Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 24, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | AME | |
Entity Registrant Name | AMETEK INC/ | |
Entity Central Index Key | 1,037,868 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 231,117,205 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,084,799 | $ 945,030 | $ 3,157,085 | $ 2,867,134 |
Operating expenses: | ||||
Cost of sales | 719,718 | 630,744 | 2,084,392 | 1,894,136 |
Selling, general and administrative | 132,250 | 113,170 | 387,179 | 344,323 |
Total operating expenses | 851,968 | 743,914 | 2,471,571 | 2,238,459 |
Operating income | 232,831 | 201,116 | 685,514 | 628,675 |
Other expenses: | ||||
Interest expense | (24,709) | (23,609) | (73,777) | (70,716) |
Other, net | (3,695) | (3,259) | (12,533) | (10,108) |
Income before income taxes | 204,427 | 174,248 | 599,204 | 547,851 |
Provision for income taxes | 50,896 | 43,561 | 156,266 | 144,801 |
Net income | $ 153,531 | $ 130,687 | $ 442,938 | $ 403,050 |
Basic earnings per share | $ 0.67 | $ 0.56 | $ 1.93 | $ 1.73 |
Diluted earnings per share | $ 0.66 | $ 0.56 | $ 1.91 | $ 1.72 |
Weighted average common shares outstanding: | ||||
Basic shares | 230,439 | 231,894 | 230,049 | 233,387 |
Diluted shares | 232,253 | 232,721 | 231,615 | 234,576 |
Dividends declared and paid per share | $ 0.09 | $ 0.09 | $ 0.27 | $ 0.27 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Total comprehensive income | $ 185,167 | $ 124,135 | $ 522,665 | $ 378,820 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 736,415 | $ 717,259 |
Receivables, net | 640,815 | 592,326 |
Inventories, net | 546,876 | 492,104 |
Deferred income taxes | 50,004 | |
Other current assets | 100,377 | 76,497 |
Total current assets | 2,024,483 | 1,928,190 |
Property, plant and equipment, net | 494,973 | 473,230 |
Goodwill | 3,138,742 | 2,818,950 |
Other intangibles, net | 1,965,973 | 1,734,021 |
Investments and other assets | 159,130 | 146,283 |
Total assets | 7,783,301 | 7,100,674 |
Current liabilities: | ||
Short-term borrowings and current portion of long-term debt, net | 509,567 | 278,921 |
Accounts payable | 409,357 | 369,537 |
Income taxes payable | 47,604 | 29,913 |
Accrued liabilities | 303,813 | 246,070 |
Total current liabilities | 1,270,341 | 924,441 |
Long-term debt, net | 1,920,879 | 2,062,644 |
Deferred income taxes | 608,971 | 621,776 |
Other long-term liabilities | 216,955 | 235,300 |
Total liabilities | 4,017,146 | 3,844,161 |
Stockholders' equity: | ||
Common stock | 2,630 | 2,615 |
Capital in excess of par value | 649,807 | 604,143 |
Retained earnings | 4,784,618 | 4,403,683 |
Accumulated other comprehensive loss | (462,662) | (542,389) |
Treasury stock | (1,208,238) | (1,211,539) |
Total stockholders' equity | 3,766,155 | 3,256,513 |
Total liabilities and stockholders' equity | $ 7,783,301 | $ 7,100,674 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities: | ||
Net income | $ 442,938 | $ 403,050 |
Adjustments to reconcile net income to total operating activities: | ||
Depreciation and amortization | 131,005 | 122,968 |
Deferred income taxes | 20,492 | (2,638) |
Share-based compensation expense | 19,689 | 16,393 |
Gain on sale of facility | (1,133) | |
Net change in assets and liabilities, net of acquisitions | 19,221 | (27,428) |
Pension contribution | (52,493) | (3,003) |
Other, net | 675 | 175 |
Total operating activities | 580,394 | 509,517 |
Investing activities: | ||
Additions to property, plant and equipment | (45,630) | (40,497) |
Purchases of businesses, net of cash acquired | (518,634) | (359,976) |
Proceeds from sale of facility | 2,239 | |
Other, net | (400) | 500 |
Total investing activities | (562,425) | (399,973) |
Financing activities: | ||
Net change in short-term borrowings | (9,601) | 237,100 |
Repurchases of common stock | (6,730) | (236,078) |
Cash dividends paid | (62,003) | (62,705) |
Excess tax benefits from share-based payments | 5,061 | |
Proceeds from employee stock plans and other, net | 35,345 | 15,234 |
Total financing activities | (42,989) | (41,388) |
Effect of exchange rate changes on cash and cash equivalents | 44,176 | (3,692) |
Increase in cash and cash equivalents | 19,156 | 64,464 |
Cash and cash equivalents: | ||
Beginning of period | 717,259 | 381,005 |
End of period | $ 736,415 | $ 445,469 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying consolidated financial statements are unaudited. AMETEK, Inc. (the “Company”) believes that all adjustments (which primarily consist of normal recurring accruals) necessary for a fair presentation of the consolidated financial position of the Company at September 30, 2017, the consolidated results of its operations for the three and nine months ended September 30, 2017 and 2016 and its cash flows for the nine months ended September 30, 2017 and 2016 have been included. Quarterly results of operations are not necessarily indicative of results for the full year. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes presented in the Company’s Annual Report on Form 10-K |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) ASU 2014-09 ASU 2014-09 ASU 2014-09 ASU 2014-09 ASU 2014-09 ASU 2014-09 ASU 2014-09. ASU 2014-09 In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory (“ASU 2015-11”), first-in, first-out last-in, first-out ASU 2015-11 In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”). ASU 2015-17 ASU 2015-17 ASU 2015-17. In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). right-of-use right-of-use ASU 2016-02 ASU 2016-02 ASU 2016-02 In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 ASU 2016-09 In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business (“ASU 2017-01”). ASU 2017-01 ASU 2017-01 ASU 2017-01 ASU 2017-01 ASU 2017-01 ASU 2017-01 In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 ASU 2017-04 ASU 2017-04 In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”), ASU 2017-07 ASU 2017-07 ASU 2017-07 In May 2017, the FASB issued ASU No. 2017-09, Scope of Modification Accounting (“ASU 2017-09”). ASU 2017-09 ASU 2017-09 ASU 2017-09 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share The calculation of basic earnings per share is based on the weighted average number of common shares considered outstanding during the periods. The calculation of diluted earnings per share reflects the effect of all potentially dilutive securities (principally outstanding stock options and restricted stock grants). The number of weighted average shares used in the calculation of basic earnings per share and diluted earnings per share was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In thousands) Weighted average shares: Basic shares 230,439 231,894 230,049 233,387 Equity-based compensation plans 1,814 827 1,566 1,189 Diluted shares 232,253 232,721 231,615 234,576 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 4. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) consisted of the following: Three Months Ended Three Months Ended September 30, 2017 September 30, 2016 Foreign Currency Items and Other Defined Benefit Pension Plans Total Foreign Currency Items and Other Defined Benefit Pension Plans Total (In thousands) Balance at the beginning of the period $ (294,922 ) $ (199,376 ) $ (494,298 ) $ (271,501 ) $ (151,808 ) $ (423,309 ) Other comprehensive income (loss) before reclassifications: Translation adjustments 37,642 — 37,642 (10,441 ) — (10,441 ) Change in long-term intercompany notes 12,035 — 12,035 3,063 — 3,063 Net investment hedge instruments (32,422 ) — (32,422 ) (1,212 ) — (1,212 ) Gross amounts reclassified from accumulated other comprehensive income (loss) — 3,512 3,512 — 2,484 2,484 Income tax benefit (expense) 12,190 (1,321 ) 10,869 423 (869 ) (446 ) Other comprehensive income (loss), net of tax 29,445 2,191 31,636 (8,167 ) 1,615 (6,552 ) Balance at the end of the period $ (265,477 ) $ (197,185 ) $ (462,662 ) $ (279,668 ) $ (150,193 ) $ (429,861 ) Nine Months Ended Nine Months Ended September 30, 2017 September 30, 2016 Foreign Currency Items and Other Defined Benefit Pension Plans Total Foreign Currency Items and Other Defined Benefit Pension Plans Total (In thousands) Balance at the beginning of the period $ (338,631 ) $ (203,758 ) $ (542,389 ) $ (250,593 ) $ (155,038 ) $ (405,631 ) Other comprehensive income (loss) before reclassifications: Translation adjustments 101,846 — 101,846 (26,581 ) — (26,581 ) Change in long-term intercompany notes 30,727 — 30,727 6,862 — 6,862 Net investment hedge instruments (95,311 ) — (95,311 ) (14,393 ) — (14,393 ) Gross amounts reclassified from accumulated other comprehensive income (loss) — 10,536 10,536 — 7,452 7,452 Income tax benefit (expense) 35,892 (3,963 ) 31,929 5,037 (2,607 ) 2,430 Other comprehensive income (loss), net of tax 73,154 6,573 79,727 (29,075 ) 4,845 (24,230 ) Balance at the end of the period $ (265,477 ) $ (197,185 ) $ (462,662 ) $ (279,668 ) $ (150,193 ) $ (429,861 ) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes a valuation hierarchy for disclosure of the inputs to the valuations used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The following table provides the Company’s assets that are measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016, consistent with the fair value hierarchy: September 30, 2017 December 31, 2016 Fair Value Fair Value (In thousands) Fixed-income investments $ 7,896 $ 7,317 The fair value of fixed-income investments, which are valued as level 1 investments, was based on quoted market prices. The fixed-income investments are shown as a component of long-term assets on the consolidated balance sheet. For the nine months ended September 30, 2017 and 2016, gains and losses on the investments noted above were not significant. No transfers between level 1 and level 2 investments occurred during the nine months ended September 30, 2017 and 2016. Financial Instruments Cash, cash equivalents and fixed-income investments are recorded at fair value at September 30, 2017 and December 31, 2016 in the accompanying consolidated balance sheet. The following table provides the estimated fair values of the Company’s financial instrument liabilities, for which fair value is measured for disclosure purposes only, compared to the recorded amounts at September 30, 2017 and December 31, 2016: September 30, 2017 December 31, 2016 Recorded Fair Value Recorded Fair Value (In thousands) Short-term borrowings, net $ — $ — $ — $ — Long-term debt, net (including current portion) (2,430,446 ) (2,456,920 ) (2,341,565 ) (2,386,901 ) The fair value of short-term |
Hedging Activities
Hedging Activities | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Activities | 6. Hedging Activities The Company has designated certain foreign-currency-denominated long-term borrowings as hedges of the net investment in certain foreign operations. As of September 30, 2017, these net investment hedges included British-pound-and At September 30, 2017, the Company had $408.7 million of British-pound-denominated loans, which were designated as a hedge against the net investment in British pound functional currency foreign subsidiaries. At September 30, 2017, the Company had $590.7 million in Euro-denominated loans, which were designated as a hedge against the net investment in Euro functional currency foreign subsidiaries. As a result of the British-pound-and |
Inventories, net
Inventories, net | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories, net | 7. Inventories, net September 30, December 31, 2017 2016 (In thousands) Finished goods and parts $ 79,897 $ 75,827 Work in process 118,979 101,484 Raw materials and purchased parts 348,000 314,793 Total inventories, net $ 546,876 $ 492,104 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | 8. Acquisitions The Company spent $518.6 million in cash, net of cash acquired, to acquire Rauland-Borg The following table represents the preliminary allocation of the aggregate purchase price for the net assets of the 2017 acquisitions based on their estimated fair values at acquisition (in millions): Property, plant and equipment $ 21.5 Goodwill 256.4 Other intangible assets 269.5 Long-term liabilities (10.6 ) Deferred income taxes (27.2 ) Net working capital and other (1) 34.5 Total purchase price 544.1 Less: Contingent payment liability (25.5 ) Total cash paid $ 518.6 (1) Includes $30.7 million in accounts receivable, whose fair value, contractual cash flows and expected cash flows are approximately equal. The amount allocated to goodwill is reflective of the benefits the Company expects to realize from the 2017 acquisitions as follows: Rauland provides the Company with attractive new growth opportunities within the medical technology market, strong growth opportunities in its core markets and incremental growth opportunities through acquisitions and international expansion. MOCON’s products and technologies complement the Company’s existing gas analysis instrumentation business and provides it with opportunities to expand into the growing food and pharmaceutical package testing market. The Company expects approximately $146 million of the goodwill recorded in connection with the 2017 acquisitions will be tax deductible in future years. At September 30, 2017, purchase price allocated to other intangible assets of $269.5 million consists of $53.6 million of indefinite-lived intangible trade names, which are not subject to amortization. The remaining $215.9 million of other intangible assets consists of $162.0 million of customer relationships, which are being amortized over a period of 18 years and $53.9 million of purchased technology, which is being amortized over a period of 18 years. Amortization expense for each of the next five years for the 2017 acquisitions is expected to approximate $12 million per year. The Company is in the process of finalizing the measurement of