Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 29, 2024 | Apr. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 29, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-39054 | |
Entity Registrant Name | ENVISTA HOLDINGS CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-2206728 | |
Entity Address, Address Line One | 200 S. Kraemer Blvd., Building E | |
Entity Address, City or Town | Brea, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92821-6208 | |
City Area Code | 714 | |
Local Phone Number | 817-7000 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | NVST | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 171,858,245 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001757073 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 948.5 | $ 940 |
Trade accounts receivable, less allowance for credit losses of $19.8 and $17.3, respectively | 413 | 407.5 |
Inventories, net | 267.4 | 258.8 |
Prepaid expenses and other current assets | 143 | 137.4 |
Total current assets | 1,771.9 | 1,743.7 |
Property, plant and equipment, net | 306.2 | 309.6 |
Operating lease right-of-use assets | 125.3 | 125.1 |
Other long-term assets | 174.4 | 180.5 |
Goodwill, net | 3,259.8 | 3,292.2 |
Other intangible assets, net | 918.7 | 954 |
Total assets | 6,556.3 | 6,605.1 |
Current liabilities: | ||
Short-term debt | 115.5 | 115.3 |
Trade accounts payable | 174.7 | 179.5 |
Accrued expenses and other liabilities | 458.6 | 455.7 |
Operating lease liabilities | 32.5 | 30.3 |
Total current liabilities | 781.3 | 780.8 |
Operating lease liabilities | 107.5 | 109.9 |
Other long-term liabilities | 136.7 | 142.4 |
Long-term debt | 1,390.5 | 1,398.1 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, 15.0 million shares authorized; no shares issued or outstanding at March 29, 2024 and December 31, 2023 | 0 | 0 |
Common stock, $0.01 par value,$500.0 million shares authorized; $173.8 million shares issued and $171.9 million shares outstanding at March 29, 2024; $173.3 million shares issued and $171.5 million shares outstanding at December 31, 2023 | 1.7 | 1.7 |
Additional paid-in capital | 3,767.4 | 3,758.2 |
Retained earnings | 654.8 | 631.2 |
Accumulated other comprehensive loss | (283.6) | (217.2) |
Total stockholders’ equity | 4,140.3 | 4,173.9 |
Total liabilities and stockholders’ equity | $ 6,556.3 | $ 6,605.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 19.8 | $ 17.3 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred shares issued (in shares) | 0 | 0 |
Preferred shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 173,800,000 | 173,300,000 |
Common stock, shares outstanding (in shares) | 171,900,000 | 171,500,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Sales | $ 623.6 | $ 627.2 |
Cost of sales | 267.3 | 264.5 |
Gross profit | 356.3 | 362.7 |
Operating expenses: | ||
Selling, general and administrative | 284.9 | 266.1 |
Research and development | 23.3 | 24.5 |
Operating profit | 48.1 | 72.1 |
Nonoperating (expense) income: | ||
Other income, net | 0.1 | 0.3 |
Interest expense, net | (12.9) | (16.7) |
Income before income taxes | 35.3 | 55.7 |
Income tax expense | 11.7 | 11.9 |
Net income | $ 23.6 | $ 43.8 |
Earnings per share: | ||
Earnings - basic (in USD per share) | $ 0.14 | $ 0.27 |
Earnings - diluted (in USD per share) | $ 0.14 | $ 0.25 |
Average common stock and common equivalent shares outstanding: | ||
Basic (in shares) | 171.9 | 163.6 |
Diluted (in shares) | 173.4 | 177.4 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 23.6 | $ 43.8 |
Other comprehensive income (loss), net of income taxes: | ||
Foreign currency translation adjustments | (66.2) | 14.8 |
Pension plan adjustments | (0.2) | (0.3) |
Total other comprehensive (loss) income, net of income taxes | (66.4) | 14.5 |
Comprehensive (loss) income | $ (42.8) | $ 58.3 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Total Envista Equity | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance, beginning of period at Dec. 31, 2022 | $ 4,206.9 | $ 1.6 | $ 3,699 | $ 731.4 | $ (225.1) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock-based award activity | 13.8 | 13.8 | ||||
Net income | $ 43.8 | 43.8 | 43.8 | |||
Other comprehensive loss | 14.5 | 14.5 | 14.5 | |||
Balance, end of period at Mar. 31, 2023 | 4,279 | 1.6 | 3,712.8 | 775.2 | (210.6) | |
Balance, beginning of period at Dec. 31, 2023 | 4,173.9 | 4,173.9 | 1.7 | 3,758.2 | 631.2 | (217.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock-based award activity | 9.2 | 9.2 | ||||
Net income | 23.6 | 23.6 | 23.6 | |||
Other comprehensive loss | (66.4) | (66.4) | (66.4) | |||
Balance, end of period at Mar. 29, 2024 | $ 4,140.3 | $ 4,140.3 | $ 1.7 | $ 3,767.4 | $ 654.8 | $ (283.6) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 23.6 | $ 43.8 |
Noncash items: | ||
Depreciation | 9.5 | 8.5 |
Amortization | 22.6 | 27.9 |
Allowance for credit losses | 4.5 | 2 |
Stock-based compensation expense | 11 | 15 |
Restructuring charges | (0.2) | 0.1 |
Impairment charges | 0.8 | 0.3 |
Amortization of right-of-use assets | 7.3 | 6.5 |
Amortization of debt discount and issuance costs | 1.2 | 1 |
Change in trade accounts receivable | (16.3) | (8.5) |
Change in inventories | (12.2) | (7.1) |
Change in trade accounts payable | (2.7) | (38.1) |
Change in prepaid expenses and other assets | (3.8) | 1.3 |
Change in accrued expenses and other liabilities | 4.3 | (41.3) |
Change in operating lease liabilities | (9.3) | (8.3) |
Net cash provided by operating activities | 40.3 | 3.1 |
Cash flows from investing activities: | ||
Payments for additions to property, plant and equipment | (11) | (17.5) |
All other investing activities, net | 0.3 | (4.5) |
Net cash used in investing activities | (10.7) | (22) |
Cash flows from financing activities: | ||
Proceeds from stock option exercises | 1.3 | 4.6 |
Tax withholding payment related to net settlement of equity awards | (3.3) | (6.1) |
All other financing activities | (0.6) | 0 |
Net cash used in financing activities | (2.6) | (1.5) |
Effect of exchange rate changes on cash and cash equivalents | (18.5) | (1.3) |
Net change in cash and cash equivalents | 8.5 | (21.7) |
Beginning balance of cash and cash equivalents | 940 | 606.9 |
Ending balance of cash and cash equivalents | 948.5 | 585.2 |
Supplemental data: | ||
Cash paid for interest | 16.7 | 14.3 |
Cash paid for taxes | 3.8 | 6.6 |
ROU assets obtained in exchange for operating lease obligations | $ 11.5 | $ 7.6 |
Business And Basis Of Presentat
Business And Basis Of Presentation | 3 Months Ended |
Mar. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Business Overview The Company provides products that are used to diagnose, treat and prevent disease and ailments of the teeth, gums and supporting bone, as well as to improve the aesthetics of the human smile. The Company is a worldwide provider of a broad range of dental implants, orthodontic appliances, diagnostic solutions, general dental consumables, equipment and services and is dedicated to driving technological innovations that help dental professionals improve clinical outcomes and enhance productivity. The Company operates in two business segments: Specialty Products & Technologies and Equipment & Consumables. The Company’s Specialty Products & Technologies segment primarily develops, manufactures and markets dental implant systems, including regenerative solutions, dental prosthetics and associated treatment software and technologies, as well as orthodontic bracket systems, aligners and lab products. The Company’s Equipment & Consumables segment primarily develops, manufactures and markets dental equipment and supplies used in dental offices, including digital imaging systems, software and other visualization/magnification systems; endodontic systems and related consumables; and restorative materials and instruments, rotary burs, impression materials, bonding agents and cements and infection prevention products. Basis of Presentation All revenues and costs as well as assets and liabilities directly associated with the business activity of the Company are included in the financial statements. All significant intercompany accounts and transactions between the businesses comprising the Company have been eliminated in the accompanying Condensed Consolidated Financial Statements. The Condensed Consolidated Financial Statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations; however, the Company believes that the disclosures are adequate to make the information presented not misleading. The accompanying Condensed Consolidated Financial Statements contain all adjustments (consisting of only normal recurring adjustments and reclassifications to conform to current year presentation) necessary to present fairly the financial position of the Company as of March 29, 2024 and December 31, 2023, and its results of operations and cash flows for the three month periods ended March 29, 2024 and March 31, 2023. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Consolidated Financial Statements and accompanying notes for the three years ended December 31, 2023, included in the Annual Report on Form 10-K filed by the Company with the SEC on February 15, 2024. Accounting Standards Not Yet Adopted In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The update requires a public business entity to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. Adoption of the ASU allows for either the prospective or retrospective application of the amendment and is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company has not yet completed its assessment of the impact of ASU 2023-09 on the Company’s Condensed Consolidated Financial Statements. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting - Improving Reportable Segment Disclosures” (Topic 280). The update is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (CODM), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. Adoption of the ASU requires retrospective application to all prior periods presented in the financial statements. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for fiscal periods after December 15, 2024 for interim periods. Early adoption is permitted. The Company has not yet completed its assessment of the impact of ASU 2023-07 on the Company’s Condensed Consolidated Financial Statements. |
Credit Losses
Credit Losses | 3 Months Ended |
Mar. 29, 2024 | |
Credit Loss [Abstract] | |
Credit Losses | CREDIT LOSSES The allowance for credit losses is a valuation account deducted from accounts receivable to present the net amount expected to be collected. Accounts receivable are charged off against the allowance when management believes the uncollectibility of an accounts receivable balance is confirmed. Management estimates the adequacy of the allowance by using relevant available information, from internal and external sources, relating to past events, current conditions and forecasts. Historical credit loss experience provides the basis for estimation of expected credit losses and is adjusted as necessary using the relevant information available. The allowance for credit losses is measured on a collective basis when similar risk characteristics exist. The Company has identified one portfolio segment based on the following risk characteristics: geographic regions, product lines, default rates and customer specific factors. The factors used by management in its credit loss analysis are inherently subject to uncertainty. If actual results are not consistent with management’s estimates and assumptions, the allowance for credit losses may be overstated or understated and a charge or credit to net income (loss) may be required. The rollforward of the allowance for credit losses is summarized as follows ($ in millions): Balance at December 31, 2023 $ 17.3 Foreign currency translation (0.3) Provision for credit losses 4.5 Write-offs charged against the allowance (0.8) Recoveries (0.9) Balance at March 29, 2024 $ 19.8 |
