Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 30, 2024 | |
Cover [Abstract] | ||
Entity Registrant Name | ITT INC. | |
Document Type | 10-Q | |
Document Period End Date | Mar. 30, 2024 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
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 $1.00 per share | |
Trading Symbol | ITT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 82.3 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 910.6 | $ 797.9 |
Cost of revenue | 609.8 | 536 |
Gross profit | 300.8 | 261.9 |
General and administrative expenses | 71.5 | 68.3 |
Sales and marketing expenses | 50.1 | 42.9 |
Research and development expenses | 30 | 26.4 |
Operating income | 149.2 | 124.3 |
Interest and non-operating expense, net | 4.4 | 3.5 |
Income before income tax expense | 144.8 | 120.8 |
Income tax expense | 32.8 | 20.1 |
Net income | 112 | 100.7 |
Less: Income attributable to noncontrolling interests | 1 | 0.7 |
Net income attributable to ITT Inc. | $ 111 | $ 100 |
Earnings per share attributable to ITT Inc.: | ||
Basic | $ 1.35 | $ 1.21 |
Diluted | $ 1.34 | $ 1.20 |
Weighted average common shares – basic | 82.2 | 82.6 |
Weighted average common shares – diluted | 82.7 | 83 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 112 | $ 100.7 |
Other comprehensive (loss) income: | ||
Net foreign currency translation adjustment | (32.1) | 6 |
Net change in postretirement benefit plans, net of tax impacts of $0.3, $1.8, respectively | (1) | 0.4 |
Other comprehensive (loss) income | (33.1) | 6.4 |
Comprehensive income | 78.9 | 107.1 |
Less: Comprehensive income attributable to noncontrolling interests | 1 | 0.7 |
Comprehensive income attributable to ITT Inc. | 77.9 | 106.4 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax [Abstract] | ||
Amortization of prior service benefit, net of tax expense of $0.3, $0.3, respectively | (1.1) | (1.2) |
Amortization of net actuarial loss, net of tax benefit of $0.0, $0.0, respectively | 0.1 | 0.1 |
Other Adjustments [Abstract] | ||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 0 | 1.5 |
Net change in postretirement benefit plans, net of tax | $ 1 | $ (0.4) |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical)) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent | $ 0.3 | $ 1.8 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax | 0.3 | 0.3 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | $ 0 | $ 0 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 423 | $ 489.2 |
Receivables, net | 752 | 675.2 |
Inventories | 609.4 | 575.4 |
Other current assets | 123.3 | 117.9 |
Total current assets | 1,907.7 | 1,857.7 |
Non-current assets: | ||
Plant, property and equipment, net | 568.1 | 561 |
Goodwill | 1,207.7 | 1,016.3 |
Other intangible assets, net | 332.2 | 116.6 |
Other non-current assets | 388 | 381 |
Total non-current assets | 2,496 | 2,074.9 |
Total assets | 4,403.7 | 3,932.6 |
Current liabilities: | ||
Short-term borrowings | 322.7 | 187.7 |
Accounts payable | 459.2 | 437 |
Accrued and other current liabilities | 415.1 | 413.1 |
Total current liabilities | 1,197 | 1,037.8 |
Long-Term Debt | 230.5 | 5.7 |
Non-current liabilities: | ||
Postretirement benefits | 135.9 | 138.7 |
Other non-current liabilities | 254.1 | 211.3 |
Total non-current liabilities | 620.5 | 355.7 |
Total liabilities | 1,817.5 | 1,393.5 |
Common stock: [Abstract] | ||
Issued and outstanding – 82.3 shares and 82.1 shares, respectively | 82.3 | 82.1 |
Retained earnings | 2,857.4 | 2,778 |
Accumulated other comprehensive loss: | ||
Postretirement benefits | (2.6) | (1.6) |
Cumulative translation adjustments | (362.4) | (330.3) |
Total accumulated other comprehensive loss | (365) | (331.9) |
Total ITT Inc. shareholders’ equity | 2,574.7 | 2,528.2 |
Noncontrolling interests | 11.5 | 10.9 |
Total shareholders’ equity | 2,586.2 | 2,539.1 |
Total liabilities and shareholders’ equity | $ 4,403.7 | $ 3,932.6 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Mar. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 250 | |
Common stock, par value | $ 1 | |
Common stock, shares issued | 82.3 | 82.1 |
Common stock, shares outstanding | 82.3 | 82.1 |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Operating Activities | ||
Income from continuing operations attributable to ITT Inc. | $ 111 | $ 100 |
Adjustments to income from continuing operations: | ||
Depreciation and amortization | 33.6 | 26.7 |
Equity-based compensation | 7 | 4.7 |
Other non-cash charges, net | 8.1 | 7.5 |
Changes in assets and liabilities: | ||
Change in receivables | (67.7) | (34.7) |
Change in inventories | (1) | (29.1) |
Change in contract assets | (13.5) | (2) |
Change in contract liabilities | 3.3 | 2.9 |
Change in accounts payable | 15 | 1.8 |
Change in accrued expenses | (44.5) | (10.8) |
Change in income taxes | 10.1 | 3.7 |
Other, net | (3.6) | (12.6) |
Net Cash – Operating Activities | 57.8 | 58.1 |
Investing Activities | ||
Capital expenditures | (27.7) | (28.7) |
Acquisitions, net of cash acquired | (407.6) | 0 |
Other, net | 0 | 0.2 |
Net Cash – Investing Activities | (435.3) | (28.5) |
Financing Activities | ||
Commercial paper, net borrowings | 134.7 | (72.8) |
Long-term debt issued, net of debt issuance costs | 299.1 | 0 |
Long-term debt, repayments | (70.5) | 0 |
Share repurchases under repurchase plan | 0 | (30) |
Payments for taxes related to net share settlement of stock incentive plans | (12.5) | (6.3) |
Dividends paid | (26.5) | (24.2) |
Other, net | (0.9) | 0.4 |
Net Cash – Financing Activities | 323.4 | (132.9) |
Exchange rate effects on cash and cash equivalents | (12) | 4.3 |
Net cash – operating activities of discontinued operations | (0.1) | (0.1) |
Net change in cash and cash equivalents | (66.2) | (99.1) |
Cash and cash equivalents – beginning of year (includes restricted cash of $0.7 and $0.7, respectively) | 489.9 | 561.9 |
Cash and Cash Equivalents – End of Period (includes restricted cash of $0.7 and $0.8, respectively) | 423.7 | 462.8 |
Cash paid during the year for: | ||
Cash paid for interest | 3.7 | 4.2 |
Cash paid for income taxes, net of refunds received | 16.3 | 13.2 |
Capital Expenditures Incurred but Not yet Paid | $ 17.5 | $ 10.3 |
CONSOLIDATED CONDENSED STATEM_5
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 | Apr. 01, 2023 | Dec. 31, 2022 |
Restricted Cash | $ 0.7 | $ 0.7 | $ 0.8 | $ 0.7 |
