Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2020 | Feb. 18, 2021 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 1-39483 | |
Entity Registrant Name | VONTIER CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-2783455 | |
Entity Address, Address Line One | 5438 Wade Park Boulevard | |
Entity Address, Address Line Two | Suite 600 | |
Entity Address, City or Town | Raleigh | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27607 | |
City Area Code | 984 | |
Local Phone Number | 247-8308 | |
Title of 12(b) Security | Common stock, par value $0.0001 per share | |
Trading Symbol | VNT | |
Security Exchange Name | NYSE | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
ICFR Auditor Attestation Flag | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 168,546,582 | |
Entity Public Float | $ 5.4 | |
Documents Incorporated by Reference | Part III incorporates certain information by reference from the Registrant’s proxy statement for its 2021 annual meeting of stockholders to be filed pursuant to Regulation 14A within 120 days after the end of the fiscal year to which this report relates. | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Entity Central Index Key | 0001786842 |
Consolidated and Combined Balan
Consolidated and Combined Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 380.5 | $ 0 |
Accounts receivable, less allowance for credit losses of $40.5 million and $32.2 million as of December 31, 2020 and 2019, respectively | 447.1 | 490.6 |
Inventories | 233.7 | 224.1 |
Prepaid expenses and other current assets | 120.8 | 110.5 |
Total current assets | 1,182.1 | 825.2 |
Property, plant and equipment, net | 96.8 | 101.9 |
Operating lease right-of-use assets | 40.1 | 37.8 |
Long-term financing receivables, less allowance for credit losses of $44.4 million and $24.1 million as of December 31, 2020 and 2019, respectively | 233.5 | 259 |
Other intangible assets, net | 250.5 | 274.3 |
Goodwill | 1,092.1 | 1,157.8 |
Other assets | 177.9 | 172.9 |
Total assets | 3,073 | 2,828.9 |
Current liabilities: | ||
Short-term borrowings | 10.9 | 16.8 |
Trade accounts payable | 367.4 | 318.6 |
Current operating lease liabilities | 11.9 | 12.8 |
Accrued expenses and other current liabilities | 448.1 | 319.3 |
Total current liabilities | 838.3 | 667.5 |
Long-term operating lease liabilities | 30.5 | 25.2 |
Other long-term liabilities | 217.2 | 295.5 |
Long-term debt | 1,795.3 | 24.6 |
Commitments and Contingencies | ||
Equity: | ||
Preferred stock — 15,000,000 shares authorized; no par value; and none issued and outstanding | 0 | 0 |
Common stock — 1,985,000,000 and 1,000 shares authorized as of December 31, 2020 and 2019, respectively; $.0001 par value; and 168,497,098 and 1,000 shares issued and outstanding as of December 31, 2020 and 2019, respectively | 0 | 0 |
Additional paid-in capital | 7.6 | 0 |
Accumulated deficit | (13.6) | 0 |
Former Parent’s investment | 0 | 1,662.5 |
Accumulated other comprehensive income | 193.8 | 148.7 |
Total Vontier stockholders’ equity | 187.8 | 1,811.2 |
Noncontrolling interests | 3.9 | 4.9 |
Total stockholders’ equity | 191.7 | 1,816.1 |
Total liabilities and equity | $ 3,073 | $ 2,828.9 |
Consolidated and Combined Bal_2
Consolidated and Combined Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 40.5 | $ 32.2 |
Long-term financing receivable, allowance for credit losses | $ 44.4 | $ 24.1 |
Preferred stock authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock authorized (in shares) | 1,985,000,000 | 1,000 |
Common stock, par value (in dollars per shares) | $ 0.0001 | $ 0.0001 |
Common stock issued (in shares) | 168,497,098 | 1,000 |
Common stock outstanding (in shares) | 168,497,098 | 1,000 |
Consolidated and Combined State
Consolidated and Combined Statements of Earnings and Comprehensive Income - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Sales | $ 2,704,600,000 | $ 2,772,100,000 | $ 2,665,900,000 |
Cost of sales | (1,516,500,000) | (1,581,300,000) | (1,530,800,000) |
Gross profit | 1,188,100,000 | 1,190,800,000 | 1,135,100,000 |
Operating costs: | |||
Selling, general and administrative expenses | (508,400,000) | (491,300,000) | (499,300,000) |
Research and development expenses | (126,200,000) | (136,400,000) | (136,200,000) |
Impairment of goodwill | (85,300,000) | 0 | 0 |
Operating profit | 468,200,000 | 563,100,000 | 499,600,000 |
Non-operating income (expenses), net: | |||
Interest (expense) income, net | (10,000,000) | 3,300,000 | 8,400,000 |
Other non-operating income (expense), net | 2,100,000 | (600,000) | (700,000) |
Earnings before income taxes | 460,300,000 | 565,800,000 | 507,300,000 |
Provision for income taxes | (118,300,000) | (129,300,000) | (121,800,000) |
Net earnings | $ 342,000,000 | $ 436,500,000 | $ 385,500,000 |
Net earnings per share: | |||
Net earnings per share, Basic (in dollars per share) | $ 2.03 | $ 2.59 | $ 2.29 |
Net earnings per share, Diluted (in dollars per share) | $ 2.02 | $ 2.59 | $ 2.29 |
Average common stock and common equivalent shares outstanding: | |||
Average common stock and common equivalent shares outstanding, Basic (in shares) | 168.4 | 168.4 | 168.4 |
Average common stock and common equivalent shares outstanding, Diluted (in shares) | 169.4 | 168.4 | 168.4 |
Other comprehensive income (loss), net of income taxes: | |||
Foreign currency translation adjustments | $ 44,600,000 | $ 22,400,000 | $ (33,500,000) |
Other adjustments | 500,000 | 0 | 1,000,000 |
Total other comprehensive income (loss), net of income taxes | 45,100,000 | 22,400,000 | (32,500,000) |
Comprehensive income | 387,100,000 | 458,900,000 | 353,000,000 |
Sales of products | |||
Sales | 2,459,900,000 | 2,484,000,000 | 2,408,100,000 |
Cost of sales | (1,326,800,000) | (1,349,300,000) | (1,328,200,000) |
Sales of services | |||
Sales | 244,700,000 | 288,100,000 | 257,800,000 |
Cost of sales | $ (189,700,000) | $ (232,000,000) | $ (202,600,000) |
Consolidated and Combined Sta_2
Consolidated and Combined Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-In Capital | Additional Paid-In CapitalCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjusted Balance | Former Parent’s Investment | Former Parent’s InvestmentCumulative Effect, Period of Adoption, Adjustment | Former Parent’s InvestmentCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income | Accumulated Other Comprehensive IncomeCumulative Effect, Period of Adoption, Adjusted Balance | Noncontrolling Interests | Noncontrolling InterestsCumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance (in shares) at Dec. 31, 2017 | 0 | |||||||||||||||
Beginning balance at Dec. 31, 2017 | $ 1,738.8 | $ 0 | $ 0 | $ 0 | $ 1,576.1 | $ 158.8 | $ 3.9 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net earnings | 385.5 | 385.5 | ||||||||||||||
Net transfers to Former Parent | (311.9) | (311.9) | ||||||||||||||
Other comprehensive income (loss) | (32.5) | (32.5) | ||||||||||||||
Stock-based compensation expense | 13.8 | 13.8 | ||||||||||||||
Change in noncontrolling interests | $ (0.8) | (0.8) | ||||||||||||||
Exercise of common stock options and stock award distributions, net of shares for tax withholding (in shares) | 292,000 | |||||||||||||||
Ending balance (in shares) at Dec. 31, 2018 | 0 | |||||||||||||||
Ending balance at Dec. 31, 2018 | $ 1,792.9 | $ 0 | 0 | 0 | 1,663.5 | 126.3 | 3.1 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net earnings | 436.5 | 436.5 | ||||||||||||||
Net transfers to Former Parent | (299.4) | (299.4) | ||||||||||||||
Non-cash settlement of related-party borrowings | (151.2) | (151.2) | ||||||||||||||
Other comprehensive income (loss) | 22.4 | 22.4 | ||||||||||||||
Stock-based compensation expense | 13.1 | 13.1 | ||||||||||||||
Change in noncontrolling interests | $ 1.8 | 1.8 | ||||||||||||||
Exercise of common stock options and stock award distributions, net of shares for tax withholding (in shares) | 335,000 | |||||||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 1,000 | 0 | 0 | |||||||||||||
Ending balance at Dec. 31, 2019 | $ 1,816.1 | $ (16.9) | $ 1,799.2 | $ 0 | $ 0 | 0 | $ 0 | 0 | $ 0 | 1,662.5 | $ (16.9) | $ 1,645.6 | 148.7 | $ 148.7 | 4.9 | $ 4.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net earnings | 342 | 131.1 | 210.9 | |||||||||||||
Net transfers to Former Parent | (382.7) | (144.7) | (238) | |||||||||||||
Other comprehensive income (loss) | 45.1 | 45.1 | ||||||||||||||
Stock-based compensation expense | 22.5 | 6 | 16.5 | |||||||||||||
Change in noncontrolling interests | (1) | (1) | ||||||||||||||
Recapitalization (in shares) | 168,400,000 | |||||||||||||||
Consideration to Former Parent in connection with the Separation | $ (1,635) | (1,635) | ||||||||||||||
Exercise of common stock options and stock award distributions, net of shares for tax withholding (in shares) | 360,000 | 100,000 | ||||||||||||||
Exercise of common stock options and stock award distributions, net of shares for tax withholding | $ 1.6 | 1.6 | ||||||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 168,497,098 | 168,500,000 | ||||||||||||||
Ending balance at Dec. 31, 2020 | $ 191.7 | $ 0 | $ 7.6 | $ (13.6) | $ 0 | $ 193.8 | $ 3.9 |
Consolidated and Combined Sta_3
Consolidated and Combined Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Net earnings | $ 342,000,000 | $ 436,500,000 | $ 385,500,000 |
Non-cash items: | |||
Depreciation and amortization expense | 78,300,000 | 84,500,000 | 86,400,000 |
Stock-based compensation expense | 22,500,000 | 13,100,000 | 13,800,000 |
Impairment of goodwill | 85,300,000 | 0 | 0 |
Impairment charges on intangible assets | 0 | 0 | 500,000 |
Loss on disposition | 0 | 100,000 | 0 |
Gain on sale of property, net | (2,700,000) | 0 | (300,000) |
Amortization of debt issuance costs | 800,000 | 0 | 0 |
Change in accounts receivable, net | (92,800,000) | (111,900,000) | (193,600,000) |
Change in inventories | (7,000,000) | 25,300,000 | (37,900,000) |
Change in prepaid expenses and other current assets | 7,500,000 | (18,400,000) | 9,400,000 |
Change in long-term financing receivables, net | 134,700,000 | 134,600,000 | 109,200,000 |
Change in trade accounts payable | 44,100,000 | 2,000,000 | 16,000,000 |
Change in accrued expenses and other current liabilities | 114,000,000 | (33,400,000) | 26,200,000 |
Change in deferred income taxes | (35,400,000) | 12,800,000 | 5,800,000 |
Net cash provided by operating activities | 691,300,000 | 545,200,000 | 421,000,000 |
Cash flows from investing activities: | |||
Cash paid for acquisitions and equity investments, net of cash received | (9,500,000) | (2,400,000) | (80,800,000) |
Payments for additions to property, plant and equipment | (35,700,000) | (38,000,000) | (42,400,000) |
Proceeds from sale of property | 3,500,000 | 100,000 | 600,000 |
Net cash used in investing activities | (41,700,000) | (40,300,000) | (122,600,000) |
Cash flows from financing activities: | |||
Proceeds from stock option exercises | 1,600,000 | 0 | 0 |
Consideration to Former Parent in connection with the Separation, net | (1,635,000,000) | 0 | 0 |
Net (repayments of) proceeds from related-party borrowings | (23,400,000) | (190,500,000) | 16,300,000 |
Net (repayments of) proceeds from short-term borrowings | (5,300,000) | (2,500,000) | 8,800,000 |
Net transfers to Former Parent | (419,900,000) | (299,400,000) | (311,900,000) |
Proceeds from issuance of long-term debt | 1,800,000,000 | 0 | 0 |
Other financing activities | (1,900,000) | (7,400,000) | (3,700,000) |
Net cash used in financing activities | (283,900,000) | (499,800,000) | (290,500,000) |
Effect of exchange rate changes on cash and cash equivalents | 14,800,000 | (5,100,000) | (7,900,000) |
Net change in cash and cash equivalents | 380,500,000 | 0 | 0 |
Beginning balance of cash and cash equivalents | 0 | 0 | 0 |
Ending balance of cash and cash equivalents | $ 380,500,000 | $ 0 | $ 0 |
Business Overview
Business Overview | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview | NOTE 1. BUSINESS OVERVIEW Vontier Corporation (“Vontier”, the “Company”, “we”, “us” or “our”) offers critical technical equipment, components, software and services for manufacturing, repair, and servicing in the mobility infrastructure industry worldwide. The Company supplies a wide range of mobility technologies and diagnostics and repair technologies solutions spanning advanced environmental sensors, fueling equipment, field payment, hardware, remote management and workflow software, vehicle tracking and fleet management software-as-a-service solutions, professional vehicle mechanics’ and technicians’ equipment and traffic priority control systems. The Company markets its products and services to retail and commercial fueling operators, commercial vehicle repair businesses, municipal governments and public safety entities and fleet owners/operators on a global basis. Our research and development, manufacturing, sales, distribution, service and administrative facilities are located in more than 30 countries. Vontier operates through one reportable segment comprised of two operating segments: (i) mobility technologies, which is a leading worldwide provider of solutions and services focused on fuel dispensing, remote fuel management, point-of-sale and payment systems, environmental compliance, telematics and smart city solutions, and (ii) diagnostics and repair technologies, which manufactures and distributes vehicle repair tools, toolboxes and automotive diagnostic equipment and software and a full line of wheel-service equipment. Given the interrelationships of the products, technologies and customers and the resulting similar long-term economic characteristics, we meet the aggregation criteria and have combined our two operating segments into a single reportable segment. Historically, these businesses had operated as part of Fortive Corporation’s (“Fortive”) Industrial Technologies reportable segment. Separation from Fortive Corporation On October 9, 2020, Fortive completed the separation of Fortive’s Industrial Technologies businesses (the “Vontier Businesses”) through a pro rata distribution of 80.1% of the outstanding common stock of Vontier to Fortive’s stockholders (the “Separation”). To effect the Separation, Fortive distributed to its stockholders two shares of Vontier common stock for every five shares of Fortive common stock outstanding held on September 25, 2020, the record date for the distribution. The primary source of the cash on hand as of the date of Separation was due to a transfer from Fortive as part of the separation agreement. Under the terms of the separation agreement, we repaid $86.1 million to Fortive in December 2020. In connection with the Separation, Vontier and Fortive entered into various agreements to effect the Separation and provide a framework for Vontier’s relationship with Fortive after the Separation, including a transition services agreement (“TSA”), an employee matters agreement, a tax matters agreement, an intellectual property matters agreement, a Fortive Business System (“FBS”) license agreement, and a stockholder’s and registration rights agreement. These agreements will govern the separation between Vontier and Fortive of the assets, employees, liabilities and obligations (including its investments, property and employee benefits and tax-related assets and liabilities) of Fortive and its subsidiaries attributable to periods prior to, at and after Vontier’s separation and will govern certain relationships between Vontier and Fortive after the Separation. During 2020, we completed the following transaction in addition to the Separation: • Entered into a credit agreement with a syndicate of banks, consisting of a three-year, $800.0 million senior unsecured delayed-draw term facility (the “Three-Year Term Loans”), a two-year, |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | NOTE 2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying Consolidated and Combined Financial Statements present our historical financial position, results of operations, changes in equity and cash flows in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The combined financial statements for periods prior to the Separation were derived from Fortive’s consolidated financial statements and accounting records and prepared in accordance with GAAP for the preparation of carved-out combined financial statements. Through the date of the Separation, all revenues and costs as well as assets and liabilities directly associated with Vontier have been included in the combined financial statements. Prior to the Separation, the combined financial statements also included allocations of certain general, administrative, sales and marketing expenses from Fortive’s corporate office and from other Fortive businesses to the Company and allocations of related assets, liabilities, and the Former Parent’s investment, as applicable. The allocations were determined on a reasonable basis; however, the amounts are not necessarily representative of the amounts that would have been reflected in the financial statements had the Company been an entity that operated independently of Fortive during the applicable periods. Related-party allocations prior to the Separation, including the method for such allocation, are discussed further in Note 20. Related-Party Transactions. Following the Separation, the consolidated financial statements include the accounts of Vontier and those of our wholly-owned subsidiaries and no longer include any allocations from Fortive. Accordingly: • The Consolidated Balance Sheet as of December 31, 2020 consists of our balances, while the Combined Balance Sheet as of December 31, 2019 consists of the combined balances of the Vontier Businesses. • The Consolidated and Combined Statement of Earnings and Comprehensive Income for the year ended December 31, 2020 consist of our results from the date of the Separation through December 31, 2020 and the combined results of the Vontier Businesses from January 1, 2020 through the date of the Separation. The Combined Statements of Earnings and Comprehensive Income for the years ended December 31, 2019 and 2018, consist of the combined results of the Vontier Businesses. • The Consolidated and Combined Statement of Changes in Stockholders’ Equity for the year ended December 31, 2020 consists of our consolidated activity from the date of the Separation through December 31, 2020 and the combined activity of the Vontier Businesses from January 1, 2020 through the date of the Separation. The Combined Statements of Changes in Stockholders’ Equity for the years ended December 31, 2019 and 2018, consist of the combined activity of the Vontier Businesses. • The Consolidated and Combined Statement of Cash Flows for the year ended December 31, 2020 consists of our consolidated activity from the date of the Separation through December 31, 2020 and the combined activity of the Vontier Businesses from January 1, 2020 through the date of the Separation. The Combined Statements of Cash Flows for the years ended December 31, 2019 and 2018, consist of the combined activity of the Vontier Businesses. Our Consolidated and Combined Financial Statements may not be indicative of our results had we been a separate stand-alone entity throughout the periods presented, nor are the results stated herein indicative of what our financial position, results of operations and cash flows may be in the future. All significant transactions between the Company and Fortive have been included in the accompanying Consolidated and Combined Financial Statements for all periods presented. Cash transactions with Fortive prior to the Separation are reflected in the accompany Consolidated and Combined Statements of Changes in Stockholders’ Equity as “Net transfers to Former Parent” and “Consideration to Former Parent in connection with the Separation” and in the accompanying Consolidated and Combined Balance Sheets within “Former Parent’s investment”. Former Parent’s investment, which included Retained earnings (Accumulated deficit) prior to the Separation, represents Fortive’s interest in our recorded net assets prior to the Separation. In addition, the accumulated net effect of intercompany transactions between us and Fortive or Fortive affiliates for periods prior to the Separation are included in Former Parent’s investment. On October 9, 2020, in connection with the Separation, Former Parent’s investment was redesignated within Stockholders’ Equity. The Agreements include a “Wrong-Pockets Provision” that allows the parties to make adjustments to ensure the separation-related transactions were executed in accordance with the Agreements. In periods subsequent to the Separation, we may make adjustments to balances transferred at the Separation date in accordance with the Wrong-Pockets Provision. Any such adjustments are recorded through stockholders’ equity. The Consolidated and Combined Financial Statements include our accounts and the accounts of our subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. The Consolidated and Combined Financial Statements also reflect the impact of noncontrolling interests. Noncontrolling interests do not have a significant impact on our consolidated and combined results of operations, therefore net earnings and net earnings per share attributable to noncontrolling interests are not presented separately in our Consolidated and Combined Statements of Earnings and Comprehensive Income. Net earnings attributable to noncontrolling interests have been reflected in selling, general and administrative expenses (“SG&A”) and were insignificant in all periods presented. Prior to the Separation, we were dependent upon Fortive for all our working capital and financing requirements under Fortive’s centralized approach to cash management and financing of operations of its subsidiaries. With the exception of cash, cash equivalents and borrowings clearly associated with Vontier and related to the Separation, including the financial transactions described below, financial transactions relating to our business operations prior to the Separation were accounted for through Former Parent’s investment. Accordingly, none of the Former Parent’s cash, cash equivalents or debt at the corporate level was assigned to Vontier or included in the Consolidated and Combined Financial Statements for periods prior to the Separation. Reclassification A reclassification of certain prior year amounts has been made to conform to current year presentation reflecting a reclassification of $3.5 million from Long-term financing receivables less allowance for credit losses to Other assets. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We base these estimates on historical experience, the current economic environment and on various other assumptions that are believed to be reasonable under the circumstances. However, uncertainties associated with these estimates exist and actual results may differ from these estimates. Cash and Cash Equivalents We consider all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. Accounts and Financing Receivables and Allowances for Credit Losses All trade accounts and financing receivables are reported in the accompanying Consolidated and Combined Balance Sheets adjusted for any write-offs and net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from trade accounts and financing receivables portfolios. Determination of the allowances requires management to exercise judgment about the timing, frequency and severity of credit losses that could materially affect the provision for credit losses and, therefore, net earnings. The Company regularly performs detailed reviews of our portfolios to determine if an impairment has occurred and evaluate the collectability of receivables based on a combination of financial and qualitative factors that may affect customers’ ability to pay, including customers’ financial condition, collateral, debt-servicing ability, past payment experience and credit bureau information. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific reserve is recorded against amounts due to reduce the recognized receivable to the amount reasonably expected to be collected. Additions to the allowances for credit losses are charged to current period earnings and amounts determined to be uncollectible are charged directly against the allowances. Any amounts recovered on accounts that were previously written-off reduces the amounts charged to current period earnings. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional reserves would be required. The Company does not believe that accounts and financing receivables represent significant concentrations of credit risk because of the diversified portfolio of individual customers and geographical areas. We recorded $42.9 million, $38.2 million and $42.4 million of expense associated with credit losses for the years ended December 31, 2020, 2019 and 2018, respectively. Financing Receivables Prior to the adoption of Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) on January 1, 2020, we recognized an allowance for incurred losses when they were probable based on many quantitative and qualitative factors, including delinquency. After the adoption of ASU 2016-13, we estimate our allowance to reflect expected credit losses over the remaining contractual life of the asset. We pool assets with similar risk characteristics for this measurement based on attributes which includes asset type, duration, and/or credit risk rating. The future expected losses of each pool are estimated based on numerous quantitative and qualitative factors reflecting management’s estimate of collectability over the remaining contractual life of the pooled assets, including: • portfolio duration; • historical, current, and forecasted future loss experience by asset type; • historical, current, and forecasted delinquency and write-off trends; • historical, current, and forecasted economic conditions; and • historical, current, and forecasted credit risk. Expected credit losses of the assets originated during the year ended December 31, 2020, as well as changes to expected losses during the same period, are recognized in earnings for the period ended December 31, 2020. Inventory Valuation Inventories include the costs of material, labor and overhead. Domestic inventories are stated at the lower of cost or net realizable value primarily using the first-in, first-out (“FIFO”) method with certain businesses applying the last-in, first-out method (“LIFO”) to value inventory. Inventories held outside the United States are stated at the lower of cost or net realizable value primarily using the FIFO method. Property, Plant and Equipment Property, plant and equipment are carried at cost. Provisions for depreciation and amortization have been computed principally by the straight-line method based on the estimated useful lives of the depreciable assets as follows: Category Useful Life Buildings 30 years Leased assets and leasehold improvements Amortized over the lesser of the economic life of the asset or the term of the lease Machinery and equipment 3 – 10 years Estimated useful lives are periodically reviewed and, when appropriate, changes to estimates are made prospectively. Amortization of capital lease assets is included in depreciation expense as a component of SG&A. Other Assets Other assets principally include contract assets, deferred tax assets and other investments. Fair Value of Financial Instruments Our financial instruments consist primarily of accounts receivable, financing receivables, obligations under trade accounts payable and short and long-term debt. Due to their short-term nature, the carrying values for accounts receivable, trade accounts payable and short-term debt approximate fair value. Refer to Note 8. Fair Value Measurements for the fair values of our other financial instruments. Goodwill and Other Intangible Assets Goodwill and other intangible assets result from our acquisition of existing businesses. In accordance with accounting standards related to business combinations, neither goodwill nor indefinite-lived intangible assets are amortized; however, certain definite-lived identifiable intangible assets, primarily customer relationships and acquired technology, are amortized over their estimated useful lives. Refer to Note 7. Goodwill and Other Intangible Assets for additional information regarding our goodwill and other intangible assets. Goodwill arises from the purchase price for acquired businesses exceeding the fair value of tangible and intangible assets acquired less assumed liabilities. We assess the goodwill of each of our reporting units for impairment at least annually as of the first day of the fourth quarter or more frequently if events and circumstances indicate that goodwill may not be recoverable. A non-cash goodwill impairment charge of $85.3 million was recorded against our Telematics reporting unit as a result of our quantitative impairment assessment on March 27, 2020. No goodwill impairment charges were recorded for the years ended December 31, 2019 and 2018. Refer to Note 7. Goodwill and Other Intangible Assets for additional information regarding the Telematics impairment charge. When evaluating for impairment, the Company may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit or indefinite-lived intangible asset is impaired. If the Company does not perform a qualitative assessment, or if it determines that it is not more likely than not that the fair value of the reporting unit or indefinite-lived intangible asset exceeds its carrying amount, the Company will calculate the estimated fair value of the reporting unit or indefinite-lived intangible asset. The Company’s decision to perform a qualitative impairment assessment for an individual reporting unit or indefinite-lived intangible assets in a given year is influenced by a number of factors, inclusive of the size of the reporting unit's goodwill, the significance of the excess of the reporting unit's estimated fair value over carrying value at the last quantitative assessment date, the amount of time in between quantitative fair value assessments and the date of acquisition. As part of our 2020 annual impairment analysis, we elected to apply the qualitative goodwill impairment assessment guidance in ASC 350-20, Goodwill , for 4 of our 5 reporting units, which held approximately $817.1 million, or 77.2% of our total goodwill balance as of the assessment date. Factors we consider in the qualitative assessment include general macroeconomic conditions, industry and market conditions, cost factors, overall financial performance of our reporting units, events or changes affecting the composition or carrying value of the net assets of our reporting units, information related to market multiples of peer companies and other relevant entity specific events. Based on our assessment we determined on the basis of the qualitative