Following the sale of the majority stake, Roper retained a minority equity interest in Indicor. See Note 9 for additional information on this minority equity interest. Unless otherwise noted, discussion within these Notes to Condensed Consolidated Financial Statements relates to continuing operations. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) establishes changes to accounting principles under GAAP in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. Any recent ASUs not listed below were assessed and either determined to be not applicable or are expected to have an immaterial impact on the Company’s results of operations, financial position, or cash flows. In November 2023, the FASB issued Accounting Standards Update No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (ASU 2023-07), which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its Consolidated Financial Statements and related disclosures. In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (ASU 2023-09), which expands income tax disclosure requirements, including disaggregation of rate reconciliation table categories, disaggregation of earnings before income taxes and income tax expense information, and disaggregation of income taxes paid information, among other changes. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its Consolidated Financial Statements and related disclosures. |
Weighted Average Shares Outstan
Weighted Average Shares Outstanding | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Weighted Average Shares Outstanding | Weighted Average Shares Outstanding Basic earnings per share was calculated using net earnings and the weighted average number of shares of common stock outstanding during the respective period. Diluted earnings per share was calculated using net earnings and the weighted average number of shares of common stock and potential common stock outstanding during the respective period. Potentially dilutive common stock consisted of stock options and restricted stock awards based upon the average trading price of Roper’s common stock. The effects of potential common stock were determined using the treasury stock method. Weighted average shares outstanding are presented below: Three months ended March 31, 2024 2023 Basic shares outstanding 107.0 106.3 Effect of potential common stock: Common stock awards 0.9 0.7 Diluted shares outstanding 107.9 107.0 For the three months ended March 31, 2024, there were 0.548 stock-based awards outstanding that were not included in the determination of diluted earnings per share because doing so would have been antidilutive, as compared to 1.150 stock-based awards outstanding that would have been antidilutive in the respective 2023 period. |
Business Acquisitions
Business Acquisitions | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisitions | Business Acquisitions On February 26, 2024, Roper acquired Genesis Ultimate Holding Co., the parent company of Procare Software, LLC (“Procare”), a leading provider of cloud-based software and integrated payment processing for the management of early childhood education centers, for a purchase price of $1,860.0, net of cash acquired and certain liabilities assumed. Additionally, the purchase price contemplated a net present value tax benefit of approximately $110 which is expected to be utilized over the next 13 years. The results of Procare are reported in the Application Software reportable segment. The Company recorded $1,208.2 in goodwill, $39.0 assigned to trade names that are not subject to amortization, and $762.0 of other identifiable intangibles in connection with this acquisition. The amortizable intangible assets include customer relationships of $708.0 (20 year useful life) and technology of $54.0 (5 year useful life). The results of operations of the acquired business are included in Roper’s Condensed Consolidated Financial Statements from the date of acquisition. Pro forma results of operations and the revenues and net earnings subsequent to the acquisition date have not been presented because the effects of the acquisition were not material to our financial results. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Roper Technologies, Inc. 2021 Incentive Plan is a stock-based compensation plan used to grant incentive stock options, nonqualified stock options, restricted stock and restricted stock units (collectively “restricted stock awards”), stock appreciation rights, or equivalent instruments to Roper’s employees, officers, directors, and consultants. The following table provides information regarding the Company’s stock-based compensation expense: Three months ended 2024 2023 Stock-based compensation $ 33.6 $ 30.2 Tax benefit recognized in net earnings 5.9 5.2 Stock Options – During the three months ended March 31, 2024, 0.244 options were granted with a weighted-average fair value of $173.78 per option. During the same three-month period in 2023, 0.353 options were granted with a weighted-average fair value of $128.89 per option. All options were issued with an exercise price equal to the closing price of Roper’s common stock on the date of grant, as required by the Company’s stock-based compensation plan. Roper records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option pricing model. Historical data is used to estimate the expected price volatility, the expected dividend yield, and the expected option life. