Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2019shares | |
Entity Information [Line Items] | |
Entity Registrant Name | METTLER TOLEDO INTERNATIONAL INC/ |
Entity Central Index Key | 0001037646 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 24,803,286 |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Interim Consolidated Statements
Interim Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | $ 679,452 | $ 660,821 |
Gross profit | 388,319 | 374,933 |
Research and development | 36,053 | 34,713 |
Selling, general and administrative | 204,425 | 200,674 |
Amortization | 12,222 | 11,735 |
Interest Expense | 9,094 | 8,359 |
Restructuring Charges | 1,523 | 4,413 |
Other charges (income), net | (674) | (2,400) |
Earnings before taxes | 125,676 | 117,439 |
Provision for taxes | 13,871 | 24,135 |
Net Income (Loss) Attributable to Parent | $ 111,805 | $ 93,304 |
Basic earnings per common share: | ||
Net earnings | $ 4.50 | $ 3.66 |
Weighted average number of common shares | 24,851,340 | 25,468,323 |
Diluted earnings per common share: | ||
Net earnings | $ 4.42 | $ 3.58 |
Weighted average number of common and common equivalent shares | 25,310,525 | 26,095,647 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 124,465 | $ 122,194 |
Product [Member] | ||
Cost of Goods and Services Sold | 210,216 | 202,587 |
Revenues | 524,347 | 510,946 |
Service [Member] | ||
Cost of Goods and Services Sold | 80,917 | 83,301 |
Revenues | $ 155,105 | $ 149,875 |
Interim Consolidated Balance Sh
Interim Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 126,480 | $ 178,110 |
Trade accounts receivable, less allowances of $16,571 at March 31, 2019 and $15,469 at December 31, 2018 | 489,281 | 535,528 |
Inventories | 282,087 | 268,821 |
Other current assets and prepaid expenses | 71,536 | 63,401 |
Total current assets | 969,384 | 1,045,860 |
Property, plant and equipment, net | 722,926 | 717,526 |
Goodwill | 535,517 | 534,780 |
Other intangible assets, net | 213,977 | 217,308 |
Non-current deferred tax assets, net | 34,495 | 35,066 |
Other non-current assets | 160,398 | 68,307 |
Total assets | 2,636,697 | 2,618,847 |
Current liabilities: | ||
Trade accounts payable | 174,639 | 196,641 |
Accrued and other liabilities | 161,438 | 156,449 |
Accrued compensation and related items | 112,414 | 152,516 |
Deferred revenue and customer prepayments | 128,962 | 105,381 |
Taxes payable | 76,713 | 73,777 |
Short-term borrowings and current maturities of long-term debt | 53,798 | 49,670 |
Total current liabilities | 707,964 | 734,434 |
Long-term debt | 1,008,485 | 985,021 |
Non-current deferred tax liabilities | 39,648 | 48,818 |
Other non-current liabilities | 318,850 | 260,511 |
Total liabilities | 2,074,947 | 2,028,784 |
Commitments and contingencies (Note 17) | ||
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 24,803,286 and 24,921,963 shares at March 31, 2019 and December 31, 2018, respectively | 448 | 448 |
Additional paid-in capital | 769,950 | 764,717 |
Treasury stock at cost (19,982,725 shares at March 31, 2019 and 19,864,048 shares at December 31, 2018) | (3,972,597) | (3,814,604) |
Retained earnings | 4,053,703 | 3,941,916 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (289,754) | (302,414) |
Total shareholders' equity | 561,750 | 590,063 |
Total liabilities and shareholders' equity | $ 2,636,697 | $ 2,618,847 |
Interim Consolidated Balance _2
Interim Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 16,571 | $ 15,469 |
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 | 24,803,286 | 24,921,963 |
Treasury stock, shares | 19,982,725 | 19,864,048 |
Interim Consolidated Statemen_2
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, 2017 | $ 547,280 | $ 448 | $ 747,138 | $ (3,368,182) | $ 3,433,282 | $ (265,406) |
Beginning balance, shares at Dec. 31, 2017 | 25,541,393 | |||||
Exercise of stock options and restricted stock units, shares | 39,362 | 39,362 | ||||
Share based compensation, exercise value | $ 5,669 | 0 | 5,900 | 231 | 0 | |
Repurchases of common stock | $ (118,750) | (118,750) | ||||
Repurchases of common stock, shares | (187,880) | (187,880) | ||||
Adjustment to Additional Paid in Capital, Share-Based Compensation | $ 4,354 | 4,354 | ||||
Net Income (Loss) Attributable to Parent | 93,304 | 93,304 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 28,890 | 28,890 | ||||
Ending balance at Mar. 31, 2018 | 560,747 | $ 448 | 751,492 | (3,481,032) | 3,526,355 | (236,516) |
Ending balance, shares at Mar. 31, 2018 | 25,392,875 | |||||
Beginning balance at Dec. 31, 2018 | $ 590,063 | $ 448 | 764,717 | (3,814,604) | 3,941,916 | (302,414) |
Beginning balance, shares at Dec. 31, 2018 | 24,921,963 | 24,921,963 | ||||
Exercise of stock options and restricted stock units, shares | 171,752 | 171,752 | ||||
Share based compensation, exercise value | $ 28,990 | 751 | 28,257 | 18 | 0 | |
Repurchases of common stock | $ (186,250) | (186,250) | ||||
Repurchases of common stock, shares | (290,429) | (290,429) | ||||
Adjustment to Additional Paid in Capital, Share-Based Compensation | $ 4,482 | 4,482 | ||||
Net Income (Loss) Attributable to Parent | 111,805 | 111,805 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 12,660 | 12,660 | ||||
Ending balance at Mar. 31, 2019 | $ 561,750 | $ 448 | $ 769,950 | $ (3,972,597) | $ 4,053,703 | $ (289,754) |
Ending balance, shares at Mar. 31, 2019 | 24,803,286 | 24,803,286 |
Interim Consolidated Statemen_3
Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net Income (Loss) Attributable to Parent | $ 111,805 | $ 93,304 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 9,767 | 9,157 |
Amortization | 12,222 | 11,735 |
Deferred tax benefit | (14,939) | (6,416) |
Share-based compensation | 4,482 | 4,354 |
Other | 22 | (1,269) |
Increase (decrease) in cash resulting from changes in: | ||
Trade accounts receivable, net | 45,410 | 54,302 |
Inventories | (13,092) | (15,707) |
Other current assets | (6,678) | 2,419 |
Trade accounts payable | (24,326) | (3,451) |
Taxes payable | 3,150 | (11,640) |
Other Operating Activities, Cash Flow Statement | (29,028) | (60,224) |
Net cash provided by operating activities | 98,795 | 76,564 |
Cash flows from investing activities: | ||
Proceeds from sale of property, plant and equipment | 72 | 4,507 |
Purchase of property, plant and equipment | (22,404) | (29,774) |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (500) |
Payments for (Proceeds from) Derivative Instrument, Investing Activities | 4,802 | 3,304 |
Net cash used in investing activities | (17,530) | (22,463) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 302,707 | 336,512 |
Repayments of borrowings | (271,646) | (331,114) |
Proceeds from stock option exercises | 28,990 | 5,669 |
Repurchases of common stock | (186,250) | (118,750) |
Payment for Contingent Consideration Liability, Financing Activities | (10,000) | 0 |
Net cash used in financing activities | (136,199) | (107,683) |
Effect of exchange rate changes on cash and cash equivalents | 3,304 | 3,844 |
Net (decrease) increase in cash and cash equivalents | (51,630) | (49,738) |
Cash and cash equivalents: | ||
Beginning of period | 178,110 | 148,687 |
End of period | $ 126,480 | $ 98,949 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 . 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, 2019 are not necessarily indicative of the results to be expected for the full year ending December 31, 2019 . 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, 2018 . All intercompany transactions and balances have been eliminated. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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 $ 128,100 $ 122,945 Work-in-progress 50,911 47,098 Finished goods 103,076 98,778 $ 282,087 $ 268,821 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 factors to determine whether it is more likely than not that the fair value of the 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, 2019 December 31, 2018 Gross Amount Accumulated Amortization Intangibles, Net Gross Amount Accumulated Amortization Intangibles, Net Customer relationships $ 197,916 $ (52,318 ) $ 145,598 $ 197,942 $ (49,887 ) $ 148,055 Proven technology and patents 73,906 (43,518 ) 30,388 73,880 (42,750 ) 31,130 Tradename (finite life) 4,580 (2,914 ) 1,666 4,504 (2,874 ) 1,630 Tradename (indefinite life) 35,479 — 35,479 35,500 — 35,500 Other 3,708 (2,862 ) 846 3,684 (2,691 ) 993 $ 315,589 $ (101,612 ) $ 213,977 $ 315,510 $ (98,202 ) $ 217,308 The Company recognized amortization expense associated with the above intangible assets of $3.7 million and $3.6 million for the three months ended March 31, 2019 and 2018 , respectively. The annual aggregate amortization expense based on the current balance of other intangible assets is estimated at $15.4 million for 2019 , $15.3 million for 2020 , $13.8 million for 2021 , $12.6 million for 2022 , $13.2 million for 2023 and $11.6 million for 2024 . Purchased intangible amortization was $3.5 million , $2.6 million after tax, and $3.4 million , $2.5 million after tax, for the three months ended March 31, 2019 and 2018 , respectively. In addition to the above amortization, the Company recorded amortization expense associated with capitalized software of $8.5 million and $8.1 million for the three months ended March 31, 2019 and 2018 , respectively. Revenue Recognition Product revenue is recognized from contracts with customers when a customer has obtained control of a product. The Company considers control to have transferred based upon shipping terms. To the extent the Company’s arrangements have a separate performance obligation, revenue related to any post-shipment performance obligation is deferred until completed. Shipping and handling costs charged to customers are included in total net sales and the associated expense is a component of cost of sales. Certain products are also sold through indirect distribution channels whereby the distributor assumes any further obligations to the end customer. Revenue is recognized on these distributor arrangements upon transfer of control to the distributor. Contracts do not contain variable pricing arrangements that are retrospective, except for rebate programs. Rebates are estimated based on expected sales volumes and offset against revenue at the time such revenue is recognized. 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. The related provisions for estimated returns and rebates are immaterial to the consolidated financial statements. Certain of the Company’s product arrangements include separate performance obligations, primarily related to installation. Such performance obligations are accounted for separately when the deliverables have stand-alone value and the satisfaction of the undelivered performance obligations is probable and within the Company's control. The allocation of revenue between the performance obligations is based on the observable stand-alone selling prices at the time of the sale in accordance with a number of factors including service technician billing rates, time to install, and geographic location. Software is generally not considered a distinct performance obligation with the exception of a few small software applications. The Company generally does not sell software products without the related hardware instrument as the software is embedded in the product. 