and quantitative factors, that the fair values of the reporting units were more likely than not greater than their respective carrying values; and therefore, a quantitative test was not required. If we do not perform a qualitative assessment, goodwill impairment is determined by using a quantitative approach. We identify potential impairment by comparing the fair value of each reporting unit, determined using various valuation techniques, with the primary technique being a discounted cash flow analysis, to its carrying value. If the carrying amount of the reporting unit exceeds the fair value, an impairment loss is recognized. The Company performed a quantitative impairment test for the Telematics reporting unit during the fourth quarter of 2020. It was concluded that the estimated fair value of the Telematics reporting unit exceeded its carrying value and therefore no impairment existed. The factors used by management in its impairment analysis are inherently subject to uncertainty. If actual results are not consistent with management’s estimates and assumptions, goodwill and other intangible assets may be overstated and a charge would need to be taken against net earnings. We review identified intangible assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Determining whether an impairment loss occurred requires a comparison of the carrying amount to the sum of undiscounted cash flows expected to be generated by the asset. We also test intangible assets with indefinite lives at least annually for impairment. These analyses require management to make judgments and estimates about future revenues, expenses, market conditions and discount rates related to these assets. If actual results are not consistent with management’s estimates and assumptions, goodwill and other intangible assets may be overstated, and a charge would need to be taken against net earnings which would adversely affect our financial statements. Insurance Liabilities The Company is self-insured for certain losses related to medical claims. The Company has stop-loss coverage to limit the exposure arising from medical claims. In addition, the Company has deductible-based insurance policies for certain losses related to general liability, workers’ compensation and automobile. Debt Issuance Costs Debt issuance costs relating to the Company’s long-term debt are recorded as a direct reduction of long-term debt; these costs are deferred and amortized to interest expense using the effective interest method, over the respective terms of the related debt. Debt issuance costs relating to the Company’s revolving credit facilities are recorded in Other assets; these costs are deferred and amortized to interest expense using the straight-line method. Revenue Recognition We derive revenues primarily from the sale of products and services in the mobility technologies and diagnostics and repair technologies markets. Revenue is recognized when control of promised products or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. Product sales include revenues from the sale of products and equipment, which includes our software-as-a-service (“SaaS”) product offerings, equipment rentals, and interest income related to our financing receivables. Service sales includes revenues from extended warranties, post-contract customer support (“PCS”), maintenance contracts or services, and services related to previously sold products. Revenues associated with the Company’s interest income related to financing receivables are recognized to approximate a constant effective yield over the contract term. For revenue related to a product or service to qualify for recognition, we must have an enforceable contract with a customer that defines the goods or services to be transferred and the payment terms related to those goods or services. Further, collection of substantially all consideration for the goods or services transferred must be probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a combination of financial and qualitative factors, including the customers’ financial condition, collateral, debt-servicing ability, past payment experience and credit bureau information. Customer allowances and rebates, consisting primarily of volume discounts and other short-term incentive programs, are considered in determining the transaction price for the contract; these allowances and rebates are reflected as a reduction in the contract transaction price. Significant judgment is exercised in determining product returns, customer allowances and rebates, which are estimated based on historical experience and known trends. Most of our sales contracts contain standard terms and conditions. We evaluate contracts to identify distinct goods and services promised in the contract (performance obligations). Sometimes this evaluation involves judgment to determine whether the goods or services are highly dependent on or highly interrelated with one another, or whether such goods or services significantly modify or customize one another. Certain customer arrangements include multiple performance obligations, typically hardware, installation, training, consulting, services and/or PCS. Generally, these elements are delivered within the same reporting period, except PCS or other services. We allocate the contract transaction price to each performance obligation using the observable price that the good or service sells for separately in similar circumstances and to similar customers, and/or a residual approach when the observable selling price of a good or service is not known and is either highly variable or uncertain. Allocating the transaction price to each performance obligation sometimes requires significant judgment. Our principal terms of sale are FOB Shipping Point, or equivalent, and, as such, we primarily record revenue upon shipment as we have transferred control to the customer at that point and our performance obligations are satisfied. We evaluate contracts with delivery terms other than FOB Shipping Point and recognize revenue when we have transferred control and satisfied our performance obligations. If any significant obligation to the customer with respect to a sales transaction remains to be fulfilled following shipment (typically installation, other services noted above or acceptance by the customer), revenue recognition is deferred until such obligations have been fulfilled. Further, revenue related to separately priced extended warranty and product maintenance agreements is deferred when appropriate and recognized as revenue over the term of the agreement. Shipping and Handling Shipping and handling costs are included as a component of Cost of sales in the Consolidated and Combined Statements of Earnings and Comprehensive Income. Revenue derived from shipping and handling costs billed to customers is included in Sales in the Consolidated and Combined Statements of Earnings and Comprehensive Income. Advertising Advertising costs are expensed as incurred. Research and Development We conduct research and development activities for the purpose of developing new products, enhancing the functionality, effectiveness, ease of use and reliability of our existing products and expanding the applications for which uses of our products are appropriate. Research and development costs are expensed as incurred. Restructuring We periodically initiate restructuring activities to appropriately position our cost base relative to prevailing economic conditions and associated customer demand as well as in connection with certain acquisitions. Costs associated with restructuring actions can include one-time termination benefits and related charges in addition to facility closure, contract termination and other related activities. We record the cost of the restructuring activities when the associated liability is incurred. Refer to Note 16. Restructuring and Other Related Charges for additional information. Foreign Currency Translation and Transactions Exchange rate adjustments resulting from foreign currency transactions are recognized in Net earnings, whereas effects resulting from the translation of financial statements are reflected as a component of Accumulated other comprehensive income within stockholders’ equity. Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates and income statement accounts are translated at weighted average exchange rates. Net foreign currency transaction gains or losses were not material in any of the years presented. Accounting for Stock-Based Compensation We had no stock-based compensation plans prior to the Separation; however, certain of our employees had participated in Fortive’s stock-based compensation plans (“Fortive Plans”). The expense associated with our employees who participated in the Fortive Plans was allocated to us in the accompanying Consolidated and Combined Statements of Earnings and Comprehensive Income for the periods prior to the Separation. We account for stock-based compensation by measuring the cost of employee services received in exchange for all equity awards granted, including stock options, restricted stock units (“RSUs”) and performance stock units (“PSUs”), based on the fair value of the award as of the grant date. Stock-based compensation expense is recognized net of an estimated forfeiture rate on a straight-line basis over the requisite service period of the award. The fair value of each stock option issued was estimated on the date of the grant using the Black-Scholes option pricing model which incorporates the following assumptions to value stock-based awards: Risk-free interest rate: The risk-free rate of interest for periods within the contractual life of the option is based on a zero-coupon U.S. government instrument whose maturity period equals or approximates the option’s expected term. Volatility: Since the Company does not have sufficient history to estimate the expected volatility of its common share price, expected volatility is based on a blended approach that uses the volatility of the Company’s common stock for periods in which the Company has information and the volatility for selected reasonably similar publicly traded companies for periods in which the historical information is not available. For periods prior to the Separation and after July 2018, volatility was calculated using a blend of Fortive’s historical stock price volatility and the average historical stock price volatility of a group of Fortive’s peer companies for the expected term of the options. From July 2, 2016 through July 2018, the weighted average volatility was estimated based on an average historical stock price volatility of a group of peer companies given Fortive’s limited trading history. Dividend yield: As we have not yet issued dividends, no dividend yield has been assumed for grants since the Separation. For periods prior to the Separation, the dividend yield was calculated by dividing Fortive’s annual dividend, based on the most recent quarterly dividend rate, by Fortive’s stock price on the grant date. Expected years until exercise: The expected term of stock options granted is based on an estimate of when options will be exercised in the future. As the Company does not have sufficient history to estimate its expected term, the Company applied the simplified method of estimating the expected term of the options, as described in the SEC’s Staff Accounting Bulletins 107 and 110, as the historical experience under Fortive is not considered indicative of the expected behavior in the future. The expected term, calculated under the simplified method, is applied to all stock options which have similar contractual terms. Using this method, the expected term is determined using the average of the vesting period and the contractual life of the stock options granted. The fair value of RSUs is calculated using the closing price of Vontier common stock on the date of grant. The fair value of PSUs is calculated using a Monte Carlo pricing model. Income Taxes In accordance with GAAP, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted rates expected to be in effect during the year in which the differences reverse. Deferred tax assets generally represent items that can be used as a tax deduction or credit in our tax return in future years for which the tax benefit has already been reflected on our Consolidated and Combined Statements of Earnings and Comprehensive Income. Deferred tax liabilities generally represent items that have already been taken as a deduction on our tax return but have not yet been recognized as an expense in our Consolidated and Combined Statements of Earnings and Comprehensive Income. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income tax expense in the period that includes the enactment date. Our deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not (a likelihood of more than 50 percent) that some portion or all of the deferred tax assets will not be realized. We evaluate the realizability of deferred income tax assets for each of the jurisdictions in which we operate. If we experience cumulative pretax income in a particular jurisdiction in the three-year period including the current and prior two years, we normally conclude that the deferred income tax assets will more likely than not be realizable and no valuation allowance is recognized, unless known or planned operating developments would lead management to conclude otherwise. However, if we experience cumulative pretax losses in a particular jurisdiction in the three-year period including the current and prior two years, we then consider a series of factors in the determination of whether the deferred income tax assets can be realized. These factors include historical operating results, known or planned operating developments, the period of time over which certain temporary differences will reverse, consideration of the utilization of certain deferred income tax liabilities, tax law carryback capability in the particular country, and prudent and feasible tax planning strategies. After evaluation of these factors, if the deferred income tax assets are expected to be realized within the tax carryforward period allowed for that specific country, we would conclude that no valuation allowance would be required. To the extent that the deferred income tax assets exceed the amount that is expected to be realized within the tax carryforward period for a particular jurisdiction, we establish a valuation allowance. We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the Consolidated and Combined Financial Statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Judgment is required in evaluating tax positions and determining income tax provisions. We reevaluate the technical merits of our tax positions and may recognize an uncertain tax benefit in certain circumstances, including when: (i) a tax audit is completed; (ii) applicable tax laws change, including a tax case ruling or legislative guidance; or (iii) the applicable statute of limitations expires. We recognize potential accrued interest and penalties associated with unrecognized tax positions in income tax expense. Refer to Note 15. Income Taxes for additional information. Pension and Other Postretirement Benefit Plans We measure our pension assets and obligations to determine the funded status as of year end, and recognize an asset for an overfunded status or a liability for an underfunded status on our balance sheet. Changes in the funded status of the pension plans are recognized in the year in which the changes occur and are reported in other comprehensive income. Recently Issued Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | NOTE 3. ACQUISITIONS AND DIVESTITURES We continually evaluate potential mergers, acquisitions and divestitures that align with our strategy and expedite the evolution of our portfolio of businesses into new and attractive areas. We have completed a number of acquisitions that have been accounted for as purchases and resulted in the recognition of goodwill in our financial statements. This goodwill arises because the purchase price for each acquired business reflects a number of factors including the complimentary fit, acceleration of our strategy and synergies the business brings with respect to our existing operations, the future earnings and cash flow potential of the business, the potential to add other strategically complimentary acquisitions to the acquired business, the scarce or unique nature of the business in its markets, competition to acquire the business, the valuation of similar businesses in the marketplace (as reflected in a multiple of revenues, earnings or cash flows) and the avoidance of the time and costs which would be required (and the associated risks that would be encountered) to enhance our existing offerings to key target markets and develop new and profitable businesses. We make an initial allocation of the purchase price at the date of acquisition based on our understanding of the fair value of the acquired assets and assumed liabilities. We obtain this information during due diligence and through other sources. In the months after closing, as we obtain additional information about these assets and liabilities, including through tangible and intangible asset appraisals, and learn more about the newly acquired business, we are able to refine the estimates of fair value and more accurately allocate the purchase price. Only items identified as of the acquisition date are considered for subsequent adjustment. We make appropriate adjustments to purchase price allocations prior to completion of the applicable measurement period, as required. We did not make any acquisitions during the years ended December 31, 2020 and 2019. The following describes our acquisition activity for the year ended December 31, 2018. Completed Acquisition in 2018 Midco On December 12, 2018, the Company acquired Midco Limited (“Midco”), a privately-held, leading fuel dispensing systems and related fueling station equipment engineer and manufacturer in India, for a total purchase price of $35.9 million, net of cash acquired. Midco’s core expertise is in designing high-precision, durable, safe, and user-friendly products that enable service stations to function efficiently. Midco is headquartered in Mumbai, India, and generated annual revenues of approximately $37 million (unaudited) in 2017. We financed the acquisition with available cash and recorded $29.4 million of goodwill, which is not tax deductible. Revenue attributable to this acquisition was immaterial for the year ended December 31, 2018. The following summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for the acquisition consummated during the year ended December 31: ($ in millions) 2018 Accounts receivable $ 3.7 Inventories 3.9 Property, plant and equipment 0.4 Goodwill 29.4 Trade accounts payable (0.1) Other assets and liabilities, net (1.4) Net cash consideration $ 35.9 Transaction-related costs are recorded in Selling, general and administrative expenses in the accompanying Consolidated and Combined Statements of Earnings and Comprehensive Income and were immaterial for the acquisition closed in 2018. Pro Forma Financial Information (Unaudited) The unaudited pro forma information for the periods set forth below gives effect to the 2018 acquisition as if it had occurred as of January 1, 2018. The pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been achieved had the acquisition been consummated as of that time: ($ in millions) 2018 Sales $ 2,690.6 Net earnings $ 387.4 Other Investments On September 11, 2018, we acquired a minority interest in Tritium Holdings Pty, Ltd (“Tritium”) for $44.9 million. On September 13, 2019, we made an additional equity investment in Tritium of $4.1 million. Tritium specializes in the design and manufacture of DC fast charging solutions for electric vehicles. Established in 2001, it launched its first DC fast charger in 2014, and has since become a leading global supplier, with installations in 38 countries. Tritium offers a range of hardware, software, and services developed and designed to support the global transition to e-mobility. Our investment in Tritium is recorded in Other assets in the accompanying Consolidated and Combined Balance Sheets at cost. We have elected to use the measurement alternative for equity investments without readily determinable fair values and evaluate this investment for indicators of impairment quarterly. We did not identify events or changes in circumstances that may have a significant effect on the fair value of the investment during the year ended December 31, 2020. Divestitures On October 9, 2019, we sold our interest in Gilbarco Hungary ACIS and our Gilbarco Romania ACIS business (“ACIS”) for $1.7 million, and recognized a loss on the transactions of $0.1 million. These transactions did not meet the criteria for discontinued operations reporting, and therefore the operating results of ACIS prior to the disposition are included in continuing operations for 2019 and 2018. |
Financing Receivables
Financing Receivables | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Financing Receivables | NOTE 4. FINANCING RECEIVABLES The Company’s financing receivables are comprised of commercial purchase security agreements with the Company’s end customers (“PSAs”) and commercial loans to the Company’s franchisees (“Franchisee Notes”). Financing receivables are generally secured by the underlying tools and equipment financed. PSAs are installment sales contracts originated between the franchisee and technicians or independent shop owners which enable these customers to purchase tools and equipment on an extended-term payment plan. PSA payment terms are generally up to five years. Upon origination, the Company assumes the PSA by crediting the franchisee’s trade accounts receivable. As a result, originations of PSAs are non-cash transactions. The Company records PSAs at amortized cost. Franchisee Notes have payment terms of up to 10 years and include financing to fund business startup costs including: (i) installment loans to franchisees used generally to finance inventory, equipment, and franchise fees; and (ii) lines of credit to finance working capital, including additional purchases of inventory. Revenues associated with the Company’s interest income related to financing receivables are recognized to approximate a constant effective yield over the contract term. Accrued interest is included in Accounts receivable less allowance for credit losses and is insignificant as of December 31, 2020 and 2019. Product sales to franchisees and the related financing income is included in Cash flows from operating activities in the accompanying Consolidated and Combined Statements of Cash Flows. The components of financing receivables with payments due in less than twelve months that are recorded in Accounts receivable less allowance for credit losses on the Consolidated and Combined Balance Sheets were as follows: ($ in millions) December 31, 2020 December 31, 2019 Gross current financing receivables: PSAs $ 98.9 $ 104.6 Franchisee Notes 15.5 15.7 Current financing receivables, gross $ 114.4 $ 120.3 Allowance for credit losses: PSAs $ 15.8 $ 10.0 Franchisee Notes 6.6 7.2 Total allowance for credit losses 22.4 17.2 Total current financing receivables, net $ 92.0 $ 103.1 Net current financing receivables: PSAs, net $ 83.1 $ 94.6 Franchisee Notes, net 8.9 8.5 Total current financing receivables, net $ 92.0 $ 103.1 The components of financing receivables with payments due beyond one year were as follows: ($ in millions) December 31, 2020 December 31, 2019 Gross long-term financing receivables: PSAs $ 219.3 $ 222.9 Franchisee Notes 58.6 60.2 Long-term financing receivables, gross $ 277.9 $ 283.1 Allowance for credit losses: PSAs $ 38.5 $ 19.4 Franchisee Notes 5.9 4.7 Total allowance for credit losses 44.4 24.1 Total long-term financing receivables, net $ 233.5 $ 259.0 Net long-term financing receivables: PSAs, net $ 180.8 $ 203.5 Franchisee Notes, net 52.7 55.5 Total long-term financing receivables, net $ 233.5 $ 259.0 Net deferred origination costs were insignificant as of December 31, 2020 and 2019. As of December 31, 2020 and 2019, we had a net unamortized discount on our financing receivables of $18.4 million and $19.3 million, respectively. It is the Company’s general practice to not engage in contract or loan modifications of existing arrangements for troubled debt restructurings. In limited instances, the Company may modify certain impaired receivables with customers in bankruptcy or other legal proceedings, or in the event of significant natural disasters. Restructured financing receivables as of December 31, 2020 and 2019 were insignificant. Credit score and distributor tenure are the primary indicators of credit quality for the Company’s financing receivables. Depending on the contract, payments for financing receivables are due on a monthly or weekly basis. Weekly payments are converted into a monthly equivalent for purposes of calculating delinquency. Delinquencies are assessed at the end of each month following the monthly equivalent due date and are considered delinquent once past due. The amortized cost basis of PSAs and Franchisee Notes by origination year as of December 31, 2020 is as follows: ($ in millions) 2020 2019 2018 2017 2016 Prior Total PSAs Credit Score: Less than 400 $ 17.5 $ 10.1 $ 4.7 $ 2.1 $ 0.5 $ 0.1 $ 35.0 400-599 25.1 13.6 7.5 3.1 0.9 0.3 50.5 600-799 51.3 26.1 13.9 6.2 2.0 0.3 99.8 800+ 71.8 34.7 17.9 6.8 1.5 0.2 132.9 Total PSAs $ 165.7 $ 84.5 $ 44.0 $ 18.2 $ 4.9 $ 0.9 $ 318.2 Franchisee Notes Active distributors $ 20.5 $ 21.3 $ 9.2 $ 5.6 $ 3.1 $ 3.6 $ 63.3 Separated distributors 0.1 1.4 1.8 2.1 1.7 3.7 10.8 Total Franchisee Notes $ 20.6 $ 22.7 $ 11.0 $ 7.7 $ 4.8 $ 7.3 $ 74.1 Past Due PSAs are considered past due when a contractual payment has not been made. If a customer is making payments on its account, interest will continue to accrue. The table below sets forth the aging of the Company’s PSA balances as of: ($ in millions) 30-59 days past due 60-90 days past due Greater than 90 days past due Total past due Total not considered past due Total Greater than 90 days past due and accruing interest December 31, 2020 $ 3.5 $ 1.8 $ 7.2 $ 12.5 $ 305.7 $ 318.2 $ 7.2 December 31, 2019 3.7 1.9 7.2 12.8 314.7 327.5 7.2 Franchisee Notes are considered past due when payments have not been made for 21 days after the due date. Past due Franchisee Notes (where the franchisee had not yet separated) were insignificant as of December 31, 2020 and 2019. Uncollectable Status PSAs are deemed uncollectable and written off when they are both contractually delinquent and no payment has been received for 180 days. Franchisee Notes are deemed uncollectable and written off after a distributor separates and no payments have been received for one year. The Company stops accruing interest and other fees associated with financing receivables when (i) a customer is placed in uncollectable status and repossession efforts have begun; (ii) upon receipt of notification of bankruptcy; (iii) upon notification of the death of a customer; or (iv) other instances in which management concludes collectability is not reasonably assured. Adoption of New Accounting Standard In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, which amends the impairment model by requiring entities to use a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including financing and trade accounts receivables. On January 1, 2020, we adopted ASU 2016-13 and recognized in our Consolidated and Combined Balance Sheets, as of January 1, 2020, an increase in the allowance for trade accounts and financing receivables of $22.1 million with a corresponding net of tax adjustment to beginning Former Parent’s investment of $16.9 million. Results for reporting periods beginning January 1, 2020 reflect the adoption of ASU 2016-13, while prior period amounts were not adjusted and continue to be reported in accordance with our historical accounting practices. Refer to Note 2. Basis of Presentation and Summary of Significant Accounting Policies for a discussion of our accounting policies for financing receivables prior and subsequent to the adoption of ASU 2016-13. Volatility in overall global economic conditions and worldwide capital markets as a result of the COVID-19 pandemic may negatively impact our customers’ ability to pay and, as a result, may increase the difficulty in collecting trade accounts and financing receivables. We did not realize notable increases in loss rates and delinquencies during the year ended December 31, 2020, and given the nature of our portfolio of receivables, our historical experience during times of challenging economic conditions, and our forecasted future impact of COVID-19 on our customers’ ability to pay, we did not record material provisions for credit losses as a result of the COVID-19 pandemic during the year ended December 31, 2020. If the financial condition of our customers were to deteriorate beyond our current estimates, resulting in an impairment of their ability to make payments, we would be required to write off additional receivable balances, which would adversely impact our net earnings and financial condition. Allowance for Credit Losses related to Financing Receivables The Company calculates the allowance for credit losses considering several factors, including the aging of its financing receivables, historical credit loss and portfolio delinquency experience and current economic conditions. The Company also evaluates financing receivables with identified exposures, such as customer defaults, bankruptcy or other events that make it unlikely it will recover the amounts owed to it. In calculating such reserves, the Company evaluates expected cash flows, including estimated proceeds from disposition of collateral, and calculates an estimate of the potential loss and the probability of loss. When a loss is considered probable on an individual financing receivable, a specific reserve is recorded. The following is a rollforward of the PSAs and Franchisee Notes components of the Company’s allowances for credit losses related to financing receivables as of December 31: 2020 2019 ($ in millions) PSAs Franchisee Notes Total PSAs Franchisee Notes Total Allowance for credit losses, beginning of year $ 29.4 $ 11.9 $ 41.3 $ 29.6 $ 14.2 $ 43.8 Transition adjustment 17.5 1.0 18.5 — — — Provision for credit losses 29.3 5.9 35.2 26.4 4.5 30.9 Write-offs (32.5) (6.5) (39.0) (28.2) (7.2) (35.4) Recoveries of amounts previously charged off 2.7 0.2 2.9 1.6 0.4 2.0 Other adjustment 7.9 — 7.9 — — — Allowance for credit losses, end of year $ 54.3 $ 12.5 $ 66.8 $ 29.4 $ 11.9 $ 41.3 The ending balance as of December 31, 2020 of $66.8 million is included in the Consolidated and Combined Balance Sheets in Accounts receivable less allowance for credit losses and Long-term financing receivables less allowance for credit losses in the amounts of $22.4 million and $44.4 million, respectively. The ending balance as of December 31, 2019 of $41.3 million is included in the Consolidated and Combined Balance Sheets in Accounts receivable less allowance for credit losses and Long-term financing receivables less allowance for credit losses in the amounts of $17.2 million and $24.1 million, respectively. Allowance for Credit Losses Related to Trade Accounts Receivables The following is a rollforward of the allowance for credit losses related to the Company’s trade accounts receivables (excluding financing receivables) and the Company’s trade accounts receivable cost basis as of December 31, 2020: ($ in millions) Cost basis of trade accounts receivable as of December 31, 2020 $ 373.2 Allowance for credit losses balance as of December 31, 2019 15.0 Adoption of new accounting standard 3.6 Provision for credit losses 7.7 Write-offs (9.1) Foreign currency and other 0.9 Allowance for credit losses balance as of December 31, 2020 18.1 Net trade accounts receivable balance as of December 31, 2020 $ 355.1 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 5. INVENTORIES The classes of inventory as of December 31 are summarized as follows: ($ in millions) 2020 2019 Finished goods $ 90.3 $ 95.8 Work in process 19.9 25.2 Raw materials 123.5 103.1 Total $ 233.7 $ 224.1 As of December 31, 2020 and 2019, the difference between inventories valued at LIFO and the value of that same inventory if the FIFO method had been used was not significant. The liquidation of LIFO inventory did not have a significant impact on our results of operations in any period presented. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 6. PROPERTY, PLANT AND EQUIPMENT The classes of property, plant and equipment as of December 31 are summarized as follows: ($ in millions) 2020 2019 Land and improvements $ 6.1 $ 6.2 Buildings and leasehold improvements 65.5 57.3 Machinery and equipment 265.6 263.7 Gross property, plant and equipment 337.2 327.2 Less: accumulated depreciation (240.4) (225.3) Property, plant and equipment, net (a) $ 96.8 $ 101.9 (a) Includes property, plant and equipment, net in the United States of $74.0 million and $78.5 million as of December 31, 2020 and 2019, respectively. No interest was capitalized related to capitalized expenditures in any period. Depreciation and amortization expense related to property, plant and equipment and owned assets classified as contract costs was $49.3 million, $52.7 million and $55.8 million, respectively, for the years ended December 31, 2020, 2019 and 2018. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill are as follows: ($ in millions) Balance, January 1, 2019 $ 1,139.5 Foreign currency translation and other 18.3 Balance, December 31, 2019 1,157.8 Impairment charge (85.3) Foreign currency translation and other 19.6 Balance, December 31, 2020 $ 1,092.1 Impairment Charge The results of our fourth quarter 2019 goodwill impairment testing indicated the excess of the estimated fair value over the carrying value (expressed as a percentage of carrying value) of our Telematics reporting unit was approximately 5%, and as such, management continued to monitor the performance of Telematics during the first quarter of 2020. In connection with management’s updated forecast for the Telematics reporting unit that indicated a decline in sales and operating profit to levels lower than previously forecasted, due in large part to the impacts of the COVID-19 pandemic, we performed a quantitative impairment assessment over the Telematics reporting unit on March 27, 2020. We estimated the fair value of the Telematics reporting unit through an income approach, using the discounted cash flow method. The income approach was based on projected future (debt-free) cash flows that were discounted to present value and assumed a terminal growth value. The discount rate was based on the reporting unit’s weighted average cost of capital, taking into account market participant assumptions. Management’s revenue and profitability forecasts used in the valuation considered recent and historical performance of the reporting unit, strategic initiatives, industry trends, and the current and future expectations of the macroeconomic environment. Assumptions used in the valuation were similar to those that would be used by market participants performing independent valuations of this reporting unit. Key assumptions developed by management and used in the quantitative analysis included the following: • Near-term revenue declines in 2020 with later-term improvements over the projection period; • Improved profitability over the projection period, trending consistent with revenues; and • Market-based discount rates. We did not consider the market approach in our fair value calculation given the near-term uncertainty in the market data and forecasts of the guideline companies upon which the approach relies. As a result of the interim impairment testing performed, we concluded that the estimated fair value of our Telematics reporting unit was less than its carrying value as of March 27, 2020, and recorded a non-cash goodwill impairment charge of $85.3 million during the three months ended March 27, 2020. The charge is included in operating results and represents the accumulated impairment charges taken as of December 31, 2020. The carrying value of the Telematics reporting unit was $248.4 million as of December 31, 2020. Refer to Note 2. Basis of Presentation and Summary of Significant Accounting Policies for discussion of our annual impairment test. Intangible Assets Finite-lived intangible assets are amortized over the shorter of their legal or estimated useful lives. The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset as of December 31: 2020 2019 ($ in millions) Weighted Average Amortization Period Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Finite-lived intangibles: Patents and technology 6 years $ 75.1 $ (50.9) $ 24.2 $ 70.2 $ (44.5) $ 25.7 Customer relationships and other intangibles 7 years 277.3 (152.5) 124.8 268.0 (125.3) 142.7 Total finite-lived intangibles 352.4 (203.4) 149.0 338.2 (169.8) 168.4 Indefinite-lived intangibles: Trademarks and trade names 101.5 — 101.5 105.9 — 105.9 Total intangibles $ 453.9 $ (203.4) $ 250.5 $ 444.1 $ (169.8) $ 274.3 Total intangible amortization expense for the years ended December 31, 2020, 2019 and 2018 was $29.0 million, $31.8 million and $30.6 million, respectively. Based on the intangible assets recorded as of December 31, 2020, amortization expense is estimated to be as follows for the next five years and thereafter: ($ in millions) 2021 $ 29.3 2022 24.9 2023 23.7 2024 22.6 2025 18.8 2026 and thereafter 29.7 Total $ 149.0 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 8. FAIR VALUE MEASUREMENTS Accounting standards define fair value based on an exit price model, establish a framework for measuring fair value for assets and liabilities required to be carried at fair value and provide for certain disclosures related to the valuation methods used within the valuation hierarchy as established within the accounting standards. This hierarchy prioritizes the inputs into three broad levels as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, or other observable characteristics for the asset or liability, including interest rates, yield curves and credit risks, or inputs that are derived principally from, or corroborated by, observable market data through correlation. • Level 3 inputs are unobservable inputs based on our assumptions. 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. Financial liabilities that are measured at fair value on a recurring basis were as follows: ($ in millions) Quoted Prices Significant Other Significant Total December 31, 2020 Deferred compensation liabilities — $ 3.7 — $ 3.7 December 31, 2019 Deferred compensation liabilities — $ 14.7 — $ 14.7 Certain management employees participate in our nonqualified deferred compensation programs that permit such employees to defer a portion of their compensation, on a pretax basis, until after their termination of employment. All amounts deferred under such plans are unfunded, unsecured obligations and are presented as a component of our compensation and benefits accrual included in Other long-term liabilities in the accompanying Consolidated and Combined Balance Sheets. Participants may choose among alternative earning rates for the amounts they defer, which are primarily based on investment options within our defined contribution plans for the benefit of U.S. employees (“401(k) Programs”) (except that the earnings rates for amounts contributed unilaterally by the Company are entirely based on changes in the value of our common stock). Changes in the deferred compensation liability under these programs are recognized based on changes in the fair value of the participants’ accounts, which are based on the applicable earnings rates. Prior to the Separation, certain of our management employees participated in Fortive’s nonqualified deferred compensation programs with similar terms except that earnings rates for amounts contributed unilaterally by Fortive were entirely based on changes in the value of Fortive’s common stock. In connection with the Separation, we established a deferred compensation program which was designed to replicate Fortive’s. Accounts in Fortive’s deferred compensation programs held by Vontier employees at the time of the Separation were converted into accounts in the Vontier deferred compensation program based on the “concentration method” designed to maintain the economic value before and after the Separation date using the relative fair market value of the Fortive and Vontier common stock based on their respective closing prices as of October 8, 2020. Prior to the Separation, the entire value of the Vontier employees’ deferred compensation program accounts in Fortive’s deferred compensation programs was recorded in other long-term liabilities. Upon conversion of these accounts to the Vontier deferred compensation program, $7.6 million of deferred compensation liabilities were reclassified from Other long-term liabilities to Additional paid-in capital, representing the value of the deferred compensation that will ultimately be settled in Vontier common stock. In addition, Fortive retained a liability of approximately $4.9 million of deferred compensation liabilities related to former employees of the Vontier Businesses whose employment terminated prior to the Separation. As a result, the deferred compensation liabilities balance recorded as of December 31, 2020 does not include amounts related to such terminated employees. Because this amount had been included in our Combined Balance Sheet prior to the Separation, Fortive’s retention of the liability has been reflected as an adjustment to Former Parent’s investment. These amounts are considered non-cash financing activities for purposes of the Consolidated and Combined Statements of Cash Flows. Refer to Note 12. Employee Benefit Plans for information related to the fair value of the Company-sponsored defined benefit pension plan assets. Non-recurring Fair Value Measurements Certain assets and liabilities are carried on the accompanying Consolidated and Combined Balance Sheets at cost and are not remeasured to fair value on a recurring basis. These assets include finite-lived intangible assets, which are tested when a triggering event occurs, and goodwill and identifiable indefinite-lived intangible assets, which are tested for impairment at least annually as of the first day of the fourth quarter or more frequently if events and circumstances indicate that the asset may not be recoverable. As of December 31, 2020, assets carried on the balance sheet and not remeasured to fair value on a recurring basis were approximately $1.1 billion of goodwill and $250.5 million of identifiable intangible assets, net. Refer to Note 11. Financing for information related to the fair value of debt. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | NOTE 9. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities as of December 31 were as follows: 2020 2019 ($ in millions) Current Long-term Current Long-term Compensation, pension and post retirement benefits $ 95.9 $ 17.8 $ 75.4 $ 26.7 Claims, including self-insurance and litigation 21.0 56.8 6.4 55.5 Taxes, income and other 62.2 39.0 11.8 111.5 Deferred revenue 87.6 58.3 87.0 63.2 Sales and product allowances 38.5 — 35.1 — Warranty 37.0 17.6 56.6 0.8 Other 105.9 27.7 47.0 37.8 Total $ 448.1 $ 217.2 $ 319.3 $ 295.5 We generally accrue estimated warranty costs at the time of sale. In general, manufactured products are warrantied against defects in material and workmanship when properly used for their intended purpose, installed correctly, and appropriately maintained. Warranty period terms depend on the nature of the product and range from ninety days up to the life of the product. The amount of the accrued warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor, and in certain instances estimated property damage. The accrued warranty liability is reviewed on a quarterly basis and may be adjusted as additional information regarding expected warranty costs becomes known. The following is a rollforward of our accrued warranty liability: ($ in millions) Balance, January 1, 2019 $ 55.9 Accruals for warranties issued during the year 64.1 Settlements made (61.2) Reductions due to dispositions (1.9) Effect of foreign currency translation 0.5 Balance, December 31, 2019 $ 57.4 Accruals for warranties issued during the year 42.8 Settlements made (45.7) Effect of foreign currency translation 0.1 Balance, December 31, 2020 $ 54.6 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | NOTE 10. LEASES We determine if an arrangement is or contains a lease at inception. We have operating leases for office space, warehouses, distribution centers, research and development facilities, manufacturing locations, and certain equipment, primarily automobiles. Many leases include one option to renew, some of which include options to extend the lease for up to 15 years, and some of which include options to terminate the leases within one year. We considered options to renew in our lease terms and measurement of right-of-use assets and lease liabilities if we determined they were reasonably certain to be exercised. Operating lease cost was $22.5 million, $22.1 million, and $23.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. Short-term and variable lease cost, sublease income and cost for finance leases were immaterial for the year ended December 31, 2020. During the year ended December 31, 2020, cash paid for operating leases was $21.0 million and is included in operating cash flows. Right-of-use assets obtained in exchange for operating lease obligations were $13.6 million for the year ended December 31, 2020. The following table presents the maturity of our operating lease liabilities as of December 31, 2020: ($ in millions) 2021 $ 11.8 2022 8.2 2023 6.3 2024 4.3 2025 3.3 Thereafter 16.7 Total lease payments 50.6 Less: imputed interest (8.2) Total lease liabilities $ 42.4 As of December 31, 2020, the weighted average lease term of our operating leases was 8.6 years, and the weighted average discount rate of our operating leases was 3.1%. We primarily use our incremental borrowing rate as the discount rate for our operating leases, as we are generally unable to determine the interest rate implicit in the lease. |
Financing
Financing | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Financing | NOTE 11. FINANCING The Company had the following debt outstanding as of December 31: ($ in millions) 2020 2019 Short-term borrowings: India Credit Facility $ 10.9 $ 12.6 Other short-term borrowings and bank overdrafts — 4.2 Total short-term borrowings $ 10.9 $ 16.8 Long-term debt: Related-party loans with Former Parent $ — $ 24.6 Two-Year Term Loans 1,000.0 — Three-Year Term Loans 800.0 — Total long-term debt 1,800.0 24.6 Less: debt issuance costs (4.7) — Total long-term debt, net $ 1,795.3 $ 24.6 Debt issuance costs that have been netted against the aggregate principal amounts of the components of debt in the short-term borrowings section above are immaterial. Given the nature of the short-term borrowings, the carrying value approximates fair value at both December 31, 2020 and 2019. As of December 31, 2020, the contractual maturities of the Company’s long-term debt were as follows: ($ in millions) Term Loans 2021 $ — 2022 1,000.0 2023 800.0 2024 — 2025 — Thereafter — Total principal payments $ 1,800.0 Credit Facilities On September 29, 2020, we entered into a credit agreement (the “Credit Agreement”) with a syndicate of banks, consisting of a three-year, $800.0 million senior unsecured delayed draw term loan facility (the “Three-Year Term Loans”), a two-year, $1.0 billion senior unsecured delayed draw term loan facility (the “Two-Year Term Loans” and together with the Three-Year Term Loans, the “Term Loans”) and a three-year, $750.0 million senior unsecured multi-currency revolving credit facility, including a $25.0 million sublimit for swingline loans and a $75.0 million sublimit for the issuance of letters of credit (the “Revolving Credit Facility” and, together with the Term Loans, the “Credit Facilities”). We incurred $7.7 million in debt issuance costs which were paid by Fortive and are a non-cash activity with respect to the Consolidated and Combined Statements of Cash Flows. At the closing of the Credit Agreement, the Company did not borrow any funds under the Credit Agreement. On October 9, 2020, we drew down the full $1.8 billion available under the Term Loans. The Company used the proceeds from the Term Loans to make payments to Fortive, with $1.6 billion used as part of the consideration for the contribution of certain assets and liabilities to the Company by Fortive in connection with the Separation and with $200.0 million used as a preliminary adjustment for excess cash balances remaining with the Company. The Credit Agreement contains various affirmative and negative covenants, including financial reporting requirements and limitations on indebtedness, liens, mergers, consolidations, liquidations and dissolutions, sales of assets, dividends and other restricted payments, investments (including acquisitions) and transactions with affiliates. Certain affirmative covenants, including certain reporting requirements and requirements to establish cash dominion accounts with the administrative agent, are triggered by failing to maintain availability under the credit facility at or above specified thresholds or by the existence of an event of default under the facility. The Credit Agreement contains covenants which require a maximum consolidated leverage ratio of 3.75 to 1.0 and a minimum consolidated interest coverage ratio of 3.50 to 1.0. The Credit Agreement contains events of default customary for facilities of this nature, including, but not limited, to: (i) events of default resulting from the Borrowers’ failure or the failure of any credit party to comply with covenants (including the above-referenced financial covenants during periods in which the financial covenants are tested); (ii) the occurrence of a change of control; (iii) the institution of insolvency or similar proceedings against the Borrowers or any credit party; and (iv) the occurrence of a default under any other material indebtedness the Borrowers or any guarantor may have. Upon the occurrence and during the continuation of an event of default, subject to the terms and conditions of the Credit Agreement, the lenders will be able to declare any outstanding principal balance of our Credit Facility, together with accrued and unpaid interest, to be immediately due and payable and exercise other remedies, including remedies against the collateral, as more particularly specified in the Credit Agreement. As of December 31, 2020, the Company was in compliance with its debt covenants. We made interest payments of $5.9 million during 2020 related to the Credit Facilities. Three-Year Term Loans The Three-Year Term Loans bear interest at a variable rate equal to the London Inter-bank Offered Rate (“LIBOR”) plus a leverage-based margin which was 175.0 basis points as of December 31, 2020. The interest rate on the Three-Year Term Loans outstanding as of December 31, 2020, was 1.90% per annum and $800.0 million was outstanding and recorded as Long-term debt as of December 31, 2020. The Three-Year Term Loans mature on October 6, 2023 and we are not obligated to make repayments prior to the maturity date. We are not permitted to re-borrow once the Three-Year Term Loans are repaid and there is no further ability to draw on the facility. No repayments were made during the year ended December 31, 2020. The was no material difference between the carrying value and the estimated fair value of the debt outstanding. Two-Year Term Loans The Two-Year Term Loans bear interest at a variable rate equal to LIBOR plus a leverage-based margin which was 162.5 basis points as of December 31, 2020. The interest rate on the Two-Year Term Loans outstanding as of December 31, 2020, was 1.77% per annum and $1.0 billion was outstanding and recorded as Long-term debt as of December 31, 2020. The Two-Year Term Loans mature on October 7, 2022 and we are not obligated to make repayments prior to the maturity date. We are not permitted to re-borrow once the Two-Year Term Loans are repaid and there is no further ability to draw on the facility. No repayments were made during the year ended December 31, 2020. The was no material difference between the carrying value and the estimated fair value of the debt outstanding. Revolving Credit Facility The Revolving Credit Facility requires the Company to pay lenders a commitment fee for unused commitments of 0.15% to 0.325% based on the consolidated leverage ratio. As of December 31, 2020 there were no amounts outstanding under the Revolving Credit Facility. The Revolving Credit Facility bears interest at a variable rate equal to LIBOR plus a leverage-based margin which was 152.5 basis points as of December 31, 2020. Related-party Loans with Former Parent As part of Fortive, we engaged in intercompany financing transactions. Transactions between Fortive and the Company have been included in Long-term debt on the Combined Balance Sheets as of December 31, 2019. As of December 31, 2019, these loans had an average interest rate of approximately 1.0%. These transactions were settled during the year ended December 31, 2020. Refer to Note 20. Related-Party Transactions for additional information regarding the related-party loans with Fortive entities. Short-term Borrowings India Credit Facility The Company has a credit facility with Citibank, N.A. with borrowing capacity of up to 850.0 million Indian Rupees (or approximately $11.6 million as of December 31, 2020) to facilitate working capital needs for certain businesses in India. As of December 31, 2020, the Company had less than $1 million borrowing capacity remaining. The effective interest rate associated with outstanding borrowings was 5.75% as of December 31, 2020. Other We have entered into short-term borrowing arrangements with various banks to facilitate short-term cash flow in certain countries. Additionally, prior to separation, certain of our businesses participated in Former Parent’s cash pooling arrangements. As of December 31, 2019, certain of our businesses were in a cash overdraft position, and such overdrafts are included in Short-term borrowings on the Combined Balance Sheets. Third party debt held by Fortive and the related interest expense was not allocated to us and is not reflected in the financial statements for periods prior to the Separation. The interest rate associated with the Company’s other short-term borrowings and bank overdrafts as of December 31, 2019 was 9.0%. Interest payments associated with the above short-term borrowings were immaterial for the years ended December 31, 2020, 2019 and 2018. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Defined Benefit Pension Plans Certain employees participate in noncontributory defined benefit pension plans. In general, our policy is to fund these plans based on considerations relating to legal requirements, underlying asset returns, the plan’s funded status, the anticipated deductibility of the contribution, local practices, market conditions, interest rates and other factors. The pension benefit obligations of our plans were $21.3 million and $18.2 million as of December 31, 2020 and 2019, respectively. The fair value of the plan assets of our plans was $8.6 million and $7.7 million as of December 31, 2020 and 2019, respectively, and include the use of Level 1 and Level 2 inputs in determining the fair value. As of December 31, 2020, and 2019, the underfunded status of the plans was $12.7 million and $10.5 million, respectively, and was included in the Consolidated and Combined Balance Sheets in accordance with the funded status of the plan. For plans where the plan assets were greater than the obligations, the net balance is included in Other assets. For plans where the obligations are greater than the plan assets, the net balance is recorded in Accrued expenses and other current liabilities and Other long-term liabilities. The assumptions used in calculating the benefit obligations for the plans are dependent on the local economic conditions and were measured as of December 31, 2020 and 2019. The net periodic benefit costs were approximately $0.6 million, $0.7 million and $0.9 million for the years ended December 31, 2020, 2019 and 2018, respectively. Defined Contribution Plans We administer and maintain 401(k) Programs. Contributions are determined based on a percentage of compensation. For the years ended December 31, 2020, 2019 and 2018, we recognized compensation expense for our participating U.S. employees in the 401(k) Programs totaling $39.5 million, $14.9 million and $14.3 million, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | NOTE 13. ACCUMULATED OTHER COMPREHENSIVE INCOME Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. The changes in accumulated other comprehensive income by component are summarized below: ($ in millions) Foreign Other adjustments (b) Total Balance, January 1, 2018 $ 164.8 $ (6.0) $ 158.8 Other comprehensive income (loss) before reclassifications: Increase (decrease) (33.5) 0.5 (33.0) Other comprehensive income (loss) before reclassifications, net of income taxes (33.5) 0.5 (33.0) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 0.5 (a) 0.5 Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes: — 0.5 0.5 Net current period other comprehensive income (loss): (33.5) 1.0 (32.5) Balance, December 31, 2018 $ 131.3 $ (5.0) $ 126.3 Other comprehensive income (loss) before reclassifications: Increase (decrease) 22.4 (0.4) 22.0 Other comprehensive income (loss) before reclassifications, net of income taxes 22.4 (0.4) 22.0 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 0.4 (a) 0.4 Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.4 0.4 Net current period other comprehensive income (loss) 22.4 — 22.4 Balance, December 31, 2019 $ 153.7 $ (5.0) $ 148.7 Other comprehensive income (loss) before reclassifications: Increase (decrease) 44.6 — 44.6 Other comprehensive income (loss) before reclassifications, net of income taxes 44.6 — 44.6 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 0.5 (a) 0.5 Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes: — 0.5 0.5 Net current period other comprehensive income (loss) 44.6 0.5 45.1 Balance, December 31, 2020 $ 198.3 $ (4.5) $ 193.8 (a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost. (b) Includes balances relating to defined benefit plans, supplemental executive retirement plans and other postretirement employee benefit plans. |
Sales