CONSOLIDATED CONDENSED STATEM_6
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, 2022 | 82.7 | ||||
Common Stock, Shares [Abstract] | |||||
Activity from stock incentive plans, shares | 0.2 | ||||
Share repuchases, shares | (0.4) | ||||
Share repurchases from net settlement of employee stock incentive plans, shares | (0.1) | ||||
Common Stock Outstanding, Ending Balance at Apr. 01, 2023 | 82.4 | ||||
Total shareholders' equity, Beginning Balance at Dec. 31, 2022 | $ 2,257.4 | $ 82.7 | $ 2,509.7 | $ (344.3) | $ 9.3 |
Shareholders' Equity, Dollars [Abstract] | |||||
Net income | 100.7 | 0 | 100 | 0 | 0.7 |
Shares issued and activity from stock incentive plans | 5.1 | 0.2 | 4.9 | 0 | 0 |
Shares repurchased under repurchase plan | (30) | (0.4) | (29.6) | 0 | 0 |
Shares withheld related to net share settlement of stock incentive plans | (6.3) | (0.1) | (6.2) | 0 | 0 |
Dividends Declared | (24.1) | (24.1) | 0 | ||
Net change in postretirement benefit plans, net of tax impacts of $0.3, $1.8, respectively | 0.4 | (0.4) | |||
Net change during period - AOCI Cumulative Translation Adjustment | 6 | 6 | |||
Total shareholders' equity, Ending Balance at Apr. 01, 2023 | $ 2,309.2 | $ 82.4 | 2,554.7 | (337.9) | 10 |
Common Stock Outstanding, Beginning Balance at Dec. 31, 2023 | 82.1 | 82.1 | |||
Common Stock, Shares [Abstract] | |||||
Activity from stock incentive plans, shares | 0.3 | ||||
Share repurchases from net settlement of employee stock incentive plans, shares | (0.1) | ||||
Common Stock Outstanding, Ending Balance at Mar. 30, 2024 | 82.3 | 82.3 | |||
Total shareholders' equity, Beginning Balance at Dec. 31, 2023 | $ 2,539.1 | $ 82.1 | 2,778 | (331.9) | 10.9 |
Shareholders' Equity, Dollars [Abstract] | |||||
Net income | 112 | 111 | 0 | 1 | |
Shares issued and activity from stock incentive plans | 7.3 | 0.3 | 7 | 0 | 0 |
Shares withheld related to net share settlement of stock incentive plans | (12.5) | (0.1) | (12.4) | 0 | 0 |
Dividends Declared | (26.3) | (26.3) | 0 | 0 | |
Dividends to noncontrolling interest | (0.4) | (0.4) | |||
Net change in postretirement benefit plans, net of tax impacts of $0.3, $1.8, respectively | (1) | 1 | |||
Net change during period - AOCI Cumulative Translation Adjustment | (32.1) | $ (32.1) | |||
Other | 0.1 | 0.1 | 0 | ||
Total shareholders' equity, Ending Balance at Mar. 30, 2024 | $ 2,586.2 | $ 82.3 | $ 2,857.4 | $ 11.5 |
CONSOLIDATED CONDENSED STATEM_7
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Dividends declared per share | $ 0.319 | $ 0.29 |
OTHER CURRENT AND NON-CURRENT A
OTHER CURRENT AND NON-CURRENT ASSETS - Components of Other Current and Non-Current Assets - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Advance payments and other prepaid expenses | $ 62.1 | $ 55.3 |
Current contract assets | 40.4 | 25.8 |
Prepaid income taxes | 7.6 | 16.9 |
Other | 13.2 | 19.9 |
Other current assets | 123.3 | 117.9 |
Other employee benefit-related assets | 131.7 | 128.6 |
Operating lease right-of-use assets | 90.4 | 87.4 |
Deferred income taxes | 75.9 | 76 |
Equity-method and other investments | 47.8 | 46.6 |
Capitalized software costs | 7.1 | 7.9 |
Environmental-related assets | 7.8 | 6 |
Other | 27.3 | 28.5 |
Other non-current assets | $ 388 | $ 381 |
LONG-TERM INCENTIVE EMPLOYEE CO
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Employee Compensation Costs - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based awards | $ 7.7 | $ 5.5 |
Equity Based Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based awards | 7 | 4.7 |
Liability Based Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based awards | $ 0.7 | $ 0.8 |
CAPITAL STOCK - Additional Info
CAPITAL STOCK - Additional Information - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Equity, Class of Treasury Stock [Line Items] | ||
Aggregate cost of repurchase | $ 30,000 | |
Shares repurchased aggregate value under settlement of employee tax withholding obligations | $ 12,500 | $ 6,300 |
Settlement of Tax Withholding on Employee Equity Compensation | ||
Equity, Class of Treasury Stock [Line Items] | ||
Repurchase of shares of common stock | 0.1 | 0.1 |
2019 Share Repurchase Program [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Share repurchase program | $ 500,000 | |
Repurchase of shares of common stock | 0.4 | |
Aggregate cost of repurchase | $ 30,000 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 78,800 | |
2023 Share Repurchase Program | ||
Equity, Class of Treasury Stock [Line Items] | ||
Share repurchase program | $ 1,000,000 |
DESCRIPTION OF BUSINESS, BASIS
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND UPDATES TO SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 30, 2024 | |
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 January 19, 2024, we completed the acquisition of Svanehøj Group A/S (Svanehøj) for a purchase price of $407.6, net of cash acquired. Subsequent to the acquisition, Svanehøj’s results are reported within our IP segment. Refer to Note 18, Acquisitions , for more information. 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, 2023, presented herein, has been derived from our audited balance sheet included in our Annual Report on Form 10-K ( 2023 Annual Report ) for the year ended December 31, 2023, 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 2023 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 2023 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 first quarter for 2024 and 2023 ended on March 30, 2024 and April 1, 2023, respectively. Certain prior year amounts have been reclassified to conform to the current year presentation. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 30, 2024 | |
