Cover Page
Cover Page - shares | 3 Months Ended | |
Apr. 01, 2022 | Apr. 25, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 1, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-37654 | |
Entity Registrant Name | Fortive Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-5654583 | |
Entity Address, Address Line One | 6920 Seaway Blvd | |
Entity Address, City or Town | Everett, | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98203 | |
City Area Code | 425 | |
Local Phone Number | 446-5000 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | FTV | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 358,447,899 | |
Amendment flag | false | |
Document fiscal year focus | 2022 | |
Document fiscal period focus | Q1 | |
Entity central index key | 0001659166 | |
Current fiscal year end date | --12-31 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Apr. 01, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and equivalents | $ 684.3 | $ 819.3 |
Accounts receivable, net | 929 | 930.2 |
Inventories: | ||
Finished goods | 232 | 215.4 |
Work in process | 103 | 94 |
Raw materials | 218.3 | 203.3 |
Inventories | 553.3 | 512.7 |
Prepaid expenses and other current assets | 281.1 | 252.7 |
Total current assets | 2,447.7 | 2,514.9 |
Property, plant and equipment, net of accumulated depreciation of $723.2 and $679.0 at April 1, 2022 and December 31, 2021, respectively | 412.6 | 395.5 |
Other assets | 484.3 | 512.9 |
Goodwill | 9,132.9 | 9,152 |
Other intangible assets, net | 3,788.9 | 3,890.2 |
Total assets | 16,266.4 | 16,465.5 |
Current liabilities: | ||
Current portion of long-term debt | 999.8 | 2,151.7 |
Trade accounts payable | 576.1 | 557.9 |
Accrued expenses and other current liabilities | 985.7 | 1,005.3 |
Total current liabilities | 2,561.6 | 3,714.9 |
Other long-term liabilities | 1,399.2 | 1,426.3 |
Long-term debt | 2,738.9 | 1,807.3 |
Commitments and Contingencies | ||
Equity: | ||
Preferred stock: $0.01 par value, 15.0 million shares authorized and no shares issued or outstanding at April 1, 2022 and December 31, 2021 | 0 | 0 |
Common stock: $0.01 par value, 2.0 billion shares authorized; 360.9 and 360.4 million issued; 358.4 and 359.1 million outstanding at April 1, 2022 and December 31, 2021, respectively | 3.6 | 3.6 |
Additional paid-in capital | 3,619.1 | 3,670 |
Treasury shares, at cost: | (63.8) | 0 |
Retained earnings | 6,226.4 | 6,023.6 |
Accumulated other comprehensive loss | (223.9) | (185) |
Total Fortive stockholders’ equity | 9,561.4 | 9,512.2 |
Noncontrolling interests | 5.3 | 4.8 |
Total stockholders’ equity | 9,566.7 | 9,517 |
Total liabilities and equity | $ 16,266.4 | $ 16,465.5 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Apr. 01, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 723.2 | $ 679 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 360,900,000 | 360,400,000 |
Common stock, shares outstanding (in shares) | 358,400,000 | 359,100,000 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Total sales | $ 1,376.5 | $ 1,259.2 |
Total cost of sales | (584.5) | (547.3) |
Gross profit | 792 | 711.9 |
Operating costs: | ||
Selling, general and administrative expenses | (480.6) | (428.1) |
Research and development expenses | (99.1) | (86.2) |
Operating profit | 212.3 | 197.6 |
Non-operating income (expense), net: | ||
Interest expense, net | (18.8) | (27.7) |
Loss on extinguishment of debt | 0 | (104.9) |
Gain on investment in Vontier Corporation | 0 | 57 |
Other non-operating expense, net | (2.7) | (3.3) |
Earnings from continuing operations before income taxes | 190.8 | 118.7 |
Income taxes | (25.7) | (7) |
Net earnings from continuing operations | 165.1 | 111.7 |
Earnings (loss) from discontinued operations, net of income taxes | 0 | (1.5) |
Net earnings | 165.1 | 110.2 |
Mandatory convertible preferred dividends | 0 | (17.3) |
Net earnings attributable to common stockholders | $ 165.1 | $ 92.9 |
Net earnings per common share from continuing operations: | ||
Basic (in dollars per share) | $ 0.46 | $ 0.28 |
Diluted (in dollars per share) | 0.45 | 0.28 |
Net earnings (loss) per share from discontinued operations: | ||
Basic (in dollars per share) | 0 | 0 |
Diluted (in dollars per share) | 0 | 0 |
Net earnings per share: | ||
Basic (in dollars per share) | 0.46 | 0.27 |
Diluted (in dollars per share) | $ 0.45 | $ 0.27 |
Average common stock and common equivalent shares outstanding: | ||
Basic (in shares) | 359.3 | 338.6 |
Diluted (in shares) | 368.4 | 341.7 |
Sales of products and software | ||
Total sales | $ 1,152.7 | $ 1,077.2 |
Total cost of sales | (465.1) | (444.3) |
Sales of services | ||
Total sales | 223.8 | 182 |
Total cost of sales | $ (119.4) | $ (103) |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 165.1 | $ 110.2 |
Other comprehensive income, net of income taxes: | ||
Foreign currency translation adjustments | (39.4) | (34.7) |
Pension adjustments | 0.5 | 1 |
Total other comprehensive income (loss), net of income taxes | (38.9) | (33.7) |
Comprehensive income | $ 126.2 | $ 76.5 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Changes in Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Preferred Stock | Preferred StockCumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock | Treasury StockCumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-In Capital | Additional Paid-In CapitalCumulative Effect, Period of Adoption, Adjustment | Additional Paid-In CapitalCumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained EarningsCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjusted Balance | Noncontrolling Interests | Noncontrolling InterestsCumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance (in shares) at Dec. 31, 2020 | 339 | 1.4 | |||||||||||||||
Beginning balance at Dec. 31, 2020 | $ 3.4 | $ 0 | $ 0 | $ 3,554.5 | $ 5,547.4 | $ (141.1) | $ 8.5 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net earnings for the period | $ 110.2 | 110.2 | |||||||||||||||
Dividends to common shareholders | (23.7) | (23.7) | |||||||||||||||
Mandatory convertible preferred stock cumulative dividends | (17.3) | (17.3) | |||||||||||||||
Other comprehensive income (loss) | (33.7) | (33.7) | |||||||||||||||
Common stock-based award activity (in shares) | (0.4) | ||||||||||||||||
Common stock-based award activity | 34.1 | ||||||||||||||||
Shares withheld for taxes (in shares) | (0.1) | ||||||||||||||||
Shares withheld for taxes | (13.2) | ||||||||||||||||
Early extinguishment of 0.875% convertible senior notes due 2022 | (11.6) | ||||||||||||||||
Change in noncontrolling interest | (0.8) | ||||||||||||||||
Ending balance (in shares) at Apr. 02, 2021 | 338.5 | 1.4 | |||||||||||||||
Ending balance at Apr. 02, 2021 | $ 3.4 | $ 0 | 0 | 3,563.8 | 5,616.6 | (174.8) | 7.7 | ||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 339 | 1.4 | |||||||||||||||
Beginning balance at Dec. 31, 2020 | $ 3.4 | $ 0 | 0 | 3,554.5 | 5,547.4 | (141.1) | 8.5 | ||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 359.1 | 359.1 | 0 | 0 | |||||||||||||
Ending balance at Dec. 31, 2021 | $ 9,517 | $ 3.6 | $ 3.6 | $ 0 | $ 0 | 0 | $ 0 | 3,670 | $ (65.7) | $ 3,604.3 | 6,023.6 | $ 62.8 | $ 6,086.4 | (185) | $ (185) | 4.8 | $ 4.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2020-06 [Member] | ||||||||||||||||
Net earnings for the period | $ 165.1 | 165.1 | |||||||||||||||
Dividends to common shareholders | (25.1) | (25.1) | |||||||||||||||
Mandatory convertible preferred stock cumulative dividends | 0 | ||||||||||||||||
Other comprehensive income (loss) | (38.9) | (38.9) | |||||||||||||||
Common stock-based award activity (in shares) | 0.5 | ||||||||||||||||
Common stock-based award activity | 23.8 | ||||||||||||||||
Common stock repurchases (in shares) | (1) | ||||||||||||||||
Common stock repurchases | (63.8) | ||||||||||||||||
Shares withheld for taxes (in shares) | (0.2) | ||||||||||||||||
Shares withheld for taxes | (9) | ||||||||||||||||
Change in noncontrolling interest | 0.5 | ||||||||||||||||
Ending balance (in shares) at Apr. 01, 2022 | 358.4 | 0 | |||||||||||||||
Ending balance at Apr. 01, 2022 | $ 9,566.7 | $ 3.6 | $ 0 | $ (63.8) | $ 3,619.1 | $ 6,226.4 | $ (223.9) | $ 5.3 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Changes in Equity (Parenthetical) | Apr. 01, 2022 | Jan. 01, 2022 | Apr. 02, 2021 | Feb. 22, 2019 |
0.875% senior convertible notes due 2022 | Convertible Debt | ||||
Interest rate, stated percentage | 0.875% | 0.875% | 0.875% | 0.875% |
Consolidated Condensed Statem_5
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Cash flows from operating activities: | ||
Net earnings from continuing operations | $ 165.1 | $ 111.7 |
Noncash items: | ||
Amortization | 96.3 | 77.5 |
Depreciation | 21.5 | 19.5 |
Stock-based compensation expense | 19.9 | 16.6 |
Loss on extinguishment of debt | 0 | 104.2 |
Gain on investment in Vontier Corporation | 0 | (57) |
Change in trade accounts receivable, net | (1.4) | (26.9) |
Change in inventories | (43.2) | (3.8) |
Change in trade accounts payable | 19.2 | (13) |
Change in prepaid expenses and other assets | (31.4) | 3.8 |
Change in accrued expenses and other liabilities | (31.2) | (80.6) |
Total operating cash provided by continuing operations | 214.8 | 152 |
Total operating cash used in discontinued operations | 0 | (7.2) |
Net cash provided by operating activities | 214.8 | 144.8 |
Cash flows from investing activities: | ||
Cash paid for acquisitions, net of cash received | 0.9 | (0.2) |
Payments for additions to property, plant and equipment | (18.8) | (8.4) |
Net cash used in investing activities | (17.9) | (8.6) |
Cash flows from financing activities: | ||
Repayments of convertible debt | (1,156.5) | 0 |
Net proceeds from commercial paper borrowings | 930.7 | 0 |
Repayment of borrowings (maturities greater than 90 days) | 0 | (611.1) |
Payment of common stock cash dividend to shareholders | (25.1) | (23.7) |
Payment of mandatory convertible preferred stock cash dividend to shareholders | 0 | (17.3) |
Repurchase of common shares | (63.8) | 0 |
All other financing activities | (17.9) | (2.8) |
Net cash used in financing activities | (332.6) | (654.9) |
Effect of exchange rate changes on cash and equivalents | 0.7 | (6.5) |
Net change in cash and equivalents | (135) | (525.2) |
Beginning balance of cash and equivalents | 819.3 | 1,824.8 |
Ending balance of cash and equivalents | $ 684.3 | $ 1,299.6 |
Consolidated Condensed Statem_6
Consolidated Condensed Statements of Cash Flows (Parenthetical) | Apr. 01, 2022 | Jan. 01, 2022 | Apr. 02, 2021 | Feb. 22, 2019 |
0.875% senior convertible notes due 2022 | Convertible Debt | ||||
Interest rate, stated percentage | 0.875% | 0.875% | 0.875% | 0.875% |
Business Overview
Business Overview | 3 Months Ended |
Apr. 01, 2022 | |