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. Service revenue not under contract is recognized upon the completion of the service performed. Revenue from spare parts sold on a stand-alone basis is recognized when control is transferred to the customer, which is generally at the time of shipment or delivery. Revenue from service contracts is recognized ratably over the contract period using a time-based method. 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. Leases The Company considers an arrangement a lease if the arrangement transfers the right to control the use of an identified asset in exchange for consideration. The Company has operating leases, but does not have financing leases. Operating lease right-of-use assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make payments arising from the lease agreement. These assets and liabilities are recognized at the commencement of the lease based upon the present value of the lease payments over the lease term. Lease payments include both lease and non-lease components for items or activities that transfer a good and service. Vehicle lease and non-lease components are separately accounted for based on standalone value. Real estate lease and non-lease components are accounted for as a single component. Operating lease right-of-use assets include initial direct costs, advanced lease payments and lease incentives. The lease term reflects the noncancellable period of the lease together with periods covered by an option to extend or terminate the lease when management is reasonably certain that it will exercise such option. The Company generally uses its incremental borrowing rate at the lease commencement date in determining the present value of lease payments as the information necessary to determine the rate implicit in the lease is not readily available. The incremental borrowing rate reflects similar terms by geographic location to the underlying leases. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease payments consist of non-lease services related to the lease. Variable lease payments are excluded from the right-of-use asset and lease liabilities and are expensed as incurred. Short-term leases are less than one year without purchase or renewal options that are reasonably certain to be exercised and are recognized on a straight-line basis over the lease term. The right-of-use asset is tested for impairment in accordance with ASC 360. 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 obligations are 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 $4.5 million and $4.4 million of share-based compensation expense for the three months ended March 31, 2019 and 2018 , respectively. Research and Development Research and development costs primarily consist of salaries, consulting and other costs. The Company expenses these costs as incurred. Business Combinations and Asset Acquisitions The Company accounts for business acquisitions under the accounting standards for business combinations. The results of each acquisition are included in the Company's consolidated results as of the acquisition date. The purchase price of an acquisition is allocated to tangible and intangible assets and assumed liabilities based on their estimated fair values and any consideration in excess of the net assets acquired is recognized as goodwill. Acquisition transaction costs are expensed when incurred. In circumstances where an acquisition involves a contingent consideration arrangement, the Company recognizes a liability equal to the fair value of the expected contingent payments as of the acquisition date. Subsequent changes in the fair value of the contingent consideration are recorded to other charges (income), net. Recent Accounting Pronouncements In August 2018 the FASB issued ASU 2018-14 "Compensation - Retirement Benefit" which amends the current disclosure requirements for defined benefit pension plans and other post-retirement plans. The changes in the disclosures will be applied retrospectively and becomes effective December 15, 2020 with early adoption permitted. The Company is currently evaluating the impact of this guidance on the benefit plan disclosures and the timing of adoption. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE On January 1, 2018, the Company adopted ASC 606 "Revenue from Contracts with Customers" and all the related amendments using the modified retrospective method, whereby the adoption did not impact any prior periods. The effect of adopting the new standard did not require any cumulative effect adjustment to retained earnings as of January 1, 2018. There was no impact to our consolidated statements of operations, balance sheet, or statement of cash flows as of and for the period ended March 31, 2018. The Company disaggregates revenue from contracts with customers by product, service, timing of revenue recognition, and geography. A summary by the Company’s reportable segments follows: For the three month ended March 31, 2019 U.S. Operations Swiss Operations Western European Operations Chinese Operations Other Operations Total Product Revenue $ 174,256 $ 26,665 $ 116,555 $ 111,416 $ 95,455 $ 524,347 Service Revenue: Point in time 49,651 4,951 33,939 7,704 24,018 120,263 Over time 10,743 1,961 15,412 2,603 4,123 34,842 Total $ 234,650 $ 33,577 $ 165,906 $ 121,723 $ 123,596 $ 679,452 For the three month ended March 31, 2018 U.S. Operations Swiss Operations Western European Operations Chinese Operations Other Operations Total Product Revenue $ 172,501 $ 25,565 $ 116,932 $ 104,292 $ 91,656 $ 510,946 Service Revenue: Point in time 47,619 4,830 34,590 7,127 24,237 118,403 Over time 9,625 2,071 13,850 2,511 3,415 31,472 Total $ 229,745 $ 32,466 $ 165,372 $ 113,930 $ 119,308 $ 660,821 In certain circumstances, our reporting units sell directly into other geographies. A breakdown of net sales to external customers by geographic customer destination for the three months ended March 31 follows: 2019 2018 Americas $ 258,631 $ 252,279 Europe 209,555 205,840 Asia / Rest of World 211,266 202,702 Total $ 679,452 $ 660,821 The Company's global revenue mix by product category is laboratory ( 53% of sales), industrial ( 40% of sales) and retail ( 7% of sales). The Company's product revenue by reportable segment is proportionately similar to the Company's global mix except the Company's Swiss Operations is largely comprised of laboratory products, while the Company's Chinese Operations has a slightly higher percentage of industrial products. A breakdown of the Company’s sales by product category for the three months ended March 31 follows: 2019 2018 Laboratory $ 359,732 $ 345,159 Industrial 271,320 262,656 Retail 48,400 53,006 Total $ 679,452 $ 660,821 The payment terms in the Company’s contracts with customers do not exceed one year and therefore contracts do not contain a significant financing component. In most cases, after appropriate credit evaluations, payments are due in arrears and are recognized as receivables. Unbilled revenue is recorded when performance obligations have been satisfied, but not yet billed to the customer. Unbilled revenue as of March 31, 2019 and December 31, 2018 was $16.2 million and $12.4 million respectively, and is included within accounts receivable. Deferred revenue and customer prepayments are recorded when cash payments are received or due in advance of the performance obligation being satisfied. Deferred revenue primarily includes prepaid service contracts, as well as deferred installation. Changes in the components of deferred revenue and customer prepayments during the periods ended March 31, 2019 and 2018 are as follows: 2019 2018 Beginning balances as of December 31 $ 105,381 $ 107,166 Customer pre-payments/deferred revenue 167,599 151,009 Revenue recognized (144,303 ) (129,796 ) Foreign currency translation 285 2,325 Ending balance as of March 31 $ 128,962 $ 130,704 The Company generally expenses sales commissions when incurred because the contract period is one year or less. These costs are recorded within selling, general, and administrative expenses. The Company has not disclosed the value of unsatisfied performance obligations other than customer pre-payments and deferred revenue above as most contracts have an expected length of one year or less and amounts greater than one year are immaterial. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
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. For additional disclosures on derivative instruments regarding balance sheet location, fair value, and the amounts reclassified into other comprehensive income and the effective portions of the cash flow hedges, also see Note 6 and Note 10 to the interim consolidated financial statements. As also mentioned in Note 8, the Company has designated its euro-denominated debt as a hedge of a portion of its net investment in euro-denominated foreign subsidiary. Cash Flow Hedges In February 2019, the Company entered into a cross currency swap arrangement designated as a cash flow hedge. The agreement converts $50 million of borrowings under the Company's credit facility into synthetic Swiss franc debt which allows the Company to effectively change the floating rate LIBOR-based interest payments, excluding the credit spread to a fixed Swiss franc income of 0.78% . The swap began in February 2019 and matures in June 2021. In 2017, the Company entered into a cross currency swap arrangement designated as a cash flow hedge. The agreement converts $100 million of borrowings under the Company's credit facility into synthetic Swiss franc debt which allows the Company to effectively change the floating rate LIBOR-based interest payments, including the credit spread to a fixed Swiss franc income of 0.01% . The swap began in June 2017 and matures in June 2019. In 2015, the Company entered into 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 $100 million in borrowings under the Company's credit agreement to a fixed obligation of 2.25% . The swap began in February 2017 and matures in February 2022. In 2013, the Company entered into 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 borrowings under the Company’s credit agreement to a fixed obligation of 2.52% beginning in October 2015 and matures in October 2020. The Company's cash flow hedges are recorded gross at fair value in the consolidated balance sheet at March 31, 2019 and December 31, 2018 , respectively. A derivative gain of $2.3 million based upon interest rates at March 31, 2019 , is expected to be reclassified from other comprehensive income (loss) to earnings in the next twelve months. Through March 31, 2019 , 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, 2019 and December 31, 2018 , as disclosed in Note 6. The Company recognized in other charges (income) a net gain of $4.7 million and $5.7 million during the three months ended March 31, 2019 and 2018 , respectively, which offset the related transaction gains (losses) associated with these contracts. At March 31, 2019 and December 31, 2018 , these contracts had a notional value of $436.5 million and $436.7 million , respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company has limited involvement with derivative financial instruments. At March 31, 2019 and December 31, 2018 , the Company had derivative assets totaling $3.4 million and $3.2 million , respectively, and derivative liabilities totaling $1.8 million and $1.1 million , respectively. The Company has limited involvement with derivative financial instruments and therefore does not present all the required disclosures in tabular format. The fair values of the interest rate swap agreements, the cross currency swap agreement, 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, 2019 and December 31, 2018 . 