certain tangible and intangible assets and liabilities for its 2017 acquisitions, including inventory, property, plant and equipment, goodwill, customer relationships, trade names, purchased technology, and the accounting for income taxes and certain long-term The above mentioned contingent payment is based on Rauland achieving a certain cumulative revenue target over the period October 1, 2016 to September 30, 2018. If Rauland achieves the target, the $30 million contingent payment will be made; however, if the target is not achieved, no payment will be made. At the acquisition date, the estimated fair value of the contingent payment liability was $25.5 million, which was based on a probabilistic approach using level 3 inputs. At September 30, 2017, there was no change to the estimated fair value of the contingent payment liability. The 2017 acquisitions had an immaterial impact on reported net sales, net income and diluted earnings per share for the three and nine months ended September 30, 2017. Had the 2017 acquisitions been made at the beginning of 2017 or 2016, unaudited pro forma net sales, net income and diluted earnings per share for the three and nine months ended September 30, 2017 and 2016, respectively, would not have been materially different than the amounts reported. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 9. Goodwill The changes in the carrying amounts of goodwill by segment were as follows: Electronic Electro- mechanical Total (In millions) Balance at December 31, 2016 $ 1,817.0 $ 1,002.0 $ 2,819.0 Goodwill acquired 256.4 — 256.4 Purchase price allocation adjustments and other 0.1 0.6 0.7 Foreign currency translation adjustments 31.2 31.4 62.6 Balance at September 30, 2017 $ 2,104.7 $ 1,034.0 $ 3,138.7 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes At September 30, 2017, the Company had gross unrecognized tax benefits of $58.5 million, of which $49.0 million, if recognized, would impact the effective tax rate. The following is a reconciliation of the liability for uncertain tax positions (in millions): Balance at December 31, 2016 $ 57.9 Additions for tax positions 8.7 Reductions for tax positions (8.1 ) Balance at September 30, 2017 $ 58.5 The Company recognizes interest and penalties accrued related to uncertain tax positions in income tax expense. The amounts recognized in income tax expense for interest and penalties during the three and nine months ended September 30, 2017 and 2016 were not significant. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | 11. Share-Based Compensation Total share-based compensation expense was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In thousands) Stock option expense $ 2,482 $ 2,311 $ 7,449 $ 7,634 Restricted stock expense 3,094 3,047 12,240 8,759 Total pre-tax $ 5,576 $ 5,358 $ 19,689 $ 16,393 Pre-tax pre-tax The fair value of each stock option grant is estimated on the date of grant using a Black-Scholes-Merton Black-Scholes-Merton Nine Months Ended Year Ended September 30, 2017 December 31, 2016 Expected volatility 18.0 % 21.8 % Expected term (years) 5.0 5.0 Risk-free interest rate 1.94 % 1.23 % Expected dividend yield 0.60 % 0.77 % Black-Scholes-Merton fair value per stock option granted $ 11.05 $ 9.14 Expected volatility is based on the historical volatility of the Company’s stock over the stock options’ expected term. The Company used historical exercise data to estimate the stock options’ expected term, which represents the period of time that the stock options granted are expected to be outstanding. Management anticipates that the future stock option holding periods will be similar to the historical stock option holding periods. The risk-free interest rate for periods within the expected term of the stock option is based on the U.S. Treasury yield curve at the time of grant. Compensation expense recognized for all share-based awards is net of estimated forfeitures. The Company’s estimated forfeiture rates are based on its historical experience. The following is a summary of the Company’s stock option activity and related information: Shares Weighted Price Weighted Life Aggregate Value (In thousands) (Years) (In millions) Outstanding at December 31, 2016 6,011 $ 42.25 Granted 1,331 60.32 Exercised (1,388 ) 30.96 Forfeited (180 ) 52.17 Expired (8 ) 52.10 Outstanding at September 30, 2017 5,766 $ 48.81 4.4 $ 99.3 Exercisable at September 30, 2017 3,010 $ 43.74 3.1 $ 67.1 The aggregate intrinsic value of stock options exercised during the nine months ended September 30, 2017 was $37.4 million. The total fair value of stock options vested during the nine months ended September 30, 2017 was $12.4 million. As of September 30, 2017, there was approximately $24 million of expected future pre-tax The following is a summary of the Company’s nonvested restricted stock activity and related information: Shares Weighted Average Fair Value (In thousands) Nonvested restricted stock outstanding at December 31, 2016 1,019 $ 48.59 Granted 335 60.24 Vested (317 ) 47.41 Forfeited (66 ) 51.33 Nonvested restricted stock outstanding at September 30, 2017 971 $ 53.32 The total fair value of restricted stock vested during the nine months ended September 30, 2017 was $15.0 million. As of September 30, 2017, there was approximately $32 million of expected future pre-tax |
Retirement and Pension Plans
Retirement and Pension Plans | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Retirement and Pension Plans | 12. Retirement and Pension Plans The components of net periodic pension benefit expense (income) were as follows: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (In thousands) Defined benefit plans: Service cost $ 1,919 $ 1,628 $ 5,657 $ 4,956 Interest cost 6,904 7,448 20,566 22,688 Expected return on plan assets (13,343 ) (12,693 ) (39,884 ) (38,639 ) Amortization of net actuarial loss and other 3,512 2,484 10,536 7,452 Pension income (1,008 ) (1,133 ) (3,125 ) (3,543 ) Other plans: Defined contribution plans 5,830 5,660 18,788 18,537 Foreign plans and other 1,435 1,525 4,323 4,203 Total other plans 7,265 7,185 23,111 22,740 Total net pension expense $ 6,257 $ 6,052 $ 19,986 $ 19,197 For the nine months ended September 30, 2017 and 2016, contributions to the Company’s defined benefit pension plans were $52.5 million and $3.0 million, respectively. The Company’s current estimate of 2017 contributions to its worldwide defined benefit pension plans is in line with the range disclosed in the Company’s Annual Report on Form 10-K |
Product Warranties
Product Warranties | 9 Months Ended |
Sep. 30, 2017 | |
Guarantees and Product Warranties [Abstract] | |