Recent Accounting Pronouncements [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS From time to time, the Financial Accounting Standards Board (“FASB”) or other standards setting bodies issue new accounting pronouncements. Updates to the FASB's accounting standards are communicated through issuance of an Accounting Standards Update (“ASU”). The Company considers the applicability and impact of all ASUs on our business and financial results. Recently issued accounting pronouncements not yet adopted In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. This ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating the impact that this guidance will have on the disclosures within our financial statements, and will adopt this ASU for the year ending December 31, 2024. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires disclosure of specific categories in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold. The amendment also includes other changes to improve the effectiveness of income tax disclosures, including further disaggregation of income taxes paid for individually significant jurisdictions. This ASU is effective for annual periods beginning after December 15, 2024. Adoption of this ASU should be applied on a prospective basis. Early adoption is permitted. We are currently evaluating the impact that this guidance will have on the disclosures within our financial statements, and expect to adopt this ASU for the year ending December 31, 2025. During 2024, there were no other new accounting standards issued, or that are pending issuance, which are expected to have a material impact on our consolidated financial statements upon adoption. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 30, 2024 | |
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 CODM, 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 for each segment and reconciles our total segment revenue to total consolidated revenue. For the Three Months Ended March 30, April 1, Motion Technologies $ 392.4 $ 364.8 Industrial Process 333.9 266.5 Connect & Control Technologies 185.1 167.6 Total segment revenue 911.4 798.9 Eliminations (0.8) (1.0) Total consolidated revenue $ 910.6 $ 797.9 The following table presents our operating income for each segment and reconciles our total segment operating income to income from continuing operations before income tax. For the Three Months Ended March 30, April 1, Motion Technologies $ 70.6 $ 53.4 Industrial Process 63.8 55.3 Connect & Control Technologies 32.7 29.4 Total segment operating income 167.1 138.1 Other corporate costs (17.9) (13.8) Interest and non-operating expense, net (4.4) (3.5) Income from continuing operations before income tax $ 144.8 $ 120.8 The following table presents our operating margin for each segment. Segment operating margin is calculated as segment operating income divided by segment revenue . For the Three Months Ended March 30, April 1, Motion Technologies 18.0 % 14.6 % Industrial Process 19.1 % 20.8 % Connect & Control Technologies 17.7 % 17.5 % The following table presents our total assets, capital expenditures, and depreciation & amortization expense for each segment. As of and for the Three Months Ended Total Assets Capital Depreciation & March 30, December 31, March 30, April 1, March 30, April 1, Motion Technologies $ 1,368.9 $ 1,366.6 $ 18.0 $ 20.2 $ 15.8 $ 15.8 Industrial Process 1,856.0 1,323.2 6.7 3.2 12.1 5.6 Connect & Control Technologies 826.7 834.6 2.7 4.8 5.1 4.7 Corporate and Other 352.1 408.2 0.3 0.5 0.6 0.6 Total $ 4,403.7 $ 3,932.6 $ 27.7 $ 28.7 $ 33.6 $ 26.7 |
REVENUE REVENUE
REVENUE REVENUE | 3 Months Ended |
Mar. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Footnote | REVENUE The following tables present our revenue disaggregated by end market. For the Three Months Ended March 30, 2024 Motion Technologies Industrial Process Connect & Control Technologies Eliminations Total Auto and rail $ 383.9 $ — $ — $ (0.1) $ 383.8 Chemical and industrial pumps — 218.9 — — 218.9 Energy — 115.0 13.4 — 128.4 Aerospace and defense 1.7 — 104.1 — 105.8 General industrial 6.8 — 67.6 (0.7) 73.7 Total $ 392.4 $ 333.9 $ 185.1 $ (0.8) $ 910.6 For the Three Months Ended April 1, 2023 Auto and rail $ 356.0 $ — $ — $ — $ 356.0 Chemical and industrial pumps — 218.0 — — 218.0 Energy — 48.5 10.2 — 58.7 Aerospace and defense 1.9 — 86.9 — 88.8 General industrial 6.9 — 70.5 (1.0) 76.4 Total $ 364.8 $ 266.5 $ 167.6 $ (1.0) $ 797.9 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 March 30, December 31, Current contract assets $ 40.4 $ 25.8 Non-current contract assets 1.6 1.6 Current contract liabilities (a) (126.6) (95.9) Non-current contract liabilities (4.5) (4.5) Net contract liabilities $ (89.1) $ (73.0) (a) The increase in current contract liabilities from December 31, 2023 to March 30, 2024 is driven by the acquisition of Svanehøj. Refer to Note 18, Acquisitions , for further information. During the three months ended March 30, 2024, we recognized revenue of $48.0 related to contract liabilities as of December 31, 2023. The aggregate amount of the transaction price allocated to unsatisfied or partially satisfied performance obligations as of March 30, 2024 was $1,450.1. Of this amount, we expect to recognize approximately $970 to $990 of revenue during the remainder of 2024. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table summarizes our income tax expense and effective tax rate. For the Three Months Ended March 30, April 1, Income tax expense $ 32.8 $ 20.1 Effective tax rate 22.7 % 16.6 % The increase in the effective tax rate (ETR) for the three months ended March 30, 2024 was due to prior year benefits of $16.3 from valuation allowance reversals on deferred tax assets in Germany and $4.9 from filing an amended 2017 consolidated federal tax return. These benefits were partially offset by a prior year expense of $14.1 relating to an Italian tax audit settlement covering tax years 2016-2022. In October 2021, more than 135 countries and jurisdictions agreed to participate in a “two-pillar” international tax approach developed by the Organisation for Economic Co-operation and Development (OECD), which includes establishing a global minimum corporate tax rate of 15 percent. The OECD published Tax Challenges Arising from the Digitalisation of the Economy — Global Anti-Base Erosion Model Rules (Pillar Two) in December 2021 and subsequently issued additional commentary and administrative guidance clarifying several aspects of the model rules. Since the model rules have been released, many countries have now enacted Pillar Two-related laws, some of which became effective January 1, 2024, and it is anticipated that many more will follow suit throughout 2024. As of March 31, 2024, the Company does not expect Pillar Two taxes to have a significant impact on its 2024 financial statements. 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 $0.5 due to changes in audit status, expiration of statutes of limitations and other events. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 30, 2024 | |