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 the Company’s assets and liabilities, which are all categorized as Level 2, that are measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018 . The Company does not have any assets or liabilities which are categorized as Level 1 or Level 3. March 31, 2019 December 31, 2018 Balance Sheet Location Foreign currency forward contracts not designated as hedging instruments $ 1,175 $ 1,534 Other current assets and prepaid expenses Cash Flow Hedges: Interest rate swap agreements — 545 Other non-current assets Cross currency swap agreement 2,239 1,154 Other current assets and prepaid expenses Total derivative assets $ 3,414 $ 3,233 Foreign currency forward contracts not designated as hedging instruments $ 878 $ 1,059 Accrued and other liabilities Cash Flow Hedges: Interest rate swap agreements 411 27 Other non-current liabilities Cross currency swap agreement 556 — Other non-current liabilities Total derivative liabilities $ 1,845 $ 1,086 At March 31, 2019 and December 31, 2018 , the Company had $13.7 million and $9.0 million of cash equivalents, respectively, the fair value of which is determined using Level 2 inputs, 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 $10.4 million as of March 31, 2019 . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's reported tax rate was 11% and 21% during the three months ended March 31, 2019 and 2018, respectively. The provision for taxes is based upon using the Company's projected annual effective tax rate of 20.5% and 22% before non-recurring discrete tax items during 2019 and 2018, respectively. The difference between the Company's projected annual effective tax rate and the reported tax rate is related to the timing of excess tax benefits associated with stock option exercises. On December 22, 2017, the Tax Cuts and Jobs Act (the "Act") significantly revised U.S. corporate income tax law. The Company's accounting for the above items was based upon reasonable estimates of the tax effects of the Act, and its evaluation of recently issued regulatory guidance. In January 2019, further interpretive guidance was issued related to Transition Tax. The Company has completed its analysis of this recently issued guidance and concluded there is no additional impact to its financial position, results of operations, or cash flows. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consisted of the following at March 31, 2019 : March 31, 2019 U.S. Dollar Other Principal Trading Currencies Total 3.67% $50 million Senior Notes due December 17, 2022 $ 50,000 $ — $ 50,000 4.10% $50 million Senior Notes due September 19, 2023 50,000 — 50,000 3.84% $125 million Senior Notes due September 19, 2024 125,000 — 125,000 4.24% $125 million Senior Notes due June 25, 2025 125,000 — 125,000 1.47% Euro 125 million Senior Notes due June 17, 2030 — 140,750 140,750 Senior notes debt issuance costs, net (862 ) (321 ) (1,183 ) Total Senior Notes 349,138 140,429 489,567 $1.1 billion Credit Agreement, interest at LIBOR plus 87.5 basis points 440,532 78,386 518,918 Other local arrangements 1,261 52,537 53,798 Total debt 790,931 271,352 1,062,283 Less: current portion (1,261 ) (52,537 ) (53,798 ) Total long-term debt $ 789,670 $ 218,815 $ 1,008,485 As of March 31, 2019 , the Company had $575.2 million of availability remaining under its Credit Agreement. In April 2019, the Company entered into an agreement to issue and sell $75 million of ten-year Senior Notes in a private placement. The Company will issue the Senior Notes with a fixed interest rate of 3.91% ("3.91% Senior Notes") in June 2019. The 3.91% Senior Notes are unsecured obligations of the Company and will mature in June 2029. Interest on the 3.91% Senior Notes is payable semi-annually in June and December of each year. The 3.91% Senior Notes contain customary affirmative and negative covenants including, among others, limitations on the Company and its subsidiaries with respect to incurrence of liens and priority indebtedness, disposition of assets, mergers, and transactions with affiliates. The note purchase agreement also requires the Company to maintain a consolidated interest coverage ratio of more than 3.5 to 1.0 and a consolidated leverage ratio of less than 3.5 to 1.0. The agreement contains customary events of defaults with customary grace periods, as applicable. Other Local Arrangements In 2018, two of the Company's non-U.S. pension plans issued loans totaling $39.6 million (Swiss franc 38 million) to a wholly owned subsidiary of the Company. The loans have the same terms and conditions which include an interest rate of Swiss franc LIBOR plus 87.5 basis points, a maturity date of April 2019, and a one year mutual renewal term and, as such, are classified as short-term debt on the Company's consolidated balance sheet. 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 a euro-denominated foreign subsidiary to reduce foreign currency risk associated with this net investment. 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 pre-tax unrealized gain (loss) recorded in other comprehensive income (loss) related to this net investment hedge was a gain of $2.3 million and a loss of $5.5 million for the three months ended March 31, 2019 and 2018 , respectively. The Company has a gain of $0.9 million recorded in accumulated other comprehensive income (loss) as of March 31, 2019. |
Share Repurchase Program and Tr
Share Repurchase Program and Treasury Stock | 3 Months Ended |
Mar. 31, 2019 | |
Share Repurchase Program and Treasury Stock [Abstract] | |
Treasury Stock [Text Block] | SHARE REPURCHASE PROGRAM AND TREASURY STOCK In November 2018, the Company's Board of Directors authorized an additional $2.0 billion to the share repurchase program which has $1.9 billion of remaining availability as of March 31, 2019 . The share repurchases are expected to be funded from cash generated from operating activities, borrowings, and cash balances. Repurchases will be made through open market transactions, and the amount and timing of purchases will depend on business and market conditions, the stock price, trading restrictions, the level of acquisition activity, and other factors. The Company has purchased 27.8 million common shares since the inception of the program in 2004 through March 31, 2019 . During the three months ended March 31, 2019 and 2018 , the Company spent $186.3 million and $118.8 million on the repurchase of 290,429 shares and 187,880 shares at an average price per share of $641.27 and $632.03 , respectively. The Company reissued 171,752 shares and 39,362 shares held in treasury for the exercise of stock options and restricted stock units during the three months ended March 31, 2019 and 2018 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | ACCUMULATED COMPREHENSIVE AND OTHER COMPREHENSIVE INCOME Comprehensive income (loss), net of tax consisted of the following: March 31, March 31, 2018 Net earnings $ 111,805 $ 93,304 Other comprehensive income (loss), net of tax 12,660 $ 28,890 Comprehensive income (loss), net of tax $ 124,465 $ 122,194 The following table presents changes in accumulated other comprehensive income (loss) by component for the periods ended March 31, 2019 and 2018 : 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, 2018 $ (63,913 ) $ 702 $ (239,203 ) $ (302,414 ) Other comprehensive income (loss), net of tax: Unrealized gains (losses) cash flow hedging arrangements — (308 ) — (308 ) Foreign currency translation adjustment 8,664 — 1,736 10,400 Amounts recognized from accumulated other comprehensive income (loss), net of tax — (446 ) 3,014 2,568 Net change in other comprehensive income (loss), net of tax 8,664 (754 ) 4,750 12,660 Balance at March 31, 2019 $ (55,249 ) $ (52 ) $ (234,453 ) $ (289,754 ) 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, 2017 $ (31,340 ) $ (1,081 ) $ (232,985 ) $ (265,406 ) Other comprehensive income (loss), net of tax: Unrealized gains (losses) cash flow hedging arrangements — 5,915 — 5,915 Foreign currency translation adjustment 28,969 — (6,464 ) 22,505 Amounts recognized from accumulated other comprehensive income (loss), net of tax — (3,215 ) 3,685 470 Net change in other comprehensive income (loss), net of tax 28,969 2,700 (2,779 ) 28,890 Balance at March 31, 2018 $ (2,371 ) $ 1,619 $ (235,764 ) $ (236,516 ) The following table presents amounts recognized from accumulated other comprehensive income (loss) for the three months ended March 31 : 2019 2018 Location of Amounts Recognized in Earnings Effective portion of (gains) losses on cash flow hedging arrangements: Interest rate swap agreements $ (62 ) $ 277 Interest expense Cross currency swap (433 ) (3,710 ) (a) Total before taxes (495 ) (3,433 ) Provision for taxes (49 ) (218 ) Provision for taxes Total, net of taxes $ (446 ) $ (3,215 ) Recognition of defined benefit pension and post-retirement items: Recognition of actuarial (gains) losses, plan amendments and prior service cost, before taxes $ 3,889 $ 4,811 (b) Provision for taxes 875 1,126 Provision for taxes Total, net of taxes $ 3,014 $ 3,685 (a) The cross currency swap reflects an unrealized loss of $0.6 million recorded in other charges (income) that was offset by the underlying unrealized loss on the hedged debt. The cross currency swap also reflects a realized gain of $1.0 million recorded in interest expense for the three months ended March 31, 2019 . (b) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and post-retirement cost. See Note 12 for additional details for the three months ended March 31, 2019 and 2018 . |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE In accordance with the treasury stock method, the Company has included 459,185 and 627,324 common equivalent shares in the calculation of diluted weighted average number of common shares outstanding for the three months ended March 31 , 2019 and 2018, respectively, relating to outstanding stock options and restricted stock units. Outstanding options and restricted stock units to purchase or receive 90,435 and 56,224 shares of common stock for the three months ended March 31, 2019 and 2018 , 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, 2019 | |