Product Warranties | 13. Product Warranties The Company provides limited warranties in connection with the sale of its products. The warranty periods for products sold vary among the Company’s operations, but generally do not exceed one year. The Company calculates its warranty expense provision based on its historical warranty experience and adjustments are made periodically to reflect actual warranty expenses. Changes in the accrued product warranty obligation were as follows: Nine Months Ended 2017 2016 (In thousands) Balance at the beginning of the period $ 22,007 $ 22,761 Accruals for warranties issued during the period 12,235 9,630 Settlements made during the period (13,690 ) (11,697 ) Warranty accruals related to acquired businesses and other during the period 2,372 1,233 Balance at the end of the period $ 22,924 $ 21,927 Certain settlements of warranties made during the period were for specific nonrecurring warranty obligations. Product warranty obligations are reported as current liabilities in the consolidated balance sheet. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 14. Contingencies Asbestos Litigation The Company (including its subsidiaries) has been named as a defendant in a number of asbestos-related lawsuits. Certain of these lawsuits relate to a business which was acquired by the Company and do not involve products which were manufactured or sold by the Company. In connection with these lawsuits, the seller of such business has agreed to indemnify the Company against these claims (the “Indemnified Claims”). The Indemnified Claims have been tendered to, and are being defended by, such seller. The seller has met its obligations, in all respects, and the Company does not have any reason to believe such party would fail to fulfill its obligations in the future. To date, no judgments have been rendered against the Company as a result of any asbestos-related lawsuit. The Company believes that it has good and valid defenses to each of these claims and intends to defend them vigorously. Environmental Matters Certain historic processes in the manufacture of products have resulted in environmentally hazardous waste by-products non-AMETEK-owned “non-owned” agreed-to non-de non-owned Total environmental reserves at September 30, 2017 and December 31, 2016 were $27.8 million and $28.4 million, respectively, for both non-owned The Company has agreements with other former owners of certain of its acquired businesses, as well as new owners of previously owned businesses. Under certain of the agreements, the former or new owners retained, or assumed and agreed to indemnify the Company against, certain environmental and other liabilities under certain circumstances. The Company and some of these other parties also carry insurance coverage for some environmental matters. To date, these parties have met their obligations in all material respects. The Company believes it has established reserves for the environmental matters described above, which are sufficient to perform all known responsibilities under existing claims and consent orders. The Company has no reason to believe that other third parties would fail to perform their obligations in the future. In the opinion of management, based on presently available information and the Company’s historical experience related to such matters, an adequate provision for probable costs has been made and the ultimate cost resulting from these actions is not expected to materially affect the consolidated results of operations, financial position or cash flows of the Company. The Company has been remediating groundwater contamination for several contaminants, including trichloroethylene (“TCE”), at a formerly owned site in El Cajon, California. Several lawsuits have been filed against the Company alleging damages resulting from the groundwater contamination, including property damages and personal injury, and seeking compensatory and punitive damages. Given the state of uncertainty inherent in these litigations, the Company does not believe it is possible to develop estimates of reasonably possible loss in regard to these matters. The Company believes that it has good and valid defenses to each of these claims and intends to defend them vigorously. The Company does not expect the outcome of these matters, either individually or in the aggregate, to materially affect the consolidated results of operations, financial position or cash flows of the Company. |
Reportable Segments
Reportable Segments | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Reportable Segments | 15. Reportable Segments The Company has two reportable segments, Electronic Instruments Group (“EIG”) and Electromechanical Group (“EMG”). The Company’s operating segments are identified based on the existence of segment managers. Certain of the Company’s operating segments have been aggregated for segment reporting purposes primarily on the basis of product type, production processes, distribution methods and similarity of economic characteristics. At September 30, 2017, there were no significant changes in identifiable assets of reportable segments from the amounts disclosed at December 31, 2016, other than those described in the acquisitions footnote (Note 8), nor were there any significant changes in the basis of segmentation or in the measurement of segment operating results. Operating information relating to the Company’s reportable segments for the three and nine months ended September 30, 2017 and 2016 can be found in the table included in Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report on Form 10-Q. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 16. Stockholders’ Equity The Company had a Shareholder Rights Plan, which expired in June 2017. Under the Plan, the Company’s Board of Directors declared a dividend of one Right for each share of Company common stock owned at the close of business on June 2, 2007, and had authorized the issuance of one Right for each share of common stock of the Company issued between the Record Date and the Distribution Date. The Plan provided, under certain conditions involving acquisition of the Company’s common stock, that holders of Rights, except for the acquiring entity, would be entitled (i) to purchase shares of preferred stock at a specified exercise price, or (ii) to purchase shares of common stock of the Company, or the acquiring company, having a value of twice the Rights exercise price. |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | 17. Restructuring Charges During the fourth quarter of 2016, the Company recorded pre-tax During the fourth quarter of 2015, the Company recorded pre-tax Accrued liabilities in the Company’s consolidated balance sheet included amounts related to the fourth quarter of 2016 and fourth quarter of 2015 restructuring charges as follows (in millions): Fourth Quarter of 2016 Fourth Quarter of 2015 Balance at December 31, 2016 $ 19.2 $ 9.2 Utilization (5.4 ) (1.7 ) Foreign currency translation adjustments and other 0.1 (0.1 ) Balance at September 30, 2017 $ 13.9 $ 7.4 |
Recent Accounting Pronounceme23