Inventories
Inventories | 3 Months Ended |
Mar. 29, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES The classes of inventory are summarized as follows ($ in millions): March 29, 2024 December 31, 2023 Finished goods $ 206.8 $ 196.4 Work in process 18.8 17.2 Raw materials 96.6 100.3 Reserve for inventory obsolescence (54.8) (55.1) Total $ 267.4 $ 258.8 |
Property, Plant And Equipment
Property, Plant And Equipment | 3 Months Ended |
Mar. 29, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant And Equipment | PROPERTY, PLANT AND EQUIPMENT The classes of property, plant and equipment are summarized as follows ($ in millions): March 29, 2024 December 31, 2023 Land and improvements $ 10.0 $ 10.0 Buildings and improvements 164.7 157.4 Machinery, equipment and other assets 416.4 417.9 Construction in progress 59.9 65.3 Gross property, plant and equipment 651.0 650.6 Less: accumulated depreciation (344.8) (341.0) Property, plant and equipment, net $ 306.2 $ 309.6 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL The following is a rollforward of the Company’s goodwill by segment ($ in millions): Specialty products & Technologies Equipment & Consumables Total Gross Accumulated Impairment Charges Total Gross Accumulated Impairment Charges Total Gross Accumulated Impairment Charges Total Balance at December 31, 2023 $ 2,007.0 $ (134.5) $ 1,872.5 $ 1,497.5 $ (77.8) $ 1,419.7 $ 3,504.5 $ (212.3) $ 3,292.2 Foreign currency translation (26.2) — (26.2) (6.2) — (6.2) (32.4) — (32.4) Balance at March 29, 2024 $ 1,980.8 $ (134.5) $ 1,846.3 $ 1,491.3 $ (77.8) $ 1,413.5 $ 3,472.1 $ (212.3) $ 3,259.8 |
Accrued Expenses And Other Liab
Accrued Expenses And Other Liabilities | 3 Months Ended |
Mar. 29, 2024 | |
Accrued expenses and other [Abstract] | |
Accrued Expenses and Other Liabilities | ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities were as follows ($ in millions): March 29, 2024 December 31, 2023 Current Noncurrent Current Noncurrent Compensation and benefits $ 103.0 $ 24.0 $ 120.0 $ 23.1 Sales and product allowances 63.8 1.5 72.0 1.7 Contract liabilities 115.8 8.2 106.4 8.4 Taxes, income and other 54.8 42.7 39.9 44.3 Restructuring-employee severance, benefits and other 13.0 — 16.0 — Pension benefits 5.8 24.8 5.8 30.1 Loss contingencies 10.7 26.8 11.0 27.0 Other 91.7 8.7 84.6 7.8 Total $ 458.6 $ 136.7 $ 455.7 $ 142.4 |
Hedging Transactions And Deriva
Hedging Transactions And Derivative Financial Instruments | 3 Months Ended |
Mar. 29, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Transactions and Derivative Financial Instruments | HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS The Company uses cross-currency swap derivative contracts to partially hedge its net investments in foreign operations against adverse movements in exchange rates between the U.S. dollar and the euro. The cross-currency swap derivative contracts are agreements to exchange fixed-rate payments in one currency for fixed-rate payments in another currency. On January 17, 2023, the Company entered into a two-year cross-currency swap derivative contract, with a notional value of $150.0 million. This contract effectively converts a portion of the Company’s U.S. dollar denominated senior term loan facilities to obligations denominated in euros and partially offsets the impact of changes in currency rates on foreign currency denominated net investments. This instrument matures on January 17, 2025. The Company also has foreign currency denominated long-term debt consisting of a senior euro term loan facility. The senior euro term loan facility represents a partial hedge of the Company’s net investment in foreign operations against adverse movements in exchange rates between the U.S. dollar and the euro. The senior euro term loan facility is designated and qualifies as a non-derivative hedging instrument. Refer to Note 11 for further discussion of the Company’s debt and credit facilities. The change in the fair value of the cross-currency swap instrument and the foreign currency translation of the senior euro term loan facilities are recorded in accumulated other comprehensive loss in equity in the accompanying Condensed Consolidated Balance Sheets, partially offsetting the foreign currency translation adjustment of the Company’s related net investment that is also recorded in accumulated other comprehensive loss as reflected in Note 12. The Company has also historically used interest rate swap derivative contracts to reduce its variability of cash flows related to interest payments with respect to its senior term and senior euro term loan facilities. The interest rate swap contracts exchanged interest payments based on variable rates for interest payments based on fixed rates. The changes in the fair value of these instruments were recorded in accumulated other comprehensive loss in equity (see Note 12). The interest income or expense from the cross-currency and interest rate swaps was recorded in interest expense, net in the Company’s Condensed Consolidated Statements of Operations consistent with the classification of interest expense attributable to the underlying debt. The Company did not have any outstanding interest rate swap contracts as of March 29, 2024. The following table summarizes the notional values as of March 29, 2024 and March 31, 2023 and pretax impact of changes in the fair values of instruments designated as net investment hedges in accumulated other comprehensive loss (“OCI”) for the three months ended March 29, 2024 and March 31, 2023 ($ in millions): Notional Amount Gain Recognized in OCI Three Months Ended March 29, 2024 Foreign currency denominated debt $ 377.8 $ 8.6 Foreign currency contract 150.0 3.3 Total $ 527.8 $ 11.9 Three Months Ended March 31, 2023 Notional Amount Loss Recognized in OCI Foreign currency denominated debt $ 225.5 $ (2.8) Foreign currency contract 150.0 — Total $ 375.5 $ (2.8) The Company did not reclassify any deferred gains or losses related to its net investment hedge from accumulated other comprehensive loss to income during the three months ended March 29, 2024 and March 31, 2023. In addition, the Company did not have any ineffectiveness related to its net investment hedge and therefore did not reclassify any portion of the above net investment hedge from accumulated other comprehensive loss into income during the three months ended March 29, 2024 and March 31, 2023. The cash inflows and outflows associated with the Company’s derivative contract designated as a net investment hedge is classified in investing activities in the accompanying Condensed Consolidated Statements of Cash Flows. The Company’s derivative instrument, as well as its non-derivative debt instrument designated and qualifying as net investment hedges, were classified in the Company’s Condensed Consolidated Balance Sheets as follows ($ in millions): March 29, 2024 December 31, 2023 Derivative liabilities: Accrued expenses and other liabilities $ — $ — Other long-term liabilities $ — $ 3.3 Nonderivative hedging instruments: Long-term debt $ 377.8 $ 386.4 Amounts related to the Company’s derivative expected to be reclassified from accumulated other comprehensive loss to net income during the next 12 months is not significant. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 29, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Accounting standards define fair value based on an exit price model, establish a framework for measuring fair value where the Company’s assets and liabilities are required to be carried at fair value and provide for certain disclosures related to the valuation methods used within a valuation hierarchy as established within the accounting standards. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, or other observable characteristics for the asset or liability, including interest rates, yield curves and credit risks, or inputs that are derived principally from, or corroborated by, observable market data through correlation; and Level 3 inputs are unobservable inputs based on the Company’s 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. A summary of financial assets and liabilities that are measured at fair value on a recurring basis were as follows ($ in millions): Quoted Prices in Significant Other Significant Total March 29, 2024: Liabilities: Cross-currency swap derivative contract $ — $ — $ — $ — Deferred compensation plans $ — $ 22.9 $ — $ 22.9 Contingent consideration $ — $ — $ 3.8 $ 3.8 December 31, 2023: Liabilities: Cross-currency swap derivative contract $ — $ 3.3 $ — $ 3.3 Deferred compensation plans $ — $ 21.4 $ — $ 21.4 Contingent consideration $ — $ — $ 3.8 $ 3.8 Derivative Instruments The cross-currency swap derivative contract was classified as Level 2 in the fair value hierarchy as it is measured using the income approach with the relevant foreign currency current exchange rates and forward curves as inputs. Refer to Note 7 for additional information. Deferred Compensation Plans Certain management employees of the Company participate in nonqualified deferred compensation programs that permit such employees to defer a portion of their compensation, on a pretax basis. All amounts deferred under this plan are unfunded, unsecured obligations and are presented as a component of the Company’s compensation and benefits accrual included in accrued expenses in the accompanying Condensed Consolidated Balance Sheets (refer to Note 6). Participants may choose among alternative earnings rates for the amounts they defer, which are primarily based on investment options within the Company’s 401(k) program. Changes in the deferred compensation liability under these programs are recognized based on changes in the fair value of the participants’ accounts, which are based on the applicable earnings rates on investment options within the Company’s 401(k) program. Amounts voluntarily deferred by employees into the Company stock fund and amounts contributed to participant accounts by the Company are deemed invested in the Company’s common stock and future distributions of such contributions will be made solely in shares of Company common stock, and therefore are not reflected in the above amounts. Contingent Consideration Contingent consideration represents a cash hold back intended to be used for certain liabilities related to the Company’s acquisitions. Contingent consideration was classified as Level 3 in the fair value hierarchy as the estimated fair value was measured using a probability weighted discounted cash flow model. Fair Value of Financial Instruments The carrying amounts and fair values of the Company’s financial instruments were as follows ($ in millions): March 29, 2024 December 31, 2023 Carrying Amount Fair Value Carrying Amount Fair Value Liabilities: Contingent consideration $ 3.8 $ 3.8 $ 3.8 $ 3.8 Cross-currency swap derivative contract $ — $ — $ 3.3 $ 3.3 Convertible senior notes due 2028 $ 487.6 $ 441.8 $ 486.9 $ 455.7 Convertible senior notes due 2025 $ 115.5 $ 135.8 $ 115.3 $ 145.1 Other debt $ 902.9 $ 902.9 $ 911.2 $ 911.2 |
Warranty
Warranty | 3 Months Ended |
Mar. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranty | WARRANTY The Company generally accrues 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 periods 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. At March 29, 2024 and December 31, 2023, the warranty liability was $8.0 million and $9.0 million, respectively. |
Litigation And Contingencies
Litigation And Contingencies | 3 Months Ended |