Sales | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Sales | NOTE 14. SALES Refer to a discussion of our significant accounting policies regarding sales in Note 2. Basis of Presentation and Summary of Significant Accounting Policies. Contract Assets In certain circumstances, we record contract assets which include unbilled amounts typically resulting from sales under contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is not only subject to the passage of time. Contract assets were $9.0 million and $12.8 million as of December 31, 2020 and 2019, respectively, and are included in Prepaid expenses and other current assets. Contract Costs We incur direct incremental costs to obtain certain contracts, typically sales-related commissions and costs associated with assets used by our customers in certain service arrangements. As of December 31, 2020 and 2019, we had $81.2 million and $95.2 million, respectively, in net revenue-related capitalized contract costs primarily related to assets used by our customers in certain software contracts, which are recorded in Prepaid expenses and other current assets, for the current portion, and Other assets, for the noncurrent portion, in the accompanying Consolidated and Combined Balance Sheets. These assets have estimated useful lives between 3 and 5 years and are amortized on a straight-line basis. Impairment losses recognized on our revenue-related capitalized contract costs were immaterial during both the years ended December 31, 2020 and 2019. Contract Liabilities The Company’s contract liabilities consist of deferred revenue generally related to post contract support (“PCS”) and extended warranty sales. In these arrangements, the Company generally receives up-front payment and recognizes revenue over the support term of the contracts. Deferred revenue is classified as current or noncurrent based on the timing of when revenue is expected to be recognized. The Company’s contract liabilities consisted of the following as of December 31: ($ in millions) 2020 2019 Deferred revenue - current $ 87.6 $ 87.0 Deferred revenue - noncurrent 58.3 63.2 Total contract liabilities $ 145.9 $ 150.2 In the year ended December 31, 2020, the Company recognized $63.3 million of revenue related to the Company’s contract liabilities at January 1, 2020. The change in contract liabilities from December 31, 2019 to December 31, 2020 was primarily due to the timing of cash receipts and sales of PCS and extended warranty services. Remaining Performance Obligations Remaining performance obligations represent the transaction price of firm, noncancelable orders and the average contract value for software-as-a-service contracts, with expected customer delivery dates beyond one year from December 31, 2020 for which work has not been performed. The Company has excluded performance obligations with an original expected duration of one year or less. Performance obligations as of December 31, 2020 are $407.5 million, the majority of which are related to the annual contract value of software-as-a-service contracts. The Company expects approximately 35 percent of the remaining performance obligations will be fulfilled within the next two years, 65 percent with the next three years, and substantially all within four years. Disaggregation of Revenue We disaggregate revenue from contracts with customers by sales of product and services, geographic location, solution and major product group, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Disaggregation of revenue is as follows for the years ended December 31: ($ in millions) 2020 2019 2018 Sales: Sales of products $ 2,459.9 $ 2,484.0 $ 2,408.1 Sales of services 244.7 288.1 257.8 Total $ 2,704.6 $ 2,772.1 $ 2,665.9 Geographic: North America (a) $ 1,898.3 $ 1,875.5 $ 1,751.8 Western Europe 255.7 275.5 288.4 High-growth markets 432.9 499.4 500.0 Rest of world 117.7 121.7 125.7 Total $ 2,704.6 $ 2,772.1 $ 2,665.9 Solution: Retail fueling hardware $ 822.9 $ 851.2 $ 757.4 Auto repair 526.9 555.4 562.3 Service and other recurring revenue 445.3 466.7 433.6 Environmental 235.7 281.6 281.7 Retail solutions 375.9 294.9 281.4 Software-as-a-service 181.6 195.5 215.8 Smart cities 32.4 38.0 38.1 E-mobility 24.2 2.1 — Other 59.7 86.7 95.6 Total $ 2,704.6 $ 2,772.1 $ 2,665.9 Major Product Group: Mobility technologies $ 2,087.5 $ 2,134.2 $ 2,026.3 Diagnostics and repair technologies 617.1 637.9 639.6 Total $ 2,704.6 $ 2,772.1 $ 2,665.9 (a) Includes sales in the United States of $1,843.2 million, $1,811.8 million, and $1,668.6 million for the years ended December 31, 2020, 2019, and 2018, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 15. INCOME TAXES Separation from Fortive Prior to the Separation, our operating results were included in Fortive’s various consolidated U.S. federal and certain state income tax returns, as well as certain non-U.S. returns. For periods prior to the Separation, our combined financial statements reflect income tax expense and deferred tax balances as if we had filed tax returns on a standalone basis separate from Fortive. The separate return method applies the accounting guidance for income taxes to the standalone financial statements as if we were a separate taxpayer and a standalone enterprise for the periods prior to the Separation. For periods prior to the Separation, our pretax operating results include any transactions with Fortive as if it were an unrelated party. In connection with the Separation, we entered into agreements with Fortive, including a Tax Matters Agreement. The Tax Matters Agreement distinguishes between the treatment of tax matters for “joint” filings compared to “separate” filings prior to the Separation. “Joint” filings are returns, such as the United States federal return, that include operations from both Fortive legal entities and the Company. By contrast, “separate” filings are tax returns (primarily U.S. state returns and non U.S. returns), that exclusively include either Fortive’s or the Company’s operations, respectively. In accordance with the Tax Matters Agreement, the Company is liable for and has indemnified Fortive against all income tax liabilities involving “separate” filings for periods prior to the Separation. Earnings and Income Taxes Earnings (losses) before income taxes for the years ended December 31 were as follows: ($ in millions) 2020 2019 2018 United States $ 496.8 $ 510.9 $ 460.7 Non-U.S. (36.5) 54.9 46.6 Total $ 460.3 $ 565.8 $ 507.3 The provision (benefit) for income taxes for the years ended December 31 were as follows: ($ in millions) 2020 2019 2018 Current: Federal U.S. $ 122.9 $ 80.2 $ 71.2 Non-U.S. 19.8 19.5 25.5 State and local 18.4 16.8 19.3 Deferred: Federal U.S. (33.3) 13.2 8.9 Non-U.S. (8.4) (1.1) (3.7) State and local (1.1) 0.7 0.6 Income tax provision $ 118.3 $ 129.3 $ 121.8 Deferred Tax Assets and Liabilities All deferred tax assets and liabilities have been classified as noncurrent and are included in Other assets and Other long-term liabilities in the accompanying Consolidated and Combined Balance Sheets. Deferred income tax assets and liabilities as of December 31 were as follows: ($ in millions) 2020 2019 Deferred Tax Assets: Allowance for credit losses $ 22.9 $ 12.6 Financing receivables — 4.6 Operating lease liabilities 10.2 8.7 Inventories 6.3 6.9 Pension benefits 0.6 0.8 Other accruals and prepayments 23.2 25.9 Deferred revenue 9.5 6.3 Warranty services 12.6 12.3 Stock-based compensation expense 6.7 4.3 Tax credit and loss carryforwards 29.0 34.4 Other 4.0 — Valuation allowances (22.4) (29.7) Total deferred tax assets 102.6 87.1 Deferred Tax Liabilities: Property, plant and equipment (8.6) (8.0) Operating lease right-of-use assets (9.4) (8.7) Insurance, including self-insurance (18.3) (78.2) Goodwill and other intangibles (66.2) (75.7) Other (4.4) 0.4 Total deferred tax liabilities (106.9) (170.2) Net deferred tax liability $ (4.3) $ (83.1) Applying the valuation allowance methodology discussed in Note 2. Basis of Presentation and Summary of Significant Accounting Policies, valuation allowances have been established for certain deferred income tax assets to the extent they are not expected to be realized within the particular tax carryforward period. The Company’s valuation allowance decreased by $7.3 million during the current year, primarily related to the write off of foreign tax credit carryforwards with a full valuation allowance that had been recorded under the separate return methodology utilized in the carve out financial statements as of December 31, 2019 that were retained by Fortive with the Separation. As of December 31, 2020, the Company has federal, various state, and foreign net operating losses in the amounts of $1.8 million, $25.8 million, and $123.1 million, respectively. These net operating loss carryforwards have various expiration periods beginning in 2022. As of December 31, 2020, the Company had foreign tax credit carryforwards of $0.3 million and state tax credit carryforwards of $0.6 million, which begin to expire in 2030 and 2027, respectively. Effective Income Tax Rate The effective income tax rate for the years ended December 31 varies from the U.S. statutory federal income tax rate as follows: Percentage of Pretax Earnings 2020 2019 2018 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) in tax rate resulting from: State income taxes (net of federal income tax benefit) 3.1 % 2.8 % 3.1 % Non-U.S. income taxed at different rate than U.S. statutory rate 4.0 % 0.8 % 2.2 % Foreign derived intangible income taxation (1.6) % (1.5) % (1.8) % Goodwill impairment 1.1 % — % — % Compensation related — % (0.8) % (0.5) % Non-taxable income (3.3) % — % — % Uncertain tax positions 1.5 % 0.5 % — % Other (0.1) % — % — % Effective income tax rate 25.7 % 22.8 % 24.0 % Our effective tax rate for 2020, 2019, and 2018 differs from the U.S. federal statutory rate of 21.0% due primarily to the effect of state taxes and foreign taxable earnings at a rate different from the U.S. federal statutory rate. Additionally, in 2020, there is a favorable impact related to non-taxable income which is partially offset by nondeductible book goodwill impairments and uncertain tax position accruals. Following the Separation, we made income tax payments of $4.6 million. Prior to the Separation, we did not make any income tax payments related to “joint” tax returns as these liabilities were the responsibility of Fortive. Vontier did make income tax payments related to “separate” tax returns for which it was responsible. We recorded, through Net Parent investment, $1.4 million to establish the net income tax receivable as of the Separation. Unrecognized Tax Benefits As of December 31, 2020, gross unrecognized tax benefits were $17.4 million ($18.9 million total, including $2.8 million associated with interest and penalties, and net of the impact of $1.3 million of indirect tax benefits). As of December 31, 2019, gross unrecognized tax benefits were $14.5 million ($14.2 million total, including $2.7 million associated with interest and penalties, and net of the impact of $3.0 million of indirect tax benefits). We recognized approximately $0.3 million, $0.2 million, and $0.2 million in potential interest and penalties associated with uncertain tax positions during the years ended December 31, 2020, 2019, and 2018, respectively. To the extent taxes are not assessed with respect to uncertain tax positions, substantially all amounts accrued (including interest and penalties and net of indirect offsets) will be reduced and reflected as a reduction of the overall income tax provision. Unrecognized tax benefits and associated accrued interest and penalties are included in our income tax provision. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding amounts accrued for potential interest and penalties, is as follows as of December 31: ($ in millions) 2020 2019 2018 Unrecognized tax benefits, beginning of year $ 14.5 $ 11.5 $ 11.3 Additions based on tax positions related to the current year 8.5 0.4 0.2 Additions for tax positions of prior years 0.5 2.6 — Reductions for tax positions of prior years (0.6) — — Lapse of statute of limitations (0.3) — — Settlements (2.1) — — Effect of foreign currency translation 0.3 — — Separation-related adjustments (3.4) — — Unrecognized tax benefits, end of year $ 17.4 $ 14.5 $ 11.5 We are routinely examined by various domestic and international taxing authorities. The amount of income taxes we pay is subject to audit by federal, state and foreign tax authorities, which may result in proposed assessments. The Company is subject to examination in the United States, various states and foreign jurisdictions. In accordance with the Tax Matters Agreement with Fortive, the Company is liable for taxes arising from examinations of the following; (i) the Company’s initial U.S. federal taxable year October 9, 2020 through December 31, 2020; (ii) separate company state tax returns for all periods; (iii) joint state tax returns for the period October 9, 2020 through December 31, 2020; (iv) international separate company returns for all periods; and (v) joint international tax returns that include only Vontier legal entities for all periods. We review our global tax positions on a quarterly basis. Based on these reviews, the results of discussions and resolutions of matters with certain tax authorities, tax rulings and court decisions and the expiration of statutes of limitations reserves for contingent tax liabilities are accrued or adjusted as necessary. The Company does not believe that the total amount of unrecognized tax benefits will change by a material amount within the next 12 months due to the settlement of audits and expirations of statutes of limitations. Pursuant to U.S. tax law, the Company’s initial U.S. federal income tax return is for the short taxable year October 9, 2020 through December 31, 2020. We expect to file our initial U.S. federal income tax return for the 2020 short tax year with the Internal Revenue Service (“IRS”) during 2021. Therefore, the IRS has not yet begun examination of the Company. The Company remains subject to tax audit for its separate company tax returns in various U.S. states for the tax years 2011 to 2020. Our operations in certain foreign jurisdictions remain subject to routine examination for the tax years 2007 to 2020. Repatriation and Unremitted Earnings As of December 31, 2020, the Company’s undistributed earnings of its foreign subsidiaries are intended to be permanently reinvested in non-U.S. operations. The operating plans, budgets and forecasts, and long-term and short-term financial requirements of the parent company and the subsidiaries indicate that there is no current or known future need to distribute cash from our foreign subsidiaries to Vontier Corporation for any purpose. Therefore, no U.S. deferred taxes have been recorded. A determination of the amount of the unrecognized deferred tax liability related to these undistributed earnings is not practicable due to the complexity and variety of assumptions necessary based on the manner in which the undistributed earnings would be repatriated. |
Restructuring and Other Related
Restructuring and Other Related Charges | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Charges | NOTE 16. RESTRUCTURING AND OTHER RELATED CHARGES Restructuring and other related charges for the years ended December 31 were as follows: ($ in millions) 2020 2019 2018 Employee severance related $ 4.9 $ 6.1 $ 2.0 Facility exit and other related — 0.1 — Impairment charges — — 0.5 Total restructuring and other related charges $ 4.9 $ 6.2 $ 2.5 Substantially all restructuring activities initiated in 2020 were completed by December 31, 2020. We expect substantially all cash payments associated with remaining termination benefits recorded in 2020 will be paid during 2021. Substantially all planned restructuring activities related to the 2019 and 2018 plans have been completed. Impairment charges relate to certain intangible assets. The nature of our restructuring and related activities initiated in the years ended December 31, 2020, 2019 and 2018 focused on improvements in operational efficiency through targeted workforce reductions and facility consolidations and closures. We incurred these costs to provide superior products and services to our customers in a cost efficient manner, and taking into consideration broad economic uncertainties. The table below summarizes the accrual balance and utilization by type of restructuring cost associated with our restructuring actions: ($ in millions) Balance as of January 1, 2019 Costs Paid/ Balance Costs Paid/ Balance as of December 31, 2020 Employee severance and related $ 1.7 $ 6.1 $ (3.3) $ 4.5 $ 4.9 $ (6.1) $ 3.3 Facility exit and other related 0.1 0.1 — 0.2 — (0.2) — Total $ 1.8 $ 6.2 $ (3.3) $ 4.7 $ 4.9 $ (6.3) $ 3.3 The restructuring and other related charges incurred during the years ended December 31, 2020 and 2019 were cash charges. The restructuring and other related charges incurred during 2018 included cash charges of $2.0 million and $0.5 million of noncash charges. These charges are reflected in the following captions in the accompanying Consolidated and Combined Statements of Earnings and Comprehensive Income for the years ended December 31: ($ in millions) 2020 2019 2018 Cost of sales $ 0.2 $ 2.0 $ 0.4 Selling, general and administrative expenses 4.7 4.2 2.1 Total $ 4.9 $ 6.2 $ 2.5 |
Litigation and Contingencies
Litigation and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Contingencies | NOTE 17. LITIGATION AND CONTINGENCIES Litigation We are, from time to time, subject to a variety of litigation and other proceedings incidental to our business, including lawsuits involving claims for damages arising out of the use of our products, software and services; claims relating to intellectual property matters, employment matters, commercial disputes, product liability (including asbestos exposure claims) and personal injury; as well as regulatory investigations or enforcement. We may also become subject to lawsuits as a result of past or future acquisitions, or as a result of liabilities retained from, or representations, warranties or indemnities provided in connection with divested businesses. Some of these lawsuits may include claims for punitive and consequential as well as compensatory damages. Based upon our experience, current information and applicable law, we do not believe that these proceedings and claims will have a material adverse effect on our financial position, results of operations or cash flows. In accordance with accounting guidance, the Company records a liability in the Consolidated and Combined Financial Statements for loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss does not meet the known or probable level but is reasonably possible and a loss or range of loss can be reasonably estimated, the estimated loss or range of loss is disclosed. These reserves consist of specific reserves for individual claims and additional amounts for anticipated developments of these claims as well as for incurred but not yet reported claims. The specific reserves for individual known claims are quantified with the assistance of legal counsel and outside risk insurance professionals where appropriate. In addition, outside risk insurance professionals may assist in the determination of reserves for incurred but not yet reported claims through evaluation of our specific loss history, actual claims reported, and industry trends among statistical and other factors. Reserve estimates are adjusted as additional information regarding a claim becomes known. While we actively pursue financial recoveries from insurance providers, the Company does not recognize any recoveries until realized or until such time as a sustained pattern of collections is established related to historical matters of a similar nature and magnitude. If risk insurance reserves the Company has established are inadequate, we would be required to incur an expense equal to the amount of the loss incurred in excess of the reserves, which would adversely affect our net earnings. In connection with the recognition of liabilities for asbestos-related matters, the Company records insurance recoveries that are deemed probable and estimable. In assessing the probability of insurance recovery, we make judgments concerning insurance coverage that we believe are reasonable and consistent with our historical dealings, our knowledge of any pertinent solvency issues surrounding insurers, and litigation and court rulings potentially impacting coverage. While the substantial majority of our insurance carriers are solvent, some of our individual carriers are insolvent, which has been considered in the analysis of probable recoveries. Projecting future events is subject to various uncertainties, including litigation and court rulings potentially impacting coverage, that could cause insurance recoveries on asbestos-related liabilities to be higher or lower than those projected and recorded. Given the inherent uncertainty in making future projections, the Company reevaluates projections concerning the Company’s probable insurance recoveries considering any changes to the projected liabilities, the Company’s recovery experience or other relevant factors that may impact future insurance recoveries. We recorded gross liabilities associated with known and future expected asbestos claims of $68.0 million and $54.4 million as of December 31, 2020 and 2019, respectively. Known and future expected asbestos claims of $17.5 million and $5.6 million are included in Accrued expenses and other current liabilities on the Consolidated and Combined Balance Sheets as of December 31, 2020 and 2019, respectively. Known and future expected asbestos claims of $50.5 million and $48.8 million are included in Other long-term liabilities on the Consolidated and Combined Balance Sheets as of December 31, 2020 and 2019, respectively. We recorded the related projected insurance recoveries of $36.0 million and $24.9 million as of December 31, 2020 and 2019, respectively. Insurance recoveries in the accompanying Consolidated Balance Sheet as of December 31, 2020 include $10.8 million in Prepaid expenses and other current assets and $25.2 million in Other assets. Insurance recoveries in the accompanying Combined Balance Sheet as of December 31, 2019 include $3.9 million in Prepaid expenses and other current assets and $21.0 million in Other assets. Guarantees As of December 31, 2020 and 2019, we had guarantees consisting primarily of outstanding standby letters of credit, bank guarantees, and performance and bid bonds of $84.5 million and $36.7 million, respectively. These guarantees have been provided in connection with certain arrangements with vendors, customers, financing counterparties, and governmental entities to secure our obligations and/or performance requirements related to specific transactions. We believe that if the obligations under these instruments were triggered, they would not have a material effect on our financial statements. On February 22, 2019, Fortive issued $1.4 billion in aggregate principal amount of its 0.875% Convertible Senior Notes due 2022 (the “Convertible Notes”). Certain of our subsidiaries had issued unconditional guarantees, on a joint and several unsecured basis, with respect to Fortive’s outstanding Convertible Notes and continued to guarantee such Convertible Notes until Fortive ceased to own a majority of the subsidiaries’ common stock. Following the distribution, on October 9, 2020, the unconditional guarantees provided by our subsidiaries were terminated. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | NOTE 18. STOCK-BASED COMPENSATION We had no stock-based compensation plans prior to the Separation; however, certain of our employees participated in the Fortive Plans, which provided for the grants of stock options and RSUs. Prior to the Separation, Fortive allocated stock-based compensation expense to the Company based on Vontier employees participating in the Fortive Plans. This is reflected in the accompanying Consolidated and Combined Statements of Earnings and Comprehensive Income for the period prior to the Separation. In connection with the Separation and the related employee matters agreement, the Company adopted the 2020 Stock Incentive Plan (the “Stock Plan”) that became effective upon the Separation. Outstanding equity awards of Fortive held by our employees at the separation date (the “Converted Awards”) were converted into or replaced with Vontier equity awards (the “Conversion Awards”) under the Stock Plan based on the “concentration method,” and were adjusted to maintain the economic value immediately before and after the distribution date using the relative fair market value of Fortive common stock based on the Fortive “regular-way” close price as of October 8, 2020 and the Vontier “when-issued” trading price as of October 8, 2020. Other than replacement equity awards of Vontier issued in replacement of Fortive’s restricted stock units and stock options, the terms of the converted or replacement equity awards of Vontier (e.g. vesting date and expiration date) continued unchanged. Incremental stock-based compensation expense recorded as a result of this equity award conversion was $2.0 million and will be recognized over the remaining service period. The Stock Plan provides for the grant of stock appreciation rights, restricted stock units (“RSUs”), performance stock units (“PSUs”), performance-based restricted stock awards (“RSAs”) and performance stock awards (“PSAs”) (collectively, “Stock Awards”), stock options or any other stock-based award. A total of 17.0 million shares of our common stock have been authorized for issuance under the Stock Plan and as of December 31, 2020, approximately 11 million shares of our common stock remain available for issuance under the Stock Plan. Stock options under the Stock Plan generally vest pro rata over a five-year period and terminate 10 years from the grant date, though the specific terms of e ach grant are determined by the Compensation Committee of our Board of Directors. Our executive officers and certain other employees may be awarded stock options with different vesting criteria and stock options granted to non-employee directors are fully vested as of the grant date. Exercise prices for stock options granted under the Stock Plan were equal to the closing price of Vontier’s common stock on the NYSE on the date of grant, while stock options issued as Conversion Awards were priced to maintain the economic value before and after the Separation. RSUs issued under the Stock Plan provide for the issuance of common stock at no cost to the holder. RSUs granted to employees under the Stock Plan generally provide for time-based vesting over five years, although certain employees may be awarded RSUs with different time-based vesting criteria. RSUs granted to non-employee directors under the Stock Plan vest on the earlier of the first anniversary of the grant date or the date of, and immediately prior to, the next annual meeting of our shareholders following the grant date. Prior to vesting, RSUs granted under the Stock Plan do not have dividend equivalent rights, do not have voting rights and the shares underlying the RSUs are not considered issued or outstanding. In December 2020, PSUs were granted under the Stock Plan as Conversion Awards that vest based on our total shareholder return ranking relative to the S&P 500 Index. Stock awards generally vest only if the employee is employed by us (or in the case of directors, the director continues to serve on the Board) on the vesting date. To cover the exercise of stock options, vesting of RSUs and issuances of PSUs, we generally issue shares authorized but previously unissued. Stock-based Compensation Expense Stock-based compensation has been recognized as a component of Selling, general, and administrative expense in the accompanying Consolidated and Combined Statements of Earnings and Comprehensive Income. The amount of stock-based compensation expense recognized during a period is based on the portion of the awards that are ultimately expected to vest. We estimate pre-vesting forfeitures at the time of grant by analyzing historical data and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. Ultimately, the total expense recognized over the vesting period will equal the fair value of awards that actually vest. Share-based compensation expense related to stock options, restricted stock units and performance stock units was $22.5 million, $13.1 million and $13.8 million during the years ended December 31, 2020, 2019 and 2018, respectively, which was reduced by the related tax benefit of $4.1 million, $2.1 million and $2.6 million, respectively. The following summarizes the unrecognized compensation cost for the Stock Plan awards as of December 31, 2020. This compensation cost is expected to be recognized over a weighted average period of approximately two years, representing the remaining service period related to the awards. Future compensation amounts will be adjusted for any changes in estimated forfeitures: ($ in millions) Stock Awards $ 27.3 Stock options 14.2 Total unrecognized compensation cost $ 41.5 Stock Options The following summarizes option activity under the Stock Plan and the Fortive Plans for the years ended December 31, 2020, 2019 and 2018 (in thousands, except price per share and numbers of years): Options (c) Weighted Average Exercise Price (c) Weighted Aggregate Outstanding as of January 1, 2018 1,896 $ 38.09 Granted 318 76.67 Exercised (292) 28.99 Canceled/forfeited (61) 54.13 Outstanding as of December 31, 2018 1,861 44.78 Granted 376 77.47 Exercised (335) 28.18 Canceled/forfeited (148) 42.67 Outstanding as of December 31, 2019 1,754 53.74 Granted 815 Exercised (360) Canceled/forfeited (80) Aggregate impact of conversion related to the Separation (a) 2,406 Outstanding as of December 31, 2020 4,535 $ 27.17 7.3 $ 28,288 Vested and expected to vest as of December 31, 2020 (b) 3,530 $ 26.40 7.0 $ 24,736 Exercisable as of December 31, 2020 1,607 $ 21.21 5.2 $ 19,597 (a) The “Aggregate impact of conversion related to the Separation” represents the additional stock options issued as a result of the Separation by applying the “concentration method” to convert employee options based on the ratio of the fair value of Fortive and Vontier common stock calculated using the closing prices as of October 8, 2020. (b) The “expected to vest” options are the net unvested options that remain after applying the forfeiture rate assumption to total unvested options. (c) The options and weighted average exercise price for the periods prior to the Separation are pre-impact of the modification of the awards related to the Separation. The aggregate intrinsic values in the table above represent the total pretax intrinsic value (the difference between the closing stock price of Vontier common stock on the last trading day of 2020 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2020. The amount of aggregate intrinsic value will change based on the price of Vontier’s common stock. The weighted average exercise price of stock options granted, exercised, canceled/forfeited is not included in the table above for the full year ended December 31, 2020 as activity during this period included the Conversion Awards. The weighted average exercise price of Vontier stock options granted, exercised and canceled/forfeited for the period after separation until December 31, 2020 was $33.51, $18.70, and $30.10, respectively. The fair value of each stock option issued was estimated on the date of grant using the Black-Scholes model for service condition awards with the following weighted average assumptions for the years ended December 31: 2020 2019 2018 Risk-free interest rate 0.42 % 1.43% - 2.60% 2.71% - 2.96% Volatility 27.2 % 19.9 % 18.2 % Dividend yield — % 0.37 % 0.37 % Expected years until exercise 6.5 5.5 - 8.0 5.5 - 8.0 Weighted average fair value at date of grant $ 9.95 $ 19.17 $ 18.66 The total fair value of options vested during the years ended December 31, 2020, 2019 and 2018 was $2.8 million, $1.9 million and $1.5 million, respectively. Options outstanding as of December 31, 2020 are summarized below (in millions; except price per share and numbers of years): Outstanding Vested Exercise Price Number of Options Average Exercise Price Average Remaining Life Number of Options Average Exercise Price $9.92 - $23.46 1.5 $ 18.23 5 1.2 $ 17.27 $23.47 - $29.34 0.2 28.93 9 — 28.60 $29.35 - $31.46 2.2 31.37 9 0.2 31.12 $31.47 - $33.43 0.5 33.39 8 0.1 33.34 $33.44 - $33.66 0.1 33.66 10 0.1 33.66 Total shares 4.5 1.6 The following summarizes aggregate intrinsic value and cash receipts related to stock option exercise activity under the Stock Plan and the Fortive Plans for the years ended December 31: ($ in millions) 2020 2019 2018 Aggregate intrinsic value of stock options exercised $ 9.6 $ 14.2 $ 14.3 Cash receipts from stock options exercised (a) $ 9.4 $ 11.0 $ 8.3 (a) Cash receipts prior to the Separation were recorded as an increase to Former Parent's investment. This amount was $7.6 million, $11.0 million and $8.3 million in 2020, 2019, and 2018, respectively. Stock Awards The following summarizes information related to Stock Award activity under the Stock Plan and the Fortive Plans for the years ended December 31, 2020, 2019 and 2018 (in thousands; except price per share): Number of Stock Awards (b) Weighted Average Unvested as of January 1, 2018 374 $ 45.92 Granted 106 77.78 Vested (124) 41.28 Forfeited (15) 53.23 Unvested as of December 31, 2018 341 57.63 Granted 132 77.15 Vested (106) 74.77 Forfeited (48) 56.69 Unvested as of December 31, 2019 319 62.00 Granted 593 Vested (96) Forfeited (26) Aggregate impact of conversion related to the Separation (a) 592 Unvested as of December 31, 2020 1,382 (a) The “Aggregate impact of conversion related to the Separation” represents the additional Stock Awards issued as a result of the Separation by applying the “concentration method” to convert Stock Awards based on the ratio of the fair value of Fortive and Vontier common stock calculated using the closing prices as of October 8, 2020. (b) The awards and weighted average grant-date fair value for the periods prior to the Separation are pre-impact of the modification of the awards related to the Separation. The weighted average grant date fair value of Stock Awards granted, vested, and forfeited is not included in the table above for the full year ended December 31, 2020 as activity during this period included the conversion of Stock Awards under the Fortive Plans into awards under the Stock Plan. The weighted average fair value of Stock Awards granted, vested, and forfeited during the period after separation until December 31, 2020 was $33.64, $28.49, and $29.76, respectively. |
