Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 28, 2018 | Oct. 18, 2018 | |
Document and Entity Information [Abstract] | ||
Document type | 10-Q | |
Amendment flag | false | |
Document period end date | Sep. 28, 2018 | |
Document fiscal year focus | 2,018 | |
Document fiscal period focus | Q3 | |
Trading symbol | FTV | |
Entity registrant name | Fortive Corporation | |
Entity small business | false | |
Entity emerging growth company | false | |
Entity central index key | 1,659,166 | |
Current fiscal year end date | --12-31 | |
Entity filer category | Large Accelerated Filer | |
Entity common stock, shares outstanding | 333,962,913 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Sep. 28, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and equivalents | $ 1,145.1 | $ 962.1 |
Accounts receivable, net | 1,295.6 | 1,143.6 |
Inventories: | ||
Finished goods | 222.7 | 217.2 |
Work in process | 109.8 | 78.9 |
Raw materials | 316.7 | 284.5 |
Total inventories | 649.2 | 580.6 |
Prepaid expenses and other current assets | 324.4 | 250.5 |
Total current assets | 3,414.3 | 2,936.8 |
Property, plant and equipment, net of accumulated depreciation of $1,135.4 and $1,086.8 at September 28, 2018 and December 31, 2017, respectively | 682.3 | 712.5 |
Other assets | 523 | 476.8 |
Goodwill | 6,743.3 | 5,098.5 |
Other intangible assets, net | 2,499.9 | 1,276 |
Total assets | 13,862.8 | 10,500.6 |
Current liabilities: | ||
Current portion of long-term debt | 1,824.5 | 0 |
Trade accounts payable | 758.7 | 727.5 |
Accrued expenses and other current liabilities | 896.3 | 874.8 |
Total current liabilities | 3,479.5 | 1,602.3 |
Other long-term liabilities | 1,356.2 | 1,033.9 |
Long-term debt | 3,178 | 4,056.2 |
Equity: | ||
5.0% Mandatory convertible preferred stock, series A: $0.01 par value, 15.0 million shares authorized; 1.4 million shares issued and outstanding at September 28, 2018; no shares issued or outstanding at December 31, 2017 | 0 | 0 |
Common stock: $0.01 par value, 2.0 billion shares authorized; 350.3 and 348.2 million issued; 349.8 and 347.8 million outstanding at September 28, 2018 and December 31, 2017, respectively | 3.5 | 3.5 |
Additional paid-in capital | 3,862.5 | 2,444.1 |
Retained earnings | 2,057.1 | 1,350.3 |
Accumulated other comprehensive income (loss) | (92.8) | (7.6) |
Total Fortive stockholders’ equity | 5,830.3 | 3,790.3 |
Noncontrolling interests | 18.8 | 17.9 |
Total stockholders’ equity | 5,849.1 | 3,808.2 |
Total liabilities and equity | $ 13,862.8 | $ 10,500.6 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 28, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 1,135.4 | $ 1,086.8 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock issued (in shares) | 1,400,000 | 0 |
Preferred stock outstanding (in shares) | 1,400,000 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock issued (in shares) | 350,300,000 | 348,200,000 |
Common stock outstanding (in shares) | 349,800,000 | 347,800,000 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |
Income Statement [Abstract] | ||||
Sales | $ 1,840.1 | $ 1,685.3 | $ 5,436.8 | $ 4,849.3 |
Cost of sales | (915.8) | (845.9) | (2,702.8) | (2,460.8) |
Gross profit | 924.3 | 839.4 | 2,734 | 2,388.5 |
Operating costs: | ||||
Selling, general and administrative expenses | (490.4) | (380.7) | (1,359.5) | (1,089.8) |
Research and development expenses | (112.5) | (102) | (332.4) | (297.3) |
Operating profit | 321.4 | 356.7 | 1,042.1 | 1,001.4 |
Non-operating expenses: | ||||
Gain from acquisition | 0 | 15.3 | 0 | 15.3 |
Interest expense, net | (24.4) | (22.9) | (74.3) | (68.2) |
Other non-operating expenses | (0.8) | (0.8) | (2.6) | (2.3) |
Earnings before income taxes | 296.2 | 348.3 | 965.2 | 946.2 |
Income taxes | (50.9) | (80.5) | (163.7) | (238.6) |
Net earnings | 245.3 | 267.8 | 801.5 | 707.6 |
Mandatory convertible preferred stock cumulative dividends | (17.4) | 0 | (17.6) | 0 |
Net earnings attributable to common stockholders | $ 227.9 | $ 267.8 | $ 783.9 | $ 707.6 |
Net earnings per common share: | ||||
Basic (in dollars per share) | $ 0.65 | $ 0.77 | $ 2.24 | $ 2.04 |
Diluted (in dollars per share) | $ 0.64 | $ 0.76 | $ 2.21 | $ 2.01 |
Average common stock and common equivalent shares outstanding: | ||||
Basic (in shares) | 349.9 | 347.7 | 349.2 | 347.3 |
Diluted (in shares) | 355.3 | 352.9 | 354.8 | 352.2 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 245.3 | $ 267.8 | $ 801.5 | $ 707.6 |
Other comprehensive income, net of income taxes: | ||||
Foreign currency translation adjustments | (23.9) | 38.1 | (87.3) | 126.9 |
Pension adjustments | 0.7 | 0.9 | 2.1 | 2.6 |
Total other comprehensive income, net of income taxes | (23.2) | 39 | (85.2) | 129.5 |
Comprehensive income | $ 222.1 | $ 306.8 | $ 716.3 | $ 837.1 |
Consolidated Condensed Statem_3
Consolidated Condensed Statement of Changes in Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Preferred Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Balance, January 1, 2018 | $ 3.5 | $ 0 | $ 2,444.1 | $ 1,346.4 | $ (7.6) | $ 17.9 | |
Adoption of accounting standards | (3.9) | ||||||
Beginning balance at Dec. 31, 2017 | $ 3,808.2 | $ 3.5 | $ 0 | 2,444.1 | 1,350.3 | (7.6) | 17.9 |
Common stock outstanding (in shares) at Dec. 31, 2017 | 347.8 | 347.8 | |||||
Preferred stock outstanding (in shares) at Dec. 31, 2017 | 0 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings for the period | $ 801.5 | 801.5 | |||||
Dividends to shareholders | (73.2) | (73.2) | |||||
Mandatory convertible preferred stock cumulative dividends | (17.6) | ||||||
Separation related adjustments | 9.1 | ||||||
Other comprehensive income | (85.2) | (85.2) | |||||
Common stock-based award activity | 72.3 | ||||||
Common stock-based award activity (in shares) | 2 | ||||||
Issuance of mandatory convertible preferred stock | 1,337.4 | 1,337 | |||||
Issuance of mandatory convertible preferred stock (in shares) | 1.4 | ||||||
Change in noncontrolling interests | 0.9 | ||||||
Ending balance at Sep. 28, 2018 | $ 5,849.1 | $ 3.5 | $ 0 | $ 3,862.5 | $ 2,057.1 | $ (92.8) | $ 18.8 |
Common stock outstanding (in shares) at Sep. 28, 2018 | 349.8 | 349.8 | |||||
Preferred stock outstanding (in shares) at Sep. 28, 2018 | 1.4 | 1.4 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 28, 2018 | Sep. 29, 2017 | |
Cash flows from operating activities: | ||
Net earnings | $ 801.5 | $ 707.6 |
Noncash items: | ||
Depreciation | 103.3 | 72.4 |
Amortization | 81.5 | 41.3 |
Stock-based compensation expense | 40.5 | 37.2 |
Gain from acquisition | 0 | (15.3) |
Change in accounts receivable, net | (85.1) | (30.8) |
Change in inventories | (78.9) | 8.2 |
Change in trade accounts payable | 30.2 | (51.2) |
Change in prepaid expenses and other assets | (28.8) | (17.9) |
Change in accrued expenses and other liabilities | 35.4 | (38.5) |
Net cash provided by operating activities | 899.6 | 713 |
Cash flows from investing activities: | ||
Cash paid for acquisitions | (2,825.2) | (802.1) |
Payments for additions to property, plant and equipment | (93.7) | (87.7) |
All other investing activities | 4.1 | 1.5 |
Net cash used in investing activities | (2,914.8) | (888.3) |
Cash flows from financing activities: | ||
Net (repayments of) proceeds from borrowings (maturities of 90 days or less) | (64.3) | 176.8 |
Proceeds from borrowings (maturities longer than 90 days) | 1,750 | 125.9 |
Repayment of borrowings (greater than 90 days) | (725) | 0 |
Proceeds from issuance of mandatory convertible preferred stock net of $43 million of issuance costs | 1,337.4 | 0 |
Payment of common stock cash dividend to shareholders | (73.2) | (72.8) |
Payment of mandatory convertible preferred stock cash dividend to shareholders | (17.6) | 0 |
All other financing activities | 27.2 | 10.9 |
Net cash provided by financing activities | 2,234.5 | 240.8 |
Effect of exchange rate changes on cash and equivalents | (36.3) | 42.2 |
Net change in cash and equivalents | 183 | 107.7 |
Beginning balance of cash and equivalents | 962.1 | 803.2 |
Ending balance of cash and equivalents | $ 1,145.1 | $ 910.9 |
Consolidated Condensed Statem_5
Consolidated Condensed Statements of Cash Flows Parenthetical $ in Millions | 9 Months Ended |
Sep. 28, 2018USD ($) | |
Parenthetical [Abstract] | |
Payments of stock issuance costs | $ 43 |
Business Overview
Business Overview | 9 Months Ended |
Sep. 28, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview | NOTE 1. BUSINESS OVERVIEW Fortive Corporation (“Fortive”, the “Company,” “we,” “us,” or “our”) is a diversified industrial growth company encompassing businesses that are recognized leaders in attractive markets. Our well-known brands hold leading positions in advanced instrumentation and solutions, transportation technology, sensing, automation and specialty, and franchise distribution markets. Our businesses design, develop, service, manufacture and market professional and engineered products, software and services for a variety of end markets, building upon leading brand names, innovative technology and significant market positions. We prepared the unaudited consolidated condensed financial statements included herein in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) applicable for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations; however, we believe the disclosures are adequate to make the information presented not misleading. The consolidated condensed financial statements included herein should be read in conjunction with the audited annual consolidated financial statements as of and for the year ended December 31, 2017 and the footnotes (“Notes”) thereto included within our 2017 Annual Report on Form 10-K . In our opinion, the accompanying financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to fairly present our financial position as of September 28, 2018 and December 31, 2017 , and our results of operations and cash flows for the three and nine months ended September 28, 2018 and September 29, 2017 . Reclassification of certain prior year amounts have been made to conform to current year presentation. Accumulated Other Comprehensive Income (Loss) —Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. The changes in accumulated other comprehensive income (loss) by component are summarized below ($ in millions): Foreign currency translation adjustments Pension adjustments Total For the Three Months Ended September 28, 2018: Balance, June 29, 2018 $ 0.6 $ (70.2 ) $ (69.6 ) Other comprehensive income (loss) before reclassifications, net of income taxes (23.9 ) — (23.9 ) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 0.9 (a) 0.9 Income tax impact — (0.2 ) (0.2 ) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.7 0.7 Net current period other comprehensive income (loss), net of income taxes (23.9 ) 0.7 (23.2 ) Balance, September 28, 2018 $ (23.3 ) $ (69.5 ) $ (92.8 ) (a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 7 for additional details). Foreign currency translation adjustments Pension Total For the Three Months Ended September 29, 2017: Balance, June 30, 2017 $ 16.2 $ (71.5 ) $ (55.3 ) Other comprehensive income (loss) before reclassifications, net of income taxes 38.1 — 38.1 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 1.2 (a) 1.2 Income tax impact — (0.3 ) (0.3 ) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.9 0.9 Net current period other comprehensive income (loss), net of income taxes 38.1 0.9 39.0 Balance, September 29, 2017 $ 54.3 $ (70.6 ) $ (16.3 ) For the Nine Months Ended September 28, 2018: Balance, December 31, 2017 $ 64.0 $ (71.6 ) $ (7.6 ) Other comprehensive income (loss) before reclassifications, net of income taxes (87.3 ) — (87.3 ) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 2.7 (a) 2.7 Income tax impact — (0.6 ) (0.6 ) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 2.1 2.1 Net current period other comprehensive income (loss) (87.3 ) 2.1 (85.2 ) Balance, September 28, 2018 $ (23.3 ) $ (69.5 ) $ (92.8 ) For the Nine Months Ended September 29, 2017: Balance, December 31, 2016 $ (72.6 ) $ (73.2 ) $ (145.8 ) Other comprehensive income (loss) before reclassifications, net of income taxes 126.9 — 126.9 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 3.4 (a) 3.4 Income tax impact — (0.8 ) (0.8 ) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 2.6 2.6 Net current period other comprehensive income (loss) 126.9 2.6 129.5 Balance, September 29, 2017 $ 54.3 $ (70.6 ) $ (16.3 ) (a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 7 for additional details). Recently Issued Accounting Standards —In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amends the impairment model by requiring entities to use a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. This standard is effective for us beginning January 1, 2020, with early adoption permitted. We are currently evaluating the impact of this standard on our financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which will require, among other items, lessees to recognize a right-of-use asset and a lease liability for most leases. The standard also requires lessees and lessors to disclose the amount, timing and uncertainty of cash flows arising from leases. The accounting applied by a lessor is largely unchanged from the current standard. In September 2017, the FASB issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842) , which provided additional implementation guidance on the previously issued ASU. This standard is effective for us beginning January 1, 2019 (with early adoption permitted), and it also provides for certain practical expedients that we plan to elect. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), Targeted Improvements, |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Sep. 28, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | NOTE 2. ACQUISITIONS AND DIVESTITURES For a description of our material acquisition activity in 2017 and during the nine months ended September 28, 2018 , refer to Note 3 of our 2017 Annual Report on Form 10-K and the discussion below. We continually evaluate potential mergers, acquisitions and divestitures that align with our strategy and expedite the evolution of our portfolio of businesses into new and attractive areas. We have completed a number of acquisitions that have been accounted for as purchases and resulted in the recognition of goodwill in our financial statements. This goodwill arises because the purchase price for each acquired business reflects a number of factors including the complimentary fit, acceleration of our strategy and synergies the business brings with respect to our existing operations, the future earnings and cash flow potential of the business, the potential to add other strategically complimentary acquisitions to the acquired business, the scarce or unique nature of the business in its markets, competition to acquire the business, the valuation of similar businesses in the marketplace (as reflected in a multiple of revenues, earnings or cash flows) and the avoidance of the time and costs which would be required (and the associated risks that would be encountered) to enhance our existing offerings to key target markets and develop new and profitable businesses. We make an initial allocation of the purchase price at the date of acquisition based on our understanding of the fair value of the acquired assets and assumed liabilities. We obtain this information during due diligence and through other sources. In the months after closing, as we obtain additional information about these assets and liabilities, including through tangible and intangible asset appraisals, and learn more about the newly acquired business, we are able to refine the estimates of fair value and more accurately allocate the purchase price. Only items identified as of the acquisition date are considered for subsequent adjustment. We are in the process of obtaining valuations of certain acquired assets and evaluating the tax impact of certain acquisitions. We make appropriate adjustments to purchase price allocations prior to completion of the applicable measurement period, as required. Completed Acquisitions in 2018 Accruent On September 6, 2018, we acquired Accruent, LLC (“Accruent”), a privately-held, leading provider of facilities asset management software, for a total purchase price of approximately $2.0 billion net of acquired cash (the “Accruent Acquisition”). Accruent is a recognized leader in the facilities asset management industry, combining deep domain and industry capabilities with an integrated, cloud-based framework that provides insights spanning the full lifecycle of real estate, facilities and asset management. Accruent serves over 10,000 global customers, and helps assure clients fulfill the mission of their organization by extending the lifecycle of assets, monitoring full compliance and reducing safety risks. Accruent is headquartered in Austin, Texas, and is included in our the Professional Instrumentation Segment. Accruent generated annual revenues of approximately $200 million in 2017. We financed the Accruent Acquisition with available cash and proceeds from our financing activities. We preliminarily recorded approximately $1.2 billion of goodwill related to the Accruent Acquisition. Gordian On July 27, 2018, we acquired TGG Ultimate Holdings, Inc. and its subsidiaries, including The Gordian Group, Inc. (“Gordian”), a privately-held, leading provider of construction cost data, software and service, for a total purchase price of $778 million net of cash acquired (the “Gordian Acquisition”). Gordian’s comprehensive offerings serve the entire building lifecycle and provide workflow solutions designed to optimize every stage of an asset owner’s construction and maintenance needs, including connecting the owner and contractors in the same exchange and providing access to cost and facility metrics databases via a subscription-based model. Gordian is headquartered in Greenville, South Carolina, and is included in our Professional Instrumentation segment. Gordian generated annual revenues of approximately $110 million in 2017. We financed the Gordian Acquisition with available cash. We preliminarily recorded approximately $443 million of goodwill related to the Gordian Acquisition. In addition to the acquisitions of Accruent and Gordian, during the nine months ended September 28, 2018 , we acquired one business for total consideration of $7.7 million in cash, net of cash acquired. The business acquired complements existing units of our Professional Instrumentation segment. We preliminarily recorded an aggregate of $1.8 million of goodwill related to this acquisition . The following summarizes the provisional fair value estimates of the assets acquired and liabilities assumed at the date of acquisition for all acquisitions closed during the nine months ended September 28, 2018 ($ in millions): Accruent Gordian Other Total Accounts receivable $ 52.8 $ 30.0 $ — $ 82.8 Property, plant and equipment 4.1 3.0 — 7.1 Goodwill 1,217.5 442.5 1.8 1,661.8 Other intangible assets, primarily customer relationships, trade names and technology 926.5 376.5 6.8 1,309.8 Trade accounts payable (8.7 ) (1.0 ) — (9.7 ) Other assets and liabilities, net (199.3 ) (72.8 ) (0.9 ) (273.0 ) Net cash consideration $ 1,992.9 $ 778.2 $ 7.7 $ 2,778.8 Pro Forma Financial Information (Unaudited) The unaudited pro forma information for the periods set forth below gives effect to the 2018 and 2017 acquisitions as if they had occurred as of January 1, 2017. The pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been achieved had the acquisitions been consummated as of that time ($ in millions except per share amounts): Three Months Ended Nine Months Ended September 28, 2018 September 29, 2017 September 28, 2018 September 29, 2017 Sales $ 1,895.5 $ 1,854.0 $ 5,691.4 $ 5,396.4 Net earnings $ 228.0 $ 211.9 $ 730.0 $ 584.1 Diluted net earnings per share $ 0.64 $ 0.60 $ 2.07 $ 1.66 Revenue and operating losses attributable to the acquisitions included in our results for the three and nine months ended September 28, 2018 were $35.7 million and $19.1 million , respectively. Tritium On September 11, 2018, we acquired a minority interest in Tritium Holdings Pty, Ltd for less than $50.0 million . Tritium specializes in the design and manufacture of DC fast charging solutions for electric vehicles. Established in 2001, it launched its first DC fast charger in 2014, and has since become a leading global supplier, with installations in 26 countries. Tritium offers a range of hardware, software and services developed and designed to support the global transition to e-mobility. Our investment in Tritium is recorded in Other assets on the Consolidated Condensed Balance Sheet at cost. We have elected to use the measurement alternative for equity investments without readily determinable fair values and evaluate this investment for indicators of impairment quarterly. Pending Acquisitions Advanced Sterilization Products On June 6, 2018, we made a binding offer to Ethicon, Inc., a subsidiary of Johnson & Johnson, to purchase its Advanced Sterilization Products (“ASP”) business for approximately $2.7 billion in cash. On September 20, 2018, Ethicon, Inc. accepted our offer and countersigned the purchase agreement. The transaction is expected to close in the first quarter of 2019 and is subject to customary closing conditions. ASP is a leading global provider of innovative sterilization and disinfection solutions and pioneered low-temperature hydrogen peroxide sterilization technology. ASP’s products, which are sold globally, include the STERRAD system for sterilizing instruments and the EVOTECH and ENDOCLENS systems for endoscope reprocessing and cleaning. Divestiture of A&S Business On March 7, 2018, we entered into a definitive agreement to combine four of our operating companies from our Automation & Specialty platform (the “A&S Business”) with Altra Industrial Motion Corp (“Altra”) in a tax-efficient Reverse Morris Trust transaction. The A&S Business includes the market-leading brands of Kollmorgen, Thomson, Portescap and Jacobs Vehicle Systems, and generated approximately $907 million in revenue for the year ended December 31, 2017. On October 1, 2018, we completed the split-off of the A&S Business. The total consideration received was $2.7 billion and consisted of (i) $1.3 billion through a fully-subscribed exchange offer, in which we accepted and subsequently retired 15,824,931 shares of our own common stock from our stockholders in exchange for the 35,000,000 of common stock of Stevens Holding Company, Inc.; (ii) $1.0 billion in cash paid to us for the direct sales of certain assets and liabilities of the A&S Business; (iii) $248.5 million as part of a debt-for-debt exchange that reduced outstanding indebtedness of Fortive; and (iv) $150 million in cash paid to us by Steven’s Holding Company, Inc. as a dividend. As this transaction occurred during the fourth quarter of 2018, we will retrospectively classify the A&S Business as discontinued operations in our financial statements beginning in the fourth quarter of 2018 in accordance with the authoritative accounting guidance. Transaction Costs We incurred approximately $56.0 million and $70.8 million of pretax transaction-related costs associated with the divestiture and these acquisitions during during the three and nine months ended September 28, 2018 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 28, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 3. GOODWILL The following is a rollforward of our goodwill ($ in millions): Balance, December 31, 2017 $ 5,098.5 Attributable to 2018 acquisitions 1,661.8 Foreign currency translation & other (17.0 ) Balance, September 28, 2018 $ 6,743.3 The carrying value of goodwill by segment is summarized as follows ($ in millions): September 28, 2018 December 31, 2017 Professional Instrumentation $ 4,992.3 $ 3,331.0 Industrial Technologies 1,751.0 1,767.5 Total goodwill $ 6,743.3 $ 5,098.5 We have not identified any triggering events which would have indicated a potential impairment of goodwill in the nine months ended September 28, 2018 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 28, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 4. FAIR VALUE MEASUREMENTS Accounting standards define fair value based on an exit price model, establish a framework for measuring fair value where our assets and liabilities are required to be carried at fair value and provide for certain disclosures related to the valuation methods used within a valuation hierarchy as established within the accounting standards. 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, quoted prices for identical or similar assets in markets that are not active, or other observable characteristics for the asset or liability, including interest rates, yield curves and credit risks, or inputs that are derived principally from, or corroborated by, observable market data through correlation. • Level 3 inputs are unobservable inputs based on our assumptions. The classification of a financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Below is a summary of financial liabilities that are measured at fair value on a recurring basis ($ in millions): Quoted Prices in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total September 28, 2018 Deferred compensation liabilities $ — $ 24.2 $ — $ 24.2 December 31, 2017 Deferred compensation liabilities $ — $ 20.9 $ — $ 20.9 Certain management employees participate in our nonqualified deferred compensation programs that permit such employees to defer a portion of their compensation, on a pretax basis, until after their termination of employment. All amounts deferred under such plans are unfunded, unsecured obligations and are presented as a component of our compensation and benefits accrual included in other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets. Participants may choose among alternative earning rates for the amounts they defer, which are primarily based on investment options within our defined contribution plans for the benefit of U.S. employees (except that the earnings rates for amounts contributed unilaterally by the Company are entirely based on changes in the value of Fortive common stock). Changes in the deferred compensation liability under these programs are recognized based on changes in the fair value of the participants’ accounts, which are based on the applicable earnings rates. Fair Value of Financial Instruments The carrying amount and fair value of financial instruments are as follows ($ in millions): September 28, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Current portion of long-term debt $ 1,824.5 $ 1,822.4 $ — $ — Long-term debt, net of current maturities $ 3,178.0 $ 3,075.1 $ 4,056.2 $ 4,051.8 As of September 28, 2018 and December 31, 2017 , the current portion of long-term debt and long-term debt, net of current maturities were categorized as Level 1. |
Financing and Capital
Financing and Capital | 9 Months Ended |
Sep. 28, 2018 | |
Debt Disclosure [Abstract] | |