Retirement Benefits [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 2019 2018 2019 2018 2019 2018 2019 2018 Service cost, net $ 266 $ 272 $ 3,686 $ 3,921 $ — $ — $ 3,952 $ 4,193 Interest cost on projected benefit obligations 1,146 1,061 2,558 2,223 16 16 3,720 3,300 Expected return on plan assets (1,472 ) (1,732 ) (7,301 ) (7,987 ) — — (8,773 ) (9,719 ) Recognition of prior service cost — — (1,702 ) (1,794 ) — (93 ) (1,702 ) (1,887 ) Recognition of actuarial losses/(gains) 593 1,451 5,171 5,560 (173 ) (313 ) 5,591 6,698 Net periodic pension cost/(credit) $ 533 $ 1,052 $ 2,412 $ 1,923 $ (157 ) $ (390 ) $ 2,788 $ 2,585 As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , the Company expects to make employer contributions of approximately $25.3 million to its non-U.S. pension plan and employer contributions of approximately $0.4 million to its U.S. post-retirement medical plan during the year ended December 31, 2019 . These estimates may change based upon several factors, including fluctuations in currency exchange rates, actual returns on plan assets and changes in legal requirements. |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES For the three months ending March 31, 2019 , the Company incurred $1.5 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, 2019 is as follows: Total Balance at December 31, 2018 $ 7,972 Restructuring charges 1,523 Cash payments / utilization (3,692 ) Impact of foreign currency (60 ) Balance at March 31, 2019 $ 5,743 |
Other Charges (Income), Net
Other Charges (Income), Net | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER CHARGES (INCOME), NET | OTHER CHARGES (INCOME), NET Other charges (income), net includes non-service pension costs (benefits), (gains) losses from foreign currency transactions and related hedging activities, interest income and other items. Non-service pension benefits for the three months ended March 31, 2019 and 2018 were $1.2 million and $1.6 million , respectively. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 , 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, 2019 Customers Segments Sales Profit Goodwill U.S. Operations $ 234,650 $ 26,145 $ 260,795 $ 37,985 $ 410,021 Swiss Operations 33,577 153,731 187,308 53,522 21,757 Western European Operations 165,906 44,045 209,951 25,725 88,208 Chinese Operations 121,723 56,857 178,580 59,484 663 Other (a) 123,596 1,261 124,857 13,187 14,868 Eliminations and Corporate (b) — (282,039 ) (282,039 ) (42,062 ) — Total $ 679,452 $ — $ 679,452 $ 147,841 $ 535,517 Net Sales to Net Sales to For the three months ended External Other Total Net Segment March 31, 2018 Customers Segments Sales Profit Goodwill U.S. Operations $ 229,745 $ 23,666 $ 253,411 $ 34,245 $ 409,471 Swiss Operations 32,466 143,582 176,048 45,975 22,866 Western European Operations 165,372 41,012 206,384 18,282 95,938 Chinese Operations 113,930 60,407 174,337 59,553 722 Other (a) 119,308 1,640 120,948 13,881 15,787 Eliminations and Corporate (b) — (270,307 ) (270,307 ) (32,390 ) — Total $ 660,821 $ — $ 660,821 $ 139,546 $ 544,784 (a) Other includes reporting units in Southeast Asia, Latin America, Eastern Europe 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, 2019 March 31, 2018 Earnings before taxes $ 125,676 $ 117,439 Amortization 12,222 11,735 Interest expense 9,094 8,359 Restructuring charges 1,523 4,413 Other charges (income), net (674 ) (2,400 ) Segment profit $ 147,841 $ 139,546 During the three months ended March 31, 2019 , restructuring charges of $1.5 million were recognized, of which $0.5 million and $1.0 million , related to the Company’s U.S. and Western European operations, respectively. Restructuring charges of $4.4 million were recognized during the three months ended March 31, 2018 , of which $3.6 million , $0.4 million , and $0.4 million related to the Company's U.S., Swiss, and Western European operations, respectively. |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASES The Company adopted ASC 842 "Leases" with an effective date of January 1, 2019. The operating lease right-of-use asset was $92.7 million , and the lease liability was $93.5 million at inception. The Company elected the practical expedients package under ASC 842 and accordingly did not reassess any previously expired or existing arrangements, and related classification under ASC 840. The Company's operating leases primarily comprise real estate and vehicles. Real estate leases are largely related to sales and marketing, service and administrative offices, while vehicle leases are primarily related to the Company's field sales and service organization. The consolidated balance sheet included the following balances as of March 31, 2019: March 31, 2019 Balance Sheet Location Right-of-use assets, net $ 86,547 Other non-current assets Current lease liability $ 26,210 Accrued and other liabilities Non-current lease liability 60,626 Other non-current liabilities Total operating lease liability $ 86,836 The lease right-of-use asset, net increased total assets as of March 31, 2019 for U.S. Operations by $35.4 million , Swiss Operations by $1.0 million , Western European Operations by $21.9 million , Chinese Operations by $3.5 million , Other by $22.8 million , and Eliminations and Corporate by $1.9 million . As of March 31, 2019, the Company has entered into additional real estate operating leases of $5.2 million that are expected to commence in 2019. For the three months ended March 31, 2019 the Company had the following recorded in selling, general and administrative: 2019 Operating lease expense $ 8,217 Variable lease expense 925 Short-term lease expense 391 Total lease expense $ 9,533 Weighted average remaining lease term 6.8 years Weighted average discount rate 3.0 % Accruals and other on the Consolidated Statement of Cash Flows includes the amortization of the lease right-of-use asset of $7.6 million , offset by a change in the lease liability of $8.1 million for the three months ended March 31, 2019. Lease payments within operating activities was $8.4 million for the three months ended March 31, 2019. The Company also had non-cash lease right-of-use assets in exchange for lease liabilities of $1.9 million for the three months ended March 31, 2019. The following is a maturity analysis of the annual undiscounted cash flows for the annual periods ended March 31: 2020 $ 28,406 2021 20,678 2022 13,011 2023 7,714 2024 4,443 Thereafter 22,986 Total lease payments 97,238 Less imputed interest (10,402 ) Total operating lease liability $ 86,836 The future minimum lease payments under non-cancellable leases as of December 31, 2018: 2019 $ 32,113 2020 23,771 2021 16,986 2022 9,855 2023 7,435 Thereafter 5,081 Total lease payments $ 95,241 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
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 Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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 $ 128,100 $ 122,945 Work-in-progress 50,911 47,098 Finished goods 103,076 98,778 $ 282,087 $ 268,821 |
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 factors to determine whether it is more likely than not that the fair value of the 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, 2019 December 31, 2018 Gross Amount Accumulated Amortization Intangibles, Net Gross Amount Accumulated Amortization Intangibles, Net Customer relationships $ 197,916 $ (52,318 ) $ 145,598 $ 197,942 $ (49,887 ) $ 148,055 Proven technology and patents 73,906 (43,518 ) 30,388 73,880 (42,750 ) 31,130 Tradename (finite life) 4,580 (2,914 ) 1,666 4,504 (2,874 ) 1,630 Tradename (indefinite life) 35,479 — 35,479 35,500 — 35,500 Other 3,708 (2,862 ) 846 3,684 (2,691 ) 993 $ 315,589 $ (101,612 ) $ 213,977 $ 315,510 $ (98,202 ) $ 217,308 The Company recognized amortization expense associated with the above intangible assets of $3.7 million and $3.6 million for the three months ended March 31, 2019 and 2018 , respectively. The annual aggregate amortization expense based on the current balance of other intangible assets is estimated at $15.4 million for 2019 , $15.3 million for 2020 , $13.8 million for 2021 , $12.6 million for 2022 , $13.2 million for 2023 and $11.6 million for 2024 . Purchased intangible amortization was $3.5 million , $2.6 million after tax, and $3.4 million , $2.5 million after tax, for the three months ended March 31, 2019 and 2018 , respectively. In addition to the above amortization, the Company recorded amortization expense associated with capitalized software of $8.5 million and $8.1 million for the three months ended March 31, 2019 and 2018 , respectively. |
Revenue Recognition | Revenue Recognition Product revenue is recognized from contracts with customers when a customer has obtained control of a product. The Company considers control to have transferred based upon shipping terms. To the extent the Company’s arrangements have a separate performance obligation, revenue related to any post-shipment performance obligation is deferred until completed. Shipping and handling costs charged to customers are included in total net sales and the associated expense is a component of cost of sales. Certain products are also sold through indirect distribution channels whereby the distributor assumes any further obligations to the end customer. Revenue is recognized on these distributor arrangements upon transfer of control to the distributor. Contracts do not contain variable pricing arrangements that are retrospective, except for rebate programs. Rebates are estimated based on expected sales volumes and offset against revenue at the time such revenue is recognized. 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. The related provisions for estimated returns and rebates are immaterial to the consolidated financial statements. Certain of the Company’s product arrangements include separate performance obligations, primarily related to installation. Such performance obligations are accounted for separately when the deliverables have stand-alone value and the satisfaction of the undelivered performance obligations is probable and within the Company's control. The allocation of revenue between the performance obligations is based on the observable stand-alone selling prices at the time of the sale in accordance with a number of factors including service technician billing rates, time to install, and geographic location. Software is generally not considered a distinct performance obligation with the exception of a few small software applications. The Company generally does not sell software products without the related hardware instrument as the software is embedded in the product. 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. Service revenue not under contract is recognized upon the completion of the service performed. Revenue from spare parts sold on a stand-alone basis is recognized when control is transferred to the customer, which is generally at the time of shipment or delivery. Revenue from service contracts is recognized ratably over the contract period using a time-based method. 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. |