Capital Stock and Earnings Per
Capital Stock and Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Capital Stock and Earnings Per Share | NOTE 19. CAPITAL STOCK AND EARNINGS PER SHARE Capital Stock The Company’s authorized capital stock consists of 1,985,000,000 shares of common stock, par value $0.0001 per share, and 15,000,000 shares of preferred stock with no par value, with all shares of preferred stock undesignated. On August 5, 2019, we issued 1,000 shares of common stock to Fortive pursuant to Section 4(a)(2) of the Securities Act. We did not register the issuance of the issued shares under the Securities Act because the issuance did not constitute a public offering. On September 28, 2020, Vontier filed a certificate of amendment to the Certificate of Incorporation of Vontier (the “Split Amendment”) with the Secretary of State of the State of Delaware, which became effective as of such date. The Split Amendment effected a stock split whereby each share of Vontier common stock issued and outstanding immediately prior to the Split Amendment was converted into 168,378.946 shares in order to provide sufficient capitalization of Vontier to enable Fortive to complete the Distribution and retain a 19.9% interest in the remaining shares of common stock of Vontier. All per share amounts in the Consolidated and Combined Statements of Earnings and Comprehensive Income have been retroactively adjusted to give effect to this recapitalization. On October 9, 2020, Fortive distributed 80.1% of Vontier’s outstanding common stock to its stockholders. Refer to Note 1. Business Overview for additional information. Additionally, subsequent to year-end, Fortive divested of its remaining 19.9% ownership in the Company through an underwritten public offering. For additional information regarding the distribution of shares, refer to Note 21. Subsequent Events. Each share of Vontier common stock entitles the holder to one vote on all matters to be voted upon by common stockholders. Vontier’s Board of Directors (the “Board”) is authorized to issue shares of preferred stock in one or more series and has discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock. The Board’s authority to issue preferred stock with voting rights or conversion rights that, if exercised, could adversely affect the voting power of the holders of the common stock, could potentially discourage attempts by third parties to obtain control of Vontier through certain types of takeover practices. Earnings Per Share Basic earnings per share is calculated by dividing net earnings by the weighted average number of shares of common stock outstanding. Diluted earnings per share is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of shares under stock-based compensation plans except where the inclusion of such shares would have an anti-dilutive impact. The total number of shares outstanding, including the impact of the Split Amendment, on October 9, 2020 was 168,378,946 which is being utilized for the calculation of both basic and diluted earnings per share for the years ended December 31, 2019 and 2018 as no Vontier common stock equivalents were outstanding prior to October 9, 2020. Information related to the calculation of net earnings per share of common stock is summarized as follows: Year Ended December 31 ($ and shares in millions, except per share amounts) 2020 2019 2018 Numerator: Net earnings $ 342.0 $ 436.5 $ 385.5 Denominator: Basic weighted average common shares outstanding 168.4 168.4 168.4 Effect of dilutive stock options and RSUs 1.0 — — Diluted weighted average common shares outstanding 169.4 168.4 168.4 Earnings per share: Basic $ 2.03 $ 2.59 $ 2.29 Diluted $ 2.02 $ 2.59 $ 2.29 Anti-dilutive shares 2.7 — — The dilutive shares disclosed above were calculated using the treasury stock method. The treasury stock method calculates the dilution assuming the exercise of all in-the-money options and vesting of RSUs, reduced by the repurchase of shares with proceeds from the assumed exercises, and unrecognized compensation expense for outstanding awards. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | NOTE 20. RELATED-PARTY TRANSACTIONS Our transactions with Fortive are considered related-party transactions. In connection with the Separation, on October 9, 2020, we entered into the Agreements with Fortive, which govern the Separation and provide a framework for the relationship between the parties going forward, including an employee matters agreement, tax matters agreement, an intellectual property matters agreement, an FBS license agreement and a TSA. Employee Matters Agreement The employee matters agreement sets forth, among other things, the allocation of assets, liabilities and responsibilities relating to employee compensation and benefit plans and programs and other related matters in connection with the Separation, including the treatment of outstanding equity and other incentive awards and certain retirement and welfare benefit obligations. Tax Matters Agreement The tax matters agreement governs the respective rights, responsibilities and obligations of both Fortive and Vontier after the Separation with respect to tax liabilities and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings and other matters regarding taxes. Refer to Note 15. Income Taxes and “Item 1A. Risk Factors” for further discussion regarding the tax matters agreement. Intellectual Property Matters Agreement The intellectual property matters agreement sets forth the terms and conditions pursuant to which Fortive and Vontier have mutually granted certain personal, generally irrevocable, non-exclusive, worldwide, and royalty-free rights to use certain intellectual property. Both parties are able to sublicense their rights in connection with activities relating to the their businesses, but not for independent use by third parties. FBS License Agreement The FBS license agreement sets forth the terms and conditions pursuant to which Fortive has granted a non-exclusive, worldwide, non-transferable, perpetual license to us to use FBS solely in support of our businesses. We are able to sublicense such license solely to direct and indirect wholly-owned subsidiaries. Transition Services Agreement The TSA sets forth the terms and conditions pursuant to which Vontier and our subsidiaries and Fortive and its subsidiaries will provide to each other various services after the Separation. The services to be provided include information technology, facilities, certain accounting and other financial functions, and administrative services. The charges for the transition services generally are expected to allow the providing company to fully recover all out-of-pocket costs and expenses it actually incurs in connection with providing the service, plus, in some cases, the allocated indirect costs of providing the services, generally without profit. TSA Payments In accordance with the TSA, net receipts from Fortive were immaterial during the year ended December 31, 2020. During the year ended December 31, 2020, we made net payments to Fortive of $13.9 million. Additionally, we accrued $39.6 million for amounts due to Fortive under the Tax Matters Agreement and Transition Services Agreement. The majority of the amounts due relates to our share of the transaction taxes related to the Separation which was not paid as of December 31, 2020. Allocations of Expenses Prior to the Separation The Company has historically operated as part of Fortive and not as a stand-alone company. Accordingly, certain shared costs have been allocated to the Company by Fortive, and are reflected as expenses in these financial statements. Management considers the allocation methodologies used to be reasonable and appropriate reflections of the related expenses attributable to the Company for purposes of the carve-out financial statements; however, the expenses reflected in the accompanying Consolidated and Combined Financial Statements may not be indicative of the actual expenses that would have been incurred during the periods presented if the Company had operated as a separate stand-alone entity and the expenses that will be incurred in the future by the Company. The amount of related party expenses allocated to the Company from Fortive and its subsidiaries for years ended December 31 were as follows: ($ in millions) 2020 2019 2018 Allocated corporate expenses $ 28.0 $ 27.5 $ 26.7 Directly attributable expenses: Insurance programs expenses 2.2 2.4 2.1 Medical insurance programs expenses 31.4 42.4 33.6 Deferred compensation program expenses 0.9 0.9 0.9 Total related-party expenses $ 62.5 $ 73.2 $ 63.3 Following the Separation, we independently incur expenses as a stand-alone company and no expenses are allocated by Fortive. Corporate Expenses Certain corporate overhead and other shared expenses incurred by Fortive and its subsidiaries have been allocated to the Company and are reflected in the accompanying Consolidated and Combined Statements of Earnings and Comprehensive Income. These amounts include, but are not limited to, items such as general management and executive oversight, costs to support Vontier information technology infrastructure, facilities, compliance, human resources, and marketing, as well as legal functions and financial management and transaction processing, including public company reporting, consolidated tax filings, and tax planning, Fortive benefit plan administration, risk management and consolidated treasury services, certain employee benefits and incentives, and stock-based compensation administration. These costs are allocated using a methodology that management believes is reasonable for the item being allocated. Allocation methodologies include the Company’s relative share of revenues, headcount, or functional spend as a percentage of the total. Following the Separation, we independently incur corporate overhead costs and no corporate overhead costs are allocated by Fortive. Debt Financing As part of Fortive, the Company engaged in related-party borrowings. Transactions between Fortive and the Company have been included in the accompanying Consolidated and Combined Financial Statements for all years presented. There were non-cash settlements of the related-party loan receivables balances that existed as of December 31, 2019 during the year ended December 31, 2020. Loans from Fortive to the Company have been recorded as Long-term debt in the accompanying Combined Balance Sheets. Related-party loans to Fortive entities were $24.6 million as of December 31, 2019. These transactions were settled during the year ended December 31, 2020. Interest (expense) income, net on related-party transactions was insignificant for the year ended December 31, 2020 and was, $5.5 million and $8.5 million for the years ended December 31, 2019 and 2018, respectively. Insurance Programs Administered by Fortive In addition to the corporate allocations noted above, the Company was allocated expenses related to certain insurance programs Fortive administered on behalf of the Company, including automobile liability, workers’ compensation, general liability, product liability, director’s and officer’s liability, cargo, and property insurance. These amounts were allocated using various methodologies, as described below. Included within the insurance cost allocation are amounts related to programs for which Fortive is self-insured up to a certain amount. For the self-insured component, costs are allocated to the Company based on its incurred claims. Fortive has premium-based policies that cover amounts in excess of the self-insured retentions. The Company is allocated a portion of the total insurance cost incurred by Fortive based on its pro-rata portion of Fortive’s total underlying exposure base. An estimated liability relating to the Company’s known and incurred but not reported claims has been allocated to the Company and reflected in the accompanying Consolidated and Combined Balance Sheets. In connection with the Separation, we established similar independent self-insurance programs to support any outstanding claims going forward. Medical Insurance Programs Administered by Fortive In addition to the corporate allocations noted above, the Company was allocated expenses related to the medical insurance programs administered on behalf of the Company. These amounts were allocated using actual medical claims incurred during the period for the employees attributable to the Company. In connection with the Separation, we established independent medical insurance programs similar to those previously provided by Fortive. Deferred Compensation Program Administered by Fortive Certain employees of the Company participated in Fortive’s nonqualified deferred compensation programs, which permitted officers, directors and certain management employees to defer a portion of their compensation, on a pretax basis, until after their termination of employment. Participants could have chosen among alternative earnings rates for the amounts they deferred, which were primarily based on investment options within Fortive’s 401(k) program (except that the earnings rates for amounts contributed unilaterally by Fortive were entirely based on changes in the value of Fortive’s common stock). All amounts deferred under this plan are unfunded, unsecured obligations of the Company. In connection with the Separation, we established a similar independent, nonqualified deferred compensation program. Revenue and Other Transactions Entered Into In the Ordinary Course of Business Prior to the Separation, we operated as part of Fortive and not as a stand-alone company and certain of our revenue arrangements related to contracts entered into in the ordinary course of business with Fortive and its affiliates. Following the Separation, we continue to enter into arms-length revenue arrangements in the ordinary course of business with Fortive and its affiliates, although certain agreements were entered into or terminated as a result of the Separation. Certain of our revenue arrangements related to contracts entered into in the ordinary course of business with Fortive and its affiliates. Our revenue from sales to Fortive and its subsidiaries was insignificant during the years ended December 31, 2020, 2019 and 2018. We recorded purchases of approximately $16 million, $16 million and $13 million from Fortive and its subsidiaries during the years ended December 31, 2020, 2019 and 2018, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 21. SUBSEQUENT EVENTS In January 2021, Fortive sold a total of 33.5 million shares of the Company’s common stock as part of a secondary offering. After the secondary offering Fortive no longer owned any of the Company’s outstanding common stock. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS ($ in millions) Classification Balance at Beginning of Period (a) Charged to Impact of Charged to Other Accounts (b) Write Offs, Balance at End of Period (a) Year Ended December 31, 2020 Allowances deducted from asset accounts: Allowance for credit losses $ 56.3 $ 42.9 $ 0.3 $ 30.6 $ (45.2) $ 84.9 Valuation allowance for deferred income tax assets $ 29.7 $ — $ — $ — $ (7.3) $ 22.4 Year Ended December 31, 2019 Allowances deducted from asset accounts: Allowance for credit losses $ 59.9 $ 38.2 $ (0.1) $ 0.9 $ (42.6) $ 56.3 Valuation allowance for deferred income tax assets $ 24.7 $ — $ — $ 5.0 $ — $ 29.7 Year Ended December 31, 2018 Allowances deducted from asset accounts: Allowance for credit losses $ 54.6 $ 42.4 $ (0.5) $ 0.4 $ (37.0) $ 59.9 Valuation allowance for deferred income tax assets $ 14.3 $ — $ — $ 10.4 $ — $ 24.7 (a) Amounts include allowance for credit losses classified as current and noncurrent. (b) Amounts are related to businesses acquired, the impact of new accounting standards and other adjustments. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated and Combined Financial Statements present our historical financial position, results of operations, changes in equity and cash flows in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The combined financial statements for periods prior to the Separation were derived from Fortive’s consolidated financial statements and accounting records and prepared in accordance with GAAP for the preparation of carved-out combined financial statements. Through the date of the Separation, all revenues and costs as well as assets and liabilities directly associated with Vontier have been included in the combined financial statements. Prior to the Separation, the combined financial statements also included allocations of certain general, administrative, sales and marketing expenses from Fortive’s corporate office and from other Fortive businesses to the Company and allocations of related assets, liabilities, and the Former Parent’s investment, as applicable. The allocations were determined on a reasonable basis; however, the amounts are not necessarily representative of the amounts that would have been reflected in the financial statements had the Company been an entity that operated independently of Fortive during the applicable periods. Related-party allocations prior to the Separation, including the method for such allocation, are discussed further in Note 20. Related-Party Transactions. Following the Separation, the consolidated financial statements include the accounts of Vontier and those of our wholly-owned subsidiaries and no longer include any allocations from Fortive. Accordingly: • The Consolidated Balance Sheet as of December 31, 2020 consists of our balances, while the Combined Balance Sheet as of December 31, 2019 consists of the combined balances of the Vontier Businesses. • The Consolidated and Combined Statement of Earnings and Comprehensive Income for the year ended December 31, 2020 consist of our results from the date of the Separation through December 31, 2020 and the combined results of the Vontier Businesses from January 1, 2020 through the date of the Separation. The Combined Statements of Earnings and Comprehensive Income for the years ended December 31, 2019 and 2018, consist of the combined results of the Vontier Businesses. • The Consolidated and Combined Statement of Changes in Stockholders’ Equity for the year ended December 31, 2020 consists of our consolidated activity from the date of the Separation through December 31, 2020 and the combined activity of the Vontier Businesses from January 1, 2020 through the date of the Separation. The Combined Statements of Changes in Stockholders’ Equity for the years ended December 31, 2019 and 2018, consist of the combined activity of the Vontier Businesses. • The Consolidated and Combined Statement of Cash Flows for the year ended December 31, 2020 consists of our consolidated activity from the date of the Separation through December 31, 2020 and the combined activity of the Vontier Businesses from January 1, 2020 through the date of the Separation. The Combined Statements of Cash Flows for the years ended December 31, 2019 and 2018, consist of the combined activity of the Vontier Businesses. Our Consolidated and Combined Financial Statements may not be indicative of our results had we been a separate stand-alone entity throughout the periods presented, nor are the results stated herein indicative of what our financial position, results of operations and cash flows may be in the future. All significant transactions between the Company and Fortive have been included in the accompanying Consolidated and Combined Financial Statements for all periods presented. Cash transactions with Fortive prior to the Separation are reflected in the accompany Consolidated and Combined Statements of Changes in Stockholders’ Equity as “Net transfers to Former Parent” and “Consideration to Former Parent in connection with the Separation” and in the accompanying Consolidated and Combined Balance Sheets within “Former Parent’s investment”. Former Parent’s investment, which included Retained earnings (Accumulated deficit) prior to the Separation, represents Fortive’s interest in our recorded net assets prior to the Separation. In addition, the accumulated net effect of intercompany transactions between us and Fortive or Fortive affiliates for periods prior to the Separation are included in Former Parent’s investment. On October 9, 2020, in connection with the Separation, Former Parent’s investment was redesignated within Stockholders’ Equity. The Agreements include a “Wrong-Pockets Provision” that allows the parties to make adjustments to ensure the separation-related transactions were executed in accordance with the Agreements. In periods subsequent to the Separation, we may make adjustments to balances transferred at the Separation date in accordance with the Wrong-Pockets Provision. Any such adjustments are recorded through stockholders’ equity. The Consolidated and Combined Financial Statements include our accounts and the accounts of our subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. The Consolidated and Combined Financial |
Reclassification | Reclassification A reclassification of certain prior year amounts has been made to conform to current year presentation reflecting a reclassification of $3.5 million from Long-term financing receivables less allowance for credit losses to Other assets. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We base these estimates on historical experience, the current economic environment and on various other assumptions that are believed to be reasonable under the circumstances. However, uncertainties associated with these estimates exist and actual results may differ from these estimates. |
Cash and Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. |
Accounts and Financing Receivable and Allowances for Credit Losses | Accounts and Financing Receivables and Allowances for Credit LossesAll trade accounts and financing receivables are reported in the accompanying Consolidated and Combined Balance Sheets adjusted for any write-offs and net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from trade accounts and financing receivables portfolios. Determination of the allowances requires management to exercise judgment about the timing, frequency and severity of credit losses that could materially affect the provision for credit losses and, therefore, net earnings. The Company regularly performs detailed reviews of our portfolios to determine if an impairment has occurred and evaluate the collectability of receivables based on a combination of financial and qualitative factors that may affect customers’ ability to pay, including customers’ financial condition, collateral, debt-servicing ability, past payment experience and credit bureau information. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific reserve is recorded against amounts due to reduce the recognized receivable to the amount reasonably expected to be collected. Additions to the allowances for credit losses are charged to current period earnings and amounts determined to be uncollectible are charged directly against the allowances. Any amounts recovered on accounts that were previously written-off reduces the amounts charged to current period earnings. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional reserves would be required. The Company does not believe that accounts and financing receivables represent significant concentrations of credit risk because of the diversified portfolio of individual customers and geographical areas. |
Financing Receivables | Financing Receivables Prior to the adoption of Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) on January 1, 2020, we recognized an allowance for incurred losses when they were probable based on many quantitative and qualitative factors, including delinquency. After the adoption of ASU 2016-13, we estimate our allowance to reflect expected credit losses over the remaining contractual life of the asset. We pool assets with similar risk characteristics for this measurement based on attributes which includes asset type, duration, and/or credit risk rating. The future expected losses of each pool are estimated based on numerous quantitative and qualitative factors reflecting management’s estimate of collectability over the remaining contractual life of the pooled assets, including: • portfolio duration; • historical, current, and forecasted future loss experience by asset type; • historical, current, and forecasted delinquency and write-off trends; • historical, current, and forecasted economic conditions; and • historical, current, and forecasted credit risk. |
Inventory Valuation | Inventory Valuation Inventories include the costs of material, labor and overhead. Domestic inventories are stated at the lower of cost or net realizable value primarily using the first-in, first-out (“FIFO”) method with certain businesses applying the last-in, first-out method (“LIFO”) to value inventory. Inventories held outside the United States are stated at the lower of cost or net realizable value primarily using the FIFO method. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost. Provisions for depreciation and amortization have been computed principally by the straight-line method based on the estimated useful lives of the depreciable assets as follows: Category Useful Life Buildings 30 years Leased assets and leasehold improvements Amortized over the lesser of the economic life of the asset or the term of the lease Machinery and equipment 3 – 10 years Estimated useful lives are periodically reviewed and, when appropriate, changes to estimates are made prospectively. Amortization of capital lease assets is included in depreciation expense as a component of SG&A. |
Other Assets | Other Assets Other assets principally include contract assets, deferred tax assets and other investments. |
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsOur financial instruments consist primarily of accounts receivable, financing receivables, obligations under trade accounts payable and short and long-term debt. Due to their short-term nature, the carrying values for accounts receivable, trade accounts payable and short-term debt approximate fair value. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets result from our acquisition of existing businesses. In accordance with accounting standards related to business combinations, neither goodwill nor indefinite-lived intangible assets are amortized; however, certain definite-lived identifiable intangible assets, primarily customer relationships and acquired technology, are amortized over their estimated useful lives. Refer to Note 7. Goodwill and Other Intangible Assets for additional information regarding our goodwill and other intangible assets. Goodwill arises from the purchase price for acquired businesses exceeding the fair value of tangible and intangible assets acquired less assumed liabilities. We assess the goodwill of each of our reporting units for impairment at least annually as of the first day of the fourth quarter or more frequently if events and circumstances indicate that goodwill may not be recoverable. A non-cash goodwill impairment charge of $85.3 million was recorded against our Telematics reporting unit as a result of our quantitative impairment assessment on March 27, 2020. No goodwill impairment charges were recorded for the years ended December 31, 2019 and 2018. Refer to Note 7. Goodwill and Other Intangible Assets for additional information regarding the Telematics impairment charge. When evaluating for impairment, the Company may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit or indefinite-lived intangible asset is impaired. If the Company does not perform a qualitative assessment, or if it determines that it is not more likely than not that the fair value of the reporting unit or indefinite-lived intangible asset exceeds its carrying amount, the Company will calculate the estimated fair value of the reporting unit or indefinite-lived intangible asset. The Company’s decision to perform a qualitative impairment assessment for an individual reporting unit or indefinite-lived intangible assets in a given year is influenced by a number of factors, inclusive of the size of the reporting unit's goodwill, the significance of the excess of the reporting unit's estimated fair value over carrying value at the last quantitative assessment date, the amount of time in between quantitative fair value assessments and the date of acquisition. As part of our 2020 annual impairment analysis, we elected to apply the qualitative goodwill impairment assessment guidance in ASC 350-20, Goodwill , for 4 of our 5 reporting units, which held approximately $817.1 million, or 77.2% of our total goodwill balance as of the assessment date. Factors we consider in the qualitative assessment include general macroeconomic conditions, industry and market conditions, cost factors, overall financial performance of our reporting units, events or changes affecting the composition or carrying value of the net assets of our reporting units, information related to market multiples of peer companies and other relevant entity specific events. Based on our assessment we determined on the basis of the qualitative and quantitative factors, that the fair values of the reporting units were more likely than not greater than their respective carrying values; and therefore, a quantitative test was not required. If we do not perform a qualitative assessment, goodwill impairment is determined by using a quantitative approach. We identify potential impairment by comparing the fair value of each reporting unit, determined using various valuation techniques, with the primary technique being a discounted cash flow analysis, to its carrying value. If the carrying amount of the reporting unit exceeds the fair value, an impairment loss is recognized. The Company performed a quantitative impairment test for the Telematics reporting unit during the fourth quarter of 2020. It was concluded that the estimated fair value of the Telematics reporting unit exceeded its carrying value and therefore no impairment existed. The factors used by management in its impairment analysis are inherently subject to uncertainty. If actual results are not consistent with management’s estimates and assumptions, goodwill and other intangible assets may be overstated and a charge would need to be taken against net earnings. We review identified intangible assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Determining whether an impairment loss occurred requires a comparison of the carrying amount to the sum of undiscounted cash flows expected to be generated by the asset. We also test intangible assets with indefinite lives at least annually for impairment. These analyses require management to make judgments and estimates about future revenues, expenses, market conditions and discount rates related to these assets. If actual results are not consistent with management’s estimates and assumptions, goodwill and other intangible assets may be overstated, and a charge would need to be taken against net earnings which would adversely affect our financial statements. |