Mar. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation And Contingencies | LITIGATION AND CONTINGENCIES The Company records accruals for loss contingencies associated with legal matters when it is probable that a liability will be incurred, and the amount of the loss can be reasonably estimated. For litigation matters that the Company has determined are both probable and can be reasonably estimated, the Company has accrued $37.5 million and $38.0 million as of March 29, 2024 and December 31, 2023, respectively, which are included in accrued liabilities in the Condensed Consolidated Balance Sheets. The Company has accrued for these matters and will continue to monitor each related legal issue and adjust accruals as might be warranted based on new information and further developments in accordance with Accounting Standards Codification (“ASC”) 450-20-25. Amounts accrued for legal contingencies often result from a complex series of judgments about future events and uncertainties that rely heavily on estimates and assumptions including timing of related payments. The ability to make such estimates and judgments can be affected by various factors including, among other things, whether damages sought in the proceedings are unsubstantiated or indeterminate; legal discovery has not commenced or is not complete; proceedings are in early stages; matters present legal uncertainties; there are significant facts in dispute; procedural or jurisdictional issues; the uncertainty and unpredictability of the number of potential claims; or there are numerous parties involved. To the extent adverse verdicts have been rendered against the Company, the Company does not record an accrual until a loss is determined to be probable and can be reasonably estimated. In the Company's opinion, based on its examination of these matters, its experience to date and discussions with counsel, the ultimate outcome of legal proceedings, net of liabilities accrued in the Company's Condensed Consolidated Balance Sheets, is not expected to have a material adverse effect on the Company's financial position. However, the resolution of, or increase in accruals for one or more of these matters in any reporting period may have a material adverse effect on the Company’s results of operations and cash flows for that period. |
Debt And Credit Facilities
Debt And Credit Facilities | 3 Months Ended |
Mar. 29, 2024 | |
Debt Disclosure [Abstract] | |
Debt And Credit Facilities | DEBT AND CREDIT FACILITIES The components of the Company’s debt were as follows, net of debt discount and debt issuance costs ($ in millions): March 29, 2024 December 31, 2023 Senior term loan facility due 2028 (the “2028 Term Loan”) $ 526.0 $ 525.8 Senior euro term loan facility due 2028 (the “2028 Euro Term Loan”) 376.9 385.4 Convertible senior notes due 2028 (the “2028 Convertible Notes”) 487.6 486.9 Convertible senior notes due 2025 (the “2025 Convertible Notes”) 115.5 115.3 Total debt 1,506.0 1,513.4 Less: current portion (115.5) (115.3) Long-term debt $ 1,390.5 $ 1,398.1 Credit Facilities On August 31, 2023, the Company entered into a second amended and restated credit agreement (the “Second Amended Credit Agreement”), which amends and restates the Company’s credit agreement dated June 15, 2021. The amended and restated credit agreement dated June 15, 2021, consisted of a $650.0 million Term Loan and a €208.0 million Euro Term Loan (collectively the “2024 Term Loans”), which were due in 2024. Additionally, the amended and restated credit agreement dated June 15, 2021 included a revolving credit facility with an aggregate available borrowing capacity of $750.0 million and a $20.0 million sublimit for the issuance of standby letters of credit. Under the Second Amended Credit Agreement, the Company entered into the 2028 Term Loan for $530.0 million and the 2028 Euro Term Loan for €350.0 million (collectively the “2028 Term Loans”). The Second Amended Credit Agreement also includes a revolving credit facility (together with the 2028 Term Loans, the “Senior Credit Facilities”) with an aggregate available borrowing capacity of $750.0 million and a $30.0 million sublimit for the issuance of standby letters of credit that can be used for working capital and other general corporate purposes. The Company may request further increases to the revolving credit facility by an amount that is the greater of 100% of Consolidated EBITDA or $525.0 million. As of March 29, 2024 and December 31, 2023 there were no borrowings outstanding under this revolving credit facility. The Senior Credit Facilities mature on August 31, 2028, and are subject to an earlier maturity date of 91 days prior to the maturity date of the 2028 Convertible Notes, if more than $250.0 million of such notes are outstanding at that time. The proceeds from the 2028 Term Loans were used to pay outstanding balances of the 2024 Term Loans. The Company paid fees aggregating approximately $5.2 million in connection with the Second Amended Credit Agreement. Under the Senior Credit Facilities, borrowings bear interest as follows: (1) Term SOFR Loans (as defined in the Second Amended Credit Agreement) bear interest at a variable rate on a forward-looking Secured Overnight Financing Rate (“SOFR”) term rate plus 0.10% credit spread adjustment plus a margin of between 0.910% and 1.625%, depending on the Company’s Consolidated Leverage Ratio (as defined in the Second Amended Credit Agreement) as of the last day of the immediately preceding fiscal quarter; and (2) Base Rate Loans (as defined in the Second Amended Credit Agreement) bear interest at a variable rate equal to (a) the highest of (i) the Federal funds rate (as published by the Federal Reserve Bank of New York from time to time) plus 0.50%, (ii) Bank of America’s “prime rate” as publicly announced from time to time, (iii) the Term SOFR (as defined in the Second Amended Credit Agreement) plus 1.0% and (iv) 1.0%, plus a margin of between 0.0% and 0.625%, depending on the Company’s Consolidated Leverage Ratio as of the last day of the immediately preceding fiscal quarter. In no event will Term SOFR Loans or Base Rate Loans bear interest at a rate lower than 0.0%. In addition, the Company is required to pay a per annum facility fee of between 0.09% and 0.225% depending on the Company’s Consolidated Leverage Ratio as of the last day of the immediately preceding fiscal quarter and based on the aggregate commitments under the revolving credit facility, whether drawn or not. The interest rates for borrowings under the 2028 Term Loan were 6.65% and 6.70% as of March 29, 2024 and December 31, 2023, respectively. The interest rates for borrowings under the 2028 Euro Term Loan were 4.98% and 5.00% as of March 29, 2024 and December 31, 2023, respectively. Interest is payable monthly for the 2028 Term Loans. The Company is required to maintain a Consolidated Leverage Ratio of 4.00 to 1.00 or less and includes a provision that the maximum Consolidated Leverage Ratio will be increased to 4.50 to 1.00 for the three consecutive full fiscal quarters immediately following the consummation of any acquisition by the Company or any subsidiary of the Company in which the purchase price exceeds $100.0 million. The Company is also required to maintain a Consolidated Interest Coverage Ratio (as defined in the Second Amended Credit Agreement) of at least 3.00 to 1.00. The Company is subject to customary representations, warranties, conditions precedent, events of default, indemnities and affirmative and negative covenants, including covenants that, among other things, limit or restrict the Company’s and/or the Company’s subsidiaries’ ability, subject to certain exceptions and qualifications, to incur liens or indebtedness, merge, consolidate or sell or otherwise transfer assets, make dividends or distributions, enter into transactions with the Company’s affiliates and use proceeds of the debt financing for other than permitted uses. Additionally, upon the occurrence and during the continuance of an event of default, the lenders may declare the outstanding advances and all other obligations immediately due and payable. The Company was in compliance with all of its debt covenants as of March 29, 2024. 2028 Convertible Notes On August 10, 2023, the Company issued the 2028 Convertible Notes due on August 15, 2028, unless earlier repurchased, redeemed or converted. The aggregate principal amount, which includes the initial purchasers’ exercise in full of their option to purchase an additional $65.2 million principal amount, was $500.2 million. The net proceeds from the issuance, after deducting purchasers’ discounts and estimated offering expenses, were $485.9 million. The 2028 Convertible Notes will accrue interest at a rate of 1.75% per annum, payable semi-annually in arrears on February 15 and August 15 of each year. The 2028 Convertible Notes have an initial conversion rate of 21.5942 shares of the Company’s common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $46.31 per share of the Company’s common stock and is subject to adjustment upon the occurrence of specified events. The 2028 Convertible Notes are governed by an indenture dated as of August 10, 2023 (the “Indenture”) between the Company and Wilmington Trust, National Association, as trustee. The Indenture does not contain any financial covenants or any restrictions on the payment of dividends, the incurrence of senior debt or other indebtedness or the issuance or repurchase of the Company’s securities by the Company. The 2028 Convertible Notes are senior, unsecured obligations and are (i) equal in right of payment with the Company’s existing and future senior, unsecured indebtedness; (ii) senior in right of payment to the Company’s existing and future indebtedness that is expressly subordinated to the 2028 Convertible Notes; (iii) effectively subordinated to the Company’s existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent the Company is not a holder thereof) preferred equity, if any, of the Company’s subsidiaries. Holders of the 2028 Convertible Notes may convert at any time on or after February 15, 2028 until the close of business on the second scheduled trading day immediately before the maturity date. Holders will also have the right to convert prior to February 15, 2028, but only upon the occurrence of specified events. The Company will settle any convertible note conversions through a combination settlement by satisfying the principal amount outstanding with cash and any convertible note conversion value in excess of the principal amount in cash or shares of the Company’s common stock or any combination thereof. If a fundamental change occurs prior to the maturity date, holders may require the Company to repurchase all or a portion of their 2028 Convertible Notes for cash at a repurchase price equal to 100% of the principal amount plus any accrued and unpaid interest. In addition, if specific corporate events occur prior to the maturity date, the Company would increase the conversion rate for a holder who elects to convert in connection with such an event in certain circumstances. As of March 29, 2024, none of the conditions permitting early conversion by holders had been met, therefore, the 2028 Convertible Notes are classified as long-term debt. The 2028 Convertible Notes will be redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after August 17, 2026 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount to be redeemed, plus accrued and unpaid interest, if any, to, but excluding the redemption date, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (ii) the trading day immediately before the date the Company sends such notice. In addition, calling any 2028 Convertible Note for redemption will constitute a “Make-Whole Fundamental Change” (as defined in the Indenture) with respect to that 2028 Convertible Note, in which case the conversion rate applicable to the conversion will be increased in certain circumstances if it is converted after it is called for redemption. The 2028 Convertible Notes are accounted for in accordance with ASC 470 “Debt” and ASC 815 “Derivatives and Hedging.” The Company has evaluated all the embedded conversion options contained in the 2028 Convertible Notes to determine if there are embedded features that require bifurcation as a derivative as required by U.S. GAAP. Based on the Company’s analysis, it accounts for the 2028 Convertible Notes as single units of accounting, a liability, because the Company concluded that the conversion features do not require bifurcation as a derivative. 