Document and Entity Information
Document and Entity Information - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | ITT INC. | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2023 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity File Number | 001-05672 | |
Entity Central Index Key | 0000216228 | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 81-1197930 | |
Entity Address, Address Line One | 100 Washington Boulevard | |
Entity Address, Address Line Two | 6th Floor | |
Entity Address, City or Town | Stamford | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06902 | |
City Area Code | (914) | |
Local Phone Number | 641-2000 | |
Title of 12(b) Security | Common Stock, par value $1.00 per share | |
Trading Symbol | ITT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 82.1 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 822.1 | $ 753.6 | $ 2,453.9 | $ 2,213.1 |
Cost of revenue | 542.7 | 520.2 | 1,632.6 | 1,539.1 |
Gross profit | 279.4 | 233.4 | 821.3 | 674 |
General and administrative expenses | 66.9 | 47.5 | 203.6 | 164.9 |
Sales and marketing expenses | 44.4 | 39.5 | 131.2 | 118.3 |
Research and development expenses | 25 | 24.4 | 77.1 | 73.7 |
Operating income | 143.1 | 122 | 409.4 | 317.1 |
Interest and non-operating expense, net | 1.4 | 2.3 | 7.4 | 2.6 |
Income from continuing operations before income tax expense | 141.7 | 119.7 | 402 | 314.5 |
Income tax expense | 29.9 | 16.4 | 80.6 | 59.9 |
Income from continuing operations | 111.8 | 103.3 | 321.4 | 254.6 |
Loss from discontinued operations, net of tax benefit of $0.0, $(0.1), $0.0, and $0.3, respectively | 0 | (0.1) | 0 | (1.3) |
Net income | 111.8 | 103.2 | 321.4 | 253.3 |
Less: Income attributable to noncontrolling interests | 1 | 0.8 | 2.4 | 1.5 |
Net income attributable to ITT Inc. | 110.8 | 102.4 | 319 | 251.8 |
Amounts attributable to ITT Inc.: | ||||
Income from continuing operations | 110.8 | 102.5 | 319 | 253.1 |
Loss from discontinued operations, net of tax | 0 | (0.1) | 0 | (1.3) |
Net income attributable to ITT Inc. | $ 110.8 | $ 102.4 | $ 319 | $ 251.8 |
Basic: | ||||
Continuing operations | $ 1.35 | $ 1.24 | $ 3.87 | $ 3.03 |
Discontinued operations | 0 | 0 | 0 | (0.02) |
Earnings Per Share, Basic, Total | 1.35 | 1.24 | 3.87 | 3.01 |
Diluted: | ||||
Continuing operations | 1.34 | 1.23 | 3.86 | 3.02 |
Discontinued operations | 0 | 0 | 0 | (0.02) |
Earnings Per Share, Diluted, Total | $ 1.34 | $ 1.23 | $ 3.86 | $ 3 |
Weighted average common shares – basic | 82.1 | 82.7 | 82.4 | 83.6 |
Weighted average common shares – diluted | 82.5 | 83 | 82.7 | 83.9 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Income Statement [Abstract] | ||||
Tax Benefit (Expense) of Discontinued Operations | $ 0 | $ (0.1) | $ 0 | $ 0.3 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 111.8 | $ 103.2 | $ 321.4 | $ 253.3 |
Other comprehensive (loss): | ||||
Net foreign currency translation adjustment | (30.5) | (44.6) | (34.7) | (127.1) |
Net change in postretirement benefit plans, net of tax impacts of $(0.3), $(3.4), $1.8 and $(3.1), respectively | 0.9 | 11.4 | 0.2 | 10.9 |
Other comprehensive (loss) | (29.6) | (33.2) | (34.5) | (116.2) |
Comprehensive income | 82.2 | 70 | 286.9 | 137.1 |
Less: Comprehensive income attributable to noncontrolling interests | 1 | 0.8 | 2.4 | 1.5 |
Comprehensive income attributable to ITT Inc. | 81.2 | 69.2 | 284.5 | 135.6 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax [Abstract] | ||||
Amortization of prior service benefit, net of tax expense of $0.4, $0.3, $1.1 and $0.9, respectively | (1.1) | (1.1) | (3.4) | (3) |
Amortization of net actuarial loss, net of tax benefit (expense) of $0.1, $(0.1), $0.1 and $(0.4), respectively | (0.2) | 0.7 | 0 | 2.1 |
Other Adjustments [Abstract] | ||||
Deferred tax asset valuation allowance reversal | 0 | 0 | 1.4 | 0 |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 2.2 | 5.7 | 2.2 | 5.7 |
Prior service credit, net of tax expense of $—, $(1.9), $—, and $(1.9), respectively | 0 | 6.1 | 0 | 6.1 |
Net change in postretirement benefit plans, net of tax | $ (0.9) | $ (11.4) | $ (0.2) | $ (10.9) |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical)) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent | $ (0.3) | $ (3.4) | $ 1.8 | $ (3.1) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax | 0.4 | 0.3 | (1.1) | (0.9) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | 0.1 | (0.1) | 0.1 | (0.4) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax | $ (0.6) | (1.8) | $ (0.6) | (1.8) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Tax | $ (1.9) | $ (1.9) |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalents | $ 430.8 | $ 561.2 | |
Receivables, net | 674 | 628.8 | |
Inventories | [1] | 574.3 | 533.9 |
Other current assets | 102.4 | 112.9 | |
Total current assets | 1,781.5 | 1,836.8 | |
Non-current assets: | |||
Plant, property and equipment, net | 523.2 | 526.8 | |
Goodwill | 1,001.1 | 964.8 | |
Other intangible assets, net | 123 | 112.8 | |
Other non-current assets | 373.5 | 339.1 | |
Total non-current assets | 2,020.8 | 1,943.5 | |
Total assets | 3,802.3 | 3,780.3 | |
Current liabilities: | |||
Commercial paper and current maturities of long-term debt | 245.4 | 451 | |
Accounts payable | 408.1 | 401.1 | |
Accrued and other current liabilities | 390.5 | 333.4 | |
Total current liabilities | 1,044 | 1,185.5 | |
Non-current liabilities: | |||
Postretirement benefits | 132 | 137.2 | |
Other non-current liabilities | 207.1 | 200.2 | |
Total non-current liabilities | 339.1 | 337.4 | |
Total liabilities | 1,383.1 | 1,522.9 | |
Common stock: [Abstract] | |||
Issued and outstanding – 82.1 shares and 82.7 shares, respectively | 82.1 | 82.7 | |
Retained earnings | 2,705.8 | 2,509.7 | |
Accumulated other comprehensive income (loss): | |||
Postretirement benefits | 3.8 | 3.6 | |
Cumulative translation adjustments | (382.6) | (347.9) | |
Total accumulated other comprehensive loss | (378.8) | (344.3) | |
Total ITT Inc. shareholders’ equity | 2,409.1 | 2,248.1 | |
Noncontrolling interests | 10.1 | 9.3 | |
Total shareholders’ equity | 2,419.2 | 2,257.4 | |
Total liabilities and shareholders’ equity | $ 3,802.3 | $ 3,780.3 | |
[1]We recorded inventory write-downs of $1.6 and $5.6 related to inventories held by entities impacted by the Russia-Ukraine war during the nine months ended September 30, 2023 and October 1, 2022, respectively. See Note 1, Description of Business and Basis of Presentation , for further information. |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 250 | |
Common stock, par value | $ 1 | |
Common stock, shares issued | 82.1 | 82.7 |
Common stock, shares outstanding | 82.1 | 82.7 |
CONSOLIDATED CONDENSED STATEM_5
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Operating Activities | ||
Income from continuing operations attributable to ITT Inc. | $ 319 | $ 253.1 |
Adjustments to income from continuing operations: | ||
Depreciation and amortization | 82.8 | 81.5 |
Equity-based compensation | 15.1 | 13.6 |
Gain on sale of business | (7.2) | 0 |
Other non-cash charges, net | 22.5 | 20.2 |
Changes in assets and liabilities: | ||
Change in receivables | (54.7) | (120.8) |
Change in inventories | (40.9) | (111.3) |
Change in contract assets | 0.5 | (15.6) |
Change in contract liabilities | 11.1 | 24.4 |
Change in accounts payable | 16.5 | 54 |
Change in accrued expenses | 29.4 | (30.6) |
Change in income taxes | (2.1) | (12.1) |
Other, net | (24.4) | (41.2) |
Net Cash – Operating Activities | 367.6 | 115.2 |
Investing Activities | ||
Capital expenditures | (68.5) | (73.7) |
Proceeds from Sales of Business, Affiliate and Productive Assets | 10.5 | 0 |
Acquisitions, net of cash acquired | (79.3) | (146.9) |
Payments to acquire interest in unconsolidated subsidiaries | (1.4) | (25.6) |
Other, net | (3.3) | 1.4 |
Net Cash – Investing Activities | (142) | (244.8) |
Financing Activities | ||
Commercial paper, net borrowings | (204.3) | 363.1 |
Share repurchases under repurchase plan | (60) | (245.6) |
Payments for taxes related to net share settlement of stock incentive plans | (6.7) | (8.5) |
Dividends paid | (71.9) | (66.1) |
Other, net | (2.3) | 0.1 |
Net Cash – Financing Activities | (345.2) | 43 |
Exchange rate effects on cash and cash equivalents | (10.4) | (46.3) |
Net cash – operating activities of discontinued operations | (0.2) | (0.1) |
Net change in cash and cash equivalents | (130.2) | (133) |
Cash and cash equivalents – beginning of year (includes restricted cash of $0.7 and $0.8, respectively) | 561.9 | 648.3 |
Cash and Cash Equivalents – End of Period (includes restricted cash of $0.9 and $0.8, respectively) | 431.7 | 515.3 |
Cash paid during the year for: | ||
Interest | 12.3 | 5.7 |
Income taxes, net of refunds received | $ 72 | $ 63.5 |
CONSOLIDATED CONDENSED STATEM_6
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Dec. 31, 2021 |
Restricted Cash | $ 0.9 | $ 0.7 | $ 0.8 | $ 0.8 |
CONSOLIDATED CONDENSED STATEM_7
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] |
Common Stock Outstanding, Beginning Balance at Dec. 31, 2021 | 85.5 | ||||
Common Stock, Shares [Abstract] | |||||
Activity from stock incentive plans, shares | 0.3 | ||||
Share repuchases, shares | (3) | ||||
Share repurchases from net settlement of employee stock incentive plans, shares | (0.1) | ||||
Common Stock Outstanding, Ending Balance at Oct. 01, 2022 | 82.7 | ||||
Total shareholders' equity, Beginning Balance at Dec. 31, 2021 | $ 2,230.7 | $ 85.5 | $ 2,461.6 | $ (321.3) | $ 4.9 |
Shareholders' Equity, Dollars [Abstract] | |||||
Net income | 253.3 | 0 | 251.8 | 0 | 1.5 |
Shares issued and activity from stock incentive plans | 15.4 | 0.3 | 15.1 | 0 | 0 |
Shares repurchased under repurchase plan | (245.3) | (3) | (242.3) | 0 | 0 |
Shares withheld related to net share settlement of stock incentive plans | (8.7) | (0.1) | (8.6) | 0 | 0 |
Dividends Declared | (65.8) | (65.8) | 0 | 0 | |
Dividends to noncontrolling interest | (0.5) | (0.5) | |||
Purchase of noncontrolling interest | 2.7 | 2.7 | |||
Net change in postretirement benefit plans, net of tax impacts of $(0.3), $(3.4), $1.8 and $(3.1), respectively | 10.9 | 10.9 | |||
Net change during period - AOCI Cumulative Translation Adjustment | (127.1) | (127.1) | |||
Other | (0.1) | (0.1) | |||
Total shareholders' equity, Ending Balance at Oct. 01, 2022 | 2,065.5 | $ 82.7 | 2,411.8 | (437.5) | 8.5 |
Common Stock Outstanding, Beginning Balance at Jul. 02, 2022 | 82.7 | ||||
Common Stock, Shares [Abstract] | |||||
Activity from stock incentive plans, shares | 0 | ||||
Share repuchases, shares | 0 | ||||
Share repurchases from net settlement of employee stock incentive plans, shares | 0 | ||||
Common Stock Outstanding, Ending Balance at Oct. 01, 2022 | 82.7 | ||||
Total shareholders' equity, Beginning Balance at Jul. 02, 2022 | 2,016.6 | $ 82.7 | 2,329.9 | (404.3) | 8.3 |
Shareholders' Equity, Dollars [Abstract] | |||||
Net income | 103.2 | 0 | 102.4 | 0 | 0.8 |
Shares issued and activity from stock incentive plans | 6 | 0 | 6 | 0 | 0 |
Shares repurchased under repurchase plan | (4.4) | 0 | (4.4) | 0 | 0 |
Shares withheld related to net share settlement of stock incentive plans | (0.2) | 0 | (0.2) | 0 | 0 |
Dividends Declared | (21.9) | (21.9) | 0 | ||
Dividends to noncontrolling interest | (0.5) | (0.5) | |||
Net change in postretirement benefit plans, net of tax impacts of $(0.3), $(3.4), $1.8 and $(3.1), respectively | 11.4 | 11.4 | |||
Net change during period - AOCI Cumulative Translation Adjustment | (44.6) | (44.6) | |||
Other | (0.1) | 0 | (0.1) | ||
Total shareholders' equity, Ending Balance at Oct. 01, 2022 | $ 2,065.5 | $ 82.7 | 2,411.8 | (437.5) | 8.5 |
Common Stock Outstanding, Beginning Balance at Dec. 31, 2022 | 82.7 | 82.7 | |||
Common Stock, Shares [Abstract] | |||||
Activity from stock incentive plans, shares | 0.2 | ||||
Share repuchases, shares | (0.7) | ||||
Share repurchases from net settlement of employee stock incentive plans, shares | (0.1) | ||||
Common Stock Outstanding, Ending Balance at Sep. 30, 2023 | 82.1 | 82.1 | |||
Total shareholders' equity, Beginning Balance at Dec. 31, 2022 | $ 2,257.4 | $ 82.7 | 2,509.7 | 9.3 | |
Shareholders' Equity, Dollars [Abstract] | |||||
Net income | 321.4 | 319 | 0 | 2.4 | |
Shares issued and activity from stock incentive plans | 15.7 | 0.2 | 15.5 | 0 | 0 |
Shares repurchased under repurchase plan | (60.5) | (0.7) | (59.8) | 0 | 0 |
Shares withheld related to net share settlement of stock incentive plans | (6.7) | (0.1) | (6.6) | 0 | 0 |
Dividends Declared | (72) | (72) | 0 | 0 | |
Dividends to noncontrolling interest | (1.7) | (1.7) | |||
Net change in postretirement benefit plans, net of tax impacts of $(0.3), $(3.4), $1.8 and $(3.1), respectively | 0.2 | 0.2 | |||
Net change during period - AOCI Cumulative Translation Adjustment | (34.7) | (34.7) | |||
Other | 0.1 | 0 | 0 | 0.1 | |
Total shareholders' equity, Ending Balance at Sep. 30, 2023 | $ 2,419.2 | $ 82.1 | 2,705.8 | (378.8) | 10.1 |
Common Stock Outstanding, Beginning Balance at Jul. 01, 2023 | 82.1 | ||||
Common Stock, Shares [Abstract] | |||||
Activity from stock incentive plans, shares | 0 | ||||
Share repurchases from net settlement of employee stock incentive plans, shares | 0 | ||||
Common Stock Outstanding, Ending Balance at Sep. 30, 2023 | 82.1 | 82.1 | |||
Total shareholders' equity, Beginning Balance at Jul. 01, 2023 | $ 2,357.6 | $ 82.1 | 2,614 | (349.2) | 10.7 |
Shareholders' Equity, Dollars [Abstract] | |||||
Net income | 111.8 | 110.8 | 0 | 1 | |
Shares issued and activity from stock incentive plans | 5.2 | 0 | 5.2 | 0 | 0 |