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected life of the option. The Company accounts for forfeitures of awards as they occur, with previously recognized compensation reversed in the period that the awards are forfeited. The following weighted average assumptions were used to estimate the fair value of options granted during the current and prior year periods using the Black-Scholes option pricing model: Three months ended March 31, 2024 2023 Risk-free interest rate (%) 4.15 3.73 Expected option life (years) 5.73 5.65 Expected volatility (%) 25.57 26.02 Expected dividend yield (%) 0.50 0.64 Cash received from option exercises for the three months ended March 31, 2024 and 2023 was $39.3 and $24.6, respectively. Restricted Stock Awards – During the three months ended March 31, 2024, the Company granted 0.337 shares of restricted stock awards with a weighted-average grant date fair value of $557.15 per share. During the same three-month period in 2023, the Company granted 0.219 shares of restricted stock awards with a weighted-average grant date fair value of $428.20 per share. These awards were granted at the fair market value of the share on the date of grant. During 2024, the Company revised its equity compensation strategy to more closely align long-term management incentives with its strategic objective to deliver and sustain higher levels of organic growth. Accordingly, the total number of restricted stock awards granted during the three months ended March 31, 2024 increased as compared to the three months ended March 31, 2023 due primarily to the adoption of a supplemental equity compensation program for the Company’s business unit leadership teams under which 0.120 incremental three-year performance-based restricted stock awards were granted. In connection with the revised compensation strategy noted above, certain members of the Roper senior leadership team were granted 0.072 performance-based restricted stock awards during the three months ended March 31, 2024, that include the ability to earn up to 200% of the number of restricted stock awards originally granted contingent upon Roper’s performance over a three-year period, subject to a market modifier based on relative total shareholder return. Comparably, during the three months ended March 31, 2023, 0.071 performance-based restricted stock awards were granted to certain members of Roper’s senior leadership team which did not contain a market modifier and do not have the ability to vest beyond 100% of the original shares granted. Due to the extent of performance required by the vesting conditions noted above, these awards are not expected to materially increase stock-based compensation expense relative to the Company’s financial performance. During the three months ended March 31, 2024, 0.100 restricted stock award shares vested with a weighted-average grant date fair value of $437.34 per share and a weighted-average vest date fair value of $556.38 per share. Employee Stock Purchase Plan – Roper’s employee stock purchase plan (“ESPP”) allows employees in the U.S. and Canada to designate up to 10% of eligible earnings to purchase Roper’s common stock at a 10% discount on the lower of the closing price of the stock on the first and last day of each quarterly offering period. Common stock sold to employees pursuant to the ESPP may be either treasury stock, stock purchased on the open market, or newly issued shares. During both the three months ended March 31, 2024 and 2023, participants in the ESPP purchased 0.012 shares of Roper’s common stock for total consideration of $5.8 and $4.7, respectively. All of these shares were purchased from Roper’s treasury shares. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories were as follows: March 31, 2024 December 31, 2023 Raw materials and supplies $ 54.7 $ 57.6 Work in process 32.6 28.7 Finished products 48.5 41.8 Inventory reserves (9.8) (9.5) Inventories, net $ 126.0 $ 118.6 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The carrying value of goodwill by segment was as follows: Application Software Network Software Technology Enabled Products Total Balances at December 31, 2023 $ 12,563.4 $ 3,624.6 $ 930.8 $ 17,118.8 Goodwill acquired 1,208.2 — — 1,208.2 Other (9.7) — — (9.7) Currency translation adjustments (3.7) (2.3) (0.5) (6.5) Balances at March 31, 2024 $ 13,758.2 $ 3,622.3 $ 930.3 $ 18,310.8 Other relates to purchase accounting adjustments for acquisitions and is composed primarily of a measurement period adjustment of $9.8 to decrease goodwill and deferred tax liabilities in connection with the Syntellis opening balance sheet. Other intangible assets were comprised of: Cost Accumulated amortization Net book value Assets subject to amortization: Customer related intangibles $ 10,061.7 $ (3,000.5) $ 7,061.2 Unpatented technology 1,047.0 (638.8) 408.2 Software 149.2 (143.4) 5.8 Patents and other protective rights 10.3 (1.4) 8.9 Assets not subject to amortization: Trade names 728.0 — 728.0 Balances at December 31, 2023 $ 11,996.2 $ (3,784.1) $ 8,212.1 Assets subject to amortization: Customer related intangibles $ 10,642.5 $ (3,023.6) $ 7,618.9 Unpatented technology 803.9 (369.3) 434.6 Software 109.8 (106.2) 3.6 Patents and other protective rights 9.2 (1.5) 7.7 Assets not subject to amortization: Trade names 766.1 — 766.1 Balances at March 31, 2024 $ 12,331.5 $ (3,500.6) $ 8,830.9 Amortization expense of other intangible assets was $178.4 and $170.4 during the three months ended March 31, 2024 and 2023, respectively. An evaluation of the carrying value of goodwill and other indefinite-lived intangibles is required to be performed on an annual basis and on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. There have been no events or changes in circumstances which indicate an interim impairment review is required in 2024. The Company will perform the annual analysis during the fourth quarter of 2024. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Financial assets and liabilities are valued using market prices on active markets (Level 1), less active markets (Level 2), and little or no market activity (Level 3). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily available pricing sources for comparable instruments, identical instruments in less active markets, or models using market observable inputs. Level 3 instrument valuations typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. Roper’s debt at March 31, 2024 included $6,000 of fixed-rate senior notes with the following fair values: Fixed-rate senior notes Fair value Principal amount Interest rate Year of maturity As of March 31, 2024 $500 2.350% 2024 $492 $300 3.850% 2025 $293 $700 1.000% 2025 $659 $700 3.800% 2026 $679 $700 1.400% 2027 $622 $800 4.200% 2028 $777 $700 2.950% 2029 $630 $600 2.000% 2030 $502 $1,000 1.750% 2031 $805 The fair values of the senior notes are based on the trading prices of each series of notes, which the Company has determined to be Level 2 in the FASB fair value hierarchy. At March 31, 2024 and December 31, 2023, there were $1,750.0 and $360.0 of borrowings outstanding on our unsecured credit facility, respectively. The carrying value of these borrowings approximates their estimated fair value. |
Equity Investments
Equity Investments | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments | Equity Investments Indicor Investment – As of March 31, 2024 and December 31, 2023, the Company held a 46.8% and 47.3% equity interest in Indicor Equity, LLC, respectively. We elected to apply the fair value option as we believe this is the most reasonable method to value this equity investment. The fair value of Roper’s equity investment in Indicor is estimated on a quarterly basis and the change in fair value is reported as a component of “Equity investments (gain) loss, net” in our Condensed Consolidated Statements of Earnings. Although we believe our assumptions are considered reasonable and are consistent with the plans and estimates included in our Annual Report, there is significant judgment applied to determine fair value. Changes in estimates or the application of alternative assumptions could produce significantly different results. Our valuation methodology utilizes the market multiple approach consisting of comparable guideline public companies revenue and earnings multiples to estimate the fair value of this equity investment. The fair value of the investment reflects management’s estimate of assumptions that market participants would use in pricing the equity interest, which the Company has determined to be Level 3 in the FASB fair value hierarchy. The following table provides a reconciliation of the fair value for our equity investment in Indicor measured using Level 3 inputs: Three months ended Beginning balance $ 675.9 Change in fair value 64.4 Ending balance $ 740.3 Certinia Investment – In 2023, Roper acquired an 18.2% limited partnership minority interest in CI Ultimate Holdings, L.P., the parent entity of Certinia Inc., a leading provider of professional services automation software. This equity investment is accounted for under the equity method of accounting whereby our proportionate share of earnings or loss associated with the investment is reported as a component of “Equity investments (gain) loss, net” in our Condensed Consolidated Statement of Earnings with a corresponding change in the balance of our equity investment. Our proportionate share of loss associated with our investment in Certinia was $7.6 for the three months ended March 31, 2024. The balance of our equity investment in Certinia, reported as a component of “Equity investments” in our Condensed Consolidated Balance Sheets, was $112.2 as of March 31, 2024. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Loss Contingency [Abstract] | |
Contingencies | Contingencies Roper, in the ordinary course of business, is party to various pending or threatened legal actions, including product liability, intellectual property, antitrust, data privacy, and employment practices that, in general, are of a nature consistent with those over the past several years. After analyzing the Company’s contingent liabilities on a gross basis and, based upon past experience with resolution of such legal claims and the availability and limits of the primary, excess, and umbrella liability insurance coverages with respect to pending claims, management believes that adequate provision has been made to cover any potential liability not covered by insurance, and that the ultimate liability, if any, arising from these actions should not have a material adverse effect on Roper’s consolidated financial position, results of operations, or cash flows. However, no assurances can be given in this regard. Roper’s subsidiary, PowerPlan, Inc. (“PowerPlan”), is a defendant in an action pending in the U.S. District Court for the Northern District of Georgia (Lucasys Inc. v. PowerPlan, Inc., Case 1:20-cv-02987-AT) in which the plaintiff, a firm started by former PowerPlan employees, alleges PowerPlan has engaged in anticompetitive practices in violation of federal antitrust law. The plaintiff further alleges that PowerPlan violated Georgia’s deceptive trade practices act and undertook other tortious activities which impacted the plaintiff’s ability to commercialize its software and services offerings. The plaintiff claims damages of approximately $66, and seeks treble damages in addition to punitive damages, attorney fees, and pre-judgment interest. PowerPlan strongly denies the allegations in the dispute, and has asserted several affirmative defenses. PowerPlan and the plaintiff have each moved for summary judgment, and oral argument on the motions is scheduled for May 2024. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The following table presents selected financial information by reportable segment: Three months ended 2024 2023 Change % Net revenues: Application Software $ 895.2 $ 761.4 17.6 % Network Software 370.8 354.5 4.6 % Technology Enabled Products 414.7 353.8 17.2 % Total $ 1,680.7 $ 1,469.7 14.4 % Gross profit: Application Software $ 625.7 $ 520.5 20.2 % Network Software 316.3 299.4 5.6 % Technology Enabled Products 239.0 198.7 20.3 % Total $ 1,181.0 $ 1,018.6 15.9 % Operating profit *: Application Software $ 239.6 $ 193.2 24.0 % Network Software 167.0 147.5 13.2 % Technology Enabled Products 136.2 115.5 17.9 % Total $ 542.8 $ 456.2 19.0 % Long-lived assets: Application Software $ 184.7 $ 153.3 20.5 % Network Software 25.7 30.7 (16.3) % Technology Enabled Products 33.3 29.2 14.0 % Total $ 243.7 $ 213.2 14.3 % * Segment operating profit is before unallocated corporate general and administrative and enterprise-wide stock-based compensation expenses. These expenses were $61.5 and $55.2 for the three months ended March 31, 2024 and 2023, respectively. |
Revenues from Contracts
Revenues from Contracts | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts | Revenues from Contracts Disaggregated Revenue – We disaggregate our revenues by reportable segment into four categories: (i) recurring revenue comprised of Software-as-a-Service (“SaaS”), annual term licenses, and software maintenance; (ii) reoccurring revenue comprised of transactional and volume-based fees related to software licenses; (iii) non-recurring revenue comprised of multi-year term and perpetual software licenses, professional services associated with software products and hardware sold with our software licenses; and (iv) product revenue. See details in the table below: Three months ended March 31, 2024 Three months ended March 31, 2023 Revenue stream Application Software Network Software Technology Enabled Products Total Application Software Network Software Technology Enabled Products Total Software related Recurring $ 693.6 $ 267.8 $ 5.6 $ 967.0 $ 580.6 $ 255.9 $ 3.8 $ 840.3 Reoccurring 53.6 68.6 — 122.2 35.4 64.2 — 99.6 Non-recurring 148.0 34.4 — 182.4 145.4 34.4 0.4 180.2 Total Software Revenue 895.2 370.8 5.6 1,271.6 761.4 354.5 4.2 1,120.1 Product Revenue — — 409.1 409.1 — — 349.6 349.6 Total Revenue $ 895.2 $ 370.8 $ 414.7 $ 1,680.7 $ 761.4 $ 354.5 $ 353.8 $ 1,469.7 Remaining performance obligations – Remaining performance obligations represent the transaction price of firm orders for which work has not been performed, excluding unexercised contract options. As of March 31, 2024, total remaining performance obligations were $4,354.9. We expect to recognize revenues of $2,932.4, or approximately 67% of our remaining performance obligations over the next 12 months (“Backlog”), with the remainder to be recognized thereafter. Contract balances Balance sheet account March 31, 2024 December 31, 2023 Change Unbilled receivables $ 118.2 $ 106.4 $ 11.8 Deferred revenue – current (1,507.7) (1,583.8) 76.1 Deferred revenue – non-current (1) (145.1) (130.7) (14.4) Net contract assets/(liabilities) $ (1,534.6) $ (1,608.1) $ 73.5 (1) The non-current portion of deferred revenue is included in “Other liabilities” in our Condensed Consolidated Balance Sheets. The change in our net contract assets/(liabilities) from December 31, 2023 to March 31, 2024 was primarily due to the timing of payments and invoicing related to SaaS and post-contract support (“PCS”) renewals, driven predominantly by the SaaS renewal cycle of our Frontline business which primarily occurs in the third quarter. The Company records deferred revenue when cash payments are received or due in advance of the Company’s performance relating primarily to SaaS and PCS renewals. Revenue recognized from the deferred revenue balance on December 31, 2023 and 2022 was $693.9 and $589.9 for the three months ended March 31, 2024 and 2023, respectively. In order to determine revenues recognized in the period from contract liabilities, we allocate revenue to the individual deferred revenue balance outstanding at the beginning of the year until the revenue exceeds that balance. The current and non-current portions of deferred commissions are included in “Other current assets” and “Other assets,” respectively, in our Condensed Consolidated Balance Sheets. At March 31, 2024 and December 31, 2023, we had $71.8 and $71.7 of total deferred commissions, respectively. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net earnings | $ 382 | $ 283.1 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements for the three months ended March 31, 2024 and 2023 are unaudited. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the financial position, results of operations, comprehensive income, and cash flows of Roper Technologies, Inc. and its subsidiaries (“Roper,” the “Company,” “we,” “our,” or “us”) for all periods presented. The December 31, 2023 financial position data included herein was derived from the audited consolidated financial statements included in the Company’s 2023 Annual Report on Form 10-K (“Annual Report”) filed on February 22, 2024 with the U.S. Securities and Exchange Commission (“SEC”) but does not include all annual disclosures required by U.S. generally accepted accounting principles (“GAAP”). Roper’s management has made estimates and assumptions related to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these Condensed Consolidated Financial Statements in conformity with GAAP. Actual results could differ from those estimates. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full year. You should read these unaudited Condensed Consolidated Financial Statements in conjunction with Roper’s audited Consolidated Financial Statements and the notes thereto included in its Annual Report. Certain prior period amounts have been reclassified to conform to current period presentation. |
