Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 29, 2024 | Apr. 19, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 29, 2024 | |
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 $0.01 per share | |
Trading Symbol | FTV | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 352,028,662 | |
Amendment flag | false | |
Document fiscal year focus | 2024 | |
Document fiscal period focus | Q1 | |
Entity central index key | 0001659166 | |
Current fiscal year end date | --12-31 | |
3.700% Notes due 2026 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 3.700% Notes due 2026 | |
Trading Symbol | FTV26A | |
Security Exchange Name | NYSE | |
3.700% Notes due 2029 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 3.700% Notes due 2029 | |
Trading Symbol | FTV29 | |
Security Exchange Name | NYSE |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and equivalents | $ 704.6 | $ 1,888.8 |
Accounts receivable less allowance for doubtful accounts of $33.1 and $39.2, respectively | 962.6 | 960.8 |
Inventories: | ||
Finished goods | 226.6 | 214.1 |
Work in process | 113.9 | 108.9 |
Raw materials | 240.3 | 213.9 |
Inventories | 580.8 | 536.9 |
Prepaid expenses and other current assets | 365.9 | 285.1 |
Total current assets | 2,613.9 | 3,671.6 |
Property, plant and equipment, net of accumulated depreciation of $793.1 and $809.0, respectively | 422.7 | 439.8 |
Other assets | 536.2 | 518.9 |
Goodwill | 10,234.6 | 9,121.7 |
Other intangible assets, net | 3,712.7 | 3,159.8 |
Total assets | 17,520.1 | 16,911.8 |
Current liabilities: | ||
Trade accounts payable | 667.2 | 608.6 |
Accrued expenses and other current liabilities | 1,071.5 | 1,182.7 |
Total current liabilities | 1,738.7 | 1,791.3 |
Other long-term liabilities | 1,356.6 | 1,149 |
Long-term debt | 3,941.7 | 3,646.2 |
Commitments and Contingencies (Note 9) | ||
Equity: | ||
Common stock: $0.01 par value, 2.0 billion shares authorized; 365.3 and 363.7 issued; 352.0 and 350.7 outstanding, respectively | 3.7 | 3.6 |
Additional paid-in capital | 3,906.1 | 3,851.3 |
Treasury shares, at cost | (715.8) | (715.8) |
Retained earnings | 7,685.2 | 7,505.9 |
Accumulated other comprehensive loss | (402.5) | (326.1) |
Total Fortive stockholders’ equity | 10,476.7 | 10,318.9 |
Noncontrolling interests | 6.4 | 6.4 |
Total stockholders’ equity | 10,483.1 | 10,325.3 |
Total liabilities and equity | $ 17,520.1 | $ 16,911.8 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 33.1 | $ 39.2 |
Accumulated depreciation | $ 793.1 | $ 809 |
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) | 365,300,000 | 363,700,000 |
Common stock, shares outstanding (in shares) | 352,000,000 | 350,700,000 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Total sales | $ 1,524.5 | $ 1,460.7 |
Total cost of sales | (620.3) | (612.5) |
Gross profit | 904.2 | 848.2 |
Operating costs: | ||
Selling, general and administrative expenses | (561) | (507.7) |
Research and development expenses | (104.1) | (100.1) |
Gain on sale of property | 63.1 | 0 |
Operating profit | 302.2 | 240.4 |
Non-operating income (expense), net: | ||
Interest expense, net | (44) | (32.1) |
Other non-operating expense, net | (24.2) | (2.5) |
Earnings before income taxes | 234 | 205.8 |
Income taxes | (26.6) | (32.2) |
Net earnings | $ 207.4 | $ 173.6 |
Net earnings per share: | ||
Basic (in dollars per share) | $ 0.59 | $ 0.49 |
Diluted (in dollars per share) | $ 0.58 | $ 0.49 |
Average common stock and common equivalent shares outstanding: | ||
Basic (in shares) | 351.7 | 353.6 |
Diluted (in shares) | 356 | 356.5 |
Sales of products and software | ||
Total sales | $ 1,299.9 | $ 1,236.6 |
Total cost of sales | (492) | (488.1) |
Sales of services | ||
Total sales | 224.6 | 224.1 |
Total cost of sales | $ (128.3) | $ (124.4) |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Other comprehensive income (loss), net of income taxes: | ||
Net earnings | $ 207.4 | $ 173.6 |
Foreign currency translation adjustments | (76.5) | 13.4 |
Pension adjustments | 0.1 | 0 |
Total other comprehensive income (loss), net of income taxes | (76.4) | 13.4 |
Comprehensive income | $ 131 | $ 187 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Changes in Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2022 | 352.9 | ||||||
Beginning balance at Dec. 31, 2022 | $ 3.6 | $ 3,706.3 | $ (442.9) | $ 6,742.1 | $ (325.7) | $ 5.2 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings for the period | $ 173.6 | 173.6 | |||||
Dividends to common shareholders | (24.7) | (24.7) | |||||
Other comprehensive income | $ 13.4 | 13.4 | |||||
Common stock-based award activity (in shares) | 0.8 | ||||||
Common stock-based award activity | 36.3 | ||||||
Shares withheld for taxes (in shares) | (0.2) | ||||||
Shares withheld for taxes | (12.1) | ||||||
Change in noncontrolling interests | 0.6 | ||||||
Ending balance (in shares) at Mar. 31, 2023 | 353.5 | ||||||
Ending balance at Mar. 31, 2023 | $ 3.6 | 3,730.5 | (442.9) | 6,891 | (312.3) | 5.8 | |
Beginning balance (in shares) at Dec. 31, 2023 | 350.7 | 350.7 | |||||
Beginning balance at Dec. 31, 2023 | $ 10,325.3 | $ 3.6 | 3,851.3 | (715.8) | 7,505.9 | (326.1) | 6.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings for the period | 207.4 | 207.4 | |||||
Dividends to common shareholders | (28.1) | (28.1) | |||||
Other comprehensive income | $ (76.4) | (76.4) | |||||
Common stock-based award activity (in shares) | 1.5 | ||||||
Common stock-based award activity | $ 0.1 | 73.2 | |||||
Shares withheld for taxes (in shares) | (0.2) | ||||||
Shares withheld for taxes | (18.4) | ||||||
Ending balance (in shares) at Mar. 29, 2024 | 352 | 352 | |||||
Ending balance at Mar. 29, 2024 | $ 10,483.1 | $ 3.7 | $ 3,906.1 | $ (715.8) | $ 7,685.2 | $ (402.5) | $ 6.4 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net earnings | $ 207.4 | $ 173.6 |
Noncash items: | ||
Amortization | 113.7 | 92.4 |
Depreciation | 23.1 | 20.4 |
Stock-based compensation expense | 28.9 | 26.7 |
Gain on sale of property | (63.1) | 0 |
Change in trade accounts receivable, net | 8.8 | 21.5 |
Change in inventories | (13.1) | (33.6) |
Change in trade accounts payable | 56.1 | (32.3) |
Change in prepaid expenses and other assets | (1.8) | (16.3) |
Change in accrued expenses and other liabilities | (103.3) | (78) |
Net cash provided by operating activities | 256.7 | 174.4 |
Cash flows from investing activities: | ||
Cash paid for acquisitions, net of cash received | (1,721.8) | 0 |
Payments for additions to property, plant and equipment | (26.4) | (24.8) |
Proceeds from sale of property | 10.8 | 0 |
Net cash used in investing activities | (1,737.4) | (24.8) |
Cash flows from financing activities: | ||
Net proceeds from (repayments of) commercial paper borrowings | (426.8) | (159.3) |
Proceeds from borrowings (maturities greater than 90 days), net of issuance costs | 1,736.4 | 0 |
Repayment of borrowings (maturities greater than 90 days) | (1,000) | 0 |
Payment of dividends | (28.1) | (24.7) |
All other financing activities | 25.4 | (3.1) |
Net cash provided by (used in) financing activities | 306.9 | (187.1) |
Effect of exchange rate changes on cash and equivalents | (10.4) | 1.1 |
Net change in cash and equivalents | (1,184.2) | (36.4) |
Beginning balance of cash and equivalents | 1,888.8 | 709.2 |
Ending balance of cash and equivalents | $ 704.6 | $ 672.8 |
BUSINESS OVERVIEW
BUSINESS OVERVIEW | 3 Months Ended |
Mar. 29, 2024 | |
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 (“IOS”), Precision Technologies (“PT”), and Advanced Healthcare Solutions (“AHS”) - 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 unaudited 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, 2023 and the footnotes (“Notes”) thereto included within our 2023 Annual Report on Form 10-K. In our opinion, the accompanying financial statements contain all adjustments, which consist of only normal, recurring accruals necessary to fairly present our financial position, results of operations, comprehensive income, stockholders’ equity, and cash flows for the periods presented. The results of operations for the three months ended March 29, 2024, are not necessarily indicative of the results for the full year. Segment Realignment In January 2024, we realigned Invetech from the AHS segment to the PT segment, as we explored strategic alternatives for certain products and services of Invetech (the “Segment Realignment”). In March 2024, we entered into a non-binding memorandum of understanding with the management of Invetech, pursuant to which we will transfer ownership of certain product lines of Invetech to its current management team. The products and operations of Invetech that we will retain following such transfer of ownership are more closely aligned with the PT segment than the AHS segment. Prior period segment amounts in Note 3, 6, and 11 have been recast to conform to the revised segment presentation. Accumulated Other Comprehensive Loss Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. As of March 29, 2024, our outstanding €500 million Euro-denominated senior unsecured notes due 2026, €700 million Euro-denominated senior unsecured notes due 2029, €275 million Euro-denominated term loan, and ¥14.4 billion Yen-denominated term loan were designated as net investment hedges of our investment in applicable foreign operations. We recognized after-tax foreign currency transaction gains of $8.4 million and losses of $1.7 million during the three-month periods ended March 29, 2024 and March 31, 2023, respectively, on the debt that was deferred in the foreign currency translation component of Accumulated Other Comprehensive Income (Loss) (“AOCI”) as an offset to the foreign currency translation adjustments on our investments in foreign subsidiaries. Any amounts deferred in AOCI will remain until the hedged investment is sold or substantially liquidated. We recorded no ineffectiveness from our net investment hedges during the three-month periods ended March 29, 2024 and March 31, 2023. The changes in AOCI by component are summarized below ($ in millions): Foreign Pension & post-retirement plan benefit adjustments (a) Total For the Three Months Ended March 29, 2024: Balance, December 31,2023 $ (291.7) $ (34.4) $ (326.1) Other comprehensive income (loss) before reclassifications, net of income taxes (76.5) — (76.5) Amounts reclassified from AOCI into income: Increase (decrease) — 0.1 (b) 0.1 Income tax impact — — (c) — Amounts reclassified from AOCI into income, net of income taxes — 0.1 0.1 Net current period other comprehensive income (loss), net of income taxes (76.5) 0.1 (76.4) Balance, March 29, 2024 $ (368.2) $ (34.3) $ (402.5) For the Three Months Ended March 31, 2023: Balance, December 31, 2022 $ (301.4) $ (24.3) $ (325.7) Other comprehensive income (loss) before reclassifications, net of income taxes 13.4 — 13.4 Amounts reclassified from AOCI into income: Increase (decrease) — 0.1 (b) 0.1 Income tax impact — (0.1) (0.1) Amounts reclassified from AOCI into income, net of income taxes — — — Net current period other comprehensive income (loss), net of income taxes 13.4 — 13.4 Balance, March 31, 2023 $ (288.0) $ (24.3) $ (312.3) (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 11 in our most recently filed Form 10-K for additional details). (c) The income tax impact amount was rounded to zero. Allowances for Doubtful Accounts All trade accounts and unbilled receivables are recorded in the Consolidated Condensed Balance Sheets 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. During the three-month periods ending March 29, 2024 and March 31, 2023, the activity was immaterial. Property Sale On March 14, 2024, we sold land and certain office buildings in our PT segment for $90 million, for which we received $20 million in cash proceeds and a $70 million promissory note secured by a letter of credit, with principal due in August and November 2024. The promissory note is recorded within Prepaid expenses and other current assets. During the three-month period ended March 29, 2024, we recorded a gain on sale of property of $63.1 million in the Consolidated Condensed Statements of Earnings. Concurrently, using a portion of the proceeds from the property sale, we entered into an arm’s length transaction with the Fortive Foundation (the “Foundation”), pledging a charitable contribution of $20 million, which had no donor imposed conditions or restrictions. The Foundation, a not-for-profit entity, is a related party due to certain Fortive executives serving as members of the entity’s board of directors. The charitable contribution is recorded within the “Other non-operating expense, net” line in the Consolidated Condensed Statements of Earnings and the liability related to the pledged donation is recorded within Accrued expenses and other current liabilities in the Consolidated Condensed Balance Sheets. Restructuring We initiated a discrete plan in the first quarter of 2023 that was completed during the fourth quarter of 2023. The nature of these activities were broadly consistent throughout our segments and consist primarily of targeted workforce reductions in response to overall macroeconomic and other external conditions. We incurred these costs to position ourselves to provide superior products and services to customers in a cost-efficient manner, while taking into consideration the impact of broad economic uncertainties. During the three-month period ended March 31, 2023, we incurred charges of $17.6 million. These charges are recorded within Cost of sales and Selling, general, and administrative expenses in the Consolidated Condensed Statements of Earnings. Accrued restructuring costs were $13 million and $26 million as of March 29, 2024 and December 31, 2023 and are recorded within Accrued expenses and other current liabilities in the Consolidated Condensed Balance Sheets. Recently Issued Accounting Standard In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280)—Improvements to Reportable Segment Disclosures , which amends the disclosure requirements for reportable segments on the interim and annual basis. This standard is effective for fiscal year ending December 31, 2024 and interim periods within fiscal year ending December 31, 2025, with early adoption permitted. The adoption of the standard will not impact our consolidated financial statements. Upon adoption, we will update the applicable interim and annual disclosures to align with the new standard. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) —Improvements to Income Tax Disclosures |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 29, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | NOTE 2. ACQUISITIONS We continually evaluate potential mergers and acquisitions that align with our business portfolio strategy. 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 when the purchase price for an acquired business exceeds its identifiable assets, net of liabilities. The purchase price for acquired businesses reflect a number of factors, including the future earnings and cash flow potential of the business, the strategic fit and resulting synergies from the complementary portfolio of the acquired business to our existing operations, industry expertise, and market access. The purchase price allocation is provisional and is subject to further adjustments as we finalize the measurement of the acquired tangible and intangible assets and liabilities, as well as the associated income tax considerations. The preliminary fair value of the net assets acquired was based on several estimates and assumptions. As additional information necessary to complete the valuation is obtained and analyzed, we will make appropriate adjustments to purchase price allocations prior to completion of the applicable measurement period, as required and as soon as practicable. During the three-month period ended March 29, 2024, immaterial adjustments were made to the purchase price allocation of prior year acquisitions. 2024 On January 3, 2024, we acquired EA Elektro-Automatik Holding GmbH (“EA”), a leading supplier of high-power electronic test solutions for energy storage, mobility, hydrogen, and renewable energy applications. The acquisition of EA will bolster our innovative portfolio of products and services for engineers with complementary test and measurement solutions enabling the global energy transition. The total consideration paid was approximately $1.72 billion, net of acquired cash. We funded this transaction with financing activities and available cash. We recorded approximately $1.2 billion of goodwill within our PT segment related to the EA acquisition, which is not tax deductible. For the three-month period ended March 29, 2024, we incurred approximately $27 million of pretax transaction-related costs related to the EA acquisition, which were primarily for banking fees, legal fees, and amounts paid to other third-party advisers. These costs were recorded within Selling, general, and administrative expenses in the Consolidated Condensed Statement of Earnings. The following table summarizes the preliminary estimated acquisition date fair values of the assets acquired and liabilities assumed as of March 29, 2024 ($ in millions): Total Accounts receivable $ 21.5 Inventories 35.6 Property, plant and equipment 18.7 Goodwill 1,167.0 Other intangible assets (customer relationships, technology, and trade names) 681.2 Deferred tax liabilities (183.3) Other assets and liabilities, net (22.5) Net cash consideration $ 1,718.2 2023 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Mar. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 3. GOODWILL AND OTHER INTANGIBLE ASSETS The following is a roll forward of our carrying value of goodwill by segment ($ in millions): Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Total Goodwill Balance, December 31, 2023 $ 4,148.9 $ 1,856.5 $ 3,116.3 $ 9,121.7 Measurement period adjustments for prior year acquisitions (0.9) — — (0.9) Attributable to acquisitions — 1,167.0 — 1,167.0 Foreign currency translation and other (10.4) (33.8) (9.0) (53.2) Balance, March 29, 2024 $ 4,137.6 $ 2,989.7 $ 3,107.3 $ 10,234.6 Due to the Segment Realignment, the beginning goodwill balance for PT and AHS have been recast to conform to the revised segment presentation. Refer to Note 1 for further information on the realignment. The increase in the goodwill balance of the PT segment for the three-month period ended March 29, 2024 is a result of the EA acquisition. Refer to Note 2 for more information. The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset ($ in millions): March 29, 2024 December 31, 2023 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangibles: Patents and technology $ 1,275.4 $ (720.0) $ 1,139.6 $ (687.1) Customer relationships and other intangibles 4,038.6 (1,645.1) 3,568.0 (1,573.2) Trademarks and trade names 174.7 (23.8) 117.7 (19.8) Total finite-lived intangibles 5,488.7 (2,388.9) 4,825.3 (2,280.1) Indefinite-lived intangibles: Trademarks and trade names 612.9 — 614.6 — Total intangibles $ 6,101.6 $ (2,388.9) $ 5,439.9 $ (2,280.1) Finite-lived intangible assets are amortized over the shorter of their legal or estimated useful lives. During the three-month period ended March 29, 2024, we acquired finite-lived intangible assets, consisting of customer relationships, developed technology, and trade names, with a weighted average life of approximately 9 years as a result of the EA acquisition. Refer to Note 2 for additional information on the intangible assets acquired. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 29, 2024 | |
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 for assets and liabilities required to be carried at fair value, and provide for certain disclosures related to the valuation methods used within the 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. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement 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 March 29, 2024 Deferred compensation liabilities $ — $ 43.2 $ — $ 43.2 December 31, 2023 Deferred compensation liabilities — 39.9 — 39.9 Certain management employees participate in our nonqualified deferred compensation programs that permit such employees to defer a portion of their compensation, on a pretax basis, until after their termination of employment. All amounts deferred under such plans are unfunded, unsecured obligations and are recorded within Other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets. Participants may choose among alternative earning rates for the amounts they defer, which are primarily based on investment options within our defined contribution plans for the benefit of U.S. employees (except that the earnings rates for amounts contributed unilaterally by the Company are entirely based on changes in the value of Fortive common stock). Changes in the deferred compensation liability under these programs are recognized based on changes in the fair value of the participants’ accounts and are recorded within Selling, general and administrative expenses in the Consolidated Condensed Statements of Earnings. Non-recurring 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 March 29, 2024, and recorded no impairments. Fair Value of Financial Instruments The carrying amount and fair value of financial instruments are as follows ($ in millions): March 29, 2024 December 31, 2023 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt $ 3,941.7 $ 3,835.4 $ 3,646.2 $ 3,539.4 As of March 29, 2024 and December 31, 2023, the current portion of long-term debt and long-term debt, net of current maturities were categorized as Level 1. The fair value of the long-term borrowings 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 and/or our credit ratings subsequent to the borrowing. The fair value of cash and equivalents, trade accounts receivable, net, trade accounts payable, and commercial paper approximates their carrying amount due to the short-term maturities of these instruments. |