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 provider of essential technologies for connected workflow solutions across a range of attractive end-markets. Our strategic segments - Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions - include well-known brands with leading positions in their markets. Our businesses design, develop, manufacture, and service professional and engineered products, software, and services, building upon leading brand names, innovative technologies, and significant market positions. Our research and development, manufacturing, sales, distribution, service, and administrative facilities are located in more than 50 countries around the world. 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 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, 2021 and the footnotes (“Notes”) thereto included within our 2021 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 April 1, 2022 and December 31, 2021, our results of operations and cash flows for the three month periods ended April 1, 2022 and April 2, 2021. Reclassification of certain prior year amounts have been made to conform to current year presentation. Vontier Separation and Discontinued Operations On October 9, 2020, we completed the separation of Vontier Corporation (“Vontier”), the entity we created to hold our former Industrial Technologies segment (the “Separation”). The accounting requirements for reporting the Vontier business as a discontinued operation were met when the Separation was completed. Accordingly, the consolidated condensed financial statements reflect the results of separation activities associated with the prior Vontier business as a discontinued operation, which was immaterial for all periods presented. On January 19, 2021, we completed an exchange (the “Debt-for-Equity Exchange”) of 33.5 million shares of common stock of Vontier, representing all of the Retained Vontier Shares, for $1.1 billion in aggregate principal amount of indebtedness of the Company held by Goldman Sachs & Co. Interest expense and extinguishment costs related to the Debt-for-Equity Exchange during the first quarter of 2021 are included in continuing operations. Segment Presentation We operate and report our results in three segments, Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions, each of which is further described below. Our Intelligent Operating Solutions segment provides leading workflow solutions to accelerate industrial and facility reliability and performance, as well as compliance and safety across a range of vertical end markets, including manufacturing, process industries, healthcare, utilities and power, communications and electronics, among others. We provide differentiated instrumentation and sensors, software and services to address our customers’ toughest workflow challenges. Our Precision Technologies segment supplies instrumentation and sensing technologies to a broad set of vertical end markets, enabling our customers to accelerate the development, manufacture and launch of innovative products and solutions. We provide our customers with electrical test and measurement instruments and services, energetic material devices, and a broad portfolio of sensor and control system solutions. Our Advanced Healthcare Solutions segment supplies critical workflow solutions to hospitals and other healthcare customers, enabling safer, more efficient, and higher quality healthcare. We provide hardware, consumables, software and services that optimize our customers’ most critical workflows, including instrument sterilization and device reprocessing, instrument tracking, cell therapy equipment design and manufacturing, biomedical test tools, radiation safety monitoring, end-to-end clinical productivity solutions and asset management. 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 (“AOCI”) by component are summarized below ($ in millions): Foreign Pension adjustments (a) Total For the Three Months Ended April 1, 2022: Balance, December 31, 2021 $ (122.7) $ (62.3) $ (185.0) Other comprehensive income (loss) before reclassifications, net of income taxes (39.4) — (39.4) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 0.6 (b) 0.6 Income tax impact — (0.1) (0.1) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.5 0.5 Net current period other comprehensive income (loss), net of income taxes (39.4) 0.5 (38.9) Balance, April 1, 2022 $ (162.1) $ (61.8) $ (223.9) For the Three Months Ended April 2, 2021: Balance, December 31, 2020 $ (54.0) $ (87.1) $ (141.1) Other comprehensive income (loss) before reclassifications, net of income taxes (34.7) — (34.7) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 1.3 (b) 1.3 Income tax impact — (0.3) (0.3) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 1.0 1.0 Net current period other comprehensive income (loss), net of income taxes (34.7) 1.0 (33.7) Balance, April 2, 2021 $ (88.7) $ (86.1) $ (174.8) (a) Includes balances relating to defined benefit plans, supplemental executive retirement plans, and other postretirement employee benefit plans. (b) This component of AOCI is included in the computation of net periodic pension cost (refer to Note 12 in our most recently filed Form 10-K for additional details). Allowances for Doubtful Accounts All trade accounts and unbilled receivables are reported in the Consolidated Condensed Balance Sheet adjusted for any write-offs and net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from our unbilled and trade accounts receivable portfolios over the life of the underlying assets. Additions to the allowances are charged to current period earnings, amounts determined to be uncollectible are charged directly against the allowances, while amounts recovered on previously written-off accounts increase the allowances. The following is a rollforward of the aggregated allowance for credit losses related to our trade accounts receivables as of April 1, 2022 ($ in millions): Balance, December 31, 2021 $ 39.7 Provision 3.4 Write-offs (3.6) Foreign currency exchange and other (0.1) Balance, April 1, 2022 $ 39.4 The allowance for unbilled receivables was immaterial for all periods presented. Recently Issued Accounting Standard In August 2020, the Financial Accounting Standards Board issued Accounting Standards Update No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which amends the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. On January 1, 2022, we adopted ASU 2020-06 using a modified retrospective approach and recognized in our balance sheet, as of January 1, 2022, a net of tax adjustment to reduce Additional Paid-in Capital by $65.7 million and increase debt by $3.7 million, with a corresponding net of tax adjustment to beginning retained earnings of $62.8 million. These adjustments are related to our 0.875% Convertible Senior Notes (the “Convertible Notes”), which were the only outstanding instruments impacted by the new standard at the time of adoption. Results for reporting periods beginning January 1, 2022 reflect the adoption of ASU 2020-06, while prior period amounts were not adjusted and continue to be reported in accordance with our historical accounting practices. Prior to our adoption of ASU 2020-06 on January 1, 2022, we recognized the fair value of the nonconvertible debt component of our Convertible Notes subject to the cash conversion guidance as debt and attributed the residual value to the conversion feature which was recognized in APIC. Subsequent to the issuance of our Convertible Notes in February 2019, we accreted the debt discount as non-cash interest expense in our Statements of Earnings. Further, we applied the treasury stock method to our Convertible Notes when calculating earnings per share (“EPS”) in all periods prior to our adoption of ASU 2020-06. After our adoption of ASU 2020-06, we account for convertible debt instruments wholly as debt, unless a convertible instrument contains features that require bifurcation as a derivative under ASC 815 or a convertible debt instrument is issued at a substantial premium. On January 1, 2022, we reclassified the unamortized cost basis of our outstanding Convertible Notes wholly as debt, which subsequently matured and was settled on February 15, 2022. We applied the if-converted method to all convertible instruments when calculating EPS for the three months ended April 1, 2022. As of April 1, 2022, we had no convertible instruments outstanding subject to the guidance in ASU 2020-06. |
Acquisitions
Acquisitions | 3 Months Ended |
Apr. 01, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | NOTE 2. ACQUISITIONS 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 of businesses 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 complementary 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 complementary 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. During the three month period ended April 1, 2022, adjustments were made to the preliminary purchase price allocation of prior year acquisitions as described below. Provation On December 27, 2021, we acquired Provation Software, Inc. (“Provation”), a leading provider of clinical workflow software solutions used in hospitals and ambulatory surgery centers. The acquisition of Provation extends our digital offering and software capabilities in the healthcare space. The total consideration paid was approximately $1.4 billion, net of acquired cash and was primarily financed with proceeds from our financing activities and available cash. We preliminarily recorded $978 million of goodwill related to the acquisition, which is not tax deductible. During the three month period ended April 1, 2022, provisional goodwill increased by $8.1 million for measurement period adjustments. Provation had revenue in 2020 of approximately $90 million and is an operating company within our Advanced Healthcare Solutions segment. ServiceChannel On August 24, 2021, we acquired ServiceChannel Holdings, Inc. (“ServiceChannel”), a privately held, global provider of Software as a Service (“SaaS”) based multi-site facilities maintenance service solutions with an integrated service-provider network. The acquisition of ServiceChannel broadens our offering of software-enabled solutions for the facility and asset lifecycle workflow. The total consideration paid was approximately $1.2 billion, net of acquired cash, and included approximately $28 million of deferred compensation consideration that is being recognized ratably over a twelve month service period. The ServiceChannel acquisition was primarily financed with available cash and proceeds from our financing activities. We preliminarily recorded approximately $873 million of goodwill related to the acquisition, which is not tax deductible. ServiceChannel had revenue in 2020 of approximately $70 million and is an operating company within our Intelligent Operating Solutions segment. Revenue and operating loss attributable to the Provation and ServiceChannel acquisitions were $67.3 million and $23.4 million for the three months ended April 1, 2022. The operating loss includes $19.5 million of intangible asset amortization and $20.4 million of transaction and integration costs, primary comprised of compensation cost for employee retention and amounts paid to third party advisors, which are recorded in Selling, general and administration expenses. The following table summarizes the preliminary estimated fair value of the assets acquired and liabilities assumed from ServiceChannel and Provation as of April 1, 2022 ($ in millions): Provation ServiceChannel Total Accounts receivable $ 41.6 $ 10.1 $ 51.7 Goodwill 977.6 872.9 1,850.5 Other intangible assets, primarily customer relationships, technology, database, and trade names 586.5 342.9 929.4 Deferred revenue, current (50.2) (1.7) (51.9) Deferred tax liabilities (119.4) (50.8) (170.2) Other assets and liabilities, net (30.5) (7.5) (38.0) Net cash consideration $ 1,405.6 $ 1,165.9 $ 2,571.5 |