Insurance Liabilies | Insurance LiabilitiesThe Company is self-insured for certain losses related to medical claims. The Company has stop-loss coverage to limit the exposure arising from medical claims. In addition, the Company has deductible-based insurance policies for certain losses related to general liability, workers’ compensation and automobile. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs relating to the Company’s long-term debt are recorded as a direct reduction of long-term debt; these costs are deferred and amortized to interest expense using the effective interest method, over the respective terms of the related debt. Debt issuance costs relating to the Company’s revolving credit facilities are recorded in Other assets; these costs are deferred and amortized to interest expense using the straight-line method. |
Revenue Recognition | Revenue Recognition We derive revenues primarily from the sale of products and services in the mobility technologies and diagnostics and repair technologies markets. Revenue is recognized when control of promised products or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. Product sales include revenues from the sale of products and equipment, which includes our software-as-a-service (“SaaS”) product offerings, equipment rentals, and interest income related to our financing receivables. Service sales includes revenues from extended warranties, post-contract customer support (“PCS”), maintenance contracts or services, and services related to previously sold products. Revenues associated with the Company’s interest income related to financing receivables are recognized to approximate a constant effective yield over the contract term. For revenue related to a product or service to qualify for recognition, we must have an enforceable contract with a customer that defines the goods or services to be transferred and the payment terms related to those goods or services. Further, collection of substantially all consideration for the goods or services transferred must be probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a combination of financial and qualitative factors, including the customers’ financial condition, collateral, debt-servicing ability, past payment experience and credit bureau information. Customer allowances and rebates, consisting primarily of volume discounts and other short-term incentive programs, are considered in determining the transaction price for the contract; these allowances and rebates are reflected as a reduction in the contract transaction price. Significant judgment is exercised in determining product returns, customer allowances and rebates, which are estimated based on historical experience and known trends. Most of our sales contracts contain standard terms and conditions. We evaluate contracts to identify distinct goods and services promised in the contract (performance obligations). Sometimes this evaluation involves judgment to determine whether the goods or services are highly dependent on or highly interrelated with one another, or whether such goods or services significantly modify or customize one another. Certain customer arrangements include multiple performance obligations, typically hardware, installation, training, consulting, services and/or PCS. Generally, these elements are delivered within the same reporting period, except PCS or other services. We allocate the contract transaction price to each performance obligation using the observable price that the good or service sells for separately in similar circumstances and to similar customers, and/or a residual approach when the observable selling price of a good or service is not known and is either highly variable or uncertain. Allocating the transaction price to each performance obligation sometimes requires significant judgment. Our principal terms of sale are FOB Shipping Point, or equivalent, and, as such, we primarily record revenue upon shipment as we have transferred control to the customer at that point and our performance obligations are satisfied. We evaluate contracts with delivery terms other than FOB Shipping Point and recognize revenue when we have transferred control and satisfied our performance obligations. If any significant obligation to the customer with respect to a sales transaction remains to be fulfilled following shipment (typically installation, other services noted above or acceptance by the customer), revenue recognition is deferred until such obligations have been fulfilled. Further, revenue related to separately priced extended warranty and product maintenance agreements is deferred when appropriate and recognized as revenue over the term of the agreement. Shipping and Handling Shipping and handling costs are included as a component of Cost of sales in the Consolidated and Combined Statements of Earnings and Comprehensive Income. Revenue derived from shipping and handling costs billed to customers is included in Sales in the Consolidated and Combined Statements of Earnings and Comprehensive Income. Contract Assets In certain circumstances, we record contract assets which include unbilled amounts typically resulting from sales under contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is not only subject to the passage of time. Contract assets were $9.0 million and $12.8 million as of December 31, 2020 and 2019, respectively, and are included in Prepaid expenses and other current assets. Contract Costs We incur direct incremental costs to obtain certain contracts, typically sales-related commissions and costs associated with assets used by our customers in certain service arrangements. As of December 31, 2020 and 2019, we had $81.2 million and $95.2 million, respectively, in net revenue-related capitalized contract costs primarily related to assets used by our customers in certain software contracts, which are recorded in Prepaid expenses and other current assets, for the current portion, and Other assets, for the noncurrent portion, in the accompanying Consolidated and Combined Balance Sheets. These assets have estimated useful lives between 3 and 5 years and are amortized on a straight-line basis. Impairment losses recognized on our revenue-related capitalized contract costs were immaterial during both the years ended December 31, 2020 and 2019. Contract Liabilities The Company’s contract liabilities consist of deferred revenue generally related to post contract support (“PCS”) and extended warranty sales. In these arrangements, the Company generally receives up-front payment and recognizes revenue over the support term of the contracts. Deferred revenue is classified as current or noncurrent based on the timing of when revenue is expected to be recognized. Remaining Performance Obligations Remaining performance obligations represent the transaction price of firm, noncancelable orders and the average contract value for software-as-a-service contracts, with expected customer delivery dates beyond one year from December 31, 2020 for which work has not been performed. The Company has excluded performance obligations with an original expected duration of one year or less. Performance obligations as of December 31, 2020 are $407.5 million, the majority of which are related to the annual contract value of software-as-a-service contracts. The Company expects approximately 35 percent of the remaining performance obligations will be fulfilled within the next two years, 65 percent with the next three years, and substantially all within four years. |
Advertising | Advertising Advertising costs are expensed as incurred. |
Research and Development | Research and Development We conduct research and development activities for the purpose of developing new products, enhancing the functionality, effectiveness, ease of use and reliability of our existing products and expanding the applications for which uses of our products are appropriate. Research and development costs are expensed as incurred. |
Restructuring | RestructuringWe periodically initiate restructuring activities to appropriately position our cost base relative to prevailing economic conditions and associated customer demand as well as in connection with certain acquisitions. Costs associated with restructuring actions can include one-time termination benefits and related charges in addition to facility closure, contract termination and other related activities. We record the cost of the restructuring activities when the associated liability is incurred. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions Exchange rate adjustments resulting from foreign currency transactions are recognized in Net earnings, whereas effects resulting from the translation of financial statements are reflected as a component of Accumulated other comprehensive income within stockholders’ equity. Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates and income statement accounts are translated at weighted average exchange rates. Net foreign currency transaction gains or losses were not material in any of the years presented. |
Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation We had no stock-based compensation plans prior to the Separation; however, certain of our employees had participated in Fortive’s stock-based compensation plans (“Fortive Plans”). The expense associated with our employees who participated in the Fortive Plans was allocated to us in the accompanying Consolidated and Combined Statements of Earnings and Comprehensive Income for the periods prior to the Separation. We account for stock-based compensation by measuring the cost of employee services received in exchange for all equity awards granted, including stock options, restricted stock units (“RSUs”) and performance stock units (“PSUs”), based on the fair value of the award as of the grant date. Stock-based compensation expense is recognized net of an estimated forfeiture rate on a straight-line basis over the requisite service period of the award. The fair value of each stock option issued was estimated on the date of the grant using the Black-Scholes option pricing model which incorporates the following assumptions to value stock-based awards: Risk-free interest rate: The risk-free rate of interest for periods within the contractual life of the option is based on a zero-coupon U.S. government instrument whose maturity period equals or approximates the option’s expected term. Volatility: Since the Company does not have sufficient history to estimate the expected volatility of its common share price, expected volatility is based on a blended approach that uses the volatility of the Company’s common stock for periods in which the Company has information and the volatility for selected reasonably similar publicly traded companies for periods in which the historical information is not available. For periods prior to the Separation and after July 2018, volatility was calculated using a blend of Fortive’s historical stock price volatility and the average historical stock price volatility of a group of Fortive’s peer companies for the expected term of the options. From July 2, 2016 through July 2018, the weighted average volatility was estimated based on an average historical stock price volatility of a group of peer companies given Fortive’s limited trading history. Dividend yield: As we have not yet issued dividends, no dividend yield has been assumed for grants since the Separation. For periods prior to the Separation, the dividend yield was calculated by dividing Fortive’s annual dividend, based on the most recent quarterly dividend rate, by Fortive’s stock price on the grant date. Expected years until exercise: The expected term of stock options granted is based on an estimate of when options will be exercised in the future. As the Company does not have sufficient history to estimate its expected term, the Company applied the simplified method of estimating the expected term of the options, as described in the SEC’s Staff Accounting Bulletins 107 and 110, as the historical experience under Fortive is not considered indicative of the expected behavior in the future. The expected term, calculated under the simplified method, is applied to all stock options which have similar contractual terms. Using this method, the expected term is determined using the average of the vesting period and the contractual life of the stock options granted. |
Income Taxes | Income Taxes In accordance with GAAP, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted rates expected to be in effect during the year in which the differences reverse. Deferred tax assets generally represent items that can be used as a tax deduction or credit in our tax return in future years for which the tax benefit has already been reflected on our Consolidated and Combined Statements of Earnings and Comprehensive Income. Deferred tax liabilities generally represent items that have already been taken as a deduction on our tax return but have not yet been recognized as an expense in our Consolidated and Combined Statements of Earnings and Comprehensive Income. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income tax expense in the period that includes the enactment date. Our deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not (a likelihood of more than 50 percent) that some portion or all of the deferred tax assets will not be realized. We evaluate the realizability of deferred income tax assets for each of the jurisdictions in which we operate. If we experience cumulative pretax income in a particular jurisdiction in the three-year period including the current and prior two years, we normally conclude that the deferred income tax assets will more likely than not be realizable and no valuation allowance is recognized, unless known or planned operating developments would lead management to conclude otherwise. However, if we experience cumulative pretax losses in a particular jurisdiction in the three-year period including the current and prior two years, we then consider a series of factors in the determination of whether the deferred income tax assets can be realized. These factors include historical operating results, known or planned operating developments, the period of time over which certain temporary differences will reverse, consideration of the utilization of certain deferred income tax liabilities, tax law carryback capability in the particular country, and prudent and feasible tax planning strategies. After evaluation of these factors, if the deferred income tax assets are expected to be realized within the tax carryforward period allowed for that specific country, we would conclude that no valuation allowance would be required. To the extent that the deferred income tax assets exceed the amount that is expected to be realized within the tax carryforward period for a particular jurisdiction, we establish a valuation allowance. We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the Consolidated and Combined Financial Statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Judgment is required in evaluating tax positions and determining income tax provisions. We reevaluate the technical merits of our tax positions and may recognize an uncertain tax benefit in certain circumstances, including when: (i) a tax audit is completed; (ii) applicable tax laws change, including a tax case ruling or legislative guidance; or (iii) the applicable statute of limitations expires. We recognize potential accrued interest and penalties associated with unrecognized tax positions in income tax expense. Refer to Note 15. Income Taxes for additional information. |
Pension | Pension and Other Postretirement Benefit Plans We measure our pension assets and obligations to determine the funded status as of year end, and recognize an asset for an overfunded status or a liability for an underfunded status on our balance sheet. Changes in the funded status of the pension plans are recognized in the year in which the changes occur and are reported in other comprehensive income. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and in January 2021 issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope. These ASUs provide temporary optional expedients and exceptions to existing guidance on contract modifications and hedge accounting to facilitate the market transition from existing reference rates, such as LIBOR which is being phased out beginning at the end of 2021, to alternate reference rates, such as the Secured Overnight Financing Rate (“SOFR”). These standards were effective upon issuance and allowed application to contract changes as early as January 1, 2020. These provisions may impact the Company as contract modifications and other changes occur during the LIBOR transition period. The Company continues to evaluate the optional relief guidance provided within these ASUs, has reviewed its debt securities and continues to evaluate commercial contracts that may utilize LIBOR as the reference rate. We will continue the assessment and monitor regulatory developments during the LIBOR transition period. Adoption of New Accounting Standard In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, which amends the impairment model by requiring entities to use a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including financing and trade accounts receivables. On January 1, 2020, we adopted ASU 2016-13 and recognized in our Consolidated and Combined Balance Sheets, as of January 1, 2020, an increase in the allowance for trade accounts and financing receivables of $22.1 million with a corresponding net of tax adjustment to beginning Former Parent’s investment of $16.9 million. Results for reporting periods beginning January 1, 2020 reflect the adoption of ASU 2016-13, while prior period amounts were not adjusted and continue to be reported in accordance with our historical accounting practices. Refer to Note 2. Basis of Presentation and Summary of Significant Accounting Policies for a discussion of our accounting policies for financing receivables prior and subsequent to the adoption of ASU 2016-13. Volatility in overall global economic conditions and worldwide capital markets as a result of the COVID-19 pandemic may negatively impact our customers’ ability to pay and, as a result, may increase the difficulty in collecting trade accounts and financing receivables. We did not realize notable increases in loss rates and delinquencies during the year ended December 31, 2020, and given the nature of our portfolio of receivables, our historical experience during times of challenging economic conditions, and our forecasted future impact of COVID-19 on our customers’ ability to pay, we did not record material provisions for credit losses as a result of the COVID-19 pandemic during the year ended December 31, 2020. If the financial condition of our customers were to deteriorate beyond our current estimates, resulting in an impairment of their ability to make payments, we would be required to write off additional receivable balances, which would adversely impact our net earnings and financial condition. |
Allowance for Credit Losses related to Financing Receivables | Allowance for Credit Losses related to Financing ReceivablesThe Company calculates the allowance for credit losses considering several factors, including the aging of its financing receivables, historical credit loss and portfolio delinquency experience and current economic conditions. The Company also evaluates financing receivables with identified exposures, such as customer defaults, bankruptcy or other events that make it unlikely it will recover the amounts owed to it. In calculating such reserves, the Company evaluates expected cash flows, including estimated proceeds from disposition of collateral, and calculates an estimate of the potential loss and the probability of loss. When a loss is considered probable on an individual financing receivable, a specific reserve is recorded. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Depreciable Assets | Provisions for depreciation and amortization have been computed principally by the straight-line method based on the estimated useful lives of the depreciable assets as follows: Category Useful Life Buildings 30 years Leased assets and leasehold improvements Amortized over the lesser of the economic life of the asset or the term of the lease Machinery and equipment 3 – 10 years The classes of property, plant and equipment as of December 31 are summarized as follows: ($ in millions) 2020 2019 Land and improvements $ 6.1 $ 6.2 Buildings and leasehold improvements 65.5 57.3 Machinery and equipment 265.6 263.7 Gross property, plant and equipment 337.2 327.2 Less: accumulated depreciation (240.4) (225.3) Property, plant and equipment, net (a) $ 96.8 $ 101.9 (a) Includes property, plant and equipment, net in the United States of $74.0 million and $78.5 million as of December 31, 2020 and 2019, respectively. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | The following summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for the acquisition consummated during the year ended December 31: ($ in millions) 2018 Accounts receivable $ 3.7 Inventories 3.9 Property, plant and equipment 0.4 Goodwill 29.4 Trade accounts payable (0.1) Other assets and liabilities, net (1.4) Net cash consideration $ 35.9 |
Pro Forma Information | The pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been achieved had the acquisition been consummated as of that time: ($ in millions) 2018 Sales $ 2,690.6 Net earnings $ 387.4 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The components of financing receivables with payments due in less than twelve months that are recorded in Accounts receivable less allowance for credit losses on the Consolidated and Combined Balance Sheets were as follows: ($ in millions) December 31, 2020 December 31, 2019 Gross current financing receivables: PSAs $ 98.9 $ 104.6 Franchisee Notes 15.5 15.7 Current financing receivables, gross $ 114.4 $ 120.3 Allowance for credit losses: PSAs $ 15.8 $ 10.0 Franchisee Notes 6.6 7.2 Total allowance for credit losses 22.4 17.2 Total current financing receivables, net $ 92.0 $ 103.1 Net current financing receivables: PSAs, net $ 83.1 $ 94.6 Franchisee Notes, net 8.9 8.5 Total current financing receivables, net $ 92.0 $ 103.1 The components of financing receivables with payments due beyond one year were as follows: ($ in millions) December 31, 2020 December 31, 2019 Gross long-term financing receivables: PSAs $ 219.3 $ 222.9 Franchisee Notes 58.6 60.2 Long-term financing receivables, gross $ 277.9 $ 283.1 Allowance for credit losses: PSAs $ 38.5 $ 19.4 Franchisee Notes 5.9 4.7 Total allowance for credit losses 44.4 24.1 Total long-term financing receivables, net $ 233.5 $ 259.0 Net long-term financing receivables: PSAs, net $ 180.8 $ 203.5 Franchisee Notes, net 52.7 55.5 Total long-term financing receivables, net $ 233.5 $ 259.0 |
Financing Receivable Credit Quality Indicators | The amortized cost basis of PSAs and Franchisee Notes by origination year as of December 31, 2020 is as follows: ($ in millions) 2020 2019 2018 2017 2016 Prior Total PSAs Credit Score: Less than 400 $ 17.5 $ 10.1 $ 4.7 $ 2.1 $ 0.5 $ 0.1 $ 35.0 400-599 25.1 13.6 7.5 3.1 0.9 0.3 50.5 600-799 51.3 26.1 13.9 6.2 2.0 0.3 99.8 800+ 71.8 34.7 17.9 6.8 1.5 0.2 132.9 Total PSAs $ 165.7 $ 84.5 $ 44.0 $ 18.2 $ 4.9 $ 0.9 $ 318.2 Franchisee Notes Active distributors $ 20.5 $ 21.3 $ 9.2 $ 5.6 $ 3.1 $ 3.6 $ 63.3 Separated distributors 0.1 1.4 1.8 2.1 1.7 3.7 10.8 Total Franchisee Notes $ 20.6 $ 22.7 $ 11.0 $ 7.7 $ 4.8 $ 7.3 $ 74.1 |
Financing Receivable, Past Due | PSAs are considered past due when a contractual payment has not been made. If a customer is making payments on its account, interest will continue to accrue. The table below sets forth the aging of the Company’s PSA balances as of: ($ in millions) 30-59 days past due 60-90 days past due Greater than 90 days past due Total past due Total not considered past due Total Greater than 90 days past due and accruing interest December 31, 2020 $ 3.5 $ 1.8 $ 7.2 $ 12.5 $ 305.7 $ 318.2 $ 7.2 December 31, 2019 3.7 1.9 7.2 12.8 314.7 327.5 7.2 |
Financing Receivable, Allowance for Credit Loss | The following is a rollforward of the PSAs and Franchisee Notes components of the Company’s allowances for credit losses related to financing receivables as of December 31: 2020 2019 ($ in millions) PSAs Franchisee Notes Total PSAs Franchisee Notes Total Allowance for credit losses, beginning of year $ 29.4 $ 11.9 $ 41.3 $ 29.6 $ 14.2 $ 43.8 Transition adjustment 17.5 1.0 18.5 — — — Provision for credit losses 29.3 5.9 35.2 26.4 4.5 30.9 Write-offs (32.5) (6.5) (39.0) (28.2) (7.2) (35.4) Recoveries of amounts previously charged off 2.7 0.2 2.9 1.6 0.4 2.0 Other adjustment 7.9 — 7.9 — — — Allowance for credit losses, end of year $ 54.3 $ 12.5 $ 66.8 $ 29.4 $ 11.9 $ 41.3 |
Accounts Receivable, Allowance for Credit Loss | The following is a rollforward of the allowance for credit losses related to the Company’s trade accounts receivables (excluding financing receivables) and the Company’s trade accounts receivable cost basis as of December 31, 2020: ($ in millions) Cost basis of trade accounts receivable as of December 31, 2020 $ 373.2 Allowance for credit losses balance as of December 31, 2019 15.0 Adoption of new accounting standard 3.6 Provision for credit losses 7.7 Write-offs (9.1) Foreign currency and other 0.9 Allowance for credit losses balance as of December 31, 2020 18.1 Net trade accounts receivable balance as of December 31, 2020 $ 355.1 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory classes | The classes of inventory as of December 31 are summarized as follows: ($ in millions) 2020 2019 Finished goods $ 90.3 $ 95.8 Work in process 19.9 25.2 Raw materials 123.5 103.1 Total $ 233.7 $ 224.1 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Classes of Property, Plant and Equipment | Provisions for depreciation and amortization have been computed principally by the straight-line method based on the estimated useful lives of the depreciable assets as follows: Category Useful Life Buildings 30 years Leased assets and leasehold improvements Amortized over the lesser of the economic life of the asset or the term of the lease Machinery and equipment 3 – 10 years The classes of property, plant and equipment as of December 31 are summarized as follows: ($ in millions) 2020 2019 Land and improvements $ 6.1 $ 6.2 Buildings and leasehold improvements 65.5 57.3 Machinery and equipment 265.6 263.7 Gross property, plant and equipment 337.2 327.2 Less: accumulated depreciation (240.4) (225.3) Property, plant and equipment, net (a) $ 96.8 $ 101.9 (a) Includes property, plant and equipment, net in the United States of $74.0 million and $78.5 million as of December 31, 2020 and 2019, respectively. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill are as follows: ($ in millions) Balance, January 1, 2019 $ 1,139.5 Foreign currency translation and other 18.3 Balance, December 31, 2019 1,157.8 Impairment charge (85.3) Foreign currency translation and other 19.6 Balance, December 31, 2020 $ 1,092.1 |
Schedule of Finite-Lived Intangible Assets | The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset as of December 31: 2020 2019 ($ in millions) Weighted Average Amortization Period Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Finite-lived intangibles: Patents and technology 6 years $ 75.1 $ (50.9) $ 24.2 $ 70.2 $ (44.5) $ 25.7 Customer relationships and other intangibles 7 years 277.3 (152.5) 124.8 268.0 (125.3) 142.7 Total finite-lived intangibles 352.4 (203.4) 149.0 338.2 (169.8) 168.4 Indefinite-lived intangibles: Trademarks and trade names 101.5 — 101.5 105.9 — 105.9 Total intangibles $ 453.9 $ (203.4) $ 250.5 $ 444.1 $ (169.8) $ 274.3 |
Schedule of Indefinite-Lived Intangible Assets | The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset as of December 31: 2020 2019 ($ in millions) Weighted Average Amortization Period Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Finite-lived intangibles: Patents and technology 6 years $ 75.1 $ (50.9) $ 24.2 $ 70.2 $ (44.5) $ 25.7 Customer relationships and other intangibles 7 years 277.3 (152.5) 124.8 268.0 (125.3) 142.7 Total finite-lived intangibles 352.4 (203.4) 149.0 338.2 (169.8) 168.4 Indefinite-lived intangibles: Trademarks and trade names 101.5 — 101.5 105.9 — 105.9 Total intangibles $ 453.9 $ (203.4) $ 250.5 $ 444.1 $ (169.8) $ 274.3 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Based on the intangible assets recorded as of December 31, 2020, amortization expense is estimated to be as follows for the next five years and thereafter: ($ in millions) 2021 $ 29.3 2022 24.9 2023 23.7 2024 22.6 2025 18.8 2026 and thereafter 29.7 Total $ 149.0 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis | Financial liabilities that are measured at fair value on a recurring basis were as follows: ($ in millions) Quoted Prices Significant Other Significant Total December 31, 2020 Deferred compensation liabilities — $ 3.7 — $ 3.7 December 31, 2019 Deferred compensation liabilities — $ 14.7 — $ 14.7 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses and other liabilities as of December 31 were as follows: 2020 2019 ($ in millions) Current Long-term Current Long-term Compensation, pension and post retirement benefits $ 95.9 $ 17.8 $ 75.4 $ 26.7 Claims, including self-insurance and litigation 21.0 56.8 6.4 55.5 Taxes, income and other 62.2 39.0 11.8 111.5 Deferred revenue 87.6 58.3 87.0 63.2 Sales and product allowances 38.5 — 35.1 — Warranty 37.0 17.6 56.6 0.8 Other 105.9 27.7 47.0 37.8 Total $ 448.1 $ 217.2 $ 319.3 $ 295.5 |
