Document and Entity Information
Document and Entity Information - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2015 | |
Entity Information [Line Items] | ||
Entity Registrant Name | METTLER TOLEDO INTERNATIONAL INC/ | |
Entity Central Index Key | 1,037,646 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 26,759,102 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $ 9,458,220,734 |
Interim Consolidated Statements
Interim Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net sales | ||
Products | $ 413,292 | $ 412,904 |
Service | 126,382 | 122,797 |
Total net sales | 539,674 | 535,701 |
Cost of sales | ||
Products | 165,857 | 164,666 |
Service | 73,910 | 72,230 |
Gross profit | 299,907 | 298,805 |
Research and development | 28,973 | 28,461 |
Selling, general and administrative | 168,921 | 173,038 |
Amortization | 8,424 | 7,528 |
Interest Expense | 6,580 | 6,725 |
Restructuring Charges | 880 | 907 |
Other charges (income), net | (284) | (817) |
Earnings before taxes | 86,413 | 82,963 |
Provision for taxes | 20,739 | 19,912 |
Net Income (Loss) Attributable to Parent | $ 65,674 | $ 63,051 |
Basic earnings per common share: | ||
Net earnings | $ 2.44 | $ 2.24 |
Weighted average number of common shares | 26,931,293 | 28,115,220 |
Diluted earnings per common share: | ||
Net earnings | $ 2.40 | $ 2.19 |
Weighted average number of common and common equivalent shares | 27,421,019 | 28,762,935 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 72,506 | $ 56,795 |
Interim Consolidated Balance Sh
Interim Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 110,595 | $ 98,887 |
Trade accounts receivable, less allowances of $14,991 at March 31, 2016 and $14,435 at December 31, 2015 | 387,296 | 411,420 |
Inventories | 227,323 | 214,383 |
Current deferred tax assets, net | 70,039 | 67,483 |
Other current assets and prepaid expenses | 71,446 | 70,642 |
Total current assets | 866,699 | 862,815 |
Property, plant and equipment, net | 521,496 | 517,229 |
Goodwill | 448,183 | 446,284 |
Other intangible assets, net | 115,990 | 115,252 |
Non-current deferred tax assets, net | 23,275 | 22,873 |
Other non-current assets | 59,630 | 52,186 |
Total assets | 2,035,273 | 2,016,639 |
Current liabilities: | ||
Trade accounts payable | 120,536 | 142,075 |
Accrued and other liabilities | 126,139 | 127,645 |
Accrued compensation and related items | 90,155 | 136,414 |
Deferred revenue and customer prepayments | 102,771 | 88,829 |
Taxes payable | 64,956 | 63,241 |
Current deferred tax liabilities | 22,854 | 22,435 |
Short-term borrowings and current maturities of long-term debt | 17,381 | 14,488 |
Total current liabilities | 544,792 | 595,127 |
Long-term debt | 681,872 | 575,138 |
Non-current deferred tax liabilities | 64,089 | 71,365 |
Other non-current liabilities | 201,187 | 194,552 |
Total liabilities | $ 1,491,940 | 1,436,182 |
Commitments and contingencies (Note 14) | ||
Shareholders' equity: | ||
Preferred stock, $0.01 par value per share; authorized 10,000,000 shares | $ 0 | 0 |
Common stock, $0.01 par value per share; authorized 125,000,000 shares; issued 44,786,011 and 44,786,011 shares; outstanding 26,759,102 and 27,090,118 shares at March 31, 2016 and December 31, 2015, respectively | 448 | 448 |
Additional paid-in capital | 707,031 | 697,570 |
Treasury stock at cost (18,026,909 shares at March 31, 2016 and 17,695,893 shares at December 31, 2015) | (2,660,782) | (2,543,229) |
Retained earnings | 2,756,453 | 2,692,317 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (259,817) | (266,649) |
Total shareholders' equity | 543,333 | 580,457 |
Total liabilities and shareholders' equity | $ 2,035,273 | $ 2,016,639 |
Interim Consolidated Balance S4
Interim Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Allowance for Doubtful Accounts Receivable, Current | $ 14,991 | $ 14,435 |
Shareholders' equity: | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 44,786,011 | 44,786,011 |
Common stock, shares outstanding | 26,759,102 | 27,090,118 |
Treasury stock, shares | 18,026,909 | 17,695,893 |
Interim Consolidated Statement5
Interim Consolidated Statements of Shareholders' Equity and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2014 | $ 719,595 | $ 448 | $ 670,418 | $ (2,095,656) | $ 2,357,334 | $ (212,949) |
Beginning balance, shares at Dec. 31, 2014 | 28,243,007 | |||||
Stock Issued During Period, Value, Treasury Stock Reissued | 29,556 | 47,393 | (17,837) | |||
Exercise of stock options and restricted stock units, shares | 403,908 | |||||
Repurchases of common stock | (494,966) | (494,966) | ||||
Repurchases of common stock, shares | (1,556,797) | |||||
Tax benefit resulting from exercise of certain employee stock options | 12,929 | 12,929 | ||||
Adjustment to Additional Paid in Capital, Share-Based Compensation | 14,223 | 14,223 | ||||
Net Income (Loss) Attributable to Parent | 352,820 | 352,820 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (53,700) | (53,700) | ||||
Ending balance at Dec. 31, 2015 | $ 580,457 | $ 448 | 697,570 | (2,543,229) | 2,692,317 | (266,649) |
Ending balance, shares at Dec. 31, 2015 | 27,090,118 | 27,090,118 | ||||
Stock Issued During Period, Value, Treasury Stock Reissued | $ 5,909 | 7,447 | (1,538) | |||
Exercise of stock options and restricted stock units, shares | 59,321 | 59,321 | ||||
Repurchases of common stock | $ (125,000) | (125,000) | ||||
Repurchases of common stock, shares | (390,337) | (390,337) | ||||
Tax benefit resulting from exercise of certain employee stock options | $ 5,805 | 5,805 | ||||
Adjustment to Additional Paid in Capital, Share-Based Compensation | 3,656 | 3,656 | ||||
Net Income (Loss) Attributable to Parent | 65,674 | 65,674 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 6,832 | 6,832 | ||||
Ending balance at Mar. 31, 2016 | $ 543,333 | $ 448 | $ 707,031 | $ (2,660,782) | $ 2,756,453 | $ (259,817) |
Ending balance, shares at Mar. 31, 2016 | 26,759,102 | 26,759,102 |
Interim Consolidated Statement6
Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net Income (Loss) Attributable to Parent | $ 65,674 | $ 63,051 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 8,122 | 8,301 |
Amortization | 8,424 | 7,528 |
Deferred tax benefit | (3,304) | (1,670) |
Excess tax benefits from share-based payment arrangements | (5,805) | (441) |
Share-based compensation | 3,656 | 3,496 |
Other | (77) | (16) |
Increase (decrease) in cash resulting from changes in: | ||
Trade accounts receivable, net | 28,610 | 38,179 |
Inventories | (10,267) | (17,703) |
Other current assets | (1,453) | 183 |
Trade accounts payable | (21,905) | (13,927) |
Taxes payable | 519 | (2,685) |
Accruals and other | (36,494) | (25,700) |
Net cash provided by operating activities | 35,700 | 58,596 |
Cash flows from investing activities: | ||
Proceeds from sale of property, plant and equipment | 135 | 42 |
Purchase of property, plant and equipment | (14,348) | (18,539) |
Payments to Acquire Businesses, Net of Cash Acquired | (4,329) | (200) |
Payments for (Proceeds from) Derivative Instrument, Investing Activities | 2,128 | (8,384) |
Net cash used in investing activities | (16,414) | (27,081) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 229,413 | 150,996 |
Repayments of borrowings | (124,467) | (77,486) |
Proceeds from stock option exercises | 5,909 | 9,546 |
Repurchases of common stock | (125,000) | (123,745) |
Excess tax benefits from share - based payment arrangements | 5,805 | 441 |
Proceeds from (Payments for) Other Financing Activities | (125) | 0 |
Net cash used in financing activities | (8,465) | (40,248) |
Effect of exchange rate changes on cash and cash equivalents | 887 | (1,171) |
Net (decrease) increase in cash and cash equivalents | 11,708 | (9,904) |
Cash and cash equivalents: | ||
Beginning of period | 98,887 | 85,263 |
End of period | $ 110,595 | $ 75,359 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Mettler-Toledo International Inc. ("Mettler-Toledo" or the "Company") is a leading global supplier of precision instruments and services. The Company manufactures weighing instruments for use in laboratory, industrial, packaging, logistics and food retailing applications. The Company also manufactures several related analytical instruments and provides automated chemistry solutions used in drug and chemical compound discovery and development. In addition, the Company manufactures metal detection and other end-of-line inspection systems used in production and packaging and provides solutions for use in certain process analytics applications. The Company's primary manufacturing facilities are located in China, Germany, Switzerland, the United Kingdom and the United States. The Company's principal executive offices are located in Columbus, Ohio and Greifensee, Switzerland. The accompanying interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include all entities in which the Company has control, which are its wholly-owned subsidiaries. The interim consolidated financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . The accompanying interim consolidated financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for the full year ending December 31, 2016 . The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those estimates. A discussion of the Company’s critical accounting policies is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . All intercompany transactions and balances have been eliminated. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts represents the Company’s best estimate of probable credit losses in its existing trade accounts receivable. The Company determines the allowance based upon a review of both specific accounts for collection and the age of the accounts receivable portfolio. Inventories Inventories are valued at the lower of cost or net realizable value. Cost, which includes direct materials, labor and overhead, is generally determined using the first in, first out (FIFO) method. The estimated net realizable value is based on assumptions for future demand and related pricing. Adjustments to the cost basis of the Company’s inventory are made for excess and obsolete items based on usage, orders and technological obsolescence. If actual market conditions are less favorable than those projected by management, reductions in the value of inventory may be required. Inventories consisted of the following: March 31, December 31, Raw materials and parts $ 101,759 $ 98,252 Work-in-progress 39,835 35,100 Finished goods 85,729 81,031 $ 227,323 $ 214,383 Goodwill and Other Intangible Assets Goodwill, representing the excess of purchase price over the net asset value of companies acquired, and indefinite-lived intangible assets are not amortized, but are reviewed for impairment annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that an asset might be impaired. The annual evaluation for goodwill and indefinite-lived intangible assets are generally based on an assessment of qualitative and quantitative factors to determine whether it is more likely than not that the fair value of the underlying asset is less than its carrying amount. Other intangible assets include indefinite-lived assets and assets subject to amortization. Where applicable, amortization is charged on a straight-line basis over the expected period to be benefited. The straight-line method of amortization reflects an appropriate allocation of the cost of the intangible assets to earnings in proportion to the amount of economic benefits obtained by the Company in each reporting period. The Company assesses the initial acquisition of intangible assets in accordance with the provisions of ASC 805 “Business Combinations” and the continued accounting for previously recognized intangible assets and goodwill in accordance with the provisions of ASC 350 “Intangibles – Goodwill and Other” and ASC 360 “Property, Plant and Equipment.” Other intangible assets consisted of the following : March 31, 2016 December 31, 2015 Gross Amount Accumulated Amortization Intangibles, Net Gross Amount Accumulated Amortization Intangibles, Net Customer relationships $ 99,264 $ (31,892 ) $ 67,372 $ 98,175 $ (30,836 ) $ 67,339 Proven technology and patents 54,722 (33,470 ) 21,252 52,938 (32,444 ) 20,494 Tradename (finite life) 4,327 (2,200 ) 2,127 4,200 (2,158 ) 2,042 Tradename (indefinite life) 24,815 — 24,815 24,814 — 24,814 Other 2,146 (1,722 ) 424 2,111 (1,548 ) 563 $ 185,274 $ (69,284 ) $ 115,990 $ 182,238 $ (66,986 ) $ 115,252 The Company recognized amortization expense associated with the above intangible assets of $1.8 million and $1.6 million for the three months ended March 31, 2016 and 2015 , respectively. The annual aggregate amortization expense based on the current balance of other intangible assets is estimated at $6.8 million for 2016 , $6.5 million for 2017 , $6.2 million for 2018 , $5.9 million for 2019 , $5.6 million for 2020 and $5.3 million for 2021 . Purchased intangible amortization was $1.7 million , $1.1 million after tax and $1.5 million , $1.0 million after tax for the three months ended March 31, 2016 and 2015 . In addition to the above amortization, the Company recorded amortization expense associated with capitalized software of $6.6 million and $5.9 million for the three months ended March 31, 2016 and 2015 , respectively. Revenue Recognition Revenue is recognized when title to a product has transferred and any significant customer obligations have been fulfilled. Standard shipping terms are generally FOB shipping point in most countries and, accordingly, title and risk of loss transfers upon shipment. In countries where title cannot legally transfer before delivery, the Company defers revenue recognition until delivery has occurred. The Company generally maintains the right to accept or reject a product return in its terms and conditions and also maintains appropriate accruals for outstanding credits. Shipping and handling costs charged to customers are included in total net sales and the associated expense is recorded in cost of sales for all periods presented. Other than a few small software applications, the Company does not sell software products without the related hardware instrument as the software is embedded in the instrument. The Company’s products typically require no significant production, modification or customization of the hardware or software that is essential to the functionality of the products. To the extent the Company’s solutions have a post-shipment obligation, revenue is deferred until the obligation has been completed. The Company defers product revenue where installation is required, unless such installation is deemed perfunctory. The Company also sometimes enters into certain arrangements that require the separate delivery of multiple goods and/or services. These deliverables are accounted for separately if the deliverables have standalone value and the performance of undelivered items is probable and within the Company's control. The allocation of revenue between the separate deliverables is typically based on the relative selling price at the time of the sale in accordance with a number of factors including service technician billing rates, time to install and geographic location. Further, certain products are also sold through indirect distribution channels whereby the distributor assumes any further obligations to the customer upon title transfer. Revenue is recognized on these products upon transfer of title and risk of loss to its distributors. Distributor discounts are offset against revenue at the time such revenue is recognized. Service revenue not under contract is recognized upon the completion of the service performed. Spare parts sold on a stand-alone basis are recognized upon title and risk of loss transfer which is generally at the time of shipment. Revenues from service contracts are recognized ratably over the contract period. These contracts represent an obligation to perform repair and other services including regulatory compliance qualification, calibration, certification and preventative maintenance on a customer’s pre-defined equipment over the contract period. Service contracts are separately priced and payment is typically received from the customer at the beginning of the contract period. Warranty The Company generally offers one -year warranties on most of its products. Product warranties are recorded at the time revenue is recognized. While the Company engages in extensive product quality programs and processes, its warranty obligation is affected by product failure rates, material usage and service costs incurred in correcting a product failure. Employee Termination Benefits In situations where contractual termination benefits exist, the Company records accruals for employee termination benefits when it is probable that a liability has been incurred and the amount of the liability is reasonably estimable. All other employee termination arrangements are recognized and measured at their fair value at the communication date unless the employee is required to render additional service beyond the legal notification period, in which case the liability is recognized ratably over the future service period. Share-Based Compensation The Company recognizes share-based compensation expense within selling, general and administrative in the consolidated statements of operations and comprehensive income with a corresponding offset to additional paid-in capital in the consolidated balance sheet. The Company recorded $3.7 million and $3.5 million of share-based compensation expense for the three months ended March 31, 2016 and 2015 , respectively. Research and Development Research and development costs primarily consist of salaries, consulting and other costs. The Company expenses these costs as incurred. Recent Accounting Pronouncements In March 2016, the Company adopted ASU 2015-03 and ASU 2015-15, to ASC 835-30 "Interest - Imputation of Interest." The accounting guidance requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, but allows debt issuance costs related to line-of-credit arrangements to remain as an asset. The Company elected to continue to present unamortized debt issuance costs related to the credit facility as an other non-current asset. The Company applied the adoption of these standards retrospectively and reclassified $1.8 million of unamortized debt issuance costs from other non-current assets to long-term debt as of March 31, 2016 and December 31, 2015, respectively. The adoption of this guidance did not have a material impact on the Company's consolidated statement of financial position. In March 2016, the FASB issued ASU 2016-09, to ASC 718 "Compensation - Stock Compensation." The guidance allows for the simplification related to several aspects of the accounting for share-based payment transactions, including income tax consequences, the accounting for forfeitures, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance can be applied either on a retrospective or prospective basis and becomes effective for annual periods beginning after December 15, 2016. We are currently evaluating the impact the adoption of this guidance will have on the Company's consolidated results of operations, financial position, and disclosures. In February 2016, the FASB issued ASU 2016-02 to ASC 842 "Leases." The accounting guidance primarily requires lessees to recognize most leases on their balance sheet as a right to use asset and a lease liability, with the exception of short term leases. A lessee will continue to recognize lease expense on a straight-line basis for leases classified as operating leases. The guidance becomes effective for fiscal years beginning after December 15, 2018 and must be applied on a retrospective basis with early adoption permitted. The Company is currently evaluating the impact of this guidance on our financial statements and the timing of adoption. In November 2015, the FASB issued ASU 2015-17, to ASC 740 "Income Taxes." The guidance simplifies the balance sheet classification of deferred taxes. The new guidance requires that all deferred tax balances be presented as non-current. This change, which can be early adopted, conforms U.S. GAAP to IFRS. The guidance becomes effective for the Company for the year beginning January 1, 2017. The adoption of this guidance would have reduced current assets and increased non-current assets by approximately $70.0 million and reduced current liabilities and increased non-current liabilities by approximately $22.9 million on the Company's consolidated balance sheet at March 31, 2016. In May 2015, the FASB issued ASU 2015-07, to ASC 820 "Fair Value Measurements." ASU 2015-07 removes the requirement to categorize investments using the net asset value per share method within the fair value hierarchy. We are currently evaluating the impact this guidance will have on the Company's pension assets fair value hierarchy table which will be adopted in the fourth quarter 2016. In May 2014, the FASB issued ASU 2014-09, to ASC 606 "Revenue from Contracts with Customers." ASU 2014-09 provides authoritative guidance clarifying the principles for recognizing revenue and developing a common revenue standard for U.S. GAAP. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Additionally, the guidance requires improved disclosure to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The guidance becomes effective for the Company for the year beginning January 1, 2018. We are currently evaluating the impact the adoption of this guidance will have on the Company's consolidated results of operations, financial position, and disclosures. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Derivative [Line Items] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS The Company has limited involvement with derivative financial instruments and does not use them for trading purposes. The Company enters into certain interest rate swap agreements in order to manage its exposure to changes in interest rates. The amount of the Company's fixed obligation interest payments may change based upon the expiration dates of its interest rate swap agreements and the level and composition of its debt. The Company also enters into certain foreign currency forward contracts to limit the Company's exposure to currency fluctuations on the respective hedged items. As also mentioned in Note 6, the Company has designated its euro denominated debt as a hedge of a portion of its net investment in euro-denominated foreign operations. For additional disclosures on the fair value of financial instruments, also see Note 4 to the interim consolidated financial statements. Cash Flow Hedges In July 2012, the Company began entering into foreign currency forward contracts, designated as cash flow hedges, to hedge certain forecasted intercompany sales denominated in euro with its Swiss-based business. In January 2015, prior to the Swiss National Bank's abandonment of its previously established exchange rate floor of 1.20 Swiss francs per euro, the Company increased the notional amount of the cash flow hedges to a total notional value and average forward rate of Euro 86 million and 1.21 for contracts that matured in 2015 and Euro 67 million and 1.19 for contracts that mature in 2016. The notional amount of foreign currency forward contracts outstanding at March 31, 2016 was $57.9 million (Euro 51.6 million ) and was $73 million (Euro 67 million ) at December 31, 2015. The amount recognized in other comprehensive income (loss) during the three months period ended March 31, 2016 and 2015 was a loss of $0.5 million and a gain of $22.8 million , respectively. The Company has an interest rate swap agreement designated as a cash flow hedge. The agreement is a swap which has the effect of changing the floating rate LIBOR-based interest payments associated with $50 million in forecasted borrowings under the Company’s credit facility to a fixed obligation of 2.52% . The swap began in October 2015 and matures in October 2020. In March 2015, the Company entered into a forward-starting interest rate swap agreement. The agreement will change the floating rate LIBOR-based interest payments associated with $100 million in forecasted borrowings under the Company's credit agreement to a fixed obligation of 2.25% beginning in February 2017 and matures in February 2022. The Company's cash flow hedges are recorded gross at fair value in the consolidated balance sheet at March 31, 2016 and December 31, 2015 , respectively, and disclosed in Note 4 to the consolidated financial statements. Amounts reclassified into other comprehensive income and the effective portions of the cash flow hedges are further disclosed in Note 8 to the consolidated financial statements. A derivative gain of $3.4 million based upon interest rates and foreign currency rates at March 31, 2016 , is expected to be reclassified from other comprehensive income (loss) to earnings in the next twelve months. Through March 31, 2016, no hedge ineffectiveness has occurred in relation to the cash flow hedges. Other Derivatives The Company enters into foreign currency forward contracts in order to economically hedge short-term trade and non-trade intercompany balances largely denominated in Swiss franc, other major European currencies, and the Chinese Renminbi with its foreign businesses. In accordance with U.S. GAAP, these contracts are considered “derivatives not designated as hedging instruments.” Gains or losses on these instruments are reported in current earnings. The foreign currency forward contracts are recorded at fair value in the consolidated balance sheet at March 31, 2016 and December 31, 2015 as disclosed in Note 4. The Company recognized in other charges (income), a net gain of $1.0 million and a net loss $9.3 million during the three months ended March 31, 2016 and 2015, respectively, which was primarily offset by the underlying transaction losses and gains on the related intercompany balances. At March 31, 2016 and December 31, 2015 , these contracts had a notional value of $295.8 million and $318.7 million , respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS At March 31, 2016 and December 31, 2015 , the Company had derivative assets totaling $6.3 million and $8.2 million , respectively, and derivative liabilities totaling $9.3 million and $4.7 million , respectively. The fair values of the interest rate swap agreement, foreign currency forward contracts designated as cash flow hedges, and foreign currency forward contracts that economically hedge short-term intercompany balances are estimated based upon inputs from current valuation information obtained from dealer quotes and priced with observable market assumptions and appropriate valuation adjustments for credit risk. The Company has evaluated the valuation methodologies used to develop the fair values by dealers in order to determine whether such valuations are representative of an exit price in the Company’s principal market. In addition, the Company uses an internally developed model to perform testing on the valuations received from brokers. The Company has also considered both its own credit risk and counterparty credit risk in determining fair value and determined these adjustments were insignificant at March 31, 2016 and December 31, 2015 . At March 31, 2016 and December 31, 2015 , the Company had $17.1 million and $18.8 million of cash equivalents, respectively, the fair value of which is determined through quoted and corroborated prices in active markets. The fair value of cash equivalents approximates cost. The fair value of the Company's fixed interest rate debt was estimated using Level 2 inputs, primarily discounted cash flow models, based on estimated current rates offered for similar debt under current market conditions for the Company. The fair value of the Company's debt exceeds the carrying value by approximately $12.6 million as of March 31, 2016. The carrying value of the Company's debt exceeds the fair value by approximately $9.2 million as of December 31, 2015 . Under U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement consists of observable and unobservable inputs that reflect the assumptions that a market participant would use in pricing an asset or liability. A fair value hierarchy has been established that categorizes these inputs into three levels: Level 1: Quoted prices in active markets for identical assets and liabilities Level 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3: Unobservable inputs The following table presents for each of these hierarchy levels, the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 17,142 $ — $ 17,142 $ — $ 18,755 $ — $ 18,755 $ — Foreign currency forward contracts designated as cash flow hedge 5,100 — 5,100 — 7,056 — 7,056 — Foreign currency forward contracts not designated as hedging instruments 1,194 — 1,194 — 1,166 — 1,166 — Total $ 23,436 $ — $ 23,436 $ — $ 26,977 $ — $ 26,977 $ — Liabilities: Interest rate swap agreements $ 8,367 $ — $ 8,367 $ — $ 4,092 $ — $ 4,092 $ — Foreign currency forward contracts not designated as hedging instruments 964 — 964 — 625 — 625 — Total $ 9,331 $ — $ 9,331 $ — $ 4,717 $ — $ 4,717 $ — |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for taxes is based upon using the Company's projected annual effective tax rate of 24% for each of the three month periods ended March 31, 2016 and 2015. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consisted of the following at March 31, 2016 : March 31, 2016 U.S. Dollar Other Principal Trading Currencies Total $50 million Senior Notes, interest 3.67%, due December 17, 2022 $ 50,000 $ — $ 50,000 $50 million Senior Notes, interest 4.10%, due September 19, 2023 50,000 — 50,000 $125 million Senior Notes, interest 3.84%, due September 19, 2024 125,000 — 125,000 $125 million Senior Notes, interest 4.24%, due June 25, 2025 125,000 — 125,000 Euro 125 million Senior Notes, interest 1.47%, due June 17, 2030 — 140,150 140,150 Debt issuance costs, net (1,388 ) (406 ) (1,794 ) Total Senior Notes 348,612 139,744 488,356 $800 million Credit Agreement, interest at LIBOR plus 87.5 basis points 176,500 17,016 193,516 Other local arrangements — 17,381 17,381 Total debt 525,112 174,141 699,253 Less: current portion — (17,381 ) (17,381 ) Total long-term debt $ 525,112 $ 156,760 $ 681,872 As of March 31, 2016, the Company had $602.0 million of availability remaining under its Credit Agreement. 1.47% Euro Senior Notes The Company has designated the 1.47% Euro Senior Notes as a hedge of a portion of its net investment in euro-denominated foreign subsidiaries to reduce foreign currency risk associated with the net investment in these operations. Changes in the carrying value of this debt resulting from fluctuations in the euro to U.S. dollar exchange rate are recorded as foreign currency translation adjustments within other comprehensive income (loss). The unrealized loss recorded in other comprehensive income (loss) related to this net investment hedge was $3.6 million for the three months ended March 31, 2016. |
Share Repurchase Program and Tr
Share Repurchase Program and Treasury Stock | 3 Months Ended |
Mar. 31, 2016 | |
Share Repurchase Program and Treasury Stock [Abstract] | |