Goodwill
Goodwill | 3 Months Ended |
Apr. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 3. GOODWILL The following is a rollforward of our carrying value of goodwill by segment ($ in millions): Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Total Goodwill Balance, December 31, 2021 $ 4,126.0 $ 1,840.0 $ 3,186.0 $ 9,152.0 Measurement period adjustments for 2021 acquisitions (0.6) — 9.3 8.7 Foreign currency translation and other (10.9) (13.4) (3.5) (27.8) Balance, April 1, 2022 $ 4,114.5 $ 1,826.6 $ 3,191.8 $ 9,132.9 During the three month period ended April 1, 2022, we identified no triggering events indicating a potential impairment of goodwill. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 01, 2022 | |
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) for identical assets or liabilities in active markets. • 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 Significant Other Significant Total April 1, 2022 Deferred compensation liabilities $ — $ 35.8 $ — $ 35.8 December 31, 2021 Deferred compensation liabilities — 36.0 — 36.0 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 Consolidated Condensed Balance Sheets. Participants may choose among alternative earnings 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. Nonrecurring Fair Value Measurements Certain non-financial assets, primarily property, plant, and equipment, goodwill, and intangible assets, are not required to be measured at fair value on a recurring basis and are reported at their carrying value. However, these assets are required to be assessed for impairment whenever events or circumstances indicate that their carrying value may not be fully recoverable, and at least annually for goodwill and indefinite-lived intangible assets. We evaluated events or circumstances that may indicate the carrying value of our non-financial assets may not be fully recoverable during the three month period ended April 1, 2022, and recorded no impairments. Fair Value of Financial Instruments The carrying amount and fair value of financial instruments are as follows ($ in millions): April 1, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Current portion of long-term debt $ 999.8 $ 1,000.0 $ 2,151.7 $ 2,158.3 Long-term debt, net of current maturities $ 2,738.9 $ 2,767.9 $ 1,807.3 $ 1,978.9 As of April 1, 2022 and December 31, 2021, the current portion of long-term debt and long-term debt, net of current maturities were categorized as Level 1. The fair values of the current portion of long-term debt and long-term debt were based on quoted market prices. The difference between the fair value and the carrying amounts of long-term borrowings may be attributable to changes in market interest rates |
Financing and Capital
Financing and Capital | 3 Months Ended |
Apr. 01, 2022 | |
Debt Disclosure [Abstract] | |
Financing and Capital | NOTE 5. FINANCING AND CAPITAL The carrying value of the components of our long-term debt were as follows ($ in millions): April 1, 2022 December 31, 2021 U.S. dollar-denominated commercial paper $ 1,296.2 $ 364.9 Delayed-Draw Term Loan due 2022 999.8 999.7 3.15% senior unsecured notes due 2026 895.4 895.1 4.30% senior unsecured notes due 2046 547.3 547.3 0.875% senior convertible notes due 2022 — 1,152.0 Long-term debt 3,738.7 3,959.0 Less: current portion of long-term debt 999.8 2,151.7 Long-term debt, net of current maturities $ 2,738.9 $ 1,807.3 Aggregate unamortized debt discounts, premiums, and issuance costs of $8 million and $13 million as of April 1, 2022 and December 31, 2021, respectively, are netted against the principal amounts of the components of debt in the table above. Refer to Note 11 of our 2021 Annual Report on Form 10-K for further details of our debt financing. Convertible Senior Notes On February 22, 2019, we issued $1.4 billion in aggregate principal amount of our 0.875% Convertible Senior Notes due 2022, including $187.5 million in aggregate principal amount resulting from an exercise in full of an over-allotment option. The Convertible Notes were issued in a private placement to certain initial purchasers for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act. Of the $1.4 billion in principal amount from the issuance of the Convertible Notes, $1.3 billion was classified as debt and $102.2 million was classified as equity, using an assumed effective interest rate of 3.38%. Debt issuance costs of $24.3 million were proportionately allocated to debt and equity. On February 9, 2021, we repurchased $281 million of the Convertible Notes at fair value using the remaining cash proceeds received from Vontier in the Vontier Separation and other cash on hand. In connection with the repurchase, we recorded a loss on debt extinguishment during the three month period ended April 2, 2021 of $10.5 million. In addition, upon repurchase we recorded $11.6 million as a reduction to additional paid-in capital related to the equity component of the repurchased Convertible Notes. On January 1, 2022, we adopted ASU 2020-06, as further detailed in Note 1. We reclassified the carrying value of the instrument wholly to debt, eliminating the value formerly attributable to the conversion feature and the associated debt issuance costs that were previously classified as equity. On February 15, 2022, the maturity date of the Convertible Notes, Fortive repaid, in cash, $1.2 billion in outstanding principal and accrued interest thereon. We recognized $2.1 million in interest expense during the three month period ended April 1, 2022, of which $1.3 million was related to the contractual coupon rate of 0.875% and $0.8 million was attributable to the amortization of debt issuance costs. We recognized $12.2 million in interest expense during the three month period ended April 2, 2021, of which $2.8 million related to the contractual coupon rate of 0.875%, $1.7 million was attributable to the amortization of debt issuance costs, and $7.7 million was attributable to the amortization of the discount. Other Liquidity Sources We generally satisfy any short-term liquidity needs that are not met through operating cash flows and available cash primarily through issuances of commercial paper under our U.S. dollar and Euro-denominated commercial paper programs (“Commercial Paper Programs”). Under these programs, we may issue unsecured promissory notes with maturities not exceeding 397 and 183 days, respectively. Interest expense on commercial paper is paid at maturity and is generally based on our credit ratings at the time of issuance and prevailing short-term interest rates. The details of our outstanding Commercial Paper Programs as of April 1, 2022 were as follows ($ in millions): Carrying value Annual effective rate Weighted average remaining maturity (in days) U.S. dollar-denominated commercial paper $ 1,296.2 0.91 % 39 Credit support for the Commercial Paper Programs is provided by a five-year $2.0 billion senior unsecured revolving credit facility that expires on November 30, 2023 (the “Revolving Credit Facility”) which, to the extent not otherwise providing credit support for our commercial paper programs, can also be used for working capital and other general corporate purposes. As of April 1, 2022, no borrowings were outstanding under the Revolving Credit Facility. Debt-for-Equity Exchange On January 19, 2021, we completed the Debt-for-Equity Exchange of 33.5 million shares of common stock of Vontier, representing all of the Retained Vontier Shares, for $1.1 billion in aggregate principal amount of indebtedness of the Company. During the first quarter of 2021 we recognized a gain of $57.0 million related to the subsequent change in the fair value of the Retained Vontier Shares. We recorded a loss on extinguishment of the debt included in the Debt-for-Equity Exchange of $94.4 million in the three month period ended April 2, 2021. |
Sales
Sales | 3 Months Ended |
Apr. 01, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Sales | NOTE 6. SALES We derive revenue primarily from the sale of products and software, 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, software, or services. Product sales include revenue from the sale of products and equipment, which includes our software and SaaS product offerings and equipment rentals. Service sales include revenues from extended warranties, post-contract customer support (“PCS”), maintenance contracts or services, contract labor to perform ongoing service at a customer location, and services related to previously sold products. 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 $72 million as of April 1, 2022 and $71 million as of December 31, 2021. Contract Costs — We incur and capitalize direct incremental costs to obtain certain contracts, typically sales-related commissions and costs associated with assets used by our customers in certain software arrangements. Deferred sales-related commissions are not capitalized when the amortization period is one year or less, as we elected to use the practical expedient to expense these sales commissions as incurred. As of April 1, 2022 and December 31, 2021, we had $30 million and $27 million, respectively, in net revenue-related contract assets primarily related to certain software contracts. Revenue-related contract assets are recorded in the Prepaid expenses and other current assets and Other assets line items in our Consolidated Condensed Balance Sheets. These assets have estimated useful lives between 3 and 8 years. Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to PCS and extended warranty sales, where in most cases we receive up-front payment and recognize revenue over the support term. The noncurrent portion of deferred revenue is included in Other long-term liabilities in the Consolidated Condensed Balance Sheets. Our contract liabilities consisted of the following ($ in millions): April 1, 2022 December 31, 2021 Deferred revenue - current $ 491.4 $ 457.6 Deferred revenue - noncurrent 35.8 33.8 Total contract liabilities $ 527.2 $ 491.4 During the three month period ended April 1, 2022, we recognized revenue related to our contract liabilities at December 31, 2021 of $154 million. The change in our contract liabilities from December 31, 2021 to April 1, 2022 was primarily due to the timing of billings and recognition as revenue of PCS and extended warranty services. Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, noncancelable orders and the average contract value for software contracts, for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below. The aggregate performance obligations attributable to each of our segments is as follows ($ in millions): April 1, 2022 Intelligent Operating Solutions $ 595.3 Precision Technologies 52.1 Advanced Healthcare Solutions 80.2 Total remaining performance obligations $ 727.6 The majority of remaining performance obligations are related to service and support contracts, which we expect to fulfill approximately 80 percent within the next two years, approximately 90 percent within the next three years, and substantially all within four years. Disaggregation of Revenue We disaggregate revenue from contracts with customers by sales of products and software and services, geographic location, 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 month period ended April 1, 2022 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 1,152.7 $ 500.5 $ 410.6 $ 241.6 Sales of services 223.8 87.1 51.8 84.9 Total $ 1,376.5 $ 587.6 $ 462.4 $ 326.5 Geographic: United States $ 739.9 $ 321.9 $ 234.0 $ 184.0 China 145.4 47.9 69.3 28.2 All other (each country individually less than 5% of total sales) 491.2 217.8 159.1 114.3 Total $ 1,376.5 $ 587.6 $ 462.4 $ 326.5 End markets: (a) Direct sales: Medical $ 353.3 $ 10.3 $ 37.1 $ 305.9 Industrial & Manufacturing 321.9 211.1 103.7 7.1 Utilities & Power 86.3 43.0 43.3 — Government 105.7 51.6 44.7 9.4 Communication, Electronics & Semiconductor 87.8 23.8 63.4 0.6 Aerospace & Defense 55.4 0.1 55.3 — Oil & Gas 64.8 62.3 2.5 — Retail & Consumer 81.2 63.7 17.5 — Other 153.9 87.5 66.3 0.1 Total direct sales 1,310.3 553.4 433.8 323.1 Distributors 66.2 34.2 28.6 3.4 Total $ 1,376.5 $ 587.6 $ 462.4 $ 326.5 (a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer. Disaggregation of revenue for the three month period ended April 2, 2021 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 1,077.2 $ 453.0 $ 393.1 $ 231.1 Sales of services 182 57.9 54.3 69.8 Total $ 1,259.2 $ 510.9 $ 447.4 $ 300.9 Geographic: United States $ 620.8 $ 248.2 $ 219.1 $ 153.5 China 164.3 59.5 76.8 28.0 All other (each country individually less than 5% of total sales) 474.1 203.2 151.5 119.4 Total $ 1,259.2 $ 510.9 $ 447.4 $ 300.9 End markets: (a) Direct sales: Medical $ 326.8 $ 9.4 $ 35.0 $ 282.4 Industrial & Manufacturing 302.3 196.5 100.0 5.8 Utilities & Power 94.9 54.3 40.6 — Government 87.9 44.8 34.4 8.7 Communications, Electronics & Semiconductor 87.8 27.5 59.6 0.7 Aerospace & Defense 55.4 — 55.4 — Oil & Gas 63.3 60.5 2.8 — Retail & Consumer 45.5 23.5 22.0 — Other 124.9 56.1 68.8 — Total direct sales 1,188.8 472.6 418.6 297.6 Distributors 70.4 38.3 28.8 3.3 Total $ 1,259.2 $ 510.9 $ 447.4 $ 300.9 (a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 01, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 7. INCOME TAXES Our effective tax rate for the three month period ended April 1, 2022 was 13.5% as compared to 5.9% for the three month period ended April 2, 2021. The year-over-year increase in the effective tax rate for the three month period ended April 1, 2022 as compared to the three month period ended April 2, 2021 was primarily due to a non-recurring permanent difference on the Q1 2021 gain on our Retained Vontier Shares due to the tax-free treatment of our disposition of the shares through the Debt-for-Equity Exchange and increases in certain federal tax benefits during the three months ended April 1, 2022. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Apr. 01, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 8. 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 April 1, 2022, approximately 17 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 17 of our 2021 Annual Report on Form 10-K. Stock-based Compensation Expense Stock-based compensation has been recognized as a component of Selling, general and administrative expenses in the 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 April 1, 2022 April 2, 2021 Stock Awards: Pretax compensation expense $ 12.7 $ 10.5 Income tax benefit (1.7) (1.9) Stock Award expense, net of income taxes 11.0 8.6 Stock options: Pretax compensation expense 7.2 6.1 Income tax benefit (1.0) (1.2) Stock option expense, net of income taxes 6.2 4.9 Total stock-based compensation: Pretax compensation expense 19.9 16.6 Income tax benefit (2.7) (3.1) Total stock-based compensation expense, net of income taxes $ 17.2 $ 13.5 The following summarizes the unrecognized compensation cost for the Stock Plan awards as of April 1, 2022. 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 $ 125.1 Stock options 72.1 Total unrecognized compensation cost $ 197.2 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 01, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9. COMMITMENTS AND CONTINGENCIES For a description of our litigation and contingencies and additional information about our leases, refer to Note 16 and Note 10, respectively, in our 2021 Annual Report on Form 10-K. Warranty 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, 2021 $ 25.2 Accruals for warranties issued during the period 2.3 Settlements made (4.3) Balance, April 1, 2022 $ 23.2 Leases |
Net Earnings Per Share
Net Earnings Per Share | 3 Months Ended |
Apr. 01, 2022 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | NOTE 10. NET EARNINGS PER SHARE Basic net 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 conversion of Convertible Notes and associated issuance of shares under the if-converted method and 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. Anti-dilutive options excluded from the diluted EPS calculation for the three month periods ended April 1, 2022 and April 2, 2021 were 3.1 million and 0.1 million, respectively. As described in Note 5, upon conversion of the Convertible Notes, holders were entitled to receive cash, shares of our common stock, or a combination thereof, at our election. As described in Note 1, prior to our adoption of ASU 2020-06 on January 1, 2022, we accounted for the conversion feature under the treasury stock method in our calculation of EPS since we intended and had the ability to settle such conversions through cash up to the principal amount of the Convertible Notes and, if applicable, through shares of our common stock for conversion value, if any, in excess of the principal amount of the Convertible Notes. Because the fair value of our common stock was below the conversion price, the Convertible Notes had no impact on our earnings per share for the three month period ended April 2, 2021. Upon adopting ASU 2020-06 on January 1, 2022, we accounted for the Convertible Notes under the if-converted method in our calculation of diluted EPS, as required under the new guidance. On July 1, 2021, all outstanding shares of our 5.0% Mandatory Convertible Preferred Stock (“MCPS”) converted at a rate of 14.0978 common shares per share of preferred stock into an aggregate of approximately 19.4 million shares (net of fractional shares) of the Company’s common stock, pursuant to the terms of the Certificate of Designation governing the Series A Preferred Stock. Fortive issued cash in lieu of fractional shares of common stock in the conversion. These payments were recorded as a reduction to additional paid-in capital. The impact of the MCPS calculated under the if-converted method was anti-dilutive for the three months ended April 2, 2021. 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 April 1, 2022 April 2, 2021 Numerator Net earnings from continuing operations $ 165.1 $ 111.7 Mandatory convertible preferred stock cumulative dividends — (17.3) Convertible note interest add-back (if converted method) 1.8 $ — Diluted Net Earnings from Continuing Operations $ 166.9 $ 94.4 Denominator Weighted average common shares outstanding used in basic earnings per share 359.3 338.6 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive Stock Awards 2.7 3.1 Conversion of convertible notes (if converted method) 6.4 — Weighted average common shares outstanding used in diluted earnings per share 368.4 341.7 Net earnings from continuing operations per common share - Basic $ 0.46 $ 0.28 Net earnings from continuing operations per common share - Diluted $ 0.45 $ 0.28 We declared and paid cash dividends per common share for the periods as presented below. We declared and paid the MCPS dividend in the first quarter of 2021. Dividend Per Amount Dividend per MCPS Amount 2022: First quarter $ 0.07 $ 25.1 $ — $ — Total $ 0.07 $ 25.1 $ — $ — 2021: First quarter $ 0.07 $ 23.7 $ 12.5 $ 17.3 Total $ 0.07 $ 23.7 $ 12.5 $ 17.3 * The sum of the components of total dividends paid may not equal the total amount due to rounding. On April 7, 2022, we declared a regular quarterly cash dividend of $0.07 per share payable on June 24, 2022 to common stockholders of record on May 27, 2022. Share Repurchase Program |
Segment Information
Segment Information | 3 Months Ended |
Apr. 01, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 11. SEGMENT INFORMATION We report our results in three separate business segments consisting of Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions. Our chief operating decision maker assesses performance and allocates resources based on our operating segments, which are also our reportable segments. Operating profit amounts in the Other category consist of unallocated corporate costs and other costs not considered part of our evaluation of reportable segment operating performance. Our segment results are as follows ($ in millions): Three Months Ended April 1, 2022 April 2, 2021 Sales: Intelligent Operating Solutions $ 587.6 $ 510.9 Precision Technologies 462.4 447.4 Advanced Healthcare Solutions 326.5 300.9 Total $ 1,376.5 $ 1,259.2 Operating Profit: Intelligent Operating Solutions $ 107.0 $ 108.1 Precision Technologies 101.4 95.9 Advanced Healthcare Solutions 28.0 18.9 Other (24.1) (25.3) Total Operating Profit 212.3 197.6 Interest expense, net (18.8) (27.7) Loss on extinguishment of debt — (104.9) Gain on investment in Vontier Corporation — 57.0 Other non-operating expense, net (2.7) (3.3) Earnings from continuing operations before income taxes $ 190.8 $ 118.7 |
Business Overview (Policies)
Business Overview (Policies) | 3 Months Ended |
Apr. 01, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 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. |