Financing and Capital | NOTE 5. FINANCING AND CAPITAL Financing The carrying value of the components of our long-term debt were as follows ($ in millions): September 28, 2018 December 31, 2017 U.S. dollar-denominated commercial paper $ 594.6 $ 665.1 Euro-denominated commercial paper 273.3 282.7 U.S. dollar variable interest rate term loan due 2019 175.0 500.0 Delayed-draw term loan due 2019 1,350.0 — Yen variable interest rate term loan due 2022 121.3 122.4 1.80% senior unsecured notes due 2019 299.5 298.9 2.35% senior unsecured notes due 2021 746.7 745.9 3.15% senior unsecured notes due 2026 891.8 891.0 4.30% senior unsecured notes due 2046 546.9 546.8 Other 3.4 3.4 Long-term debt 5,002.5 4,056.2 Less: current portion of long-term debt 1,824.5 — Long-term debt, net of current maturities $ 3,178.0 $ 4,056.2 Unamortized debt discounts, premiums and issuance costs of $15.5 million and $18.2 million as of September 28, 2018 and December 31, 2017 , respectively, are netted against the aggregate principal amounts of the components of debt table above. Refer to Note 9 of our 2017 Annual Report on Form 10-K for further details of our debt financing. We generally satisfy any short-term liquidity needs that are not met through operating cash flows and available cash primarily through issuances of commercial paper under our U.S. dollar and Euro-denominated commercial paper programs (“Commercial Paper Programs”). Credit support for the Commercial Paper Programs is provided by a five -year $1.5 billion senior unsecured revolving credit facility that expires on June 16, 2021 (the “Revolving Credit Facility”) which can also be used for working capital and other general corporate purposes. As of September 28, 2018 , no borrowings were outstanding under the Revolving Credit Facility. On July 20, 2018, we prepaid $325 million of our outstanding U.S dollar variable interest rate term loan due in 2019, and on October 5, 2018, we prepaid the remaining $175 million of the outstanding balance. The prepayment penalties associated with these payments were immaterial. On August 22, 2018, we entered into a credit facility agreement that provides for a 364 -day delayed-draw term loan facility (“Delayed-Draw Term Loan”) in an aggregate principal amount of $1.75 billion . On September 5, 2018, we drew down the full $1.75 billion available under the Delayed-Draw Term Loan in order to fund, in part, the Accruent Acquisition. The Delayed-Draw Term Loan bears interest at a variable rate equal to the London inter-bank offered rate plus a ratings based margin currently at 75 basis points. As of September 28, 2018 , borrowings under this facility bore an interest rate of 2.69% per annum. The Delayed-Draw Term Loan is prepayable at our option, and we are not permitted to re-borrow once the term loan is repaid. The terms and conditions, including covenants, applicable to the Delayed-Draw Term Loan are substantially similar to those applicable to the Revolving Credit Facility. On September 26, 2018, we repaid $400 million of this loan. In connection with the debt exchange in the split-off of the A&S Business, on October 1, 2018, we retired $244.7 million of our 1.80% senior unsecured notes due in 2019. The details of our Commercial Paper Programs as of September 28, 2018 are as follows ($ in millions): Carrying value Annual effective rate Weighted average remaining maturity (in days) U.S. dollar-denominated commercial paper $ 594.6 2.38 % 11 Euro-denominated commercial paper $ 273.3 (0.10 )% 87 We classified our borrowings outstanding under the Commercial Paper Programs as long-term debt in the accompanying Consolidated Condensed Balance Sheets as we had the intent and ability, as supported by availability under the Revolving Credit Facility referenced above, to refinance these borrowings for at least one year from the balance sheet date. As of September 28, 2018 , we were in compliance with all of our covenants. Capital On June 29, 2018, we issued 1,380,000 shares of 5.0% Mandatory Convertible Preferred Stock, Series A (“MCPS”) with a par value of $0.01 per share and liquidation preference of $1,000 per share, which included the exercise of an over-allotment option in full to purchase 180,000 shares. We received net $1.34 billion in proceeds from the issuance of the MCPS, excluding $43 million of issuance costs. We used the net proceeds from the issuance of MCPS to fund our acquisition activities and for general corporate purposes, including repayment of debt, working capital and capital expenditures. In connection with the split-off of the A&S Business, on September 26, 2018, we triggered an anti-dilution adjustment pursuant to the terms of the MCPS and after giving affect to this adjustment, each then o utstanding share of MCPS will convert automatically on July 1, 2021 (“Mandatory Conversion Date”) into between 10.9041 and 13.3575 common shares, subject to further anti-dilution adjustments. The number of shares of our common stock issuable on conversion will be determined based on the average volume weighted average price per share of our common stock over the 20 consecutive trading day period beginning on the 22nd scheduled trading day preceding the Mandatory Conversion Date. At any time prior to July 1, 2021, holders may elect to convert each share of the MCPS into shares of common stock at the rate of 10.9041 , subject to further anti-dilution adjustments. In the event of a fundamental change, the MCPS will convert at the fundamental change rates specified in the certificate of designations, as adjusted, and the holders of MCPS would be entitled to a fundamental change make-whole dividend. We may pay declared dividends in cash or, subject to certain limitations, in shares of our common stock, or in any combination of cash and shares of our common stock in January, April, July and October of each year, commencing on October 1, 2018 and ending on July 1, 2021. Dividends that are declared will be payable on the dividend payment dates to holders of record on the immediately preceding March 15, June 15, September 15 and December 15 (each a “record date”), whether or not such holders convert their shares, or such shares are automatically converted, after the corresponding record date. Dividends on our MCPS are payable on a cumulative basis when, as and if declared by our Board, at an annual rate of 5.0% of the liquidation preference of $1,000 per share (equivalent to $50.00 annually per share). On August 2, 2018, we declared a dividend on the MCPS of $12.78 |
Sales
Sales | 9 Months Ended |
Sep. 28, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Sales | NOTE 6. SALES On January 1, 2018, we adopted ASU 2014-09 Revenue from Contracts with Customers (“Topic 606”) using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting policy under ASC Topic 605 Revenue Recognition . We recorded an immaterial transition adjustment to opening retained earnings as of January 1, 2018 due to the cumulative impact of adopting Topic 606. The impact to sales as a result of applying Topic 606 was immaterial for the three and nine months ended September 28, 2018 . Our significant accounting policies are detailed in Note 2 of our 2017 Annual Report on Form 10-K . Significant changes to our accounting policies as a result of adopting Topic 606 are discussed below and have been applied prospectively from the adoption date of January 1, 2018: Revenue Recognition —We derive revenues primarily from the sale of Professional Instrumentation and Industrial Technologies products and services. Revenue is recognized when control of promised products or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. For revenue related to a product or service to qualify for recognition, we must have an enforceable contract with a customer that defines the goods or services to be transferred and the payment terms related to those goods or services. Further, collection of substantially all consideration for the goods or services transferred must be probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a combination of financial and qualitative factors, including the customers’ financial condition, collateral, debt-servicing ability, past payment experience and credit bureau information. Customer allowances and rebates, consisting primarily of volume discounts and other short-term incentive programs, are considered in determining the transaction price for the contract; these allowances and rebates are reflected as a reduction in the contract transaction price. Significant judgment is exercised in determining product returns, customer allowances and rebates, and are estimated based on historical experience and known trends. Most of our sales contracts contain standard terms and conditions. We evaluate contracts to identify distinct goods and services promised in the contract (performance obligations). Sometimes this evaluation involves judgment to determine whether the goods or services are highly dependent on or highly interrelated with one another, or whether such goods or services significantly modify or customize one another. Certain customer arrangements include multiple performance obligations, typically hardware, installation, training, consulting, services and/or post contract support (“PCS”). Generally, these elements are delivered within the same reporting period, except PCS or other services. We allocate the contract transaction price to each performance obligation using the observable price that the good or service sells for separately in similar circumstances and to similar customers, and/or a residual approach when the observable selling price of a good or service is not known and is either highly variable or uncertain. Allocating the transaction price to each performance obligation sometimes requires significant judgment. Our principal terms of sale are FOB Shipping Point, or equivalent, and, as such, we primarily record revenue upon shipment as we have transferred control to the customer at that point and our performance obligations are satisfied. We evaluate contracts with delivery terms other than FOB Shipping Point and recognize revenue when we have transfered control and satisfied our performance obligations. If any significant obligation to the customer with respect to a sales transaction remains to be fulfilled following shipment (typically installation, other services noted above or acceptance by the customer), revenue recognition is deferred until such obligations have been fulfilled. Further, revenue related to separately priced extended warranty and product maintenance agreements is deferred when appropriate and recognized as revenue over the term of the agreement. Contract Assets — In certain circumstances, we record contract assets which include unbilled amounts typically resulting from sales under contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is not only subject to the passage of time. Contract assets were immaterial as of September 28, 2018 . Contract Costs — We incur direct incremental costs to obtain certain contracts, typically sales-related commissions. Deferred sales-related commissions are generally not capitalized as the amortization period is one year or less, and we elected to use the practical expedient to expense these sales commissions as incurred. Impairment losses recognized on our contract-related assets were immaterial in the three and nine months ended September 28, 2018 . Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to PCS and extended warranty sales, where in most cases we receive up-front payment and recognize revenue over the support term. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The noncurrent portion of deferred revenue is included in other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets. Our contract liabilities consisted of the following ($ in millions): September 28, 2018 December 31, 2017 Deferred revenue - current $ 241.6 $ 213.4 Deferred revenue - noncurrent 91.7 86.9 Total contract liabilities $ 333.3 $ 300.3 In the three and nine months ended September 28, 2018 , we recognized $20 million and $84 million of revenue related to our contract liabilities at January 1, 2018 , respectively. The change in our contract liabilities from December 31, 2017 to September 28, 2018 was primarily due to the timing of cash receipts and sales of PCS and extended warranty services. Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, noncancelable orders, with expected delivery dates to customers greater than one year from September 28, 2018 , for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below. The aggregate performance obligations attributable to each of our segments is as follows ($ in millions): September 28, 2018 Professional Instrumentation $ 123.6 Industrial Technologies 440.6 Total remaining performance obligations $ 564.2 The majority of remaining performance obligations are related to service and support contracts, which we expect to fulfill approximately 40 percent within the next two years, approximately 75 percent within the next three years and substantially all within four years . Disaggregation of Revenue We disaggregate revenue from contracts with customers by geographic location, major product group and end market for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Disaggregation of revenue for the three months ended September 28, 2018 is presented as follows ($ in millions): Total Professional Instrumentation Industrial Technologies Geographic: United States $ 1,044.5 $ 479.8 $ 564.7 China 142.1 90.1 52.0 Germany 85.0 34.5 50.5 All other (each country individually less than 5% of total sales) 568.5 289.7 278.8 Total $ 1,840.1 $ 894.1 $ 946.0 Major Products Group: Professional tools and equipment $ 1,243.0 $ 729.3 $ 513.7 Industrial automation, controls and sensors 318.1 99.7 218.4 Franchise distribution 160.9 — 160.9 All other 118.1 65.1 53.0 Total $ 1,840.1 $ 894.1 $ 946.0 End markets: Direct sales: Retail fueling (a) $ 446.9 $ — $ 446.9 Industrial & Manufacturing 171.7 91.6 80.1 Vehicle repair (a) 146.4 — 146.4 Utilities & Power 32.0 31.2 0.8 Other 553.8 356.4 197.4 Total direct sales 1,350.8 479.2 871.6 Distributors (a) 489.3 414.9 74.4 Total $ 1,840.1 $ 894.1 $ 946.0 (a) Retail fueling and vehicle repair include sales to these end markets made through third-party distributors. Total distributor sales for the three months ended September 28, 2018 was $837 million. Disaggregation of revenue for the three months ended September 29, 2017 is presented as follows ($ in millions): Total Professional Instrumentation Industrial Technologies Geographic: United States $ 935.0 $ 384.8 $ 550.2 China 130.9 84.7 46.2 Germany 80.5 34.0 46.5 All other (each country individually less than 5% of total sales) 538.9 283.3 255.6 Total $ 1,685.3 $ 786.8 $ 898.5 Major Products Group: Professional tools and equipment $ 1,105.4 $ 617.3 $ 488.1 Industrial