Schedule of Accrued Warranty Liability | The following is a rollforward of our accrued warranty liability: ($ in millions) Balance, January 1, 2019 $ 55.9 Accruals for warranties issued during the year 64.1 Settlements made (61.2) Reductions due to dispositions (1.9) Effect of foreign currency translation 0.5 Balance, December 31, 2019 $ 57.4 Accruals for warranties issued during the year 42.8 Settlements made (45.7) Effect of foreign currency translation 0.1 Balance, December 31, 2020 $ 54.6 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | The following table presents the maturity of our operating lease liabilities as of December 31, 2020: ($ in millions) 2021 $ 11.8 2022 8.2 2023 6.3 2024 4.3 2025 3.3 Thereafter 16.7 Total lease payments 50.6 Less: imputed interest (8.2) Total lease liabilities $ 42.4 |
Financing (Tables)
Financing (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Carry Value of Debt | The Company had the following debt outstanding as of December 31: ($ in millions) 2020 2019 Short-term borrowings: India Credit Facility $ 10.9 $ 12.6 Other short-term borrowings and bank overdrafts — 4.2 Total short-term borrowings $ 10.9 $ 16.8 Long-term debt: Related-party loans with Former Parent $ — $ 24.6 Two-Year Term Loans 1,000.0 — Three-Year Term Loans 800.0 — Total long-term debt 1,800.0 24.6 Less: debt issuance costs (4.7) — Total long-term debt, net $ 1,795.3 $ 24.6 |
Schedule of Maturities of Long-term Debt | As of December 31, 2020, the contractual maturities of the Company’s long-term debt were as follows: ($ in millions) Term Loans 2021 $ — 2022 1,000.0 2023 800.0 2024 — 2025 — Thereafter — Total principal payments $ 1,800.0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Reclassification of Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive income by component are summarized below: ($ in millions) Foreign Other adjustments (b) Total Balance, January 1, 2018 $ 164.8 $ (6.0) $ 158.8 Other comprehensive income (loss) before reclassifications: Increase (decrease) (33.5) 0.5 (33.0) Other comprehensive income (loss) before reclassifications, net of income taxes (33.5) 0.5 (33.0) Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 0.5 (a) 0.5 Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes: — 0.5 0.5 Net current period other comprehensive income (loss): (33.5) 1.0 (32.5) Balance, December 31, 2018 $ 131.3 $ (5.0) $ 126.3 Other comprehensive income (loss) before reclassifications: Increase (decrease) 22.4 (0.4) 22.0 Other comprehensive income (loss) before reclassifications, net of income taxes 22.4 (0.4) 22.0 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 0.4 (a) 0.4 Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.4 0.4 Net current period other comprehensive income (loss) 22.4 — 22.4 Balance, December 31, 2019 $ 153.7 $ (5.0) $ 148.7 Other comprehensive income (loss) before reclassifications: Increase (decrease) 44.6 — 44.6 Other comprehensive income (loss) before reclassifications, net of income taxes 44.6 — 44.6 Amounts reclassified from accumulated other comprehensive income (loss): Increase (decrease) — 0.5 (a) 0.5 Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes: — 0.5 0.5 Net current period other comprehensive income (loss) 44.6 0.5 45.1 Balance, December 31, 2020 $ 198.3 $ (4.5) $ 193.8 (a) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost. (b) Includes balances relating to defined benefit plans, supplemental executive retirement plans and other postretirement employee benefit plans. |
Sales (Tables)
Sales (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract liabilities | The Company’s contract liabilities consisted of the following as of December 31: ($ in millions) 2020 2019 Deferred revenue - current $ 87.6 $ 87.0 Deferred revenue - noncurrent 58.3 63.2 Total contract liabilities $ 145.9 $ 150.2 |
Disaggregation of revenue | Disaggregation of revenue is as follows for the years ended December 31: ($ in millions) 2020 2019 2018 Sales: Sales of products $ 2,459.9 $ 2,484.0 $ 2,408.1 Sales of services 244.7 288.1 257.8 Total $ 2,704.6 $ 2,772.1 $ 2,665.9 Geographic: North America (a) $ 1,898.3 $ 1,875.5 $ 1,751.8 Western Europe 255.7 275.5 288.4 High-growth markets 432.9 499.4 500.0 Rest of world 117.7 121.7 125.7 Total $ 2,704.6 $ 2,772.1 $ 2,665.9 Solution: Retail fueling hardware $ 822.9 $ 851.2 $ 757.4 Auto repair 526.9 555.4 562.3 Service and other recurring revenue 445.3 466.7 433.6 Environmental 235.7 281.6 281.7 Retail solutions 375.9 294.9 281.4 Software-as-a-service 181.6 195.5 215.8 Smart cities 32.4 38.0 38.1 E-mobility 24.2 2.1 — Other 59.7 86.7 95.6 Total $ 2,704.6 $ 2,772.1 $ 2,665.9 Major Product Group: Mobility technologies $ 2,087.5 $ 2,134.2 $ 2,026.3 Diagnostics and repair technologies 617.1 637.9 639.6 Total $ 2,704.6 $ 2,772.1 $ 2,665.9 (a) Includes sales in the United States of $1,843.2 million, $1,811.8 million, and $1,668.6 million for the years ended December 31, 2020, 2019, and 2018, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of earnings before income taxes | Earnings (losses) before income taxes for the years ended December 31 were as follows: ($ in millions) 2020 2019 2018 United States $ 496.8 $ 510.9 $ 460.7 Non-U.S. (36.5) 54.9 46.6 Total $ 460.3 $ 565.8 $ 507.3 |
Schedule of provision for income taxes | The provision (benefit) for income taxes for the years ended December 31 were as follows: ($ in millions) 2020 2019 2018 Current: Federal U.S. $ 122.9 $ 80.2 $ 71.2 Non-U.S. 19.8 19.5 25.5 State and local 18.4 16.8 19.3 Deferred: Federal U.S. (33.3) 13.2 8.9 Non-U.S. (8.4) (1.1) (3.7) State and local (1.1) 0.7 0.6 Income tax provision $ 118.3 $ 129.3 $ 121.8 |
Schedule of deferred tax assets and liabilities | Deferred income tax assets and liabilities as of December 31 were as follows: ($ in millions) 2020 2019 Deferred Tax Assets: Allowance for credit losses $ 22.9 $ 12.6 Financing receivables — 4.6 Operating lease liabilities 10.2 8.7 Inventories 6.3 6.9 Pension benefits 0.6 0.8 Other accruals and prepayments 23.2 25.9 Deferred revenue 9.5 6.3 Warranty services 12.6 12.3 Stock-based compensation expense 6.7 4.3 Tax credit and loss carryforwards 29.0 34.4 Other 4.0 — Valuation allowances (22.4) (29.7) Total deferred tax assets 102.6 87.1 Deferred Tax Liabilities: Property, plant and equipment (8.6) (8.0) Operating lease right-of-use assets (9.4) (8.7) Insurance, including self-insurance (18.3) (78.2) Goodwill and other intangibles (66.2) (75.7) Other (4.4) 0.4 Total deferred tax liabilities (106.9) (170.2) Net deferred tax liability $ (4.3) $ (83.1) |
Schedule of effective income tax rate reconciliation | The effective income tax rate for the years ended December 31 varies from the U.S. statutory federal income tax rate as follows: Percentage of Pretax Earnings 2020 2019 2018 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) in tax rate resulting from: State income taxes (net of federal income tax benefit) 3.1 % 2.8 % 3.1 % Non-U.S. income taxed at different rate than U.S. statutory rate 4.0 % 0.8 % 2.2 % Foreign derived intangible income taxation (1.6) % (1.5) % (1.8) % Goodwill impairment 1.1 % — % — % Compensation related — % (0.8) % (0.5) % Non-taxable income (3.3) % — % — % Uncertain tax positions 1.5 % 0.5 % — % Other (0.1) % — % — % Effective income tax rate 25.7 % 22.8 % 24.0 % |
Schedule of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding amounts accrued for potential interest and penalties, is as follows as of December 31: ($ in millions) 2020 2019 2018 Unrecognized tax benefits, beginning of year $ 14.5 $ 11.5 $ 11.3 Additions based on tax positions related to the current year 8.5 0.4 0.2 Additions for tax positions of prior years 0.5 2.6 — Reductions for tax positions of prior years (0.6) — — Lapse of statute of limitations (0.3) — — Settlements (2.1) — — Effect of foreign currency translation 0.3 — — Separation-related adjustments (3.4) — — Unrecognized tax benefits, end of year $ 17.4 $ 14.5 $ 11.5 |
Restructuring and Other Relat_2
Restructuring and Other Related Charges (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and other related charges | Restructuring and other related charges for the years ended December 31 were as follows: ($ in millions) 2020 2019 2018 Employee severance related $ 4.9 $ 6.1 $ 2.0 Facility exit and other related — 0.1 — Impairment charges — — 0.5 Total restructuring and other related charges $ 4.9 $ 6.2 $ 2.5 ($ in millions) 2020 2019 2018 Cost of sales $ 0.2 $ 2.0 $ 0.4 Selling, general and administrative expenses 4.7 4.2 2.1 Total $ 4.9 $ 6.2 $ 2.5 |
Accrual balance and utilization by type of restructuring cost | The table below summarizes the accrual balance and utilization by type of restructuring cost associated with our restructuring actions: ($ in millions) Balance as of January 1, 2019 Costs Paid/ Balance Costs Paid/ Balance as of December 31, 2020 Employee severance and related $ 1.7 $ 6.1 $ (3.3) $ 4.5 $ 4.9 $ (6.1) $ 3.3 Facility exit and other related 0.1 0.1 — 0.2 — (0.2) — Total $ 1.8 $ 6.2 $ (3.3) $ 4.7 $ 4.9 $ (6.3) $ 3.3 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Future Compensation | Future compensation amounts will be adjusted for any changes in estimated forfeitures: ($ in millions) Stock Awards $ 27.3 Stock options 14.2 Total unrecognized compensation cost $ 41.5 |
Schedule of Stock Option Activity | The following summarizes option activity under the Stock Plan and the Fortive Plans for the years ended December 31, 2020, 2019 and 2018 (in thousands, except price per share and numbers of years): Options (c) Weighted Average Exercise Price (c) Weighted Aggregate Outstanding as of January 1, 2018 1,896 $ 38.09 Granted 318 76.67 Exercised (292) 28.99 Canceled/forfeited (61) 54.13 Outstanding as of December 31, 2018 1,861 44.78 Granted 376 77.47 Exercised (335) 28.18 Canceled/forfeited (148) 42.67 Outstanding as of December 31, 2019 1,754 53.74 Granted 815 Exercised (360) Canceled/forfeited (80) Aggregate impact of conversion related to the Separation (a) 2,406 Outstanding as of December 31, 2020 4,535 $ 27.17 7.3 $ 28,288 Vested and expected to vest as of December 31, 2020 (b) 3,530 $ 26.40 7.0 $ 24,736 Exercisable as of December 31, 2020 1,607 $ 21.21 5.2 $ 19,597 (a) The “Aggregate impact of conversion related to the Separation” represents the additional stock options issued as a result of the Separation by applying the “concentration method” to convert employee options based on the ratio of the fair value of Fortive and Vontier common stock calculated using the closing prices as of October 8, 2020. (b) The “expected to vest” options are the net unvested options that remain after applying the forfeiture rate assumption to total unvested options. (c) The options and weighted average exercise price for the periods prior to the Separation are pre-impact of the modification of the awards related to the Separation. Options outstanding as of December 31, 2020 are summarized below (in millions; except price per share and numbers of years): Outstanding Vested Exercise Price Number of Options Average Exercise Price Average Remaining Life Number of Options Average Exercise Price $9.92 - $23.46 1.5 $ 18.23 5 1.2 $ 17.27 $23.47 - $29.34 0.2 28.93 9 — 28.60 $29.35 - $31.46 2.2 31.37 9 0.2 31.12 $31.47 - $33.43 0.5 33.39 8 0.1 33.34 $33.44 - $33.66 0.1 33.66 10 0.1 33.66 Total shares 4.5 1.6 The following summarizes aggregate intrinsic value and cash receipts related to stock option exercise activity under the Stock Plan and the Fortive Plans for the years ended December 31: ($ in millions) 2020 2019 2018 Aggregate intrinsic value of stock options exercised $ 9.6 $ 14.2 $ 14.3 Cash receipts from stock options exercised (a) $ 9.4 $ 11.0 $ 8.3 (a) Cash receipts prior to the Separation were recorded as an increase to Former Parent's investment. This amount was $7.6 million, $11.0 million and $8.3 million in 2020, 2019, and 2018, respectively. |
Schedule of Stock Unit Activity | The following summarizes information related to Stock Award activity under the Stock Plan and the Fortive Plans for the years ended December 31, 2020, 2019 and 2018 (in thousands; except price per share): Number of Stock Awards (b) Weighted Average Unvested as of January 1, 2018 374 $ 45.92 Granted 106 77.78 Vested (124) 41.28 Forfeited (15) 53.23 Unvested as of December 31, 2018 341 57.63 Granted 132 77.15 Vested (106) 74.77 Forfeited (48) 56.69 Unvested as of December 31, 2019 319 62.00 Granted 593 Vested (96) Forfeited (26) Aggregate impact of conversion related to the Separation (a) 592 Unvested as of December 31, 2020 1,382 (a) The “Aggregate impact of conversion related to the Separation” represents the additional Stock Awards issued as a result of the Separation by applying the “concentration method” to convert Stock Awards based on the ratio of the fair value of Fortive and Vontier common stock calculated using the closing prices as of October 8, 2020. (b) The awards and weighted average grant-date fair value for the periods prior to the Separation are pre-impact of the modification of the awards related to the Separation. |
Schedule of Assumptions Used | The fair value of each stock option issued was estimated on the date of grant using the Black-Scholes model for service condition awards with the following weighted average assumptions for the years ended December 31: 2020 2019 2018 Risk-free interest rate 0.42 % 1.43% - 2.60% 2.71% - 2.96% Volatility 27.2 % 19.9 % 18.2 % Dividend yield — % 0.37 % 0.37 % Expected years until exercise 6.5 5.5 - 8.0 5.5 - 8.0 Weighted average fair value at date of grant $ 9.95 $ 19.17 $ 18.66 |
Capital Stock and Earnings Pe_2
Capital Stock and Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Information related to the calculation of net earnings per share of common stock is summarized as follows: Year Ended December 31 ($ and shares in millions, except per share amounts) 2020 2019 2018 Numerator: Net earnings $ 342.0 $ 436.5 $ 385.5 Denominator: Basic weighted average common shares outstanding 168.4 168.4 168.4 Effect of dilutive stock options and RSUs 1.0 — — Diluted weighted average common shares outstanding 169.4 168.4 168.4 Earnings per share: Basic $ 2.03 $ 2.59 $ 2.29 Diluted $ 2.02 $ 2.59 $ 2.29 Anti-dilutive shares 2.7 — — |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The amount of related party expenses allocated to the Company from Fortive and its subsidiaries for years ended December 31 were as follows: ($ in millions) 2020 2019 2018 Allocated corporate expenses $ 28.0 $ 27.5 $ 26.7 Directly attributable expenses: Insurance programs expenses 2.2 2.4 2.1 Medical insurance programs expenses 31.4 42.4 33.6 Deferred compensation program expenses 0.9 0.9 0.9 Total related-party expenses $ 62.5 $ 73.2 $ 63.3 Following the Separation, we independently incur expenses as a stand-alone company and no expenses are allocated by Fortive. |
Business Overview (Details)
Business Overview (Details) | Oct. 09, 2020USD ($) | Sep. 29, 2020USD ($) | Dec. 31, 2020USD ($)countrysegment |
Product Information [Line Items] | |||
Number of countries in which entity operates | country | 30 | ||
Number of reportable segments | segment | 1 | ||
Number of operating segments | segment | 2 | ||
Term Loans | |||
Product Information [Line Items] | |||
Amount drawn on facility | $ 1,800,000,000 | $ 1,800,000,000 | |
Three-Year Term Loans | Line of Credit | |||
Product Information [Line Items] | |||
Debt term | 3 years | 3 years | |
Line of credit facility, maximum borrowing capacity | $ 800,000,000 | $ 800,000,000 | |
Two-Year Term Loans | Line of Credit | |||
Product Information [Line Items] | |||
Debt term | 2 years | 2 years | |
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | |
Revolving credit facility | Line of Credit | Revolving Credit Facility | |||
Product Information [Line Items] | |||
Debt term | 3 years | 3 years | |
Line of credit facility, maximum borrowing capacity | $ 750,000,000 | $ 750,000,000 | |
Revolving credit facility | Line of Credit | Swingline Loans | |||
Product Information [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 25,000,000 | 25,000,000 | |
Revolving credit facility | Line of Credit | Letter of Credit | |||
Product Information [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 75,000,000 | $ 75,000,000 | |
Fortive Separation Agreement | Affiliated Entity | |||
Product Information [Line Items] | |||
Payable to Fortive within 90 days | 86,100,000 | ||
Consideration For Contribution of Certain Assets and Liabilities | Affiliated Entity | |||
Product Information [Line Items] | |||
Expenses from transactions with related party | $ 1,600,000,000 | ||
Vontier | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff | Fortive | |||
Product Information [Line Items] | |||
Spinoff transaction, percentage of outstanding common stock distributed (as a percent) | 80.10% | ||
Shares of Vontier converted into shares of Fortive (in shares) | 2.5 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 27, 2020USD ($) | Dec. 31, 2020USD ($)reporting_unit | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Long term financing receivables | $ (233,500,000) | $ (259,000,000) | ||
Provision for credit loss | 42,900,000 | 38,200,000 | $ 42,400,000 | |
Impairment of goodwill | $ 85,300,000 | $ 85,300,000 | $ 0 | $ 0 |
Number of reporting units | reporting_unit | 5 | |||
Number of reporting units elected to apply goodwill impairment assessment guidance | reporting_unit | 4 | |||
Goodwill attributable to reporting units | $ 817,100,000 | |||
Goodwill attributable to reporting units (percent) | 77.20% | |||
Revision of Prior Period, Reclassification, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Long term financing receivables | $ 3,500,000 | |||
Other assets | $ 3,500,000 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Building | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 30 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 10 years |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) $ in Millions | Oct. 09, 2019USD ($) | Sep. 13, 2019USD ($)country | Dec. 12, 2018USD ($) | Sep. 11, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 1,092.1 | $ 1,157.8 | $ 1,139.5 | |||||
Loss on divestiture | $ 0 | $ (0.1) | 0 | |||||
Tritium | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of countries with installations | country | 38 | |||||||
ACIS | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from divestiture | $ 1.7 | |||||||
Loss on divestiture | $ (0.1) | |||||||
Tritium | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire minority interest | $ 44.9 | |||||||
Payment to acquire additional interest in investment | $ 4.1 | |||||||
Midco | ||||||||
Business Acquisition [Line Items] | ||||||||
Total purchase price | $ 35.9 | 35.9 | ||||||
Revenue of prior fiscal year | $ 37 | |||||||
Goodwill | $ 29.4 | $ 29.4 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Schedule of Business Combinations (Details) - USD ($) $ in Millions | Dec. 12, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,139.5 | $ 1,092.1 | $ 1,157.8 | |
Midco | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | 3.7 | |||
Inventories | 3.9 | |||
Property, plant and equipment | 0.4 | |||
Goodwill | $ 29.4 | 29.4 | ||
Trade accounts payable | (0.1) | |||
Other assets and liabilities, net | (1.4) | |||
Net cash consideration | $ 35.9 | $ 35.9 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Pro Forma Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Business Combinations [Abstract] | |
Sales | $ 2,690.6 |
Net earnings | $ 387.4 |
Financing Receivables - Narrati
Financing Receivables - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Net unamortized discount on financing receivable | $ 18.4 | $ 19.3 | ||
Adjustment for new accounting standards | (191.7) | (1,816.1) | $ (1,792.9) | $ (1,738.8) |
Financing receivable, allowance for credit loss | 66.8 | 41.3 | 43.8 | |
Financing receivable, allowance for credit loss, current | 22.4 | 17.2 | ||
Financing receivable, allowance for credit losses | $ 44.4 | 24.1 | ||
PSAs | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing receivable, period for uncollectible status | 180 days | |||
Financing receivable, allowance for credit loss | $ 54.3 | 29.4 | 29.6 | |
Financing receivable, allowance for credit loss, current | 15.8 | 10 | ||
Financing receivable, allowance for credit losses | $ 38.5 | 19.4 | ||
PSAs | Maximum | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing receivable, payment terms | 5 years | |||
Franchisee Notes | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing receivable, period for uncollectible status | 1 year | |||
Financing receivable, allowance for credit loss | $ 12.5 | 11.9 | 14.2 | |
Financing receivable, allowance for credit loss, current | 6.6 | 7.2 | ||
Financing receivable, allowance for credit losses | $ 5.9 | 4.7 | ||
Franchisee Notes | Maximum | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing receivable, payment terms | 10 years | |||
Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for trade accounts and financing receivables | 22.1 | |||
Adjustment for new accounting standards | 16.9 | |||
Financing receivable, allowance for credit loss | 18.5 | 0 | ||
Cumulative Effect, Period of Adoption, Adjustment | PSAs | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing receivable, allowance for credit loss | 17.5 | 0 | ||
Cumulative Effect, Period of Adoption, Adjustment | Franchisee Notes | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing receivable, allowance for credit loss | 1 | $ 0 | ||
Cumulative Effect, Period of Adoption, Adjustment | Net Parent Investment | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Adjustment for new accounting standards | $ 16.9 |
Financing Receivables - Schedul
Financing Receivables - Schedule of Financing Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, after Allowance for Credit Loss, Current [Abstract] | ||
Current financing receivables, gross | $ 114.4 | $ 120.3 |
Total allowance for credit losses | 22.4 | 17.2 |
Total current financing receivables, net | 92 | 103.1 |
Financing Receivable, after Allowance for Credit Loss, Noncurrent [Abstract] | ||
Long-term financing receivables, gross | 277.9 | 283.1 |
Long-term financing receivable, allowance for credit losses | 44.4 | 24.1 |
Total long-term financing receivables, net | 233.5 | 259 |
PSAs | ||
Financing Receivable, after Allowance for Credit Loss, Current [Abstract] | ||
Current financing receivables, gross | 98.9 | 104.6 |
Total allowance for credit losses | 15.8 | 10 |
Total current financing receivables, net | 83.1 | 94.6 |
Financing Receivable, after Allowance for Credit Loss, Noncurrent [Abstract] | ||
Long-term financing receivables, gross | 219.3 | 222.9 |
Long-term financing receivable, allowance for credit losses | 38.5 | 19.4 |
Total long-term financing receivables, net | 180.8 | 203.5 |
Franchisee Notes | ||
Financing Receivable, after Allowance for Credit Loss, Current [Abstract] | ||
Current financing receivables, gross | 15.5 | 15.7 |
Total allowance for credit losses | 6.6 | 7.2 |
Total current financing receivables, net | 8.9 | 8.5 |
Financing Receivable, after Allowance for Credit Loss, Noncurrent [Abstract] | ||
Long-term financing receivables, gross | 58.6 | 60.2 |
Long-term financing receivable, allowance for credit losses | 5.9 | 4.7 |
Total long-term financing receivables, net | $ 52.7 | $ 55.5 |
Financing Receivables - Sched_2
Financing Receivables - Schedule of Amortized Cost by Origination Year (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
PSAs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 165.7 | |
2019 | 84.5 | |
2018 | 44 | |
2017 | 18.2 | |
2016 | 4.9 | |
Prior | 0.9 | |
Total | 318.2 | $ 327.5 |
PSAs | Less than 400 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 17.5 | |
2019 | 10.1 | |
2018 | 4.7 | |
2017 | 2.1 | |
2016 | 0.5 | |
Prior | 0.1 | |
Total | 35 | |
PSAs | 400-599 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 25.1 | |
2019 | 13.6 | |
2018 | 7.5 | |
2017 | 3.1 | |
2016 | 0.9 | |
Prior | 0.3 | |
Total | 50.5 | |
PSAs | 600-799 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 51.3 | |
2019 | 26.1 | |
2018 | 13.9 | |
2017 | 6.2 | |
2016 | 2 | |
Prior | 0.3 | |
Total | 99.8 | |
PSAs | 800+ | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 71.8 | |
2019 | 34.7 | |
2018 | 17.9 | |
2017 | 6.8 | |
2016 | 1.5 | |
Prior | 0.2 | |
Total | 132.9 | |
Franchisee Notes | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 20.6 | |
2019 | 22.7 | |
2018 | 11 | |
2017 | 7.7 | |
2016 | 4.8 | |
Prior | 7.3 | |
Total | 74.1 | |
Franchisee Notes | Active distributors | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 20.5 | |
2019 | 21.3 | |
2018 | 9.2 | |
2017 | 5.6 | |
2016 | 3.1 | |
Prior | 3.6 | |
Total | 63.3 | |
Franchisee Notes | Separated distributors | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0.1 | |
2019 | 1.4 | |
2018 | 1.8 | |
2017 | 2.1 | |
2016 | 1.7 | |
Prior | 3.7 | |
Total | $ 10.8 |
Financing Receivables - Sched_3
Financing Receivables - Schedule of Financing Receivable Past Due (Details) - PSAs - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Past due financing receivables | $ 12.5 | $ 12.8 |
Total not considered past due | 305.7 | 314.7 |
Total | 318.2 | 327.5 |
Greater than 90 days past due and accruing interest | 7.2 | 7.2 |
30-59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due financing receivables | 3.5 | 3.7 |
60-90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due financing receivables | 1.8 | 1.9 |
Greater than 90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due financing receivables | $ 7.2 | $ 7.2 |
Financing Receivables - Sched_4
Financing Receivables - Schedule Of Allowance For Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of year | $ 41.3 | $ 43.8 |
Provision for doubtful accounts | 35.2 | 30.9 |
Write-offs | (39) | (35.4) |
Recoveries of amounts previously charged off | 2.9 | 2 |
Other adjustment | 7.9 | 0 |
Balances at end of period | 66.8 | 41.3 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of year | 18.5 | 0 |
Balances at end of period | 18.5 | |
PSAs | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of year | 29.4 | 29.6 |
Provision for doubtful accounts | 29.3 | 26.4 |
Write-offs | (32.5) | (28.2) |
Recoveries of amounts previously charged off | 2.7 | 1.6 |
Other adjustment | 7.9 | 0 |
Balances at end of period | 54.3 | 29.4 |
PSAs | Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of year | 17.5 | 0 |
Balances at end of period | 17.5 | |
Franchisee Notes | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of year | 11.9 | 14.2 |
Provision for doubtful accounts | 5.9 | 4.5 |
Write-offs | (6.5) | (7.2) |
Recoveries of amounts previously charged off | 0.2 | 0.4 |
Other adjustment | 0 | 0 |
Balances at end of period | 12.5 | 11.9 |
Franchisee Notes | Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of year | $ 1 | 0 |
Balances at end of period | $ 1 |
Financing Receivable - Allowanc
Financing Receivable - Allowance For Credit Losses Related To Trade Accounts Receivable (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Cost basis of trade accounts receivable as of December 31, 2020 | $ 373.2 |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses balance at December 31, 2019 | 15 |
Provision for credit losses | 7.7 |
Write-offs | (9.1) |
Foreign currency and other | 0.9 |
Allowance for credit losses balance as of December 31, 2020 | 18.1 |
Net trade accounts receivable balance as of December 31, 2020 | 355.1 |
Cumulative Effect, Period of Adoption, Adjustment | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses balance at December 31, 2019 | $ 3.6 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 90.3 | $ 95.8 |
Work in process | 19.9 | 25.2 |
Raw materials | 123.5 | 103.1 |
Total | $ 233.7 | $ 224.1 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 337,200,000 | $ 327,200,000 | |
Less: accumulated depreciation | (240,400,000) | (225,300,000) | |
Property, plant and equipment, net (a) | 96,800,000 | 101,900,000 | |
Interest capitalized | 0 | 0 | |
Depreciation and amortization expense | 49,300,000 | 52,700,000 | $ 55,800,000 |
United States | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, net (a) | 74,000,000 | 78,500,000 | |
Land and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 6,100,000 | 6,200,000 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 65,500,000 | 57,300,000 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 265,600,000 | $ 263,700,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill Rollforward (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 27, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||||
Goodwill, beginning of period | $ 1,157,800,000 | $ 1,157,800,000 | $ 1,139,500,000 | |
Foreign currency translation and other | 19,600,000 | $ 18,300,000 | ||
Impairment of goodwill | $ (85,300,000) | (85,300,000) | 0 | 0 |
Goodwill, end of period | $ 1,092,100,000 | $ 1,157,800,000 | $ 1,139,500,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 27, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of goodwill | $ 85,300,000 | $ 85,300,000 | $ 0 | $ 0 |
Goodwill | 1,092,100,000 | 1,157,800,000 | 1,139,500,000 | |
Total amortization expense | 29,000,000 | 31,800,000 | $ 30,600,000 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
2021 | 29,300,000 | |||
2022 | 24,900,000 | |||
2023 | 23,700,000 | |||
2024 | 22,600,000 | |||
2025 | 18,800,000 | |||
2026 and thereafter | 29,700,000 | |||
Total | 149,000,000 | $ 168,400,000 | ||
Telematics | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Percentage of fair value in excess of carrying amount (as a percent) | 5.00% | |||
Goodwill | $ 248,400,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Finite and Indefinite Lived Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 352.4 | $ 338.2 |
Accumulated Amortization | (203.4) | (169.8) |
Total | 149 | 168.4 |
Intangible assets, gross (excluding goodwill) | 453.9 | 444.1 |
Total intangible assets, net | $ 250.5 | 274.3 |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 6 years | |
Gross Amount | $ 75.1 | 70.2 |
Accumulated Amortization | (50.9) | (44.5) |
Total | $ 24.2 | 25.7 |
Customer relationships and other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 7 years | |
Gross Amount | $ 277.3 | 268 |
Accumulated Amortization | (152.5) | (125.3) |
Total | 124.8 | 142.7 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangibles, gross carrying amount | $ 101.5 | $ 105.9 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Oct. 08, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other intangible assets, net | $ 250.5 | $ 274.3 | ||