2025 Convertible Notes On May 21, 2020, the Company issued the 2025 Convertible Notes due on June 1, 2025, unless earlier repurchased, redeemed or converted. The aggregate principal amount, which includes the initial purchasers’ exercise in full of their option to purchase an additional $67.5 million principal amount was $517.5 million. The net proceeds from the issuance, after deducting purchasers’ discounts and estimated offering expenses, were $502.6 million. The Company used part of the net proceeds to pay for the capped call transactions (“Capped Calls”) as further described below. On August 10, 2023, the Company entered into exchange agreements with a limited number of holders of the 2025 Convertible Notes to exchange $401.2 million principal amount of the 2025 Convertible Notes for aggregate consideration which consisted of approximately $403.0 million in cash, which included accrued interest, and approximately 8.4 million shares of the Company’s common stock (the “Notes Exchanges”). The 2025 Convertible Notes accrue interest at a rate of 2.375% per annum, payable semi-annually in arrears on June 1 and December 1 of each year. The 2025 Convertible Notes have an initial conversion rate of 47.5862 shares of the Company’s common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $21.01 per share of the Company’s common stock and is subject to adjustment upon the occurrence of specified events. The 2025 Convertible Notes are governed by an indenture dated as of May 21, 2020 (the “2025 Convertible Note Indenture”) between the Company and Wilmington Trust, National Association, as trustee. The 2025 Convertible Note Indenture does not contain any financial covenants or any restrictions on the payment of dividends, the incurrence of senior debt or other indebtedness or the issuance or repurchase of the Company’s securities by the Company. The 2025 Convertible Notes are senior, unsecured obligations and are (i) equal in right of payment with the Company’s existing and future senior, unsecured indebtedness; (ii) senior in right of payment to the Company’s existing and future indebtedness that is expressly subordinated to the 2025 Convertible Notes; (iii) effectively subordinated to the Company’s existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent the Company is not a holder thereof) preferred equity, if any, of the Company’s subsidiaries. Holders may convert at any time on or after December 2, 2024, until the close of business on the second scheduled trading day preceding the maturity date. Holders will also have the right to convert prior to December 2, 2024, but only upon the occurrence of specified events. The Company will settle any convertible note conversions through a combination settlement by satisfying the principal amount outstanding with cash and any convertible note conversion value in excess of the principal amount in cash or shares of the Company’s common stock or any combination thereof. If a fundamental change occurs prior to the maturity date, holders may require the Company to repurchase all or a portion of their 2025 Convertible Notes for cash at a repurchase price equal to 100.0% of the principal amount plus any accrued and unpaid interest. In addition, if specific corporate events occur prior to the maturity date, the Company would increase the conversion rate for a holder who elects to convert in connection with such an event in certain circumstances. The 2025 Convertible Notes are classified as short-term debt as of March 29, 2024 and December 31, 2023, as holders may convert at any time after December 2, 2024. The 2025 Convertible Notes are redeemable, in whole or in part, at the Company’s option at any time, on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amounts to be redeemed, plus accrued and unpaid interest, if any, to, but excluding the redemption date, but only if the last reported sale price per share of the Company’s common stock exceeds 130.0% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (ii) the trading day immediately before the date the Company sends such notice. In addition, calling any 2025 Convertible Note for redemption will constitute a “Make-Whole Fundamental Change”, as defined in the 2025 Convertible Note Indenture, in which case the conversion rate applicable to the conversion will be increased in certain circumstances if it is converted after it is called for redemption. The following table sets forth total interest expense recognized related to convertible notes ($ in millions): Three Months Ended March 29, 2024 March 31, 2023 Contractual interest expense: 2028 Convertible Notes $ 2.2 $ — 2025 Convertible Notes 0.7 3.1 Amortization of debt issuance costs: 2028 Convertible Notes 0.7 — 2025 Convertible Notes 0.2 0.7 Total interest expense $ 3.8 $ 3.8 For the three months ended March 29, 2024 and March 31, 2023, the debt issuance costs were amortized using an annual effective interest rate of 2.4% and 3.0% for the 2028 Convertible Notes and the 2025 Convertible Notes, respectively. As of March 29, 2024 and December 31, 2023, the if-converted value of the 2025 Convertible Notes exceeded the outstanding principal amount by $2.0 million and $16.9 million, respectively. As of March 29, 2024 and December 31, 2023, the if-converted value of the 2028 Convertible Notes did not exceed the outstanding principal. Debt Issuance Costs The remaining unamortized debt issuance costs for debt outstanding were as follows ($ in millions): March 29, 2024 December 31, 2023 2028 Convertible Notes $ 12.6 $ 13.3 2025 Convertible Notes 0.8 1.0 2028 Term Loan 4.0 4.2 2028 Euro Term Loan 0.9 1.0 $ 18.3 $ 19.5 The above unamortized debt issuance costs have been netted against their respective aggregate principal amounts of the related debt and are being amortized to interest expense over the term of the respective debt. Capped Call Transactions In connection with the offering of the 2025 Convertible Notes, the Company entered into Capped Calls with certain counterparties. The Capped Calls have an initial strike price of approximately $21.01 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2025 Convertible Notes. The Capped Calls have initial cap prices of $23.79 per share, subject to certain adjustments. The Capped Calls are generally intended to reduce or offset the potential dilution from shares of common stock issued upon any conversion of the 2025 Convertible Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. In connection with the Notes Exchanges as discussed above, the Company completed a partial unwind of the Capped Calls. As the Capped Call transactions are considered indexed to the Company's own stock and are considered equity classified, they are recorded in equity and are not accounted for as derivatives. The cost of $20.7 million incurred in connection with the Capped Calls was recorded as a reduction to additional paid-in capital. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 29, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in accumulated other comprehensive loss by component are summarized below ($ in millions). Foreign Currency Translation Adjustments Unrealized Pension Costs Total Accumulated Other Comprehensive Loss Three Months Ended March 29, 2024 Balance, December 31, 2023 $ (223.7) $ 6.5 $ (217.2) Other comprehensive loss before reclassifications: Decrease (63.3) — (63.3) Income tax impact (2.9) — (2.9) Other comprehensive loss before reclassifications, net of income taxes (66.2) — (66.2) Amounts reclassified from accumulated other comprehensive loss: Decrease — (0.2) (0.2) Income tax impact — — — Amounts reclassified from accumulated other comprehensive loss, net of income taxes — (0.2) (0.2) Net current period other comprehensive loss, net of income taxes (66.2) (0.2) (66.4) Balance, March 29, 2024 $ (289.9) $ 6.3 $ (283.6) Foreign Currency Translation Adjustments Unrealized Pension Costs Total Accumulated Other Comprehensive Loss Three Months Ended March 31, 2023 Balance, December 31, 2022 $ (240.5) $ 15.4 $ (225.1) Other comprehensive loss before reclassifications: Increase 14.1 — 14.1 Income tax impact 0.7 — 0.7 Other comprehensive loss before reclassifications, net of income taxes 14.8 — 14.8 Amounts reclassified from accumulated other comprehensive loss: Decrease — (0.4) (0.4) Income tax impact — 0.1 0.1 Amounts reclassified from accumulated other comprehensive loss, net of income taxes — (0.3) (0.3) Net current period other comprehensive loss, net of income taxes 14.8 (0.3) 14.5 Balance, March 31, 2023 $ (225.7) $ 15.1 $ (210.6) |
Revenue
Revenue | 3 Months Ended |
Mar. 29, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The following table presents the Company’s revenues disaggregated by geographical region for the three months ended March 29, 2024 and March 31, 2023 ($ in millions). Sales taxes and other usage-based taxes collected from customers are excluded from revenues. The Company has historically defined emerging markets as developing markets of the world experiencing extended periods of accelerated growth in gross domestic product and infrastructure, including Eastern Europe, the Middle East, Africa, Latin America and Asia (with the exception of Japan and Australia). The Company defines developed markets as all markets of the world that are not emerging markets. Three Months Ended March 29, 2024 Specialty Products & Technologies Equipment & Consumables Total Geographical region: North America $ 171.1 $ 147.6 $ 318.7 Western Europe 122.3 26.0 148.3 Other developed markets 22.1 8.2 30.3 Emerging markets 93.2 33.1 126.3 Total $ 408.7 $ 214.9 $ 623.6 Three Months Ended March 31, 2023 Specialty Products & Technologies Equipment & Consumables Total Geographical region: North America $ 185.3 $ 139.4 $ 324.7 Western Europe 117.0 32.1 149.1 Other developed markets 24.0 8.6 32.6 Emerging markets 83.7 37.1 120.8 Total $ 410.0 $ 217.2 $ 627.2 Remaining Performance Obligations ASC 606 requires disclosure of remaining performance obligations that represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year which are fully or partially unsatisfied at the end of the period. Remaining performance obligations include noncancelable purchase orders, extended warranty and service agreements and do not include revenue from contracts with customers with an original term of one year or less. As of March 29, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $87.3 million and the Company expects to recognize revenue on the majority of this amount over the next 12 months. Contract Liabilities The Company often receives cash payments from customers in advance of the Company’s performance resulting in contract liabilities. These contract liabilities are classified as either current or long-term in the Condensed Consolidated Balance Sheets based on the timing of when the Company expects to recognize revenue. As of March 29, 2024 and December 31, 2023, the contract liabilities were $124.0 million and $114.8 million, respectively, and are included within accrued expenses and other liabilities and other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets. Revenue recognized during the three months ended March 29, 2024 and March 31, 2023 that was included in the contract liability balance at December 31, 2023 and December 31, 2022 was $38.7 million and $32.9 million, respectively. Significant Customers |