Shares withheld related to net share settlement of stock incentive plans | (0.3) | 0 | (0.3) | 0 | 0 |
Dividends Declared | (23.9) | (23.9) | 0 | 0 | |
Dividends to noncontrolling interest | (1.6) | (1.6) | |||
Net change in postretirement benefit plans, net of tax impacts of $(0.3), $(3.4), $1.8 and $(3.1), respectively | 0.9 | 0.9 | |||
Net change during period - AOCI Cumulative Translation Adjustment | (30.5) | (30.5) | |||
Total shareholders' equity, Ending Balance at Sep. 30, 2023 | $ 2,419.2 | $ 82.1 | $ 2,705.8 | $ (378.8) | $ 10.1 |
CONSOLIDATED CONDENSED STATEM_8
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Dividends declared per share | $ 0.29 | $ 0.264 | $ 0.87 | $ 0.792 |
OTHER CURRENT AND NON-CURRENT A
OTHER CURRENT AND NON-CURRENT ASSETS - Components of Other Current and Non-Current Assets - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Advance payments and other prepaid expenses | $ 44.6 | $ 45 | |
Current contract assets, net | 24.8 | 26.3 | |
Prepaid income taxes | 13.3 | 25.1 | |
Other | 19.7 | 16.5 | |
Other current assets | 102.4 | 112.9 | |
Other employee benefit-related assets | 125.3 | 119.8 | |
Operating lease right-of-use assets(a) | [1] | 83.4 | 73.8 |
Deferred income taxes(b) | [2] | 71.9 | 54.7 |
Equity-method and other investments | 45.7 | 42.9 | |
Capitalized software costs | 9.1 | 12.4 | |
Environmental-related assets | 7 | 9.6 | |
Other | 31.1 | 25.9 | |
Other non-current assets | $ 373.5 | $ 339.1 | |
[1]The increase in the operating lease right-of-use asset balance from December 31, 2022 to September 30, 2023 is primarily driven by the renewal of an operating facility lease in Irvine, California and by the current period acquisition of Micro-Mode.[2]The increase in deferred income taxes from December 31, 2022 to September 30, 2023 is primarily due to benefits of $16.5 from valuation allowance reversals on deferred tax assets in Germany. |
LONG-TERM INCENTIVE EMPLOYEE CO
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Employee Compensation Costs - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based awards | $ 5.4 | $ 5 | $ 16.3 | $ 14.4 |
Equity Based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based awards | 5 | 4.8 | 15.1 | 13.6 |
Liability Based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based awards | $ 0.4 | $ 0.2 | $ 1.2 | $ 0.8 |
CAPITAL STOCK - Additional Info
CAPITAL STOCK - Additional Information - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Aggregate cost of repurchase | $ 4,400 | $ 60,500 | $ 245,300 | |
Number of shares repurchased under settlement of employee tax withholding obligations | 0.1 | |||
Shares repurchased aggregate value under settlement of employee tax withholding obligations | $ 300 | $ 200 | 6,700 | $ 8,700 |
2019 Share Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Share repurchase program | 500,000 | $ 500,000 | ||
Repurchase of shares of common stock | 0.1 | 0.7 | 3 | |
Aggregate cost of repurchase | $ 4,400 | $ 60,500 | $ 245,300 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 78,800 | 78,800 | ||
2023 Share Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Share repurchase program | $ 1,000,000 | $ 1,000,000 |
DESCRIPTION OF BUSINESS, BASIS
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND UPDATES TO SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business ITT Inc. is a diversified manufacturer of highly engineered critical components and customized technology solutions for the transportation, industrial, and energy markets. Unless the context otherwise indicates, references herein to “ITT,” “the Company,” and such words as “we,” “us,” and “our” include ITT Inc. and its subsidiaries. ITT operates through three reportable segments: Motion Technologies (MT), consisting of friction and shock and vibration equipment; Industrial Process (IP), consisting of industrial flow equipment and services; and Connect & Control Technologies (CCT), consisting of electronic connectors, fluid handling, motion control, composite materials and noise and energy absorption products. Financial information for our segments is presented in Note 3, Segment Information . Business Combination On May 2, 2023, we completed the acquisition of Micro-Mode Products, Inc. (Micro-Mode) for a purchase price of $79.3, net of cash acquired. Subsequent to the acquisition, Micro-Mode’s results are reported within our CCT segment. Refer to Note 18, Acquisitions and Investments , for more information. Russia-Ukraine War In February 2022, the United States and other leading nations announced targeted economic sanctions on Russia and certain Russian citizens in response to Russia’s war with Ukraine, which has increased regional instability and global economic and political uncertainty. During the three and nine months ended September 30, 2023, we recorded total pre-tax charges of $0.5 and $3.7, respectively, primarily related to accounts receivable and inventory write-downs due to the suspension of business in Russia. During the three and nine months ended October 1, 2022, we recorded total pre-tax charges of $0.3 and $8.2, respectively, related to impacts from the Russia-Ukraine war. For further discussion of risks stemming from the Russia-Ukraine war, see Part I, Item IA, “Risk Factors” in our 2022 Annual Report for the fiscal year ended December 31, 2022. Basis of Presentation The unaudited consolidated condensed financial statements have been prepared pursuant to the rules and regulations of the SEC and, in the opinion of management, reflect all known adjustments (which consist primarily of normal, recurring accruals, estimates and assumptions) necessary to state fairly the financial position, results of operations, and cash flows for the periods presented. The Consolidated Condensed Balance Sheet as of December 31, 2022, presented herein, has been derived from our audited balance sheet included in our Annual Report on Form 10-K ( 2022 Annual Report ) for the year ended December 31, 2022, but does not include all disclosures required by accounting principles generally accepted in the United States (GAAP). We consistently applied the accounting policies described in the 2022 Annual Report in preparing these unaudited financial statements. These financial statements should be read in conjunction with the financial statements and notes thereto included in our 2022 Annual Report. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, revenue recognition, unrecognized tax benefits, deferred tax valuation allowances, projected benefit obligations for postretirement plans, accounting for business combinations, goodwill and other intangible asset impairment testing, environmental liabilities and assets, allowance for credit losses and inventory valuation. Actual results could differ from these estimates. ITT’s quarterly financial periods end on the Saturday that is closest to the last day of the calendar quarter, except for the last quarterly period of the fiscal year, which ends on December 31 st . ITT’s third quarter for 2023 and 2022 ended on September 30, 2023 and October 1, 2022, respectively. Certain prior year amounts have been reclassified to conform to the current year presentation. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Recent Accounting Pronouncements [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS The Company considers the applicability and impact of all accounting standard updates (ASUs). ASUs not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on our consolidated condensed financial statements. In October 2021, the FASB issued ASU 2021-08 , Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquiror on the acquisition date in accordance with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers ( ASC 606 ) , as if it had originated the contracts. Under the previous guidance, such assets and liabilities were recognized by the acquiror at fair value as of the acquisition date. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022. Early adoption is permitted. We have adopted and applied this guidance in connection with the Habonim and Micro-Mode acquisitions. The adoption of this guidance did not have a significant impact on our operating results, financial position, or cash flows. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company’s segments are reported on the same basis used by our Chief Executive Officer, who is also our chief operating decision maker, for evaluating performance and for allocating resources. Our three reportable segments are referred to as Motion Technologies, Industrial Process, and Connect & Control Technologies. Motion Technologies manufactures brake components and specialized sealing solutions, shock absorbers and damping technologies primarily for the global automotive, truck and trailer, public bus and rail transportation markets. Industrial Process manufactures engineered fluid process equipment serving a diversified mix of customers in global industries such as chemical, energy, mining, and other industrial process markets and is a provider of plant optimization and efficiency solutions and aftermarket services and parts. Connect & Control Technologies manufactures harsh-environment connector solutions, critical energy absorption, flow control components, and composite materials for the aerospace and defense, general industrial, medical, and energy markets. Assets of our reportable segments exclude general corporate assets, which principally consist of cash, investments, deferred taxes, and certain property, plant and equipment. These assets are included within Corporate and Other, which is described further below. Corporate and Other consists of corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs, as well as charges related to certain matters, including environmental liabilities, that are managed at a corporate level and are not included in segment results when evaluating performance or allocating resources. In addition, Corporate and Other includes research and development-related expenses associated with a subsidiary that does not constitute a reportable segment. The following table presents our revenue, operating income, and operating margin for each segment. Revenue Operating Income Operating Margin For the Three Months Ended September 30, October 1, September 30, October 1, September 30, October 1, Motion Technologies $ 359.5 $ 342.2 $ 59.4 $ 54.0 16.5 % 15.8 % Industrial Process 279.8 248.5 64.7 48.1 23.1 % 19.4 % Connect & Control Technologies 184.0 163.2 33.2 30.3 18.0 % 18.6 % Eliminations (1.2) (0.3) — — — — Total segment results 822.1 753.6 157.3 132.4 19.1 % 17.6 % Corporate and Other — — (14.2) (10.4) — — Total $ 822.1 $ 753.6 $ 143.1 $ 122.0 17.4 % 16.2 % Revenue Operating Income Operating Margin For the Nine Months Ended September 30, October 1, September 30, October 1, September 30, October 1, Motion Technologies $ 1,093.1 $ 1,043.6 $ 170.5 $ 160.7 15.6 % 15.4 % Industrial Process 839.9 690.3 186.4 107.6 22.2 % 15.6 % Connect & Control Technologies 523.8 481.0 91.0 84.2 17.4 % 17.5 % Eliminations (2.9) (1.8) — — — — Total segment results 2,453.9 2,213.1 447.9 352.5 18.3 % 15.9 % Corporate and Other — — (38.5) (35.4) — — Total $ 2,453.9 $ 2,213.1 $ 409.4 $ 317.1 16.7 % 14.3 % The following table presents our total assets, capital expenditures, and depreciation & amortization expense for each segment. As of and for the Nine Months Ended Total Assets Capital Depreciation & September 30, December 31, September 30, October 1, September 30, October 1, Motion Technologies $ 1,309.0 $ 1,311.9 $ 44.9 $ 52.6 $ 49.3 $ 45.5 Industrial Process 1,269.9 1,218.6 10.6 7.4 16.7 19.0 Connect & Control Technologies 858.5 751.6 11.7 9.4 14.9 14.3 Corporate and Other 364.9 498.2 1.3 4.3 1.9 2.7 Total $ 3,802.3 $ 3,780.3 $ 68.5 $ 73.7 $ 82.8 $ 81.5 |
REVENUE REVENUE