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Revenue from Contracts with Customers | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) ASU 2014-09 ASU 2014-09 ASU 2014-09 ASU 2014-09 ASU 2014-09 ASU 2014-09 ASU 2014-09. ASU 2014-09 |
Simplifying the Measurement of Inventory | In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory (“ASU 2015-11”), first-in, first-out last-in, first-out ASU 2015-11 |
Balance Sheet Classification of Deferred Taxes | In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”). ASU 2015-17 ASU 2015-17 ASU 2015-17. |
Leases | In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). right-of-use right-of-use ASU 2016-02 ASU 2016-02 ASU 2016-02 |
Improvements to Employee Share-Based Payment Accounting | In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 ASU 2016-09 |
Clarifying the Definition of a Business | In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business (“ASU 2017-01”). ASU 2017-01 ASU 2017-01 ASU 2017-01 ASU 2017-01 ASU 2017-01 ASU 2017-01 |
Simplifying the Test for Goodwill Impairment | In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 ASU 2017-04 ASU 2017-04 |
Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost | In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”), ASU 2017-07 ASU 2017-07 ASU 2017-07 |
Scope of Modification Accounting | In May 2017, the FASB issued ASU No. 2017-09, Scope of Modification Accounting (“ASU 2017-09”). ASU 2017-09 ASU 2017-09 ASU 2017-09 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Number of Weighted Average Shares | The number of weighted average shares used in the calculation of basic earnings per share and diluted earnings per share was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In thousands) Weighted average shares: Basic shares 230,439 231,894 230,049 233,387 Equity-based compensation plans 1,814 827 1,566 1,189 Diluted shares 232,253 232,721 231,615 234,576 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) consisted of the following: Three Months Ended Three Months Ended September 30, 2017 September 30, 2016 Foreign Currency Items and Other Defined Benefit Pension Plans Total Foreign Currency Items and Other Defined Benefit Pension Plans Total (In thousands) Balance at the beginning of the period $ (294,922 ) $ (199,376 ) $ (494,298 ) $ (271,501 ) $ (151,808 ) $ (423,309 ) Other comprehensive income (loss) before reclassifications: Translation adjustments 37,642 — 37,642 (10,441 ) — (10,441 ) Change in long-term intercompany notes 12,035 — 12,035 3,063 — 3,063 Net investment hedge instruments (32,422 ) — (32,422 ) (1,212 ) — (1,212 ) Gross amounts reclassified from accumulated other comprehensive income (loss) — 3,512 3,512 — 2,484 2,484 Income tax benefit (expense) 12,190 (1,321 ) 10,869 423 (869 ) (446 ) Other comprehensive income (loss), net of tax 29,445 2,191 31,636 (8,167 ) 1,615 (6,552 ) Balance at the end of the period $ (265,477 ) $ (197,185 ) $ (462,662 ) $ (279,668 ) $ (150,193 ) $ (429,861 ) Nine Months Ended Nine Months Ended September 30, 2017 September 30, 2016 Foreign Currency Items and Other Defined Benefit Pension Plans Total Foreign Currency Items and Other Defined Benefit Pension Plans Total (In thousands) Balance at the beginning of the period $ (338,631 ) $ (203,758 ) $ (542,389 ) $ (250,593 ) $ (155,038 ) $ (405,631 ) Other comprehensive income (loss) before reclassifications: Translation adjustments 101,846 — 101,846 (26,581 ) — (26,581 ) Change in long-term intercompany notes 30,727 — 30,727 6,862 — 6,862 Net investment hedge instruments (95,311 ) — (95,311 ) (14,393 ) — (14,393 ) Gross amounts reclassified from accumulated other comprehensive income (loss) — 10,536 10,536 — 7,452 7,452 Income tax benefit (expense) 35,892 (3,963 ) 31,929 5,037 (2,607 ) 2,430 Other comprehensive income (loss), net of tax 73,154 6,573 79,727 (29,075 ) 4,845 (24,230 ) Balance at the end of the period $ (265,477 ) $ (197,185 ) $ (462,662 ) $ (279,668 ) $ (150,193 ) $ (429,861 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets Measured on Recurring Basis | The following table provides the Company’s assets that are measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016, consistent with the fair value hierarchy: September 30, 2017 December 31, 2016 Fair Value Fair Value (In thousands) Fixed-income investments $ 7,896 $ 7,317 |
Fair Value Disclosures of Financial Instrument Liabilities | The following table provides the estimated fair values of the Company’s financial instrument liabilities, for which fair value is measured for disclosure purposes only, compared to the recorded amounts at September 30, 2017 and December 31, 2016: September 30, 2017 December 31, 2016 Recorded Fair Value Recorded Fair Value (In thousands) Short-term borrowings, net $ — $ — $ — $ — Long-term debt, net (including current portion) (2,430,446 ) (2,456,920 ) (2,341,565 ) (2,386,901 ) |
Inventories, net (Tables)
Inventories, net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | September 30, December 31, 2017 2016 (In thousands) Finished goods and parts $ 79,897 $ 75,827 Work in process 118,979 101,484 Raw materials and purchased parts 348,000 314,793 Total inventories, net $ 546,876 $ 492,104 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Allocation of Aggregate Purchase Price of Acquired Net Assets | The following table represents the preliminary allocation of the aggregate purchase price for the net assets of the 2017 acquisitions based on their estimated fair values at acquisition (in millions): Property, plant and equipment $ 21.5 Goodwill 256.4 Other intangible assets 269.5 Long-term liabilities (10.6 ) Deferred income taxes (27.2 ) Net working capital and other (1) 34.5 Total purchase price 544.1 Less: Contingent payment liability (25.5 ) Total cash paid $ 518.6 (1) Includes $30.7 million in accounts receivable, whose fair value, contractual cash flows and expected cash flows are approximately equal. |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amounts of Goodwill by Segment | The changes in the carrying amounts of goodwill by segment were as follows: Electronic Electro- mechanical Total (In millions) Balance at December 31, 2016 $ 1,817.0 $ 1,002.0 $ 2,819.0 Goodwill acquired 256.4 — 256.4 Purchase price allocation adjustments and other 0.1 0.6 0.7 Foreign currency translation adjustments 31.2 31.4 62.6 Balance at September 30, 2017 $ 2,104.7 $ 1,034.0 $ 3,138.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Liability for Uncertain Tax Positions | The following is a reconciliation of the liability for uncertain tax positions (in millions): Balance at December 31, 2016 $ 57.9 Additions for tax positions 8.7 Reductions for tax positions (8.1 ) Balance at September 30, 2017 $ 58.5 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Total Share-Based Compensation Expense | Total share-based compensation expense was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In thousands) Stock option expense $ 2,482 $ 2,311 $ 7,449 $ 7,634 Restricted stock expense 3,094 3,047 12,240 8,759 Total pre-tax $ 5,576 $ 5,358 $ 19,689 $ 16,393 |