Lessee, Leases [Policy Text Block] | Leases The Company considers an arrangement a lease if the arrangement transfers the right to control the use of an identified asset in exchange for consideration. The Company has operating leases, but does not have financing leases. Operating lease right-of-use assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make payments arising from the lease agreement. These assets and liabilities are recognized at the commencement of the lease based upon the present value of the lease payments over the lease term. Lease payments include both lease and non-lease components for items or activities that transfer a good and service. Vehicle lease and non-lease components are separately accounted for based on standalone value. Real estate lease and non-lease components are accounted for as a single component. Operating lease right-of-use assets include initial direct costs, advanced lease payments and lease incentives. The lease term reflects the noncancellable period of the lease together with periods covered by an option to extend or terminate the lease when management is reasonably certain that it will exercise such option. The Company generally uses its incremental borrowing rate at the lease commencement date in determining the present value of lease payments as the information necessary to determine the rate implicit in the lease is not readily available. The incremental borrowing rate reflects similar terms by geographic location to the underlying leases. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease payments consist of non-lease services related to the lease. Variable lease payments are excluded from the right-of-use asset and lease liabilities and are expensed as incurred. Short-term leases are less than one year without purchase or renewal options that are reasonably certain to be exercised and are recognized on a straight-line basis over the lease term. The right-of-use asset is tested for impairment in accordance with ASC 360. |
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 obligations are 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 $4.5 million and $4.4 million of share-based compensation expense for the three months ended March 31, 2019 and 2018 , 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. |
Business Combinations Policy [Policy Text Block] | Business Combinations and Asset Acquisitions The Company accounts for business acquisitions under the accounting standards for business combinations. The results of each acquisition are included in the Company's consolidated results as of the acquisition date. The purchase price of an acquisition is allocated to tangible and intangible assets and assumed liabilities based on their estimated fair values and any consideration in excess of the net assets acquired is recognized as goodwill. Acquisition transaction costs are expensed when incurred. In circumstances where an acquisition involves a contingent consideration arrangement, the Company recognizes a liability equal to the fair value of the expected contingent payments as of the acquisition date. Subsequent changes in the fair value of the contingent consideration are recorded to other charges (income), net. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In August 2018 the FASB issued ASU 2018-14 "Compensation - Retirement Benefit" which amends the current disclosure requirements for defined benefit pension plans and other post-retirement plans. The changes in the disclosures will be applied retrospectively and becomes effective December 15, 2020 with early adoption permitted. The Company is currently evaluating the impact of this guidance on the benefit plan disclosures and the timing of adoption. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Components of inventories | Inventories consisted of the following: March 31, December 31, Raw materials and parts $ 128,100 $ 122,945 Work-in-progress 50,911 47,098 Finished goods 103,076 98,778 $ 282,087 $ 268,821 |
Components of other intangible assets | Other intangible assets consisted of the following : March 31, 2019 December 31, 2018 Gross Amount Accumulated Amortization Intangibles, Net Gross Amount Accumulated Amortization Intangibles, Net Customer relationships $ 197,916 $ (52,318 ) $ 145,598 $ 197,942 $ (49,887 ) $ 148,055 Proven technology and patents 73,906 (43,518 ) 30,388 73,880 (42,750 ) 31,130 Tradename (finite life) 4,580 (2,914 ) 1,666 4,504 (2,874 ) 1,630 Tradename (indefinite life) 35,479 — 35,479 35,500 — 35,500 Other 3,708 (2,862 ) 846 3,684 (2,691 ) 993 $ 315,589 $ (101,612 ) $ 213,977 $ 315,510 $ (98,202 ) $ 217,308 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | For the three month ended March 31, 2019 U.S. Operations Swiss Operations Western European Operations Chinese Operations Other Operations Total Product Revenue $ 174,256 $ 26,665 $ 116,555 $ 111,416 $ 95,455 $ 524,347 Service Revenue: Point in time 49,651 4,951 33,939 7,704 24,018 120,263 Over time 10,743 1,961 15,412 2,603 4,123 34,842 Total $ 234,650 $ 33,577 $ 165,906 $ 121,723 $ 123,596 $ 679,452 For the three month ended March 31, 2018 U.S. Operations Swiss Operations Western European Operations Chinese Operations Other Operations Total Product Revenue $ 172,501 $ 25,565 $ 116,932 $ 104,292 $ 91,656 $ 510,946 Service Revenue: Point in time 47,619 4,830 34,590 7,127 24,237 118,403 Over time 9,625 2,071 13,850 2,511 3,415 31,472 Total $ 229,745 $ 32,466 $ 165,372 $ 113,930 $ 119,308 $ 660,821 In certain circumstances, our reporting units sell directly into other geographies. A breakdown of net sales to external customers by geographic customer destination for the three months ended March 31 follows: 2019 2018 Americas $ 258,631 $ 252,279 Europe 209,555 205,840 Asia / Rest of World 211,266 202,702 Total $ 679,452 $ 660,821 The Company's global revenue mix by product category is laboratory ( 53% of sales), industrial ( 40% of sales) and retail ( 7% of sales). The Company's product revenue by reportable segment is proportionately similar to the Company's global mix except the Company's Swiss Operations is largely comprised of laboratory products, while the Company's Chinese Operations has a slightly higher percentage of industrial products. A breakdown of the Company’s sales by product category for the three months ended March 31 follows: 2019 2018 Laboratory $ 359,732 $ 345,159 Industrial 271,320 262,656 Retail 48,400 53,006 Total $ 679,452 $ 660,821 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | March 31, 2019 December 31, 2018 Balance Sheet Location Foreign currency forward contracts not designated as hedging instruments $ 1,175 $ 1,534 Other current assets and prepaid expenses Cash Flow Hedges: Interest rate swap agreements — 545 Other non-current assets Cross currency swap agreement 2,239 1,154 Other current assets and prepaid expenses Total derivative assets $ 3,414 $ 3,233 Foreign currency forward contracts not designated as hedging instruments $ 878 $ 1,059 Accrued and other liabilities Cash Flow Hedges: Interest rate swap agreements 411 27 Other non-current liabilities Cross currency swap agreement 556 — Other non-current liabilities Total derivative liabilities $ 1,845 $ 1,086 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt consisted of the following at March 31, 2019 : March 31, 2019 U.S. Dollar Other Principal Trading Currencies Total 3.67% $50 million Senior Notes due December 17, 2022 $ 50,000 $ — $ 50,000 4.10% $50 million Senior Notes due September 19, 2023 50,000 — 50,000 3.84% $125 million Senior Notes due September 19, 2024 125,000 — 125,000 4.24% $125 million Senior Notes due June 25, 2025 125,000 — 125,000 1.47% Euro 125 million Senior Notes due June 17, 2030 — 140,750 140,750 Senior notes debt issuance costs, net (862 ) (321 ) (1,183 ) Total Senior Notes 349,138 140,429 489,567 $1.1 billion Credit Agreement, interest at LIBOR plus 87.5 basis points 440,532 78,386 518,918 Other local arrangements 1,261 52,537 53,798 Total debt 790,931 271,352 1,062,283 Less: current portion (1,261 ) (52,537 ) (53,798 ) Total long-term debt $ 789,670 $ 218,815 $ 1,008,485 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 (loss) by component for the periods ended March 31, 2019 and 2018 : 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, 2018 $ (63,913 ) $ 702 $ (239,203 ) $ (302,414 ) Other comprehensive income (loss), net of tax: Unrealized gains (losses) cash flow hedging arrangements — (308 ) — (308 ) Foreign currency translation adjustment 8,664 — 1,736 10,400 Amounts recognized from accumulated other comprehensive income (loss), net of tax — (446 ) 3,014 2,568 Net change in other comprehensive income (loss), net of tax 8,664 (754 ) 4,750 12,660 Balance at March 31, 2019 $ (55,249 ) $ (52 ) $ (234,453 ) $ (289,754 ) 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, 2017 $ (31,340 ) $ (1,081 ) $ (232,985 ) $ (265,406 ) Other comprehensive income (loss), net of tax: Unrealized gains (losses) cash flow hedging arrangements — 5,915 — 5,915 Foreign currency translation adjustment 28,969 — (6,464 ) 22,505 Amounts recognized from accumulated other comprehensive income (loss), net of tax — (3,215 ) 3,685 470 Net change in other comprehensive income (loss), net of tax 28,969 2,700 (2,779 ) 28,890 Balance at March 31, 2018 $ (2,371 ) $ 1,619 $ (235,764 ) $ (236,516 ) |
Disclosure of Reclassification Amount [Text Block] | The following table presents amounts recognized from accumulated other comprehensive income (loss) for the three months ended March 31 : 2019 2018 Location of Amounts Recognized in Earnings Effective portion of (gains) losses on cash flow hedging arrangements: Interest rate swap agreements $ (62 ) $ 277 Interest expense Cross currency swap (433 ) (3,710 ) (a) Total before taxes (495 ) (3,433 ) Provision for taxes (49 ) (218 ) Provision for taxes Total, net of taxes $ (446 ) $ (3,215 ) Recognition of defined benefit pension and post-retirement items: Recognition of actuarial (gains) losses, plan amendments and prior service cost, before taxes $ 3,889 $ 4,811 (b) Provision for taxes 875 1,126 Provision for taxes Total, net of taxes $ 3,014 $ 3,685 |