automation, controls and sensors 303.5 99.6 203.9 Franchise distribution 155.3 — 155.3 All other 121.1 69.9 51.2 Total $ 1,685.3 $ 786.8 $ 898.5 End markets: Direct sales: Retail fueling (a) $ 431.9 $ — $ 431.9 Industrial & Manufacturing 144.1 68.0 76.1 Vehicle repair (a) 140.3 — 140.3 Utilities & Power 55.1 54.4 0.7 Other 488.2 304.8 183.4 Total direct sales 1,259.6 427.2 832.4 Distributors (a) 425.7 359.6 66.1 Total $ 1,685.3 $ 786.8 $ 898.5 (a) Retail fueling and vehicle repair include sales to these end markets made through third-party distributors. Total distributor sales for the three months ended September 29, 2017 was $783.4 million. Disaggregation of revenue for the nine months ended September 28, 2018 is presented as follows ($ in millions): Total Professional Instrumentation Industrial Technologies Geographic: United States $ 2,954.9 $ 1,324.1 $ 1,630.8 China 460.2 299.4 160.8 Germany 255.8 102.4 153.4 All other (each country individually less than 5% of total sales) 1,765.9 928.9 837.0 Total $ 5,436.8 $ 2,654.8 $ 2,782.0 Major Products Group: Professional tools and equipment $ 3,609.0 $ 2,155.6 $ 1,453.4 Industrial automation, controls and sensors 979.4 309.1 670.3 Franchise distribution 486.0 — 486.0 All other 362.4 190.1 172.3 Total $ 5,436.8 $ 2,654.8 $ 2,782.0 End markets: Direct sales: Retail fueling (a) $ 1,256.1 $ — $ 1,256.1 Industrial & Manufacturing 503.2 279.2 224.0 Vehicle repair (a) 442.9 — 442.9 Utilities & Power 134.6 132.6 2.0 Other 1,613.7 989.4 624.3 Total direct sales 3,950.5 1,401.2 2,549.3 Distributors (a) 1,486.3 1,253.6 232.7 Total $ 5,436.8 $ 2,654.8 $ 2,782.0 (a) Retail fueling and vehicle repair include sales to these end markets made through third-party distributors. Total distributor sales for the nine months ended September 28, 2018 was $2,484.2 million. Disaggregation of revenue for the nine months ended September 29, 2017 is presented as follows ($ in millions): Total Professional Instrumentation Industrial Technologies Geographic: United States $ 2,670.7 $ 1,068.9 $ 1,601.8 China 395.0 267.1 127.9 Germany 221.8 90.2 131.6 All other (each country individually less than 5% of total sales) 1,561.8 835.7 726.1 Total $ 4,849.3 $ 2,261.9 $ 2,587.4 Major Products Group: Professional tools and equipment $ 3,122.0 $ 1,769.2 $ 1,352.8 Industrial automation, controls and sensors 899.8 294.2 605.6 Franchise distribution 476.5 — 476.5 All other 351.0 198.5 152.5 Total $ 4,849.3 $ 2,261.9 $ 2,587.4 End markets: Direct sales: Retail fueling (a) $ 1,179.9 $ — $ 1,179.9 Industrial & Manufacturing 357.6 190.6 167.0 Vehicle repair (a) 433.8 — 433.8 Utilities & Power 152.3 149.3 3.0 Other 1,447.4 854.7 592.7 Total direct sales 3,571.0 1,194.6 2,376.4 Distributors (a) 1,278.3 1,067.3 211.0 Total $ 4,849.3 $ 2,261.9 $ 2,587.4 (a) Retail fueling and vehicle repair include sales to these end markets made through third-party distributors. Total distributor sales for the nine months ended September 29, 2017 was $2,319.2 million. |
Pension Plans
Pension Plans | 9 Months Ended |
Sep. 28, 2018 | |
Retirement Benefits [Abstract] | |
Pension Plans | NOTE 7. PENSION PLANS For a full description of our noncontributory defined benefit pension plans, including the U.S. plan acquired in 2017, refer to Note 10 of our 2017 Annual Report on Form 10-K . The following sets forth the components of our net periodic pension costs associated with our noncontributory defined benefit pension plans ($ in millions): Three Months Ended Nine Months Ended September 28, 2018 September 29, 2017 September 28, 2018 September 29, 2017 U.S. Pension Benefits: Interest cost $ 0.3 $ — $ 0.9 $ — Expected return on plan assets (0.4 ) — (1.1 ) — Net periodic pension cost $ (0.1 ) $ — $ (0.2 ) $ — Non-U.S. Pension Benefits: Service cost $ 0.5 $ 1.1 $ 1.4 $ 3.1 Interest cost 1.4 1.5 4.4 4.4 Expected return on plan assets (1.8 ) (1.9 ) (5.5 ) (5.5 ) Amortization of net loss 0.9 1.2 2.7 3.4 Net curtailment and settlement loss recognized 0.3 — 0.9 — Net periodic pension cost $ 1.3 $ 1.9 $ 3.9 $ 5.4 On January 1, 2018, we retrospectively adopted ASU No. 2017-07, Compensation–Retirement Benefits (Topic 715). Accordingly, we have included all components of net periodic pension costs, with the exception of service costs, in other non-operating expenses as a component of non-operating income in the accompanying Consolidated Condensed Statements of Earnings. Service costs continue to be included in cost of sales and selling, general and administrative expenses in the accompanying Consolidated Condensed Statements of Earnings according to the classification of the participant’s compensation. This reclassification of prior year pension cost increased operating income by $0.8 million and $2.3 million for the three and nine months ended September 29, 2017 , respectively. Employer Contributions During 2018 , our cash contribution requirements for our non-U.S. defined benefit pension plans are expected to be approximately $10 million . We do not expect to make contributions to the U.S. plan during 2018 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 8. INCOME TAXES Our effective tax rates for the three and nine months ended September 28, 2018 were 17.2% and 17.0% , respectively, as compared to 23.1% and 25.2% for the three and nine months ended September 29, 2017 , respectively. The decrease for both the three and nine month periods is due primarily to favorable impacts in 2018 resulting from a lower statutory tax rate in the United States and foreign-derived intangible income tax benefits, partially offset by the loss of the United States domestic production activities deduction, all of which are a result of the Tax Cuts and Jobs Act (“TCJA”), and other federal and international tax benefits. Our effective tax rates for 2018 and 2017 differ from the U.S. federal statutory rate of 21% and 35% , respectively, due primarily to our earnings outside the United States that are indefinitely reinvested and taxed at rates lower than the U.S. federal statutory rate, the impact of credits and deductions provided by law and the effect of adjustments to the provisional estimates recorded in 2017 related to the TCJA as permitted under SEC Staff Accounting Bulletin No. 118 (“SAB 118”). We recorded a net adjustment of $1.2 million to our provisional estimates during the three months ended September 28, 2018 , which increased tax expense and increased our effective tax rate by 40 basis points, and was attributable to a $3.2 million increase in tax expense related to the revaluation of certain deferred tax assets and liabilities and a $2.0 million decrease in tax expense related to transition taxes, specifically from a decrease in foreign remittance taxes. We recorded a net adjustment of $4.9 million to our provisional estimates during the nine months ended September 28, 2018 , which decreased tax expense and decreased our effective tax rate by 50 basis points, and was related to a $11.9 million decrease in tax expense related to the revaluation of certain deferred tax assets and liabilities, a $3.9 million decrease in tax expense related to transition taxes, specifically from decrease in foreign remittance taxes and an offsetting $10.9 million increase in tax expense from a reduction of foreign tax credits. We will continue to evaluate the effects of the TCJA on the 2017 provisional estimates through the end of the SAB 118 allowable measurement period. Refer to Note 11 of our 2017 Annual Report on Form 10-K for further details including disclosures pursuant to SAB 118 interpretive guidance, and provisional estimates for all TCJA effects. On January 1, 2018, we adopted ASU No. 2016-16, Income Taxes (Topic 715): Intra-entity Transfers of Assets Other Than Inventory using the modified retrospective method , |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 28, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | NOTE 9. STOCK-BASED COMPENSATION Our stock-based compensation program (the “Stock Plan”) provides for the grant of stock appreciation rights, performance stock units, restricted stock units, restricted stock awards and performance stock awards (collectively, “Stock Awards”), stock options or any other stock-based award. As of September 28, 2018 , approximately 22 million shares of our common stock were available for subsequent issuance under the Stock Plan. For a full description of our stock-based compensation program refer to Note 15 of our 2017 Annual Report on Form 10-K . Stock-based Compensation Expense Stock-based compensation has been recognized as a component of selling, general & administrative expenses in the accompanying Consolidated Condensed Statements of Earnings based on the portion of the awards that are ultimately expected to vest. The following summarizes the components of our stock-based compensation expense under the Stock Plan ($ in millions): Three Months Ended Nine Months Ended September 28, 2018 September 29, 2017 September 28, 2018 September 29, 2017 Stock Awards: Pretax compensation expense $ 8.5 $ 7.2 $ 24.1 $ 22.6 Income tax benefit (1.8 ) (2.4 ) (5.1 ) (8.0 ) Stock Award expense, net of income taxes 6.7 4.8 19.0 14.6 Stock options: Pretax compensation expense 5.5 4.7 16.4 14.6 Income tax benefit (1.2 ) (1.6 ) (3.5 ) (5.0 ) Stock option expense, net of income taxes 4.3 3.1 12.9 9.6 Total stock-based compensation: Pretax compensation expense 14.0 11.9 40.5 37.2 Income tax benefit (3.0 ) (4.0 ) (8.6 ) (13.0 ) Total stock-based compensation expense, net of income taxes $ 11.0 $ 7.9 $ 31.9 $ 24.2 The following summarizes the unrecognized compensation cost for the Stock Plan awards as of September 28, 2018 . This compensation cost is expected to be recognized over a weighted average period of approximately two years , representing the remaining service period related to the awards. Future compensation amounts will be adjusted for any changes in estimated forfeitures ($ in millions): Stock Awards $ 52.8 Stock options 51.7 Total unrecognized compensation cost $ 104.5 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10. COMMITMENTS AND CONTINGENCIES For a description of our litigation and contingencies, refer to Notes 13 and 14 of our 2017 Annual Report on Form 10-K . Our operating leases extend for varying periods of time up to twenty years and, in some cases, contain renewal options that would extend existing terms beyond twenty years. Minimum rental payments for all operating leases having initial or remaining noncancelable lease terms in excess of one year for 2018 through 2022 and thereafter are: $48 million in 2018, $42 million in 2019, $31 million in 2020, $20 million in 2021, $16 million in 2022 and $20 million thereafter. We generally accrue estimated warranty costs at the time of sale. In general, manufactured products are warranted against defects in material and workmanship when properly used for their intended purpose, installed correctly, and appropriately maintained. Warranty period terms depend on the nature of the product and range from 90 days up to the life of the product. The amount of the accrued warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor, and in certain instances estimated property damage. The accrued warranty liability is reviewed on a quarterly basis and may be adjusted as additional information regarding expected warranty costs becomes known. The following is a rollforward of our accrued warranty liability ($ in millions): Balance, December 31, 2017 $ 69.4 Accruals for warranties issued during the period 56.8 Settlements made (58.7 ) Additions due to acquisitions 0.2 Effect of foreign currency translation (0.3 ) Balance, September 28, 2018 $ 67.4 |
Net Earnings Per Share
Net Earnings Per Share | 9 Months Ended |
Sep. 28, 2018 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | NOTE 11. NET EARNINGS PER SHARE Basic net earnings per share (“EPS”) is calculated by dividing net earnings attributable to common stockholders by the weighted average number of shares of common stock outstanding for the applicable period. Diluted EPS is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of shares under stock-based compensation plans under the treasury stock method, except where the inclusion of such shares would have an anti-dilutive impact. There were no anti-dilutive options to purchase shares excluded from the diluted EPS calculation for the three months ended September 28, 2018 and there were 0.1 million anti-dilutive options excluded from the diluted EPS calculation for the nine months ended September 28, 2018 . The anti-dilutive options to purchase shares excluded from the diluted EPS calculation were immaterial for the three and nine months ended September 29, 2017 . The impact of our MCPS calculated under the if-converted method were anti-dilutive, and as such 16.1 million and 5.4 million shares were excluded from the dilutive EPS calculation for the three and nine months ended September 28, 2018 . Information related to the calculation of net earnings per share of common stock is summarized as follows ($ and shares in millions, except per share amounts): Three Months Ended Nine Months Ended September 28, 2018 September 29, 2017 September 28, 2018 September 29, 2017 Numerator Net earnings $ 245.3 $ 267.8 $ 801.5 $ 707.6 Mandatory convertible preferred stock cumulative dividends (17.4 ) — (17.6 ) — Net earnings attributable to common stockholders $ 227.9 $ 267.8 $ 783.9 $ 707.6 Denominator Weighted average common shares outstanding used in basic earnings per share 349.9 347.7 349.2 347.3 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive Stock Awards 5.4 5.2 5.6 4.9 Weighted average common shares outstanding used in diluted earnings per share 355.3 352.9 354.8 352.2 Net earnings per common share - Basic $ 0.65 $ 0.77 $ 2.24 $ 2.04 Net earnings per share - Diluted $ 0.64 $ 0.76 $ 2.21 $ 2.01 We declared and paid cash dividends per common share during the periods presented as follows: Dividend Per Common Share Amount ($ in millions) 2018: First quarter $ 0.07 $ 24.3 Second quarter 0.07 24.4 Third quarter 0.07 24.5 Total $ 0.21 $ 73.2 2017: First quarter $ 0.07 $ 24.3 Second quarter 0.07 24.3 Third quarter 0.07 24.3 Total $ 0.21 $ 72.8 * The sum of the components of total dividends paid may not equal the total amount due to rounding. On August 2, 2018, we declared an initial quarterly cash dividend of $12.78 per share on our MCPS which was paid on September 28, 2018 , to stockholders of record on September 15, 2018. The aggregate amount of such cash dividend was $17.6 million |