Weighted Average Assumptions Used for Estimating Fair Values of Stock Options Granted | The following weighted average assumptions were used in the Black-Scholes-Merton Nine Months Ended Year Ended September 30, 2017 December 31, 2016 Expected volatility 18.0 % 21.8 % Expected term (years) 5.0 5.0 Risk-free interest rate 1.94 % 1.23 % Expected dividend yield 0.60 % 0.77 % Black-Scholes-Merton fair value per stock option granted $ 11.05 $ 9.14 |
Summary of Stock Option Activity and Related Information | The following is a summary of the Company’s stock option activity and related information: Shares Weighted Price Weighted Life Aggregate Value (In thousands) (Years) (In millions) Outstanding at December 31, 2016 6,011 $ 42.25 Granted 1,331 60.32 Exercised (1,388 ) 30.96 Forfeited (180 ) 52.17 Expired (8 ) 52.10 Outstanding at September 30, 2017 5,766 $ 48.81 4.4 $ 99.3 Exercisable at September 30, 2017 3,010 $ 43.74 3.1 $ 67.1 |
Summary of Nonvested Restricted Stock Activity and Related Information | The following is a summary of the Company’s nonvested restricted stock activity and related information: Shares Weighted Average Fair Value (In thousands) Nonvested restricted stock outstanding at December 31, 2016 1,019 $ 48.59 Granted 335 60.24 Vested (317 ) 47.41 Forfeited (66 ) 51.33 Nonvested restricted stock outstanding at September 30, 2017 971 $ 53.32 |
Retirement and Pension Plans (T
Retirement and Pension Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Pension Benefit Expense (Income) | The components of net periodic pension benefit expense (income) were as follows: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (In thousands) Defined benefit plans: Service cost $ 1,919 $ 1,628 $ 5,657 $ 4,956 Interest cost 6,904 7,448 20,566 22,688 Expected return on plan assets (13,343 ) (12,693 ) (39,884 ) (38,639 ) Amortization of net actuarial loss and other 3,512 2,484 10,536 7,452 Pension income (1,008 ) (1,133 ) (3,125 ) (3,543 ) Other plans: Defined contribution plans 5,830 5,660 18,788 18,537 Foreign plans and other 1,435 1,525 4,323 4,203 Total other plans 7,265 7,185 23,111 22,740 Total net pension expense $ 6,257 $ 6,052 $ 19,986 $ 19,197 |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Guarantees and Product Warranties [Abstract] | |
Changes in Accrued Product Warranty Obligation | Changes in the accrued product warranty obligation were as follows: Nine Months Ended 2017 2016 (In thousands) Balance at the beginning of the period $ 22,007 $ 22,761 Accruals for warranties issued during the period 12,235 9,630 Settlements made during the period (13,690 ) (11,697 ) Warranty accruals related to acquired businesses and other during the period 2,372 1,233 Balance at the end of the period $ 22,924 $ 21,927 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Accrued Liabilities in Company's Consolidated Balance Sheet Included Amounts Related to Restructuring Charges | Accrued liabilities in the Company’s consolidated balance sheet included amounts related to the fourth quarter of 2016 and fourth quarter of 2015 restructuring charges as follows (in millions): Fourth Quarter of 2016 Fourth Quarter of 2015 Balance at December 31, 2016 $ 19.2 $ 9.2 Utilization (5.4 ) (1.7 ) Foreign currency translation adjustments and other 0.1 (0.1 ) Balance at September 30, 2017 $ 13.9 $ 7.4 |
Recent Accounting Pronounceme35
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Accounting Standards Update 2016-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Provision for income taxes related to the tax effects of share-based payment transactions | $ 2.5 | $ 11.4 |
Earnings Per Share - Number of
Earnings Per Share - Number of Weighted Average Shares (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Weighted average shares: | ||||
Basic shares | 230,439 | 231,894 | 230,049 | 233,387 |
Equity-based compensation plans | 1,814 | 827 | 1,566 | 1,189 |
Diluted shares | 232,253 | 232,721 | 231,615 | 234,576 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at the beginning of the period | $ 3,256,513 | |||
Other comprehensive income (loss) before reclassifications: | ||||
Translation adjustments | $ 37,642 | $ (10,441) | 101,846 | $ (26,581) |
Change in long-term intercompany notes | 12,035 | 3,063 | 30,727 | 6,862 |
Net investment hedge instruments | (32,422) | (1,212) | (95,311) | (14,393) |
Gross amounts reclassified from accumulated other comprehensive income (loss) | 3,512 | 2,484 | 10,536 | 7,452 |
Income tax benefit (expense) | 10,869 | (446) | 31,929 | 2,430 |
Other comprehensive income (loss), net of tax | 31,636 | (6,552) | 79,727 | (24,230) |
Balance at the end of the period | 3,766,155 | 3,766,155 | ||
Foreign Currency Items and Other [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at the beginning of the period | (294,922) | (271,501) | (338,631) | (250,593) |
Other comprehensive income (loss) before reclassifications: | ||||
Translation adjustments | 37,642 | (10,441) | 101,846 | (26,581) |
Change in long-term intercompany notes | 12,035 | 3,063 | 30,727 | 6,862 |
Net investment hedge instruments | (32,422) | (1,212) | (95,311) | (14,393) |
Income tax benefit (expense) | 12,190 | 423 | 35,892 | 5,037 |
Other comprehensive income (loss), net of tax | 29,445 | (8,167) | 73,154 | (29,075) |
Balance at the end of the period | (265,477) | (279,668) | (265,477) | (279,668) |
Defined Benefit Pension Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at the beginning of the period | (199,376) | (151,808) | (203,758) | (155,038) |
Other comprehensive income (loss) before reclassifications: | ||||
Gross amounts reclassified from accumulated other comprehensive income (loss) | 3,512 | 2,484 | 10,536 | 7,452 |
Income tax benefit (expense) | (1,321) | (869) | (3,963) | (2,607) |
Other comprehensive income (loss), net of tax | 2,191 | 1,615 | 6,573 | 4,845 |
Balance at the end of the period | (197,185) | (150,193) | (197,185) | (150,193) |
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at the beginning of the period | (494,298) | (423,309) | (542,389) | (405,631) |
Other comprehensive income (loss) before reclassifications: | ||||
Balance at the end of the period | $ (462,662) | $ (429,861) | $ (462,662) | $ (429,861) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed-income investments | $ 7,896 | $ 7,317 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
Fair Value Disclosures [Abstract] | ||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | $ 0 | $ 0 |
Fair Value Measurements - Fai40
Fair Value Measurements - Fair Value Disclosures of Financial Instrument Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Recorded Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term borrowings, net | $ 0 | $ 0 |
Long-term debt, net (including current portion) | (2,430,446) | (2,341,565) |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term borrowings, net | 0 | 0 |