Allowances for Doubtful Accounts | Allowances for Doubtful Accounts All trade accounts and unbilled receivables are reported in the Consolidated Condensed Balance Sheet adjusted for any write-offs and net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from our unbilled and trade accounts receivable portfolios over the life of the underlying assets. Additions to the allowances are charged to current period earnings, amounts determined to be uncollectible are charged directly against the allowances, while amounts recovered on previously written-off accounts increase the allowances. The following is a rollforward of the aggregated allowance for credit losses related to our trade accounts receivables as of April 1, 2022 ($ in millions): Balance, December 31, 2021 $ 39.7 Provision 3.4 Write-offs (3.6) Foreign currency exchange and other (0.1) Balance, April 1, 2022 $ 39.4 The allowance for unbilled receivables was immaterial for all periods presented. |
Recently Issued Accounting Standard | Recently Issued Accounting Standard In August 2020, the Financial Accounting Standards Board issued Accounting Standards Update No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which amends the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. On January 1, 2022, we adopted ASU 2020-06 using a modified retrospective approach and recognized in our balance sheet, as of January 1, 2022, a net of tax adjustment to reduce Additional Paid-in Capital by $65.7 million and increase debt by $3.7 million, with a corresponding net of tax adjustment to beginning retained earnings of $62.8 million. These adjustments are related to our 0.875% Convertible Senior Notes (the “Convertible Notes”), which were the only outstanding instruments impacted by the new standard at the time of adoption. Results for reporting periods beginning January 1, 2022 reflect the adoption of ASU 2020-06, while prior period amounts were not adjusted and continue to be reported in accordance with our historical accounting practices. Prior to our adoption of ASU 2020-06 on January 1, 2022, we recognized the fair value of the nonconvertible debt component of our Convertible Notes subject to the cash conversion guidance as debt and attributed the residual value to the conversion feature which was recognized in APIC. Subsequent to the issuance of our Convertible Notes in February 2019, we accreted the debt discount as non-cash interest expense in our Statements of Earnings. Further, we applied the treasury stock method to our Convertible Notes when calculating earnings per share (“EPS”) in all periods prior to our adoption of ASU 2020-06. After our adoption of ASU 2020-06, we account for convertible debt instruments wholly as debt, unless a convertible instrument contains features that require bifurcation as a derivative under ASC 815 or a convertible debt instrument is issued at a substantial premium. On January 1, 2022, we reclassified the unamortized cost basis of our outstanding Convertible Notes wholly as debt, which subsequently matured and was settled on February 15, 2022. We applied the if-converted method to all convertible instruments when calculating EPS for the three months ended April 1, 2022. As of April 1, 2022, we had no convertible instruments outstanding subject to the guidance in ASU 2020-06. |
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) for identical assets or liabilities in active markets. • 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. |
Sales | We derive revenue primarily from the sale of products and software, 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, software, or services. Product sales include revenue from the sale of products and equipment, which includes our software and SaaS product offerings and equipment rentals. Service sales include revenues from extended warranties, post-contract customer support (“PCS”), maintenance contracts or services, contract labor to perform ongoing service at a customer location, and services related to previously sold products. 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 $72 million as of April 1, 2022 and $71 million as of December 31, 2021. Contract Costs — We incur and capitalize direct incremental costs to obtain certain contracts, typically sales-related commissions and costs associated with assets used by our customers in certain software arrangements. Deferred sales-related commissions are not capitalized when the amortization period is one year or less, as we elected to use the practical expedient to expense these sales commissions as incurred. As of April 1, 2022 and December 31, 2021, we had $30 million and $27 million, respectively, in net revenue-related contract assets primarily related to certain software contracts. Revenue-related contract assets are recorded in the Prepaid expenses and other current assets and Other assets line items in our Consolidated Condensed Balance Sheets. These assets have estimated useful lives between 3 and 8 years. Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to PCS and extended warranty sales, where in most cases we receive up-front payment and recognize revenue over the support term. The noncurrent portion of deferred revenue is included in Other long-term liabilities in the Consolidated Condensed Balance Sheets. Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, noncancelable orders and the average contract value for software contracts, for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below. |
Business Overview (Tables)
Business Overview (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Reclassification of Accumulated Other Comprehensive Income | The changes in Accumulated Other Comprehensive Income (“AOCI”) by component are summarized below ($ in millions): Foreign Pension adjustments (a) Total For the Three Months Ended April 1, 2022: Balance, December 31, 2021 $ (122.7) $ (62.3) $ (185.0) Other comprehensive income (loss) before reclassifications, net of income taxes (39.4) — (39.4) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 0.6 (b) 0.6 Income tax impact — (0.1) (0.1) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.5 0.5 Net current period other comprehensive income (loss), net of income taxes (39.4) 0.5 (38.9) Balance, April 1, 2022 $ (162.1) $ (61.8) $ (223.9) For the Three Months Ended April 2, 2021: Balance, December 31, 2020 $ (54.0) $ (87.1) $ (141.1) Other comprehensive income (loss) before reclassifications, net of income taxes (34.7) — (34.7) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 1.3 (b) 1.3 Income tax impact — (0.3) (0.3) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 1.0 1.0 Net current period other comprehensive income (loss), net of income taxes (34.7) 1.0 (33.7) Balance, April 2, 2021 $ (88.7) $ (86.1) $ (174.8) (a) Includes balances relating to defined benefit plans, supplemental executive retirement plans, and other postretirement employee benefit plans. (b) This component of AOCI is included in the computation of net periodic pension cost (refer to Note 12 in our most recently filed Form 10-K for additional details). |
Schedule of Accounts Receivable, Allowance for Credit Loss | The following is a rollforward of the aggregated allowance for credit losses related to our trade accounts receivables as of April 1, 2022 ($ in millions): Balance, December 31, 2021 $ 39.7 Provision 3.4 Write-offs (3.6) Foreign currency exchange and other (0.1) Balance, April 1, 2022 $ 39.4 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary estimated fair value of the assets acquired and liabilities assumed from ServiceChannel and Provation as of April 1, 2022 ($ in millions): Provation ServiceChannel Total Accounts receivable $ 41.6 $ 10.1 $ 51.7 Goodwill 977.6 872.9 1,850.5 Other intangible assets, primarily customer relationships, technology, database, and trade names 586.5 342.9 929.4 Deferred revenue, current (50.2) (1.7) (51.9) Deferred tax liabilities (119.4) (50.8) (170.2) Other assets and liabilities, net (30.5) (7.5) (38.0) Net cash consideration $ 1,405.6 $ 1,165.9 $ 2,571.5 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following is a rollforward of our carrying value of goodwill by segment ($ in millions): Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Total Goodwill Balance, December 31, 2021 $ 4,126.0 $ 1,840.0 $ 3,186.0 $ 9,152.0 Measurement period adjustments for 2021 acquisitions (0.6) — 9.3 8.7 Foreign currency translation and other (10.9) (13.4) (3.5) (27.8) Balance, April 1, 2022 $ 4,114.5 $ 1,826.6 $ 3,191.8 $ 9,132.9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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 Significant Other Significant Total April 1, 2022 Deferred compensation liabilities $ — $ 35.8 $ — $ 35.8 December 31, 2021 Deferred compensation liabilities — 36.0 — 36.0 |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amount and fair value of financial instruments are as follows ($ in millions): April 1, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Current portion of long-term debt $ 999.8 $ 1,000.0 $ 2,151.7 $ 2,158.3 Long-term debt, net of current maturities $ 2,738.9 $ 2,767.9 $ 1,807.3 $ 1,978.9 |
Financing and Capital (Tables)
Financing and Capital (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The carrying value of the components of our long-term debt were as follows ($ in millions): April 1, 2022 December 31, 2021 U.S. dollar-denominated commercial paper $ 1,296.2 $ 364.9 Delayed-Draw Term Loan due 2022 999.8 999.7 3.15% senior unsecured notes due 2026 895.4 895.1 4.30% senior unsecured notes due 2046 547.3 547.3 0.875% senior convertible notes due 2022 — 1,152.0 Long-term debt 3,738.7 3,959.0 Less: current portion of long-term debt 999.8 2,151.7 Long-term debt, net of current maturities $ 2,738.9 $ 1,807.3 |
Schedule of Outstanding Paper Programs | The details of our outstanding Commercial Paper Programs as of April 1, 2022 were as follows ($ in millions): Carrying value Annual effective rate Weighted average remaining maturity (in days) U.S. dollar-denominated commercial paper $ 1,296.2 0.91 % 39 |
Sales (Tables)
Sales (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Liabilities | Our contract liabilities consisted of the following ($ in millions): April 1, 2022 December 31, 2021 Deferred revenue - current $ 491.4 $ 457.6 Deferred revenue - noncurrent 35.8 33.8 Total contract liabilities $ 527.2 $ 491.4 |
Schedule of Remaining Performance Obligations | The aggregate performance obligations attributable to each of our segments is as follows ($ in millions): April 1, 2022 Intelligent Operating Solutions $ 595.3 Precision Technologies 52.1 Advanced Healthcare Solutions 80.2 Total remaining performance obligations $ 727.6 |