Restructuring Activities and Re
Restructuring Activities and Related Impairments | 3 Months Ended |
Mar. 29, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities And Related Impairments | RESTRUCTURING ACTIVITIES AND RELATED IMPAIRMENTS Restructuring Activities The Company’s restructuring activities are undertaken as necessary to implement management’s strategy, streamline operations, take advantage of available capacity and resources, and ultimately achieve net cost reductions. These activities generally relate to the realignment of existing manufacturing capacity and closure of facilities and other exit or disposal activities, as it relates to executing the Company’s strategy, pursuant to restructuring programs. Restructuring related charges by segment were as follows ($ in millions): Three Months Ended March 29, 2024 March 31, 2023 Specialty Products & Technologies $ 3.3 $ 1.6 Equipment & Consumables 2.8 2.6 Other 0.8 0.1 Total $ 6.9 $ 4.3 Restructuring related charges were reflected in the following captions in the accompanying Condensed Consolidated Statements of Operations ($ in millions): Three Months Ended March 29, 2024 March 31, 2023 Cost of sales $ 1.7 $ 1.5 Selling, general and administrative expenses 5.2 2.8 Total $ 6.9 $ 4.3 At March 29, 2024 and December 31, 2023, the restructuring liability was $13.0 million and $16.0 million, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company’s effective tax rates of 33.1% for the three months ended March 29, 2024, and 21.4% for the three months ended March 31, 2023, differ from the U.S. federal statutory rate of 21.0% primarily due to a valuation allowance against certain U.S. interest carryforwards, and to the Company’s geographical mix of earnings and net discrete tax benefits, respectively. On January 1, 2024, certain provisions of the Organisation for Economic Co-operation and Development base Erosion and Profit Shifting 2.0 Pillar Two global minimum tax (“GMT”) became effective in various jurisdictions. Based on currently enacted law, the impact of GMT on the Company’s 2024 financial results is not expected to be material. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 29, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share is calculated by dividing the applicable income by the weighted average number of shares of common stock outstanding for the applicable period. Diluted earnings per share is computed based on the weighted average number of common shares outstanding plus the effect of dilutive potential shares outstanding during the period using the treasury stock method, except for the 2028 Convertible Notes and 2025 Convertible Notes, which are calculated using the if-converted method. Dilutive potential common shares include employee equity options, non-vested shares and similar instruments granted by the Company and the assumed conversion impact of convertible notes. The Company will settle any convertible note conversions through a combination settlement by satisfying the principal amount outstanding with cash and any convertible note conversion value in excess of the principal amount in cash or shares of the Company’s common stock or any combination thereof. As the Company will settle the principal amount of convertible notes in cash upon conversion, the convertible notes only have an impact on the Company's diluted earnings per share when the average share price of the Company’s common stock exceeds the conversion price, in any applicable period. See the computation of earnings per share below for the dilutive impact of the convertible notes for the three months ended March 29, 2024 and March 31, 2023. In connection with the offering of the 2025 Convertible Notes, the Company entered into Capped Calls, which are intended to reduce or offset the potential dilution from shares of common stock issued upon conversion. The Company completed a partial unwind of the Capped Calls in connection with the Notes Exchanges. Refer to Note 11 for further discussion of the Capped Calls. The impact of the remaining Capped Calls is not included when calculating potentially dilutive shares since their effect is anti-dilutive. The Capped Calls will mitigate dilution for the conversion of the remaining 2025 Convertible Notes up to the Company’s common stock price of $23.79. If the remaining 2025 Convertible Notes are converted at a price higher than $23.79 per share, the Capped Calls will no longer mitigate dilution from the conversion of the remaining 2025 Convertible Notes. The table below presents the computation of basic and diluted earnings per share ($ and shares in millions, except per share amounts): Three Months Ended March 29, 2024 March 31, 2023 Numerator: Net income $ 23.6 $ 43.8 Denominator: Weighted-average common shares outstanding used in basic earnings per share 171.9 163.6 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive restricted stock units and performance stock units 1.1 2.8 Assumed conversion of 2025 Convertible Notes 0.4 11.0 Weighted average common shares outstanding used in diluted earnings per share 173.4 177.4 Earnings per share: Earnings - basic $ 0.14 $ 0.27 Earnings - diluted $ 0.14 $ 0.25 The following table presents the number of outstanding securities not included in the computation of diluted income per share, because their effect was anti-dilutive (in millions): Three Months Ended March 29, 2024 March 31, 2023 Stock-based awards 3.5 1.8 2028 Convertible Notes 11.3 — Total 14.8 1.8 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 29, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company operates and reports its results in two separate business segments, the Specialty Products & Technologies and Equipment & Consumables segments. When determining the reportable segments, the Company aggregated operating segments based on their similar economic and operating characteristics. Operating profit represents total revenues less operating expenses, excluding nonoperating income (expense), interest expense and income taxes. Operating profit amounts in the Other segment consist of unallocated corporate costs and other costs not considered part of management’s evaluation of reportable segment operating performance. The identifiable assets by segment are those used in each segment’s operations. Inter-segment amounts are not significant and are eliminated to arrive at consolidated totals. The Company’s Specialty Products & Technologies products primarily include implants, regenerative products, prosthetics, orthodontic brackets, aligners and lab products. The Company’s Equipment & Consumables products primarily include traditional consumables such as bonding agents and cements, impression materials, infection prevention products and restorative products, while the Company’s equipment products primarily include digital imaging systems, software and other visualization and magnification systems. Segment related information is shown below ($ in millions): Three Months Ended March 29, 2024 March 31, 2023 Sales: Specialty Products & Technologies $ 408.7 $ 410.0 Equipment & Consumables 214.9 217.2 Total $ 623.6 $ 627.2 Operating profit and reconciliation to income before taxes: Specialty Products & Technologies $ 44.2 $ 71.1 Equipment & Consumables 35.6 32.5 Other (31.7) (31.5) Operating profit 48.1 72.1 Nonoperating income (expense): Other income, net 0.1 0.3 Interest expense, net (12.9) (16.7) Income before taxes $ 35.3 $ 55.7 Identifiable assets: March 29, 2024 December 31, 2023 Specialty Products & Technologies $ 3,276.1 $ 3,277.7 Equipment & Consumables 2,282.2 2,338.6 Other 998.0 988.8 Total $ 6,556.3 $ 6,605.1 |
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 income | $ 23.6 | $ 43.8 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 29, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Amir Aghdaei [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Amir Aghdaei, our President and Chief Executive Officer, adopted a new trading plan on March 2, 2024. The plan’s maximum duration is until December 31, 2024, and first trades will not occur until June 3, 2024, at the earliest. The trading plan is intended to permit Mr. Aghdaei to exercise and sell 2,195 stock options expiring on December 31, 2024. |
Name | Amir Aghdaei |
Title | President and Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 2, 2024 |
Arrangement Duration | 211 days |
Aggregate Available | 2,195 |
Business And Basis Of Present_2
Business And Basis Of Presentation (Policies) | 3 Months Ended |
Mar. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation All revenues and costs as well as assets and liabilities directly associated with the business activity of the Company are included in the financial statements. All significant intercompany accounts and transactions between the businesses comprising the Company have been eliminated in the accompanying Condensed Consolidated Financial Statements. The Condensed Consolidated Financial Statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations; however, the Company believes that the disclosures are adequate to make the information presented not misleading. The accompanying Condensed Consolidated Financial Statements contain all adjustments (consisting of only normal recurring adjustments and reclassifications to conform to current year presentation) necessary to present fairly the financial position of the Company as of March 29, 2024 and December 31, 2023, and its results of operations and cash flows for the three month periods ended March 29, 2024 and March 31, 2023. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Consolidated Financial Statements and accompanying notes for the three years ended December 31, 2023, included in the Annual Report on Form 10-K filed by the Company with the SEC on February 15, 2024. |
Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The update requires a public business entity to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. Adoption of the ASU allows for either the prospective or retrospective application of the amendment and is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company has not yet completed its assessment of the impact of ASU 2023-09 on the Company’s Condensed Consolidated Financial Statements. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting - Improving Reportable Segment Disclosures” (Topic 280). The update is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (CODM), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. Adoption of the ASU requires retrospective application to all prior periods presented in the financial statements. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for fiscal periods after December 15, 2024 for interim periods. Early adoption is permitted. The Company has not yet completed its assessment of the impact of ASU 2023-07 on the Company’s Condensed Consolidated Financial Statements. |
Credit Losses (Tables)
Credit Losses (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Credit Loss [Abstract] | |