Discontinued Operations | In 2022, Roper completed the divestiture of a 51% majority equity stake in its industrial businesses (“Indicor”). The financial results related to Indicor are reported as discontinued operations for all periods presented. Following the sale of the majority stake, Roper retained a minority equity interest in Indicor. See Note 9 for additional information on this minority equity interest. Unless otherwise noted, discussion within these Notes to Condensed Consolidated Financial Statements relates to continuing operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) establishes changes to accounting principles under GAAP in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. Any recent ASUs not listed below were assessed and either determined to be not applicable or are expected to have an immaterial impact on the Company’s results of operations, financial position, or cash flows. In November 2023, the FASB issued Accounting Standards Update No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (ASU 2023-07), which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its Consolidated Financial Statements and related disclosures. In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (ASU 2023-09), which expands income tax disclosure requirements, including disaggregation of rate reconciliation table categories, disaggregation of earnings before income taxes and income tax expense information, and disaggregation of income taxes paid information, among other changes. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its Consolidated Financial Statements and related disclosures. |
Weighted Average Shares Outst_2
Weighted Average Shares Outstanding (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Shares Outstanding | Weighted average shares outstanding are presented below: Three months ended March 31, 2024 2023 Basic shares outstanding 107.0 106.3 Effect of potential common stock: Common stock awards 0.9 0.7 Diluted shares outstanding 107.9 107.0 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table provides information regarding the Company’s stock-based compensation expense: Three months ended 2024 2023 Stock-based compensation $ 33.6 $ 30.2 Tax benefit recognized in net earnings 5.9 5.2 |
Schedule of Weighted Average Assumptions Used to Value Option Grants | The following weighted average assumptions were used to estimate the fair value of options granted during the current and prior year periods using the Black-Scholes option pricing model: Three months ended March 31, 2024 2023 Risk-free interest rate (%) 4.15 3.73 Expected option life (years) 5.73 5.65 Expected volatility (%) 25.57 26.02 Expected dividend yield (%) 0.50 0.64 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The components of inventories were as follows: March 31, 2024 December 31, 2023 Raw materials and supplies $ 54.7 $ 57.6 Work in process 32.6 28.7 Finished products 48.5 41.8 Inventory reserves (9.8) (9.5) Inventories, net $ 126.0 $ 118.6 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The carrying value of goodwill by segment was as follows: Application Software Network Software Technology Enabled Products Total Balances at December 31, 2023 $ 12,563.4 $ 3,624.6 $ 930.8 $ 17,118.8 Goodwill acquired 1,208.2 — — 1,208.2 Other (9.7) — — (9.7) Currency translation adjustments (3.7) (2.3) (0.5) (6.5) Balances at March 31, 2024 $ 13,758.2 $ 3,622.3 $ 930.3 $ 18,310.8 |
Schedule of Other Intangible Assets - Subject to Amortization | Other intangible assets were comprised of: Cost Accumulated amortization Net book value Assets subject to amortization: Customer related intangibles $ 10,061.7 $ (3,000.5) $ 7,061.2 Unpatented technology 1,047.0 (638.8) 408.2 Software 149.2 (143.4) 5.8 Patents and other protective rights 10.3 (1.4) 8.9 Assets not subject to amortization: Trade names 728.0 — 728.0 Balances at December 31, 2023 $ 11,996.2 $ (3,784.1) $ 8,212.1 Assets subject to amortization: Customer related intangibles $ 10,642.5 $ (3,023.6) $ 7,618.9 Unpatented technology 803.9 (369.3) 434.6 Software 109.8 (106.2) 3.6 Patents and other protective rights 9.2 (1.5) 7.7 Assets not subject to amortization: Trade names 766.1 — 766.1 Balances at March 31, 2024 $ 12,331.5 $ (3,500.6) $ 8,830.9 |
Schedule of Other Intangible Assets - Not Subject to Amortization | Other intangible assets were comprised of: Cost Accumulated amortization Net book value Assets subject to amortization: Customer related intangibles $ 10,061.7 $ (3,000.5) $ 7,061.2 Unpatented technology 1,047.0 (638.8) 408.2 Software 149.2 (143.4) 5.8 Patents and other protective rights 10.3 (1.4) 8.9 Assets not subject to amortization: Trade names 728.0 — 728.0 Balances at December 31, 2023 $ 11,996.2 $ (3,784.1) $ 8,212.1 Assets subject to amortization: Customer related intangibles $ 10,642.5 $ (3,023.6) $ 7,618.9 Unpatented technology 803.9 (369.3) 434.6 Software 109.8 (106.2) 3.6 Patents and other protective rights 9.2 (1.5) 7.7 Assets not subject to amortization: Trade names 766.1 — 766.1 Balances at March 31, 2024 $ 12,331.5 $ (3,500.6) $ 8,830.9 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fixed-Rate Senior Notes, Fair Value | Roper’s debt at March 31, 2024 included $6,000 of fixed-rate senior notes with the following fair values: Fixed-rate senior notes Fair value Principal amount Interest rate Year of maturity As of March 31, 2024 $500 2.350% 2024 $492 $300 3.850% 2025 $293 $700 1.000% 2025 $659 $700 3.800% 2026 $679 $700 1.400% 2027 $622 $800 4.200% 2028 $777 $700 2.950% 2029 $630 $600 2.000% 2030 $502 $1,000 1.750% 2031 $805 |
Equity Investments (Tables)