Segment Information
Segment Information | 9 Months Ended |
Sep. 28, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 12. SEGMENT INFORMATION We report our results in two separate business segments consisting of Professional Instrumentation and Industrial Technologies. When determining the reportable segments, we aggregated operating segments based on their similar economic and operating characteristics. Operating profit amounts in the Other category consist of unallocated corporate costs and other costs not considered part of our evaluation of reportable segment operating performance. Our segment results are as follows ($ in millions): Three Months Ended Nine Months Ended September 28, 2018 September 29, 2017 September 28, 2018 September 29, 2017 Sales: Professional Instrumentation $ 894.1 $ 786.8 $ 2,654.8 $ 2,261.9 Industrial Technologies 946.0 898.5 2,782.0 2,587.4 Total $ 1,840.1 $ 1,685.3 $ 5,436.8 $ 4,849.3 Operating Profit: Professional Instrumentation $ 180.0 $ 179.2 $ 605.8 $ 523.2 Industrial Technologies 199.7 196.4 558.9 530.9 Other (58.3 ) (18.9 ) (122.6 ) (52.7 ) Total Operating Profit 321.4 356.7 1,042.1 1,001.4 Gain from acquisition — 15.3 — 15.3 Interest expense (24.4 ) (22.9 ) (74.3 ) (68.2 ) Other non-operating expenses (0.8 ) (0.8 ) (2.6 ) (2.3 ) Earnings before income taxes $ 296.2 $ 348.3 $ 965.2 $ 946.2 As of September 28, 2018 , the material changes in total assets by segment since December 31, 2017 were due primarily to the acquisitions discussed in Note 2 and the capital issuance discussed in Note 5. Our segment identifiable assets are as follows ($ in millions): September 28, 2018 December 31, 2017 Professional Instrumentation $ 8,634.0 $ 5,588.1 Industrial Technologies 3,876.3 3,773.7 Other 1,352.5 1,138.8 Total $ 13,862.8 $ 10,500.6 |
Business Overview (Policies)
Business Overview (Policies) | 9 Months Ended |
Sep. 28, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Standards | Recently Issued Accounting Standards —In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amends the impairment model by requiring entities to use a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. This standard is effective for us beginning January 1, 2020, with early adoption permitted. We are currently evaluating the impact of this standard on our financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which will require, among other items, lessees to recognize a right-of-use asset and a lease liability for most leases. The standard also requires lessees and lessors to disclose the amount, timing and uncertainty of cash flows arising from leases. The accounting applied by a lessor is largely unchanged from the current standard. In September 2017, the FASB issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842) , which provided additional implementation guidance on the previously issued ASU. This standard is effective for us beginning January 1, 2019 (with early adoption permitted), and it also provides for certain practical expedients that we plan to elect. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), Targeted Improvements, |
Revenue Recognition, Contracts With Customers, and Performance Obligations | Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, noncancelable orders, with expected delivery dates to customers greater than one year from September 28, 2018 —We derive revenues primarily from the sale of Professional Instrumentation and Industrial Technologies products and services. Revenue is recognized when control of promised products or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. For revenue related to a product or service to qualify for recognition, we must have an enforceable contract with a customer that defines the goods or services to be transferred and the payment terms related to those goods or services. Further, collection of substantially all consideration for the goods or services transferred must be probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a combination of financial and qualitative factors, including the customers’ financial condition, collateral, debt-servicing ability, past payment experience and credit bureau information. Customer allowances and rebates, consisting primarily of volume discounts and other short-term incentive programs, are considered in determining the transaction price for the contract; these allowances and rebates are reflected as a reduction in the contract transaction price. Significant judgment is exercised in determining product returns, customer allowances and rebates, and are estimated based on historical experience and known trends. Most of our sales contracts contain standard terms and conditions. We evaluate contracts to identify distinct goods and services promised in the contract (performance obligations). Sometimes this evaluation involves judgment to determine whether the goods or services are highly dependent on or highly interrelated with one another, or whether such goods or services significantly modify or customize one another. Certain customer arrangements include multiple performance obligations, typically hardware, installation, training, consulting, services and/or post contract support (“PCS”). Generally, these elements are delivered within the same reporting period, except PCS or other services. We allocate the contract transaction price to each performance obligation using the observable price that the good or service sells for separately in similar circumstances and to similar customers, and/or a residual approach when the observable selling price of a good or service is not known and is either highly variable or uncertain. Allocating the transaction price to each performance obligation sometimes requires significant judgment. Our principal terms of sale are FOB Shipping Point, or equivalent, and, as such, we primarily record revenue upon shipment as we have transferred control to the customer at that point and our performance obligations are satisfied. We evaluate contracts with delivery terms other than FOB Shipping Point and recognize revenue when we have transfered control and satisfied our performance obligations. If any significant obligation to the customer with respect to a sales transaction remains to be fulfilled following shipment (typically installation, other services noted above or acceptance by the customer), revenue recognition is deferred until such obligations have been fulfilled. Further, revenue related to separately priced extended warranty and product maintenance agreements is deferred when appropriate and recognized as revenue over the term of the agreement. Contract Assets — In certain circumstances, we record contract assets which include unbilled amounts typically resulting from sales under contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is not only subject to the passage of time. Contract assets were immaterial as of September 28, 2018 . Contract Costs — We incur direct incremental costs to obtain certain contracts, typically sales-related commissions. Deferred sales-related commissions are generally not capitalized as the amortization period is one year or less, and we elected to use the practical expedient to expense these sales commissions as incurred. Impairment losses recognized on our contract-related assets were immaterial in the three and nine months ended September 28, 2018 . Contract Liabilities |
Business Overview (Tables)
Business Overview (Tables) | 9 Months Ended |
Sep. 28, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassification of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) —Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. The changes in accumulated other comprehensive income (loss) by component are summarized below ($ in millions): Foreign currency translation adjustments Pension adjustments Total For the Three Months Ended September 28, 2018: Balance, June 29, 2018 $ 0.6 $ (70.2 ) $ (69.6 ) Other comprehensive income (loss) before reclassifications, net of income taxes (23.9 ) — (23.9 ) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 0.9 (a) 0.9 Income tax impact — (0.2 ) (0.2 ) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.7 0.7 Net current period other comprehensive income (loss), net of income taxes (23.9 ) 0.7 (23.2 ) Balance, September 28, 2018 $ (23.3 ) $ (69.5 ) $ (92.8 ) (a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 7 for additional details). Foreign currency translation adjustments Pension Total For the Three Months Ended September 29, 2017: Balance, June 30, 2017 $ 16.2 $ (71.5 ) $ (55.3 ) Other comprehensive income (loss) before reclassifications, net of income taxes 38.1 — 38.1 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 1.2 (a) 1.2 Income tax impact — (0.3 ) (0.3 ) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.9 0.9 Net current period other comprehensive income (loss), net of income taxes 38.1 0.9 39.0 Balance, September 29, 2017 $ 54.3 $ (70.6 ) $ (16.3 ) For the Nine Months Ended September 28, 2018: Balance, December 31, 2017 $ 64.0 $ (71.6 ) $ (7.6 ) Other comprehensive income (loss) before reclassifications, net of income taxes (87.3 ) — (87.3 ) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 2.7 (a) 2.7 Income tax impact — (0.6 ) (0.6 ) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 2.1 2.1 Net current period other comprehensive income (loss) (87.3 ) 2.1 (85.2 ) Balance, September 28, 2018 $ (23.3 ) $ (69.5 ) $ (92.8 ) For the Nine Months Ended September 29, 2017: Balance, December 31, 2016 $ (72.6 ) $ (73.2 ) $ (145.8 ) Other comprehensive income (loss) before reclassifications, net of income taxes 126.9 — 126.9 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 3.4 (a) 3.4 Income tax impact — (0.8 ) (0.8 ) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 2.6 2.6 Net current period other comprehensive income (loss) 126.9 2.6 129.5 Balance, September 29, 2017 $ 54.3 $ (70.6 ) $ (16.3 ) (a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 7 for additional details). |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 9 Months Ended |
Sep. 28, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following summarizes the provisional fair value estimates of the assets acquired and liabilities assumed at the date of acquisition for all acquisitions closed during the nine months ended September 28, 2018 ($ in millions): Accruent Gordian Other Total Accounts receivable $ 52.8 $ 30.0 $ — $ 82.8 Property, plant and equipment 4.1 3.0 — 7.1 Goodwill 1,217.5 442.5 1.8 1,661.8 Other intangible assets, primarily customer relationships, trade names and technology 926.5 376.5 6.8 1,309.8 Trade accounts payable (8.7 ) (1.0 ) — (9.7 ) Other assets and liabilities, net (199.3 ) (72.8 ) (0.9 ) (273.0 ) Net cash consideration $ 1,992.9 $ 778.2 $ 7.7 $ 2,778.8 |
Business Acquisition, Pro Forma Information | The unaudited pro forma information for the periods set forth below gives effect to the 2018 and 2017 acquisitions as if they had occurred as of January 1, 2017. The pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been achieved had the acquisitions been consummated as of that time ($ in millions except per share amounts): Three Months Ended Nine Months Ended September 28, 2018 September 29, 2017 September 28, 2018 September 29, 2017 Sales $ 1,895.5 $ 1,854.0 $ 5,691.4 $ 5,396.4 Net earnings $ 228.0 $ 211.9 $ 730.0 $ 584.1 Diluted net earnings per share $ 0.64 $ 0.60 $ 2.07 $ 1.66 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 28, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following is a rollforward of our goodwill ($ in millions): Balance, December 31, 2017 $ 5,098.5 Attributable to 2018 acquisitions 1,661.8 Foreign currency translation & other (17.0 ) Balance, September 28, 2018 $ 6,743.3 The carrying value of goodwill by segment is summarized as follows ($ in millions): September 28, 2018 December 31, 2017 Professional Instrumentation $ 4,992.3 $ 3,331.0 Industrial Technologies 1,751.0 1,767.5 Total goodwill $ 6,743.3 $ 5,098.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 28, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis | Below is a summary of financial liabilities that are measured at fair value on a recurring basis ($ in millions): Quoted Prices in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total September 28, 2018 Deferred compensation liabilities $ — $ 24.2 $ — $ 24.2 December 31, 2017 Deferred compensation liabilities $ — $ 20.9 $ — $ 20.9 |
Carrying Amounts and Fair Values of Financial Instruments | The carrying amount and fair value of financial instruments are as follows ($ in millions): September 28, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Current portion of long-term debt $ 1,824.5 $ 1,822.4 $ — $ — Long-term debt, net of current maturities $ 3,178.0 $ 3,075.1 $ 4,056.2 $ 4,051.8 |
Financing and Capital (Tables)
Financing and Capital (Tables) | 9 Months Ended |
Sep. 28, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The details of our Commercial Paper Programs as of September 28, 2018 are as follows ($ in millions): Carrying value Annual effective rate Weighted average remaining maturity (in days) U.S. dollar-denominated commercial paper $ 594.6 2.38 % 11 Euro-denominated commercial paper $ 273.3 (0.10 )% 87 September 28, 2018 December 31, 2017 U.S. dollar-denominated commercial paper $ 594.6 $ 665.1 Euro-denominated commercial paper 273.3 282.7 U.S. dollar variable interest rate term loan due 2019 175.0 500.0 Delayed-draw term loan due 2019 1,350.0 — Yen variable interest rate term loan due 2022 121.3 122.4 1.80% senior unsecured notes due 2019 299.5 298.9 2.35% senior unsecured notes due 2021 746.7 745.9 3.15% senior unsecured notes due 2026 891.8 891.0 4.30% senior unsecured notes due 2046 546.9 546.8 Other 3.4 3.4 Long-term debt 5,002.5 4,056.2 Less: current portion of long-term debt 1,824.5 — Long-term debt, net of current maturities $ 3,178.0 $ 4,056.2 |