Allowance for Credit Loss | The rollforward of the allowance for credit losses is summarized as follows ($ in millions): Balance at December 31, 2023 $ 17.3 Foreign currency translation (0.3) Provision for credit losses 4.5 Write-offs charged against the allowance (0.8) Recoveries (0.9) Balance at March 29, 2024 $ 19.8 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The classes of inventory are summarized as follows ($ in millions): March 29, 2024 December 31, 2023 Finished goods $ 206.8 $ 196.4 Work in process 18.8 17.2 Raw materials 96.6 100.3 Reserve for inventory obsolescence (54.8) (55.1) Total $ 267.4 $ 258.8 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The classes of property, plant and equipment are summarized as follows ($ in millions): March 29, 2024 December 31, 2023 Land and improvements $ 10.0 $ 10.0 Buildings and improvements 164.7 157.4 Machinery, equipment and other assets 416.4 417.9 Construction in progress 59.9 65.3 Gross property, plant and equipment 651.0 650.6 Less: accumulated depreciation (344.8) (341.0) Property, plant and equipment, net $ 306.2 $ 309.6 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Rollforward of Goodwill | The following is a rollforward of the Company’s goodwill by segment ($ in millions): Specialty products & Technologies Equipment & Consumables Total Gross Accumulated Impairment Charges Total Gross Accumulated Impairment Charges Total Gross Accumulated Impairment Charges Total Balance at December 31, 2023 $ 2,007.0 $ (134.5) $ 1,872.5 $ 1,497.5 $ (77.8) $ 1,419.7 $ 3,504.5 $ (212.3) $ 3,292.2 Foreign currency translation (26.2) — (26.2) (6.2) — (6.2) (32.4) — (32.4) Balance at March 29, 2024 $ 1,980.8 $ (134.5) $ 1,846.3 $ 1,491.3 $ (77.8) $ 1,413.5 $ 3,472.1 $ (212.3) $ 3,259.8 |
Accrued Expenses And Other Li_2
Accrued Expenses And Other Liabilities (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Accrued expenses and other [Abstract] | |
The components of accrued expenses and other liabilities | Accrued expenses and other liabilities were as follows ($ in millions): March 29, 2024 December 31, 2023 Current Noncurrent Current Noncurrent Compensation and benefits $ 103.0 $ 24.0 $ 120.0 $ 23.1 Sales and product allowances 63.8 1.5 72.0 1.7 Contract liabilities 115.8 8.2 106.4 8.4 Taxes, income and other 54.8 42.7 39.9 44.3 Restructuring-employee severance, benefits and other 13.0 — 16.0 — Pension benefits 5.8 24.8 5.8 30.1 Loss contingencies 10.7 26.8 11.0 27.0 Other 91.7 8.7 84.6 7.8 Total $ 458.6 $ 136.7 $ 455.7 $ 142.4 |
Hedging Transactions And Deri_2
Hedging Transactions And Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative instruments, gain (loss) | The following table summarizes the notional values as of March 29, 2024 and March 31, 2023 and pretax impact of changes in the fair values of instruments designated as net investment hedges in accumulated other comprehensive loss (“OCI”) for the three months ended March 29, 2024 and March 31, 2023 ($ in millions): Notional Amount Gain Recognized in OCI Three Months Ended March 29, 2024 Foreign currency denominated debt $ 377.8 $ 8.6 Foreign currency contract 150.0 3.3 Total $ 527.8 $ 11.9 Three Months Ended March 31, 2023 Notional Amount Loss Recognized in OCI Foreign currency denominated debt $ 225.5 $ (2.8) Foreign currency contract 150.0 — Total $ 375.5 $ (2.8) |
Schedule of notional amounts of outstanding derivative positions | The following table summarizes the notional values as of March 29, 2024 and March 31, 2023 and pretax impact of changes in the fair values of instruments designated as net investment hedges in accumulated other comprehensive loss (“OCI”) for the three months ended March 29, 2024 and March 31, 2023 ($ in millions): Notional Amount Gain Recognized in OCI Three Months Ended March 29, 2024 Foreign currency denominated debt $ 377.8 $ 8.6 Foreign currency contract 150.0 3.3 Total $ 527.8 $ 11.9 Three Months Ended March 31, 2023 Notional Amount Loss Recognized in OCI Foreign currency denominated debt $ 225.5 $ (2.8) Foreign currency contract 150.0 — Total $ 375.5 $ (2.8) |
Schedule of derivative instruments in statement of financial position, fair value | The Company’s derivative instrument, as well as its non-derivative debt instrument designated and qualifying as net investment hedges, were classified in the Company’s Condensed Consolidated Balance Sheets as follows ($ in millions): March 29, 2024 December 31, 2023 Derivative liabilities: Accrued expenses and other liabilities $ — $ — Other long-term liabilities $ — $ 3.3 Nonderivative hedging instruments: Long-term debt $ 377.8 $ 386.4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and liabilities at carrying and fair value | A summary of financial assets and liabilities that are measured at fair value on a recurring basis were as follows ($ in millions): Quoted Prices in Significant Other Significant Total March 29, 2024: Liabilities: Cross-currency swap derivative contract $ — $ — $ — $ — Deferred compensation plans $ — $ 22.9 $ — $ 22.9 Contingent consideration $ — $ — $ 3.8 $ 3.8 December 31, 2023: Liabilities: Cross-currency swap derivative contract $ — $ 3.3 $ — $ 3.3 Deferred compensation plans $ — $ 21.4 $ — $ 21.4 Contingent consideration $ — $ — $ 3.8 $ 3.8 The carrying amounts and fair values of the Company’s financial instruments were as follows ($ in millions): March 29, 2024 December 31, 2023 Carrying Amount Fair Value Carrying Amount Fair Value Liabilities: Contingent consideration $ 3.8 $ 3.8 $ 3.8 $ 3.8 Cross-currency swap derivative contract $ — $ — $ 3.3 $ 3.3 Convertible senior notes due 2028 $ 487.6 $ 441.8 $ 486.9 $ 455.7 Convertible senior notes due 2025 $ 115.5 $ 135.8 $ 115.3 $ 145.1 Other debt $ 902.9 $ 902.9 $ 911.2 $ 911.2 |
Debt And Credit Facilities (Tab
Debt And Credit Facilities (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Debt Disclosure [Abstract] | |
Components of debt | The components of the Company’s debt were as follows, net of debt discount and debt issuance costs ($ in millions): March 29, 2024 December 31, 2023 Senior term loan facility due 2028 (the “2028 Term Loan”) $ 526.0 $ 525.8 Senior euro term loan facility due 2028 (the “2028 Euro Term Loan”) 376.9 385.4 Convertible senior notes due 2028 (the “2028 Convertible Notes”) 487.6 486.9 Convertible senior notes due 2025 (the “2025 Convertible Notes”) 115.5 115.3 Total debt 1,506.0 1,513.4 Less: current portion (115.5) (115.3) Long-term debt $ 1,390.5 $ 1,398.1 |
Components of convertible debt | The following table sets forth total interest expense recognized related to convertible notes ($ in millions): Three Months Ended March 29, 2024 March 31, 2023 Contractual interest expense: 2028 Convertible Notes $ 2.2 $ — 2025 Convertible Notes 0.7 3.1 Amortization of debt issuance costs: 2028 Convertible Notes 0.7 — 2025 Convertible Notes 0.2 0.7 Total interest expense $ 3.8 $ 3.8 |
Components of unamortized debt discount and issuance costs | The remaining unamortized debt issuance costs for debt outstanding were as follows ($ in millions): March 29, 2024 December 31, 2023 2028 Convertible Notes $ 12.6 $ 13.3 2025 Convertible Notes 0.8 1.0 2028 Term Loan 4.0 4.2 2028 Euro Term Loan 0.9 1.0 $ 18.3 $ 19.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The changes in accumulated other comprehensive loss by component are summarized below ($ in millions). Foreign Currency Translation Adjustments Unrealized Pension Costs Total Accumulated Other Comprehensive Loss Three Months Ended March 29, 2024 Balance, December 31, 2023 $ (223.7) $ 6.5 $ (217.2) Other comprehensive loss before reclassifications: Decrease (63.3) — (63.3) Income tax impact (2.9) — (2.9) Other comprehensive loss before reclassifications, net of income taxes (66.2) — (66.2) Amounts reclassified from accumulated other comprehensive loss: Decrease — (0.2) (0.2) Income tax impact — — — Amounts reclassified from accumulated other comprehensive loss, net of income taxes — (0.2) (0.2) Net current period other comprehensive loss, net of income taxes (66.2) (0.2) (66.4) Balance, March 29, 2024 $ (289.9) $ 6.3 $ (283.6) Foreign Currency Translation Adjustments Unrealized Pension Costs Total Accumulated Other Comprehensive Loss Three Months Ended March 31, 2023 Balance, December 31, 2022 $ (240.5) $ 15.4 $ (225.1) Other comprehensive loss before reclassifications: Increase 14.1 — 14.1 Income tax impact 0.7 — 0.7 Other comprehensive loss before reclassifications, net of income taxes 14.8 — 14.8 Amounts reclassified from accumulated other comprehensive loss: Decrease — (0.4) (0.4) Income tax impact — 0.1 0.1 Amounts reclassified from accumulated other comprehensive loss, net of income taxes — (0.3) (0.3) Net current period other comprehensive loss, net of income taxes 14.8 (0.3) 14.5 Balance, March 31, 2023 $ (225.7) $ 15.1 $ (210.6) |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue by geographical region and type | The Company defines developed markets as all markets of the world that are not emerging markets. Three Months Ended March 29, 2024 Specialty Products & Technologies Equipment & Consumables Total Geographical region: North America $ 171.1 $ 147.6 $ 318.7 Western Europe 122.3 26.0 148.3 Other developed markets 22.1 8.2 30.3 Emerging markets 93.2 33.1 126.3 Total $ 408.7 $ 214.9 $ 623.6 Three Months Ended March 31, 2023 Specialty Products & Technologies Equipment & Consumables Total Geographical region: North America $ 185.3 $ 139.4 $ 324.7 Western Europe 117.0 32.1 149.1 Other developed markets 24.0 8.6 32.6 Emerging markets 83.7 37.1 120.8 Total $ 410.0 $ 217.2 $ 627.2 |
Restructuring Activities and _2
Restructuring Activities and Related Impairments (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring reserve by type of cost | Restructuring related charges by segment were as follows ($ in millions): Three Months Ended March 29, 2024 March 31, 2023 Specialty Products & Technologies $ 3.3 $ 1.6 Equipment & Consumables 2.8 2.6 Other 0.8 0.1 Total $ 6.9 $ 4.3 Restructuring related charges were reflected in the following captions in the accompanying Condensed Consolidated Statements of Operations ($ in millions): Three Months Ended March 29, 2024 March 31, 2023 Cost of sales $ 1.7 $ 1.5 Selling, general and administrative expenses 5.2 2.8 Total $ 6.9 $ 4.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The table below presents the computation of basic and diluted earnings per share ($ and shares in millions, except per share amounts): Three Months Ended March 29, 2024 March 31, 2023 Numerator: Net income $ 23.6 $ 43.8 Denominator: Weighted-average common shares outstanding used in basic earnings per share 171.9 163.6 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive restricted stock units and performance stock units 1.1 2.8 Assumed conversion of 2025 Convertible Notes 0.4 11.0 Weighted average common shares outstanding used in diluted earnings per share 173.4 177.4 Earnings per share: Earnings - basic $ 0.14 $ 0.27 Earnings - diluted $ 0.14 $ 0.25 |
Schedule of antidilutive securities excluded from computation of earnings per share | The following table presents the number of outstanding securities not included in the computation of diluted income per share, because their effect was anti-dilutive (in millions): Three Months Ended March 29, 2024 March 31, 2023 Stock-based awards 3.5 1.8 2028 Convertible Notes 11.3 — Total 14.8 1.8 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Segment Reporting [Abstract] | |
Segment results | Segment related information is shown below ($ in millions): Three Months Ended March 29, 2024 March 31, 2023 Sales: Specialty Products & Technologies $ 408.7 $ 410.0 Equipment & Consumables 214.9 217.2 Total $ 623.6 $ 627.2 Operating profit and reconciliation to income before taxes: Specialty Products & Technologies $ 44.2 $ 71.1 Equipment & Consumables 35.6 32.5 Other (31.7) (31.5) Operating profit 48.1 72.1 Nonoperating income (expense): Other income, net 0.1 0.3 Interest expense, net (12.9) (16.7) Income before taxes $ 35.3 $ 55.7 Identifiable assets: March 29, 2024 December 31, 2023 Specialty Products & Technologies $ 3,276.1 $ 3,277.7 Equipment & Consumables 2,282.2 2,338.6 Other 998.0 988.8 Total $ 6,556.3 $ 6,605.1 |
Business And Basis Of Present_3
Business And Basis Of Presentation - Narrative (Details) | 3 Months Ended |
Mar. 29, 2024 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments (in segments) | 2 |
Credit Losses - Narrative (Deta
Credit Losses - Narrative (Details) | 3 Months Ended |
Mar. 29, 2024 segment | |
Credit Loss [Abstract] | |
Number of portfolio segments (in segments) | 1 |