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. For the Three Months Ended March 30, April 1, Basic weighted average common shares outstanding 82.2 82.6 Add: Dilutive impact of outstanding equity awards 0.5 0.4 Diluted weighted average common shares outstanding 82.7 83.0 Anti-dilutive shares (a) 0.2 0.2 (a) Anti-dilutive shares related to equity stock unit awards excluded from the computation of diluted earnings per share. |
RECEIVABLES, NET
RECEIVABLES, NET | 3 Months Ended |
Mar. 30, 2024 | |
Receivables [Abstract] | |
RECEIVABLES, NET | RECEIVABLES The following table summarizes our receivables and associated allowance for credit losses. As of the Period Ended March 30, December 31, Trade accounts receivable $ 723.1 $ 641.3 Notes receivable 18.1 25.5 Other 25.7 22.6 Receivables, gross 766.9 689.4 Less: Allowance for credit losses (14.9) (14.2) Receivables, net $ 752.0 $ 675.2 The following table displays a rollforward of our total allowance for credit losses. March 30, April 1, Total allowance for credit losses - January 1 $ 14.2 $ 12.2 Charges to income 1.4 1.2 Write-offs (0.6) (0.3) Foreign currency and other (0.1) — Total allowance for credit losses - ending balance $ 14.9 $ 13.1 |
INVENTORIES, NET
INVENTORIES, NET | 3 Months Ended |
Mar. 30, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORY The following table summarizes our inventories. As of the Period Ended March 30, December 31, Raw materials $ 383.2 $ 366.6 Work in process 124.0 111.8 Finished goods 102.2 97.0 Inventories $ 609.4 $ 575.4 Government Assistance (ASU 2021-10) 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 25% to 40%. 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 March 30, 2024. For the three months ended April 1, 2023, we recognized a benefit of $3.9 related to energy subsidies, which we recorded within Costs of revenue in our Consolidated Condensed Statements of Operations. 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 | 3 Months Ended |
Mar. 30, 2024 | |
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 March 30, December 31, Advance payments and other prepaid expenses $ 62.1 $ 55.3 Current contract assets, net 40.4 25.8 Prepaid income taxes 7.6 16.9 Other 13.2 19.9 Other current assets $ 123.3 $ 117.9 Other employee benefit-related assets $ 131.7 $ 128.6 Operating lease right-of-use assets 90.4 87.4 Deferred income taxes 75.9 76.0 Equity-method and other investments 47.8 46.6 Capitalized software costs 7.1 7.9 Environmental-related assets 7.8 6.0 Other 27.3 28.5 Other non-current assets $ 388.0 $ 381.0 |
PLANT, PROPERTY AND EQUIPMENT,
PLANT, PROPERTY AND EQUIPMENT, NET | 3 Months Ended |
Mar. 30, 2024 | |
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 March 30, December 31, Machinery and equipment 2 - 10 $ 1,325.3 $ 1,317.9 Buildings and improvements 5 - 40 318.4 298.4 Furniture, fixtures and office equipment 3 - 7 81.2 83.7 Construction work in progress 74.4 78.1 Land and improvements 29.9 29.5 Other 1.9 1.7 Plant, property and equipment, gross 1,831.1 1,809.3 Less: Accumulated depreciation (1,263.0) (1,248.3) Plant, property and equipment, net $ 568.1 $ 561.0 The following table summarizes our depreciation expense. For the Three Months Ended March 30, April 1, Depreciation expense $ 22.3 $ 20.7 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 3 Months Ended |
Mar. 30, 2024 | |
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, 2023 $ 292.3 $ 403.0 $ 321.0 $ 1,016.3 Acquired (a) — 201.9 — 201.9 Foreign exchange translation (1.4) (8.5) (0.6) (10.5) Goodwill - March 30, 2024 $ 290.9 $ 596.4 $ 320.4 $ 1,207.7 (a) Goodwill acquired is related to our acquisition of Svanehøj and represents the preliminary calculation of the excess purchase price over the net assets acquired. Refer to Note 18, Acquisitions , for further information. Other Intangible Assets, Net The following table summarizes our other intangible assets, net of accumulated amortization. March 30, 2024 December 31, 2023 Gross Accumulated Amortization Net Intangibles Gross Accumulated Amortization Net Intangibles Customer relationships $ 320.5 $ (141.5) $ 179.0 $ 202.4 $ (138.4) $ 64.0 Proprietary technology 121.2 (34.3) 86.9 61.5 (32.5) 29.0 Patents and other 40.0 (21.6) 18.4 22.0 (17.5) 4.5 Finite-lived intangible total 481.7 (197.4) 284.3 285.9 (188.4) 97.5 Indefinite-lived intangibles 47.9 — 47.9 19.1 — 19.1 Other intangible assets $ 529.6 $ (197.4) $ 332.2 $ 305.0 $ (188.4) $ 116.6 The preliminary fair values of intangible assets acquired in connection with the purchase of Svanehøj total $226.0 and consist of the following: Useful life Fair value Customer relationships 16 $ 119.0 Developed technology 17 60.0 Trade name Indefinite 29.0 Backlog 1 18.0 Total intangible assets acquired $ 226.0 Refer to Note 18, Acquisitions , for further information. Amortization expense related to finite-lived intangible assets was $9.6 and $4.7 for the three months ended March 30, 2024 and April 1, 2023, respectively. E stimated amortization expense for each of the five succeeding years and thereafter is as follows: 2024 $ 32.3 2025 $ 28.0 2026 $ 23.3 2027 $ 21.2 2028 $ 21.2 Thereafter $ 158.3 |
ACCRUED AND OTHER CURRENT LIABI
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES | 3 Months Ended |
Mar. 30, 2024 | |
Payables and Accruals [Abstract] | |
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES | ACCOUNTS PAYABLE, ACCRUED LIABILITIES AND OTHER NON-CURRENT LIABILITIES The following table summarizes our accrued liabilities and other non-current liabilities. As of the Period Ended March 30, December 31, Compensation and other employee-related benefits $ 118.1 $ 165.5 Contract liabilities and other customer-related liabilities 165.3 133.6 Accrued income taxes and other tax-related liabilities 44.7 30.7 Operating lease liabilities 19.5 19.5 Accrued warranty costs 15.3 14.0 Environmental liabilities and other legal matters 5.6 5.8 Accrued restructuring costs 3.5 4.8 Other 43.1 39.2 Accrued and other current liabilities $ 415.1 $ 413.1 Operating lease liabilities $ 75.2 $ 72.3 Environmental liabilities 50.2 52.0 Deferred income taxes and other tax-related liabilities 62.8 25.0 Compensation and other employee-related benefits 38.2 38.0 Other 27.7 24.0 Other non-current liabilities $ 254.1 $ 211.3 |
DEBT Debt (Notes)
DEBT Debt (Notes) | 3 Months Ended |