Sales (Tables)
Sales (Tables) | 9 Months Ended |
Sep. 28, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Contract liabilities | Our contract liabilities consisted of the following ($ in millions): September 28, 2018 December 31, 2017 Deferred revenue - current $ 241.6 $ 213.4 Deferred revenue - noncurrent 91.7 86.9 Total contract liabilities $ 333.3 $ 300.3 |
Remaining performance obligations | The aggregate performance obligations attributable to each of our segments is as follows ($ in millions): September 28, 2018 Professional Instrumentation $ 123.6 Industrial Technologies 440.6 Total remaining performance obligations $ 564.2 |
Disaggregation of revenue | Disaggregation of revenue for the nine months ended September 28, 2018 is presented as follows ($ in millions): Total Professional Instrumentation Industrial Technologies Geographic: United States $ 2,954.9 $ 1,324.1 $ 1,630.8 China 460.2 299.4 160.8 Germany 255.8 102.4 153.4 All other (each country individually less than 5% of total sales) 1,765.9 928.9 837.0 Total $ 5,436.8 $ 2,654.8 $ 2,782.0 Major Products Group: Professional tools and equipment $ 3,609.0 $ 2,155.6 $ 1,453.4 Industrial automation, controls and sensors 979.4 309.1 670.3 Franchise distribution 486.0 — 486.0 All other 362.4 190.1 172.3 Total $ 5,436.8 $ 2,654.8 $ 2,782.0 End markets: Direct sales: Retail fueling (a) $ 1,256.1 $ — $ 1,256.1 Industrial & Manufacturing 503.2 279.2 224.0 Vehicle repair (a) 442.9 — 442.9 Utilities & Power 134.6 132.6 2.0 Other 1,613.7 989.4 624.3 Total direct sales 3,950.5 1,401.2 2,549.3 Distributors (a) 1,486.3 1,253.6 232.7 Total $ 5,436.8 $ 2,654.8 $ 2,782.0 (a) Retail fueling and vehicle repair include sales to these end markets made through third-party distributors. Total distributor sales for the nine months ended September 28, 2018 was $2,484.2 million. nine months ended September 29, 2017 is presented as follows ($ in millions): Total Professional Instrumentation Industrial Technologies Geographic: United States $ 2,670.7 $ 1,068.9 $ 1,601.8 China 395.0 267.1 127.9 Germany 221.8 90.2 131.6 All other (each country individually less than 5% of total sales) 1,561.8 835.7 726.1 Total $ 4,849.3 $ 2,261.9 $ 2,587.4 Major Products Group: Professional tools and equipment $ 3,122.0 $ 1,769.2 $ 1,352.8 Industrial automation, controls and sensors 899.8 294.2 605.6 Franchise distribution 476.5 — 476.5 All other 351.0 198.5 152.5 Total $ 4,849.3 $ 2,261.9 $ 2,587.4 End markets: Direct sales: Retail fueling (a) $ 1,179.9 $ — $ 1,179.9 Industrial & Manufacturing 357.6 190.6 167.0 Vehicle repair (a) 433.8 — 433.8 Utilities & Power 152.3 149.3 3.0 Other 1,447.4 854.7 592.7 Total direct sales 3,571.0 1,194.6 2,376.4 Distributors (a) 1,278.3 1,067.3 211.0 Total $ 4,849.3 $ 2,261.9 $ 2,587.4 (a) Retail fueling and vehicle repair include sales to these end markets made through third-party distributors. Total distributor sales for the nine months ended September 29, 2017 was $2,319.2 million. September 29, 2017 is presented as follows ($ in millions): Total Professional Instrumentation Industrial Technologies Geographic: United States $ 935.0 $ 384.8 $ 550.2 China 130.9 84.7 46.2 Germany 80.5 34.0 46.5 All other (each country individually less than 5% of total sales) 538.9 283.3 255.6 Total $ 1,685.3 $ 786.8 $ 898.5 Major Products Group: Professional tools and equipment $ 1,105.4 $ 617.3 $ 488.1 Industrial automation, controls and sensors 303.5 99.6 203.9 Franchise distribution 155.3 — 155.3 All other 121.1 69.9 51.2 Total $ 1,685.3 $ 786.8 $ 898.5 End markets: Direct sales: Retail fueling (a) $ 431.9 $ — $ 431.9 Industrial & Manufacturing 144.1 68.0 76.1 Vehicle repair (a) 140.3 — 140.3 Utilities & Power 55.1 54.4 0.7 Other 488.2 304.8 183.4 Total direct sales 1,259.6 427.2 832.4 Distributors (a) 425.7 359.6 66.1 Total $ 1,685.3 $ 786.8 $ 898.5 (a) Retail fueling and vehicle repair include sales to these end markets made through third-party distributors. Total distributor sales for the three months ended September 29, 2017 was $783.4 million. September 28, 2018 is presented as follows ($ in millions): Total Professional Instrumentation Industrial Technologies Geographic: United States $ 1,044.5 $ 479.8 $ 564.7 China 142.1 90.1 52.0 Germany 85.0 34.5 50.5 All other (each country individually less than 5% of total sales) 568.5 289.7 278.8 Total $ 1,840.1 $ 894.1 $ 946.0 Major Products Group: Professional tools and equipment $ 1,243.0 $ 729.3 $ 513.7 Industrial automation, controls and sensors 318.1 99.7 218.4 Franchise distribution 160.9 — 160.9 All other 118.1 65.1 53.0 Total $ 1,840.1 $ 894.1 $ 946.0 End markets: Direct sales: Retail fueling (a) $ 446.9 $ — $ 446.9 Industrial & Manufacturing 171.7 91.6 80.1 Vehicle repair (a) 146.4 — 146.4 Utilities & Power 32.0 31.2 0.8 Other 553.8 356.4 197.4 Total direct sales 1,350.8 479.2 871.6 Distributors (a) 489.3 414.9 74.4 Total $ 1,840.1 $ 894.1 $ 946.0 (a) Retail fueling and vehicle repair include sales to these end markets made through third-party distributors. Total distributor sales for the three months ended September 28, 2018 was $837 million. |
Pension Plans (Tables)
Pension Plans (Tables) | 9 Months Ended |
Sep. 28, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Pension Costs | The following sets forth the components of our net periodic pension costs associated with our noncontributory defined benefit pension plans ($ in millions): Three Months Ended Nine Months Ended September 28, 2018 September 29, 2017 September 28, 2018 September 29, 2017 U.S. Pension Benefits: Interest cost $ 0.3 $ — $ 0.9 $ — Expected return on plan assets (0.4 ) — (1.1 ) — Net periodic pension cost $ (0.1 ) $ — $ (0.2 ) $ — Non-U.S. Pension Benefits: Service cost $ 0.5 $ 1.1 $ 1.4 $ 3.1 Interest cost 1.4 1.5 4.4 4.4 Expected return on plan assets (1.8 ) (1.9 ) (5.5 ) (5.5 ) Amortization of net loss 0.9 1.2 2.7 3.4 Net curtailment and settlement loss recognized 0.3 — 0.9 — Net periodic pension cost $ 1.3 $ 1.9 $ 3.9 $ 5.4 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 28, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation Costs | The following summarizes the components of our stock-based compensation expense under the Stock Plan ($ in millions): Three Months Ended Nine Months Ended September 28, 2018 September 29, 2017 September 28, 2018 September 29, 2017 Stock Awards: Pretax compensation expense $ 8.5 $ 7.2 $ 24.1 $ 22.6 Income tax benefit (1.8 ) (2.4 ) (5.1 ) (8.0 ) Stock Award expense, net of income taxes 6.7 4.8 19.0 14.6 Stock options: Pretax compensation expense 5.5 4.7 16.4 14.6 Income tax benefit (1.2 ) (1.6 ) (3.5 ) (5.0 ) Stock option expense, net of income taxes 4.3 3.1 12.9 9.6 Total stock-based compensation: Pretax compensation expense 14.0 11.9 40.5 37.2 Income tax benefit (3.0 ) (4.0 ) (8.6 ) (13.0 ) Total stock-based compensation expense, net of income taxes $ 11.0 $ 7.9 $ 31.9 $ 24.2 |
Schedule of Future Compensation | Future compensation amounts will be adjusted for any changes in estimated forfeitures ($ in millions): Stock Awards $ 52.8 Stock options 51.7 Total unrecognized compensation cost $ 104.5 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Accrued Warranty Liability | The following is a rollforward of our accrued warranty liability ($ in millions): Balance, December 31, 2017 $ 69.4 Accruals for warranties issued during the period 56.8 Settlements made (58.7 ) Additions due to acquisitions 0.2 Effect of foreign currency translation (0.3 ) Balance, September 28, 2018 $ 67.4 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 9 Months Ended |
Sep. 28, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Information related to the calculation of net earnings per share of common stock is summarized as follows ($ and shares in millions, except per share amounts): Three Months Ended Nine Months Ended September 28, 2018 September 29, 2017 September 28, 2018 September 29, 2017 Numerator Net earnings $ 245.3 $ 267.8 $ 801.5 $ 707.6 Mandatory convertible preferred stock cumulative dividends (17.4 ) — (17.6 ) — Net earnings attributable to common stockholders $ 227.9 $ 267.8 $ 783.9 $ 707.6 Denominator Weighted average common shares outstanding used in basic earnings per share 349.9 347.7 349.2 347.3 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive Stock Awards 5.4 5.2 5.6 4.9 Weighted average common shares outstanding used in diluted earnings per share 355.3 352.9 354.8 352.2 Net earnings per common share - Basic $ 0.65 $ 0.77 $ 2.24 $ 2.04 Net earnings per share - Diluted $ 0.64 $ 0.76 $ 2.21 $ 2.01 |
Dividends Declared | We declared and paid cash dividends per common share during the periods presented as follows: Dividend Per Common Share Amount ($ in millions) 2018: First quarter $ 0.07 $ 24.3 Second quarter 0.07 24.4 Third quarter 0.07 24.5 Total $ 0.21 $ 73.2 2017: First quarter $ 0.07 $ 24.3 Second quarter 0.07 24.3 Third quarter 0.07 24.3 Total $ 0.21 $ 72.8 * The sum of the components of total dividends paid may not equal the total amount due to rounding. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 28, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Our segment identifiable assets are as follows ($ in millions): September 28, 2018 December 31, 2017 Professional Instrumentation $ 8,634.0 $ 5,588.1 Industrial Technologies 3,876.3 3,773.7 Other 1,352.5 1,138.8 Total $ 13,862.8 $ 10,500.6 Three Months Ended Nine Months Ended September 28, 2018 September 29, 2017 September 28, 2018 September 29, 2017 Sales: Professional Instrumentation $ 894.1 $ 786.8 $ 2,654.8 $ 2,261.9 Industrial Technologies 946.0 898.5 2,782.0 2,587.4 Total $ 1,840.1 $ 1,685.3 $ 5,436.8 $ 4,849.3 Operating Profit: Professional Instrumentation $ 180.0 $ 179.2 $ 605.8 $ 523.2 Industrial Technologies 199.7 196.4 558.9 530.9 Other (58.3 ) (18.9 ) (122.6 ) (52.7 ) Total Operating Profit 321.4 356.7 1,042.1 1,001.4 Gain from acquisition — 15.3 — 15.3 Interest expense (24.4 ) (22.9 ) (74.3 ) (68.2 ) Other non-operating expenses (0.8 ) (0.8 ) (2.6 ) (2.3 ) Earnings before income taxes $ 296.2 $ 348.3 $ 965.2 $ 946.2 |
Business Overview Accumulated O
Business Overview Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Equity, beginning of period | $ (7.6) | ||||
Amounts reclassified from accumulated other comprehensive income (loss): | |||||
Total other comprehensive income, net of income taxes | $ (23.2) | $ 39 | (85.2) | $ 129.5 | |
Equity, end of period | (92.8) | (92.8) | |||
Foreign currency translation adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Equity, beginning of period | 0.6 | 16.2 | 64 | (72.6) | |
Other comprehensive income (loss) before reclassifications, net of income taxes | (23.9) | 38.1 | (87.3) | 126.9 | |
Amounts reclassified from accumulated other comprehensive income (loss): | |||||
Increase (decrease) | 0 | 0 | 0 | 0 | |
Income tax impact | 0 | 0 | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0 | 0 | 0 | 0 | |
Total other comprehensive income, net of income taxes | (23.9) | 38.1 | (87.3) | 126.9 | |
Equity, end of period | (23.3) | 54.3 | (23.3) | 54.3 | |
Pension adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Equity, beginning of period | (70.2) | (71.5) | (71.6) | (73.2) | |
Other comprehensive income (loss) before reclassifications, net of income taxes | 0 | 0 | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss): | |||||
Increase (decrease) | [1] | 0.9 | 1.2 | 2.7 | 3.4 |
Income tax impact | (0.2) | (0.3) | (0.6) | (0.8) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0.7 | 0.9 | 2.1 | 2.6 | |
Total other comprehensive income, net of income taxes | 0.7 | 0.9 | 2.1 | 2.6 | |
Equity, end of period | (69.5) | (70.6) | (69.5) | (70.6) | |
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Equity, beginning of period | (69.6) | (55.3) | (7.6) | (145.8) | |
Other comprehensive income (loss) before reclassifications, net of income taxes | (23.9) | 38.1 | (87.3) | 126.9 | |
Amounts reclassified from accumulated other comprehensive income (loss): | |||||
Increase (decrease) | 0.9 | 1.2 | 2.7 | 3.4 | |
Income tax impact | (0.2) | (0.3) | (0.6) | (0.8) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0.7 | 0.9 | 2.1 | 2.6 | |
Total other comprehensive income, net of income taxes | (23.2) | 39 | (85.2) | 129.5 | |
Equity, end of period | $ (92.8) | $ (16.3) | $ (92.8) | $ (16.3) | |
[1] | This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 7 for additional details). |
Acquisitions and Divestitures C
Acquisitions and Divestitures Completed Acquisitions (Details) $ in Millions | Sep. 06, 2018USD ($)customer | Jul. 27, 2018USD ($) | Sep. 28, 2018USD ($)business | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||
Goodwill | $ 6,743.3 | $ 5,098.5 | ||
Accruent | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 1,992.9 | |||
Number of customers of acquired business | customer | 10,000 | |||
General annual revenues | 200 | |||
Goodwill | $ 1,217.5 | |||
Gordian | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 778.2 | |||
General annual revenues | $ 110 | |||
Goodwill | $ 442.5 | |||
Other | ||||
Business Acquisition [Line Items] | ||||
Purchase price | 7.7 | |||
Goodwill | $ 1.8 | |||
Number of businesses acquired | business | 1 |
Acquisitions and Divestitures P
Acquisitions and Divestitures Provisional Fair Value Estimates of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Sep. 06, 2018 | Jul. 27, 2018 | Sep. 28, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 6,743.3 | $ 5,098.5 | ||
Accruent | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 52.8 | |||