Treasury Stock [Text Block] | SHARE REPURCHASE PROGRAM AND TREASURY STOCK The Company has a share repurchase program of which there was $1.4 billion common shares remaining to be repurchased under the program as of March 31, 2016 . The share repurchases are expected to be funded from cash generated from operating activities, borrowings and existing cash balances. Repurchases will be made through open market transactions, and the amount and timing of repurchases will depend on business and market conditions, stock price, trading restrictions, the level of acquisition activity, and other factors. The Company has purchased 25.0 million shares since the inception of the program in 2004 through March 31, 2016 . During the three months ended March 31, 2016 and 2015 , the Company spent $125.0 million and $123.7 million on the repurchase of 390,337 shares and 400,845 shares at an average price per share of $320.22 and $308.69 , respectively. The Company reissued 59,321 shares and 125,398 shares held in treasury for the exercise of stock options and restricted stock units during the three months ended March 31, 2016 and 2015 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | ACCUMULATED OTHER COMPREHENSIVE INCOME The following table presents changes in accumulated other comprehensive income by component for the periods ended March 31, 2016 and 2015: Currency Translation Adjustment Net Unrealized Gain (Loss) on Cash Flow Hedging Arrangements, Net of Tax Pension and Post-Retirement Benefit Related Items, Net of Tax Total Balance at December 31, 2015 $ (57,394 ) $ 3,016 $ (212,271 ) $ (266,649 ) Other comprehensive income (loss), net of tax: Unrealized gains (losses) cash flow hedging arrangements — (2,653 ) — (2,653 ) Foreign currency translation adjustment 10,914 (554 ) (2,835 ) 7,525 Amounts recognized from accumulated other comprehensive income (loss), net of tax — (977 ) 2,937 1,960 Net change in other comprehensive income (loss), net of tax 10,914 (4,184 ) 102 6,832 Balance at March 31, 2016 $ (46,480 ) $ (1,168 ) $ (212,169 ) $ (259,817 ) Currency Translation Adjustment Net Unrealized Gain (Loss) on Cash Flow Hedging Arrangements, Net of Tax Pension and Post-Retirement Benefit Related Items, Net of Tax Total Balance at December 31, 2014 $ (4,960 ) $ (1,944 ) $ (206,045 ) $ (212,949 ) Other comprehensive income (loss), net of tax: Unrealized gains (losses) cash flow hedging arrangements — 18,359 — 18,359 Foreign currency translation adjustment (25,941 ) (1,547 ) 2,337 (25,151 ) Amounts recognized from accumulated other comprehensive income (loss), net of tax — (1,987 ) 2,523 536 Net change in other comprehensive income (loss), net of tax (25,941 ) 14,825 4,860 (6,256 ) Balance at March 31, 2015 $ (30,901 ) $ 12,881 $ (201,185 ) $ (219,205 ) The following table presents amounts recognized from accumulated other comprehensive income for the three months ended March 31 : 2016 2015 Location of Amounts Recognized in Earnings Effective portion of (gains) losses on cash flow hedging arrangements: Interest rate swap agreements $ 264 $ 765 Interest expense Foreign currency forward contracts (1,433 ) (3,091 ) Cost of sales - products Total before taxes (1,169 ) (2,326 ) Provision for taxes (192 ) (339 ) Provision for taxes Total, net of taxes $ (977 ) $ (1,987 ) Recognition of defined benefit pension and post-retirement items: Recognition of actuarial (gains) losses, plan amendments and prior service cost, before taxes $ 3,960 $ 3,441 (a) Provision for taxes 1,023 918 Provision for taxes Total, net of taxes $ 2,937 $ 2,523 (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and post-retirement cost. See Note 10 for additional details for the three months ended March 31, 2016 and 2015 . Comprehensive income (loss), net of tax consisted of the following: March 31, March 31, Net earnings $ 65,674 $ 63,051 Other comprehensive income (loss), net of tax 6,832 $ (6,256 ) Comprehensive income (loss), net of tax $ 72,506 $ 56,795 |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE In accordance with the treasury stock method, the Company has included the following common equivalent shares in the calculation of diluted weighted average number of common shares outstanding for the three months ended March 31 , relating to outstanding stock options and restricted stock units: 2016 2015 Three months ended 489,726 647,715 Outstanding options and restricted stock units to purchase or receive 176,917 and 198,508 shares of common stock for the three months ended March 31, 2016 and 2015 , respectively, have been excluded from the calculation of diluted weighted average number of common and common equivalent shares as such options and restricted stock units would be anti-dilutive. |
Net Periodic Benefit Cost
Net Periodic Benefit Cost | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
NET PERIODIC BENEFIT COST | NET PERIODIC BENEFIT COST Net periodic pension cost for the Company’s defined benefit pension plans and U.S. post-retirement medical plan includes the following components for the three months ended March 31 : U.S. Pension Benefits Non-U.S. Pension Benefits Other U.S. Post-retirement Benefits Total 2016 2015 2016 2015 2016 2015 2016 2015 Service cost, net $ 117 $ 209 $ 4,145 $ 4,745 $ — $ — $ 4,262 $ 4,954 Interest cost on projected benefit obligations 1,292 1,608 2,647 3,554 19 35 3,958 5,197 Expected return on plan assets (2,099 ) (2,394 ) (8,247 ) (9,299 ) — — (10,346 ) (11,693 ) Recognition of prior service cost — — (1,261 ) (973 ) (469 ) (469 ) (1,730 ) (1,442 ) Recognition of actuarial losses/(gains) 1,890 1,907 4,473 3,819 (673 ) (843 ) 5,690 4,883 Net periodic pension cost/(credit) $ 1,200 $ 1,330 $ 1,757 $ 1,846 $ (1,123 ) $ (1,277 ) $ 1,834 $ 1,899 As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 , the Company expects to make employer contributions of approximately $19.4 million to its non-U.S. pension plan and employer contributions of approximately $0.5 million to its U.S. post-retirement medical plan during the year ended December 31, 2016 . These estimates may change based upon several factors, including fluctuations in currency exchange rates, actual returns on plan assets and changes in legal requirements. In February 2016 the Company offered approximately 700 former employees, who have deferred vested pension plan benefits, a one-time option to receive a lump sum distribution of their benefits. Eligible participants had 45 days to make their election. Based upon the eligible participant acceptance, $14.6 million will be paid from plan assets to these former employees in the second quarter of 2016 with a corresponding decrease in the benefit obligation to these former employees. The Company will also incur a one-time non-cash settlement charge of approximately $8.3 million during the second quarter of 2016, which will be recorded in other charges (income), net. |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES For the three months ending March 31, 2016 , the Company incurred $0.9 million of restructuring expenses which primarily comprise employee related costs. Liabilities related to restructuring activities are included in accrued and other liabilities in the consolidated balance sheet. A rollforward of the Company’s accrual for restructuring activities for the three months ended March 31, 2016 is as follows: Total Balance at December 31, 2015 $ 12,211 Restructuring charges 880 Cash payments / utilization (1,841 ) Impact of foreign currency 173 Balance at March 31, 2016 $ 11,423 |
Other Charges (Income), Net
Other Charges (Income), Net | 3 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
OTHER CHARGES (INCOME), NET | OTHER CHARGES (INCOME), NET Other charges (income), net consists primarily of interest income, (gains) losses from foreign currency transactions and hedging activity, and other items. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING As disclosed in Note 17 to the Company's consolidated financial statements for the year ending December 31, 2015 , the Company has determined there are five reportable segments: U.S. Operations, Swiss Operations, Western European Operations, Chinese Operations and Other. The Company evaluates segment performance based on Segment Profit (gross profit less research and development and selling, general and administrative expenses, before amortization, interest expense, restructuring charges, other charges (income), net and taxes). The following tables show the operations of the Company’s reportable segments: Net Sales to Net Sales to For the three months ended External Other Total Net Segment March 31, 2016 Customers Segments Sales Profit Goodwill U.S. Operations $ 187,935 $ 19,630 $ 207,565 $ 29,155 $ 319,715 Swiss Operations 26,965 120,310 147,275 35,822 22,241 Western European Operations 137,651 38,547 176,198 20,190 91,482 Chinese Operations 84,947 45,927 130,874 36,626 692 Other (a) 102,176 1,354 103,530 11,094 14,053 Eliminations and Corporate (b) — (225,768 ) (225,768 ) (30,874 ) — Total $ 539,674 $ — $ 539,674 $ 102,013 $ 448,183 Net Sales to Net Sales to For the three months ended External Other Total Net Segment March 31, 2015 Customers Segments Sales Profit Goodwill U.S. Operations $ 178,907 $ 18,292 $ 197,199 $ 24,329 $ 308,863 Swiss Operations 30,888 118,022 148,910 35,592 22,507 Western European Operations 140,918 42,027 182,945 20,341 92,430 Chinese Operations 86,449 43,505 129,954 34,558 744 Other (a) 98,539 1,357 99,896 9,103 13,160 Eliminations and Corporate (b) — (223,203 ) (223,203 ) (26,617 ) — Total $ 535,701 $ — $ 535,701 $ 97,306 $ 437,704 (a) Other includes reporting units in Eastern Europe, Latin America, East Asia and other countries. (b) Eliminations and Corporate includes the elimination of inter-segment transactions and certain corporate expenses and intercompany investments, which are not included in the Company’s operating segments. A reconciliation of earnings before taxes to segment profit for the three months ended March 31 follows: Three Months Ended March 31, 2016 March 31, 2015 Earnings before taxes $ 86,413 $ 82,963 Amortization 8,424 7,528 Interest expense 6,580 6,725 Restructuring charges 880 907 Other charges (income), net (284 ) (817 ) Segment profit $ 102,013 $ 97,306 During the three months ended March 31, 2016 , restructuring charges of $0.9 million were recognized, of which $0.3 million , $0.4 million , $0.1 million , and $0.1 million related to the Company’s U.S., Swiss, China and Other operations, respectively. Restructuring charges of $0.9 million were recognized during the three months ended March 31, 2015 , of which $0.7 million , $0.1 million and $0.3 million related to the Company's Swiss, Chinese and Other operations, respectively offset by a credit of $0.2 million related to the Company’s Western European operations. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES The Company is party to various legal proceedings, including certain environmental matters, incidental to the normal course of business. Management does not expect that any of such proceedings, either individually or in the aggregate, will have a material adverse effect on the Company’s financial condition, results of operations or cash flows. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Trade Accounts Receivable | Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts represents the Company’s best estimate of probable credit losses in its existing trade accounts receivable. The Company determines the allowance based upon a review of both specific accounts for collection and the age of the accounts receivable portfolio. |