Mar. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt [Text Block] | DEBT The following table summarizes our outstanding debt obligations. As of the Period Ended March 30, December 31, Commercial paper (a) $ 319.6 $ 184.9 Current maturities of long-term debt 2.3 2.3 Short-term loans 0.8 0.5 Total short-term borrowings 322.7 187.7 Non-current maturities of long-term debt (b) 230.5 5.7 Total debt and finance leases $ 553.2 $ 193.4 (a) The associated weighted average interest rates as of March 30, 2024 and December 31, 2023 were 5.63% and 5.61% respectively. Outstanding commercial paper for both periods had maturity terms less than three months from the date of issuance. (b) Our long-term debt is primarily related to a term loan that we entered into in January, 2024 in connection with the acquisition of Svanehøj. See additional details in section titled, “ Term Loan ”, below. Revolving Credit Agreement 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 March 30, 2024 and December 31, 2023, 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. As of March 30, 2024 and April 1, 2023, we had no outstanding obligations under the current or former revolving credit facility. 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. As of March 30, 2024, all financial covenants (e.g., leverage ratio) associated with the 2021 Revolving Credit Agreement were within the prescribed thresholds. Term Loan On January 12, 2024, ITT Italia S.r.l. (“ITT Italia”), an indirect wholly owned subsidiary of ITT, entered into a facility agreement (the “ITT Italia Credit Agreement”), among the Company, as a guarantor, ITT Italia, as borrower, and BNP Paribas, Italian Branch, as bookrunner, sole underwriter and global coordinator, mandated lead arranger and agent. The ITT Italia Credit Agreement has an initial maturity of three years (January 2027) and provides for term loan borrowings in an aggregate principal amount of €300 (or $328.9), €275 (or $301.5) of which was used to finance the Company’s acquisition of Svanehøj Group A/S, which closed on January 19, 2024. The interest rate per annum on the ITT Italia Credit Agreement is based on the EURIBOR rate for Euros, plus a margin of 1.00%. The margin and fees are subject to adjustment should the Company’s credit ratings change. The ITT Italia Credit Agreement contains customary affirmative and negative covenants, as well as financial covenants (e.g., leverage ratio), that are similar to those contained in our 2021 Revolving Credit Agreement, as described above. As of March 30, 2024, the Company was in compliance with all covenants. Total outstanding borrowings under the facility were €210, or $226.7, as of March 30, 2024. Debt issuance costs were $1.8 and will be amortized over the term of the debt. The following table provides the future maturities related to the outstanding balance as of March 30, 2024. 2024 $ — 2025 — 2026 — January 2027 226.7 Total maturities $ 226.7 |
LONG-TERM INCENTIVE EMPLOYEE _2
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION | 3 Months Ended |
Mar. 30, 2024 | |
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. For the Three Months Ended March 30, April 1, Equity-based awards $ 7.0 $ 4.7 Liability-based awards 0.7 0.8 Total share-based compensation expense $ 7.7 $ 5.5 As of March 30, 2024, there was $45.3 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 2.3 years. Additionally, unrecognized compensation cost related to liability-based awards was $4.9, which is expected to be recognized ratably over a weighted-average period of 2.3 years. Year-to-Date 2024 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 three months ended March 30, 2024, 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) 0.1 $ 127.91 Performance stock units (PSUs) 0.1 $ 145.42 During the three months ended March 30, 2024 and April 1, 2023, a nominal amount of non-qualified stock options were exercised resulting in proceeds of $0.2 and $0.4, respectively. During the three months ended March 30, 2024 and April 1, 2023, RSUs of 0.1 and 0.1, respectively, vested and were issued. During the three months ended March 30, 2024 and April 1, 2023, PSUs of 0.1 and 0.1 that vested on December 31, 2023 and 2022, respectively, were issued. |
CAPITAL STOCK
CAPITAL STOCK | 3 Months Ended |
Mar. 30, 2024 | |
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 March 30, 2024. During three months ended April 1, 2023, the Company repurchased and retired 0.4 shares of common stock for $30.0. As of March 30, 2024, there was $78.8 of remaining authorization left under the 2019 Plan. 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. 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 months ended March 30, 2024 and April 1, 2023, the Company withheld 0.1 and 0.1 shares of common stock for $12.5 and $6.3, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 30, 2024 | |
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 Three Months Ended March 30, April 1, Environmental liability - beginning balance $ 56.0 $ 57.1 Change in estimates for pre-existing accruals 0.1 0.4 Payments (1.9) (2.0) Foreign currency — 0.1 Environmental liability - ending balance $ 54.2 $ 55.6 Environmental-related assets, including estimated recoveries from insurance providers and other third parties, were $8.3 and $13.3 as of March 30, 2024 and April 1, 2023, respectively. The following table illustrates the reasonably possible high range of estimated liability and number of active sites. As of the Period Ended March 30, December 31, High-end estimate of environmental liability $ 95.3 $ 98.2 Number of open environmental sites 26 26 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 | 3 Months Ended |
Mar. 30, 2024 | |
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 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 March 30, December 31, Notional amount (U.S. dollar equivalent) $ 94.4 $ 258.4 Fair value of foreign currency derivative contracts (a) $ 2.5 $ 3.8 (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: For the Three Months Ended March 30, April 1, Loss on foreign currency derivative contracts (b) $ (2.2) $ (1.1) (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 three months ended March 30, 2024 and April 1, 2023, net cash inflows from foreign currency derivative contracts were $1.3 and $5.5 , respectively. |
ACQUISITIONS Acquisitions (Note