REVENUE REVENUE | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Footnote | REVENUE The following tables present our revenue disaggregated by end market. For the Three Months Ended September 30, 2023 Motion Technologies Industrial Process Connect & Control Technologies Eliminations Total Auto and rail $ 351.5 $ — $ — $ — $ 351.5 Chemical and industrial pumps — 219.7 — (0.1) 219.6 Aerospace and defense 2.0 — 99.2 — 101.2 General industrial 6.0 — 71.2 (1.1) 76.1 Energy — 60.1 13.6 — 73.7 Total $ 359.5 $ 279.8 $ 184.0 $ (1.2) $ 822.1 For the Nine Months Ended September 30, 2023 Auto and rail $ 1,067.5 $ — $ — $ — $ 1,067.5 Chemical and industrial pumps — 664.2 — (0.1) 664.1 Aerospace and defense 5.9 — 280.2 — 286.1 General industrial 19.7 — 205.9 (2.8) 222.8 Energy — 175.7 37.7 — 213.4 Total $ 1,093.1 $ 839.9 $ 523.8 $ (2.9) $ 2,453.9 For the Three Months Ended October 1, 2022 Auto and rail $ 333.1 $ — $ — $ — $ 333.1 Chemical and industrial pumps — 187.9 — — 187.9 General industrial 7.2 — 71.4 (0.3) 78.3 Aerospace and defense 1.9 — 80.5 — 82.4 Energy — 60.6 11.3 — 71.9 Total $ 342.2 $ 248.5 $ 163.2 $ (0.3) $ 753.6 For the Nine Months Ended October 1, 2022 Auto and rail $ 1,013.8 $ — $ — $ — $ 1,013.8 Chemical and industrial pumps — 551.7 — — 551.7 General industrial 23.9 — 215.6 (1.8) 237.7 Aerospace and defense 5.9 — 233.7 — 239.6 Energy — 138.6 31.7 — 170.3 Total $ 1,043.6 $ 690.3 $ 481.0 $ (1.8) $ 2,213.1 Contract Assets and Liabilities Contract assets consist of unbilled amounts where revenue recognized exceeds customer billings, net of allowances for credit losses. Contract assets are included in other current assets and other non-current assets in our Consolidated Condensed Balance Sheets. Contract liabilities consist of advance customer payments and billings in excess of revenue recognized. Contract liabilities are included in accrued liabilities and other non-current liabilities in our Consolidated Condensed Balance Sheets. The following table represents our net contract assets and liabilities. As of the Period Ended September 30, December 31, Current contract assets, net $ 24.8 $ 26.3 Non-current contract assets, net 1.6 1.2 Current contract liabilities (80.9) (70.2) Non-current contract liabilities (4.4) (4.4) Net contract liabilities $ (58.9) $ (47.1) During the three and nine months ended September 30, 2023, we recognized revenue of $8.2 and $48.3, related to contract liabilities as of December 31, 2022. The aggregate amount of the transaction price allocated to unsatisfied or partially satisfied performance obligations as of September 30, 2023 was $1,206.6. Of this amount, we expect to recognize approximately $500 to $520 of revenue during the remainder of 2023. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table summarizes our income tax expense and effective tax rate. Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Income tax expense $ 29.9 $ 16.4 $ 80.6 $ 59.9 Effective tax rate 21.1 % 13.7 % 20.0 % 19.0 % The effective tax rate (ETR) for the three months ended September 30, 2023 was higher than the prior year as ITT recognized benefits of $1.7 from a valuation allowance reversal on deferred tax assets in Italy in the prior year. For the nine months ended September 30, 2023, the ETR was relatively consistent with that of the prior year, and included benefits of $16.5 from valuation allowance reversals on deferred tax assets in Germany and $4.7 from filing an amended 2017 consolidated federal tax return. These benefits were partially offset by an expense of $14.3 relating to an Italian tax audit settlement covering tax years 2016-2022. The Company operates in various tax jurisdictions and is subject to examination by tax authorities in these jurisdictions. The Company is currently under examination in several jurisdictions including China, Czechia, Germany, India, Italy, and the U.S. The estimated tax liability calculation for unrecognized tax benefits considers uncertainties in the application of complex tax laws and regulations in various tax jurisdictions. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the unrecognized tax benefit. Over the next 12 months, the net amount of the tax liability for unrecognized tax benefits in foreign and domestic jurisdictions could decrease by approximately $0.7 due to changes in audit status, expiration of statutes of limitations and other events. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE DATA The following table provides a reconciliation of the data used in the calculation of basic and diluted earnings per share from continuing operations attributable to ITT. Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Basic weighted average common shares outstanding 82.1 82.7 82.4 83.6 Add: Dilutive impact of outstanding equity awards 0.4 0.3 0.3 0.3 Diluted weighted average common shares outstanding 82.5 83.0 82.7 83.9 Anti-dilutive shares (a) — — 0.1 — (a) Anti-dilutive shares related to equity stock unit awards excluded from the computation of diluted earnings per share. |
RECEIVABLES, NET
RECEIVABLES, NET | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
RECEIVABLES, NET | RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES The following table summarizes our receivables and associated allowance for credit losses. As of the Period Ended September 30, December 31, Trade accounts receivable $ 655.6 $ 614.0 Notes receivable 19.1 8.2 Other 13.6 18.3 Receivables, gross 688.3 640.5 Less: Allowance for credit losses - receivables (14.3) (11.7) Receivables, net $ 674.0 $ 628.8 The following table displays our allowance for credit losses for receivables and for contract assets, which are recorded within Receivables, net and Other current or non-current assets, respectively, within our Consolidated Condensed Balance Sheets. As of the Period Ended September 30, December 31, Allowance for credit losses - receivables $ 14.3 $ 11.7 Allowance for credit losses - contract assets — 0.5 Total allowance for credit losses $ 14.3 $ 12.2 The following table displays a rollforward of our total allowance for credit losses. September 30, October 1, Total allowance for credit losses - January 1 $ 12.2 $ 12.5 Charges to income (a) 3.4 2.5 Write-offs (1.2) (1.1) Foreign currency and other (0.1) (0.5) Total allowance for credit losses - ending balance $ 14.3 $ 13.4 (a) We recognized bad debt expense of $1.2 relating to impacts stemming from the Russia-Ukraine war during each of the nine months ended September 30, 2023 and October 1, 2022. See Note 1, Description of Business and Basis of Presentation , for further information. |
INVENTORIES, NET
INVENTORIES, NET | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES The following table summarizes our inventories. As of the Period Ended September 30, December 31, Raw materials $ 379.8 $ 342.7 Work in process 113.0 104.6 Finished goods 81.5 86.6 Inventories (a) $ 574.3 $ 533.9 (a) We recorded inventory write-downs of $1.6 and $5.6 related to inventories held by entities impacted by the Russia-Ukraine war during the nine months ended September 30, 2023 and October 1, 2022, respectively. See Note 1, Description of Business and Basis of Presentation , for further information. Government Assistance (ASU 2021-10) Since the start of the COVID-19 pandemic, energy prices have been increasing around the world, particularly in Europe. These increases have prompted governments to put in place measures to shield businesses and consumers from the direct impact of rising prices. These measures include granting subsidies to help offset the high energy prices. ASU 2021-10 requires entities to provide information about the nature of transactions, related policies and effect of government grants on an entity’s financial statements. In particular, in Italy, to qualify for an energy subsidy a company must apply for and receive a certificate attesting that the company is an "energy and gas consuming company" (high energy consumption connected to the production cycle). The amount of subsidies granted is calculated based on a percentage of actual consumption, ranging from 20% to 45%. One of our Italian subsidiaries within our MT segment obtained this certificate and was granted energy subsidies from the Italian government beginning in April 2022. This program concluded in the second quarter of 2023. Accordingly, no energy subsidies were granted for the three months ended September 30, 2023. For the nine months ended September 30, 2023, we recognized a benefit of $6.3 related to energy subsidies, which we recorded within Costs of revenue in our Consolidated Condensed Statements of Operations. Energy subsidies for the three and nine months ended October 1, 2022 were not material. There was no other material government assistance received by the Company or any of our subsidiaries during the periods. |
OTHER CURRENT AND NON-CURRENT_2
OTHER CURRENT AND NON-CURRENT ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT AND NON-CURRENT ASSETS | OTHER CURRENT AND NON-CURRENT ASSETS The following table summarizes our other current and non-current assets. As of the Period Ended September 30, December 31, Advance payments and other prepaid expenses $ 44.6 $ 45.0 Current contract assets, net 24.8 26.3 Prepaid income taxes 13.3 25.1 Other 19.7 16.5 Other current assets $ 102.4 $ 112.9 Other employee benefit-related assets $ 125.3 $ 119.8 Operating lease right-of-use assets (a) 83.4 73.8 Deferred income taxes (b) 71.9 54.7 Equity-method and other investments 45.7 42.9 Capitalized software costs 9.1 12.4 Environmental-related assets 7.0 9.6 Other 31.1 25.9 Other non-current assets $ 373.5 $ 339.1 (a) The increase in the operating lease right-of-use asset balance from December 31, 2022 to September 30, 2023 is primarily driven by the renewal of an operating facility lease in Irvine, California and by the current period acquisition of Micro-Mode. (b) The increase in deferred income taxes from December 31, 2022 to September 30, 2023 is primarily due to benefits of $16.5 from valuation allowance reversals on deferred tax assets in Germany. |
PLANT, PROPERTY AND EQUIPMENT,
PLANT, PROPERTY AND EQUIPMENT, NET | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PLANT, PROPERTY AND EQUIPMENT, NET | PLANT, PROPERTY AND EQUIPMENT, NET The following table summarizes our property, plant, and equipment, net of accumulated depreciation. Useful life September 30, December 31, Machinery and equipment 2 - 10 $ 1,267.4 $ 1,208.3 Buildings and improvements 5 - 40 286.8 277.6 Furniture, fixtures and office equipment 3 - 7 81.0 80.5 Construction work in progress 62.0 86.9 Land and improvements 28.5 29.3 Other 2.9 3.3 Plant, property and equipment, gross 1,728.6 1,685.9 Less: Accumulated depreciation (1,205.4) (1,159.1) Plant, property and equipment, net $ 523.2 $ 526.8 The following table summarizes our depreciation expense. Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Depreciation expense $ 21.8 $ 19.4 $ 62.9 $ 61.4 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill The following table provides a rollforward of the carrying amount of goodwill by segment. Motion Industrial Connect & Control Total Goodwill - December 31, 2022 $ 287.7 $ 398.7 $ 278.4 $ 964.8 Acquired — — 45.7 45.7 Allocated to divestiture of business (a) — — (2.4) (2.4) Foreign exchange translation (0.4) (6.2) (0.4) (7.0) Goodwill - September 30, 2023 $ 287.3 $ 392.5 $ 321.3 $ 1,001.1 (a) During the second quarter of 2023, we completed the sale of a product line within our CCT segment to a third party for $10.5. The Company determined that the product line met the definition of a business per ASC 805, Business Combinations . As a result of the transaction, we recognized a gain on sale of $7.2, which is included in the General and administrative expenses line on our Consolidated Statements of Operations for the nine months ended September 30, 2023. Goodwill of $2.4 was allocated to the divestiture. Other Intangible Assets, Net The following table summarizes our other intangible assets, net of accumulated amortization. September 30, 2023 December 31, 2022 Gross Accumulated Amortization Net Intangibles Gross Accumulated Amortization Net Intangibles Customer relationships $ 207.7 $ (138.0) $ 69.7 $ 191.5 $ (127.1) $ 64.4 Proprietary technology 60.8 (31.1) 29.7 59.2 (30.8) 28.4 Patents and other 22.1 (17.2) 4.9 17.6 (16.6) 1.0 Finite-lived intangible total 290.6 (186.3) 104.3 268.3 (174.5) 93.8 Indefinite-lived intangibles 18.7 — 18.7 19.0 — 19.0 Other intangible assets $ 309.3 $ (186.3) $ 123.0 $ 287.3 $ (174.5) $ 112.8 The following table summarizes our amortization expense related to finite-lived intangible assets. Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Amortization expense $ 5.6 $ 5.3 $ 15.4 $ 15.3 The preliminary fair values of intangible assets acquired in connection with the purchase of Micro-Mode total $28.7 and consist of the following: Useful life Fair value Customer relationships 20 $ 18.5 Developed technology 20 5.5 Trade name 20 2.3 Backlog <2 1.9 Other 10 0.5 Total intangible assets acquired $ 28.7 Refer to Note 18, Acquisitions and Investments , for further information. |
ACCRUED AND OTHER CURRENT LIABI
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES | ACCRUED AND OTHER CURRENT AND NON-CURRENT LIABILITIES The following table summarizes our accrued liabilities and other non-current liabilities. As of the Period Ended September 30, December 31, Compensation and other employee-related benefits $ 157.7 $ 134.4 Contract liabilities and other customer-related liabilities 116.4 92.2 Accrued income taxes and other tax-related liabilities 37.7 27.1 Operating lease liabilities 18.1 19.0 Accrued warranty costs 13.8 14.3 Environmental liabilities and other legal matters 6.6 5.7 Accrued restructuring costs 2.7 3.9 Other 37.5 36.8 Accrued and other current liabilities $ 390.5 $ 333.4 Operating lease liabilities (a) $ 69.6 $ 58.9 Environmental liabilities 51.0 53.1 Deferred income taxes and other tax-related liabilities 28.6 31.1 Compensation and other employee-related benefits 27.0 25.0 Non-current maturities of long-term debt 6.5 7.7 Other 24.4 24.4 Other non-current liabilities $ 207.1 $ 200.2 (a) The increase in the non-current operating lease liabilities balance from December 31, 2022 to September 30, 2023 is primarily driven by the renewal of an operating facility lease in Irvine, California, and by the current period acquisition of Micro-Mode. |
DEBT Debt (Notes)