Goodwill | 1,092.1 | 1,157.8 | $ 1,139.5 | |
Fortive | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Deferred compensation liabilities | 4.9 | |||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Deferred compensation liabilities reclassified to APIC | $ 7.6 | |||
Deferred compensation liabilities | 3.7 | 14.7 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Market (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Deferred compensation liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Deferred compensation liabilities | 3.7 | 14.7 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Deferred compensation liabilities | $ 0 | $ 0 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current | ||
Compensation, pension and post retirement benefits | $ 95.9 | $ 75.4 |
Claims, including self-insurance and litigation | 21 | 6.4 |
Taxes, income and other | 62.2 | 11.8 |
Deferred revenue | 87.6 | 87 |
Sales and product allowances | 38.5 | 35.1 |
Warranty | 37 | 56.6 |
Other | 105.9 | 47 |
Total | 448.1 | 319.3 |
Long-term | ||
Compensation, pension and post retirement benefits | 17.8 | 26.7 |
Claims, including self-insurance and litigation | 56.8 | 55.5 |
Taxes, income and other | 39 | 111.5 |
Deferred revenue | 58.3 | 63.2 |
Sales and product allowances | 0 | 0 |
Warranty | 17.6 | 0.8 |
Other | 27.7 | 37.8 |
Total | $ 217.2 | $ 295.5 |
Accrued Expenses and Other Li_4
Accrued Expenses and Other Liabilities - Accrued Warranty Liability (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Payables and Accruals [Abstract] | ||
Accrued warranty liability, beginning of period | $ 57.4 | $ 55.9 |
Accruals for warranties issued during the year | 42.8 | 64.1 |
Settlements made | (45.7) | (61.2) |
Reductions due to dispositions | (1.9) | |
Effect of foreign currency translation | 0.1 | 0.5 |
Accrued warranty liability, end of period | $ 54.6 | $ 57.4 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease, extension period | 15 years | ||
Operating lease, termination period | 1 year | ||
Operating lease cost | $ 22.5 | $ 22.1 | $ 23.1 |
Cash paid for operating leases | 21 | ||
ROU assets obtained in exchange for operating lease obligations | $ 13.6 | ||
Operating lease, weighted average lease term | 8 years 7 months 6 days | ||
Operating lease, discount rate (as a percent) | 3.10% |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturities (Details) $ in Millions | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 11.8 |
2022 | 8.2 |
2023 | 6.3 |
2024 | 4.3 |
2025 | 3.3 |
Thereafter | 16.7 |
Total lease payments | 50.6 |
Less: imputed interest | (8.2) |
Total lease liabilities | $ 42.4 |
Financing - Components of Debt
Financing - Components of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total short-term borrowings | $ 10.9 | $ 16.8 |
Total long-term debt | 1,800 | 24.6 |
Less: debt issuance costs | (4.7) | 0 |
Total long-term debt, net | 1,795.3 | 24.6 |
India Credit Facility | ||
Debt Instrument [Line Items] | ||
Total short-term borrowings | 10.9 | 12.6 |
Other short-term borrowings and bank overdrafts | ||
Debt Instrument [Line Items] | ||
Total short-term borrowings | 0 | 4.2 |
Related-party loans with Former Parent | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 0 | 24.6 |
Two-Year Term Loans | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 1,000 | 0 |
Three-Year Term Loans | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 800 | $ 0 |
Financing - Schedule of Contrac
Financing - Schedule of Contractual Maturities of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total principal payments | $ 1,800 | $ 24.6 |
Unsecured Debt | ||
Debt Instrument [Line Items] | ||
2021 | 0 | |
2022 | 1,000 | |
2023 | 800 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total principal payments | $ 1,800 |
Financing - Narrative (Details)
Financing - Narrative (Details) | Oct. 09, 2020USD ($) | Sep. 29, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020INR (₨) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |||||
Interest payments | $ 5,900,000 | ||||
Total long-term debt | 1,800,000,000 | $ 24,600,000 | |||
Fortive | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs paid by fortive | $ 7,700,000 | ||||
Consideration For Contribution of Certain Assets and Liabilities | Affiliated Entity | |||||
Debt Instrument [Line Items] | |||||
Expenses from transactions with related party | $ 1,600,000,000 | ||||
Payment For Adjustment For Excess Cash Balances | Affiliated Entity | |||||
Debt Instrument [Line Items] | |||||
Expenses from transactions with related party | 200,000,000 | ||||
Three-Year Term Loans | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 800,000,000 | 0 | |||
Three-Year Term Loans | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Debt term | 3 years | 3 years | |||
Line of credit facility, maximum borrowing capacity | $ 800,000,000 | $ 800,000,000 | |||
Two-Year Term Loans | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 1,000,000,000 | 0 | |||
Two-Year Term Loans | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Debt term | 2 years | 2 years | |||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | |||
Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Amount drawn on facility | $ 0 | ||||
Consolidated leverage ratio, maximum | 3.75 | ||||
Consolidated interest coverage ratio, minimum | 3.50 | ||||
Term Loans | |||||
Debt Instrument [Line Items] | |||||
Amount drawn on facility | $ 1,800,000,000 | 1,800,000,000 | |||
Related-party loans with Former Parent | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | 0 | $ 24,600,000 | |||
Weighted average annual interest rate | 1.00% | ||||
India Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 11,600,000 | ₨ 850,000,000 | |||
Remaining borrowing capacity (less than) | $ 1,000,000 | ||||
Effective interest rate (as a percent) | 5.75% | ||||
Other short-term borrowings and bank overdrafts | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate (as a percent) | 9.00% | ||||
Line of Credit | Three-Year Term Loans | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 1.90% | 1.90% | |||
Total long-term debt | $ 800,000,000 | ||||
Line of Credit | Three-Year Term Loans | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Spread on variable rate | 1.75% | ||||
Line of Credit | Two-Year Term Loans | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 1.77% | 1.77% | |||
Total long-term debt | $ 1,000,000,000 | ||||
Line of Credit | Two-Year Term Loans | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Spread on variable rate | 1.625% | ||||
Revolving Credit Facility | Revolving credit facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Debt term | 3 years | 3 years | |||
Line of credit facility, maximum borrowing capacity | $ 750,000,000 | $ 750,000,000 | |||
Revolving Credit Facility | Revolving credit facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee, unused capacity (as a percent) | 0.15% | ||||
Revolving Credit Facility | Revolving credit facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee, unused capacity (as a percent) | 0.325% | ||||
Revolving Credit Facility | Revolving credit facility | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Spread on variable rate | 1.525% | ||||
Swingline Loans | Revolving credit facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 25,000,000 | $ 25,000,000 | |||
Letter of Credit | Revolving credit facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 75,000,000 | $ 75,000,000 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Pension benefit obligations | $ 21.3 | $ 18.2 | |
Fair value of plan assets | 8.6 | 7.7 | |
Funded (unfunded) status of plan | (12.7) | (10.5) | |
Net periodic benefit costs | 0.6 | 0.7 | $ 0.9 |
Compensation expense recognized for 401(k) | $ 39.5 | $ 14.9 | $ 14.3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,816.1 | $ 1,792.9 | $ 1,738.8 |
Increase (decrease) | 44.6 | 22 | (33) |
Other comprehensive income (loss) before reclassifications, net of income taxes | 44.6 | 22 | (33) |
Amounts reclassified from accumulated other comprehensive income (loss): | |||
Increase (decrease) | 0.5 | 0.4 | 0.5 |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes: | 0.5 | 0.4 | 0.5 |
Other comprehensive income (loss) | 45.1 | 22.4 | (32.5) |
Ending balance | 191.7 | 1,816.1 | 1,792.9 |
Foreign currency translation adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 153.7 | 131.3 | 164.8 |
Increase (decrease) | 44.6 | 22.4 | (33.5) |
Other comprehensive income (loss) before reclassifications, net of income taxes | 44.6 | 22.4 | (33.5) |
Amounts reclassified from accumulated other comprehensive income (loss): | |||
Increase (decrease) | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes: | 0 | 0 | 0 |
Other comprehensive income (loss) | 44.6 | 22.4 | (33.5) |
Ending balance | 198.3 | 153.7 | 131.3 |
Pension & post- retirement plan benefit adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (5) | (5) | (6) |
Increase (decrease) | 0 | (0.4) | 0.5 |
Other comprehensive income (loss) before reclassifications, net of income taxes | 0 | (0.4) | 0.5 |
Amounts reclassified from accumulated other comprehensive income (loss): | |||
Increase (decrease) | 0.5 | 0.4 | 0.5 |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes: | 0.5 | 0.4 | 0.5 |
Other comprehensive income (loss) | 0.5 | 0 | 1 |
Ending balance | (4.5) | (5) | (5) |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 148.7 | 126.3 | 158.8 |
Amounts reclassified from accumulated other comprehensive income (loss): | |||
Other comprehensive income (loss) | 45.1 | 22.4 | (32.5) |
Ending balance | $ 193.8 | $ 148.7 | $ 126.3 |
Sales - Contract Assets and Lia
Sales - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 9 | $ 12.8 |
Deferred revenue - current | 87.6 | 87 |
Deferred revenue - noncurrent | 58.3 | 63.2 |
Total contract liabilities | 145.9 | 150.2 |
Contract liabilities, revenue recognized | $ 63.3 | |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets, estimated useful lives | 3 years | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets, estimated useful lives | 5 years | |
Deferred Sales Commissions | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue-related contract assets | $ 81.2 | $ 95.2 |
Sales - Remaining Performance O
Sales - Remaining Performance Obligation (Details) $ in Millions | Dec. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 407.5 |
Sales - Remaining Performance_2
Sales - Remaining Performance Obligation, Expected Timing (Details) | Dec. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 35.00% |
Remaining performance obligation, expected timing | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 65.00% |
Remaining performance obligation, expected timing | 4 years |
Sales - Disaggregation of Reven
Sales - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Sales | $ 2,704.6 | $ 2,772.1 | $ 2,665.9 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,898.3 | 1,875.5 | 1,751.8 |
Western Europe | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 255.7 | 275.5 | 288.4 |
High-growth markets | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 432.9 | 499.4 | 500 |
Rest of world | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 117.7 | 121.7 | 125.7 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,843.2 | 1,811.8 | 1,668.6 |
Sales of products | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 2,459.9 | 2,484 | 2,408.1 |
Sales of services | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 244.7 | 288.1 | 257.8 |
Retail fueling hardware | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 822.9 | 851.2 | 757.4 |
Auto repair | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 526.9 | 555.4 | 562.3 |
Service and other recurring revenue | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 445.3 | 466.7 | 433.6 |
Environmental | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 235.7 | 281.6 | 281.7 |
Retail solutions | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 375.9 | 294.9 | 281.4 |
Software-as-a-service | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 181.6 | 195.5 | 215.8 |
Smart cities | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 32.4 | 38 | 38.1 |
E-mobility | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 24.2 | 2.1 | 0 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 59.7 | 86.7 | 95.6 |
Mobility technologies | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 2,087.5 | 2,134.2 | 2,026.3 |
Diagnostics and repair technologies | |||
Disaggregation of Revenue [Line Items] | |||
Sales | $ 617.1 | $ 637.9 | $ 639.6 |
Income Taxes - Earnings Before
Income Taxes - Earnings Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 496.8 | $ 510.9 | $ 460.7 |
Non-U.S. | (36.5) | 54.9 | 46.6 |
Earnings before income taxes | $ 460.3 | $ 565.8 | $ 507.3 |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal U.S. | $ 122.9 | $ 80.2 | $ 71.2 |
Non-U.S. | 19.8 | 19.5 | 25.5 |
State and local | 18.4 | 16.8 | 19.3 |
Deferred: | |||
Federal U.S. | (33.3) | 13.2 | 8.9 |
Non-U.S. | (8.4) | (1.1) | (3.7) |
State and local | (1.1) | 0.7 | 0.6 |
Income tax provision | $ 118.3 | $ 129.3 | $ 121.8 |
Income Taxes - Deferred Assets
Income Taxes - Deferred Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Assets, Net [Abstract] | ||
Allowance for credit losses | $ 22.9 | $ 12.6 |
Financing receivables | 0 | 4.6 |
Operating lease liabilities | 10.2 | 8.7 |
Inventories | 6.3 | 6.9 |
Pension benefits | 0.6 | 0.8 |
Other accruals and prepayments | 23.2 | 25.9 |
Deferred revenue | 9.5 | 6.3 |
Warranty services | 12.6 | 12.3 |
Stock-based compensation expense | 6.7 | 4.3 |
Tax credit and loss carryforwards | 29 | 34.4 |
Other | 4 | 0 |
Valuation allowances | (22.4) | (29.7) |
Total deferred tax assets | 102.6 | 87.1 |
Deferred Tax Liabilities: | ||
Property, plant and equipment | (8.6) | (8) |
Operating lease right-of-use assets | (9.4) | (8.7) |
Insurance, including self-insurance | (18.3) | (78.2) |
Goodwill and other intangibles | (66.2) | (75.7) |
Other | (4.4) | 0.4 |
Total deferred tax liabilities | (106.9) | (170.2) |
Net deferred tax liability | $ (4.3) | $ (83.1) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation Allowance [Line Items] | ||||
Income taxes paid | $ 4.6 | |||
Unrecognized tax benefits, gross | 17.4 | $ 14.5 | $ 11.5 | $ 11.3 |
Unrecognized tax benefits, net | 18.9 | 14.2 | ||
Income tax interest and penalties | 2.8 | 2.7 | ||
Indirect tax benefits | 1.3 | 3 | ||
Potential income tax interest and penalties | 0.3 | $ 0.2 | $ 0.2 | |
Net Parent Investment | ||||
Valuation Allowance [Line Items] | ||||
Income tax receivable | 1.4 | |||
Foreign Tax Authority | ||||
Valuation Allowance [Line Items] | ||||
Valuation allowance decrease | 7.3 | |||
Operating loss carryforwards | 123.1 | |||
Tax credit carryforward | 0.3 | |||
Domestic Tax Authority | ||||
Valuation Allowance [Line Items] | ||||
Operating loss carryforwards | 1.8 | |||
State and Local Jurisdiction | ||||
Valuation Allowance [Line Items] | ||||
Operating loss carryforwards | 25.8 | |||
Tax credit carryforward | $ 0.6 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
Increase (decrease) in tax rate resulting from: | |||
State income taxes (net of federal income tax benefit) | 3.10% | 2.80% | 3.10% |
Non-U.S. income taxed at different rate than U.S. statutory rate | 4.00% | 0.80% | 2.20% |
Foreign derived intangible income taxation | (1.60%) | (1.50%) | (1.80%) |
Goodwill impairment | 1.10% | 0.00% | 0.00% |
Compensation related | 0.00% | (0.80%) | (0.50%) |
Non-taxable income | (3.30%) | 0.00% | 0.00% |
Uncertain tax positions | 1.50% | 0.50% | 0.00% |
Other | (0.10%) | 0.00% | 0.00% |
Effective income tax rate | 25.70% | 22.80% | 24.00% |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of year | $ 14.5 | $ 11.5 | $ 11.3 |
Additions based on tax positions related to the current year | 8.5 | 0.4 | 0.2 |
Additions for tax positions of prior years | 0.5 | 2.6 | 0 |
Reductions for tax positions of prior years | (0.6) | 0 | 0 |
Lapse of statute of limitations | (0.3) | 0 | 0 |
Settlements | (2.1) | 0 | 0 |
Effect of foreign currency translation | 0.3 | 0 | |
Effect of foreign currency translation | 0 | ||
Separation related adjustments | (3.4) | 0 | 0 |
Unrecognized tax benefits, end of year | $ 17.4 | $ 14.5 | $ 11.5 |
Restructuring and Other Relat_3
Restructuring and Other Related Charges - Restructuring and Related Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 4.9 | $ 6.2 | $ 2.5 |
Impairment charges | 0 | 0 | 0.5 |
Employee severance related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 4.9 | 6.1 | 2 |
Facility exit and other related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 0 | $ 0.1 | $ 0 |
Restructuring and Other Relat_4
Restructuring and Other Related Charges - Accrual Balance and Utilization by Type of Restructuring Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | $ 4.7 | $ 1.8 | |
Restructuring charges | 4.9 | 6.2 | $ 2.5 |
Paid/ Settled | (6.3) | (3.3) | |
Ending Balance | 3.3 | 4.7 | 1.8 |
Employee severance related | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 4.5 | 1.7 | |
Restructuring charges | 4.9 | 6.1 | 2 |
Paid/ Settled | (6.1) | (3.3) | |
Ending Balance | 3.3 | 4.5 | 1.7 |
Facility exit and other related | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0.2 | 0.1 | |
Restructuring charges | 0 | 0.1 | |
Paid/ Settled | (0.2) | 0 | |
Ending Balance | $ 0 | $ 0.2 | $ 0.1 |
Restructuring and Other Relat_5
Restructuring and Other Related Charges - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |||
Cash restructuring charges | $ 2 | ||
Noncash restructuring charges | $ 0 | $ 0 | $ 0.5 |
Restructuring and Other Relat_6
Restructuring and Other Related Charges - Charges Included in Statement of Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 4.9 | $ 6.2 | $ 2.5 |
Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0.2 | 2 | 0.4 |
Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 4.7 | $ 4.2 | $ 2.1 |
Litigation and Contingencies (D
Litigation and Contingencies (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 22, 2019 |
Loss Contingencies [Line Items] | |||
Projected insurance recoveries | $ 36,000,000 | $ 24,900,000 | |
0.875% Convertible Senior Notes | Senior Notes | Fortive | |||
Loss Contingencies [Line Items] | |||
Aggregate principal amount of debt issued | $ 1,400,000,000 | ||
Interest rate, stated percentage | 0.875% | ||
Standby Letters of Credit, Bank Guarantees, and Performance and Bid Bonds | |||
Loss Contingencies [Line Items] | |||
Guarantees | 84,500,000 | 36,700,000 | |
Prepaid Expenses and Other Current Assets | |||
Loss Contingencies [Line Items] | |||
Projected insurance recoveries | 10,800,000 | 3,900,000 | |
Other Assets | |||
Loss Contingencies [Line Items] | |||
Projected insurance recoveries | 25,200,000 | 21,000,000 | |
Asbestos Claims | |||
Loss Contingencies [Line Items] | |||
Liabilities associated with future expected cases | 68,000,000 | 54,400,000 | |
Asbestos Claims | Accrued Expenses and Other Current Liabilities | |||
Loss Contingencies [Line Items] | |||
Liabilities associated with future expected cases | 17,500,000 | 5,600,000 | |
Asbestos Claims | Other Noncurrent Liabilities | |||
Loss Contingencies [Line Items] | |||
Liabilities associated with future expected cases | $ 50,500,000 | $ 48,800,000 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional information (Details) $ / shares in Units, $ in Millions | Oct. 08, 2020USD ($) | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)plan$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share-based compensation plans | plan | 0 | |||
Incremental stock-based compensation expense | $ 2 | |||
Shares authorized (in shares) | shares | 17,000,000 | |||
Capital shares reserved for future issuance (in shares) | shares | 11,000,000 | |||
Aggregate value of shares withheld to satisfy tax requirement | $ 4.1 | $ 2.1 | $ 2.6 | |
Unrecognized compensation costs, period for recognition | 2 years | |||
Granted (in dollars per share) | $ / shares | $ 77.47 | $ 76.67 | ||
Exercised (in dollars per share) | $ / shares | 28.18 | 28.99 | ||
Canceled/Forfeited (in dollars per share) | $ / shares | $ 42.67 | $ 54.13 | ||
Fair value of options vested | $ 2.8 | $ 1.9 | $ 1.5 | |
Aggregate intrinsic value of stock options exercised | 9.6 | 14.2 | 14.3 | |
Cash receipts from stock options exercised | 9.4 | 11 | 8.3 | |
Proceeds from stock option exercises | 1.6 | 0 | 0 | |
Net Parent Investment | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from stock option exercises | $ 7.6 | 11 | 8.3 | |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Expiration period | 10 years | |||
Share-based compensation expense | $ 22.5 | |||
Granted (in dollars per share) | $ / shares | $ 33.51 | |||
Exercised (in dollars per share) | $ / shares | 18.70 | |||
Canceled/Forfeited (in dollars per share) | $ / shares | $ 30.10 | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Share-based compensation expense | $ 13.1 | |||
Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 13.8 | |||
Stock Compensation Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in dollars per share) | $ / shares | $ 33.64 | $ 77.15 | $ 77.78 | |
Vested (in dollars per share) | $ / shares | 28.49 | 74.77 | 41.28 | |
Forfeited (in dollars per share) | $ / shares | $ 29.76 | $ 56.69 | $ 53.23 |
Stock Based Compensation - Unre
Stock Based Compensation - Unrecognized Compensation Cost (Details) $ in Millions | Dec. 31, 2020USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 41.5 |
Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | 27.3 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 14.2 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options outstanding, beginning of period (in shares) | 1,754 | 1,861 | 1,896 |
Options granted (in shares) | 815 | 376 | 318 |
Options exercised (in shares) | (360) | (335) | (292) |
Options canceled/forfeited (in shares) | (80) | (148) | (61) |
Aggregate impact of conversion related to the Separation (in shares) | 2,406 | ||
Options outstanding, end of period (in shares) | 4,535 | 1,754 | 1,861 |
Options vested and expected to vest (in shares) | 3,530 | ||
Options exercisable (in shares) | 1,607 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Options outstanding, beginning of period (in dollars per share) | $ 53.74 | $ 44.78 | $ 38.09 |
Options granted (in dollars per share) | 77.47 | 76.67 | |
Options exercised (in dollars per share) | 28.18 | 28.99 | |
Options canceled/forfeited (in dollars per share) | 42.67 | 54.13 | |
Options outstanding, end of period (in dollars per share) | 27.17 | $ 53.74 | $ 44.78 |
Options vested and expected to vest (in dollars per share) | 26.40 | ||
Options exercisable (in dollars per share) | $ 21.21 | ||
Weighted average remaining contractual term, outstanding | 7 years 3 months 18 days | ||
Weighted average remaining contractual term, vested and expected to vest | 7 years | ||
Weighted average remaining contractual term, exercisable | 5 years 2 months 12 days | ||
Aggregate intrinsic value, outstanding | $ 28,288 | ||
Aggregate intrinsic value, vested and expected to vest | 24,736 | ||
Aggregate intrinsic value, exercisable | $ 19,597 |
Stock Based Compensation - St_2
Stock Based Compensation - Stock Award Activity (Details) - Stock Compensation Plan - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Stock Awards | |||
Unvested, beginning of period (in shares) | 319 | 341 | 374 |
Granted (in shares) | 593 | 132 | 106 |
Vested (in shares) | (96) | (106) | (124) |
Forfeited (in shares) | (26) | (48) | (15) |
Aggregate impact of conversion related to the Separation (in shares) | 592 | ||
Unvested, end of period (in shares) | 1,382 | 319 | 341 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Unvested, beginning of period (in dollars per share) | $ 62 | $ 57.63 | $ 45.92 |
Granted (in dollars per share) | 33.64 | 77.15 | 77.78 |
Vested (in dollars per share) | 28.49 | 74.77 | 41.28 |
Forfeited (in dollars per share) | $ 29.76 | 56.69 | 53.23 |
Unvested, end of period (in dollars per share) | $ 62 | $ 57.63 |
Stock Based Compensation - Assu
Stock Based Compensation - Assumptions Used (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.42% | ||
Volatility (as a percent) | 27.20% | 19.90% | 18.20% |
Dividend yield (as a percent) | 0.00% | 0.37% | 0.37% |
Expected years until exercise | 6 years 6 months | ||
Weighted average fair value at date of grant (usd per share) | $ 9.95 | $ 19.17 | $ 18.66 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.43% | 2.71% | |
Expected years until exercise | 5 years 6 months | 5 years 6 months | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.60% | 2.96% | |
Expected years until exercise | 8 years | 8 years |
Stock Based Compensation - St_3
Stock Based Compensation - Stock Option Plans By Exercise Price Range (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding (in shares) | shares | 4.5 |
Options outstanding, average remaining life | 7 years 3 months 18 days |
Options vested (in shares) | shares | 1.6 |
$9.92 - $23.46 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum (in dollars per share) | $ 9.92 |
Exercise price range, maximum (in dollars per share) | $ 23.46 |
Options outstanding (in shares) | shares | 1.5 |
Options outstanding (in dollars per share) | $ 18.23 |
Options outstanding, average remaining life | 5 years |
Options vested (in shares) | shares | 1.2 |
Options vested (in dollars per share) | $ 17.27 |
$23.47 - $29.34 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum (in dollars per share) | 23.47 |
Exercise price range, maximum (in dollars per share) | $ 29.34 |
Options outstanding (in shares) | shares | 0.2 |
Options outstanding (in dollars per share) | $ 28.93 |
Options outstanding, average remaining life | 9 years |
Options vested (in shares) | shares | 0 |
Options vested (in dollars per share) | $ 28.60 |
$29.35 - $31.46 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum (in dollars per share) | 29.35 |
Exercise price range, maximum (in dollars per share) | $ 31.46 |
Options outstanding (in shares) | shares | 2.2 |
Options outstanding (in dollars per share) | $ 31.37 |
Options outstanding, average remaining life | 9 years |
Options vested (in shares) | shares | 0.2 |
Options vested (in dollars per share) | $ 31.12 |
$31.47 - $33.43 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum (in dollars per share) | 31.47 |
Exercise price range, maximum (in dollars per share) | $ 33.43 |
Options outstanding (in shares) | shares | 0.5 |
Options outstanding (in dollars per share) | $ 33.39 |
Options outstanding, average remaining life | 8 years |
Options vested (in shares) | shares | 0.1 |
Options vested (in dollars per share) | $ 33.34 |
$33.44 - $33.66 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum (in dollars per share) | 33.44 |
Exercise price range, maximum (in dollars per share) | $ 33.66 |
Options outstanding (in shares) | shares | 0.1 |
Options outstanding (in dollars per share) | $ 33.66 |
Options outstanding, average remaining life | 10 years |
Options vested (in shares) | shares | 0.1 |
Options vested (in dollars per share) | $ 33.66 |
Capital Stock and Earnings Pe_3
Capital Stock and Earnings Per Share - Narrative (Details) - $ / shares | Oct. 09, 2020 | Sep. 28, 2020 | Aug. 05, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Common stock authorized (in shares) | 1,985,000,000 | 1,000 | |||
Common stock, par value (in dollars per shares) | $ 0.0001 | $ 0.0001 | |||
Preferred stock authorized (in shares) | 15,000,000 | 15,000,000 | |||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 | |||
Issuance of mandatory convertible preferred stock (in shares) | 1,000 | ||||
Shares converted for capitalization (in shares) | 168,378.946 | ||||
Shares recapitalized (in shares) | 168,378,946 | ||||
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff | Vontier | Fortive | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Spinoff transaction, ownership percentage after transaction (as a percent) | 19.90% | ||||
Spinoff transaction, percentage of outstanding common stock distributed (as a percent) | 80.10% |
Capital Stock and Earnings Pe_4
Capital Stock and Earnings Per Share - Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||
Net earnings | $ 342 | $ 436.5 | $ 385.5 |
Denominator: | |||
Basic weighted average common shares outstanding (in shares) | 168.4 | 168.4 | 168.4 |
Effect of dilutive stock options and RSUs (in shares) | 1 | 0 | 0 |
Diluted weighted average common shares outstanding (in shares) | 169.4 | 168.4 | 168.4 |
Earnings per share: | |||
Earnings per share, Basic (in dollars per share) | $ 2.03 | $ 2.59 | $ 2.29 |
Earnings per share, Diluted (in dollars per share) | $ 2.02 | $ 2.59 | $ 2.29 |
Anti-dilutive shares (in shares) | 2.7 | 0 | 0 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
TSA Expenses | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | $ 13.9 | ||
Related party loans to Fortive | 39.6 | ||
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Expenses with related party | 62.5 | $ 73.2 | $ 63.3 |
Purchases from related party | 16 | 16 | 13 |
Affiliated Entity | Allocated corporate expenses | |||
Related Party Transaction [Line Items] | |||
Expenses with related party | 28 | 27.5 | 26.7 |
Affiliated Entity | Insurance programs expenses | |||
Related Party Transaction [Line Items] | |||
Expenses with related party | 2.2 | 2.4 | 2.1 |
Affiliated Entity | Medical insurance programs expenses | |||
Related Party Transaction [Line Items] | |||
Expenses with related party | 31.4 | 42.4 | 33.6 |
Affiliated Entity | Deferred compensation program expenses | |||
Related Party Transaction [Line Items] | |||
Expenses with related party | $ 0.9 | 0.9 | 0.9 |
Affiliated Entity | Related-party loans with Former Parent | |||
Related Party Transaction [Line Items] | |||
Related party loans to Fortive | 24.6 | ||
Interest income from related parties | $ 5.5 | $ 8.5 |
Subsequent Events (Details)
Subsequent Events (Details) shares in Millions | 1 Months Ended |
Jan. 31, 2021shares | |
Subsequent Event | Secondary Offering | |
Subsequent Event [Line Items] | |
Sale of Stock, Number of Shares Issued in Transaction | 33.5 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-09, Allowance, Credit Loss | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 56.3 | $ 59.9 | $ 54.6 |
Charged to Costs & Expenses | 42.9 | 38.2 | 42.4 |
Impact of Currency | 0.3 | (0.1) | (0.5) |
Charged to Other Accounts | 30.6 | 0.9 | 0.4 |
Write Offs, Write Downs & Deductions | (45.2) | (42.6) | (37) |
Ending balance | 84.9 | 56.3 | 59.9 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 29.7 | 24.7 | 14.3 |
Charged to Costs & Expenses | 0 | 0 | 0 |
Impact of Currency | 0 | 0 | 0 |
Charged to Other Accounts | 0 | 5 | 10.4 |
Write Offs, Write Downs & Deductions | (7.3) | 0 | 0 |
Ending balance | $ 22.4 | $ 29.7 | $ 24.7 |