Schedule of Comprehensive Income (Loss) [Table Text Block] | March 31, March 31, 2018 Net earnings $ 111,805 $ 93,304 Other comprehensive income (loss), net of tax 12,660 $ 28,890 Comprehensive income (loss), net of tax $ 124,465 $ 122,194 ACCUMULATED COMPREHENSIVE AND OTHER COMPREHENSIVE INCOME Comprehensive income (loss), net of tax consisted of the following: March 31, March 31, 2018 Net earnings $ 111,805 $ 93,304 Other comprehensive income (loss), net of tax 12,660 $ 28,890 Comprehensive income (loss), net of tax $ 124,465 $ 122,194 The following table presents changes in accumulated other comprehensive income (loss) by component for the periods ended March 31, 2019 and 2018 : 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, 2018 $ (63,913 ) $ 702 $ (239,203 ) $ (302,414 ) Other comprehensive income (loss), net of tax: Unrealized gains (losses) cash flow hedging arrangements — (308 ) — (308 ) Foreign currency translation adjustment 8,664 — 1,736 10,400 Amounts recognized from accumulated other comprehensive income (loss), net of tax — (446 ) 3,014 2,568 Net change in other comprehensive income (loss), net of tax 8,664 (754 ) 4,750 12,660 Balance at March 31, 2019 $ (55,249 ) $ (52 ) $ (234,453 ) $ (289,754 ) 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, 2017 $ (31,340 ) $ (1,081 ) $ (232,985 ) $ (265,406 ) Other comprehensive income (loss), net of tax: Unrealized gains (losses) cash flow hedging arrangements — 5,915 — 5,915 Foreign currency translation adjustment 28,969 — (6,464 ) 22,505 Amounts recognized from accumulated other comprehensive income (loss), net of tax — (3,215 ) 3,685 470 Net change in other comprehensive income (loss), net of tax 28,969 2,700 (2,779 ) 28,890 Balance at March 31, 2018 $ (2,371 ) $ 1,619 $ (235,764 ) $ (236,516 ) The following table presents amounts recognized from accumulated other comprehensive income (loss) for the three months ended March 31 : 2019 2018 Location of Amounts Recognized in Earnings Effective portion of (gains) losses on cash flow hedging arrangements: Interest rate swap agreements $ (62 ) $ 277 Interest expense Cross currency swap (433 ) (3,710 ) (a) Total before taxes (495 ) (3,433 ) Provision for taxes (49 ) (218 ) Provision for taxes Total, net of taxes $ (446 ) $ (3,215 ) Recognition of defined benefit pension and post-retirement items: Recognition of actuarial (gains) losses, plan amendments and prior service cost, before taxes $ 3,889 $ 4,811 (b) Provision for taxes 875 1,126 Provision for taxes Total, net of taxes $ 3,014 $ 3,685 (a) The cross currency swap reflects an unrealized loss of $0.6 million recorded in other charges (income) that was offset by the underlying unrealized loss on the hedged debt. The cross currency swap also reflects a realized gain of $1.0 million recorded in interest expense for the three months ended March 31, 2019 . (b) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and post-retirement cost. See Note 12 for additional details for the three months ended March 31, 2019 and 2018 . |
Net Periodic Benefit Cost (Tabl
Net Periodic Benefit Cost (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [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 2019 2018 2019 2018 2019 2018 2019 2018 Service cost, net $ 266 $ 272 $ 3,686 $ 3,921 $ — $ — $ 3,952 $ 4,193 Interest cost on projected benefit obligations 1,146 1,061 2,558 2,223 16 16 3,720 3,300 Expected return on plan assets (1,472 ) (1,732 ) (7,301 ) (7,987 ) — — (8,773 ) (9,719 ) Recognition of prior service cost — — (1,702 ) (1,794 ) — (93 ) (1,702 ) (1,887 ) Recognition of actuarial losses/(gains) 593 1,451 5,171 5,560 (173 ) (313 ) 5,591 6,698 Net periodic pension cost/(credit) $ 533 $ 1,052 $ 2,412 $ 1,923 $ (157 ) $ (390 ) $ 2,788 $ 2,585 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Company's accrual for restructuring activities | For the three months ending March 31, 2019 , the Company incurred $1.5 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, 2019 is as follows: Total Balance at December 31, 2018 $ 7,972 Restructuring charges 1,523 Cash payments / utilization (3,692 ) Impact of foreign currency (60 ) Balance at March 31, 2019 $ 5,743 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 Customers Segments Sales Profit Goodwill U.S. Operations $ 234,650 $ 26,145 $ 260,795 $ 37,985 $ 410,021 Swiss Operations 33,577 153,731 187,308 53,522 21,757 Western European Operations 165,906 44,045 209,951 25,725 88,208 Chinese Operations 121,723 56,857 178,580 59,484 663 Other (a) 123,596 1,261 124,857 13,187 14,868 Eliminations and Corporate (b) — (282,039 ) (282,039 ) (42,062 ) — Total $ 679,452 $ — $ 679,452 $ 147,841 $ 535,517 Net Sales to Net Sales to For the three months ended External Other Total Net Segment March 31, 2018 Customers Segments Sales Profit Goodwill U.S. Operations $ 229,745 $ 23,666 $ 253,411 $ 34,245 $ 409,471 Swiss Operations 32,466 143,582 176,048 45,975 22,866 Western European Operations 165,372 41,012 206,384 18,282 95,938 Chinese Operations 113,930 60,407 174,337 59,553 722 Other (a) 119,308 1,640 120,948 13,881 15,787 Eliminations and Corporate (b) — (270,307 ) (270,307 ) (32,390 ) — Total $ 660,821 $ — $ 660,821 $ 139,546 $ 544,784 (a) Other includes reporting units in Southeast Asia, Latin America, Eastern Europe 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, 2019 March 31, 2018 Earnings before taxes $ 125,676 $ 117,439 Amortization 12,222 11,735 Interest expense 9,094 8,359 Restructuring charges 1,523 4,413 Other charges (income), net (674 ) (2,400 ) Segment profit $ 147,841 $ 139,546 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases, Statement of Position location and balances [Table Text Block] | March 31, 2019 Balance Sheet Location Right-of-use assets, net $ 86,547 Other non-current assets Current lease liability $ 26,210 Accrued and other liabilities Non-current lease liability 60,626 Other non-current liabilities Total operating lease liability $ 86,836 |
Lease, Cost [Table Text Block] | For the three months ended March 31, 2019 the Company had the following recorded in selling, general and administrative: 2019 Operating lease expense $ 8,217 Variable lease expense 925 Short-term lease expense 391 Total lease expense $ 9,533 Weighted average remaining lease term 6.8 years Weighted average discount rate 3.0 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following is a maturity analysis of the annual undiscounted cash flows for the annual periods ended March 31: 2020 $ 28,406 2021 20,678 2022 13,011 2023 7,714 2024 4,443 Thereafter 22,986 Total lease payments 97,238 Less imputed interest (10,402 ) Total operating lease liability $ 86,836 The future minimum lease payments under non-cancellable leases as of December 31, 2018: 2019 $ 32,113 2020 23,771 2021 16,986 2022 9,855 2023 7,435 Thereafter 5,081 Total lease payments $ 95,241 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Components of inventory | ||
Raw materials and parts | $ 128,100 | $ 122,945 |
Work-in-progress | 50,911 | 47,098 |
Finished goods | 103,076 | 98,778 |
Total Inventory, Net | $ 282,087 | $ 268,821 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Intangible Assets [Line Items] | ||
Finite and Indefinite-Lived Intangible Assets, Gross, Total | $ 315,589 | $ 315,510 |
Total Accumulated Amortization | (101,612) | (98,202) |
Intangible Assets, Net (Excluding Goodwill) | 213,977 | 217,308 |
Tradename (indefinite life) [Member] | ||
Intangible Assets [Line Items] | ||
Gross amount, Tradename (indefinite life) | 35,479 | 35,500 |
Intangible Assets, Net (Excluding Goodwill) | 35,479 | 35,500 |
Customer Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Gross amount | 197,916 | 197,942 |
Accumulated Amortization | (52,318) | (49,887) |
Intangible Assets, Net (Excluding Goodwill) | 145,598 | 148,055 |
Proven technology and patents [Member] | ||
Intangible Assets [Line Items] | ||
Gross amount | 73,906 | 73,880 |
Accumulated Amortization | (43,518) | (42,750) |
Intangible Assets, Net (Excluding Goodwill) | 30,388 | 31,130 |
Tradename (indefinite life) [Member] | ||
Intangible Assets [Line Items] | ||
Gross amount | 4,580 | 4,504 |
Accumulated Amortization | (2,914) | (2,874) |
Intangible Assets, Net (Excluding Goodwill) | 1,666 | 1,630 |
Other Intangible Assets [Member] | ||
Intangible Assets [Line Items] | ||
Gross amount | 3,708 | 3,684 |
Accumulated Amortization | (2,862) | (2,691) |
Intangible Assets, Net (Excluding Goodwill) | $ 846 | $ 993 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||
Amortization expense | $ 3.7 | $ 3.6 | |
Future Amortization Expense Current Year | 15.4 | ||
Aggregate amortization expense for 2020 | 15.3 | ||
Aggregate amortization expense for 2021 | 13.8 | ||
Aggregate amortization expense for 2022 | 12.6 | ||
Aggregate amortization expense for 2023 | 13.2 | ||
Aggregate amortization expense for 2024 | 11.6 | ||
Purchased Intangible Amortization, Gross | 3.5 | $ 3.4 | |
Purchased intangible amortization, net of tax | 2.6 | $ 2.5 | |
Amortization expense associated with capitalized software | $ 8.5 | 8.1 | |
Standard Warranty Period | one | ||
Share - based compensation expense | $ 4.5 | $ 4.4 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 679,452 | $ 660,821 |
Americas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 258,631 | 252,279 |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 209,555 | 205,840 |
Total Asia Rest of World [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 211,266 | 202,702 |
Laboratory Related Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of Disaggregated Revenue in Relationship to Segments | 53.00% | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 359,732 | 345,159 |
Product Revenue [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 524,347 | 510,946 |
Industrial Related Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of Disaggregated Revenue in Relationship to Segments | 40.00% | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 271,320 | 262,656 |
Retail Related Products and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of Disaggregated Revenue in Relationship to Segments | 7.00% | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 48,400 | 53,006 |
Service Revenue [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 120,263 | 118,403 |
Service Revenue [Member] | Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 34,842 | 31,472 |
Us Operations segment Member | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 234,650 | 229,745 |
Us Operations segment Member | Product Revenue [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 174,256 | 172,501 |
Us Operations segment Member | Service Revenue [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 49,651 | 47,619 |
Us Operations segment Member | Service Revenue [Member] | Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 10,743 | 9,625 |
Swiss Operations segment Member | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 33,577 | 32,466 |
Swiss Operations segment Member | Product Revenue [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 26,665 | 25,565 |
Swiss Operations segment Member | Service Revenue [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 4,951 | 4,830 |