Credit Losses - Allowance for C
Credit Losses - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 17.3 | |
Foreign currency translation | (0.3) | |
Provision for credit losses | 4.5 | $ 2 |
Write-offs charged against the allowance | (0.8) | |
Recoveries | (0.9) | |
Ending balance | $ 19.8 |
Inventories - Summary (Details)
Inventories - Summary (Details) - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 206.8 | $ 196.4 |
Work in process | 18.8 | 17.2 |
Raw materials | 96.6 | 100.3 |
Reserve for inventory obsolescence | (54.8) | (55.1) |
Total | $ 267.4 | $ 258.8 |
Property, Plant And Equipment_2
Property, Plant And Equipment (Details) - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 651 | $ 650.6 |
Less: accumulated depreciation | (344.8) | (341) |
Property, plant and equipment, net | 306.2 | 309.6 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 10 | 10 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 164.7 | 157.4 |
Machinery, equipment and other assets | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 416.4 | 417.9 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 59.9 | $ 65.3 |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets - Rollforward of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Dec. 31, 2023 | |
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning balance | $ 3,504.5 | |
Goodwill, beginning balance | 3,292.2 | |
Foreign currency translation | (32.4) | |
Goodwill, gross, ending balance | 3,472.1 | |
Goodwill, ending balance | 3,259.8 | |
Accumulated Impairment Charges | (212.3) | $ (212.3) |
Total | 3,259.8 | 3,292.2 |
Specialty Products & Technologies | ||
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning balance | 2,007 | |
Goodwill, beginning balance | 1,872.5 | |
Foreign currency translation | (26.2) | |
Goodwill, gross, ending balance | 1,980.8 | |
Goodwill, ending balance | 1,846.3 | |
Accumulated Impairment Charges | (134.5) | (134.5) |
Total | 1,846.3 | 1,872.5 |
Equipment & Consumables | ||
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning balance | 1,497.5 | |
Goodwill, beginning balance | 1,419.7 | |
Foreign currency translation | (6.2) | |
Goodwill, gross, ending balance | 1,491.3 | |
Goodwill, ending balance | 1,413.5 | |
Accumulated Impairment Charges | (77.8) | (77.8) |
Total | $ 1,413.5 | $ 1,419.7 |
Accrued Expenses And Other Li_3
Accrued Expenses And Other Liabilities - Summary (Details) - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Current | ||
Compensation and benefits | $ 103 | $ 120 |
Sales and product allowances | 63.8 | 72 |
Contract liabilities | 115.8 | 106.4 |
Taxes, income and other | 54.8 | 39.9 |
Restructuring-employee severance, benefits and other | 13 | 16 |
Pension benefits | 5.8 | 5.8 |
Loss contingencies | 10.7 | 11 |
Other | 91.7 | 84.6 |
Total | 458.6 | 455.7 |
Noncurrent | ||
Compensation and benefits | 24 | 23.1 |
Sales and product allowances | 1.5 | 1.7 |
Contract liabilities | 8.2 | 8.4 |
Taxes, income and other | 42.7 | 44.3 |
Restructuring-employee severance, benefits and other | 0 | 0 |
Pension benefits | 24.8 | 30.1 |
Loss contingencies | 26.8 | 27 |
Other | 8.7 | 7.8 |
Total | $ 136.7 | $ 142.4 |
Hedging Transactions And Deri_3
Hedging Transactions And Derivative Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | ||
Jan. 17, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Derivative [Line Items] | |||
Derivative notional amount | $ 527,800,000 | $ 375,500,000 | |
Amounts reclassified from accumulated other comprehensive loss, net of income taxes | 0 | 0 | |
Amount reclassified from AOCI into income | $ 0 | $ 0 | |
Cross-currency swap derivative contracts | |||
Derivative [Line Items] | |||
Derivative, term | 2 years | ||
Derivative notional amount | $ 150,000,000 |
Hedging Transactions And Deri_4
Hedging Transactions And Derivative Financial Instruments - Summary of Notional Values and Pretax Impact in Fair Values of Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | $ 527.8 | $ 375.5 |
Gain (loss) recognized in OCI | 11.9 | (2.8) |
Net investment hedging | Foreign currency denominated debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 377.8 | 225.5 |
Gain (loss) recognized in OCI | 8.6 | (2.8) |
Net investment hedging | Foreign currency contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 150 | 150 |
Gain (loss) recognized in OCI | $ 3.3 | $ 0 |
Hedging Transactions And Deri_5
Hedging Transactions And Derivative Financial Instruments - Derivative and Nonderivative Debt Instruments (Details) - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Accrued expenses and other liabilities | ||
Derivative liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
Other long-term liabilities | ||
Derivative liabilities: | ||
Derivative liabilities | 0 | 3.3 |
Long-term debt | ||
Nonderivative hedging instruments: | ||
Long-term debt | $ 377.8 | $ 386.4 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Carried at Fair Value (Details) - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Liabilities: | ||
Deferred compensation plans | $ 22.9 | $ 21.4 |
Contingent consideration | 3.8 | 3.8 |
Quoted Prices in Active Market (Level 1) | ||
Liabilities: | ||
Deferred compensation plans | 0 | 0 |
Contingent consideration | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Liabilities: | ||
Deferred compensation plans | 22.9 | 21.4 |
Contingent consideration | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Deferred compensation plans | 0 | 0 |
Contingent consideration | 3.8 | 3.8 |
Cross-currency swap derivative contracts | ||
Liabilities: | ||
Derivative liabilities | 0 | 3.3 |
Cross-currency swap derivative contracts | Quoted Prices in Active Market (Level 1) | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Cross-currency swap derivative contracts | Significant Other Observable Inputs (Level 2) | ||
Liabilities: | ||
Derivative liabilities | 0 | 3.3 |
Cross-currency swap derivative contracts | Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value 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] | ||
Contingent consideration | $ 3.8 | $ 3.8 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 3.8 | 3.8 |
Other debt | 902.9 | 911.2 |
Carrying Amount | Convertible senior notes due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible senior notes | 487.6 | 486.9 |
Carrying Amount | Convertible senior notes due 2025 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible senior notes | 115.5 | 115.3 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 3.8 | 3.8 |
Other debt | 902.9 | 911.2 |
Fair Value | Convertible senior notes due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible senior notes | 441.8 | 455.7 |
Fair Value | Convertible senior notes due 2025 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible senior notes | 135.8 | 145.1 |
Cross-currency swap derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 3.3 |
Cross-currency swap derivative contracts | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 3.3 |
Cross-currency swap derivative contracts | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ 0 | $ 3.3 |
Warranty - Narrative (Details)
Warranty - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Product warranty period | 90 days | |
Warrant liability | $ 8 | $ 9 |
Litigation And Contingencies -
Litigation And Contingencies - Narrative (Details) - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrual for legal matters | $ 37.5 | $ 38 |
Debt And Credit Facilities - Co
Debt And Credit Facilities - Components Of Debt (Details) - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,506 | $ 1,513.4 |
Less: current portion | (115.5) | (115.3) |
Long-term debt | 1,390.5 | 1,398.1 |
Senior term loan facility due 2028 (the “2028 Term Loan”) | ||
Debt Instrument [Line Items] | ||
Total debt | 526 | 525.8 |
Senior euro term loan facility due 2028 (the “2028 Euro Term Loan”) | ||
Debt Instrument [Line Items] | ||
Total debt | 376.9 | 385.4 |
Convertible Debt | Convertible senior notes due 2028 | ||
Debt Instrument [Line Items] | ||
Total debt | 487.6 | 486.9 |
Convertible Debt | Convertible senior notes due 2025 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 115.5 | $ 115.3 |
Debt And Credit Facilities - Cr
Debt And Credit Facilities - Credit Facilities (Details) | 3 Months Ended | 12 Months Ended | ||||
Mar. 29, 2024 USD ($) | Dec. 31, 2023 USD ($) | Aug. 31, 2023 USD ($) | Aug. 31, 2023 EUR (€) | Jun. 15, 2021 USD ($) | Jun. 15, 2021 EUR (€) | |
Debt Instrument [Line Items] | ||||||
Leverage ratio | 4 | |||||
Contingency provision on the ratio of indebtedness to net capital | 4.50 | |||||
Contingency provision, purchase price in excess of $100 million | $ 100,000,000 | |||||
Interest coverage ratio (at least) | 3 | |||||
Fed Funds Effective Rate Overnight Index Swap Rate | ||||||
Debt Instrument [Line Items] | ||||||
Margin spread of variable interest rate | 0.50% | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility maximum borrowing capacity | $ 750,000,000 | $ 750,000,000 | ||||
Percentage of consolidated EBITDA | 1 | 1 | ||||
Increase limit of revolving credit facility | $ 525,000,000 | |||||
Line of credit facility, outstanding borrowings | $ 0 | $ 0 | ||||
Number of days prior to convertible note maturity | 91 days | 91 days | ||||
Maturity, minimum amount outstanding | $ 250,000,000 | |||||
Debt issuance costs | 5,200,000 | |||||
Senior term loan facility due 2028 (the “2028 Term Loan”) | ||||||
Debt Instrument [Line Items] | ||||||
Term loan | 530,000,000 | |||||
Loan facility interest rates | 6.65% | 6.70% | ||||
Senior euro term loan facility due 2028 (the “2028 Euro Term Loan”) | ||||||
Debt Instrument [Line Items] | ||||||
Term loan | € | € 350,000,000 | |||||
Loan facility interest rates | 5% | |||||
Standby letters of credit | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility maximum borrowing capacity | $ 30,000,000 | 20,000,000 | ||||
Term SOFR Loans | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Credit spread adjustment | 0.0010 | |||||
Term SOFR Loans | Secured Overnight Financing Rate (SOFR) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Margin spread of variable interest rate | 0.91% | |||||
Term SOFR Loans | Secured Overnight Financing Rate (SOFR) | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Margin spread of variable interest rate | 1.625% | |||||
Base Rate Loans | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 1% | |||||
Base Rate Loans | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Margin spread of variable interest rate | 1% | |||||
Base Rate Loans | Base Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Margin spread of variable interest rate | 0% | |||||
Base Rate Loans | Base Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Margin spread of variable interest rate | 0.625% | |||||
Credit facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Facility fee | 0.09% | |||||
Credit facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Facility fee | 0.225% | |||||
Euro Term Loan Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Term loan | € | € 208,000,000 | |||||
Loan facility interest rates | 4.98% | |||||
US Term Loan Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Term loan | $ 650,000,000 |
Debt And Credit Facilities - _2
Debt And Credit Facilities - Convertible Notes (Details) $ / shares in Units, shares in Millions, $ in Millions | Aug. 10, 2023 USD ($) tradingDay $ / shares shares | May 21, 2020 USD ($) tradingDay $ / shares | Mar. 29, 2024 | Mar. 31, 2023 |
Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Converted debt, shares issued (in shares) | shares | 8.4 | |||
Convertible senior notes due 2028 | ||||
Debt Instrument [Line Items] | ||||
Conversion ratio | 0.0215942 | |||
Conversion price (in USD per share) | $ / shares | $ 46.31 | |||