FINANCING
FINANCING | 3 Months Ended |
Mar. 29, 2024 | |
Debt Disclosure [Abstract] | |
FINANCING | NOTE 5. FINANCING The components of our debt were as follows ($ in millions): March 29, 2024 December 31, 2023 U.S. dollar-denominated commercial paper $ 820.0 $ 1,251.2 3.7% Euro-denominated senior unsecured notes due 2026 539.5 — 3.7% Euro-denominated senior unsecured notes due 2029 755.3 — Euro Term Loan due 2025 296.7 303.6 Yen Term Loan due 2025 95.1 102.1 3.15% senior unsecured notes due 2026 900.0 900.0 4.30% senior unsecured notes due 2046 550.0 550.0 Delayed-Draw Term Loan due 2024 — 550.0 Long-term debt, principal amounts 3,956.6 3,656.9 Less: aggregate unamortized debt discounts, premiums, and issuance costs 14.9 10.7 Long-term debt, carrying value $ 3,941.7 $ 3,646.2 Refer to Note 10 of our 2023 Annual Report on Form 10-K for further details of our debt financing. Euro-denominated Senior Unsecured Notes Due 2026 and 2029 On February 13, 2024, we completed the registered offering of the following Euro-denominated senior unsecured notes: • €500 million in aggregate principal amount of our 3.7% Euro-denominated senior unsecured notes due 2026 (the “2026 Notes”) issued at 99.928% of their principal amount and bearing interest at 3.7% per annum. The 2026 Notes mature on February 13, 2026 with interest payable in arrears on February 13 of each year, beginning in 2025. • €700 million in aggregate principal amount of our 3.7% Euro-denominated senior unsecured notes due 2029 (the “2029 Notes”) issued at 99.943% of their principal amount and bearing interest at 3.7% per annum. The 2029 Notes mature on August 15, 2029 with interest payable in arrears on August 15 of each year, beginning in 2024. The net proceeds from the offering, after underwriting discounts and commissions and offering expenses, were approximately $1.3 billion based on the currency exchange rates at which the Euro denominated proceeds were converted into U.S. dollars. We used the net proceeds to refinance the $1.0 billion outstanding principal of the Delayed-Draw Term Loan Due 2024, refinance borrowings under the U.S. dollar-denominated commercial paper, and for general corporate purposes. Redemption Provisions and Covenants Applicable to 2026 and 2029 Notes Prior to July 15, 2029 for the 2029 Notes, and prior to maturity for the 2026 Notes, we may redeem the applicable series of notes at our option, in whole or in part, at any time and from time to time, at the applicable make-whole redemption price specified in the indentures. On or after July 15, 2029, we may redeem the 2029 Notes, in whole or in part, at any time and from time to time, at a redemption price equal to 100% of the principal amount of the 2029 Notes being redeemed plus accrued and unpaid interest thereon to, but not including, the redemption date. We may, at our option, redeem the applicable series of notes, in whole but not in part, at a redemption price equal to 100% of the principal amount of such series of notes to be redeemed, together with any accrued and unpaid interest thereon to, but not including, the redemption date, at any time, if as a result of any change in, or amendment to, the laws, regulations, treaties, or rulings of the United States or any political subdivision of or in the United States or any taxing authority thereof or therein affecting taxation, or any change in, or amendment to, the application, official interpretation, administration or enforcement of such laws, regulations, treaties or rulings (including a holding by a court of competent jurisdiction in the United States), which change or amendment is enacted, adopted, announced or become effective, we become or, based upon a written opinion of independent counsel selected by us, will become obligated to pay additional amounts with respect to the applicable series of notes. If a change of control triggering event occurs, we will, in certain circumstances, be required to make an offer to repurchase the notes from each holder at a purchase price equal to 101% of the principal amount of the notes being repurchased, plus accrued and unpaid interest to, but not including the repurchase date. A change of control triggering event is defined as the occurrence of both a change of control and a rating event, each as defined in the indentures. Except in connection with a change of control triggering event, the 2026 Notes and 2029 Notes do not have any credit rating downgrade triggers that would accelerate the maturity of the notes. The 2026 Notes and 2029 Notes contain customary covenants. None of these covenants are considered restrictive to our operations and as of March 29, 2024, we were in compliance with all of our covenants. Delayed-Draw Term Loan due 2024 On January 2, 2024, we drew down an additional $450 million of the Delayed-Draw Term Loan due 2024 as part of the funding for the acquisition of EA, with $1.0 billion outstanding immediately following such additional draw. Refer to Note 2 for additional information regarding the EA acquisition. On February 13, 2024, we used the net proceeds from the 2026 Notes and 2029 Notes to refinance the entire $1.0 billion outstanding principal and accrued interest thereon. Other Liquidity Sources We generally satisfy any short-term liquidity needs that are not met through operating cash flows and available cash primarily through issuances of commercial paper under our U.S. dollar and Euro-denominated commercial paper programs (“Commercial Paper Programs”). Under these programs, we may issue unsecured promissory notes with maturities not exceeding 397 and 183 days, respectively. Interest expense on commercial paper is paid at maturity and is generally based on our credit ratings at the time of issuance and prevailing short-term interest rates. The details of our outstanding Commercial Paper Programs as of March 29, 2024 were as follows ($ in millions): Carrying value (a) Annual effective rate Weighted average maturity (in days) U.S. dollar-denominated commercial paper $ 818.4 5.56 % 28 (a) Net of unamortized debt discount. Credit support for the Commercial Paper Programs is provided by a five-year $2.0 billion senior unsecured revolving credit facility that expires on October 18, 2027 (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 March 29, 2024, no borrowings were outstanding under the Revolving Credit Facility. We classified our borrowings outstanding under the Commercial Paper Programs as Long-term debt in the accompanying Consolidated Condensed Balance Sheets as we had the intent and ability, as supported by availability under the Revolving Credit Facility, to refinance these borrowings for at least one year from the balance sheet date. |
SALES
SALES | 3 Months Ended |
Mar. 29, 2024 | |
Revenue from Contract with Customer [Abstract] | |
SALES | NOTE 6. SALES We derive revenue primarily from the sales of products, including 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 software as a service (“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, services related to previously sold products, and software implementation services. 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 $107 million as of March 29, 2024 and $108 million as of December 31, 2023. Contract assets are recorded within Prepaid expenses and other current assets in our Consolidated Condensed Balance Sheets. Contract Costs — We incur and capitalize incremental costs to obtain certain contracts, typically sales-related commissions where the amortization period is greater than one year and costs associated with assets used by our customers in certain service arrangements. As of March 29, 2024 and December 31, 2023, we had $52 million and $51 million, respectively, in net revenue-related contract costs primarily related to certain software contracts. Revenue-related contract costs are recorded within Other assets in our Consolidated Condensed Balance Sheets. These assets have estimated useful lives between three Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to subscription-based software contracts, PCS and extended warranty sales, where we generally receive up-front payment and recognize revenue over the service or support term. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The current portion of deferred revenue is recorded within Accrued expenses and other current liabilities and the noncurrent portion of deferred revenue is recorded within Other long-term liabilities in our Consolidated Condensed Balance Sheets. Our contract liabilities consisted of the following ($ in millions): March 29, 2024 December 31, 2023 Deferred revenue - current $ 540.1 $ 544.6 Deferred revenue - noncurrent 45.4 45.8 Total contract liabilities $ 585.5 $ 590.4 During the three-month period ended March 29, 2024, we recognized revenue related to our contract liabilities at December 31, 2023 of $196 million. The change in our contract liabilities from December 31, 2023 to March 29, 2024 was primarily due to the timing of billings and revenue recognized for subscription-based software contracts, PCS and extended warranty services. Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, non-cancelable orders and the average contract value for software contracts, for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below. The aggregate remaining performance obligations attributable to each of our segments is as follows ($ in millions): March 29, 2024 Intelligent Operating Solutions $ 565.9 Precision Technologies 75.7 Advanced Healthcare Solutions 70.9 Total remaining performance obligations $ 712.5 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 95 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. Due to the Segment Realignment, prior period segment amounts have been recast to conform to the revised segment presentation. Refer to Note 1 for further information on the realignment. Disaggregation of revenue for the three-month period ended March 29, 2024 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 1,299.9 $ 566.9 $ 500.6 $ 232.4 Sales of services 224.6 98.8 58.4 67.4 Total $ 1,524.5 $ 665.7 $ 559.0 $ 299.8 Geographic: United States $ 789.9 $ 349.5 $ 274.1 $ 166.3 China 176.3 67.1 82.9 26.3 All other (each country individually less than 5% of total sales) 558.3 249.1 202.0 107.2 Total $ 1,524.5 $ 665.7 $ 559.0 $ 299.8 End markets: (a) Direct sales: Healthcare $ 337.2 $ 11.3 $ 43.2 $ 282.7 Industrial & Manufacturing 350.3 242.2 103.5 4.6 Government 126.2 69.5 47.6 9.1 Utilities & Power 101.9 49.2 52.7 — Communications, Electronics & Semiconductor 90.4 27.9 62.5 — Aerospace & Defense 83.4 0.1 83.3 — Retail & Consumer 76.8 61.7 15.1 — Oil & Gas 72.7 69.5 3.2 — Other 188.2 95.9 92.3 — Total direct sales 1,427.1 627.3 503.4 296.4 Distributors 97.4 38.4 55.6 3.4 Total $ 1,524.5 $ 665.7 $ 559.0 $ 299.8 (a) Direct sales by end market include sales made through third-party distributors where we have visibility to the end customer. Disaggregation of revenue for the three-month period ended March 31, 2023 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 1,236.6 $ 537.4 $ 478.3 $ 220.9 Sales of services 224.1 94.7 62.8 66.6 Total $ 1,460.7 $ 632.1 $ 541.1 $ 287.5 Geographic: United States $ 771.5 $ 340.1 $ 270.6 $ 160.8 China 181.4 64.9 92.2 24.3 All other (each country individually less than 5% of total sales) 507.8 227.1 178.3 102.4 Total $ 1,460.7 $ 632.1 $ 541.1 $ 287.5 End markets: (a) Direct sales: Healthcare $ 339.4 $ 10.9 $ 57.0 $ 271.5 Industrial & Manufacturing 353.2 228.3 120.6 4.3 Government 111.1 61.8 40.9 8.4 Utilities & Power 98.9 47.3 51.6 — Communications, Electronics & Semiconductor 105.9 25.6 80.3 — Aerospace & Defense 67.6 0.1 67.5 — Retail & Consumer 82.9 62.3 20.6 — Oil & Gas 70.3 65.9 4.4 — Other 170.1 95.0 75.1 — Total direct sales 1,399.4 597.2 518.0 284.2 Distributors 61.3 34.9 23.1 3.3 Total $ 1,460.7 $ 632.1 $ 541.1 $ 287.5 (a) Direct sales by end market include sales made through third-party distributors where we have visibility to the end customer. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 7. INCOME TAXES Our effective tax rates for the three-month period ended March 29, 2024 were 11.4% as compared to 15.7% for the three-month period ended March 31, 2023. The decrease in the effective tax rate for the three-month period ended March 29, 2024 as compared to the three-month period ended March 31, 2023 was primarily related to cash repatriation, resulting in a discrete tax credit in the three-month period ended March 29, 2024 Our effective tax rates for the three-month period ended March 29, 2024, differ from the U.S. federal statutory rate of 21% due primarily to the impact of credits and deductions provided by law and changes in our uncertain tax position reserves. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 29, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 8. STOCK-BASED COMPENSATION The 2016 Stock Incentive Plan (the “Stock Plan”), provides for the grant of stock appreciation rights, restricted stock units, and performance stock units (collectively, “Stock Awards”), stock options, or any other stock-based award. As of March 29, 2024, approximately 12 million shares of our common stock were available for subsequent issuance under the Stock Plan. For a full description of our Stock Plan, refer to Note 15 of our 2023 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 March 29, 2024 March 31, 2023 Stock Awards: Pretax compensation expense $ 21.5 $ 18.1 Income tax benefit (2.6) (2.6) Stock Award expense, net of income taxes 18.9 15.5 Stock options: Pretax compensation expense 7.4 8.6 Income tax benefit (1.1) (1.2) Stock option expense, net of income taxes 6.3 7.4 Total stock-based compensation: Pretax compensation expense 28.9 26.7 Income tax benefit (3.7) (3.8) Total stock-based compensation expense, net of income taxes $ 25.2 $ 22.9 The following summarizes the unrecognized compensation cost for the Stock Plan awards as of March 29, 2024. 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 $ 64.1 Stock options 162.8 Total unrecognized compensation cost $ 226.9 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 29, 2024 | |
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 14 and Note 9, respectively, in our 2023 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. During the three-month periods ended March 29, 2024 and March 31, 2023, warranty related activity was immaterial. Leases Operating lease costs for the three-month periods ended March 29, 2024 and March 31, 2023 was $13 million and $12 million, respectively. During both the three-month periods ended March 29, 2024 and March 31, 2023, cash paid for operating leases included in operating cash flows was $12 million. Right-of-use (“ROU”) assets obtained in exchange for operating lease obligations were $4 million during both the three-month periods ended March 29, 2024 and March 31, 2023, respectively. Operating lease ROU assets were $170 million and $155 million as of March 29, 2024 and December 31, 2023, respectively. Operating lease liabilities were $177 million and $164 million as of March 29, 2024 and December 31, 2023, respectively. Operating lease ROU assets and operating lease liabilities are recorded in the Consolidated Condensed Balance Sheets within Other assets, Accrued expenses and other current liabilities, and Other long-term liabilities, respectively. Other Matters We discovered that a subsidiary of ours made certain incorrect representations regarding status as a small business concern as defined by the Small Business Act for certain contracts that it was awarded by the Defense Logistics Agency (“DLA”). As a result, on January 26, 2024, we voluntarily notified the Department of Defense Office of Inspector General (“OIG”) and the DLA of this matter. While we are continuing to investigate, we currently do not expect this matter to have a material adverse effect on our financial condition or results of operations. However, resolution of this matter could subject us to fines or penalties, and we cannot provide assurance as to the timing or outcome of such resolution. |
NET EARNINGS PER SHARE
NET EARNINGS PER SHARE | 3 Months Ended |
Mar. 29, 2024 | |
Earnings Per Share [Abstract] | |
NET EARNINGS PER SHARE | NOTE 10. NET EARNINGS PER SHARE Basic net earnings per share (“EPS”) is calculated by dividing net earnings attributable to common stockholders by the weighted average number of shares of common stock outstanding for the applicable period. Diluted EPS is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of shares under stock-based compensation plans under the treasury stock method, except where the inclusion of such shares would have an anti-dilutive impact. Anti-dilutive options excluded from the diluted EPS calculation for the three-month periods ended March 29, 2024 and March 31, 2023 were 1.2 million and 2.9 million, respectively. Information related to the calculation of net earnings per share of common stock is summarized as follows ($ and shares in millions, except per share amounts): Three Months Ended March 29, 2024 March 31, 2023 Numerator Net earnings $ 207.4 $ 173.6 Denominator Weighted average common shares outstanding used in basic earnings per share 351.7 353.6 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive Stock Awards 4.3 2.9 Weighted average common shares outstanding used in diluted earnings per share 356.0 356.5 Net earnings per common share - Basic $ 0.59 $ 0.49 Net earnings per common share - Diluted $ 0.58 $ 0.49 We declared and paid cash dividends per common share for the periods as presented below: Dividend Per Amount 2024: First quarter $ 0.08 $ 28.1 Total $ 0.08 $ 28.1 2023: First quarter $ 0.07 $ 24.7 Total $ 0.07 $ 24.7 Share Repurchase Program On February 17, 2022, the Company's Board of Directors approved a share repurchase program authorizing the Company to repurchase up to 20 million shares of the Company's outstanding common stock from time to time on the open market or in privately negotiated transactions. There is no expiration date for the repurchase program, and the timing and amount of repurchases under the program are determined by the Company's management based on market conditions and other factors. The repurchase program may be suspended or discontinued at any time by the Board of Directors. As of December 31, 2023, there were 9 million shares remaining for repurchase under the program. On January 23, 2024, the Company’s Board of Directors increased the number of shares authorized under the share repurchase program by an additional 11 million shares. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 29, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 11. SEGMENT INFORMATION We report our results in three separate business segments consisting of IOS, PT, and AHS. Our chief operating decision maker (“CODM”) assesses performance and allocates resources based on our operating segments, which are also our reportable segments. Due to the Segment Realignment, prior period segment amounts have been recast to conform to the revised segment presentation. Refer to Note 1 for further information on the realignment. Our IOS segment provides advanced instrumentation, software and services to tens of thousands of customers enabling their mission-critical workflows. These offerings include electrical test & measurement, facility and asset lifecycle software applications, connected worker safety and compliance solutions across a range of vertical end markets, including manufacturing, process industries, healthcare, utilities and power, communications and electronics, among others. Our PT segment helps solve tough technical challenges to speed breakthroughs in a wide range of applications, from food and beverage production and manufacturing to next-generation electric vehicles and clean energy, as our customers seek new test solutions to enable the electrification and connectivity of everything. Our expertise in materials, methods and measurements are reflected in our electrical test & measurement, sensing and material technologies, and cell therapy equipment design and manufacturing offered to a broad set of customers and vertical end markets, including industrial, power and energy, automotive, medical equipment, food and beverage, aerospace and defense, semiconductor, and other general industries. Our AHS segment supplies critical workflow solutions enabling healthcare providers to deliver exceptional patient care more efficiently. Our offerings include instrument sterilization solutions, instrument tracking, biomedical test tools, radiation detection and safety monitoring, and end-to-end clinical productivity software and solutions. Our healthcare offerings help ensure critical safety standards are met, instruments and operating rooms are working at peak performance, and complex procedures are followed accurately in these mission-critical healthcare environments. Our segment results are as follows ($ in millions): Three Months Ended March 29, 2024 March 31, 2023 Sales: Intelligent Operating Solutions $ 665.7 $ 632.1 Precision Technologies 559.0 541.1 Advanced Healthcare Solutions 299.8 287.5 Total $ 1,524.5 $ 1,460.7 Operating Profit: Intelligent Operating Solutions $ 164.1 $ 133.5 Precision Technologies 149.1 123.6 Advanced Healthcare Solutions 27.5 15.4 Other (38.5) (32.1) Total Operating Profit 302.2 240.4 Interest expense, net (44.0) (32.1) Other non-operating expense, net (24.2) (2.5) Earnings before income taxes $ 234.0 $ 205.8 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net earnings | $ 207.4 | $ 173.6 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 29, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BUSINESS OVERVIEW (Policies)
BUSINESS OVERVIEW (Policies) | 3 Months Ended |