DEBT Debt (Notes) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt [Text Block] | DEBT The following table summarizes our outstanding debt obligations. As of the Period Ended September 30, December 31, Commercial paper $ 242.7 $ 448.3 Current maturities of long-term debt and finance leases 2.2 2.2 Other short-term notes payable 0.5 0.5 Commercial paper and current maturities of long-term debt 245.4 451.0 Non-current maturities of long-term debt (a) 6.5 7.7 Total debt and finance leases $ 251.9 $ 458.7 (a) Our long-term debt is primarily related to outstanding Italian government loans. Commercial Paper The following table presents our outstanding commercial paper borrowings and associated weighted average interest rates as of September 30, 2023 and December 31, 2022. As of the Period Ended September 30, December 31, Commercial Paper Outstanding - U.S. Program $ 5.0 $ 299.2 Commercial Paper Outstanding - Euro Program 237.7 149.1 Total Commercial Paper Outstanding $ 242.7 $ 448.3 Weighted Average Interest Rate - U.S. Program 5.53 % 4.92 % Weighted Average Interest Rate - Euro Program 4.25 % 2.31 % Outstanding commercial paper for both periods had maturity terms less than three months from the date of issuance. Short-term Loans On August 5, 2021, we entered into a revolving credit facility agreement with a syndicate of third party lenders including Bank of America, N.A., as administrative agent (the 2021 Revolving Credit Agreement). Upon its effectiveness, this agreement replaced our existing $500 revolving credit facility due November 2022. The 2021 Revolving Credit Agreement matures in August 2026 and provides for an aggregate principal amount of up to $700. The 2021 Revolving Credit Agreement provides for a potential increase of commitments of up to $350 for a possible maximum of $1,050 in aggregate commitments at the request of the Company and with the consent of the institutions providing such increase of commitments. On May 10, 2023, we entered into the First Amendment (the Amendment) to the Company’s 2021 Revolving Credit Agreement. In connection with the phase out of LIBOR as a reference interest rate, the Amendment replaced LIBOR as a benchmark for United States Dollar revolving borrowings with the term secured overnight financing rate (Term SOFR), and replaced LIBOR as a benchmark for Euro swing line borrowings with the euro overnight short-term rate (ESTR). The Amendment did not have a significant impact on the Company’s consolidated financial statements. Since the Amendment, the interest rate per annum on the 2021 Revolving Credit Agreement is based on the term SOFR of the currency we borrow in, plus a margin of 1.1%. As of September 30, 2023 and December 31, 2022, we had no outstanding borrowings under the 2021 Revolving Credit Agreement. There is a 0.15% fee per annum applicable to the commitments under the 2021 Revolving Credit Agreement. The margin and fees are subject to adjustment should the Company’s credit ratings change. The 2021 Revolving Credit Agreement contains customary affirmative and negative covenants that, among other things, will limit or restrict our ability to: incur additional debt or issue guarantees; create certain liens; merge or consolidate with another person; sell, transfer, lease or otherwise dispose of assets; liquidate or dissolve; and enter into restrictive covenants. Additionally, the 2021 Revolving Credit Agreement requires us not to permit the ratio of consolidated total indebtedness to consolidated earnings before interest, taxes, depreciation, amortization, and other special, extraordinary, unusual, or non-recurring items (adjusted consolidated EBITDA) (leverage ratio) to exceed 3.50 to 1.00, with a qualified acquisition step up immediately following such qualified acquisition of 4.00 to 1.00 for four quarters, 3.75 to 1.00 for two quarters thereafter, and returning to 3.50 to 1.00 thereafter. |
LONG-TERM INCENTIVE EMPLOYEE _2
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION | LONG-TERM INCENTIVE EMPLOYEE COMPENSATION Our long-term incentive plan (LTIP) costs are primarily recorded within general and administrative expenses in our Consolidated Condensed Statements of Operations. The following table summarizes our LTIP costs. Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Equity-based awards $ 5.0 $ 4.8 $ 15.1 $ 13.6 Liability-based awards 0.4 0.2 1.2 0.8 Total share-based compensation expense $ 5.4 $ 5.0 $ 16.3 $ 14.4 As of September 30, 2023, there was $30.7 of total unrecognized compensation cost related to non-vested equity awards. This cost is expected to be recognized ratably over a weighted-average period of 1.9 years. Additionally, unrecognized compensation cost related to liability-based awards was $2.5, which is expected to be recognized ratably over a weighted-average period of 2.0 years. Year-to-Date 2023 LTIP Activity The majority of our LTIP awards are granted during the first quarter of each year and have three-year service periods. These awards either vest equally each year or at the completion of the three-year service period. During the nine months ended September 30, 2023, we granted the following LTIP awards as provided in the table below: # of Awards Granted Weighted Average Grant Date Fair Value Per Share Restricted stock units (RSUs) 0.2 $ 92.47 Performance stock units (PSUs) 0.1 $ 112.59 During the nine months ended September 30, 2023 and October 1, 2022, a nominal amount of non-qualified stock options were exercised resulting in proceeds of $0.6 and $1.8, respectively. During the nine months ended September 30, 2023 and October 1, 2022, RSUs of 0.1 and 0.1, respectively, vested and were issued. During the nine months ended September 30, 2023 and October 1, 2022, PSUs of 0.1 and 0.1 that vested on December 31, 2022 and 2021, respectively, were issued. |
CAPITAL STOCK
CAPITAL STOCK | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK On October 30, 2019, the Board of Directors approved an indefinite term $500 open-market share repurchase program (the 2019 Plan). There were no open-market share repurchases during the three months ended September 30, 2023. During the nine months ended September 30, 2023, the Company repurchased and retired 0.7 shares of common stock for $60.5. During the three and nine months ended October 1, 2022, the Company repurchased and retired 0.1 and 3.0 shares of common stock for $4.4 and $245.3, respectively. On October 4, 2023, the Board of Directors approved an indefinite term $1,000 open-market share repurchase program (the 2023 Plan). Repurchases under this authorization will begin upon the completion of the 2019 Plan. As of September 30, 2023, there was $78.8 of remaining authorization left under the 2019 Plan. Separate from the open-market share repurchase program, the Company withholds shares of common stock in settlement of employee tax withholding obligations due upon the vesting of equity-based compensation awards. During the three and nine months ended September 30, 2023, the Company withheld a nominal amount and 0.1 shares of common stock for $0.3 and $6.7, respectively. During the three and nine months ended October 1, 2022, the Company withheld a nominal amount and 0.1 shares of common stock for $0.2 and $8.7, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES From time to time, we are involved in litigation, claims, government inquiries, investigations and proceedings, including but not limited to those relating to environmental exposures, intellectual property matters, personal injury claims, product liabilities, regulatory matters, commercial and government contract issues, employment and employee benefit matters, commercial or contractual disputes, and securities matters. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information, including our assessment of the merits of the particular claim, as well as our current reserves and insurance coverage, we do not expect that such legal proceedings will have any material adverse impact on our financial statements, unless otherwise noted below. However, there can be no assurance that an adverse outcome in any of the proceedings described below will not result in material fines, penalties or damages, changes to the Company's business practices, loss of (or litigation with) customers or a material adverse effect on our financial statements. Environmental Matters In the ordinary course of business, we are subject to federal, state, local, and foreign environmental laws and regulations. We are responsible, or are alleged to be responsible, for ongoing environmental investigation and site remediation. These sites are in various stages of investigation or remediation and in many of these proceedings our liability is considered de minimis. We have received notification from the U.S. Environmental Protection Agency, and from similar state and foreign environmental agencies, that a number of sites formerly or currently owned or operated by ITT, and other properties or water supplies that may be or have been impacted from those operations, contain disposed or recycled materials or wastes and require environmental investigation or remediation. These sites include instances where we have been identified as a potentially responsible party under federal and state environmental laws and regulations. The following table provides a rollforward of our estimated environmental liability. For the Nine Months Ended September 30, October 1, Environmental liability - beginning balance $ 57.1 $ 54.1 Change in estimates for pre-existing accruals: Continuing operations 0.8 — Discontinued operations (a) — 5.4 Accruals added during the period for new matters — 0.2 Payments (2.9) (3.4) Foreign currency (0.1) (0.5) Environmental liability - ending balance $ 54.9 $ 55.8 (a) During the nine months ended October 1, 2022, we increased the estimated environmental liability for a former site of ITT by $5.4 and recognized an insurance-related asset of $4.3. The resulting net pre-tax expense of $1.1 has been presented as a loss from discontinued operations within the Consolidated Condensed Statements of Operations. Environmental-related assets, including a Qualified Settlement Fund and estimated recoveries from insurance providers and other third parties, were $11.0 and $14.6 as of September 30, 2023 and October 1, 2022, respectively. The following table illustrates the reasonably possible high range of estimated liability and number of active sites. As of the Period Ended September 30, October 1, High-end estimate of environmental liability $ 89 $ 98 Number of open environmental sites 26 28 As actual costs incurred at identified sites in future periods may vary from our current estimates given the inherent uncertainties in evaluating environmental exposures, management believes it is possible that the outcome of these uncertainties may have a material adverse effect on our financial statements. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Fair Value | DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to various market risks relating to its ongoing business operations. From time to time, we use derivative financial instruments to mitigate our exposure to certain of these risks, including foreign exchange rate and commodity price fluctuations. By using derivatives, the Company is further exposed to credit risk. Our exposure to credit risk includes the counterparty’s failure to fulfill its financial obligations under the terms of the derivative contract. The Company attempts to minimize its exposure by avoiding concentration risk among its counterparties and by entering into transactions with creditworthy counterparties. Foreign Currency Derivative Contracts The Company enters into foreign currency forward or option contracts to mitigate foreign currency risk associated with transacting with international customers, suppliers, and subsidiaries. The notional amounts and fair values of our outstanding foreign currency derivative contracts, which are recorded within Other current assets in our Consolidated Condensed Balance Sheets, were as follows: As of the Period Ended September 30, December 31, Notional amount (U.S. dollar equivalent) $ 43.6 $ 136.5 Fair value of foreign currency derivative contracts (a) $ 1.2 $ 1.7 (a) Our foreign currency derivative contracts are classified within Level 2 of the fair value hierarchy because these contracts are not actively traded and the valuation inputs are based on market observable data of similar instruments. Gains or losses arising from changes in fair value of our foreign currency derivative contracts are recorded within General and administrative expenses in our Consolidated Condensed Statements of Operations, and were as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (Loss) gain on foreign currency derivative contracts (b) $ (1.4) $ 1.8 $ (4.6) $ 7.3 (b) None of our derivative contracts were designated as hedging instruments under ASC 815 - Derivatives & Hedging . The cash flow impact upon settlement of our foreign currency derivative contracts is included in operating activities in our Consolidated Condensed Statements of Cash Flows. During the nine months ended September 30, 2023 and October 1, 2022, net cash inflows from foreign currency derivative contracts were $2.4 and $2.1 , respectively. |
ACQUISITIONS Acquisitions (Note
ACQUISITIONS Acquisitions (Notes) | 9 Months Ended |
Sep. 30, 2023 | |
Acquisitions [Abstract] | |