Swiss Operations segment Member | Service Revenue [Member] | Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,961 | 2,071 |
Western European Operations Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 165,906 | 165,372 |
Western European Operations Segment [Member] | Product Revenue [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 116,555 | 116,932 |
Western European Operations Segment [Member] | Service Revenue [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 33,939 | 34,590 |
Western European Operations Segment [Member] | Service Revenue [Member] | Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 15,412 | 13,850 |
Chinese Operations Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 121,723 | 113,930 |
Chinese Operations Segment [Member] | Product Revenue [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 111,416 | 104,292 |
Chinese Operations Segment [Member] | Service Revenue [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 7,704 | 7,127 |
Chinese Operations Segment [Member] | Service Revenue [Member] | Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,603 | 2,511 |
Other Operations [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 123,596 | 119,308 |
Other Operations [Member] | Product Revenue [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 95,455 | 91,656 |
Other Operations [Member] | Service Revenue [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 24,018 | 24,237 |
Other Operations [Member] | Service Revenue [Member] | Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 4,123 | $ 3,415 |
Revenue Recognition Details 1 (
Revenue Recognition Details 1 (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | ||||
Cumulative Effect on Retained Earnings, before Tax | $ 0 | |||
Unbilled Contracts Receivable | $ 16,200,000 | $ 12,400,000 | ||
Deferred Revenue | 128,962,000 | 130,704,000 | $ 105,381,000 | $ 107,166,000 |
Customer pre-payments/deferred revenue | 167,599,000 | 151,009,000 | ||
Contract with Customer, Liability, Revenue Recognized | (144,303,000) | (129,796,000) | ||
Temporary Equity, Foreign Currency Translation Adjustments | $ 285,000 | $ 2,325,000 | ||
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation [true false] | true |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 0 | $ 500 | $ 5,500 |
Finite-lived Intangible Assets Acquired | $ 4,900 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||
Goodwill, Acquired During Period | $ 600 | ||
Payment for Contingent Consideration Liability, Financing Activities | 10,000 | $ 0 | |
Biotix Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 105,000 | ||
Payment for Contingent Consideration Liability, Financing Activities | $ 10,000 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 4,700 | $ 5,700 | |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Notional Amount | 436,500 | $ 436,700 | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 2,300 | ||
2019 Cross Currency Swap [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Line Of Credit Facility Forecasted Borrowing Amount | $ 50,000 | ||
Derivative, Fixed Interest Rate | 0.78% | ||
2017 Cross Currency Swap [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Line Of Credit Facility Forecasted Borrowing Amount | $ 100,000 | ||
Derivative, Fixed Interest Rate | 0.01% | ||
2017 Cross Currency Swap [Member] | Designated as Hedging Instrument [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
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% | ||
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% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Derivative Assets | $ 3,400 | $ 3,200 |
Liabilities: | ||
Derivative Liabilities | 1,800 | 1,100 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Foreign Currency Derivative Instruments Not Designated As Hedging Instruments Asset At Fair Value | 1,175 | 1,534 |
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 545 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 2,239 | 1,154 |
Liabilities: | ||
Foreign Currency Derivative Instruments Not Designated As Hedging Instruments Liability At Fair Value | 878 | 1,059 |
Interest Rate Cash Flow Hedge Liability at Fair Value | 411 | 27 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 556 | $ 0 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details Textuals) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative Assets | $ 3,400,000 | $ 3,200,000 |
Derivative Liabilities | 1,800,000 | 1,100,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Cash Equivalents | 13,700,000 | 9,000,000 |
Change in Carrying Value Verse Fair Value of Long Term Debt | 10,400,000 | |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2019Rate | Mar. 31, 2018Rate | |
Effective Income Tax Rate, Continuing Operations | 11.00% | 21.00% |
Annual Effective Tax Rate before recurring discrete tax items | 20.50% | 22.00% |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Senior Notes | $ 489,567 | |
Unamortized Debt Issuance Expense | (1,183) | |
Debt, Long-term and Short-term, Combined Amount | 1,062,283 | |
Short-term borrowings and current maturities of long-term debt | (53,798) | $ (49,670) |
Long-term Debt, Excluding Current Maturities | 1,008,485 | 985,021 |
Gain (Loss) on Derivative Used in Net Investment Hedge, after Tax | (2,300) | $ 5,500 |
Cumulative (gain) loss in other other comprehensive income related to the change in a net investment hedge. | $ (900) | |
Debt Instrument, Covenant Description | The note purchase agreement also requires the Company to maintain a consolidated interest coverage ratio of more than 3.5 to 1.0 and a consolidated leverage ratio of less than 3.5 to 1.0. | |
3.67 % Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 50,000 | |
Debt Instrument, Face Amount | $ 50,000 | |
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 | |
Debt Instrument, Face Amount | $ 50,000 | |
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 | |
Debt Instrument, Face Amount | $ 125,000 | |
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 | |
Debt Instrument, Face Amount | $ 125,000 | |
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 | $ 140,750 | |
Debt Instrument, Face Amount | $ 125,000 | |
Debt Instrument, Maturity Date | Jun. 17, 2030 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.47% | |
$1.1 Billion Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 575,200 | |
Long-term Line of Credit | 518,918 | |
Debt Instrument, Face Amount | $ 1,100,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 0.875% | |
3.91% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 75,000,000 | |
Debt Instrument, Maturity Date | Jun. 25, 2029 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.91% | |
Other Local Arrangements [Member] | ||
Debt Instrument [Line Items] | ||
Other Borrowings | $ 53,798 | |
Swiss Pension Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.875% | |
Loan from Swiss Pension Plan USD Amount | $ 39,600 | |
Swiss Pension Plan Loan in Swiss franc | 38,000 | |
Us Dollar Amounts Member | ||
Debt Instrument [Line Items] | ||
Senior Notes | 349,138 | |
Unamortized Debt Issuance Expense | (862) | |
Debt, Long-term and Short-term, Combined Amount | 790,931 | |
Short-term borrowings and current maturities of long-term debt | (1,261) | |
Long-term Debt, Excluding Current Maturities | 789,670 | |
Us Dollar Amounts Member | 3.67 % Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 50,000 | |
Us Dollar Amounts Member | 4.10% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 50,000 | |
Us Dollar Amounts Member | 3.84% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 125,000 | |
Us Dollar Amounts Member | 4.24% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 125,000 | |
Us Dollar Amounts Member | 1.47% EURO Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 0 | |
Us Dollar Amounts Member | $1.1 Billion Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | 440,532 | |
Us Dollar Amounts Member | Other Local Arrangements [Member] | ||
Debt Instrument [Line Items] | ||
Other Borrowings | 1,261 | |
Other Principal Trading Currencies [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 140,429 | |
Unamortized Debt Issuance Expense | (321) | |
Debt, Long-term and Short-term, Combined Amount | 271,352 | |
Short-term borrowings and current maturities of long-term debt | (52,537) | |
Long-term Debt, Excluding Current Maturities | 218,815 | |
Other Principal Trading Currencies [Member] | 3.67 % 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 | 140,750 | |
Other Principal Trading Currencies [Member] | $1.1 Billion Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | 78,386 | |
Other Principal Trading Currencies [Member] | Other Local Arrangements [Member] | ||
Debt Instrument [Line Items] | ||
Other Borrowings | $ 52,537 |
Share Repurchase Program and _2
Share Repurchase Program and Treasury Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Stock Repurchase Program, Additional Authorized Amount | $ 2,000,000 | ||
Share Repurchase Program and Treasury Stock (Textuals) [Abstract] | |||
Authorized amount under share repurchase program | $ 1,900,000 | ||
Shares Purchased Under Share Repurchase Program | 27,800,000 | ||
Repurchases of common stock | $ (186,250) | $ (118,750) | |
Number of shares repurchased | (290,429) | (187,880) | |
Average price of share repurchased, per share | $ 641.27 | $ 632.03 | |
Exercise of stock options and restricted stock units, shares reissued | 171,752 | 39,362 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (289,754) | $ (302,414) | $ (236,516) | $ (265,406) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (308) | 5,915 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 10,400 | 22,505 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2,568 | 470 | ||
Other Comprehensive Income (Loss), Net of Tax | 12,660 | 28,890 | ||
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (55,249) | (63,913) | (2,371) | (31,340) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 8,664 | 28,969 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax | 8,664 | 28,969 | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (52) | 702 | 1,619 | (1,081) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (308) | 5,915 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | 0 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (446) | (3,215) | ||
Other Comprehensive Income (Loss), Net of Tax | (754) | 2,700 | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (234,453) | (239,203) | $ (235,764) | $ (232,985) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 1,736 | (6,464) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 3,014 | 3,685 | ||
Other Comprehensive Income (Loss), Net of Tax | $ 4,750 | $ (2,779) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income Details 1 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income [Abstract] | |||