Mar. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Segment Realignment | Segment Realignment |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. As of March 29, 2024, our outstanding €500 million Euro-denominated senior unsecured notes due 2026, €700 million Euro-denominated senior unsecured notes due 2029, €275 million Euro-denominated term loan, and ¥14.4 billion Yen-denominated term loan were designated as net investment hedges of our investment in applicable foreign operations. We recognized after-tax foreign currency transaction gains of $8.4 million and losses of $1.7 million during the three-month periods ended March 29, 2024 and March 31, 2023, respectively, on the debt that was deferred in the foreign currency translation component of Accumulated Other Comprehensive Income (Loss) (“AOCI”) as an offset to the foreign currency translation adjustments on our investments in foreign subsidiaries. Any amounts deferred in AOCI will remain until the hedged investment is sold or substantially liquidated. We recorded no ineffectiveness from our net investment hedges during the three-month periods ended March 29, 2024 and March 31, 2023. |
Allowances for Doubtful Accounts | Allowances for Doubtful Accounts All trade accounts and unbilled receivables are recorded in the Consolidated Condensed Balance Sheets 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. During the three-month periods ending March 29, 2024 and March 31, 2023, the activity was immaterial. |
Restructuring | Restructuring We initiated a discrete plan in the first quarter of 2023 that was completed during the fourth quarter of 2023. The nature of these activities were broadly consistent throughout our segments and consist primarily of targeted workforce reductions in response to overall macroeconomic and other external conditions. We incurred these costs to position ourselves to provide superior products and services to customers in a cost-efficient manner, while taking into consideration the impact of broad economic uncertainties. During the three-month period ended March 31, 2023, we incurred charges of $17.6 million. These charges are recorded within Cost of sales and Selling, general, and administrative expenses in the Consolidated Condensed Statements of Earnings. Accrued restructuring costs were $13 million and $26 million as of March 29, 2024 and December 31, 2023 and are recorded within Accrued expenses and other current liabilities in the Consolidated Condensed Balance Sheets. |
Recently Issued Accounting Standard | Recently Issued Accounting Standard In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280)—Improvements to Reportable Segment Disclosures , which amends the disclosure requirements for reportable segments on the interim and annual basis. This standard is effective for fiscal year ending December 31, 2024 and interim periods within fiscal year ending December 31, 2025, with early adoption permitted. The adoption of the standard will not impact our consolidated financial statements. Upon adoption, we will update the applicable interim and annual disclosures to align with the new standard. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) —Improvements to Income Tax Disclosures |
Fair Value Measurements | Accounting standards define fair value based on an exit price model, establish a framework for measuring fair value for assets and liabilities required to be carried at fair value, and provide for certain disclosures related to the valuation methods used within the 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. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. |
Sales | We derive revenue primarily from the sales of products, including 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 software as a service (“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, services related to previously sold products, and software implementation services. 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 $107 million as of March 29, 2024 and $108 million as of December 31, 2023. Contract assets are recorded within Prepaid expenses and other current assets in our Consolidated Condensed Balance Sheets. Contract Costs — We incur and capitalize incremental costs to obtain certain contracts, typically sales-related commissions where the amortization period is greater than one year and costs associated with assets used by our customers in certain service arrangements. As of March 29, 2024 and December 31, 2023, we had $52 million and $51 million, respectively, in net revenue-related contract costs primarily related to certain software contracts. Revenue-related contract costs are recorded within Other assets in our Consolidated Condensed Balance Sheets. These assets have estimated useful lives between three Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to subscription-based software contracts, PCS and extended warranty sales, where we generally receive up-front payment and recognize revenue over the service or support term. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The current portion of deferred revenue is recorded within Accrued expenses and other current liabilities and the noncurrent portion of deferred revenue is recorded within Other long-term liabilities in our Consolidated Condensed Balance Sheets. Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, non-cancelable orders and the average contract value for software contracts, for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below. |
BUSINESS OVERVIEW (Tables)
BUSINESS OVERVIEW (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Reclassification of Accumulated Other Comprehensive Income | The changes in AOCI by component are summarized below ($ in millions): Foreign Pension & post-retirement plan benefit adjustments (a) Total For the Three Months Ended March 29, 2024: Balance, December 31,2023 $ (291.7) $ (34.4) $ (326.1) Other comprehensive income (loss) before reclassifications, net of income taxes (76.5) — (76.5) Amounts reclassified from AOCI into income: Increase (decrease) — 0.1 (b) 0.1 Income tax impact — — (c) — Amounts reclassified from AOCI into income, net of income taxes — 0.1 0.1 Net current period other comprehensive income (loss), net of income taxes (76.5) 0.1 (76.4) Balance, March 29, 2024 $ (368.2) $ (34.3) $ (402.5) For the Three Months Ended March 31, 2023: Balance, December 31, 2022 $ (301.4) $ (24.3) $ (325.7) Other comprehensive income (loss) before reclassifications, net of income taxes 13.4 — 13.4 Amounts reclassified from AOCI into income: Increase (decrease) — 0.1 (b) 0.1 Income tax impact — (0.1) (0.1) Amounts reclassified from AOCI into income, net of income taxes — — — Net current period other comprehensive income (loss), net of income taxes 13.4 — 13.4 Balance, March 31, 2023 $ (288.0) $ (24.3) $ (312.3) (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 11 in our most recently filed Form 10-K for additional details). (c) The income tax impact amount was rounded to zero. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Fair Value Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary estimated acquisition date fair values of the assets acquired and liabilities assumed as of March 29, 2024 ($ in millions): Total Accounts receivable $ 21.5 Inventories 35.6 Property, plant and equipment 18.7 Goodwill 1,167.0 Other intangible assets (customer relationships, technology, and trade names) 681.2 Deferred tax liabilities (183.3) Other assets and liabilities, net (22.5) Net cash consideration $ 1,718.2 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following is a roll forward of our carrying value of goodwill by segment ($ in millions): Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Total Goodwill Balance, December 31, 2023 $ 4,148.9 $ 1,856.5 $ 3,116.3 $ 9,121.7 Measurement period adjustments for prior year acquisitions (0.9) — — (0.9) Attributable to acquisitions — 1,167.0 — 1,167.0 Foreign currency translation and other (10.4) (33.8) (9.0) (53.2) Balance, March 29, 2024 $ 4,137.6 $ 2,989.7 $ 3,107.3 $ 10,234.6 |
Schedule of Finite Lived Intangible Assets | The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset ($ in millions): March 29, 2024 December 31, 2023 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangibles: Patents and technology $ 1,275.4 $ (720.0) $ 1,139.6 $ (687.1) Customer relationships and other intangibles 4,038.6 (1,645.1) 3,568.0 (1,573.2) Trademarks and trade names 174.7 (23.8) 117.7 (19.8) Total finite-lived intangibles 5,488.7 (2,388.9) 4,825.3 (2,280.1) Indefinite-lived intangibles: Trademarks and trade names 612.9 — 614.6 — Total intangibles $ 6,101.6 $ (2,388.9) $ 5,439.9 $ (2,280.1) |
Schedule of Indefinite Lived Intangible Assets | The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset ($ in millions): March 29, 2024 December 31, 2023 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangibles: Patents and technology $ 1,275.4 $ (720.0) $ 1,139.6 $ (687.1) Customer relationships and other intangibles 4,038.6 (1,645.1) 3,568.0 (1,573.2) Trademarks and trade names 174.7 (23.8) 117.7 (19.8) Total finite-lived intangibles 5,488.7 (2,388.9) 4,825.3 (2,280.1) Indefinite-lived intangibles: Trademarks and trade names 612.9 — 614.6 — Total intangibles $ 6,101.6 $ (2,388.9) $ 5,439.9 $ (2,280.1) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
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 March 29, 2024 Deferred compensation liabilities $ — $ 43.2 $ — $ 43.2 December 31, 2023 Deferred compensation liabilities — 39.9 — 39.9 |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amount and fair value of financial instruments are as follows ($ in millions): March 29, 2024 December 31, 2023 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt $ 3,941.7 $ 3,835.4 $ 3,646.2 $ 3,539.4 |
FINANCING (Tables)
FINANCING (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Debt | The components of our debt were as follows ($ in millions): March 29, 2024 December 31, 2023 U.S. dollar-denominated commercial paper $ 820.0 $ 1,251.2 3.7% Euro-denominated senior unsecured notes due 2026 539.5 — 3.7% Euro-denominated senior unsecured notes due 2029 755.3 — Euro Term Loan due 2025 296.7 303.6 Yen Term Loan due 2025 95.1 102.1 3.15% senior unsecured notes due 2026 900.0 900.0 4.30% senior unsecured notes due 2046 550.0 550.0 Delayed-Draw Term Loan due 2024 — 550.0 Long-term debt, principal amounts 3,956.6 3,656.9 Less: aggregate unamortized debt discounts, premiums, and issuance costs 14.9 10.7 Long-term debt, carrying value $ 3,941.7 $ 3,646.2 |
Schedule of Short-Term Debt | The details of our outstanding Commercial Paper Programs as of March 29, 2024 were as follows ($ in millions): Carrying value (a) Annual effective rate Weighted average maturity (in days) U.S. dollar-denominated commercial paper $ 818.4 5.56 % 28 (a) Net of unamortized debt discount. |
SALES (Tables)