Equity Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Change in Fair Value for the Equity Investment | The following table provides a reconciliation of the fair value for our equity investment in Indicor measured using Level 3 inputs: Three months ended Beginning balance $ 675.9 Change in fair value 64.4 Ending balance $ 740.3 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following table presents selected financial information by reportable segment: Three months ended 2024 2023 Change % Net revenues: Application Software $ 895.2 $ 761.4 17.6 % Network Software 370.8 354.5 4.6 % Technology Enabled Products 414.7 353.8 17.2 % Total $ 1,680.7 $ 1,469.7 14.4 % Gross profit: Application Software $ 625.7 $ 520.5 20.2 % Network Software 316.3 299.4 5.6 % Technology Enabled Products 239.0 198.7 20.3 % Total $ 1,181.0 $ 1,018.6 15.9 % Operating profit *: Application Software $ 239.6 $ 193.2 24.0 % Network Software 167.0 147.5 13.2 % Technology Enabled Products 136.2 115.5 17.9 % Total $ 542.8 $ 456.2 19.0 % Long-lived assets: Application Software $ 184.7 $ 153.3 20.5 % Network Software 25.7 30.7 (16.3) % Technology Enabled Products 33.3 29.2 14.0 % Total $ 243.7 $ 213.2 14.3 % * Segment operating profit is before unallocated corporate general and administrative and enterprise-wide stock-based compensation expenses. These expenses were $61.5 and $55.2 for the three months ended March 31, 2024 and 2023, respectively. |
Revenues from Contracts (Tables
Revenues from Contracts (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | See details in the table below: Three months ended March 31, 2024 Three months ended March 31, 2023 Revenue stream Application Software Network Software Technology Enabled Products Total Application Software Network Software Technology Enabled Products Total Software related Recurring $ 693.6 $ 267.8 $ 5.6 $ 967.0 $ 580.6 $ 255.9 $ 3.8 $ 840.3 Reoccurring 53.6 68.6 — 122.2 35.4 64.2 — 99.6 Non-recurring 148.0 34.4 — 182.4 145.4 34.4 0.4 180.2 Total Software Revenue 895.2 370.8 5.6 1,271.6 761.4 354.5 4.2 1,120.1 Product Revenue — — 409.1 409.1 — — 349.6 349.6 Total Revenue $ 895.2 $ 370.8 $ 414.7 $ 1,680.7 $ 761.4 $ 354.5 $ 353.8 $ 1,469.7 |
Schedule of Contract Balances | Contract balances Balance sheet account March 31, 2024 December 31, 2023 Change Unbilled receivables $ 118.2 $ 106.4 $ 11.8 Deferred revenue – current (1,507.7) (1,583.8) 76.1 Deferred revenue – non-current (1) (145.1) (130.7) (14.4) Net contract assets/(liabilities) $ (1,534.6) $ (1,608.1) $ 73.5 (1) The non-current portion of deferred revenue is included in “Other liabilities” in our Condensed Consolidated Balance Sheets. |
Basis of Presentation (Details)
Basis of Presentation (Details) | Dec. 31, 2022 |
Held-for-sale or Disposed of by Sale | Indicor | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Ownership interest divested, percent | 51% |
Weighted Average Shares Outst_3
Weighted Average Shares Outstanding - Schedule of Weighted Average Shares Outstanding (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Basic shares outstanding (in shares) | 107 | 106.3 |
Effect of potential common stock: | ||
Common stock awards (in shares) | 0.9 | 0.7 |
Diluted shares outstanding (in shares) | 107.9 | 107 |
Weighted Average Shares Outst_4
Weighted Average Shares Outstanding - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Antidilutive stock-based awards (in shares) | 548 | 1,150 |
Business Acquisitions (Details)
Business Acquisitions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Feb. 26, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 18,310.8 | $ 17,118.8 | |
Genesis Ultimate Holding Co | |||
Business Acquisition [Line Items] | |||
Aggregate purchase price | $ 1,860 | ||
Federal tax attributes | $ 110 | ||
Goodwill | 1,208.2 | ||
Other identifiable intangibles | 762 | ||
Tax benefit utilization period (in years) | 13 years | ||
Genesis Ultimate Holding Co | Trade names | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired, not subject to amortization | $ 39 | ||
Genesis Ultimate Holding Co | Customer related intangibles | |||
Business Acquisition [Line Items] | |||
Weighted average useful life of finite-lived intangible assets (in years) | 20 years | ||
Other identifiable intangibles | $ 708 | ||
Genesis Ultimate Holding Co | Technology | |||
Business Acquisition [Line Items] | |||
Weighted average useful life of finite-lived intangible assets (in years) | 5 years | ||
Other identifiable intangibles | $ 54 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock-based compensation | $ 33.6 | $ 30.2 |
Tax benefit recognized in net earnings | $ 5.9 | $ 5.2 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock options granted during the period (in shares) | 244,000 | 353,000 |
Fair value per share (in dollars per share) | $ 173.78 | $ 128.89 |
Cash received from exercise of options | $ 39.3 | $ 24.6 |
Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 337,000 | 219,000 |
Weighted-average grant date fair value (in dollars per share) | $ 557.15 | $ 428.20 |
Restricted stock awards vested during period (in shares) | 100,000 | |
Weighted average grant date fair value per share (in dollars per share) | $ 437.34 | |
Weighted average vest date fair value per share (in dollars per share) | $ 556.38 | |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of eligible earnings to purchase common stock through the employee stock purchase plan | 10% | |
Discount on the average closing price for the employee stock purchase plan | 10% | |
Shares of stock purchased during the period by participants in the employee stock purchase plan (in shares) | 12,000 | 12,000 |
Proceeds from issuance of shares under employee stock purchase plan | $ 5.8 | $ 4.7 |
Performance/market-based | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 72,000 | |