Long-term debt, net (including current portion) | $ (2,456,920) | $ (2,386,901) |
Hedging Activities - Additional
Hedging Activities - Additional Information (Detail) - Foreign Exchange Contract [Member] - Designated as Hedging Instrument [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Derivative [Line Items] | |
Percentage of effectiveness on net investment hedges | 100.00% |
Currency remeasurement losses | $ (95.3) |
British-Pound-Denominated Loans [Member] | |
Derivative [Line Items] | |
Hedge against net investment in foreign subsidiaries | 408.7 |
Euro Loan [Member] | |
Derivative [Line Items] | |
Hedge against net investment in foreign subsidiaries | $ 590.7 |
Inventories, net - Inventories
Inventories, net - Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished goods and parts | $ 79,897 | $ 75,827 |
Work in process | 118,979 | 101,484 |
Raw materials and purchased parts | 348,000 | 314,793 |
Total inventories, net | $ 546,876 | $ 492,104 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 |
Business Acquisition [Line Items] | |||
Purchases of businesses, net of cash acquired | $ 518,634,000 | $ 359,976,000 | |
Total other intangible assets acquired | $ 269,500,000 | 269,500,000 | |
Indefinite-lived intangible trade names acquired | 53,600,000 | ||
Finite-lived intangible assets acquired | 215,900,000 | ||
Customer Relationship [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired | $ 162,000,000 | ||
Amortization period for finite-lived intangible asset | 18 years | ||
Purchased Technology [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired | $ 53,900,000 | ||
Amortization period for finite-lived intangible asset | 18 years | ||
Rauland Borg and MOCON [Member] | |||
Business Acquisition [Line Items] | |||
Purchases of businesses, net of cash acquired | 518,600,000 | $ 518,634,000 | |
Goodwill recorded in connection with acquisitions | 146,000,000 | 146,000,000 | |
Total other intangible assets acquired | 269,500,000 | 269,500,000 | |
Future amortization expense, 2017 | 12,000,000 | 12,000,000 | |
Future amortization expense, 2018 | 12,000,000 | 12,000,000 | |
Future amortization expense, 2019 | 12,000,000 | 12,000,000 | |
Future amortization expense, 2020 | 12,000,000 | 12,000,000 | |
Future amortization expense, 2021 | 12,000,000 | 12,000,000 | |
Contingent payment liability | 25,500,000 | 25,500,000 | |
Rauland-Borg [Member] | |||
Business Acquisition [Line Items] | |||
Maximum contingent payment for acquisition | 30,000,000 | 30,000,000 | |
Minimum contingent payment for acquisition | 0 | 0 | |
Rauland-Borg [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Business Acquisition [Line Items] | |||
Contingent payment liability | 25,500,000 | $ 25,500,000 | |
Change in contingent payment liability | $ 0 |
Acquisitions - Allocation of Ag
Acquisitions - Allocation of Aggregate Purchase Price of Acquired Net Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 3,138,742 | $ 3,138,742 | $ 2,818,950 | |
Other intangible assets | 269,500 | 269,500 | ||
Total cash paid | 518,634 | $ 359,976 | ||
Rauland Borg and MOCON [Member] | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment | 21,500 | 21,500 | ||
Goodwill | 256,400 | 256,400 | ||
Other intangible assets | 269,500 | 269,500 | ||
Long-term liabilities | (10,600) | (10,600) | ||
Deferred income taxes | (27,200) | (27,200) | ||
Net working capital and other | 34,500 | 34,500 | ||
Total purchase price | 544,100 | |||
Less: Contingent payment liability | (25,500) | (25,500) | ||
Total cash paid | $ 518,600 | $ 518,634 |
Acquisitions - Allocation of 45
Acquisitions - Allocation of Aggregate Purchase Price of Acquired Net Assets (Parenthetical) (Detail) $ in Millions | Sep. 30, 2017USD ($) |
Rauland Borg and MOCON [Member] | |
Business Acquisition [Line Items] | |
Accounts receivable included in purchase price | $ 30.7 |
Goodwill - Changes in Carrying
Goodwill - Changes in Carrying Amounts of Goodwill by Segment (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill [Line Items] | |
Goodwill, beginning balance | $ 2,818,950 |
Goodwill acquired | 256,400 |
Purchase price allocation adjustments and other | 700 |
Foreign currency translation adjustments | 62,600 |
Goodwill, ending balance | 3,138,742 |
Electronic Instruments Group [Member] | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 1,817,000 |
Goodwill acquired | 256,400 |
Purchase price allocation adjustments and other | 100 |
Foreign currency translation adjustments | 31,200 |
Goodwill, ending balance | 2,104,700 |
Electromechanical Group [Member] | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 1,002,000 |
Purchase price allocation adjustments and other | 600 |
Foreign currency translation adjustments | 31,400 |
Goodwill, ending balance | $ 1,034,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Gross unrecognized tax benefits | $ 58.5 | $ 57.9 |
The total amount of unrecognized tax benefits that would impact tax rate, if recognized | $ 49 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Liability for Uncertain Tax Positions (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |
Balance at December 31, 2016 | $ 57.9 |
Additions for tax positions | 8.7 |
Reductions for tax positions | (8.1) |
Balance at September 30, 2017 | $ 58.5 |
Share-Based Compensation - Tota
Share-Based Compensation - Total Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock option expense | $ 2,482 | $ 2,311 | $ 7,449 | $ 7,634 |
Restricted stock expense | 3,094 | 3,047 | 12,240 | 8,759 |
Total pre-tax expense | $ 5,576 | $ 5,358 | $ 19,689 | $ 16,393 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) shares in Thousands, $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate intrinsic value of stock options exercised | $ 37.4 | |
Total fair value of stock options vested | 12.4 | |
Expected future pre-tax compensation expense, nonvested stock options | $ 24 | |
Nonvested stock option outstanding | 2,800 | |
Weighted average period to recognize expected future pre-tax compensation expense (in years) | 2 years | |
Executive Chairman of the Board of Directors [Member] | Corporate Administrative Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pre-tax share-based compensation expense | $ 2.5 | |
Restricted Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average period to recognize expected future pre-tax compensation expense (in years) | 2 years | |
Total fair value of vested restricted stock | $ 15 | |
Expected future pre-tax compensation expense, nonvested restricted shares | $ 32 | |
Nonvested restricted stock outstanding | 971 | 1,019 |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted Average Assumptions Used for Estimating Fair Values of Stock Options Granted (Detail) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected volatility | 18.00% | 21.80% |
Expected term (years) | 5 years | 5 years |