SALES (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Liabilities | Our contract liabilities consisted of the following ($ in millions): March 29, 2024 December 31, 2023 Deferred revenue - current $ 540.1 $ 544.6 Deferred revenue - noncurrent 45.4 45.8 Total contract liabilities $ 585.5 $ 590.4 |
Schedule of Remaining Performance Obligations | The aggregate remaining performance obligations attributable to each of our segments is as follows ($ in millions): March 29, 2024 Intelligent Operating Solutions $ 565.9 Precision Technologies 75.7 Advanced Healthcare Solutions 70.9 Total remaining performance obligations $ 712.5 |
Schedule of Disaggregation of Revenue | Disaggregation of revenue for the three-month period ended March 29, 2024 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 1,299.9 $ 566.9 $ 500.6 $ 232.4 Sales of services 224.6 98.8 58.4 67.4 Total $ 1,524.5 $ 665.7 $ 559.0 $ 299.8 Geographic: United States $ 789.9 $ 349.5 $ 274.1 $ 166.3 China 176.3 67.1 82.9 26.3 All other (each country individually less than 5% of total sales) 558.3 249.1 202.0 107.2 Total $ 1,524.5 $ 665.7 $ 559.0 $ 299.8 End markets: (a) Direct sales: Healthcare $ 337.2 $ 11.3 $ 43.2 $ 282.7 Industrial & Manufacturing 350.3 242.2 103.5 4.6 Government 126.2 69.5 47.6 9.1 Utilities & Power 101.9 49.2 52.7 — Communications, Electronics & Semiconductor 90.4 27.9 62.5 — Aerospace & Defense 83.4 0.1 83.3 — Retail & Consumer 76.8 61.7 15.1 — Oil & Gas 72.7 69.5 3.2 — Other 188.2 95.9 92.3 — Total direct sales 1,427.1 627.3 503.4 296.4 Distributors 97.4 38.4 55.6 3.4 Total $ 1,524.5 $ 665.7 $ 559.0 $ 299.8 (a) Direct sales by end market include sales made through third-party distributors where we have visibility to the end customer. Disaggregation of revenue for the three-month period ended March 31, 2023 is presented as follows ($ in millions): Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Sales: Sales of products and software $ 1,236.6 $ 537.4 $ 478.3 $ 220.9 Sales of services 224.1 94.7 62.8 66.6 Total $ 1,460.7 $ 632.1 $ 541.1 $ 287.5 Geographic: United States $ 771.5 $ 340.1 $ 270.6 $ 160.8 China 181.4 64.9 92.2 24.3 All other (each country individually less than 5% of total sales) 507.8 227.1 178.3 102.4 Total $ 1,460.7 $ 632.1 $ 541.1 $ 287.5 End markets: (a) Direct sales: Healthcare $ 339.4 $ 10.9 $ 57.0 $ 271.5 Industrial & Manufacturing 353.2 228.3 120.6 4.3 Government 111.1 61.8 40.9 8.4 Utilities & Power 98.9 47.3 51.6 — Communications, Electronics & Semiconductor 105.9 25.6 80.3 — Aerospace & Defense 67.6 0.1 67.5 — Retail & Consumer 82.9 62.3 20.6 — Oil & Gas 70.3 65.9 4.4 — Other 170.1 95.0 75.1 — Total direct sales 1,399.4 597.2 518.0 284.2 Distributors 61.3 34.9 23.1 3.3 Total $ 1,460.7 $ 632.1 $ 541.1 $ 287.5 (a) Direct sales by end market include sales made through third-party distributors where we have visibility to the end customer. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
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 March 29, 2024 March 31, 2023 Stock Awards: Pretax compensation expense $ 21.5 $ 18.1 Income tax benefit (2.6) (2.6) Stock Award expense, net of income taxes 18.9 15.5 Stock options: Pretax compensation expense 7.4 8.6 Income tax benefit (1.1) (1.2) Stock option expense, net of income taxes 6.3 7.4 Total stock-based compensation: Pretax compensation expense 28.9 26.7 Income tax benefit (3.7) (3.8) Total stock-based compensation expense, net of income taxes $ 25.2 $ 22.9 |
Schedule of Future Compensation | Future compensation amounts will be adjusted for any changes in estimated forfeitures ($ in millions): Stock Awards $ 64.1 Stock options 162.8 Total unrecognized compensation cost $ 226.9 |
NET EARNINGS PER SHARE (Tables)
NET EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
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 March 29, 2024 March 31, 2023 Numerator Net earnings $ 207.4 $ 173.6 Denominator Weighted average common shares outstanding used in basic earnings per share 351.7 353.6 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive Stock Awards 4.3 2.9 Weighted average common shares outstanding used in diluted earnings per share 356.0 356.5 Net earnings per common share - Basic $ 0.59 $ 0.49 Net earnings per common share - Diluted $ 0.58 $ 0.49 |
Schedule of Dividends Declared | We declared and paid cash dividends per common share for the periods as presented below: Dividend Per Amount 2024: First quarter $ 0.08 $ 28.1 Total $ 0.08 $ 28.1 2023: First quarter $ 0.07 $ 24.7 Total $ 0.07 $ 24.7 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Our segment results are as follows ($ in millions): Three Months Ended March 29, 2024 March 31, 2023 Sales: Intelligent Operating Solutions $ 665.7 $ 632.1 Precision Technologies 559.0 541.1 Advanced Healthcare Solutions 299.8 287.5 Total $ 1,524.5 $ 1,460.7 Operating Profit: Intelligent Operating Solutions $ 164.1 $ 133.5 Precision Technologies 149.1 123.6 Advanced Healthcare Solutions 27.5 15.4 Other (38.5) (32.1) Total Operating Profit 302.2 240.4 Interest expense, net (44.0) (32.1) Other non-operating expense, net (24.2) (2.5) Earnings before income taxes $ 234.0 $ 205.8 |
BUSINESS OVERVIEW - General Nar
BUSINESS OVERVIEW - General Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 29, 2024 USD ($) country | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries in which entity operates (more than) | country | 50 |
Proceeds from pledged charitable contribution | $ | $ 20 |
BUSINESS OVERVIEW - Accumulated
BUSINESS OVERVIEW - Accumulated Other Comprehensive Income Loss Narrative (Details) $ in Millions | 3 Months Ended | |||
Mar. 29, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 29, 2024 EUR (€) | Mar. 29, 2024 JPY (¥) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
After-tax foreign currency transaction gain (loss) from foreign currency translation | $ | $ 8.4 | $ (1.7) | ||
Euro-denominated senior unsecured notes due 2026 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Principal amount | € 500,000,000 | |||
Euro-denominated senior unsecured notes due 2029 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Principal amount | 700,000,000 | |||
Euro Term Loan | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Principal amount | € 275,000,000 | |||
Yen Term Loan | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Principal amount | ¥ | ¥ 14,400,000,000 |
BUSINESS OVERVIEW - Accumulat_2
BUSINESS OVERVIEW - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 10,325.3 | |
Other comprehensive income (loss) before reclassifications, net of income taxes | (76.5) | $ 13.4 |
Amounts reclassified from AOCI into income: | ||
Increase (decrease) | 0.1 | 0.1 |
Income tax impact | 0 | (0.1) |
Amounts reclassified from AOCI into income, net of income taxes | 0.1 | 0 |
Net current period other comprehensive income (loss), net of income taxes | (76.4) | 13.4 |
Ending balance | 10,483.1 | |
Foreign currency translation adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (291.7) | (301.4) |
Other comprehensive income (loss) before reclassifications, net of income taxes | (76.5) | 13.4 |
Amounts reclassified from AOCI into income: | ||
Increase (decrease) | 0 | 0 |
Income tax impact | 0 | 0 |
Amounts reclassified from AOCI into income, net of income taxes | 0 | 0 |
Net current period other comprehensive income (loss), net of income taxes | (76.5) | 13.4 |
Ending balance | (368.2) | (288) |
Pension & post-retirement plan benefit adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (34.4) | (24.3) |
Other comprehensive income (loss) before reclassifications, net of income taxes | 0 | 0 |
Amounts reclassified from AOCI into income: | ||
Increase (decrease) | 0.1 | 0.1 |
Income tax impact | 0 | (0.1) |
Amounts reclassified from AOCI into income, net of income taxes | 0.1 | 0 |
Net current period other comprehensive income (loss), net of income taxes | 0.1 | 0 |
Ending balance | (34.3) | (24.3) |
Accumulated Other Comprehensive Loss | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (326.1) | (325.7) |
Amounts reclassified from AOCI into income: | ||
Net current period other comprehensive income (loss), net of income taxes | (76.4) | 13.4 |
Ending balance | $ (402.5) | $ (312.3) |
BUSINESS OVERVIEW - Property Sa
BUSINESS OVERVIEW - Property Sale (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 14, 2024 | Mar. 29, 2024 | Mar. 31, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale of property | $ 63.1 | $ 0 | |
Proceeds from pledged charitable contribution | 20 | ||
Office Building | Precision Technologies | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Consideration from sale of business | $ 90 | ||
Proceeds from sale of property and certain office buildings | 20 | ||
Gain on sale of property | $ 63.1 | ||
Office Building | Precision Technologies | Letter of Credit | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Maximum borrowing capacity | $ 70 |
BUSINESS OVERVIEW - Restructuri
BUSINESS OVERVIEW - Restructuring Narrative (Details) - Facility exit and other related - Discrete Restructuring Plan - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 29, 2024 | Dec. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 17.6 | ||
Accrued restructuring costs | $ 13 | $ 26 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) $ in Millions | 12 Months Ended | ||
Jan. 03, 2024 USD ($) | Dec. 31, 2023 USD ($) business | Mar. 29, 2024 USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill | $ 9,121.7 | $ 10,234.6 | |
Precision Technologies | |||
Business Acquisition [Line Items] | |||
Goodwill | 1,856.5 | 2,989.7 | |
Intelligent Operating Solutions | |||
Business Acquisition [Line Items] | |||
Goodwill | 4,148.9 | 4,137.6 | |
EA Elektro-Automatik Holding GmbH | |||
Business Acquisition [Line Items] | |||
Goodwill | 1,167 | ||
Other intangible assets (customer relationships, technology, and trade names) | 681.2 | ||
EA Elektro-Automatik Holding GmbH | Precision Technologies | |||
Business Acquisition [Line Items] | |||
Business combination, consideration transferred | $ 1,720 | ||
Goodwill | $ 1,200 | ||
Transaction and integration costs | $ 27 | ||
Q3 2023 Acquisitions | Intelligent Operating Solutions | |||
Business Acquisition [Line Items] | |||
Business combination, consideration transferred | 101.4 | ||
Goodwill | $ 55.8 | ||
Number of businesses acquired | business | 4 | ||
Other intangible assets (customer relationships, technology, and trade names) | $ 43.2 |
ACQUISITIONS - Schedule of Fair
ACQUISITIONS - Schedule of Fair Value of the Assets Acquired and Liabilities (Details) - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Business Acquisition [Line Items] | ||
Goodwill | $ 10,234.6 | $ 9,121.7 |
EA Elektro-Automatik Holding GmbH | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 21.5 | |
Inventories | 35.6 | |
Property, plant and equipment | 18.7 | |
Goodwill | 1,167 | |
Other intangible assets (customer relationships, technology, and trade names) | 681.2 | |