Vesting period | 3 years | |
Performance/market-based | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting rights, percentage | 200% | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 120,000 | |
Vesting period | 3 years | |
Performance-based restricted stock awards (in shares) | 71,000 | |
Performance Shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting rights, percentage | 100% |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Weighted Average Assumptions Used to Value Option Grants (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Risk-free interest rate (%) | 4.15% | 3.73% |
Expected option life (years) | 5 years 8 months 23 days | 5 years 7 months 24 days |
Expected volatility (%) | 25.57% | 26.02% |
Expected dividend yield (%) | 0.50% | 0.64% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 54.7 | $ 57.6 |
Work in process | 32.6 | 28.7 |
Finished products | 48.5 | 41.8 |
Inventory reserves | (9.8) | (9.5) |
Inventories, net | $ 126 | $ 118.6 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 17,118.8 |
Goodwill acquired | 1,208.2 |
Other | (9.7) |
Currency translation adjustments | (6.5) |
Balance at end of period | 18,310.8 |
Application Software | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 12,563.4 |
Goodwill acquired | 1,208.2 |
Other | (9.7) |
Currency translation adjustments | (3.7) |
Balance at end of period | 13,758.2 |
Network Software | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 3,624.6 |
Goodwill acquired | 0 |
Other | 0 |
Currency translation adjustments | (2.3) |
Balance at end of period | 3,622.3 |
Technology Enabled Products | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 930.8 |
Goodwill acquired | 0 |
Other | 0 |
Currency translation adjustments | (0.5) |
Balance at end of period | $ 930.3 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 185 | $ 175.1 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | 178.4 | $ 170.4 |
Frontline Acquisition | ||
Finite-Lived Intangible Assets [Line Items] | ||
Decrease to goodwill and deferred tax liabilities | $ (9.8) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (3,500.6) | $ (3,784.1) |
Intangible assets, gross (excluding goodwill) | 12,331.5 | 11,996.2 |
Intangible assets, net (excluding goodwill) | 8,830.9 | 8,212.1 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets (excluding goodwill) | 766.1 | 728 |
Customer related intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 10,642.5 | 10,061.7 |
Accumulated amortization | (3,023.6) | (3,000.5) |
Finite-lived intangible assets, net | 7,618.9 | 7,061.2 |
Unpatented technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 803.9 | 1,047 |
Accumulated amortization | (369.3) | (638.8) |
Finite-lived intangible assets, net | 434.6 | 408.2 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 109.8 | 149.2 |
Accumulated amortization | (106.2) | (143.4) |
Finite-lived intangible assets, net | 3.6 | 5.8 |
Patents and other protective rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 9.2 | 10.3 |
Accumulated amortization | (1.5) | (1.4) |
Finite-lived intangible assets, net | $ 7.7 | $ 8.9 |
Fair Value - Schedule of Fixed-
Fair Value - Schedule of Fixed-Rate Senior Notes, Fair Value (Details) - Senior Notes - Fair Value, Inputs, Level 2 | Mar. 31, 2024 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed rate senior notes carrying amount | $ 6,000,000,000 |
Senior Notes Due in 2024 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Principal amount | $ 500,000,000 |
Interest rate | 2.35% |
Fair value | $ 492,000,000 |
Senior Notes Due 2025 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Principal amount | $ 300,000,000 |
Interest rate | 3.85% |
Fair value | $ 293,000,000 |
Senior Unsecured Notes Due September 15, 2025 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Principal amount | $ 700,000,000 |
Interest rate | 1% |
Fair value | $ 659,000,000 |
Senior Notes Due 2026 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Principal amount | $ 700,000,000 |
Interest rate | 3.80% |
Fair value | $ 679,000,000 |
Senior Unsecured Notes Due September 15, 2027 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Principal amount | $ 700,000,000 |
Interest rate | 1.40% |
Fair value | $ 622,000,000 |
Senior Notes Due 2028 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Principal amount | $ 800,000,000 |
Interest rate | 4.20% |
Fair value | $ 777,000,000 |
Senior Notes Due in 2029 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Principal amount | $ 700,000,000 |
Interest rate | 2.95% |
Fair value | $ 630,000,000 |
Senior Notes Due June 2030 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Principal amount | $ 600,000,000 |
Interest rate | 2% |
Fair value | $ 502,000,000 |
Senior Unsecured Notes Due February 15, 2031 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Principal amount | $ 1,000,000,000 |
Interest rate | 1.75% |
Fair value | $ 805,000,000 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Line of Credit | Unsecured Credit Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit facility outstanding | $ 1,750 | $ 360 |
Equity Investments - Narrative
Equity Investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investment gain (loss), net | $ 57 | $ (1.2) | |
Equity investments | $ 852.5 | $ 795.7 | |
Indicor | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investment, ownership percentage | 46.80% | 47.30% | |
Equity method investment gain (loss), net | $ 64.4 | ||
Equity investments | 740.3 | $ 675.9 | |
Certinia Inc. | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investment, ownership percentage | 18.20% | ||
Equity method investment gain (loss), net | (7.6) | ||
Equity investments | $ 112.2 |
Equity Investments - Schedule o