Schedule of Disaggregation of Revenue | Disaggregation of revenue for the three month period ended April 1, 2022 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 1,152.7 $ 500.5 $ 410.6 $ 241.6 Sales of services 223.8 87.1 51.8 84.9 Total $ 1,376.5 $ 587.6 $ 462.4 $ 326.5 Geographic: United States $ 739.9 $ 321.9 $ 234.0 $ 184.0 China 145.4 47.9 69.3 28.2 All other (each country individually less than 5% of total sales) 491.2 217.8 159.1 114.3 Total $ 1,376.5 $ 587.6 $ 462.4 $ 326.5 End markets: (a) Direct sales: Medical $ 353.3 $ 10.3 $ 37.1 $ 305.9 Industrial & Manufacturing 321.9 211.1 103.7 7.1 Utilities & Power 86.3 43.0 43.3 — Government 105.7 51.6 44.7 9.4 Communication, Electronics & Semiconductor 87.8 23.8 63.4 0.6 Aerospace & Defense 55.4 0.1 55.3 — Oil & Gas 64.8 62.3 2.5 — Retail & Consumer 81.2 63.7 17.5 — Other 153.9 87.5 66.3 0.1 Total direct sales 1,310.3 553.4 433.8 323.1 Distributors 66.2 34.2 28.6 3.4 Total $ 1,376.5 $ 587.6 $ 462.4 $ 326.5 (a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer. Disaggregation of revenue for the three month period ended April 2, 2021 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 1,077.2 $ 453.0 $ 393.1 $ 231.1 Sales of services 182 57.9 54.3 69.8 Total $ 1,259.2 $ 510.9 $ 447.4 $ 300.9 Geographic: United States $ 620.8 $ 248.2 $ 219.1 $ 153.5 China 164.3 59.5 76.8 28.0 All other (each country individually less than 5% of total sales) 474.1 203.2 151.5 119.4 Total $ 1,259.2 $ 510.9 $ 447.4 $ 300.9 End markets: (a) Direct sales: Medical $ 326.8 $ 9.4 $ 35.0 $ 282.4 Industrial & Manufacturing 302.3 196.5 100.0 5.8 Utilities & Power 94.9 54.3 40.6 — Government 87.9 44.8 34.4 8.7 Communications, Electronics & Semiconductor 87.8 27.5 59.6 0.7 Aerospace & Defense 55.4 — 55.4 — Oil & Gas 63.3 60.5 2.8 — Retail & Consumer 45.5 23.5 22.0 — Other 124.9 56.1 68.8 — Total direct sales 1,188.8 472.6 418.6 297.6 Distributors 70.4 38.3 28.8 3.3 Total $ 1,259.2 $ 510.9 $ 447.4 $ 300.9 (a) Direct sales by end market include sales made through third-party distributors where we have visibility into the end customer. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Share-based Payment Arrangement [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 April 1, 2022 April 2, 2021 Stock Awards: Pretax compensation expense $ 12.7 $ 10.5 Income tax benefit (1.7) (1.9) Stock Award expense, net of income taxes 11.0 8.6 Stock options: Pretax compensation expense 7.2 6.1 Income tax benefit (1.0) (1.2) Stock option expense, net of income taxes 6.2 4.9 Total stock-based compensation: Pretax compensation expense 19.9 16.6 Income tax benefit (2.7) (3.1) Total stock-based compensation expense, net of income taxes $ 17.2 $ 13.5 |
Schedule of Future Compensation | Future compensation amounts will be adjusted for any changes in estimated forfeitures ($ in millions): Stock Awards $ 125.1 Stock options 72.1 Total unrecognized compensation cost $ 197.2 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
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, 2021 $ 25.2 Accruals for warranties issued during the period 2.3 Settlements made (4.3) Balance, April 1, 2022 $ 23.2 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
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 April 1, 2022 April 2, 2021 Numerator Net earnings from continuing operations $ 165.1 $ 111.7 Mandatory convertible preferred stock cumulative dividends — (17.3) Convertible note interest add-back (if converted method) 1.8 $ — Diluted Net Earnings from Continuing Operations $ 166.9 $ 94.4 Denominator Weighted average common shares outstanding used in basic earnings per share 359.3 338.6 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive Stock Awards 2.7 3.1 Conversion of convertible notes (if converted method) 6.4 — Weighted average common shares outstanding used in diluted earnings per share 368.4 341.7 Net earnings from continuing operations per common share - Basic $ 0.46 $ 0.28 Net earnings from continuing operations per common share - Diluted $ 0.45 $ 0.28 |
Schedule of Dividends Declared | We declared and paid cash dividends per common share for the periods as presented below. We declared and paid the MCPS dividend in the first quarter of 2021. Dividend Per Amount Dividend per MCPS Amount 2022: First quarter $ 0.07 $ 25.1 $ — $ — Total $ 0.07 $ 25.1 $ — $ — 2021: First quarter $ 0.07 $ 23.7 $ 12.5 $ 17.3 Total $ 0.07 $ 23.7 $ 12.5 $ 17.3 * The sum of the components of total dividends paid may not equal the total amount due to rounding. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Our segment results are as follows ($ in millions): Three Months Ended April 1, 2022 April 2, 2021 Sales: Intelligent Operating Solutions $ 587.6 $ 510.9 Precision Technologies 462.4 447.4 Advanced Healthcare Solutions 326.5 300.9 Total $ 1,376.5 $ 1,259.2 Operating Profit: Intelligent Operating Solutions $ 107.0 $ 108.1 Precision Technologies 101.4 95.9 Advanced Healthcare Solutions 28.0 18.9 Other (24.1) (25.3) Total Operating Profit 212.3 197.6 Interest expense, net (18.8) (27.7) Loss on extinguishment of debt — (104.9) Gain on investment in Vontier Corporation — 57.0 Other non-operating expense, net (2.7) (3.3) Earnings from continuing operations before income taxes $ 190.8 $ 118.7 |
Business Overview - Narrative (
Business Overview - Narrative (Details) shares in Millions | Jan. 01, 2022USD ($) | Apr. 01, 2022USD ($)countrysegment | Dec. 31, 2021USD ($) | Apr. 02, 2021USD ($) | Jan. 19, 2021USD ($)shares | Dec. 31, 2020USD ($) | Feb. 22, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Number of countries in which entity operates (more than) | country | 50 | ||||||
Principal amount | $ 1,100,000,000 | ||||||
Number of operating segments | segment | 3 | ||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ 9,566,700,000 | $ 9,517,000,000 | |||||
Additional Paid-In Capital | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity, including portion attributable to noncontrolling interest | 3,619,100,000 | 3,670,000,000 | $ 3,563,800,000 | $ 3,554,500,000 | |||
Additional Paid-In Capital | Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity, including portion attributable to noncontrolling interest | (65,700,000) | ||||||
Additional Paid-In Capital | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 Cumulative Effect, Period of Adoption | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ 65,700,000 | ||||||
Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ 6,226,400,000 | 6,023,600,000 | $ 5,616,600,000 | $ 5,547,400,000 | |||
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ 62,800,000 | ||||||
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 Cumulative Effect, Period of Adoption | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ 62,800,000 | ||||||
0.875% senior convertible notes due 2022 | Convertible Debt | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Interest rate, stated percentage | 0.875% | 0.875% | 0.875% | 0.875% | |||
0.875% senior convertible notes due 2022 | Convertible Debt | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 Cumulative Effect, Period of Adoption | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Debt instrument, increase (decrease), net | $ 3,700,000 | ||||||
Vontier | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Investment balance (in shares) | shares | 33.5 | ||||||
Vontier | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Principal amount | $ 1,100,000,000 |
Business Overview - Accumulated
Business Overview - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 9,517 | |
Other comprehensive income (loss) before reclassifications, net of income taxes | (39.4) | $ (34.7) |
Amounts reclassified from accumulated other comprehensive income (loss): | ||
Increase (decrease) | 0.6 | 1.3 |
Income tax impact | (0.1) | (0.3) |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0.5 | 1 |
Total other comprehensive income (loss), net of income taxes | (38.9) | (33.7) |
Ending balance | 9,566.7 | |
Foreign currency translation adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (122.7) | (54) |
Other comprehensive income (loss) before reclassifications, net of income taxes | (39.4) | (34.7) |
Amounts reclassified from accumulated other comprehensive income (loss): | ||
Increase (decrease) | 0 | 0 |
Income tax impact | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0 | 0 |
Total other comprehensive income (loss), net of income taxes | (39.4) | (34.7) |
Ending balance | (162.1) | (88.7) |
Pension adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (62.3) | (87.1) |
Other comprehensive income (loss) before reclassifications, net of income taxes | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss): | ||
Increase (decrease) | 0.6 | 1.3 |
Income tax impact | (0.1) | (0.3) |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0.5 | 1 |
Total other comprehensive income (loss), net of income taxes | 0.5 | 1 |
Ending balance | (61.8) | (86.1) |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (185) | (141.1) |
Amounts reclassified from accumulated other comprehensive income (loss): | ||
Total other comprehensive income (loss), net of income taxes | (38.9) | (33.7) |
Ending balance | $ (223.9) | $ (174.8) |
Business Overview - Allowance f
Business Overview - Allowance for Credit Losses Rollforward (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2022USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 39.7 |
Provision | 3.4 |
Write-offs | (3.6) |
Foreign currency exchange and other | (0.1) |
Ending balance | $ 39.4 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Dec. 27, 2021 | Aug. 24, 2021 | Apr. 01, 2022 | Dec. 31, 2020 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 9,132.9 | $ 9,152 | |||
Increase in goodwill | 8.7 | ||||
Provation | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | $ 1,400 | ||||
Goodwill | $ 978 | 977.6 | |||
Increase in goodwill | 8.1 | ||||
Revenue of prior fiscal year | $ 90 | ||||
ServiceChannel | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | $ 1,200 | ||||
Goodwill | 873 | 872.9 | |||
Revenue of prior fiscal year | $ 70 | ||||
Deferred compensation consideration | $ 28 | ||||
Provation and Service Channel Acquisition | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 1,850.5 | ||||
Revenue of acquiree since acquisition date | 67.3 | ||||
Operating loss of acquiree since acquisition date | 23.4 | ||||
Amortization of intangibles and integration and transaction costs attributable to acquiree | 19.5 | ||||
Transaction-related costs | $ 20.4 |
Acquisitions - Recognized Ident
Acquisitions - Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Dec. 31, 2021 | Dec. 27, 2021 | Aug. 24, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 9,132.9 | $ 9,152 | ||
Provation and Service Channel Acquisition | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | 51.7 | |||
Goodwill | 1,850.5 | |||
Other intangible assets, primarily customer relationships, technology, database, and trade names | 929.4 | |||
Deferred revenue, current | (51.9) | |||
Deferred tax liabilities | (170.2) | |||
Other assets and liabilities, net | (38) | |||
Net cash consideration | 2,571.5 | |||
Provation | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | 41.6 | |||
Goodwill | 977.6 | $ 978 | ||
Other intangible assets, primarily customer relationships, technology, database, and trade names | 586.5 | |||
Deferred revenue, current | (50.2) | |||
Deferred tax liabilities | (119.4) | |||