ACQUISITIONS Acquisitions (Notes) | 3 Months Ended |
Mar. 30, 2024 | |
Acquisitions [Abstract] | |
Business Combination Disclosure [Text Block] | ACQUISITIONS Acquisition of Svanehøj Group A/S (Svanehøj) On January 19, 2024, we completed the acquisition of 100% of the privately held stock of Svanehøj for a purchase price of $407.6, net of cash acquired of $28.0. Svanehøj is a Denmark-based supplier of pumps and related aftermarket services with leading positions in cryogenic applications for the marine sector. Svanehøj’s results are reported within our IP segment. Svanehøj employs approximately 400 employees and has operations in Denmark, Singapore and France. The company generated approximately $148 in sales in 2023. 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 respective 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. Acquisition of Micro-Mode Products, Inc. (Micro-Mode) On May 2, 2023, we completed the acquisition of 100% of the privately held stock 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. Subsequent to the acquisition, Micro-Mode’s results are reported within our CCT segment. As of March 30, 2024, the allocation of the purchase price to the assets acquired and liabilities assumed was substantially complete related to our acquisition of Micro-Mode. The assets acquired and liabilities assumed for both our Svanehøj and Micro-Mode acquisitions were recorded at fair value and are shown in the table below. Allocation of Purchase Price Micro-Mode Svanehoj (Preliminary) Receivables $ 2.7 $ 22.6 Inventory 5.6 40.6 Plant, property and equipment 6.0 19.1 Goodwill (a) 44.6 201.9 Other intangible assets 28.7 226.0 Other assets 0.3 9.0 Accounts payable and accrued liabilities (2.3) (27.5) Other liabilities (6.3) (54.3) Contract liabilities — (29.8) Net assets acquired $ 79.3 $ 407.6 (a) Goodwill related to the acquisition of Svanehøj is primarily attributable to future economic benefits expected from our entrance into the marine sector, our expanded presence in the energy market, and geographic expansion. Goodwill arising from acquisitions is not expected to be deductible for income tax purposes. Pro forma results of operations have not been presented because the acquisitions were not deemed significant as of the acquisition date. |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 30, 2024 | |
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 January 19, 2024, we completed the acquisition of Svanehøj Group A/S (Svanehøj) for a purchase price of $407.6, net of cash acquired. Subsequent to the acquisition, Svanehøj’s results are reported within our IP segment. Refer to Note 18, Acquisitions , for more information. |
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, 2023, presented herein, has been derived from our audited balance sheet included in our Annual Report on Form 10-K ( 2023 Annual Report ) for the year ended December 31, 2023, 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 2023 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 2023 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 first quarter for 2024 and 2023 ended on March 30, 2024 and April 1, 2023, 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) | 3 Months Ended |
Mar. 30, 2024 | |
Recent Acconting Pronouncements [Abstract] | |
Recently Adopted Accounting Pronouncements | In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. This ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating the impact that this guidance will have on the disclosures within our financial statements, and will adopt this ASU for the year ending December 31, 2024. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires disclosure of specific categories in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold. The amendment also includes other changes to improve the effectiveness of income tax disclosures, including further disaggregation of income taxes paid for individually significant jurisdictions. This ASU is effective for annual periods beginning after December 15, 2024. Adoption of this ASU should be applied on a prospective basis. Early adoption is permitted. We are currently evaluating the impact that this guidance will have on the disclosures within our financial statements, and expect to adopt this ASU for the year ending December 31, 2025. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Segment Reporting [Abstract] | |
Reconciliation of Segment to Consolidated Results Table | The following table presents our revenue for each segment and reconciles our total segment revenue to total consolidated revenue. For the Three Months Ended March 30, April 1, Motion Technologies $ 392.4 $ 364.8 Industrial Process 333.9 266.5 Connect & Control Technologies 185.1 167.6 Total segment revenue 911.4 798.9 Eliminations (0.8) (1.0) Total consolidated revenue $ 910.6 $ 797.9 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table presents our operating income for each segment and reconciles our total segment operating income to income from continuing operations before income tax. For the Three Months Ended March 30, April 1, Motion Technologies $ 70.6 $ 53.4 Industrial Process 63.8 55.3 Connect & Control Technologies 32.7 29.4 Total segment operating income 167.1 138.1 Other corporate costs (17.9) (13.8) Interest and non-operating expense, net (4.4) (3.5) Income from continuing operations before income tax $ 144.8 $ 120.8 |
Segment Operating Margin | The following table presents our operating margin for each segment. Segment operating margin is calculated as segment operating income divided by segment revenue . For the Three Months Ended March 30, April 1, Motion Technologies 18.0 % 14.6 % Industrial Process 19.1 % 20.8 % Connect & Control Technologies 17.7 % 17.5 % |
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 Three Months Ended Total Assets Capital Depreciation & March 30, December 31, March 30, April 1, March 30, April 1, Motion Technologies $ 1,368.9 $ 1,366.6 $ 18.0 $ 20.2 $ 15.8 $ 15.8 Industrial Process 1,856.0 1,323.2 6.7 3.2 12.1 5.6 Connect & Control Technologies 826.7 834.6 2.7 4.8 5.1 4.7 Corporate and Other 352.1 408.2 0.3 0.5 0.6 0.6 Total $ 4,403.7 $ 3,932.6 $ 27.7 $ 28.7 $ 33.6 $ 26.7 |
REVENUE Revenue (Tables)
REVENUE Revenue (Tables) | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