Inventories | Inventories Inventories are valued at the lower of cost or net realizable value. Cost, which includes direct materials, labor and overhead, is generally determined using the first in, first out (FIFO) method. The estimated net realizable value is based on assumptions for future demand and related pricing. Adjustments to the cost basis of the Company’s inventory are made for excess and obsolete items based on usage, orders and technological obsolescence. If actual market conditions are less favorable than those projected by management, reductions in the value of inventory may be required. Inventories consisted of the following: March 31, December 31, Raw materials and parts $ 101,759 $ 98,252 Work-in-progress 39,835 35,100 Finished goods 85,729 81,031 $ 227,323 $ 214,383 |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill, representing the excess of purchase price over the net asset value of companies acquired, and indefinite-lived intangible assets are not amortized, but are reviewed for impairment annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that an asset might be impaired. The annual evaluation for goodwill and indefinite-lived intangible assets are generally based on an assessment of qualitative and quantitative factors to determine whether it is more likely than not that the fair value of the underlying asset is less than its carrying amount. Other intangible assets include indefinite-lived assets and assets subject to amortization. Where applicable, amortization is charged on a straight-line basis over the expected period to be benefited. The straight-line method of amortization reflects an appropriate allocation of the cost of the intangible assets to earnings in proportion to the amount of economic benefits obtained by the Company in each reporting period. The Company assesses the initial acquisition of intangible assets in accordance with the provisions of ASC 805 “Business Combinations” and the continued accounting for previously recognized intangible assets and goodwill in accordance with the provisions of ASC 350 “Intangibles – Goodwill and Other” and ASC 360 “Property, Plant and Equipment.” Other intangible assets consisted of the following : March 31, 2016 December 31, 2015 Gross Amount Accumulated Amortization Intangibles, Net Gross Amount Accumulated Amortization Intangibles, Net Customer relationships $ 99,264 $ (31,892 ) $ 67,372 $ 98,175 $ (30,836 ) $ 67,339 Proven technology and patents 54,722 (33,470 ) 21,252 52,938 (32,444 ) 20,494 Tradename (finite life) 4,327 (2,200 ) 2,127 4,200 (2,158 ) 2,042 Tradename (indefinite life) 24,815 — 24,815 24,814 — 24,814 Other 2,146 (1,722 ) 424 2,111 (1,548 ) 563 $ 185,274 $ (69,284 ) $ 115,990 $ 182,238 $ (66,986 ) $ 115,252 The Company recognized amortization expense associated with the above intangible assets of $1.8 million and $1.6 million for the three months ended March 31, 2016 and 2015 , respectively. The annual aggregate amortization expense based on the current balance of other intangible assets is estimated at $6.8 million for 2016 , $6.5 million for 2017 , $6.2 million for 2018 , $5.9 million for 2019 , $5.6 million for 2020 and $5.3 million for 2021 . Purchased intangible amortization was $1.7 million , $1.1 million after tax and $1.5 million , $1.0 million after tax for the three months ended March 31, 2016 and 2015 . In addition to the above amortization, the Company recorded amortization expense associated with capitalized software of $6.6 million and $5.9 million for the three months ended March 31, 2016 and 2015 , respectively. |
Revenue Recognition | Revenue Recognition Revenue is recognized when title to a product has transferred and any significant customer obligations have been fulfilled. Standard shipping terms are generally FOB shipping point in most countries and, accordingly, title and risk of loss transfers upon shipment. In countries where title cannot legally transfer before delivery, the Company defers revenue recognition until delivery has occurred. The Company generally maintains the right to accept or reject a product return in its terms and conditions and also maintains appropriate accruals for outstanding credits. Shipping and handling costs charged to customers are included in total net sales and the associated expense is recorded in cost of sales for all periods presented. Other than a few small software applications, the Company does not sell software products without the related hardware instrument as the software is embedded in the instrument. The Company’s products typically require no significant production, modification or customization of the hardware or software that is essential to the functionality of the products. To the extent the Company’s solutions have a post-shipment obligation, revenue is deferred until the obligation has been completed. The Company defers product revenue where installation is required, unless such installation is deemed perfunctory. The Company also sometimes enters into certain arrangements that require the separate delivery of multiple goods and/or services. These deliverables are accounted for separately if the deliverables have standalone value and the performance of undelivered items is probable and within the Company's control. The allocation of revenue between the separate deliverables is typically based on the relative selling price at the time of the sale in accordance with a number of factors including service technician billing rates, time to install and geographic location. Further, certain products are also sold through indirect distribution channels whereby the distributor assumes any further obligations to the customer upon title transfer. Revenue is recognized on these products upon transfer of title and risk of loss to its distributors. Distributor discounts are offset against revenue at the time such revenue is recognized. Service revenue not under contract is recognized upon the completion of the service performed. Spare parts sold on a stand-alone basis are recognized upon title and risk of loss transfer which is generally at the time of shipment. Revenues from service contracts are recognized ratably over the contract period. These contracts represent an obligation to perform repair and other services including regulatory compliance qualification, calibration, certification and preventative maintenance on a customer’s pre-defined equipment over the contract period. Service contracts are separately priced and payment is typically received from the customer at the beginning of the contract period. |
Warranty | Warranty The Company generally offers one -year warranties on most of its products. Product warranties are recorded at the time revenue is recognized. While the Company engages in extensive product quality programs and processes, its warranty obligation is affected by product failure rates, material usage and service costs incurred in correcting a product failure. |
Employee Termination Benefits | Employee Termination Benefits In situations where contractual termination benefits exist, the Company records accruals for employee termination benefits when it is probable that a liability has been incurred and the amount of the liability is reasonably estimable. All other employee termination arrangements are recognized and measured at their fair value at the communication date unless the employee is required to render additional service beyond the legal notification period, in which case the liability is recognized ratably over the future service period. |
Share - Based Compensation | Share-Based Compensation The Company recognizes share-based compensation expense within selling, general and administrative in the consolidated statements of operations and comprehensive income with a corresponding offset to additional paid-in capital in the consolidated balance sheet. The Company recorded $3.7 million and $3.5 million of share-based compensation expense for the three months ended March 31, 2016 and 2015 , respectively. |
Research and Development | Research and Development Research and development costs primarily consist of salaries, consulting and other costs. The Company expenses these costs as incurred. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In March 2016, the Company adopted ASU 2015-03 and ASU 2015-15, to ASC 835-30 "Interest - Imputation of Interest." The accounting guidance requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, but allows debt issuance costs related to line-of-credit arrangements to remain as an asset. The Company elected to continue to present unamortized debt issuance costs related to the credit facility as an other non-current asset. The Company applied the adoption of these standards retrospectively and reclassified $1.8 million of unamortized debt issuance costs from other non-current assets to long-term debt as of March 31, 2016 and December 31, 2015, respectively. The adoption of this guidance did not have a material impact on the Company's consolidated statement of financial position. In March 2016, the FASB issued ASU 2016-09, to ASC 718 "Compensation - Stock Compensation." The guidance allows for the simplification related to several aspects of the accounting for share-based payment transactions, including income tax consequences, the accounting for forfeitures, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance can be applied either on a retrospective or prospective basis and becomes effective for annual periods beginning after December 15, 2016. We are currently evaluating the impact the adoption of this guidance will have on the Company's consolidated results of operations, financial position, and disclosures. In February 2016, the FASB issued ASU 2016-02 to ASC 842 "Leases." The accounting guidance primarily requires lessees to recognize most leases on their balance sheet as a right to use asset and a lease liability, with the exception of short term leases. A lessee will continue to recognize lease expense on a straight-line basis for leases classified as operating leases. The guidance becomes effective for fiscal years beginning after December 15, 2018 and must be applied on a retrospective basis with early adoption permitted. The Company is currently evaluating the impact of this guidance on our financial statements and the timing of adoption. In November 2015, the FASB issued ASU 2015-17, to ASC 740 "Income Taxes." The guidance simplifies the balance sheet classification of deferred taxes. The new guidance requires that all deferred tax balances be presented as non-current. This change, which can be early adopted, conforms U.S. GAAP to IFRS. The guidance becomes effective for the Company for the year beginning January 1, 2017. The adoption of this guidance would have reduced current assets and increased non-current assets by approximately $70.0 million and reduced current liabilities and increased non-current liabilities by approximately $22.9 million on the Company's consolidated balance sheet at March 31, 2016. In May 2015, the FASB issued ASU 2015-07, to ASC 820 "Fair Value Measurements." ASU 2015-07 removes the requirement to categorize investments using the net asset value per share method within the fair value hierarchy. We are currently evaluating the impact this guidance will have on the Company's pension assets fair value hierarchy table which will be adopted in the fourth quarter 2016. In May 2014, the FASB issued ASU 2014-09, to ASC 606 "Revenue from Contracts with Customers." ASU 2014-09 provides authoritative guidance clarifying the principles for recognizing revenue and developing a common revenue standard for U.S. GAAP. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Additionally, the guidance requires improved disclosure to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The guidance becomes effective for the Company for the year beginning January 1, 2018. We are currently evaluating the impact the adoption of this guidance will have on the Company's consolidated results of operations, financial position, and disclosures. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Components of inventories | Inventories consisted of the following: March 31, December 31, Raw materials and parts $ 101,759 $ 98,252 Work-in-progress 39,835 35,100 Finished goods 85,729 81,031 $ 227,323 $ 214,383 |
Components of other intangible assets | Other intangible assets consisted of the following : March 31, 2016 December 31, 2015 Gross Amount Accumulated Amortization Intangibles, Net Gross Amount Accumulated Amortization Intangibles, Net Customer relationships $ 99,264 $ (31,892 ) $ 67,372 $ 98,175 $ (30,836 ) $ 67,339 Proven technology and patents 54,722 (33,470 ) 21,252 52,938 (32,444 ) 20,494 Tradename (finite life) 4,327 (2,200 ) 2,127 4,200 (2,158 ) 2,042 Tradename (indefinite life) 24,815 — 24,815 24,814 — 24,814 Other 2,146 (1,722 ) 424 2,111 (1,548 ) 563 $ 185,274 $ (69,284 ) $ 115,990 $ 182,238 $ (66,986 ) $ 115,252 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | The following table presents for each of these hierarchy levels, the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 17,142 $ — $ 17,142 $ — $ 18,755 $ — $ 18,755 $ — Foreign currency forward contracts designated as cash flow hedge 5,100 — 5,100 — 7,056 — 7,056 — Foreign currency forward contracts not designated as hedging instruments 1,194 — 1,194 — 1,166 — 1,166 — Total $ 23,436 $ — $ 23,436 $ — $ 26,977 $ — $ 26,977 $ — Liabilities: Interest rate swap agreements $ 8,367 $ — $ 8,367 $ — $ 4,092 $ — $ 4,092 $ — Foreign currency forward contracts not designated as hedging instruments 964 — 964 — 625 — 625 — Total $ 9,331 $ — $ 9,331 $ — $ 4,717 $ — $ 4,717 $ — |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt consisted of the following at March 31, 2016 : March 31, 2016 U.S. Dollar Other Principal Trading Currencies Total $50 million Senior Notes, interest 3.67%, due December 17, 2022 $ 50,000 $ — $ 50,000 $50 million Senior Notes, interest 4.10%, due September 19, 2023 50,000 — 50,000 $125 million Senior Notes, interest 3.84%, due September 19, 2024 125,000 — 125,000 $125 million Senior Notes, interest 4.24%, due June 25, 2025 125,000 — 125,000 Euro 125 million Senior Notes, interest 1.47%, due June 17, 2030 — 140,150 140,150 Debt issuance costs, net (1,388 ) (406 ) (1,794 ) Total Senior Notes 348,612 139,744 488,356 $800 million Credit Agreement, interest at LIBOR plus 87.5 basis points 176,500 17,016 193,516 Other local arrangements — 17,381 17,381 Total debt 525,112 174,141 699,253 Less: current portion — (17,381 ) (17,381 ) Total long-term debt $ 525,112 $ 156,760 $ 681,872 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents changes in accumulated other comprehensive income by component for the periods ended March 31, 2016 and 2015: Currency Translation Adjustment Net Unrealized Gain (Loss) on Cash Flow Hedging Arrangements, Net of Tax Pension and Post-Retirement Benefit Related Items, Net of Tax Total Balance at December 31, 2015 $ (57,394 ) $ 3,016 $ (212,271 ) $ (266,649 ) Other comprehensive income (loss), net of tax: Unrealized gains (losses) cash flow hedging arrangements — (2,653 ) — (2,653 ) Foreign currency translation adjustment 10,914 (554 ) (2,835 ) 7,525 Amounts recognized from accumulated other comprehensive income (loss), net of tax — (977 ) 2,937 1,960 Net change in other comprehensive income (loss), net of tax 10,914 (4,184 ) 102 6,832 Balance at March 31, 2016 $ (46,480 ) $ (1,168 ) $ (212,169 ) $ (259,817 ) Currency Translation Adjustment Net Unrealized Gain (Loss) on Cash Flow Hedging Arrangements, Net of Tax Pension and Post-Retirement Benefit Related Items, Net of Tax Total Balance at December 31, 2014 $ (4,960 ) $ (1,944 ) $ (206,045 ) $ (212,949 ) Other comprehensive income (loss), net of tax: Unrealized gains (losses) cash flow hedging arrangements — 18,359 — 18,359 Foreign currency translation adjustment (25,941 ) (1,547 ) 2,337 (25,151 ) Amounts recognized from accumulated other comprehensive income (loss), net of tax — (1,987 ) 2,523 536 Net change in other comprehensive income (loss), net of tax (25,941 ) 14,825 4,860 (6,256 ) Balance at March 31, 2015 $ (30,901 ) $ 12,881 $ (201,185 ) $ (219,205 ) |
Disclosure of Reclassification Amount [Text Block] | The following table presents amounts recognized from accumulated other comprehensive income for the three months ended March 31 : 2016 2015 Location of Amounts Recognized in Earnings Effective portion of (gains) losses on cash flow hedging arrangements: Interest rate swap agreements $ 264 $ 765 Interest expense Foreign currency forward contracts (1,433 ) (3,091 ) Cost of sales - products Total before taxes (1,169 ) (2,326 ) Provision for taxes (192 ) (339 ) Provision for taxes Total, net of taxes $ (977 ) $ (1,987 ) Recognition of defined benefit pension and post-retirement items: Recognition of actuarial (gains) losses, plan amendments and prior service cost, before taxes $ 3,960 $ 3,441 (a) Provision for taxes 1,023 918 Provision for taxes Total, net of taxes $ 2,937 $ 2,523 |
Schedule of Comprehensive Income (Loss) [Table Text Block] | Comprehensive income (loss), net of tax consisted of the following: March 31, March 31, Net earnings $ 65,674 $ 63,051 Other comprehensive income (loss), net of tax 6,832 $ (6,256 ) Comprehensive income (loss), net of tax $ 72,506 $ 56,795 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Diluted weighted average number of common shares outstanding | In accordance with the treasury stock method, the Company has included the following common equivalent shares in the calculation of diluted weighted average number of common shares outstanding for the three months ended March 31 , relating to outstanding stock options and restricted stock units: 2016 2015 Three months ended 489,726 647,715 |
Net Periodic Benefit Cost (Tabl
Net Periodic Benefit Cost (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Net periodic benefit cost | Net periodic pension cost for the Company’s defined benefit pension plans and U.S. post-retirement medical plan includes the following components for the three months ended March 31 : U.S. Pension Benefits Non-U.S. Pension Benefits Other U.S. Post-retirement Benefits Total 2016 2015 2016 2015 2016 2015 2016 2015 Service cost, net $ 117 $ 209 $ 4,145 $ 4,745 $ — $ — $ 4,262 $ 4,954 Interest cost on projected benefit obligations 1,292 1,608 2,647 3,554 19 35 3,958 5,197 Expected return on plan assets (2,099 ) (2,394 ) (8,247 ) (9,299 ) — — (10,346 ) (11,693 ) Recognition of prior service cost — — (1,261 ) (973 ) (469 ) (469 ) (1,730 ) (1,442 ) Recognition of actuarial losses/(gains) 1,890 1,907 4,473 3,819 (673 ) (843 ) 5,690 4,883 Net periodic pension cost/(credit) $ 1,200 $ 1,330 $ 1,757 $ 1,846 $ (1,123 ) $ (1,277 ) $ 1,834 $ 1,899 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Company's accrual for restructuring activities | A rollforward of the Company’s accrual for restructuring activities for the three months ended March 31, 2016 is as follows: Total Balance at December 31, 2015 $ 12,211 Restructuring charges 880 Cash payments / utilization (1,841 ) Impact of foreign currency 173 Balance at March 31, 2016 $ 11,423 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Operations of the Company's operating segments | The following tables show the operations of the Company’s reportable segments: Net Sales to Net Sales to For the three months ended External Other Total Net Segment March 31, 2016 Customers Segments Sales Profit Goodwill U.S. Operations $ 187,935 $ 19,630 $ 207,565 $ 29,155 $ 319,715 Swiss Operations 26,965 120,310 147,275 35,822 22,241 Western European Operations 137,651 38,547 176,198 20,190 91,482 Chinese Operations 84,947 45,927 130,874 36,626 692 Other (a) 102,176 1,354 103,530 11,094 14,053 Eliminations and Corporate (b) — (225,768 ) (225,768 ) (30,874 ) — Total $ 539,674 $ — $ 539,674 $ 102,013 $ 448,183 Net Sales to Net Sales to For the three months ended External Other Total Net Segment March 31, 2015 Customers Segments Sales Profit Goodwill U.S. Operations $ 178,907 $ 18,292 $ 197,199 $ 24,329 $ 308,863 Swiss Operations 30,888 118,022 148,910 35,592 22,507 Western European Operations 140,918 42,027 182,945 20,341 92,430 Chinese Operations 86,449 43,505 129,954 34,558 744 Other (a) 98,539 1,357 99,896 9,103 13,160 Eliminations and Corporate (b) — (223,203 ) (223,203 ) (26,617 ) — Total $ 535,701 $ — $ 535,701 $ 97,306 $ 437,704 (a) Other includes reporting units in Eastern Europe, Latin America, East Asia and other countries. (b) Eliminations and Corporate includes the elimination of inter-segment transactions and certain corporate expenses and intercompany investments, which are not included in the Company’s operating segments. |
Reconciliation of earnings before taxes to segment profit | A reconciliation of earnings before taxes to segment profit for the three months ended March 31 follows: Three Months Ended March 31, 2016 March 31, 2015 Earnings before taxes $ 86,413 $ 82,963 Amortization 8,424 7,528 Interest expense 6,580 6,725 Restructuring charges 880 907 Other charges (income), net (284 ) (817 ) Segment profit $ 102,013 $ 97,306 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Components of inventory | ||