Other assets and liabilities, net | (30.5) | |||
Net cash consideration | 1,405.6 | |||
ServiceChannel | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | 10.1 | |||
Goodwill | 872.9 | $ 873 | ||
Other intangible assets, primarily customer relationships, technology, database, and trade names | 342.9 | |||
Deferred revenue, current | (1.7) | |||
Deferred tax liabilities | (50.8) | |||
Other assets and liabilities, net | (7.5) | |||
Net cash consideration | $ 1,165.9 |
Goodwill - Rollforward of Goodw
Goodwill - Rollforward of Goodwill (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2022USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 9,152 |
Measurement period adjustments for 2021 acquisitions | 8.7 |
Foreign currency translation and other | (27.8) |
Ending balance | 9,132.9 |
Intelligent Operating Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 4,126 |
Measurement period adjustments for 2021 acquisitions | (0.6) |
Foreign currency translation and other | (10.9) |
Ending balance | 4,114.5 |
Precision Technologies | |
Goodwill [Roll Forward] | |
Beginning balance | 1,840 |
Measurement period adjustments for 2021 acquisitions | 0 |
Foreign currency translation and other | (13.4) |
Ending balance | 1,826.6 |
Advanced Healthcare Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 3,186 |
Measurement period adjustments for 2021 acquisitions | 9.3 |
Foreign currency translation and other | (3.5) |
Ending balance | $ 3,191.8 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Apr. 01, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liabilities | $ 35.8 | $ 36 |
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 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liabilities | 35.8 | 36 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liabilities | $ 0 | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current portion of long-term debt, carrying amount | $ 999.8 | $ 2,151.7 |
Long-term debt, net of current maturities, carrying value | 2,738.9 | 1,807.3 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current portion of long-term debt, carrying amount | 2,151.7 | |
Current portion of long-term debt, fair value | 1,000 | 2,158.3 |
Long-term debt, net of current maturities, carrying value | 1,807.3 | |
Long-term debt, net of current maturities, fair value | $ 2,767.9 | $ 1,978.9 |
Financing and Capital - Compone
Financing and Capital - Components of Debt (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | Apr. 02, 2021 | Feb. 22, 2019 |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 3,738.7 | $ 3,959 | |||
Less: current portion of long-term debt | 999.8 | 2,151.7 | |||
Long-term debt, net of current maturities | 2,738.9 | 1,807.3 | |||
Delayed-Draw Term Loan due 2022 | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 999.8 | 999.7 | |||
Commercial Paper | U.S. dollar-denominated commercial paper | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 1,296.2 | 364.9 | |||
Convertible and Registered Notes | 3.15% senior unsecured notes due 2026 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 895.4 | 895.1 | |||
Interest rate, stated percentage | 3.15% | ||||
Convertible and Registered Notes | 4.30% senior unsecured notes due 2046 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 547.3 | 547.3 | |||
Interest rate, stated percentage | 4.30% | ||||
Convertible Debt | 0.875% senior convertible notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 0 | $ 1,152 | $ 1,300 | ||
Interest rate, stated percentage | 0.875% | 0.875% | 0.875% | 0.875% |
Financing and Capital - Narrati
Financing and Capital - Narrative (Details) - USD ($) shares in Millions | Feb. 15, 2022 | Feb. 09, 2021 | Feb. 22, 2019 | Apr. 01, 2022 | Apr. 02, 2021 | Jan. 01, 2022 | Dec. 31, 2021 | Jan. 19, 2021 |
Debt Instrument [Line Items] | ||||||||
Debt discounts, premiums and issuance costs | $ 8,000,000 | $ 13,000,000 | ||||||
Principal amount | $ 1,100,000,000 | |||||||
Long-term Debt | 3,738,700,000 | 3,959,000,000 | ||||||
Loss on extinguishment of debt | 0 | $ 104,900,000 | ||||||
Repayments of convertible debt | 1,156,500,000 | 0 | ||||||
Interest expense | $ 18,800,000 | 27,700,000 | ||||||
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt term | 5 years | |||||||
Long-term debt | $ 2,000,000,000 | |||||||
Outstanding borrowings | 0 | |||||||
Vontier | ||||||||
Debt Instrument [Line Items] | ||||||||
Investment balance (in shares) | 33.5 | |||||||
Gain on investment in Vontier Corporation | 57,000,000 | |||||||
Term Loan due March 2021 | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Loss on extinguishment of debt | 94,400,000 | |||||||
Additional Paid-In Capital | ||||||||
Debt Instrument [Line Items] | ||||||||
Reduction in additional paid in capital | $ 11,600,000 | $ (11,600,000) | ||||||
Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Loss on extinguishment of debt | 10,500,000 | |||||||
Interest expense | $ 2,100,000 | |||||||
Convertible Debt | 0.875% senior convertible notes due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from the issuance of convertible notes | $ 1,400,000,000 | |||||||
Interest rate, stated percentage | 0.875% | 0.875% | 0.875% | 0.875% | ||||
Long-term Debt | $ 1,300,000,000 | $ 0 | $ 1,152,000,000 | |||||
Discount at issuance | $ 102,200,000 | |||||||
Effective interest rate | 3.38% | |||||||
Debt issuance costs | $ 24,300,000 | |||||||
Debt instrument, repurchased face amount | $ 281,000,000 | |||||||
Repayments of convertible debt | $ 1,200,000,000 | |||||||
Interest expense | $ 12,200,000 | |||||||
Interest expense, debt | 1,300,000 | 2,800,000 | ||||||
Amortization of debt issuance costs | $ 800,000 | 1,700,000 | ||||||
Amortization of debt discount | $ 7,700,000 | |||||||
Convertible Debt | Senior Unsecured Notes due 2022, Over-Allotment Option | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 187,500,000 |
Financing and Capital - Outstan
Financing and Capital - Outstanding Paper Programs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Dec. 31, 2021 | |
Short-term Debt [Line Items] | ||
Long-term Debt | $ 3,738.7 | $ 3,959 |
U.S. dollar-denominated commercial paper | Commercial Paper | ||
Short-term Debt [Line Items] | ||
Annual effective rate | 0.91% | |
Weighted average remaining maturity (in days) | 39 days | |
Long-term Debt | $ 1,296.2 | $ 364.9 |
Sales - Narrative (Details)
Sales - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Dec. 31, 2021 | |
Capitalized Contract Cost [Line Items] | ||
Contract assets | $ 72 | $ 71 |
Net revenue-related contract assets | 30 | $ 27 |
Contract liabilities, revenue recognized | $ 154 | |
Minimum | ||
Capitalized Contract Cost [Line Items] | ||
Useful life | 3 years | |
Maximum | ||
Capitalized Contract Cost [Line Items] | ||
Useful life | 8 years | |
Maximum | Deferred Sales Commissions | ||
Capitalized Contract Cost [Line Items] | ||
Useful life | 1 year |
Sales - Contract liabilities (D
Sales - Contract liabilities (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue - current | $ 491.4 | $ 457.6 |
Deferred revenue - noncurrent | 35.8 | 33.8 |
Total contract liabilities | $ 527.2 | $ 491.4 |
Sales - Revenue, Remaining Perf
Sales - Revenue, Remaining Performance Obligation (Details) $ in Millions | Apr. 01, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 727.6 |
Intelligent Operating Solutions | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 595.3 |
Precision Technologies | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 52.1 |
Advanced Healthcare Solutions | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 80.2 |
Sales - Remaining Performance O
Sales - Remaining Performance Obligation, Expected Timing (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-02 | Apr. 01, 2022 |
Period One | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 80.00% |
Remaining performance obligation, expected timing | 2 years |
Period Two | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 90.00% |
Remaining performance obligation, expected timing | 3 years |
Period Three | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 100.00% |
Remaining performance obligation, expected timing | 4 years |
Sales - Disaggregation of Reven
Sales - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total sales | $ 1,376.5 | $ 1,259.2 |
Medical | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 353.3 | 326.8 |
Industrial & Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 321.9 | 302.3 |
Utilities & Power | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 86.3 | 94.9 |
Government | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 105.7 | 87.9 |
Communication, Electronics & Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 87.8 | 87.8 |
Aerospace & Defense | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 55.4 | 55.4 |
Oil & Gas | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 64.8 | 63.3 |
Retail & Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 81.2 | 45.5 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 153.9 | 124.9 |
Total direct sales | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 1,310.3 | 1,188.8 |
Distributors | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 66.2 | 70.4 |
Operating Segments | Intelligent Operating Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 587.6 | 510.9 |
Operating Segments | Intelligent Operating Solutions | Medical | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 10.3 | 9.4 |
Operating Segments | Intelligent Operating Solutions | Industrial & Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 211.1 | 196.5 |
Operating Segments | Intelligent Operating Solutions | Utilities & Power | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 43 | 54.3 |
Operating Segments | Intelligent Operating Solutions | Government | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 51.6 | 44.8 |
Operating Segments | Intelligent Operating Solutions | Communication, Electronics & Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 23.8 | 27.5 |
Operating Segments | Intelligent Operating Solutions | Aerospace & Defense | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 0.1 | 0 |
Operating Segments | Intelligent Operating Solutions | Oil & Gas | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 62.3 | 60.5 |
Operating Segments | Intelligent Operating Solutions | Retail & Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 63.7 | 23.5 |
Operating Segments | Intelligent Operating Solutions | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 87.5 | 56.1 |
Operating Segments | Intelligent Operating Solutions | Total direct sales | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 553.4 | 472.6 |
Operating Segments | Intelligent Operating Solutions | Distributors | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 34.2 | 38.3 |
Operating Segments | Precision Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 462.4 | 447.4 |