Deferred tax liabilities | (183.3) | |
Other assets and liabilities, net | (22.5) | |
Net cash consideration | $ 1,718.2 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Rollforward of Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 29, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 9,121.7 |
Measurement period adjustments for prior year acquisitions | (0.9) |
Attributable to acquisitions | 1,167 |
Foreign currency translation and other | (53.2) |
Ending balance | 10,234.6 |
Intelligent Operating Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 4,148.9 |
Measurement period adjustments for prior year acquisitions | (0.9) |
Attributable to acquisitions | 0 |
Foreign currency translation and other | (10.4) |
Ending balance | 4,137.6 |
Precision Technologies | |
Goodwill [Roll Forward] | |
Beginning balance | 1,856.5 |
Measurement period adjustments for prior year acquisitions | 0 |
Attributable to acquisitions | 1,167 |
Foreign currency translation and other | (33.8) |
Ending balance | 2,989.7 |
Advanced Healthcare Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 3,116.3 |
Measurement period adjustments for prior year acquisitions | 0 |
Attributable to acquisitions | 0 |
Foreign currency translation and other | (9) |
Ending balance | $ 3,107.3 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Finite and Indefinite Lived Assets (Details) - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, gross carrying amount | $ 5,488.7 | $ 4,825.3 |
Finite-lived intangible assets, accumulated amortization | (2,388.9) | (2,280.1) |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, gross (excluding goodwill) | 6,101.6 | 5,439.9 |
Trademarks and trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangibles, gross carrying amount | 612.9 | 614.6 |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, gross carrying amount | 1,275.4 | 1,139.6 |
Finite-lived intangible assets, accumulated amortization | (720) | (687.1) |
Customer relationships and other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, gross carrying amount | 4,038.6 | 3,568 |
Finite-lived intangible assets, accumulated amortization | (1,645.1) | (1,573.2) |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, gross carrying amount | 174.7 | 117.7 |
Finite-lived intangible assets, accumulated amortization | $ (23.8) | $ (19.8) |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) | 3 Months Ended |
Mar. 29, 2024 | |
Customer Relationships, Developed Technology and Trade Names | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life | 9 years |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation liabilities | $ 43.2 | $ 39.9 |
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 | 43.2 | 39.9 |
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 - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) | 3 Months Ended |
Mar. 29, 2024 USD ($) | |
Fair Value Disclosures [Abstract] | |
Loss on impairment of equity investment | $ 0 |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 3,941.7 | $ 3,646.2 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 3,941.7 | 3,646.2 |
Long-term debt, net of current maturities fair value | $ 3,835.4 | $ 3,539.4 |
FINANCING - Components of Debt
FINANCING - Components of Debt (Details) - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Long-term debt, principal amounts | $ 3,956.6 | $ 3,656.9 |
Less: aggregate unamortized debt discounts, premiums, and issuance costs | 14.9 | 10.7 |
Long-term debt, carrying value | 3,941.7 | 3,646.2 |
U.S. dollar-denominated commercial paper | Commercial Paper | ||
Debt Instrument [Line Items] | ||
Long-term debt, principal amounts | 820 | 1,251.2 |
Long-term debt, carrying value | 818.4 | |
3.7% Euro-denominated senior unsecured notes due 2026 | Registered Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, principal amounts | $ 539.5 | 0 |
Interest rate, stated percentage | 3.70% | |
3.7% Euro-denominated senior unsecured notes due 2029 | Registered Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, principal amounts | $ 755.3 | 0 |
Interest rate, stated percentage | 3.70% | |
Euro Term Loan due 2025 | Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, principal amounts | $ 296.7 | 303.6 |
Yen Term Loan due 2025 | Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, principal amounts | 95.1 | 102.1 |
3.15% senior unsecured notes due 2026 | Registered Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, principal amounts | $ 900 | 900 |
Interest rate, stated percentage | 3.15% | |
4.30% senior unsecured notes due 2046 | Registered Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, principal amounts | $ 550 | 550 |
Interest rate, stated percentage | 4.30% | |
Delayed-Draw Term Loan due 2024 | Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, principal amounts | $ 0 | $ 550 |
FINANCING - Narrative (Details)
FINANCING - Narrative (Details) € in Millions | 3 Months Ended | |||
Feb. 13, 2024 USD ($) | Jan. 02, 2024 USD ($) | Mar. 29, 2024 USD ($) | Feb. 13, 2024 EUR (€) | |
Registered Notes | Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 101% | |||
3.700% Notes due 2026 | Registered Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | € | € 500 | |||
Interest rate, stated percentage | 3.70% | |||
Debt Instrument Percentage of Face Value Issued | 0.99928 | |||
3.700% Notes due 2029 | Registered Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | € | € 700 | |||
Interest rate, stated percentage | 3.70% | |||
Debt Instrument Percentage of Face Value Issued | 0.99943 | |||
Euro-Denominated Senior Notes, 3.7%, Due 2026 and 3.7%, Due 2029 | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Debt, Net of Issuance Costs | $ 1,300,000,000 | |||
Euro-Denominated Senior Notes, 3.7%, Due 2026 and 3.7%, Due 2029 | Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage of principal amount redeemable | 100% | |||
Euro-Denominated Senior Notes, 3.7%, Due 2026 and 3.7%, Due 2029 | Registered Notes | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage of principal amount redeemable | 100% | |||
Delayed-Draw Term Loan Due 2024 | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Proceeds from line of credit | $ 450,000,000 | |||
Line of credit facility, outstanding | $ 1,000,000,000 | |||
Debt, refinanced amount | $ 1,000,000,000 | |||
U.S. dollar-denominated commercial paper | Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Debt term | 28 days | |||
U.S. dollar-denominated commercial paper | Commercial Paper | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt term | 397 days | |||
Euro Denominated Commercial Paper | Commercial Paper | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt term | 183 days | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt term | 5 years | |||
Maximum borrowing capacity | $ 2,000,000,000 | |||
Outstanding borrowings | $ 0 |
FINANCING - Outstanding Paper P
FINANCING - Outstanding Paper Programs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Dec. 31, 2023 | |
Short-term Debt [Line Items] | ||
Carrying value (a) | $ 3,941.7 | $ 3,646.2 |
U.S. dollar-denominated commercial paper | Commercial Paper | ||
Short-term Debt [Line Items] | ||
Carrying value (a) | $ 818.4 | |
Annual effective rate | 5.56% | |
Weighted average maturity (in days) | 28 days |
SALES - Narrative (Details)
SALES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Capitalized Contract Cost [Line Items] | |||
Contract assets | $ 107 | $ 108 | |
Net revenue-related contract assets | 52 | $ 51 | |
Contract liabilities, revenue recognized | $ 196 | $ 196 | |
Minimum | |||
Capitalized Contract Cost [Line Items] | |||
Useful life | 3 years | ||
Maximum | |||
Capitalized Contract Cost [Line Items] | |||
Useful life | 5 years |
SALES - Contract liabilities (D
SALES - Contract liabilities (Details) - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue - current | $ 540.1 | $ 544.6 |
Deferred revenue - noncurrent | 45.4 | 45.8 |
Total contract liabilities | $ 585.5 | $ 590.4 |
SALES - Revenue, Remaining Perf
SALES - Revenue, Remaining Performance Obligation (Details) $ in Millions | Mar. 29, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 712.5 |
Operating Segments | Intelligent Operating Solutions | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 565.9 |
Operating Segments | Precision Technologies | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 75.7 |
Operating Segments | Advanced Healthcare Solutions | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 70.9 |
SALES - Remaining Performance O
SALES - Remaining Performance Obligation, Expected Timing (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-30 | Mar. 29, 2024 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 100% |
Period One | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 80% |
Remaining performance obligation, expected timing | 2 years |
Period Two | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 95% |
Remaining performance obligation, expected timing | 3 years |
Period Three | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing | 4 years |
SALES - Disaggregation of Reven
SALES - Disaggregation of Revenue (Details) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 USD ($) | Mar. 31, 2023 USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Total sales | $ 1,524.5 | $ 1,460.7 |
Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 337.2 | 339.4 |
Industrial & Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 350.3 | 353.2 |
Government | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 126.2 | 111.1 |
Utilities & Power | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 101.9 | 98.9 |
Communications, Electronics & Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 90.4 | 105.9 |
Aerospace & Defense | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 83.4 | 67.6 |
Retail & Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 76.8 | 82.9 |
Oil & Gas | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 72.7 | 70.3 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 188.2 | 170.1 |
Total direct sales | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 1,427.1 | 1,399.4 |
Distributors | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 97.4 | 61.3 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 789.9 | 771.5 |
China | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 176.3 | 181.4 |
All other (each country individually less than 5% of total sales) | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | $ 558.3 | $ 507.8 |
Percentage of total sales | 0.05 | 0.05 |
Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | $ 1,524.5 | $ 1,460.7 |
Operating Segments | Intelligent Operating Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 665.7 | 632.1 |
Operating Segments | Intelligent Operating Solutions | Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 11.3 | 10.9 |