Cross Currency Swap interest portion recognized in income | $ 1,043 | ||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | (62) | $ 277 | |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | (433) | (3,710) | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (495) | (3,433) | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (49) | (218) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (446) | (3,215) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Tax, after Reclassification Adjustment, Attributable to Parent | 3,889 | 4,811 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent | 875 | 1,126 | |
Income Tax Expense (Benefit) | 13,871 | $ 24,135 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2,568 | 470 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 3,014 | $ 3,685 | |
Cross Currency Swap Revaluation Portion Recognized in Earnings | $ (610) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income Details 2 (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Income (Loss) Attributable to Parent | $ 111,805 | $ 93,304 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 12,660 | 28,890 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 124,465 | $ 122,194 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Weighted Average Number Diluted Shares Outstanding Adjustment [Abstract] | ||
Weighted Average Number of Shares Outstanding, Diluted, Total | 459,185 | 627,324 |
Antidilutive Shares Outstanding | ||
Weighted Average Number of Shares Outstanding, Antidilutive, Total | 90,435 | 56,224 |
Net Periodic Benefit Cost (Deta
Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Impact of Adopting ASU 2017-07 ASC 715 Compensation-Retirement Benefits | $ (1,200) | $ (1,600) |
Defined Benefit Plan, Service Cost | 3,952 | 4,193 |
Defined Benefit Plan, Interest Cost | 3,720 | 3,300 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (8,773) | (9,719) |
Defined Benefits Plan Net amortization and deferral | (1,702) | (1,887) |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 5,591 | 6,698 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 2,788 | 2,585 |
Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 25,300 | |
Pension Plan [Member] | Domestic Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Service Cost | 266 | 272 |
Defined Benefit Plan, Interest Cost | 1,146 | 1,061 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (1,472) | (1,732) |
Defined Benefits Plan Net amortization and deferral | 0 | 0 |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 593 | 1,451 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 533 | 1,052 |
Pension Plan [Member] | Foreign Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Service Cost | 3,686 | 3,921 |
Defined Benefit Plan, Interest Cost | 2,558 | 2,223 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (7,301) | (7,987) |
Defined Benefits Plan Net amortization and deferral | (1,702) | (1,794) |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 5,171 | 5,560 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 2,412 | 1,923 |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Service Cost | 0 | 0 |
Defined Benefit Plan, Interest Cost | 16 | 16 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 0 | 0 |
Defined Benefits Plan Net amortization and deferral | 0 | (93) |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (173) | (313) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (157) | $ (390) |
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | $ 400 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Company's accrual for restructuring activities:- | |||
Beginning Restructuring Accrual Balance, as of December 31, 2015 | $ 7,972 | ||
Restructuring Charges | 1,523 | $ 4,413 | $ 4,400 |
Restructuring Cash Payments | (3,692) | ||
Impact of foreign currency on restructuring reserve | (60) | ||
Ending Restructuring Accrual Balance, as of March 31, 2016 | $ 5,743 | $ 7,972 |
Restructuring Charges Restructu
Restructuring Charges Restructuring Charges (textuals) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Restructuring Charges [Abstract] | |||
Restructuring Charges | $ 1,523 | $ 4,413 | $ 4,400 |
Other Charges , Net Other Charg
Other Charges , Net Other Charges, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | ||
Impact of Adopting ASU 2017-07 ASC 715 Compensation-Retirement Benefits | $ (1.2) | $ (1.6) |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Operations of the Company's operating segments | |||
Net Sales to External Customers | $ 679,452,000 | $ 660,821,000 | |
Revenue Transactions With Other Operating Segments | 0 | 0 | |
Net Sales | 679,452,000 | 660,821,000 | |
Segment Profit | 147,841,000 | 139,546,000 | |
Goodwill | 535,517,000 | 544,784,000 | $ 534,780,000 |
Us Operations segment Member | |||
Operations of the Company's operating segments | |||
Net Sales to External Customers | 234,650,000 | 229,745,000 | |
Revenue Transactions With Other Operating Segments | 26,145,000 | 23,666,000 | |
Net Sales | 260,795,000 | 253,411,000 | |
Segment profit | 37,985,000 | 34,245,000 | |
Goodwill | 410,021,000 | 409,471,000 | |
Swiss Operations segment Member | |||
Operations of the Company's operating segments | |||
Net Sales to External Customers | 33,577,000 | 32,466,000 | |
Revenue Transactions With Other Operating Segments | 153,731,000 | 143,582,000 | |
Net Sales | 187,308,000 | 176,048,000 | |
Segment profit | 53,522,000 | 45,975,000 | |
Goodwill | 21,757,000 | 22,866,000 | |
Western European Operations [Member] | |||
Operations of the Company's operating segments | |||
Net Sales to External Customers | 165,906,000 | 165,372,000 | |
Revenue Transactions With Other Operating Segments | 44,045,000 | 41,012,000 | |
Net Sales | 209,951,000 | 206,384,000 | |
Segment profit | 25,725,000 | 18,282,000 | |
Goodwill | 88,208,000 | 95,938,000 | |
Chinese Operations [Member] | |||
Operations of the Company's operating segments | |||
Net Sales to External Customers | 121,723,000 | 113,930,000 | |
Revenue Transactions With Other Operating Segments | 56,857,000 | 60,407,000 | |
Net Sales | 178,580,000 | 174,337,000 | |
Segment profit | 59,484,000 | 59,553,000 | |
Goodwill | 663,000 | 722,000 | |
Other Operations [Member] | |||
Operations of the Company's operating segments | |||
Net Sales to External Customers | 123,596,000 | 119,308,000 | |
Revenue Transactions With Other Operating Segments | 1,261,000 | 1,640,000 | |
Net Sales | 124,857,000 | 120,948,000 | |
Segment profit | 13,187,000 | 13,881,000 | |
Goodwill | 14,868,000 | 15,787,000 | |
Intersegment Elimination [Member] | |||
Operations of the Company's operating segments | |||
Net Sales to External Customers | 0 | 0 | |
Revenue Transactions With Other Operating Segments | (282,039,000) | (270,307,000) | |
Net Sales | (282,039,000) | (270,307,000) | |
Segment profit | (42,062,000) | (32,390,000) | |
Goodwill | $ 0 | $ 0 |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Reconciliation of earnings before taxes to segment profit | |||
Earnings before taxes | $ 125,676 | $ 117,439 | |
Amortization | 12,222 | 11,735 | |
Interest Expense | 9,094 | 8,359 | |
Restructuring Charges | 1,523 | 4,413 | $ 4,400 |
Other charges (income), net | (674) | (2,400) | |
Segment Profit Information | $ 147,841 | $ 139,546 |
Segment Reporting (Details Text
Segment Reporting (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting (Textuals) [Abstract] | |||
Restructuring Charges | $ 1,523 | $ 4,413 | $ 4,400 |
Western European Operations [Member] | |||
Segment Reporting (Textuals) [Abstract] | |||
Restructuring Charges | 1,000 | 400 | |
Us Operations segment Member | |||
Segment Reporting (Textuals) [Abstract] | |||
Restructuring Charges | $ 500 | $ 3,600 | |
Swiss Operations segment Member | |||
Segment Reporting (Textuals) [Abstract] | |||
Restructuring Charges | $ 400 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 86,547 | $ 92,700 |
Operating Lease, Liability, Current | 26,210 | |
Operating Lease, Liability, Noncurrent | 60,626 | |
Operating Lease, Liability | $ 86,836 | $ 93,500 |
Leases Lease Costs (Details)
Leases Lease Costs (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)Rate | |
Leases [Abstract] | |
Lease, Cost | $ 8,217 |
Operating Lease, Expense | 9,533 |
Variable Lease, Cost | 925 |
Short-term Lease, Cost | $ 391 |
Operating Lease, Weighted Average Remaining Lease Term | 6 years 9 months 18 days |
Operating Lease, Weighted Average Discount Rate, Percent | Rate | 3.00% |
Leases Maturity Analysis (Detai
Leases Maturity Analysis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 32,113 | ||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 28,406 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 20,678 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 13,011 | ||
Finance Lease, Liability, Payments, Due Year Four | 7,714 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 4,443 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 22,986 | ||
Lessee, Operating Lease, Liability, Payments, Due | 97,238 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (10,402) | ||
Operating Lease, Liability | $ 86,836 | $ 93,500 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 23,771 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 16,986 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 9,855 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 7,435 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 5,081 | ||
Operating Leases, Future Minimum Payments Due | $ 95,241 |
Leases Textuals (Details)
Leases Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
Segment Reporting Information [Line Items] | ||
Amortization of Operating Lease Right-of-Use Asset | $ 7,600 | |
Change in lease liability cash flow | 8,100 | |
Operating Lease, Right-of-Use Asset | 86,547 | $ 92,700 |
Operating Lease, Liability | 86,836 | $ 93,500 |
Lessee Operating Lease Lease Not Yet Commenced Total Contract Value | 5,200 | |
Operating Lease, Payments | 8,400 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 1,900 | |
Us Operations segment Member | ||
Segment Reporting Information [Line Items] | ||
Quarterly Financial Information, Segment Reporting, Segment Assets, Material Change | 35400000 | |
Swiss Operations segment Member | ||
Segment Reporting Information [Line Items] | ||
Quarterly Financial Information, Segment Reporting, Segment Assets, Material Change | 1000000 | |
Western European Operations Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Quarterly Financial Information, Segment Reporting, Segment Assets, Material Change | 21900000 | |
Chinese Operations Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Quarterly Financial Information, Segment Reporting, Segment Assets, Material Change | 3500000 | |
Other Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Quarterly Financial Information, Segment Reporting, Segment Assets, Material Change | 22800000 | |
Corporate Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Quarterly Financial Information, Segment Reporting, Segment Assets, Material Change | 1900000 |