Business Combination Disclosure [Text Block] | ACQUISITIONS AND INVESTMENTS Acquisition of Micro-Mode Products, Inc. (Micro-Mode) On May 2, 2023, we completed the acquisition of Micro-Mode for a purchase price of $79.3, net of cash acquired. Micro-Mode is a specialty designer and manufacturer of high-bandwidth radio frequency (RF) connectors for harsh environment defense and space applications. Micro-Mode has a single manufacturing site near San Diego, California and generated approximately $26 in sales in 2022. Subsequent to the acquisition, Micro-Mode’s results have been reported within our CCT segment. The primary areas of the purchase price allocations that are not yet finalized relate to the valuation of certain tangible and intangible assets, liabilities, income tax, and residual goodwill, which represents the excess of the purchase price over the fair value of the net tangible and other intangible assets acquired. We expect to obtain the information necessary to finalize the fair value of the net assets and liabilities during the measurement period, not to exceed one year from the acquisition date. Changes to the preliminary estimates of the fair value during the measurement period will be recorded as adjustments to those assets and liabilities with a corresponding adjustment to goodwill in the period they occur. The goodwill arising from this acquisition is not expected to be deductible for income tax purposes. Preliminary Allocation of Purchase Price Receivables $ 2.7 Inventory 5.6 Plant, property and equipment 6.0 Goodwill 45.7 Other intangible assets 28.7 Other assets 0.3 Accounts payable and accrued liabilities (2.3) Other liabilities (7.4) Net assets acquired $ 79.3 Pro forma results of operations have not been presented because the acquisition was not deemed significant as of the acquisition date. Acquisition of Habonim Industrial Valves and Actuators Ltd (Habonim) On April 4, 2022, we completed the acquisition of 100% of the privately held stock of Habonim for a purchase price of $139.9. Habonim is a designer and manufacturer of valves, valve automation and actuation for gas distribution (including liquified natural gas), biotech and harsh application service sectors. Habonim sells directly to original equipment manufacturers and integrators for customized solutions. Habonim has operations in Israel, the U.S., and the Netherlands, and has a workforce of approximately 200 employees. Subsequent to the acquisition, Habonim’s results have been reported within our IP segment. The allocation of the purchase price to the assets acquired and liabilities assumed was completed as of April 1, 2023. Investments in CRP Technology and CRP USA (CRP) During the second quarter of 2022, we purchased a minority investment of 46% in CRP Technology Srl and 33% in CRP USA LLC (collectively "CRP") for $23.0. CRP is a manufacturer of reinforced composite materials for 3D printing for the aerospace, defense, premium automotive, and motorsports industries. CRP's Windform ® high-performance materials enable engineers to develop complex, customized designs while providing lightweight and exceptionally durable products. In May 2023, ITT purchased an additional 9% share of CRP USA LLC for $1.4. This additional investment brings ITT’s direct share ownership in CRP USA LLC to 42% as of July 1, 2023. The CRP investments are accounted for as equity method investments. Other During the second quarter of 2022, we purchased all production assets and proprietary technology related to an energy absorption product line for high-cycle applications in industrial automation. The product line was acquired for $7.0 from Clippard Instrument Laboratory, Inc., which is a U.S. manufacturer of electronic and pneumatic components. These assets are included within the CCT segment. Subsequent Event On November 1, 2023, we signed an agreement to acquire 100% of the outstanding shares of privately held Svanehøj Group A/S (Svanehøj), a Denmark-based supplier of pumps and related aftermarket services with leading positions in cryogenic applications for the marine sector, for approximately $395, based on current DKK to USD exchange rate and subject to customary closing adjustments. The transaction is expected to close in the first quarter of 2024, subject to the receipt of customary regulatory approvals. Svanehøj will become part of our IP segment. Svanehøj employs approximately 400 employees and has operations in Denmark, Singapore and France. The company generated approximately $140 in sales in 2022. |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business ITT Inc. is a diversified manufacturer of highly engineered critical components and customized technology solutions for the transportation, industrial, and energy markets. Unless the context otherwise indicates, references herein to “ITT,” “the Company,” and such words as “we,” “us,” and “our” include ITT Inc. and its subsidiaries. ITT operates through three reportable segments: Motion Technologies (MT), consisting of friction and shock and vibration equipment; Industrial Process (IP), consisting of industrial flow equipment and services; and Connect & Control Technologies (CCT), consisting of electronic connectors, fluid handling, motion control, composite materials and noise and energy absorption products. Financial information for our segments is presented in Note 3, Segment Information . Business Combination On May 2, 2023, we completed the acquisition of Micro-Mode Products, Inc. (Micro-Mode) for a purchase price of $79.3, net of cash acquired. Subsequent to the acquisition, Micro-Mode’s results are reported within our CCT segment. Refer to Note 18, Acquisitions and Investments , for more information. Russia-Ukraine War In February 2022, the United States and other leading nations announced targeted economic sanctions on Russia and certain Russian citizens in response to Russia’s war with Ukraine, which has increased regional instability and global economic and political uncertainty. During the three and nine months ended September 30, 2023, we recorded total pre-tax charges of $0.5 and $3.7, respectively, primarily related to accounts receivable and inventory write-downs due to the suspension of business in Russia. During the three and nine months ended October 1, 2022, we recorded total pre-tax charges of $0.3 and $8.2, respectively, related to impacts from the Russia-Ukraine war. For further discussion of risks stemming from the Russia-Ukraine war, see Part I, Item IA, “Risk Factors” in our 2022 Annual Report for the fiscal year ended December 31, 2022. |
Basis of Accounting | Basis of Presentation The unaudited consolidated condensed financial statements have been prepared pursuant to the rules and regulations of the SEC and, in the opinion of management, reflect all known adjustments (which consist primarily of normal, recurring accruals, estimates and assumptions) necessary to state fairly the financial position, results of operations, and cash flows for the periods presented. The Consolidated Condensed Balance Sheet as of December 31, 2022, presented herein, has been derived from our audited balance sheet included in our Annual Report on Form 10-K ( 2022 Annual Report ) for the year ended December 31, 2022, but does not include all disclosures required by accounting principles generally accepted in the United States (GAAP). We consistently applied the accounting policies described in the 2022 Annual Report in preparing these unaudited financial statements. These financial statements should be read in conjunction with the financial statements and notes thereto included in our 2022 Annual Report. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, revenue recognition, unrecognized tax benefits, deferred tax valuation allowances, projected benefit obligations for postretirement plans, accounting for business combinations, goodwill and other intangible asset impairment testing, environmental liabilities and assets, allowance for credit losses and inventory valuation. Actual results could differ from these estimates. ITT’s quarterly financial periods end on the Saturday that is closest to the last day of the calendar quarter, except for the last quarterly period of the fiscal year, which ends on December 31 st . ITT’s third quarter for 2023 and 2022 ended on September 30, 2023 and October 1, 2022, respectively. Certain prior year amounts have been reclassified to conform to the current year presentation. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Recent Acconting Pronouncements [Abstract] | |
Recently Adopted Accounting Pronouncements | In October 2021, the FASB issued ASU 2021-08 , Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquiror on the acquisition date in accordance with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers ( ASC 606 ) , as if it had originated the contracts. Under the previous guidance, such assets and liabilities were recognized by the acquiror at fair value as of the acquisition date. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022. Early adoption is permitted. We have adopted and applied this guidance in connection with the Habonim and Micro-Mode acquisitions. The adoption of this guidance did not have a significant impact on our operating results, financial position, or cash flows. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Segment Reporting [Abstract] | ||
Reconciliation of Segment to Consolidated Results Table | Revenue Operating Income Operating Margin For the Three Months Ended September 30, October 1, September 30, October 1, September 30, October 1, Motion Technologies $ 359.5 $ 342.2 $ 59.4 $ 54.0 16.5 % 15.8 % Industrial Process 279.8 248.5 64.7 48.1 23.1 % 19.4 % Connect & Control Technologies 184.0 163.2 33.2 30.3 18.0 % 18.6 % Eliminations (1.2) (0.3) — — — — Total segment results 822.1 753.6 157.3 132.4 19.1 % 17.6 % Corporate and Other — — (14.2) (10.4) — — Total $ 822.1 $ 753.6 $ 143.1 $ 122.0 17.4 % 16.2 % | Revenue Operating Income Operating Margin For the Nine Months Ended September 30, October 1, September 30, October 1, September 30, October 1, Motion Technologies $ 1,093.1 $ 1,043.6 $ 170.5 $ 160.7 15.6 % 15.4 % Industrial Process 839.9 690.3 186.4 107.6 22.2 % 15.6 % Connect & Control Technologies 523.8 481.0 91.0 84.2 17.4 % 17.5 % Eliminations (2.9) (1.8) — — — — Total segment results 2,453.9 2,213.1 447.9 352.5 18.3 % 15.9 % Corporate and Other — — (38.5) (35.4) — — Total $ 2,453.9 $ 2,213.1 $ 409.4 $ 317.1 16.7 % 14.3 % |
Schedule of Segment Reporting Information | The following table presents our total assets, capital expenditures, and depreciation & amortization expense for each segment. As of and for the Nine Months Ended Total Assets Capital Depreciation & September 30, December 31, September 30, October 1, September 30, October 1, Motion Technologies $ 1,309.0 $ 1,311.9 $ 44.9 $ 52.6 $ 49.3 $ 45.5 Industrial Process 1,269.9 1,218.6 10.6 7.4 16.7 19.0 Connect & Control Technologies 858.5 751.6 11.7 9.4 14.9 14.3 Corporate and Other 364.9 498.2 1.3 4.3 1.9 2.7 Total $ 3,802.3 $ 3,780.3 $ 68.5 $ 73.7 $ 82.8 $ 81.5 |
REVENUE Revenue (Tables)
REVENUE Revenue (Tables) | 9 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Disaggregation of Revenue by End Market Table | The following tables present our revenue disaggregated by end market. For the Three Months Ended September 30, 2023 Motion Technologies Industrial Process Connect & Control Technologies Eliminations Total Auto and rail $ 351.5 $ — $ — $ — $ 351.5 Chemical and industrial pumps — 219.7 — (0.1) 219.6 Aerospace and defense 2.0 — 99.2 — 101.2 General industrial 6.0 — 71.2 (1.1) 76.1 Energy — 60.1 13.6 — 73.7 Total $ 359.5 $ 279.8 $ 184.0 $ (1.2) $ 822.1 For the Nine Months Ended September 30, 2023 Auto and rail $ 1,067.5 $ — $ — $ — $ 1,067.5 Chemical and industrial pumps — 664.2 — (0.1) 664.1 Aerospace and defense 5.9 — 280.2 — 286.1 General industrial 19.7 — 205.9 (2.8) 222.8 Energy — 175.7 37.7 — 213.4 Total $ 1,093.1 $ 839.9 $ 523.8 $ (2.9) $ 2,453.9 | For the Three Months Ended October 1, 2022 Auto and rail $ 333.1 $ — $ — $ — $ 333.1 Chemical and industrial pumps — 187.9 — — 187.9 General industrial 7.2 — 71.4 (0.3) 78.3 Aerospace and defense 1.9 — 80.5 — 82.4 Energy — 60.6 11.3 — 71.9 Total $ 342.2 $ 248.5 $ 163.2 $ (0.3) $ 753.6 For the Nine Months Ended October 1, 2022 Auto and rail $ 1,013.8 $ — $ — $ — $ 1,013.8 Chemical and industrial pumps — 551.7 — — 551.7 General industrial 23.9 — 215.6 (1.8) 237.7 Aerospace and defense 5.9 — 233.7 — 239.6 Energy — 138.6 31.7 — 170.3 Total $ 1,043.6 $ 690.3 $ 481.0 $ (1.8) $ 2,213.1 |
Net Contract Assets and Liabilities Table | The following table represents our net contract assets and liabilities. As of the Period Ended September 30, December 31, Current contract assets, net $ 24.8 $ 26.3 Non-current contract assets, net 1.6 1.2 Current contract liabilities (80.9) (70.2) Non-current contract liabilities (4.4) (4.4) Net contract liabilities $ (58.9) $ (47.1) |
INCOME TAXES Income Tax Expense
INCOME TAXES Income Tax Expense (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Inome Tax Expense (Benefit) Table | The following table summarizes our income tax expense and effective tax rate. Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Income tax expense $ 29.9 $ 16.4 $ 80.6 $ 59.9 Effective tax rate 21.1 % 13.7 % 20.0 % 19.0 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share Table | The following table provides a reconciliation of the data used in the calculation of basic and diluted earnings per share from continuing operations attributable to ITT. Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Basic weighted average common shares outstanding 82.1 82.7 82.4 83.6 Add: Dilutive impact of outstanding equity awards 0.4 0.3 0.3 0.3 Diluted weighted average common shares outstanding 82.5 83.0 82.7 83.9 Anti-dilutive shares (a) — — 0.1 — (a) Anti-dilutive shares related to equity stock unit awards excluded from the computation of diluted earnings per share. |
RECEIVABLES, NET (Tables)
RECEIVABLES, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Receivables, Net by Type Table | The following table summarizes our receivables and associated allowance for credit losses. As of the Period Ended September 30, December 31, Trade accounts receivable $ 655.6 $ 614.0 Notes receivable 19.1 8.2 Other 13.6 18.3 Receivables, gross 688.3 640.5 Less: Allowance for credit losses - receivables (14.3) (11.7) Receivables, net $ 674.0 $ 628.8 |
Allowance for Credit Losses Table | The following table displays our allowance for credit losses for receivables and for contract assets, which are recorded within Receivables, net and Other current or non-current assets, respectively, within our Consolidated Condensed Balance Sheets. As of the Period Ended September 30, December 31, Allowance for credit losses - receivables $ 14.3 $ 11.7 Allowance for credit losses - contract assets — 0.5 Total allowance for credit losses $ 14.3 $ 12.2 |