Operating Segments | Intelligent Operating Solutions | Industrial & Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 242.2 | 228.3 |
Operating Segments | Intelligent Operating Solutions | Government | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 69.5 | 61.8 |
Operating Segments | Intelligent Operating Solutions | Utilities & Power | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 49.2 | 47.3 |
Operating Segments | Intelligent Operating Solutions | Communications, Electronics & Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 27.9 | 25.6 |
Operating Segments | Intelligent Operating Solutions | Aerospace & Defense | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 0.1 | 0.1 |
Operating Segments | Intelligent Operating Solutions | Retail & Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 61.7 | 62.3 |
Operating Segments | Intelligent Operating Solutions | Oil & Gas | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 69.5 | 65.9 |
Operating Segments | Intelligent Operating Solutions | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 95.9 | 95 |
Operating Segments | Intelligent Operating Solutions | Total direct sales | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 627.3 | 597.2 |
Operating Segments | Intelligent Operating Solutions | Distributors | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 38.4 | 34.9 |
Operating Segments | Intelligent Operating Solutions | United States | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 349.5 | 340.1 |
Operating Segments | Intelligent Operating Solutions | China | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 67.1 | 64.9 |
Operating Segments | Intelligent Operating Solutions | All other (each country individually less than 5% of total sales) | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 249.1 | 227.1 |
Operating Segments | Precision Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 559 | 541.1 |
Operating Segments | Precision Technologies | Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 43.2 | 57 |
Operating Segments | Precision Technologies | Industrial & Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 103.5 | 120.6 |
Operating Segments | Precision Technologies | Government | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 47.6 | 40.9 |
Operating Segments | Precision Technologies | Utilities & Power | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 52.7 | 51.6 |
Operating Segments | Precision Technologies | Communications, Electronics & Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 62.5 | 80.3 |
Operating Segments | Precision Technologies | Aerospace & Defense | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 83.3 | 67.5 |
Operating Segments | Precision Technologies | Retail & Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 15.1 | 20.6 |
Operating Segments | Precision Technologies | Oil & Gas | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 3.2 | 4.4 |
Operating Segments | Precision Technologies | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 92.3 | 75.1 |
Operating Segments | Precision Technologies | Total direct sales | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 503.4 | 518 |
Operating Segments | Precision Technologies | Distributors | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 55.6 | 23.1 |
Operating Segments | Precision Technologies | United States | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 274.1 | 270.6 |
Operating Segments | Precision Technologies | China | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 82.9 | 92.2 |
Operating Segments | Precision Technologies | All other (each country individually less than 5% of total sales) | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 202 | 178.3 |
Operating Segments | Advanced Healthcare Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 299.8 | 287.5 |
Operating Segments | Advanced Healthcare Solutions | Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 282.7 | 271.5 |
Operating Segments | Advanced Healthcare Solutions | Industrial & Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 4.6 | 4.3 |
Operating Segments | Advanced Healthcare Solutions | Government | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 9.1 | 8.4 |
Operating Segments | Advanced Healthcare Solutions | Utilities & Power | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 0 | 0 |
Operating Segments | Advanced Healthcare Solutions | Communications, Electronics & Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 0 | 0 |
Operating Segments | Advanced Healthcare Solutions | Aerospace & Defense | ||
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 | Oil & Gas | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 0 | 0 |
Operating Segments | Advanced Healthcare Solutions | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 0 | 0 |
Operating Segments | Advanced Healthcare Solutions | Total direct sales | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 296.4 | 284.2 |
Operating Segments | Advanced Healthcare Solutions | Distributors | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 3.4 | 3.3 |
Operating Segments | Advanced Healthcare Solutions | United States | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 166.3 | 160.8 |
Operating Segments | Advanced Healthcare Solutions | China | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 26.3 | 24.3 |
Operating Segments | Advanced Healthcare Solutions | All other (each country individually less than 5% of total sales) | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 107.2 | 102.4 |
Sales of products and software | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 1,299.9 | 1,236.6 |
Sales of products and software | Operating Segments | Intelligent Operating Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 566.9 | 537.4 |
Sales of products and software | Operating Segments | Precision Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 500.6 | 478.3 |
Sales of products and software | Operating Segments | Advanced Healthcare Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 232.4 | 220.9 |
Sales of services | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 224.6 | 224.1 |
Sales of services | Operating Segments | Intelligent Operating Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 98.8 | 94.7 |
Sales of services | Operating Segments | Precision Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 58.4 | 62.8 |
Sales of services | Operating Segments | Advanced Healthcare Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | $ 67.4 | $ 66.6 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (as a percent) | 11.40% | 15.70% |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) shares in Millions | 3 Months Ended |
Mar. 29, 2024 shares | |
Share-Based Payment Arrangement [Abstract] | |
Shares of common stock reserved for issuance under the stock plan (in shares) | 12 |
Remaining service period related to the awards | 2 years |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pretax compensation expense | $ 28.9 | $ 26.7 |
Income tax benefit | (3.7) | (3.8) |
Total stock-based compensation expense, net of income taxes | 25.2 | 22.9 |
Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pretax compensation expense | 21.5 | 18.1 |
Income tax benefit | (2.6) | (2.6) |
Total stock-based compensation expense, net of income taxes | 18.9 | 15.5 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pretax compensation expense | 7.4 | 8.6 |
Income tax benefit | (1.1) | (1.2) |
Total stock-based compensation expense, net of income taxes | $ 6.3 | $ 7.4 |
STOCK-BASED COMPENSATION - Unre
STOCK-BASED COMPENSATION - Unrecognized Compensation Cost (Details) $ in Millions | Mar. 29, 2024 USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation cost | $ 226.9 |
Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation cost | 64.1 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation cost | $ 162.8 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Warranty period - minimum | 90 days | ||
Operating lease cost | $ 13 | $ 12 | |
Cash paid for operating leases | 12 | 12 | |
ROU assets obtained in exchange for operating lease obligations | 4 | $ 4 | |
Operating lease, right-of-use asset | 170 | $ 155 | |
Total lease liabilities | $ 177 | $ 164 |
NET EARNINGS PER SHARE - Antidi
NET EARNINGS PER SHARE - Antidilutive Securities Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1.2 | 2.9 |
NET EARNINGS PER SHARE - Share
NET EARNINGS PER SHARE - Share Repurchase Program Narrative (Details) - shares | Mar. 29, 2024 | Jan. 23, 2024 | Dec. 31, 2023 | Feb. 17, 2022 |
Earnings Per Share [Abstract] | ||||
Number of shares authorized to be repurchased (in shares) | 11,000,000 | 20,000,000 | ||
Number of remaining shares authorized to be repurchased (in shares) | 20,000,000 | 9,000,000 |
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 | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Numerator | ||
Net earnings | $ 207.4 | $ 173.6 |
Denominator | ||
Weighted average common shares outstanding used in basic earnings per share (in shares) | 351.7 | 353.6 |
Incremental common shares from: | ||
Assumed exercise of dilutive options and vesting of dilutive stock awards (in shares) | 4.3 | 2.9 |
Weighted average common shares outstanding used in diluted earnings per share (in shares) | 356 | 356.5 |
Net earnings per common share - Basic (in dollars per share) | $ 0.59 | $ 0.49 |
Net earnings per common share - Diluted (in dollars per share) | $ 0.58 | $ 0.49 |
NET EARNINGS PER SHARE - Divide
NET EARNINGS PER SHARE - Dividends Declared and Paid (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Dividend Per Common Share (in dollars per share) | $ 0.08 | $ 0.07 |
Amount ($ in millions) | $ 28.1 | $ 24.7 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 3 Months Ended |
Mar. 29, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
SEGMENT INFORMATION - Detailed
SEGMENT INFORMATION - Detailed Segment Data (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Total sales | $ 1,524.5 | $ 1,460.7 |
Total Operating Profit | 302.2 | 240.4 |
Interest expense, net | (44) | (32.1) |
Other non-operating expense, net | (24.2) | (2.5) |
Earnings before income taxes | 234 | 205.8 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total sales | 1,524.5 | 1,460.7 |
Total Operating Profit | 302.2 | 240.4 |
Operating Segments | Intelligent Operating Solutions | ||
Segment Reporting Information [Line Items] | ||
Total sales | 665.7 | 632.1 |
Total Operating Profit | 164.1 | 133.5 |
Operating Segments | Precision Technologies | ||
Segment Reporting Information [Line Items] | ||
Total sales | 559 | 541.1 |
Total Operating Profit | 149.1 | 123.6 |
Operating Segments | Advanced Healthcare Solutions | ||
Segment Reporting Information [Line Items] | ||
Total sales | 299.8 | 287.5 |
Total Operating Profit | 27.5 | 15.4 |
Other | ||
Segment Reporting Information [Line Items] | ||
Total Operating Profit | $ (38.5) | $ (32.1) |