Equity Investments - Schedule of Change in Fair Value for the Equity Investment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Equity Method Investments | ||
Beginning balance | $ 795.7 | |
Change in fair value | 57 | $ (1.2) |
Ending balance | 852.5 | |
Indicor | ||
Equity Method Investments | ||
Beginning balance | 675.9 | |
Change in fair value | 64.4 | |
Ending balance | $ 740.3 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Pending Litigation | PowerPlan, Inc | |
Loss Contingencies [Line Items] | |
Damages sought by plaintiff | $ 66 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Net revenues: | $ 1,680.7 | $ 1,469.7 |
Percent change in net revenues | 14.40% | |
Gross profit: | $ 1,181 | 1,018.6 |
Percent change in gross profit | 15.90% | |
Operating profit | $ 542.8 | 456.2 |
Percent change in operating profit | 19% | |
Long-lived assets: | $ 243.7 | 213.2 |
Percent change in long-lived assets | 14.30% | |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Unallocated corporate general and administrative expenses | $ 61.5 | 55.2 |
Application Software | ||
Segment Reporting Information [Line Items] | ||
Net revenues: | $ 895.2 | 761.4 |
Percent change in net revenues | 17.60% | |
Gross profit: | $ 625.7 | 520.5 |
Percent change in gross profit | 20.20% | |
Operating profit | $ 239.6 | 193.2 |
Percent change in operating profit | 24% | |
Long-lived assets: | $ 184.7 | 153.3 |
Percent change in long-lived assets | 20.50% | |
Network Software | ||
Segment Reporting Information [Line Items] | ||
Net revenues: | $ 370.8 | 354.5 |
Percent change in net revenues | 4.60% | |
Gross profit: | $ 316.3 | 299.4 |
Percent change in gross profit | 5.60% | |
Operating profit | $ 167 | 147.5 |
Percent change in operating profit | 13.20% | |
Long-lived assets: | $ 25.7 | 30.7 |
Percent change in long-lived assets | (16.30%) | |
Technology Enabled Products | ||
Segment Reporting Information [Line Items] | ||
Net revenues: | $ 414.7 | 353.8 |
Percent change in net revenues | 17.20% | |
Gross profit: | $ 239 | 198.7 |
Percent change in gross profit | 20.30% | |
Operating profit | $ 136.2 | 115.5 |
Percent change in operating profit | 17.90% | |
Long-lived assets: | $ 33.3 | $ 29.2 |
Percent change in long-lived assets | 14% |
Revenues from Contracts - Sched
Revenues from Contracts - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 1,680.7 | $ 1,469.7 |
Application Software | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 895.2 | 761.4 |
Network Software | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 370.8 | 354.5 |
Technology Enabled Products | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 414.7 | 353.8 |
Total Software Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 1,271.6 | 1,120.1 |
Total Software Revenue | Application Software | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 895.2 | 761.4 |
Total Software Revenue | Network Software | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 370.8 | 354.5 |
Total Software Revenue | Technology Enabled Products | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 5.6 | 4.2 |
Recurring | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 967 | 840.3 |
Recurring | Application Software | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 693.6 | 580.6 |
Recurring | Network Software | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 267.8 | 255.9 |
Recurring | Technology Enabled Products | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 5.6 | 3.8 |
Reoccurring | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 122.2 | 99.6 |
Reoccurring | Application Software | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 53.6 | 35.4 |
Reoccurring | Network Software | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 68.6 | 64.2 |
Reoccurring | Technology Enabled Products | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Non-recurring | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 182.4 | 180.2 |
Non-recurring | Application Software | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 148 | 145.4 |
Non-recurring | Network Software | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 34.4 | 34.4 |
Non-recurring | Technology Enabled Products | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0.4 |
Product Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 409.1 | 349.6 |
Product Revenue | Application Software | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Product Revenue | Network Software | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Product Revenue | Technology Enabled Products | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 409.1 | $ 349.6 |
Revenues from Contracts - Remai
Revenues from Contracts - Remaining Performance Obligations Narrative (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 4,354.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 2,932.4 |
Remaining performance obligations, percentage | 67% |
Remaining performance obligations, expected timing of satisfaction | 12 months |
Revenues from Contracts - Sch_2
Revenues from Contracts - Schedule of Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Unbilled receivables | $ 118.2 | $ 106.4 |
Deferred revenue – current | (1,507.7) | (1,583.8) |
Deferred revenue - non-current | (145.1) | (130.7) |
Net contract assets/(liabilities) | (1,534.6) | $ (1,608.1) |
Change in unbilled receivables | 11.8 | |
Change in deferred revenue - current | 76.1 | |
Change in deferred revenue - non-current | (14.4) | |
Change in net contract assets/(liabilities) | $ 73.5 |
Revenues from Contracts - Narra
Revenues from Contracts - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized from contract liability balance | $ 693.9 | $ 589.9 | |
Deferred commissions | $ 71.8 | $ 71.7 |