Raw materials and parts | $ 101,759 | $ 98,252 |
Work-in-progress | 39,835 | 35,100 |
Finished goods | 85,729 | 81,031 |
Total Inventory, Net | $ 227,323 | $ 214,383 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Intangible Assets [Line Items] | ||
Finite and Indefinite-Lived Intangible Assets, Gross, Total | $ 185,274 | $ 182,238 |
Total Accumulated Amortization | (69,284) | (66,986) |
Intangible Assets, Net (Excluding Goodwill) | 115,990 | 115,252 |
Tradename (indefinite life) [Member] | ||
Intangible Assets [Line Items] | ||
Gross amount, Tradename (indefinite life) | 24,815 | 24,814 |
Intangible Assets, Net (Excluding Goodwill) | 24,815 | 24,814 |
Customer Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Gross amount | 99,264 | 98,175 |
Accumulated Amortization | (31,892) | (30,836) |
Intangible Assets, Net (Excluding Goodwill) | 67,372 | 67,339 |
Proven technology and patents [Member] | ||
Intangible Assets [Line Items] | ||
Gross amount | 54,722 | 52,938 |
Accumulated Amortization | (33,470) | (32,444) |
Intangible Assets, Net (Excluding Goodwill) | 21,252 | 20,494 |
Tradename (indefinite life) [Member] | ||
Intangible Assets [Line Items] | ||
Gross amount | 4,327 | 4,200 |
Accumulated Amortization | (2,200) | (2,158) |
Intangible Assets, Net (Excluding Goodwill) | 2,127 | 2,042 |
Other Intangible Assets [Member] | ||
Intangible Assets [Line Items] | ||
Gross amount | 2,146 | 2,111 |
Accumulated Amortization | (1,722) | (1,548) |
Intangible Assets, Net (Excluding Goodwill) | $ 424 | $ 563 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Details Textuals) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Deferred Tax Assets, Net of Valuation Allowance, Current | $ 70,039,000 | $ 67,483,000 | |
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||
Amortization expense | 1,800,000 | $ 1,600,000 | |
Future Amortization Expense Current Year | 6,800,000 | ||
Aggregate amortization expense for 2016 | 6,500,000 | ||
Aggregate amortization expense for 2017 | 6,200,000 | ||
Aggregate amortization expense for 2018 | 5,900,000 | ||
Aggregate amortization expense for 2019 | 5,600,000 | ||
Aggregate amortization expense for 2020 | 5,300,000 | ||
Purchased Intangible Amortization, Gross | 1,700,000 | 1,500,000 | |
Purchased intangible amortization, net of tax | 1,100,000 | 1,000,000 | |
Amortization expense associated with capitalized software | $ 6,600,000 | 5,900,000 | |
Standard Warranty Period | one | ||
Share - based compensation expense | $ 3,700,000 | $ 3,500,000 | |
Unamortized Debt Issuance Expense | (1,794,000) | (1,800) | |
Deferred Tax Liabilities, Net, Current | $ 22,854,000 | $ 22,435,000 |
Financial Instruments (Details)
Financial Instruments (Details) $ in Thousands, € in Millions | 3 Months Ended | ||||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
swiss franc per euro floor | 1.2 | 1.2 | |||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 1,000 | $ (9,300) | |||
Not Designated as Hedging Instrument [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, Notional Amount | 295,800 | $ 318,700 | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 3,400 | ||||
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | (500) | 22,800 | |||
Gain (Loss) on Interest Rate Cash Flow Hedge Ineffectiveness | 0 | 0 | |||
2.52% $50 Million Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Line Of Credit Facility Forecasted Borrowing Amount | $ 50,000 | ||||
Derivative, Fixed Interest Rate | 2.52% | 2.52% | |||
Gain (Loss) on Interest Rate Cash Flow Hedge Ineffectiveness | $ 0 | $ 0 | |||
2.25% $100 Million Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Line Of Credit Facility Forecasted Borrowing Amount | $ 100,000 | ||||
Derivative, Fixed Interest Rate | 2.25% | 2.25% | |||
Derivative Maturing in 2015 [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value Local Currency | $ 86,000 | ||||
Derivative, Forward Exchange Rate | 1.21 | 1.21 | |||
Derivative Maturing in 2016 [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value Local Currency | $ 67,000 | ||||
Derivative, Forward Exchange Rate | 1.19 | 1.19 | |||
Derivative Maturing in 2016 [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, Notional Amount | $ 57,900 | $ 73,000 | |||
Notional Value Local Currency | € | € 51.6 | € 67 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Cash Equivalents | $ 17,100 | $ 18,800 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Cash Equivalents | 17,142 | 18,755 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 5,100 | 7,056 |
Foreign Currency Derivative Instruments Not Designated As Hedging Instruments Asset At Fair Value | 1,194 | 1,166 |
Total Assets at Fair Value | 23,436 | 26,977 |
Liabilities: | ||
Interest Rate Cash Flow Hedge Liability at Fair Value | 8,367 | 4,092 |
Foreign Currency Derivative Instruments Not Designated As Hedging Instruments Liability At Fair Value | 964 | 625 |
Total Liabilities at Fair Value | 9,331 | 4,717 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash Equivalents | 0 | 0 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | 0 |
Foreign Currency Derivative Instruments Not Designated As Hedging Instruments Asset At Fair Value | 0 | 0 |
Total Assets at Fair Value | 0 | 0 |
Liabilities: | ||
Interest Rate Cash Flow Hedge Liability at Fair Value | 0 | 0 |
Foreign Currency Derivative Instruments Not Designated As Hedging Instruments Liability At Fair Value | 0 | 0 |
Total Liabilities at Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Cash Equivalents | 17,142 | 18,755 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 5,100 | 7,056 |
Foreign Currency Derivative Instruments Not Designated As Hedging Instruments Asset At Fair Value | 1,194 | 1,166 |
Total Assets at Fair Value | 23,436 | 26,977 |
Liabilities: | ||
Interest Rate Cash Flow Hedge Liability at Fair Value | 8,367 | 4,092 |
Foreign Currency Derivative Instruments Not Designated As Hedging Instruments Liability At Fair Value | 964 | 625 |
Total Liabilities at Fair Value | 9,331 | 4,717 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Cash Equivalents | 0 | 0 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | 0 |
Foreign Currency Derivative Instruments Not Designated As Hedging Instruments Asset At Fair Value | 0 | 0 |
Total Assets at Fair Value | 0 | 0 |
Liabilities: | ||
Interest Rate Cash Flow Hedge Liability at Fair Value | 0 | 0 |
Foreign Currency Derivative Instruments Not Designated As Hedging Instruments Liability At Fair Value | 0 | 0 |
Total Liabilities at Fair Value | $ 0 | $ 0 |
Fair Value Measurements (Deta35
Fair Value Measurements (Details Textuals) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative Assets | $ 6,300 | $ 8,200 |
Derivative Liabilities | 9,300 | 4,700 |
Cash Equivalents | 17,100 | 18,800 |
Change in Carrying Value Verse Fair Value of Long Term Debt | 12,600 | 9,200 |
Fair Value, Measurements, Recurring [Member] | ||
Cash Equivalents | $ 17,142 | $ 18,755 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Effective Income Tax Rate, Continuing Operations | 24.00% |
Debt (Details)
Debt (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Senior Notes | $ 488,356,000 | |
Unamortized Debt Issuance Expense | (1,794,000) | $ (1,800) |
Debt, Long-term and Short-term, Combined Amount | 699,253,000 | |
Short-term borrowings and current maturities of long-term debt | 17,381,000 | 14,488,000 |
Long-term Debt, Excluding Current Maturities | 681,872,000 | $ 575,138,000 |
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | 3,600,000 | |
3.67 Percent Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 50,000,000 | |
Debt Instrument, Face Amount | $ 50,000,000 | |
Debt Instrument, Maturity Date | Dec. 17, 2022 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.67% | |
4.10% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 50,000,000 | |
Debt Instrument, Face Amount | $ 50,000,000 | |
Debt Instrument, Maturity Date | Sep. 19, 2023 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.10% | |
3.84% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 125,000,000 | |
Debt Instrument, Face Amount | $ 125,000,000 | |
Debt Instrument, Maturity Date | Sep. 19, 2024 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.84% | |
4.24% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 125,000,000 | |
Debt Instrument, Face Amount | $ 125,000,000 | |
Debt Instrument, Maturity Date | Jun. 25, 2025 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.24% | |
1.47% EURO Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 140,150,000 | |
Debt Instrument, Face Amount | $ 125,000,000 | |
Debt Instrument, Maturity Date | Jun. 17, 2030 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.47% | |
$ 800 Million Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 601,956,000 | |
Long-term Line of Credit | 193,516,000 | |
Other Local Arrangements [Member] | ||
Debt Instrument [Line Items] | ||
Other Borrowings | 17,381,000 | |
Us Dollar Amounts Member | ||
Debt Instrument [Line Items] | ||
Senior Notes | 348,612,000 | |
Unamortized Debt Issuance Expense | (1,388,000) | |
Debt, Long-term and Short-term, Combined Amount | 525,112,000 | |
Short-term borrowings and current maturities of long-term debt | 0 | |
Long-term Debt, Excluding Current Maturities | 525,112,000 | |
Us Dollar Amounts Member | 3.67 Percent Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 50,000,000 | |
Us Dollar Amounts Member | 4.10% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 50,000,000 | |
Us Dollar Amounts Member | 3.84% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 125,000,000 | |
Us Dollar Amounts Member | 4.24% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 125,000,000 | |
Us Dollar Amounts Member | 1.47% EURO Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 0 | |
Us Dollar Amounts Member | $ 800 Million Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | 176,500,000 | |
Us Dollar Amounts Member | Other Local Arrangements [Member] | ||
Debt Instrument [Line Items] | ||
Other Borrowings | 0 | |
Other Principal Trading Currencies [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 139,744,000 | |
Unamortized Debt Issuance Expense | (406,000) | |
Debt, Long-term and Short-term, Combined Amount | 174,141,000 | |
Short-term borrowings and current maturities of long-term debt | 17,381,000 | |
Long-term Debt, Excluding Current Maturities | 156,760,000 | |
Other Principal Trading Currencies [Member] | 3.67 Percent Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 0 | |
Other Principal Trading Currencies [Member] | 4.10% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 0 | |