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 March 30, 2024 Motion Technologies Industrial Process Connect & Control Technologies Eliminations Total Auto and rail $ 383.9 $ — $ — $ (0.1) $ 383.8 Chemical and industrial pumps — 218.9 — — 218.9 Energy — 115.0 13.4 — 128.4 Aerospace and defense 1.7 — 104.1 — 105.8 General industrial 6.8 — 67.6 (0.7) 73.7 Total $ 392.4 $ 333.9 $ 185.1 $ (0.8) $ 910.6 | For the Three Months Ended April 1, 2023 Auto and rail $ 356.0 $ — $ — $ — $ 356.0 Chemical and industrial pumps — 218.0 — — 218.0 Energy — 48.5 10.2 — 58.7 Aerospace and defense 1.9 — 86.9 — 88.8 General industrial 6.9 — 70.5 (1.0) 76.4 Total $ 364.8 $ 266.5 $ 167.6 $ (1.0) $ 797.9 |
Net Contract Assets and Liabilities Table | The following table represents our net contract assets and liabilities. As of the Period Ended March 30, December 31, Current contract assets $ 40.4 $ 25.8 Non-current contract assets 1.6 1.6 Current contract liabilities (a) (126.6) (95.9) Non-current contract liabilities (4.5) (4.5) Net contract liabilities $ (89.1) $ (73.0) (a) The increase in current contract liabilities from December 31, 2023 to March 30, 2024 is driven by the acquisition of Svanehøj. Refer to Note 18, Acquisitions , for further information. |
INCOME TAXES Income Tax Expense
INCOME TAXES Income Tax Expense (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Inome Tax Expense (Benefit) Table | The following table summarizes our income tax expense and effective tax rate. For the Three Months Ended March 30, April 1, Income tax expense $ 32.8 $ 20.1 Effective tax rate 22.7 % 16.6 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
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. For the Three Months Ended March 30, April 1, Basic weighted average common shares outstanding 82.2 82.6 Add: Dilutive impact of outstanding equity awards 0.5 0.4 Diluted weighted average common shares outstanding 82.7 83.0 Anti-dilutive shares (a) 0.2 0.2 (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) | 3 Months Ended |
Mar. 30, 2024 | |
Receivables [Abstract] | |
Receivables, Net by Type Table | The following table summarizes our receivables and associated allowance for credit losses. As of the Period Ended March 30, December 31, Trade accounts receivable $ 723.1 $ 641.3 Notes receivable 18.1 25.5 Other 25.7 22.6 Receivables, gross 766.9 689.4 Less: Allowance for credit losses (14.9) (14.2) Receivables, net $ 752.0 $ 675.2 |
Allowance for Credit Losses Rollforward Table | The following table displays a rollforward of our total allowance for credit losses. March 30, April 1, Total allowance for credit losses - January 1 $ 14.2 $ 12.2 Charges to income 1.4 1.2 Write-offs (0.6) (0.3) Foreign currency and other (0.1) — Total allowance for credit losses - ending balance $ 14.9 $ 13.1 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories, Net Table | The following table summarizes our inventories. As of the Period Ended March 30, December 31, Raw materials $ 383.2 $ 366.6 Work in process 124.0 111.8 Finished goods 102.2 97.0 Inventories $ 609.4 $ 575.4 |
OTHER CURRENT AND NON-CURRENT_3
OTHER CURRENT AND NON-CURRENT ASSETS (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
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 March 30, December 31, Advance payments and other prepaid expenses $ 62.1 $ 55.3 Current contract assets, net 40.4 25.8 Prepaid income taxes 7.6 16.9 Other 13.2 19.9 Other current assets $ 123.3 $ 117.9 Other employee benefit-related assets $ 131.7 $ 128.6 Operating lease right-of-use assets 90.4 87.4 Deferred income taxes 75.9 76.0 Equity-method and other investments 47.8 46.6 Capitalized software costs 7.1 7.9 Environmental-related assets 7.8 6.0 Other 27.3 28.5 Other non-current assets $ 388.0 $ 381.0 |
PLANT, PROPERTY AND EQUIPMENT_2
PLANT, PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
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 March 30, December 31, Machinery and equipment 2 - 10 $ 1,325.3 $ 1,317.9 Buildings and improvements 5 - 40 318.4 298.4 Furniture, fixtures and office equipment 3 - 7 81.2 83.7 Construction work in progress 74.4 78.1 Land and improvements 29.9 29.5 Other 1.9 1.7 Plant, property and equipment, gross 1,831.1 1,809.3 Less: Accumulated depreciation (1,263.0) (1,248.3) Plant, property and equipment, net $ 568.1 $ 561.0 The following table summarizes our depreciation expense. For the Three Months Ended March 30, April 1, Depreciation expense $ 22.3 $ 20.7 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
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, 2023 $ 292.3 $ 403.0 $ 321.0 $ 1,016.3 Acquired (a) — 201.9 — 201.9 Foreign exchange translation (1.4) (8.5) (0.6) (10.5) Goodwill - March 30, 2024 $ 290.9 $ 596.4 $ 320.4 $ 1,207.7 (a) Goodwill acquired is related to our acquisition of Svanehøj and represents the preliminary calculation of the excess purchase price over the net assets acquired. Refer to Note 18, Acquisitions , for further information. |
Other Intangible Assets Table | Other Intangible Assets, Net The following table summarizes our other intangible assets, net of accumulated amortization. March 30, 2024 December 31, 2023 Gross Accumulated Amortization Net Intangibles Gross Accumulated Amortization Net Intangibles Customer relationships $ 320.5 $ (141.5) $ 179.0 $ 202.4 $ (138.4) $ 64.0 Proprietary technology 121.2 (34.3) 86.9 61.5 (32.5) 29.0 Patents and other 40.0 (21.6) 18.4 22.0 (17.5) 4.5 Finite-lived intangible total 481.7 (197.4) 284.3 285.9 (188.4) 97.5 Indefinite-lived intangibles 47.9 — 47.9 19.1 — 19.1 Other intangible assets $ 529.6 $ (197.4) $ 332.2 $ 305.0 $ (188.4) $ 116.6 |
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 Svanehøj total $226.0 and consist of the following: Useful life Fair value Customer relationships 16 $ 119.0 Developed technology 17 60.0 Trade name Indefinite 29.0 Backlog 1 18.0 Total intangible assets acquired $ 226.0 Refer to Note 18, Acquisitions , for further information. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | E stimated amortization expense for each of the five succeeding years and thereafter is as follows: 2024 $ 32.3 2025 $ 28.0 2026 $ 23.3 2027 $ 21.2 2028 $ 21.2 Thereafter $ 158.3 |
ACCRUED AND OTHER CURRENT LIA_2
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