Risk-free interest rate | 1.94% | 1.23% |
Expected dividend yield | 0.60% | 0.77% |
Black-Scholes-Merton fair value per stock option granted | $ 11.05 | $ 9.14 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activity and Related Information (Detail) $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Beginning balance, Outstanding, Shares | shares | 6,011 |
Granted, Shares | shares | 1,331 |
Exercised, Shares | shares | (1,388) |
Forfeited, Shares | shares | (180) |
Expired, Shares | shares | (8) |
Ending balance, Outstanding, Shares | shares | 5,766 |
Ending balance, Exercisable, Shares | shares | 3,010 |
Beginning balance, Outstanding, Weighted Average Exercise Price | $ / shares | $ 42.25 |
Granted, Weighted Average Exercise Price | $ / shares | 60.32 |
Exercised, Weighted Average Exercise Price | $ / shares | 30.96 |
Forfeited, Weighted Average Exercise Price | $ / shares | 52.17 |
Expired, Weighted Average Exercise Price | $ / shares | 52.10 |
Ending balance, Outstanding, Weighted Average Exercise Price | $ / shares | 48.81 |
Ending balance, Exercisable, Weighted Average Exercise Price | $ / shares | $ 43.74 |
Ending balance, Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 4 months 24 days |
Ending balance, Exercisable, Weighted Average Remaining Contractual Life (Years) | 3 years 1 month 6 days |
Ending balance, Outstanding, Aggregate Intrinsic Value | $ | $ 99.3 |
Ending balance, Exercisable, Aggregate Intrinsic Value | $ | $ 67.1 |
Share-Based Compensation - Su53
Share-Based Compensation - Summary of Nonvested Restricted Stock Activity and Related Information (Detail) - Restricted Shares [Member] shares in Thousands | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance, Nonvested restricted stock outstanding | shares | 1,019 |
Granted | shares | 335 |
Vested | shares | (317) |
Forfeited | shares | (66) |
Ending balance, Nonvested restricted stock outstanding | shares | 971 |
Beginning balance, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 48.59 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 60.24 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 47.41 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 51.33 |
Ending balance, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 53.32 |
Retirement and Pension Plans -
Retirement and Pension Plans - Components of Net Periodic Pension Benefit Expense (Income) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Defined benefit plans: | ||||
Service cost | $ 1,919 | $ 1,628 | $ 5,657 | $ 4,956 |
Interest cost | 6,904 | 7,448 | 20,566 | 22,688 |
Expected return on plan assets | (13,343) | (12,693) | (39,884) | (38,639) |
Amortization of net actuarial loss and other | 3,512 | 2,484 | 10,536 | 7,452 |
Pension income | (1,008) | (1,133) | (3,125) | (3,543) |
Other plans: | ||||
Defined contribution plans | 5,830 | 5,660 | 18,788 | 18,537 |
Foreign plans and other | 1,435 | 1,525 | 4,323 | 4,203 |
Total other plans | 7,265 | 7,185 | 23,111 | 22,740 |
Total net pension expense | $ 6,257 | $ 6,052 | $ 19,986 | $ 19,197 |
Retirement and Pension Plans 55
Retirement and Pension Plans - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Retirement Benefits [Abstract] | ||
Defined benefit pension plan contributions | $ 52.5 | $ 3 |
Product Warranties - Additional
Product Warranties - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017 | |
Product Warranties Disclosures [Abstract] | |
Product warranty description | The Company provides limited warranties in connection with the sale of its products. The warranty periods for products sold vary among the Company's operations, but generally do not exceed one year. |
Product Warranties - Changes in
Product Warranties - Changes in Accrued Product Warranty Obligation (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Guarantees [Abstract] | ||
Balance at the beginning of the period | $ 22,007 | $ 22,761 |
Accruals for warranties issued during the period | 12,235 | 9,630 |
Settlements made during the period | (13,690) | (11,697) |
Warranty accruals related to acquired businesses and other during the period | 2,372 | 1,233 |
Balance at the end of the period | $ 22,924 | $ 21,927 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Millions | Sep. 30, 2017USD ($)site | Sep. 30, 2017USD ($)site | Dec. 31, 2016USD ($) |
Site Contingency [Line Items] | |||
Number of non-owned sites Company is named Potentially Responsible Party | site | 13 | 13 | |
Number of non-owned sites the Company is identified as a de minimis party | site | 12 | 12 | |
Number of non-owned sites Company has reached tentative settlement agreement | site | 8 | 8 | |
Number of non-owned sites Company is still working to establish settlement amount | site | 4 | 4 | |
Total environmental reserves | $ 27.8 | $ 27.8 | $ 28.4 |
Increase (decrease) in environmental reserves | 3.5 | ||
Total expenses related to environmental matters | 4.4 | ||
Foreign currency translation | 0.3 | ||
HCC Industries [Member] | |||
Site Contingency [Line Items] | |||
Reserves related to an owned site acquired | 11.9 | 11.9 | $ 12.4 |
Receivables related to HCC for probable recoveries from third-party funds | 12 | $ 12 | |
Amount for which the Company is indemnified by HCC's former owners | $ 19 |
Reportable Segments - Additiona
Reportable Segments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017Right | |
Statement of Stockholders' Equity [Abstract] | |
Stockholders right expiration date | 2017-06 |
Number of rights per common share declared under the Shareholder Rights Plan | 1 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Reduction in net income due to restructuring charges | $ 17 | $ 13.9 |
Restructuring charges | 25.6 | 20.7 |
Severance cost | 19.3 | |
Asset write-downs | 6.2 | |
Electronic Instruments Group [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 12.4 | 9.3 |
Electromechanical Group [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 11.6 | 10.8 |
Cost of Sales, Excluding Depreciation [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 24 | 20 |
Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1.6 | 0.7 |
Corporate Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 1.6 | $ 0.7 |
Restructuring Charges - Schedul
Restructuring Charges - Schedule of Accrued Liabilities in Company's Consolidated Balance Sheet Included Amounts Related to Restructuring Charges (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Fourth Quarter of 2016 Restructuring [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring reserve, beginning balance | $ 19.2 |
Utilization | (5.4) |
Foreign currency translation adjustments and other | 0.1 |
Restructuring reserve, ending balance | 13.9 |
Fourth Quarter of 2015 Restructuring [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring reserve, beginning balance | 9.2 |
Utilization | (1.7) |
Foreign currency translation adjustments and other | (0.1) |
Restructuring reserve, ending balance | $ 7.4 |