Allowance for Credit Losses Rollforward Table | The following table displays a rollforward of our total allowance for credit losses. September 30, October 1, Total allowance for credit losses - January 1 $ 12.2 $ 12.5 Charges to income (a) 3.4 2.5 Write-offs (1.2) (1.1) Foreign currency and other (0.1) (0.5) Total allowance for credit losses - ending balance $ 14.3 $ 13.4 (a) We recognized bad debt expense of $1.2 relating to impacts stemming from the Russia-Ukraine war during each of the nine months ended September 30, 2023 and October 1, 2022. See Note 1, Description of Business and Basis of Presentation , for further information. |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, Net Table | The following table summarizes our inventories. As of the Period Ended September 30, December 31, Raw materials $ 379.8 $ 342.7 Work in process 113.0 104.6 Finished goods 81.5 86.6 Inventories (a) $ 574.3 $ 533.9 (a) We recorded inventory write-downs of $1.6 and $5.6 related to inventories held by entities impacted by the Russia-Ukraine war during the nine months ended September 30, 2023 and October 1, 2022, respectively. See Note 1, Description of Business and Basis of Presentation , for further information. |
OTHER CURRENT AND NON-CURRENT_3
OTHER CURRENT AND NON-CURRENT ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current and Non Current Assets Table | The following table summarizes our other current and non-current assets. As of the Period Ended September 30, December 31, Advance payments and other prepaid expenses $ 44.6 $ 45.0 Current contract assets, net 24.8 26.3 Prepaid income taxes 13.3 25.1 Other 19.7 16.5 Other current assets $ 102.4 $ 112.9 Other employee benefit-related assets $ 125.3 $ 119.8 Operating lease right-of-use assets (a) 83.4 73.8 Deferred income taxes (b) 71.9 54.7 Equity-method and other investments 45.7 42.9 Capitalized software costs 9.1 12.4 Environmental-related assets 7.0 9.6 Other 31.1 25.9 Other non-current assets $ 373.5 $ 339.1 (a) The increase in the operating lease right-of-use asset balance from December 31, 2022 to September 30, 2023 is primarily driven by the renewal of an operating facility lease in Irvine, California and by the current period acquisition of Micro-Mode. (b) The increase in deferred income taxes from December 31, 2022 to September 30, 2023 is primarily due to benefits of $16.5 from valuation allowance reversals on deferred tax assets in Germany. |
PLANT, PROPERTY AND EQUIPMENT_2
PLANT, PROPERTY AND EQUIPMENT, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Plant, Property and Equipment, Net Table | The following table summarizes our property, plant, and equipment, net of accumulated depreciation. Useful life September 30, December 31, Machinery and equipment 2 - 10 $ 1,267.4 $ 1,208.3 Buildings and improvements 5 - 40 286.8 277.6 Furniture, fixtures and office equipment 3 - 7 81.0 80.5 Construction work in progress 62.0 86.9 Land and improvements 28.5 29.3 Other 2.9 3.3 Plant, property and equipment, gross 1,728.6 1,685.9 Less: Accumulated depreciation (1,205.4) (1,159.1) Plant, property and equipment, net $ 523.2 $ 526.8 The following table summarizes our depreciation expense. Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Depreciation expense $ 21.8 $ 19.4 $ 62.9 $ 61.4 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill Table | The following table provides a rollforward of the carrying amount of goodwill by segment. Motion Industrial Connect & Control Total Goodwill - December 31, 2022 $ 287.7 $ 398.7 $ 278.4 $ 964.8 Acquired — — 45.7 45.7 Allocated to divestiture of business (a) — — (2.4) (2.4) Foreign exchange translation (0.4) (6.2) (0.4) (7.0) Goodwill - September 30, 2023 $ 287.3 $ 392.5 $ 321.3 $ 1,001.1 (a) During the second quarter of 2023, we completed the sale of a product line within our CCT segment to a third party for $10.5. The Company determined that the product line met the definition of a business per ASC 805, Business Combinations . As a result of the transaction, we recognized a gain on sale of $7.2, which is included in the General and administrative expenses line on our Consolidated Statements of Operations for the nine months ended September 30, 2023. Goodwill of $2.4 was allocated to the divestiture. |
Other Intangible Assets Table | Other Intangible Assets, Net The following table summarizes our other intangible assets, net of accumulated amortization. September 30, 2023 December 31, 2022 Gross Accumulated Amortization Net Intangibles Gross Accumulated Amortization Net Intangibles Customer relationships $ 207.7 $ (138.0) $ 69.7 $ 191.5 $ (127.1) $ 64.4 Proprietary technology 60.8 (31.1) 29.7 59.2 (30.8) 28.4 Patents and other 22.1 (17.2) 4.9 17.6 (16.6) 1.0 Finite-lived intangible total 290.6 (186.3) 104.3 268.3 (174.5) 93.8 Indefinite-lived intangibles 18.7 — 18.7 19.0 — 19.0 Other intangible assets $ 309.3 $ (186.3) $ 123.0 $ 287.3 $ (174.5) $ 112.8 |
Finite-Lived Intangible Assets Amortization Expense | The following table summarizes our amortization expense related to finite-lived intangible assets. Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Amortization expense $ 5.6 $ 5.3 $ 15.4 $ 15.3 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The preliminary fair values of intangible assets acquired in connection with the purchase of Micro-Mode total $28.7 and consist of the following: Useful life Fair value Customer relationships 20 $ 18.5 Developed technology 20 5.5 Trade name 20 2.3 Backlog <2 1.9 Other 10 0.5 Total intangible assets acquired $ 28.7 Refer to Note 18, Acquisitions and Investments , for further information. |
ACCRUED AND OTHER CURRENT LIA_2
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities and Other Non-Current Liabilities | The following table summarizes our accrued liabilities and other non-current liabilities. As of the Period Ended September 30, December 31, Compensation and other employee-related benefits $ 157.7 $ 134.4 Contract liabilities and other customer-related liabilities 116.4 92.2 Accrued income taxes and other tax-related liabilities 37.7 27.1 Operating lease liabilities 18.1 19.0 Accrued warranty costs 13.8 14.3 Environmental liabilities and other legal matters 6.6 5.7 Accrued restructuring costs 2.7 3.9 Other 37.5 36.8 Accrued and other current liabilities $ 390.5 $ 333.4 Operating lease liabilities (a) $ 69.6 $ 58.9 Environmental liabilities 51.0 53.1 Deferred income taxes and other tax-related liabilities 28.6 31.1 Compensation and other employee-related benefits 27.0 25.0 Non-current maturities of long-term debt 6.5 7.7 Other 24.4 24.4 Other non-current liabilities $ 207.1 $ 200.2 (a) The increase in the non-current operating lease liabilities balance from December 31, 2022 to September 30, 2023 is primarily driven by the renewal of an operating facility lease in Irvine, California, and by the current period acquisition of Micro-Mode. |
DEBT Debt (Tables)
DEBT Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Table | The following table summarizes our outstanding debt obligations. As of the Period Ended September 30, December 31, Commercial paper $ 242.7 $ 448.3 Current maturities of long-term debt and finance leases 2.2 2.2 Other short-term notes payable 0.5 0.5 Commercial paper and current maturities of long-term debt 245.4 451.0 Non-current maturities of long-term debt (a) 6.5 7.7 Total debt and finance leases $ 251.9 $ 458.7 (a) Our long-term debt is primarily related to outstanding Italian government loans. |
Schedule of Outstanding Commercial Paper | The following table presents our outstanding commercial paper borrowings and associated weighted average interest rates as of September 30, 2023 and December 31, 2022. As of the Period Ended September 30, December 31, Commercial Paper Outstanding - U.S. Program $ 5.0 $ 299.2 Commercial Paper Outstanding - Euro Program 237.7 149.1 Total Commercial Paper Outstanding $ 242.7 $ 448.3 Weighted Average Interest Rate - U.S. Program 5.53 % 4.92 % Weighted Average Interest Rate - Euro Program 4.25 % 2.31 % |
LONG-TERM INCENTIVE EMPLOYEE _3
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Long-Term Incentive Employee Compensation Costs Table | The following table summarizes our LTIP costs. Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Equity-based awards $ 5.0 $ 4.8 $ 15.1 $ 13.6 Liability-based awards 0.4 0.2 1.2 0.8 Total share-based compensation expense $ 5.4 $ 5.0 $ 16.3 $ 14.4 |
Summary of Long-Term Incentive Plan Award Grants Table | During the nine months ended September 30, 2023, we granted the following LTIP awards as provided in the table below: # of Awards Granted Weighted Average Grant Date Fair Value Per Share Restricted stock units (RSUs) 0.2 $ 92.47 Performance stock units (PSUs) 0.1 $ 112.59 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Rollforward of Environmental Liability and Related Assets Table | The following table provides a rollforward of our estimated environmental liability. For the Nine Months Ended September 30, October 1, Environmental liability - beginning balance $ 57.1 $ 54.1 Change in estimates for pre-existing accruals: Continuing operations 0.8 — Discontinued operations (a) — 5.4 Accruals added during the period for new matters — 0.2 Payments (2.9) (3.4) Foreign currency (0.1) (0.5) Environmental liability - ending balance $ 54.9 $ 55.8 |
Range of Environmental Liability and Number of Sites | The following table illustrates the reasonably possible high range of estimated liability and number of active sites. As of the Period Ended September 30, October 1, High-end estimate of environmental liability $ 89 $ 98 Number of open environmental sites 26 28 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Open Forward Foreign Currency Contract | The notional amounts and fair values of our outstanding foreign currency derivative contracts, which are recorded within Other current assets in our Consolidated Condensed Balance Sheets, were as follows: As of the Period Ended September 30, December 31, Notional amount (U.S. dollar equivalent) $ 43.6 $ 136.5 Fair value of foreign currency derivative contracts (a) $ 1.2 $ 1.7 (a) Our foreign currency derivative contracts are classified within Level 2 of the fair value hierarchy because these contracts are not actively traded and the valuation inputs are based on market observable data of similar instruments. Gains or losses arising from changes in fair value of our foreign currency derivative contracts are recorded within General and administrative expenses in our Consolidated Condensed Statements of Operations, and were as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, (Loss) gain on foreign currency derivative contracts (b) $ (1.4) $ 1.8 $ (4.6) $ 7.3 (b) None of our derivative contracts were designated as hedging instruments under ASC 815 - Derivatives & Hedging . |
ACQUISITIONS Acquisitions (Tabl
ACQUISITIONS Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Acquisitions [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Preliminary Allocation of Purchase Price Receivables $ 2.7 Inventory 5.6 Plant, property and equipment 6.0 Goodwill 45.7 Other intangible assets 28.7 Other assets 0.3 Accounts payable and accrued liabilities (2.3) Other liabilities (7.4) Net assets acquired $ 79.3 |
DESCRIPTION OF BUSINESS AND B_2
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
May 02, 2023 | Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Business Combination [Abstract] | |||||
Acquisitions, net of cash acquired | $ 79.3 | $ 146.9 | |||
Micro-Mode | |||||
Business Combination [Abstract] | |||||
Business Acquisition, Effective Date of Acquisition | May 02, 2023 | ||||
Business Acquisition, Description of Acquired Entity | completed the acquisition of Micro-Mode Products, Inc. (Micro-Mode) | ||||
Acquisitions, net of cash acquired | $ 79.3 | ||||
RUSSIAN FEDERATION | |||||
Russia-Ukraine Conflict [Abstract] | |||||
Asset impairment charges | $ 0.5 | $ 0.3 | $ 3.7 | $ 8.2 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Segment Reporting Information by Segment Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 822.1 | $ 753.6 | $ 2,453.9 | $ 2,213.1 |
Operating income | $ 143.1 | $ 122 | $ 409.4 | $ 317.1 |
Operating Margin | 17.40% | 16.20% | 16.70% | 14.30% |
Total segment results | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 822.1 | $ 753.6 | $ 2,453.9 | $ 2,213.1 |
Operating income | $ 157.3 | $ 132.4 | $ 447.9 | $ 352.5 |
Operating Margin | 19.10% | 17.60% | 18.30% | 15.90% |
Motion Technologies | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 359.5 | $ 342.2 | $ 1,093.1 | $ 1,043.6 |
Operating income | $ 59.4 | $ 54 | $ 170.5 | $ 160.7 |
Operating Margin | 16.50% | 15.80% | 15.60% | 15.40% |
Industrial Process | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 279.8 | $ 248.5 | $ 839.9 | $ 690.3 |
Operating income | $ 64.7 | $ 48.1 | $ 186.4 | $ 107.6 |
Operating Margin | 23.10% | 19.40% | 22.20% | 15.60% |
Connect & Control Technologies | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 184 | $ 163.2 | $ 523.8 | $ 481 |
Operating income | $ 33.2 | $ 30.3 | $ 91 | $ 84.2 |
Operating Margin | 18% | 18.60% | 17.40% | 17.50% |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ (1.2) | $ (0.3) | $ (2.9) | $ (1.8) |
Total Corporate and Other costs | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | ||
Operating income | $ (14.2) | $ (10.4) | ||
Operating Margin | 0% | 0% | ||
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | $ (38.5) | $ (35.4) | ||