Property, plant and equipment | 4.1 | |||
Goodwill | 1,217.5 | |||
Other intangible assets, primarily customer relationships, trade names and technology | 926.5 | |||
Trade accounts payable | (8.7) | |||
Other assets and liabilities, net | (199.3) | |||
Net cash consideration | $ 1,992.9 | |||
Gordian | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 30 | |||
Property, plant and equipment | 3 | |||
Goodwill | 442.5 | |||
Other intangible assets, primarily customer relationships, trade names and technology | 376.5 | |||
Trade accounts payable | (1) | |||
Other assets and liabilities, net | (72.8) | |||
Net cash consideration | $ 778.2 | |||
Other | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | 0 | |||
Property, plant and equipment | 0 | |||
Goodwill | 1.8 | |||
Other intangible assets, primarily customer relationships, trade names and technology | 6.8 | |||
Trade accounts payable | 0 | |||
Other assets and liabilities, net | (0.9) | |||
Net cash consideration | 7.7 | |||
Total | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | 82.8 | |||
Property, plant and equipment | 7.1 | |||
Goodwill | 1,661.8 | |||
Other intangible assets, primarily customer relationships, trade names and technology | 1,309.8 | |||
Trade accounts payable | (9.7) | |||
Other assets and liabilities, net | (273) | |||
Net cash consideration | $ 2,778.8 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures Pro Forma Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |
Business Combinations [Abstract] | ||||
Sales | $ 1,895.5 | $ 1,854 | $ 5,691.4 | $ 5,396.4 |
Net earnings | $ 228 | $ 211.9 | $ 730 | $ 584.1 |
Diluted net earnings per share (in dollars per share) | $ 0.64 | $ 0.60 | $ 2.07 | $ 1.66 |
Revenue attributable to acquisitions included in results | $ 35.7 | $ 35.7 | ||
Operating profit attributable to acquisitions included in results | $ (19.1) | $ (19.1) |
Acquisitions and Divestitures T
Acquisitions and Divestitures Tritium (Details) - Tritium $ in Millions | Sep. 11, 2018USD ($)country |
Equity Securities without Readily Determinable Fair Value [Line Items] | |
Payment to acquire investment | $ | $ 50 |
Number of countries with installations | country | 26 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures Pending Acquisitions (Details) $ in Billions | Jun. 06, 2018USD ($) |
Acquisitions, ASP | |
Business Acquisition [Line Items] | |
Purchase price | $ 2.7 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures Planned Divestiture and Transaction Costs (Details) $ in Millions | Oct. 01, 2018USD ($)shares | Mar. 07, 2018company | Sep. 28, 2018USD ($) | Sep. 29, 2017USD ($) | Sep. 28, 2018USD ($)segment | Sep. 29, 2017USD ($) | Dec. 31, 2017USD ($) |
Noncash or Part Noncash Divestitures [Line Items] | |||||||
Number of operating companies | segment | 2 | ||||||
Sales | $ 1,840.1 | $ 1,685.3 | $ 5,436.8 | $ 4,849.3 | |||
Pretax transaction-related costs | $ 56 | $ 70.8 | |||||
A&S Business | |||||||
Noncash or Part Noncash Divestitures [Line Items] | |||||||
Number of operating companies | company | 4 | ||||||
Sales | $ 907 | ||||||
A&S Business | Subsequent Event | |||||||
Noncash or Part Noncash Divestitures [Line Items] | |||||||
Consideration | $ 2,700 | ||||||
Exchanges offer | $ 1,300 | ||||||
Consideration, number of shares (in shares) | shares | 15,824,931 | ||||||
Cash paid to company for direct sales of assets and liabilities | $ 1,000 | ||||||
Debt-for-debt exchange | 248.5 | ||||||
Cash paid to company as a dividend | $ 150 | ||||||
A&S Business | Stevens Holding Company, Inc. | Subsequent Event | |||||||
Noncash or Part Noncash Divestitures [Line Items] | |||||||
Stockholders right to exchange (in shares) | shares | 35,000,000 |
Goodwill Rollforward of Goodwil
Goodwill Rollforward of Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 28, 2018USD ($) | |
Goodwill [Roll Forward] | |
December 31, 2017 | $ 5,098.5 |
Attributable to 2018 acquisitions | 1,661.8 |
Foreign currency translation & other | (17) |
September 28, 2018 | $ 6,743.3 |
Goodwill Goodwill by Segment (D
Goodwill Goodwill by Segment (Details) - USD ($) $ in Millions | Sep. 28, 2018 | Dec. 31, 2017 |
Goodwill [Line Items] | ||
Goodwill | $ 6,743.3 | $ 5,098.5 |
Professional Instrumentation | ||
Goodwill [Line Items] | ||
Goodwill | 4,992.3 | 3,331 |
Industrial Technologies | ||
Goodwill [Line Items] | ||
Goodwill | $ 1,751 | $ 1,767.5 |
Fair Value Measurements Narrati
Fair Value Measurements Narrative (Details) - USD ($) $ in Millions | Sep. 28, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liabilities | $ 24.2 | $ 20.9 |
Current portion of long-term debt, carrying amount | 1,824.5 | 0 |
Current portion of long-term debt, fair value | 1,822.4 | 0 |
Long-term debt, net of current maturities, carrying value | 3,178 | 4,056.2 |
Long-term debt, net of current maturities, fair value | 3,075.1 | 4,051.8 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Market (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liabilities | 24.2 | 20.9 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liabilities | $ 0 | $ 0 |
Financing and Capital Component
Financing and Capital Components of Debt (Details) - USD ($) $ in Millions | Sep. 28, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 5,002.5 | $ 4,056.2 |
Current portion of long-term debt | 1,824.5 | 0 |
Long-term debt, net of current maturities | 3,178 | 4,056.2 |
Other | ||
Debt Instrument [Line Items] | ||
Long-term debt | 3.4 | 3.4 |
Commercial Paper | U.S. dollar-denominated commercial paper | ||
Debt Instrument [Line Items] | ||
Long-term debt | 594.6 | 665.1 |
Commercial Paper | Euro-denominated commercial paper | ||
Debt Instrument [Line Items] | ||
Long-term debt | 273.3 | 282.7 |
Senior Notes | 1.80% senior unsecured notes due 2019 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 299.5 | 298.9 |
Interest rate, stated percentage | 1.80% | |
Senior Notes | 2.35% senior unsecured notes due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 746.7 | 745.9 |
Interest rate, stated percentage | 2.35% | |
Senior Notes | 3.15% senior unsecured notes due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 891.8 | 891 |
Interest rate, stated percentage | 3.15% | |
Senior Notes | 4.30% senior unsecured notes due 2046 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 546.9 | 546.8 |
Interest rate, stated percentage | 4.30% | |
Line of credit | U.S. dollar variable interest rate term loan due 2019 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 175 | 500 |
Line of credit | Delayed-draw term loan due 2019 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,350 | 0 |
Line of credit | Yen variable interest rate term loan due 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 121.3 | $ 122.4 |
Financing and Capital Commercia
Financing and Capital Commercial Paper (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 28, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Carrying value | $ 5,002.5 | $ 4,056.2 |
Commercial Paper | U.S. dollar-denominated commercial paper | ||
Debt Instrument [Line Items] | ||
Carrying value | $ 594.6 | 665.1 |
Annual effective rate | 2.38% | |
Weighted average remaining maturity (in days) | 11 days | |
Commercial Paper | Euro-denominated commercial paper | ||
Debt Instrument [Line Items] | ||
Carrying value | $ 273.3 | $ 282.7 |
Annual effective rate | (0.10%) | |
Weighted average remaining maturity (in days) | 87 days |
Financing and Capital Narrative
Financing and Capital Narrative (Details) - USD ($) $ in Millions | Oct. 05, 2018 | Oct. 01, 2018 | Aug. 22, 2018 | Jul. 20, 2018 | Sep. 28, 2018 | Sep. 29, 2017 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||||
Debt discounts, premiums and issuance costs | $ 15.5 | $ 18.2 | |||||
Repayments of debt | $ 725 | $ 0 | |||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt term | 5 years | ||||||
Senior unsecured revolving credit facility | $ 1,500 | ||||||
U.S. dollar variable interest rate term loan due 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 325 | ||||||
U.S. dollar variable interest rate term loan due 2019 | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 175 | ||||||
Delayed-draw term loan due 2019 | Line of credit | |||||||
Debt Instrument [Line Items] | |||||||
Debt term | 364 days | ||||||
Term loan facility, aggregate amount | $ 1,750 | ||||||
Interest rate at period end | 2.69% | ||||||
Repayments of credit facility | $ 400 | ||||||
Delayed-draw term loan due 2019 | Line of credit | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable interest rate | 0.75% | ||||||
1.80% senior unsecured notes due 2019 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 1.80% | ||||||
1.80% senior unsecured notes due 2019 | Senior Notes | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Retirement of debt | $ 244.7 | ||||||
Interest rate, stated percentage | 1.80% |
Financing and Capital Capital (
Financing and Capital Capital (Details) $ / shares in Units, $ in Millions | Sep. 28, 2018$ / sharesshares | Sep. 26, 2018dayshares | Jun. 29, 2018USD ($)$ / sharesshares | Sep. 28, 2018USD ($)$ / sharesshares | Sep. 29, 2017USD ($) | Dec. 31, 2017$ / sharesshares |
Schedule of Capitalization [Line Items] | ||||||
Preferred stock issued (in shares) | shares | 1,400,000 | 1,400,000 | 0 | |||
Preferred stock par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
Proceeds from issuance of mandatory convertible preferred stock net of $43 million of issuance costs | $ | $ 1,337.4 | $ 0 | ||||
Payments of stock issuance costs | $ | $ 43 | |||||
Dividend per share on MCPS (in dollars per share) | $ / shares | 12.78 | |||||
Preferred Stock | ||||||
Schedule of Capitalization [Line Items] | ||||||
Preferred stock issued (in shares) | shares | 1,380,000 | |||||
Preferred stock, dividend rate, percentage | 5.00% | 5.00% | ||||
Preferred stock par value (in dollars per share) | $ / shares | $ 0.01 | |||||
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares | 1,000 | $ 1,000 | $ 1,000 | |||
Preferred stock, over-allotment shares issued (in shares) | shares | 180,000 | |||||
Proceeds from issuance of mandatory convertible preferred stock net of $43 million of issuance costs | $ | $ 1,340 | |||||
Payments of stock issuance costs | $ | $ 43 | |||||
Convertible preferred stock, shares issued upon conversion | shares | 10.9041 | |||||
Debt instrument, convertible, threshold consecutive trading days | day | 20 | |||||
Preferred stock, dividend rate, per-dollar-amount (in dollars per share) | $ / shares | $ 50 | |||||
Dividend per share on MCPS (in dollars per share) | $ / shares | $ 12.78 | |||||
Minimum | Preferred Stock | ||||||
Schedule of Capitalization [Line Items] | ||||||
Convertible preferred stock, shares issued upon conversion | shares | 10.9041 | |||||
Maximum | Preferred Stock | ||||||
Schedule of Capitalization [Line Items] | ||||||
Convertible preferred stock, shares issued upon conversion | shares | 13.3575 |
Sales Contract liabilities (Det
Sales Contract liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 28, 2018 | Sep. 28, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | |||
Deferred revenue - current | $ 241.6 | $ 241.6 | $ 213.4 |
Deferred revenue - noncurrent | 91.7 | 91.7 | 86.9 |
Total contract liabilities | 333.3 | 333.3 | $ 300.3 |
Contract liabilities, revenue recognized | $ 20 | $ 84 |
Sales Narrative (Details)
Sales Narrative (Details) | Sep. 28, 2018 |
Revenue from Contract with Customer [Abstract] | |
Percentage of remaining performance obligation expected to fulfill within the next two years | 40.00% |
Percentage of remaining performance obligation expected to fulfill within the next three years | 75.00% |
Sales Revenue, Remaining Perfor
Sales Revenue, Remaining Performance Obligation (Details) $ in Millions | Sep. 28, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 564.2 |
Percentage of remaining performance obligation expected to fulfill within the next two years | 40.00% |
Percentage of remaining performance obligation expected to fulfill within the next three years | 75.00% |
Professional Instrumentation | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 123.6 |
Industrial Technologies | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 440.6 |
Sales Remaining Performance Obl
Sales Remaining Performance Obligation, Expected Timing (Details) | Sep. 28, 2018 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing | 4 years |
Sales Disaggregation of Revenue
Sales Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | $ 1,840.1 | $ 1,685.3 | $ 5,436.8 | $ 4,849.3 | ||||
Retail fueling | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 446.9 | [1] | 431.9 | [2] | 1,256.1 | [3] | 1,179.9 | [4] |
Industrial & Manufacturing | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 171.7 | 144.1 | 503.2 | 357.6 | ||||
Vehicle repair | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 146.4 | [1] | 140.3 | [2] | 442.9 | [3] | 433.8 | [4] |
Utilities & Power | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 32 | 55.1 | 134.6 | 152.3 | ||||
Other | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 553.8 | 488.2 | 1,613.7 | 1,447.4 | ||||
Total direct sales | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 1,350.8 | 1,259.6 | 3,950.5 | 3,571 | ||||
Distributors | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 489.3 | [1] | 425.7 | [2] | 1,486.3 | [3] | 1,278.3 | [4] |
Total Distributors | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 837 | 783.4 | 2,484.2 | 2,319.2 | ||||
Professional tools and equipment | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 1,243 | 1,105.4 | 3,609 | 3,122 | ||||
Industrial automation, controls and sensors | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 318.1 | 303.5 | 979.4 | 899.8 | ||||
Franchise distribution | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 160.9 | 155.3 | 486 | 476.5 | ||||
All other | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 118.1 | 121.1 | 362.4 | 351 | ||||