Other Principal Trading Currencies [Member] | 3.84% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 0 | |
Other Principal Trading Currencies [Member] | 4.24% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 0 | |
Other Principal Trading Currencies [Member] | 1.47% EURO Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 140,150,000 | |
Other Principal Trading Currencies [Member] | $ 800 Million Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | 17,016,000 | |
Other Principal Trading Currencies [Member] | Other Local Arrangements [Member] | ||
Debt Instrument [Line Items] | ||
Other Borrowings | $ 17,381,000 |
Share Repurchase Program and 38
Share Repurchase Program and Treasury Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Share Repurchase Program and Treasury Stock (Textuals) [Abstract] | |||
Authorized amount under share repurchase program | $ 1,360,000 | ||
Shares Purchased Under Share Repurchase Program | 25,000,000 | ||
Repurchases of common stock | $ (125,000) | $ (123,745) | $ (494,966) |
Number of shares repurchased | 390,337 | 400,845 | |
Average price of share repurchased, per share | $ 320.22 | $ 308.69 | |
Exercise of stock options and restricted stock units, shares reissued | 59,321 | 125,398 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (259,817) | $ (219,205) | $ (266,649) | $ (212,949) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (2,653) | 18,359 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 7,525 | (25,151) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,960 | 536 | ||
Other Comprehensive Income (Loss), Net of Tax | 6,832 | (6,256) | ||
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (46,480) | (30,901) | (57,394) | (4,960) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 10,914 | (25,941) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax | 10,914 | (25,941) | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,168) | 12,881 | 3,016 | (1,944) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (2,653) | 18,359 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (554) | (1,547) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (977) | (1,987) | ||
Other Comprehensive Income (Loss), Net of Tax | (4,184) | 14,825 | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (212,169) | (201,185) | $ (212,271) | $ (206,045) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (2,835) | 2,337 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2,937 | 2,523 | ||
Other Comprehensive Income (Loss), Net of Tax | $ 102 | $ 4,860 |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Income Details 1 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest Expense | $ 6,580 | $ 6,725 | |
Cost of Goods Sold | 165,857 | 164,666 | |
Income Tax Expense (Benefit) | 20,739 | 19,912 | |
Net Income (Loss) Attributable to Parent | 65,674 | 63,051 | $ 352,820 |
Net Unrealized Gain (Loss) on Cash Flow Hedging Arrangements, Net Of Tax [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest Expense | 264 | 765 | |
Cost of Goods Sold | (1,433) | (3,091) | |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | (1,169) | (2,326) | |
Income Tax Expense (Benefit) | (192) | (339) | |
Net Income (Loss) Attributable to Parent | (977) | (1,987) | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, Portion Attributable to Parent | 3,960 | 3,441 | |
Income Tax Expense (Benefit) | 1,023 | 918 | |
Net Income (Loss) Attributable to Parent | $ (2,937) | $ (2,523) |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Income Details 2 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Net Income (Loss) Attributable to Parent | $ 65,674 | $ 63,051 | $ 352,820 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 6,832 | (6,256) | $ (53,700) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 72,506 | $ 56,795 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Weighted Average Number Diluted Shares Outstanding Adjustment [Abstract] | ||
Weighted Average Number of Shares Outstanding, Diluted, Total | 489,726 | 647,715 |
Antidilutive Shares Outstanding | ||
Weighted Average Number of Shares Outstanding, Antidilutive, Total | 176,917 | 198,508 |
Net Periodic Benefit Cost (Deta
Net Periodic Benefit Cost (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
Components of Net periodic pension cost for the Company's defined benefit pension plans and U.S. post-retirement medical plan | ||
Service cost, net | $ 4,262 | $ 4,954 |
Interest cost on projected benefit obligations | 3,958 | 5,197 |
Expected return on plan assets | (10,346) | (11,693) |
Net amortization and deferral | (1,730) | (1,442) |
Recognition of actuarial losses/(gains) | 5,690 | 4,883 |
Net periodic pension cost/(credit) | $ 1,834 | 1,899 |
Net Periodic Benefit Cost (Textuals) [Abstract] | ||
Number of Employees offered Lump Sum Settlement of US Pension Plan | 700 | |
Defined Benefit Plan, Settlements, Benefit Obligation | $ 14,600 | |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 8,300 | |
United States Pension Plans of US Entity, Defined Benefit [Member] | ||
Components of Net periodic pension cost for the Company's defined benefit pension plans and U.S. post-retirement medical plan | ||
Service cost, net | 117 | 209 |
Interest cost on projected benefit obligations | 1,292 | 1,608 |
Expected return on plan assets | (2,099) | (2,394) |
Net amortization and deferral | 0 | 0 |
Recognition of actuarial losses/(gains) | 1,890 | 1,907 |
Net periodic pension cost/(credit) | 1,200 | 1,330 |
Foreign Pension Plans, Defined Benefit [Member] | ||
Components of Net periodic pension cost for the Company's defined benefit pension plans and U.S. post-retirement medical plan | ||
Service cost, net | 4,145 | 4,745 |
Interest cost on projected benefit obligations | 2,647 | 3,554 |
Expected return on plan assets | (8,247) | (9,299) |
Net amortization and deferral | (1,261) | (973) |
Recognition of actuarial losses/(gains) | 4,473 | 3,819 |
Net periodic pension cost/(credit) | 1,757 | 1,846 |
Net Periodic Benefit Cost (Textuals) [Abstract] | ||
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 19,400 | |
United States Postretirement Benefit Plans of US Entity, Defined Benefit [Member] | ||
Components of Net periodic pension cost for the Company's defined benefit pension plans and U.S. post-retirement medical plan | ||
Service cost, net | 0 | 0 |
Interest cost on projected benefit obligations | 19 | 35 |
Expected return on plan assets | 0 | 0 |
Net amortization and deferral | (469) | (469) |
Recognition of actuarial losses/(gains) | (673) | (843) |
Net periodic pension cost/(credit) | (1,123) | $ (1,277) |
Net Periodic Benefit Cost (Textuals) [Abstract] | ||
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | $ 500 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Company's accrual for restructuring activities:- | ||
Beginning Restructuring Accrual Balance, as of December 31, 2015 | $ 12,211 | |
Restructuring Charges | 880 | $ 907 |
Restructuring Cash Payments | (1,841) | |
Impact of foreign currency on restructuring reserve | 173 | |
Ending Restructuring Accrual Balance, as of March 31, 2016 | $ 11,423 |
Restructuring Charges Restructu
Restructuring Charges Restructuring Charges (textuals) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Restructuring Charges [Abstract] | ||
Restructuring Charges | $ 880 | $ 907 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Operations of the Company's operating segments | |||
Net Sales to External Customers | $ 539,674 | $ 535,701 | |
Revenue Transactions With Other Operating Segments | 0 | 0 | |
Total net sales | 539,674 | 535,701 | |
Segment Profit | 102,013 | 97,306 | |
Goodwill | 448,183 | 437,704 | $ 446,284 |
Us Operations segment Member | |||
Operations of the Company's operating segments | |||
Net Sales to External Customers | 187,935 | 178,907 | |
Revenue Transactions With Other Operating Segments | 19,630 | 18,292 | |
Total net sales | 207,565 | 197,199 | |
Segment profit | 29,155 | 24,329 | |
Goodwill | 319,715 | 308,863 | |
Swiss Operations segment Member | |||
Operations of the Company's operating segments | |||
Net Sales to External Customers | 26,965 | 30,888 | |
Revenue Transactions With Other Operating Segments | 120,310 | 118,022 | |
Total net sales | 147,275 | 148,910 | |
Segment profit | 35,822 | 35,592 | |
Goodwill | 22,241 | 22,507 | |
Western European Operations [Member] | |||
Operations of the Company's operating segments | |||
Net Sales to External Customers | 137,651 | 140,918 | |
Revenue Transactions With Other Operating Segments | 38,547 | 42,027 | |
Total net sales | 176,198 | 182,945 | |
Segment profit | 20,190 | 20,341 | |
Goodwill | 91,482 | 92,430 | |
Chinese Operations [Member] | |||
Operations of the Company's operating segments | |||
Net Sales to External Customers | 84,947 | 86,449 | |
Revenue Transactions With Other Operating Segments | 45,927 | 43,505 | |
Total net sales | 130,874 | 129,954 | |
Segment profit | 36,626 | 34,558 | |
Goodwill | 692 | 744 | |
Other Operations [Member] | |||
Operations of the Company's operating segments | |||
Net Sales to External Customers | 102,176 | 98,539 | |
Revenue Transactions With Other Operating Segments | 1,354 | 1,357 | |
Total net sales | 103,530 | 99,896 | |
Segment profit | 11,094 | 9,103 | |
Goodwill | 14,053 | 13,160 | |
Intersegment Elimination [Member] | |||
Operations of the Company's operating segments | |||
Net Sales to External Customers | 0 | 0 | |
Revenue Transactions With Other Operating Segments | (225,768) | (223,203) | |
Total net sales | (225,768) | (223,203) | |
Segment profit | (30,874) | (26,617) | |
Goodwill | $ 0 | $ 0 |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reconciliation of earnings before taxes to segment profit | ||
Earnings before taxes | $ 86,413 | $ 82,963 |
Amortization | 8,424 | 7,528 |
Interest Expense | 6,580 | 6,725 |
Restructuring Charges | 880 | 907 |
Other charges (income), net | (284) | (817) |
Segment Profit Information | $ 102,013 | $ 97,306 |
Segment Reporting (Details Text
Segment Reporting (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting (Textuals) [Abstract] | ||
Restructuring Charges | $ 880 | $ 907 |
Western European Operations [Member] | ||
Segment Reporting (Textuals) [Abstract] | ||
Restructuring Charges | (200) | |
Chinese Operations [Member] | ||
Segment Reporting (Textuals) [Abstract] | ||
Restructuring Charges | 100 | 100 |
Other Operations [Member] | ||
Segment Reporting (Textuals) [Abstract] | ||
Restructuring Charges | 300 | 100 |
Us Operations segment Member | ||
Segment Reporting (Textuals) [Abstract] | ||
Restructuring Charges | 300 | |
Swiss Operations segment Member | ||
Segment Reporting (Textuals) [Abstract] | ||
Restructuring Charges | $ 700 | $ 400 |