Operating Margin | 0% | 0% |
SEGMENT INFORMATION - Schedul_2
SEGMENT INFORMATION - Schedule of Segment Reporting Information by Segment Assets (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Total Assets | $ 3,802.3 | $ 3,780.3 | |
Capital Expenditures | 68.5 | $ 73.7 | |
Depreciation & Amortization | 82.8 | 81.5 | |
Motion Technologies | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 1,309 | 1,311.9 | |
Capital Expenditures | 44.9 | 52.6 | |
Depreciation & Amortization | 49.3 | 45.5 | |
Industrial Process | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 1,269.9 | 1,218.6 | |
Capital Expenditures | 10.6 | 7.4 | |
Depreciation & Amortization | 16.7 | 19 | |
Connect & Control Technologies | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 858.5 | 751.6 | |
Capital Expenditures | 11.7 | 9.4 | |
Depreciation & Amortization | 14.9 | 14.3 | |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 364.9 | $ 498.2 | |
Capital Expenditures | 1.3 | 4.3 | |
Depreciation & Amortization | $ 1.9 | $ 2.7 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) | 9 Months Ended |
Sep. 30, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 3 |
REVENUE Revenue (Details)
REVENUE Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 822.1 | $ 753.6 | $ 2,453.9 | $ 2,213.1 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (1.2) | (0.3) | (2.9) | (1.8) |
Auto and rail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 351.5 | 333.1 | 1,067.5 | 1,013.8 |
Auto and rail | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Chemical and industrial pumps | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 219.6 | 187.9 | 664.1 | 551.7 |
Chemical and industrial pumps | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (0.1) | 0 | (0.1) | 0 |
Aerospace and defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 76.1 | 78.3 | 222.8 | 237.7 |
Aerospace and defense | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (1.1) | (0.3) | (2.8) | (1.8) |
General industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 101.2 | 82.4 | 286.1 | 239.6 |
General industrial | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 73.7 | 71.9 | 213.4 | 170.3 |
Energy | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Motion Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 359.5 | 342.2 | 1,093.1 | 1,043.6 |
Motion Technologies | Auto and rail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 351.5 | 333.1 | 1,067.5 | 1,013.8 |
Motion Technologies | Chemical and industrial pumps | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Motion Technologies | Aerospace and defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6 | 7.2 | 19.7 | 23.9 |
Motion Technologies | General industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2 | 1.9 | 5.9 | 5.9 |
Motion Technologies | Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Industrial Process | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 279.8 | 248.5 | 839.9 | 690.3 |
Industrial Process | Auto and rail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Industrial Process | Chemical and industrial pumps | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 219.7 | 187.9 | 664.2 | 551.7 |
Industrial Process | Aerospace and defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Industrial Process | General industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Industrial Process | Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 60.1 | 60.6 | 175.7 | 138.6 |
Connect & Control Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 184 | 163.2 | 523.8 | 481 |
Connect & Control Technologies | Auto and rail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Connect & Control Technologies | Chemical and industrial pumps | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Connect & Control Technologies | Aerospace and defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 71.2 | 71.4 | 205.9 | 215.6 |
Connect & Control Technologies | General industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 99.2 | 80.5 | 280.2 | 233.7 |
Connect & Control Technologies | Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 13.6 | $ 11.3 | $ 37.7 | $ 31.7 |
REVENUE Contract Assets and Lia
REVENUE Contract Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | ||
Current contract assets, net | $ 24.8 | $ 26.3 |
Non-current contract assets, net | 1.6 | 1.2 |
Current contract liabilities | (80.9) | (70.2) |
Non-current contract liabilities | (4.4) | (4.4) |
Net contract liabilities | $ 58.9 | $ 47.1 |
REVENUE Revenue Textuals (Detai
REVENUE Revenue Textuals (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Contract with Customer, Liability, Revenue Recognized | $ 8.2 | $ 48.3 |
Revenue, Remaining Performance Obligation, Amount | 1,206.6 | 1,206.6 |
Remaining Current Fiscal Year [Member] | Minimum [Member] | ||
Revenue, Remaining Performance Obligation, Amount | 500 | 500 |
Remaining Current Fiscal Year [Member] | Maximum [Member] | ||
Revenue, Remaining Performance Obligation, Amount | $ 520 | $ 520 |
INCOME TAXES Income Tax Expen_2
INCOME TAXES Income Tax Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 29.9 | $ 16.4 | $ 80.6 | $ 59.9 |
Effective tax rate | 21.10% | 13.70% | 20% | 19% |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 01, 2022 | Sep. 30, 2023 | |
Valuation Allowance [Line Items] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 0.7 | |
ITALY | ||
Valuation Allowance [Line Items] | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 1.7 | |
Tax Adjustments, Settlements, and Unusual Provisions | (14.3) | |
GERMANY | ||
Valuation Allowance [Line Items] | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 16.5 | |
UNITED STATES | ||
Valuation Allowance [Line Items] | ||
Tax Adjustments, Settlements, and Unusual Provisions | $ 4.7 |
EARNINGS PER SHARE DATA - Basic
EARNINGS PER SHARE DATA - Basic and Diluted Loss Per Share (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares – basic | 82.1 | 82.7 | 82.4 | 83.6 |
Add: Dilutive impact of outstanding equity awards | 0.4 | 0.3 | 0.3 | 0.3 |
Diluted weighted average common shares outstanding | 82.5 | 83 | 82.7 | 83.9 |
EARNINGS PER SHARE DATA - Anti-
EARNINGS PER SHARE DATA - Anti-Dilutive Equity Award Units Excluded from the Computation of Diluted Earnings (Loss) (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | [1] | 0 | 0 | 0.1 | 0 |
[1](a) Anti-dilutive shares related to equity stock unit awards excluded from the computation of diluted earnings per share. |
RECEIVABLES, NET - (Detail)
RECEIVABLES, NET - (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable | $ 655.6 | $ 614 |
Notes receivable | 19.1 | 8.2 |
Other | 13.6 | 18.3 |
Receivables, gross | 688.3 | 640.5 |
Less: Allowance for credit losses - receivables | (14.3) | (11.7) |
Receivables, net | $ 674 | $ 628.8 |
RECEIVABLES, NET Allowance for
RECEIVABLES, NET Allowance for Credit Losses (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Dec. 31, 2021 |
Credit Loss [Abstract] | ||||
Allowance for credit losses - receivables | $ 14.3 | $ 11.7 | ||
Allowance for credit losses - contract assets | 0 | 0.5 | ||
Total allowance for credit losses | $ 14.3 | $ 12.2 | $ 13.4 | $ 12.5 |
RECEIVABLES, NET Allowance fo_2
RECEIVABLES, NET Allowance for Credit Losses Rollforward (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | ||
Credit Loss [Abstract] | |||
Total allowance for credit losses - January 1 | $ 12.2 | $ 12.5 | |
Charges to income(a) | [1] | 3.4 | 2.5 |
Write-offs | (1.2) | (1.1) | |
Foreign currency and other | (0.1) | (0.5) | |
Total allowance for credit losses - ending balance | $ 14.3 | $ 13.4 | |
[1]We recognized bad debt expense of $1.2 relating to impacts stemming from the Russia-Ukraine war during each of the nine months ended September 30, 2023 and October 1, 2022. See Note 1, Description of Business and Basis of Presentation , for further information. |
RECEIVABLES, NET Textuals (Deta
RECEIVABLES, NET Textuals (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | ||
Charges to income(a) | [1] | $ 3.4 | $ 2.5 |
RUSSIAN FEDERATION | |||
Charges to income(a) | $ 1.2 | $ 1.2 | |
[1]We recognized bad debt expense of $1.2 relating to impacts stemming from the Russia-Ukraine war during each of the nine months ended September 30, 2023 and October 1, 2022. See Note 1, Description of Business and Basis of Presentation , for further information. |
INVENTORIES, NET - Components o
INVENTORIES, NET - Components of Inventories, Net (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 379.8 | $ 342.7 | |
Work in process | 113 | 104.6 | |
Finished goods | 81.5 | 86.6 | |
Inventories(a) | [1] | $ 574.3 | $ 533.9 |
[1]We recorded inventory write-downs of $1.6 and $5.6 related to inventories held by entities impacted by the Russia-Ukraine war during the nine months ended September 30, 2023 and October 1, 2022, respectively. See Note 1, Description of Business and Basis of Presentation , for further information. |
INVENTORIES, NET Textuals (Deta
INVENTORIES, NET Textuals (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Oct. 01, 2022 | |
Italian Government Energy Subsidy Grant | $ 6.3 | ||
RUSSIAN FEDERATION | |||
Inventory Write-down | $ 1.6 | $ 5.6 |
OTHER CURRENT AND NON-CURRENT_4
OTHER CURRENT AND NON-CURRENT ASSETS - Textuals (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
GERMANY | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 16.5 |
PLANT, PROPERTY AND EQUIPMENT_3
PLANT, PROPERTY AND EQUIPMENT, NET - Components of Plant, Property and Equipment, Net (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Machinery and equipment | $ 1,267.4 | $ 1,208.3 |
Buildings and improvements | 286.8 | 277.6 |
Furniture, fixtures and office equipment | 81 | 80.5 |
Construction work in progress | 62 | 86.9 |
Land and improvements | 28.5 | 29.3 |
Other | 2.9 | 3.3 |
Plant, property and equipment, gross | 1,728.6 | 1,685.9 |
Less: Accumulated depreciation | (1,205.4) | (1,159.1) |
Plant, property and equipment, net | $ 523.2 | $ 526.8 |
PLANT, PROPERTY AND EQUIPMENT_4
PLANT, PROPERTY AND EQUIPMENT, NET (Details) - Estimated Useful Lives | Sep. 30, 2023 |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Minimum [Member] | Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Minimum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Maximum [Member] | Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Maximum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
PLANT, PROPERTY AND EQUIPMENT_5
PLANT, PROPERTY AND EQUIPMENT, NET - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 21.8 | $ 19.4 | $ 62.9 | $ 61.4 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Changes in the Carrying Amount of Goodwill (Detail) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 USD ($) | ||
Goodwill [Roll Forward] | ||
Goodwill - December 31, 2022 | $ 964.8 | |
Acquired | 45.7 | |
Allocated to divestiture of business(a) | (2.4) | |
Foreign exchange translation | (7) | |
Goodwill - September 30, 2023 | 1,001.1 | |
Motion Technologies | ||
Goodwill [Roll Forward] | ||
Goodwill - December 31, 2022 | 287.7 | |
Acquired | 0 | |
Allocated to divestiture of business(a) | 0 | |
Foreign exchange translation | (0.4) | |
Goodwill - September 30, 2023 | 287.3 | |
Industrial Process | ||
Goodwill [Roll Forward] | ||
Goodwill - December 31, 2022 | 398.7 | |
Acquired | 0 | |
Allocated to divestiture of business(a) | 0 | |
Foreign exchange translation | (6.2) | |
Goodwill - September 30, 2023 | 392.5 | |
Connect & Control Technologies | ||
Goodwill [Roll Forward] | ||
Goodwill - December 31, 2022 | 278.4 | |
Acquired | 45.7 | |
Allocated to divestiture of business(a) | (2.4) | [1] |
Foreign exchange translation | (0.4) | |
Goodwill - September 30, 2023 | $ 321.3 | |
[1]During the second quarter of 2023, we completed the sale of a product line within our CCT segment to a third party for $10.5. The Company determined that the product line met the definition of a business per ASC 805, Business Combinations. As a result of the transaction, we recognized a gain on sale of $7.2, which is included in the General and administrative expenses line on our Consolidated Statements of Operations for the nine months ended September 30, 2023. Goodwill of $2.4 was allocated to the divestiture |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, NET Other Intangible Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ||
Finite-Lived Intangible Assets, Gross | $ 290.6 | $ 268.3 |
Indefinite-lived intangibles | 18.7 | 19 |
Other Intangible Assets, Gross Carrying Amount | 309.3 | 287.3 |
Accumulated Amortization | (186.3) | (174.5) |
Finite-live intangible asset, net of accumulated amortization | 104.3 | 93.8 |
Other intangible assets | 123 | 112.8 |
Customer relationships | ||
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ||
Customer relationships | 207.7 | 191.5 |
Accumulated Amortization | (138) | (127.1) |
Finite-live intangible asset, net of accumulated amortization | 69.7 | 64.4 |
Developed technology | ||
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ||
Proprietary technology | 60.8 | 59.2 |
Accumulated Amortization | (31.1) | (30.8) |
Finite-live intangible asset, net of accumulated amortization | 29.7 | 28.4 |
Patents and other | ||
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ||
Patents and Other, Gross Carrying Amount | 22.1 | 17.6 |
Accumulated Amortization | (17.2) | (16.6) |
Finite-live intangible asset, net of accumulated amortization | $ 4.9 | $ 1 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS, NET Intangibles Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | May 02, 2023 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Amortization of Intangible Assets | $ 5,600 | $ 5,300 | $ 15,400 | $ 15,300 | ||