Operating Segments | Precision Technologies | Medical | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 37.1 | 35 |
Operating Segments | Precision Technologies | Industrial & Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 103.7 | 100 |
Operating Segments | Precision Technologies | Utilities & Power | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 43.3 | 40.6 |
Operating Segments | Precision Technologies | Government | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 44.7 | 34.4 |
Operating Segments | Precision Technologies | Communication, Electronics & Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 63.4 | 59.6 |
Operating Segments | Precision Technologies | Aerospace & Defense | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 55.3 | 55.4 |
Operating Segments | Precision Technologies | Oil & Gas | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 2.5 | 2.8 |
Operating Segments | Precision Technologies | Retail & Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 17.5 | 22 |
Operating Segments | Precision Technologies | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 66.3 | 68.8 |
Operating Segments | Precision Technologies | Total direct sales | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 433.8 | 418.6 |
Operating Segments | Precision Technologies | Distributors | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 28.6 | 28.8 |
Operating Segments | Advanced Healthcare Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 326.5 | 300.9 |
Operating Segments | Advanced Healthcare Solutions | Medical | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 305.9 | 282.4 |
Operating Segments | Advanced Healthcare Solutions | Industrial & Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 7.1 | 5.8 |
Operating Segments | Advanced Healthcare Solutions | Utilities & Power | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 0 | 0 |
Operating Segments | Advanced Healthcare Solutions | Government | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 9.4 | 8.7 |
Operating Segments | Advanced Healthcare Solutions | Communication, Electronics & Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 0.6 | 0.7 |
Operating Segments | Advanced Healthcare Solutions | Aerospace & Defense | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 0 | 0 |
Operating Segments | Advanced Healthcare Solutions | Oil & Gas | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 0 | 0 |
Operating Segments | Advanced Healthcare Solutions | Retail & Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 0 | 0 |
Operating Segments | Advanced Healthcare Solutions | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 0.1 | 0 |
Operating Segments | Advanced Healthcare Solutions | Total direct sales | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 323.1 | 297.6 |
Operating Segments | Advanced Healthcare Solutions | Distributors | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 3.4 | 3.3 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 739.9 | 620.8 |
United States | Operating Segments | Intelligent Operating Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 321.9 | 248.2 |
United States | Operating Segments | Precision Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 234 | 219.1 |
United States | Operating Segments | Advanced Healthcare Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 184 | 153.5 |
China | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 145.4 | 164.3 |
China | Operating Segments | Intelligent Operating Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 47.9 | 59.5 |
China | Operating Segments | Precision Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 69.3 | 76.8 |
China | Operating Segments | Advanced Healthcare Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 28.2 | 28 |
All other (each country individually less than 5% of total sales) | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 491.2 | 474.1 |
All other (each country individually less than 5% of total sales) | Operating Segments | Intelligent Operating Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 217.8 | 203.2 |
All other (each country individually less than 5% of total sales) | Operating Segments | Precision Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 159.1 | 151.5 |
All other (each country individually less than 5% of total sales) | Operating Segments | Advanced Healthcare Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 114.3 | 119.4 |
Sales of products and software | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 1,152.7 | 1,077.2 |
Sales of products and software | Operating Segments | Intelligent Operating Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 500.5 | 453 |
Sales of products and software | Operating Segments | Precision Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 410.6 | 393.1 |
Sales of products and software | Operating Segments | Advanced Healthcare Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 241.6 | 231.1 |
Sales of services | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 223.8 | 182 |
Sales of services | Operating Segments | Intelligent Operating Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 87.1 | 57.9 |
Sales of services | Operating Segments | Precision Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 51.8 | 54.3 |
Sales of services | Operating Segments | Advanced Healthcare Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | $ 84.9 | $ 69.8 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 13.50% | 5.90% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) shares in Millions | 3 Months Ended |
Apr. 01, 2022shares | |
Share-based Payment Arrangement [Abstract] | |
Shares of common stock reserved for issuance under the stock plan (in shares) | 17 |
Remaining service period related to the awards | 2 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pretax compensation expense | $ 19.9 | $ 16.6 |
Income tax benefit | (2.7) | (3.1) |
Total stock-based compensation expense | 17.2 | 13.5 |
Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pretax compensation expense | 12.7 | 10.5 |
Income tax benefit | (1.7) | (1.9) |
Total stock-based compensation expense | 11 | 8.6 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pretax compensation expense | 7.2 | 6.1 |
Income tax benefit | (1) | (1.2) |
Total stock-based compensation expense | $ 6.2 | $ 4.9 |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Compensation Cost (Details) $ in Millions | Apr. 01, 2022USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation cost | $ 197.2 |
Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation cost | 125.1 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation cost | $ 72.1 |
Commitments and Contingencies -
Commitments and Contingencies - Rollforward of Accrued Warranty Liability (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2022USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranty period - minimum | 90 days |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning balance | $ 25.2 |
Accruals for warranties issued during the period | 2.3 |
Settlements made | (4.3) |
Ending balance | $ 23.2 |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Operating Leased Assets [Line Items] | ||
Operating lease cost | $ 15 | |
Cash paid for operating leases | 14 | $ 16 |
ROU assets obtained in exchange for operating lease obligations | $ 2 | $ 9 |
Net Earnings Per Share - Narrat
Net Earnings Per Share - Narrative (Details) $ / shares in Units, $ in Millions | Apr. 07, 2022$ / shares | Jul. 01, 2021shares | Apr. 01, 2022USD ($)shares | Apr. 02, 2021shares | Feb. 17, 2022shares |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Preferred stock, dividend rate | 5.00% | ||||
Convertible preferred stock, conversion ratio | 14.0978 | ||||
Number of shares authorized to be repurchased (in shares) | 20,000,000 | ||||
Number of shares authorized to be repurchased | $ | $ 19 | ||||
Subsequent Event | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Quarterly dividend declared on common stock (in dollars per share) | $ / shares | $ 0.07 | ||||
Common Stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Conversion of stock, common stock issued (in shares) | 19,400,000 | ||||
Stock options | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 3,100,000 | 100,000 |
Net Earnings Per Share - Earnin
Net Earnings Per Share - Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Numerator | ||
Net earnings from continuing operations | $ 165.1 | $ 111.7 |
Mandatory convertible preferred stock cumulative dividends | 0 | (17.3) |
Convertible note interest add-back (if converted method) | 1.8 | 0 |
Diluted Net Earnings from Continuing Operations | $ 166.9 | $ 94.4 |
Denominator | ||
Weighted average common shares outstanding used in basic earnings per share (in shares) | 359.3 | 338.6 |
Incremental common shares from: | ||
Assumed exercise of dilutive options and vesting of dilutive stock awards (in shares) | 2.7 | 3.1 |
Conversion of convertible notes (if converted method) (in shares) | 6.4 | 0 |
Weighted average common shares outstanding used in diluted earnings per share (in shares) | 368.4 | 341.7 |
Net earnings from continuing operations per common share - Basic (in dollars per share) | $ 0.46 | $ 0.28 |
Net earnings from continuing operations per common share - Diluted (in dollars per share) | $ 0.45 | $ 0.28 |
Net Earnings Per Share - Divide
Net Earnings Per Share - Dividends Declared and Paid (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Earnings Per Share [Abstract] | ||
Dividend per common share (in dollars per share) | $ 0.07 | $ 0.07 |
Amount, common shares | $ 25.1 | $ 23.7 |
Dividend per MCPS (in dollars per share) | $ 0 | $ 12.5 |
Amount, MCPS | $ 0 | $ 17.3 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Apr. 01, 2022segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Segment Information - Detailed
Segment Information - Detailed Segment Data (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Segment Reporting Information [Line Items] | ||
Total sales | $ 1,376.5 | $ 1,259.2 |
Total Operating Profit | 212.3 | 197.6 |
Interest expense, net | (18.8) | (27.7) |
Loss on extinguishment of debt | 0 | (104.9) |
Gain on investment in Vontier Corporation | 0 | 57 |
Other non-operating expense, net | (2.7) | (3.3) |
Earnings from continuing operations before income taxes | 190.8 | 118.7 |
Operating Segments | Intelligent Operating Solutions | ||
Segment Reporting Information [Line Items] | ||
Total sales | 587.6 | 510.9 |
Total Operating Profit | 107 | 108.1 |
Operating Segments | Precision Technologies | ||
Segment Reporting Information [Line Items] | ||
Total sales | 462.4 | 447.4 |
Total Operating Profit | 101.4 | 95.9 |
Operating Segments | Advanced Healthcare Solutions | ||
Segment Reporting Information [Line Items] | ||
Total sales | 326.5 | 300.9 |
Total Operating Profit | 28 | 18.9 |
Other | ||
Segment Reporting Information [Line Items] | ||
Total Operating Profit | $ (24.1) | $ (25.3) |