Convertible senior notes due 2028 | Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Term loan | $ 65.2 | |||
Proceeds from issuance of convertible notes due 2028 | $ 485.9 | |||
Interest rate | 1.75% | |||
Redemption price | 100% | |||
Threshold percentage of stock price trigger | 130% | |||
Convertible debt, trading days (in trading days) | tradingDay | 20 | |||
Convertible debt, consecutive trading days (in trading days) | tradingDay | 30 | |||
Effective interest rate | 2.40% | |||
1.750% Convertible Senior Notes Over Allotment Option | Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Term loan | $ 500.2 | |||
2.375% convertible senior notes over allotment option | Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Term loan | $ 67.5 | |||
Convertible senior notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Conversion ratio | 0.0475862 | |||
Conversion price (in USD per share) | $ / shares | $ 21.01 | |||
Convertible senior notes due 2025 | Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Term loan | $ 517.5 | |||
Proceeds from issuance of convertible notes due 2028 | $ 502.6 | |||
Debt conversion, principal amount | 401.2 | |||
Converted amount, cash | $ 403 | |||
Interest rate | 2.375% | |||
Redemption price | 100% | |||
Threshold percentage of stock price trigger | 130% | |||
Convertible debt, trading days (in trading days) | tradingDay | 20 | |||
Convertible debt, consecutive trading days (in trading days) | tradingDay | 30 | |||
Effective interest rate | 3% |
Debt And Credit Facilities - In
Debt And Credit Facilities - Interest Expense (Details) - Convertible Debt - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Total interest expense | $ 3.8 | $ 3.8 |
Convertible senior notes due 2028 | ||
Debt Instrument [Line Items] | ||
Contractual interest expense: | 2.2 | 0 |
Amortization of debt issuance costs: | 0.7 | 0 |
Convertible senior notes due 2025 | ||
Debt Instrument [Line Items] | ||
Contractual interest expense: | 0.7 | 3.1 |
Amortization of debt issuance costs: | $ 0.2 | $ 0.7 |
Debt And Credit Facilities - If
Debt And Credit Facilities - If-Converted Value of Notes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 29, 2024 | Dec. 31, 2023 | |
Convertible senior notes due 2025 | ||
Debt Instrument [Line Items] | ||
If-converted value in excess of principal | $ 2 | $ 16.9 |
Debt And Credit Facilities - Un
Debt And Credit Facilities - Unamortized Debt Issuance Costs (Details) - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Debt issuance costs | $ 18.3 | $ 19.5 |
Convertible senior notes due 2028 | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | 12.6 | 13.3 |
Convertible senior notes due 2025 | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | 0.8 | 1 |
2028 Term Loan | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | 4 | 4.2 |
2028 Euro Term Loan | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | $ 0.9 | $ 1 |
Debt And Credit Facilities - Ca
Debt And Credit Facilities - Capped Call Transactions (Details) - 2.375% convertible senior notes, capped calls - Convertible Debt $ / shares in Units, $ in Millions | May 21, 2020 USD ($) $ / shares |
Debt Instrument [Line Items] | |
Convertible debt, stock price trigger (in USD per share) | $ 21.01 |
Conversion price (in USD per share) | $ 23.79 |
Convertible debt expense, capped calls | $ | $ 20.7 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Rollforward (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] | ||
Balance, beginning of period | $ 4,173.9 | |
Other comprehensive loss before reclassifications: | ||
Decrease | (63.3) | $ 14.1 |
Income tax impact | (2.9) | 0.7 |
Other comprehensive (loss) income before reclassifications, net of income taxes | (66.2) | 14.8 |
Amounts reclassified from accumulated other comprehensive loss: | ||
Decrease | (0.2) | (0.4) |
Income tax impact | 0 | 0.1 |
Amounts reclassified from accumulated other comprehensive loss, net of income taxes | (0.2) | (0.3) |
Total other comprehensive (loss) income, net of income taxes | (66.4) | 14.5 |
Balance, end of period | 4,140.3 | |
Accumulated Other Comprehensive Loss | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (217.2) | (225.1) |
Amounts reclassified from accumulated other comprehensive loss: | ||
Total other comprehensive (loss) income, net of income taxes | (66.4) | 14.5 |
Balance, end of period | (283.6) | (210.6) |
Foreign Currency Translation Adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (223.7) | (240.5) |
Other comprehensive loss before reclassifications: | ||
Decrease | (63.3) | 14.1 |
Income tax impact | (2.9) | 0.7 |
Other comprehensive (loss) income before reclassifications, net of income taxes | (66.2) | 14.8 |
Amounts reclassified from accumulated other comprehensive loss: | ||
Decrease | 0 | 0 |
Income tax impact | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss, net of income taxes | 0 | 0 |
Total other comprehensive (loss) income, net of income taxes | (66.2) | 14.8 |
Balance, end of period | (289.9) | (225.7) |
Unrealized Pension Costs | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning of period | 6.5 | 15.4 |
Other comprehensive loss before reclassifications: | ||
Decrease | 0 | 0 |
Income tax impact | 0 | 0 |
Other comprehensive (loss) income before reclassifications, net of income taxes | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss: | ||
Decrease | (0.2) | (0.4) |
Income tax impact | 0 | 0.1 |
Amounts reclassified from accumulated other comprehensive loss, net of income taxes | (0.2) | (0.3) |
Total other comprehensive (loss) income, net of income taxes | (0.2) | (0.3) |
Balance, end of period | $ 6.3 | $ 15.1 |
Revenue - Disaggregation by Rev
Revenue - Disaggregation by Revenue Type and Geographical Region (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Sales | $ 623.6 | $ 627.2 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 318.7 | 324.7 |
Western Europe | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 148.3 | 149.1 |
Other developed markets | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 30.3 | 32.6 |
Emerging markets | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 126.3 | 120.8 |
Specialty Products & Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 408.7 | 410 |
Specialty Products & Technologies | North America | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 171.1 | 185.3 |
Specialty Products & Technologies | Western Europe | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 122.3 | 117 |
Specialty Products & Technologies | Other developed markets | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 22.1 | 24 |
Specialty Products & Technologies | Emerging markets | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 93.2 | 83.7 |
Equipment & Consumables | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 214.9 | 217.2 |
Equipment & Consumables | North America | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 147.6 | 139.4 |
Equipment & Consumables | Western Europe | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 26 | 32.1 |
Equipment & Consumables | Other developed markets | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 8.2 | 8.6 |
Equipment & Consumables | Emerging markets | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 33.1 | $ 37.1 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) $ in Millions | Mar. 29, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 87.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 12 months |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Disaggregation of Revenue [Line Items] | |||
Remaining performance obligation | $ 87.3 | ||
Contract liability | 124 | $ 114.8 | |
Revenue recognized | $ 38.7 | $ 32.9 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-30 | |||
Disaggregation of Revenue [Line Items] | |||
Expected timing of satisfaction | 12 months | ||
Revenue Benchmark | Customer Concentration Risk | Largest customer | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 10% | 10% |
Restructuring Activities and _3
Restructuring Activities and Related Impairments - Schedule of restructuring reserve by type cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | $ 6.9 | $ 4.3 |
Cost of sales | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | 1.7 | 1.5 |
Selling, general and administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | 5.2 | 2.8 |
Specialty Products & Technologies | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | 3.3 | 1.6 |
Equipment & Consumables | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | 2.8 | 2.6 |
Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | $ 0.8 | $ 0.1 |
Restructuring Activities and _4
Restructuring Activities and Related Impairments - Narrative (Details) - USD ($) $ in Millions | Mar. 29, 2024 | Dec. 31, 2023 |
Restructuring and Related Activities [Abstract] | ||
Restructuring-employee severance, benefits and other | $ 13 | $ 16 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 33.10% | 21.40% |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) | Mar. 29, 2024 $ / shares |
Convertible senior notes due 2025 | Convertible Debt | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Dilution threshold (in USD per share) | $ 23.79 |
Earnings Per Share - Components
Earnings Per Share - Components of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income | $ 23.6 | $ 43.8 |
Denominator: | ||
Weighted-average common shares outstanding used in basic earnings per share (in shares) | 171.9 | 163.6 |
Incremental common shares from: | ||
Assumed exercise of dilutive options and vesting of dilutive restricted stock units and performance stock units (in shares) | 1.1 | 2.8 |
Assumed conversion of 2025 Convertible Notes (in shares) | 0.4 | 11 |
Weighted average common shares outstanding used in diluted earnings (loss) per share (in shares) | 173.4 | 177.4 |
Earnings per share: | ||
Earnings - basic (in USD per share) | $ 0.14 | $ 0.27 |
Earnings - diluted (in USD per share) | $ 0.14 | $ 0.25 |
Earnings Per Share - Securities
Earnings Per Share - Securities Not Included in the Computation of Diluted Loss Income per Share (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted (loss) income per share (in shares) | 14.8 | 1.8 |
Stock-based awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted (loss) income per share (in shares) | 3.5 | 1.8 |
Convertible Notes | Convertible senior notes due 2028 (the “2028 Convertible Notes”) | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted (loss) income per share (in shares) | 11.3 | 0 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 29, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments (in segments) | 2 |
Number of operating segments (in segments) | 2 |
Segment Information - Segment R
Segment Information - Segment Results (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 623.6 | $ 627.2 | |
Operating profit (loss) | 48.1 | 72.1 | |
Other income, net | 0.1 | 0.3 | |
Interest expense, net | (12.9) | (16.7) | |
Income before income taxes | 35.3 | 55.7 | |
Identifiable assets | 6,556.3 | $ 6,605.1 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Operating profit (loss) | (31.7) | (31.5) | |
Identifiable assets | 998 | 988.8 | |
Specialty Products & Technologies | |||
Segment Reporting Information [Line Items] | |||
Sales | 408.7 | 410 | |
Specialty Products & Technologies | Operating segments | |||
Segment Reporting Information [Line Items] | |||
Sales | 408.7 | 410 | |
Operating profit (loss) | 44.2 | 71.1 | |
Identifiable assets | 3,276.1 | 3,277.7 | |
Equipment & Consumables | |||
Segment Reporting Information [Line Items] | |||
Sales | 214.9 | 217.2 | |
Equipment & Consumables | Operating segments | |||
Segment Reporting Information [Line Items] | |||
Sales | 214.9 | 217.2 | |
Operating profit (loss) | 35.6 | $ 32.5 | |
Identifiable assets | $ 2,282.2 | $ 2,338.6 |