Allocated to divestiture of business(a) | (2,400) | |||||
Gain (Loss) on Disposition of Business | 7,200 | $ 0 | ||||
Connect & Control Technologies | ||||||
Allocated to divestiture of business(a) | [1] | (2,400) | ||||
Proceeds from Divestiture of Businesses | 10,500 | |||||
Gain (Loss) on Disposition of Business | $ 7,200 | |||||
Micro-Mode | ||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Intangible Assets, Gross (Excluding Goodwill) | $ 28,700 | |||||
Intangible Assets, Gross (Excluding Goodwill) | $ 28,700 | |||||
[1]During the second quarter of 2023, we completed the sale of a product line within our CCT segment to a third party for $10.5. The Company determined that the product line met the definition of a business per ASC 805, Business Combinations. As a result of the transaction, we recognized a gain on sale of $7.2, which is included in the General and administrative expenses line on our Consolidated Statements of Operations for the nine months ended September 30, 2023. Goodwill of $2.4 was allocated to the divestiture |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - ACQUISITION (Details) - Micro-Mode $ in Millions | May 02, 2023 USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets acquired | $ 28.7 |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 20 years |
Total intangible assets acquired | $ 18.5 |
Developed technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 20 years |
Total intangible assets acquired | $ 5.5 |
Trade name | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 20 years |
Total intangible assets acquired | $ 2.3 |
Backlog | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 2 years |
Total intangible assets acquired | $ 1.9 |
Other | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Total intangible assets acquired | $ 0.5 |
ACCRUED AND OTHER CURRENT LIA_3
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES - (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |||
Compensation and other employee-related benefits | $ 157.7 | $ 134.4 | |
Contract liabilities and other customer-related liabilities | 116.4 | 92.2 | |
Accrued income taxes and other tax-related liabilities | 37.7 | 27.1 | |
Operating lease liabilities | 18.1 | 19 | |
Accrued warranty costs | 13.8 | 14.3 | |
Environmental liabilities and other legal matters | 6.6 | 5.7 | |
Accrued restructuring costs | 2.7 | 3.9 | |
Other | 37.5 | 36.8 | |
Accrued and other current liabilities | 390.5 | 333.4 | |
Operating lease liabilities(a) | [1] | 69.6 | 58.9 |
Environmental liabilities | 51 | 53.1 | |
Deferred income taxes and other tax-related liabilities | 28.6 | 31.1 | |
Compensation and other employee-related benefits | 27 | 25 | |
Non-current maturities of long-term debt(a) | [2] | 6.5 | 7.7 |
Other | 24.4 | 24.4 | |
Other non-current liabilities | $ 207.1 | $ 200.2 | |
[1]The increase in the non-current operating lease liabilities balance from December 31, 2022 to September 30, 2023 is primarily driven by the renewal of an operating facility lease in Irvine, California, and by the current period acquisition of Micro-Mode.[2]Our long-term debt is primarily related to outstanding Italian government loans. |
DEBT Debt (Details)
DEBT Debt (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |||
Commercial paper | $ 242.7 | $ 448.3 | |
Current maturities of long-term debt and finance leases | 2.2 | 2.2 | |
Other short-term notes payable | 0.5 | 0.5 | |
Commercial paper and current maturities of long-term debt | 245.4 | 451 | |
Non-current maturities of long-term debt(a) | [1] | 6.5 | 7.7 |
Total debt and finance leases | $ 251.9 | $ 458.7 | |
[1]Our long-term debt is primarily related to outstanding Italian government loans. |
DEBT Commercial Paper - Table (
DEBT Commercial Paper - Table (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Commercial paper | $ 242.7 | $ 448.3 |
UNITED STATES | ||
Short-term Debt [Line Items] | ||
Commercial paper | 5 | 299.2 |
Europe [Member] | ||
Short-term Debt [Line Items] | ||
Commercial paper | $ 237.7 | $ 149.1 |
Commercial Paper [Member] | UNITED STATES | ||
Short-term Debt [Line Items] | ||
Weighted Average Interest Rate | 5.53% | 4.92% |
Commercial Paper [Member] | Europe [Member] | ||
Short-term Debt [Line Items] | ||
Weighted Average Interest Rate | 4.25% | 2.31% |
DEBT Short-term Loans (Details)
DEBT Short-term Loans (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Interest Margin Above LIBOR | 1.10% |
2014 Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Aggregate Borrowing Capacity | $ 500 |
2021 Revolving Credit Facility Member | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Aggregate Borrowing Capacity | 700 |
Line of Credit Facility, Incremental Borrowing Capacity Maximum | 350 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,050 |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% |
LONG-TERM INCENTIVE EMPLOYEE _4
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Summary of Long-Term Incentive Plan Awards (Detail) shares in Millions | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards Granted | shares | 0.2 |
Grant Date Fair Value | $ / shares | $ 92.47 |
Performance Stock Unit [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards Granted | shares | 0.1 |
Grant Date Fair Value | $ / shares | $ 112.59 |
LONG-TERM INCENTIVE EMPLOYEE _5
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Proceeds from the exercise of stock options | $ 0.6 | $ 1.8 |
Equity Based Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 30.7 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 10 months 24 days | |
Liability Based Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 2.5 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock vested during period | 0.1 | 0.1 |
Performance Stock Unit [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock vested during period | 0.1 | 0.1 |
COMMITMENTS AND CONTINGENCIES R
COMMITMENTS AND CONTINGENCIES Rollforward of Environmental Liability and Related Assets (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | ||
Loss Contingency Accrual [Roll Forward] | |||
Environmental liability - beginning balance | $ 57.1 | $ 54.1 | |
Accruals added during the period for new matters | 0 | 0.2 | |
Payments | (2.9) | (3.4) | |
Foreign currency | (0.1) | (0.5) | |
Environmental liability - ending balance | 54.9 | 55.8 | |
Environmental-related assets | 11 | 14.6 | |
Continuing operations | |||
Loss Contingency Accrual [Roll Forward] | |||
Change in estimates for pre-existing accruals: | 0.8 | 0 | |
Discontinued operations(a) | |||
Loss Contingency Accrual [Roll Forward] | |||
Change in estimates for pre-existing accruals: | $ 0 | 5.4 | [1] |
Environmental-related assets | 4.3 | ||
Changes in Pre-Existing Environmental Accruals, Net of Insurance Recovery | $ 1.1 | ||
[1]During the nine months ended October 1, 2022, we increased the estimated environmental liability for a former site of ITT by $5.4 and recognized an insurance-related asset of $4.3. The resulting net pre-tax expense of $1.1 has been presented as a loss from discontinued operations within the Consolidated Condensed Statements of Operations. |
COMMITMENTS AND CONTINGENCIES E
COMMITMENTS AND CONTINGENCIES Environmental Matters Textuals (Details) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 USD ($) site | Oct. 01, 2022 USD ($) site | ||
Site Contingency [Line Items] | |||
Environmental-related assets | $ 11 | $ 14.6 | |
Discontinued operations(a) | |||
Site Contingency [Line Items] | |||
Change in estimates for pre-existing accruals: | $ 0 | 5.4 | [1] |
Environmental-related assets | $ 4.3 | ||
Environmental Related Matters [Member] | |||
Site Contingency [Line Items] | |||
Number Of Active Environmental Investigation And Remediation Sites | site | 26 | 28 | |
Maximum [Member] | Environmental Related Matters [Member] | |||
Site Contingency [Line Items] | |||
Loss Contingency, Range of Possible Loss, Maximum | $ 89 | $ 98 | |
[1]During the nine months ended October 1, 2022, we increased the estimated environmental liability for a former site of ITT by $5.4 and recognized an insurance-related asset of $4.3. The resulting net pre-tax expense of $1.1 has been presented as a loss from discontinued operations within the Consolidated Condensed Statements of Operations. |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | Dec. 31, 2022 | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||
Notional amount (U.S. dollar equivalent) | $ 43.6 | $ 43.6 | $ 136.5 | |||
Fair value of foreign currency derivative contracts(a) | [1] | 1.2 | 1.2 | $ 1.7 | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | [2] | $ (1.4) | $ 1.8 | (4.6) | $ 7.3 | |
Cash inflow (outflow) from settlement of foreign currency derivative contracts | $ 2.4 | $ 2.1 | ||||
[1]Our foreign currency derivative contracts are classified within Level 2 of the fair value hierarchy because these contracts are not actively traded and the valuation inputs are based on market observable data of similar instruments.[2]None of our derivative contracts were designated as hedging instruments under ASC 815 - Derivatives & Hedging . |
ACQUISITIONS Acquisitions (Deta
ACQUISITIONS Acquisitions (Details) - USD ($) $ in Millions | Sep. 30, 2023 | May 02, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,001.1 | $ 964.8 | |
Micro-Mode | |||
Business Acquisition [Line Items] | |||
Receivables | $ 2.7 | ||
Inventory | 5.6 | ||
Plant, property and equipment | 6 | ||
Goodwill | 45.7 | ||
Other intangible assets | 28.7 | ||
Other assets | 0.3 | ||
Accounts payable and accrued liabilities | (2.3) | ||
Other liabilities | (7.4) | ||
Net assets acquired | $ 79.3 |
ACQUISITIONS Acquisitions Textu
ACQUISITIONS Acquisitions Textuals (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
May 02, 2023 USD ($) | Apr. 04, 2022 USD ($) Employees | Oct. 01, 2022 USD ($) | Sep. 30, 2023 USD ($) | Oct. 01, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||
Acquisitions, net of cash acquired | $ 79.3 | $ 146.9 | |||
Micro-Mode | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | May 02, 2023 | ||||
Acquisitions, net of cash acquired | $ 79.3 | ||||
Revenue of Acquired Entity for Last Annual Period | $ 26 | ||||
Business Acquisition, Description of Acquired Entity | completed the acquisition of Micro-Mode Products, Inc. (Micro-Mode) | ||||
Habonim | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Apr. 04, 2022 | ||||
Acquisitions, net of cash acquired | $ 139.9 | ||||
Business Acquisition, Description of Acquired Entity | completed the acquisition of 100% of the privately held stock of Habonim | ||||
Number of Employees at Entity to be Acquired | Employees | 200 | ||||
Clippard Instrument Laboratory | |||||
Business Acquisition [Line Items] | |||||
Acquisitions, net of cash acquired | $ 7 |
ACQUISITIONS Equity Method Inve
ACQUISITIONS Equity Method Investments - CRP (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Oct. 01, 2022 USD ($) | Sep. 30, 2023 USD ($) | Oct. 01, 2022 USD ($) | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||||
Payments to acquire interest in unconsolidated subsidiaries | $ 1,400 | $ 25,600 | |||
Minority Investment in CRP Technology Srl | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 46% | ||||
Minority Investment in CRP USA LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 33% | ||||
Minority Investment in CRP | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 4,200% | 4,200% | |||
Equity method investment, increase in ownership percentage | 9 | ||||
Minority Investment in CRP | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Payments to acquire interest in unconsolidated subsidiaries | $ 23,000 | ||||
Minority Investment in CRP USA LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Payments to acquire interest in unconsolidated subsidiaries | $ 1,400 |
ACQUISITIONS Subsequent Event (
ACQUISITIONS Subsequent Event (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Nov. 01, 2023 | Sep. 30, 2023 | Oct. 01, 2022 | |
Subsequent Event [Line Items] | |||
Acquisitions, net of cash acquired | $ 79.3 | $ 146.9 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Subsequent Event, Date | Nov. 01, 2023 | ||
Subsequent Event, Description | we signed an agreement to acquire 100% of the outstanding shares of privately held Svanehøj Group A/S (Svanehøj), a Denmark-based supplier of pumps and related aftermarket services with leading positions in cryogenic applications for the marine sector, | ||
Subsequent Event [Member] | Svanehoj | |||
Subsequent Event [Line Items] | |||
Acquisitions, net of cash acquired | $ 395 | ||
Revenue of Acquired Entity for Last Annual Period | $ 140 |
Uncategorized Items - itt-20230
Label | Element | Value |
Subsequent Event [Member] | ||
Subsequent Events [Text Block] | us-gaap_SubsequentEventsTextBlock | Subsequent Event On November 1, 2023, we signed an agreement to acquire 100% of the outstanding shares of privately held Svanehøj Group A/S (Svanehøj), a Denmark-based supplier of pumps and related aftermarket services with leading positions in cryogenic applications for the marine sector, for approximately $395, based on current DKK to USD exchange rate and subject to customary closing adjustments. The transaction is expected to close in the first quarter of 2024, subject to the receipt of customary regulatory approvals. Svanehøj will become part of our IP segment. Svanehøj employs approximately 400 employees and has operations in Denmark, Singapore and France. The company generated approximately $140 in sales in 2022. |