Professional Instrumentation | Operating Segments | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 894.1 | 786.8 | 2,654.8 | 2,261.9 | ||||
Professional Instrumentation | Operating Segments | Retail fueling | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 0 | [1] | 0 | [2] | 0 | [3] | 0 | [4] |
Professional Instrumentation | Operating Segments | Industrial & Manufacturing | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 91.6 | 68 | 279.2 | 190.6 | ||||
Professional Instrumentation | Operating Segments | Vehicle repair | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 0 | [1] | 0 | [2] | 0 | [3] | 0 | [4] |
Professional Instrumentation | Operating Segments | Utilities & Power | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 31.2 | 54.4 | 132.6 | 149.3 | ||||
Professional Instrumentation | Operating Segments | Other | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 356.4 | 304.8 | 989.4 | 854.7 | ||||
Professional Instrumentation | Operating Segments | Total direct sales | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 479.2 | 427.2 | 1,401.2 | 1,194.6 | ||||
Professional Instrumentation | Operating Segments | Distributors | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 414.9 | [1] | 359.6 | [2] | 1,253.6 | [3] | 1,067.3 | [4] |
Professional Instrumentation | Operating Segments | Professional tools and equipment | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 729.3 | 617.3 | 2,155.6 | 1,769.2 | ||||
Professional Instrumentation | Operating Segments | Industrial automation, controls and sensors | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 99.7 | 99.6 | 309.1 | 294.2 | ||||
Professional Instrumentation | Operating Segments | Franchise distribution | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 0 | 0 | 0 | 0 | ||||
Professional Instrumentation | Operating Segments | All other | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 65.1 | 69.9 | 190.1 | 198.5 | ||||
Industrial Technologies | Operating Segments | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 946 | 898.5 | 2,782 | 2,587.4 | ||||
Industrial Technologies | Operating Segments | Retail fueling | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 446.9 | [1] | 431.9 | [2] | 1,256.1 | [3] | 1,179.9 | [4] |
Industrial Technologies | Operating Segments | Industrial & Manufacturing | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 80.1 | 76.1 | 224 | 167 | ||||
Industrial Technologies | Operating Segments | Vehicle repair | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 146.4 | [1] | 140.3 | [2] | 442.9 | [3] | 433.8 | [4] |
Industrial Technologies | Operating Segments | Utilities & Power | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 0.8 | 0.7 | 2 | 3 | ||||
Industrial Technologies | Operating Segments | Other | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 197.4 | 183.4 | 624.3 | 592.7 | ||||
Industrial Technologies | Operating Segments | Total direct sales | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 871.6 | 832.4 | 2,549.3 | 2,376.4 | ||||
Industrial Technologies | Operating Segments | Distributors | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 74.4 | [1] | 66.1 | [2] | 232.7 | [3] | 211 | [4] |
Industrial Technologies | Operating Segments | Professional tools and equipment | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 513.7 | 488.1 | 1,453.4 | 1,352.8 | ||||
Industrial Technologies | Operating Segments | Industrial automation, controls and sensors | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 218.4 | 203.9 | 670.3 | 605.6 | ||||
Industrial Technologies | Operating Segments | Franchise distribution | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 160.9 | 155.3 | 486 | 476.5 | ||||
Industrial Technologies | Operating Segments | All other | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 53 | 51.2 | 172.3 | 152.5 | ||||
United States | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 1,044.5 | 935 | 2,954.9 | 2,670.7 | ||||
United States | Professional Instrumentation | Operating Segments | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 479.8 | 384.8 | 1,324.1 | 1,068.9 | ||||
United States | Industrial Technologies | Operating Segments | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 564.7 | 550.2 | 1,630.8 | 1,601.8 | ||||
China | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 142.1 | 130.9 | 460.2 | 395 | ||||
China | Professional Instrumentation | Operating Segments | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 90.1 | 84.7 | 299.4 | 267.1 | ||||
China | Industrial Technologies | Operating Segments | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 52 | 46.2 | 160.8 | 127.9 | ||||
Germany | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 85 | 80.5 | 255.8 | 221.8 | ||||
Germany | Professional Instrumentation | Operating Segments | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 34.5 | 34 | 102.4 | 90.2 | ||||
Germany | Industrial Technologies | Operating Segments | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 50.5 | 46.5 | 153.4 | 131.6 | ||||
All other (each country individually less than 5% of total sales) | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 568.5 | 538.9 | 1,765.9 | 1,561.8 | ||||
All other (each country individually less than 5% of total sales) | Professional Instrumentation | Operating Segments | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | 289.7 | 283.3 | 928.9 | 835.7 | ||||
All other (each country individually less than 5% of total sales) | Industrial Technologies | Operating Segments | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Sales | $ 278.8 | $ 255.6 | $ 837 | $ 726.1 | ||||
[1] | (a) Retail fueling and vehicle repair includes sales to these end markets made through third party distributors. Total distributor sales for the three months ended September?28, 2018 was $837.0 million. | |||||||
[2] | (a) Retail fueling and vehicle repair includes sales to these end markets made through third party distributors. Total distributor sales for the three months ended September?29, 2017 was $783.4 million. | |||||||
[3] | (a) Retail fueling and vehicle repair include sales to these end markets made through third-party distributors. Total distributor sales for the nine months ended September?28, 2018 was $2,484.2 million. | |||||||
[4] | (a) Retail fueling and vehicle repair includes sales to these end markets made through third party distributors. Total distributor sales for the nine months ended September?29, 2017 was $2,319.2 million. |
Pension Plans Components of Net
Pension Plans Components of Net Periodic Pension Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |
Domestic Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 0.3 | $ 0 | $ 0.9 | $ 0 |
Expected return on plan assets | (0.4) | 0 | (1.1) | 0 |
Net periodic pension cost | (0.1) | 0 | (0.2) | 0 |
Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.5 | 1.1 | 1.4 | 3.1 |
Interest cost | 1.4 | 1.5 | 4.4 | 4.4 |
Expected return on plan assets | (1.8) | (1.9) | (5.5) | (5.5) |
Amortization of net loss | 0.9 | 1.2 | 2.7 | 3.4 |
Net curtailment and settlement loss recognized | 0.3 | 0 | 0.9 | 0 |
Net periodic pension cost | $ 1.3 | $ 1.9 | $ 3.9 | $ 5.4 |
Pension Plans Narrative (Detail
Pension Plans Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 29, 2017 | Sep. 29, 2017 | Sep. 28, 2018 | |
Accounting Standards Update 2017-07 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Reclassification of prior year pension cost, operating income increase | $ 0.8 | $ 2.3 | |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contributions | $ 10 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2018USD ($) | Sep. 29, 2017 | Sep. 28, 2018USD ($) | Sep. 29, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 17.20% | 23.10% | 17.00% | 25.20% |
U.S. federal statutory rate | 21.00% | 35.00% | ||
TCJA adjustments - increase (decrease) in tax expense | $ 1.2 | $ (4.9) | ||
Tax cuts and jobs act of 2017, incomplete accounting, adjustment, increase (decrease) in effective tax rate | 0.0040 | (0.0050) | ||
Tax cuts and jobs act of 2017, incomplete accounting, revaluation of deferred tax assets and liabilities - increase (decrease) in tax expense | $ 3.2 | $ (11.9) | ||
Tax cuts and jobs act of 2017, incomplete accounting, transition tax for accumulated foreign earnings, provisional liability - increase (decrease) in tax expense | $ (2) | (3.9) | ||
Tax cuts and jobs act of 2017, incomplete accounting, foreign tax credit, provisional liability - increase (decrease) in tax expense | $ 10.9 |
Stock-Based Compensation Narrat
Stock-Based Compensation Narrative (Details) shares in Millions | 9 Months Ended |
Sep. 28, 2018shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shares of common stock reserved for issuance under the Stock Plan (in shares) | 22 |
Remaining service period related to the awards | 2 years |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |
Stock-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pretax compensation expense | $ 14 | $ 11.9 | $ 40.5 | $ 37.2 |
Income tax benefit | (3) | (4) | (8.6) | (13) |
Total stock-based compensation expense | 11 | 7.9 | 31.9 | 24.2 |
Stock Awards | ||||
Stock-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pretax compensation expense | 8.5 | 7.2 | 24.1 | 22.6 |
Income tax benefit | (1.8) | (2.4) | (5.1) | (8) |
Total stock-based compensation expense | 6.7 | 4.8 | 19 | 14.6 |
Stock options | ||||
Stock-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pretax compensation expense | 5.5 | 4.7 | 16.4 | 14.6 |
Income tax benefit | (1.2) | (1.6) | (3.5) | (5) |
Total stock-based compensation expense | $ 4.3 | $ 3.1 | $ 12.9 | $ 9.6 |
Stock-Based Compensation Unreco
Stock-Based Compensation Unrecognized Compensation Cost (Details) $ in Millions | Sep. 28, 2018USD ($) |
Stock-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 104.5 |
Stock Awards | |
Stock-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | 52.8 |
Stock options | |
Stock-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 51.7 |
Commitments and Contingencies F
Commitments and Contingencies Future Minimum Lease Obligations (Details) $ in Millions | Sep. 28, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Maximum lease period | 20 years |
2,018 | $ 48 |
2,019 | 42 |
2,020 | 31 |
2,021 | 20 |
2,022 | 16 |
Thereafter | $ 20 |
Commitments and Contingencies R
Commitments and Contingencies Rollforward of Accrued Warranty Liability (Details) $ in Millions | 9 Months Ended |
Sep. 28, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranty period - minimum | 90 days |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
December 31, 2017 | $ 69.4 |
Accruals for warranties issued during the period | 56.8 |
Settlements made | (58.7) |
Additions due to acquisitions | 0.2 |
Effect of foreign currency translation | (0.3) |
September 28, 2018 | $ 67.4 |
Net Earnings Per Share Narrativ
Net Earnings Per Share Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Sep. 28, 2018 | Sep. 28, 2018 | Sep. 28, 2018 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0.1 | |
Dividend per share on MCPS (in dollars per share) | $ 12.78 | ||
Aggregate amount of cash dividend on MCPS | $ 17.6 | ||
MCPS | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 16.1 | 5.4 |
Net Earnings Per Share Earnings
Net Earnings Per Share Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |
Earnings Per Share [Abstract] | ||||
Net earnings | $ 245.3 | $ 267.8 | $ 801.5 | $ 707.6 |
Mandatory convertible preferred stock cumulative dividends | (17.4) | 0 | (17.6) | 0 |
Net earnings attributable to common stockholders | $ 227.9 | $ 267.8 | $ 783.9 | $ 707.6 |
Weighted average common shares outstanding used in basic earnings per share (in shares) | 349.9 | 347.7 | 349.2 | 347.3 |
Incremental common shares from: | ||||
Assumed exercise of dilutive options and vesting of dilutive Stock Awards (in shares) | 5.4 | 5.2 | 5.6 | 4.9 |
Weighted average common shares outstanding used in diluted earnings per share (in shares) | 355.3 | 352.9 | 354.8 | 352.2 |
Net earnings per common share - Basic (in dollars per share) | $ 0.65 | $ 0.77 | $ 2.24 | $ 2.04 |
Net earnings per share - Diluted (in dollars per share) | $ 0.64 | $ 0.76 | $ 2.21 | $ 2.01 |
Net Earnings Per Share Dividend
Net Earnings Per Share Dividends Declared and Paid (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | |
Earnings Per Share [Abstract] | ||||||||
Dividend per Common Share (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.21 | $ 0.21 |
Amount | $ 24.5 | $ 24.4 | $ 24.3 | $ 24.3 | $ 24.3 | $ 24.3 | $ 73.2 | $ 72.8 |
Segment Information Narrative (
Segment Information Narrative (Details) | 9 Months Ended |
Sep. 28, 2018segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information Detailed Se
Segment Information Detailed Segment Data (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2018 | Sep. 29, 2017 | Sep. 28, 2018 | Sep. 29, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Sales | $ 1,840.1 | $ 1,685.3 | $ 5,436.8 | $ 4,849.3 | |
Operating Profit | 321.4 | 356.7 | 1,042.1 | 1,001.4 | |
Gain from acquisition | 0 | 15.3 | 0 | 15.3 | |
Interest expense | (24.4) | (22.9) | (74.3) | (68.2) | |
Other non-operating expenses | (0.8) | (0.8) | (2.6) | (2.3) | |
Earnings before income taxes | 296.2 | 348.3 | 965.2 | 946.2 | |
Assets | 13,862.8 | 13,862.8 | $ 10,500.6 | ||
Operating Segments | Professional Instrumentation | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 894.1 | 786.8 | 2,654.8 | 2,261.9 | |
Operating Profit | 180 | 179.2 | 605.8 | 523.2 | |
Assets | 8,634 | 8,634 | 5,588.1 | ||
Operating Segments | Industrial Technologies | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 946 | 898.5 | 2,782 | 2,587.4 | |
Operating Profit | 199.7 | 196.4 | 558.9 | 530.9 | |
Assets | 3,876.3 | 3,876.3 | 3,773.7 | ||
Corporate, Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Operating Profit | (58.3) | $ (18.9) | (122.6) | $ (52.7) | |
Assets | $ 1,352.5 | $ 1,352.5 | $ 1,138.8 |