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 March 30, December 31, Compensation and other employee-related benefits $ 118.1 $ 165.5 Contract liabilities and other customer-related liabilities 165.3 133.6 Accrued income taxes and other tax-related liabilities 44.7 30.7 Operating lease liabilities 19.5 19.5 Accrued warranty costs 15.3 14.0 Environmental liabilities and other legal matters 5.6 5.8 Accrued restructuring costs 3.5 4.8 Other 43.1 39.2 Accrued and other current liabilities $ 415.1 $ 413.1 Operating lease liabilities $ 75.2 $ 72.3 Environmental liabilities 50.2 52.0 Deferred income taxes and other tax-related liabilities 62.8 25.0 Compensation and other employee-related benefits 38.2 38.0 Other 27.7 24.0 Other non-current liabilities $ 254.1 $ 211.3 |
DEBT Debt (Tables)
DEBT Debt (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Table | The following table summarizes our outstanding debt obligations. As of the Period Ended March 30, December 31, Commercial paper (a) $ 319.6 $ 184.9 Current maturities of long-term debt 2.3 2.3 Short-term loans 0.8 0.5 Total short-term borrowings 322.7 187.7 Non-current maturities of long-term debt (b) 230.5 5.7 Total debt and finance leases $ 553.2 $ 193.4 (a) The associated weighted average interest rates as of March 30, 2024 and December 31, 2023 were 5.63% and 5.61% respectively. Outstanding commercial paper for both periods had maturity terms less than three months from the date of issuance. (b) Our long-term debt is primarily related to a term loan that we entered into in January, 2024 in connection with the acquisition of Svanehøj. See additional details in section titled, “ Term Loan ”, below. |
Schedule of Maturities of Long-Term Debt | The following table provides the future maturities related to the outstanding balance as of March 30, 2024. 2024 $ — 2025 — 2026 — January 2027 226.7 Total maturities $ 226.7 |
LONG-TERM INCENTIVE EMPLOYEE _3
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Long-Term Incentive Employee Compensation Costs Table | The following table summarizes our LTIP costs. For the Three Months Ended March 30, April 1, Equity-based awards $ 7.0 $ 4.7 Liability-based awards 0.7 0.8 Total share-based compensation expense $ 7.7 $ 5.5 |
Summary of Long-Term Incentive Plan Award Grants Table | During the three months ended March 30, 2024, 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) 0.1 $ 127.91 Performance stock units (PSUs) 0.1 $ 145.42 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
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 Three Months Ended March 30, April 1, Environmental liability - beginning balance $ 56.0 $ 57.1 Change in estimates for pre-existing accruals 0.1 0.4 Payments (1.9) (2.0) Foreign currency — 0.1 Environmental liability - ending balance $ 54.2 $ 55.6 |
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 March 30, December 31, High-end estimate of environmental liability $ 95.3 $ 98.2 Number of open environmental sites 26 26 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
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 March 30, December 31, Notional amount (U.S. dollar equivalent) $ 94.4 $ 258.4 Fair value of foreign currency derivative contracts (a) $ 2.5 $ 3.8 (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: For the Three Months Ended March 30, April 1, Loss on foreign currency derivative contracts (b) $ (2.2) $ (1.1) (b) None of our derivative contracts were designated as hedging instruments under ASC 815 - Derivatives & Hedging . |
ACQUISITIONS Acquisitions (Tabl
ACQUISITIONS Acquisitions (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Acquisitions [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Allocation of Purchase Price Micro-Mode Svanehoj (Preliminary) Receivables $ 2.7 $ 22.6 Inventory 5.6 40.6 Plant, property and equipment 6.0 19.1 Goodwill (a) 44.6 201.9 Other intangible assets 28.7 226.0 Other assets 0.3 9.0 Accounts payable and accrued liabilities (2.3) (27.5) Other liabilities (6.3) (54.3) Contract liabilities — (29.8) Net assets acquired $ 79.3 $ 407.6 |
DESCRIPTION OF BUSINESS AND B_2
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 19, 2024 | Mar. 30, 2024 | Apr. 01, 2023 | |
Business Combination [Abstract] | |||
Acquisitions, net of cash acquired | $ 407.6 | $ 0 | |
Svanehoj | |||
Business Combination [Abstract] | |||
Acquisitions, net of cash acquired | $ 407.6 |
SEGMENT INFORMATION - Segment R
SEGMENT INFORMATION - Segment Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 910.6 | $ 797.9 |
Segment Results [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 911.4 | 798.9 |
Motion Technologies | ||
Segment Reporting Information [Line Items] | ||
Revenues | 392.4 | 364.8 |
Industrial Process | ||
Segment Reporting Information [Line Items] | ||
Revenues | 333.9 | 266.5 |
Connect & Control Technologies | ||
Segment Reporting Information [Line Items] | ||
Revenues | 185.1 | 167.6 |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ (0.8) | $ (1) |
SEGMENT INFORMATION - Segment O
SEGMENT INFORMATION - Segment Operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Segment Reporting Information [Line Items] | ||
Operating income | $ 149.2 | $ 124.3 |
Interest and non-operating expense, net | (4.4) | (3.5) |
Income from continuing operations before income tax | 144.8 | 120.8 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | 167.1 | 138.1 |
Motion Technologies | ||
Segment Reporting Information [Line Items] | ||
Operating income | 70.6 | 53.4 |
Industrial Process | ||
Segment Reporting Information [Line Items] | ||
Operating income | 63.8 | 55.3 |
Connect & Control Technologies | ||
Segment Reporting Information [Line Items] | ||
Operating income | 32.7 | 29.4 |
Other corporate costs | ||
Segment Reporting Information [Line Items] | ||
Operating income | $ (17.9) | $ (13.8) |
SEGMENT INFORMATION - Segment_2
SEGMENT INFORMATION - Segment Operating Margin (Details) | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Motion Technologies | ||
Segment Reporting Information [Line Items] | ||
Operating Margin | 18% | 14.60% |
Industrial Process | ||
Segment Reporting Information [Line Items] | ||
Operating Margin | 19.10% | 20.80% |
Connect & Control Technologies | ||
Segment Reporting Information [Line Items] | ||
Operating Margin | 17.70% | 17.50% |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Segment Reporting Information by Segment Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Total Assets | $ 4,403.7 | $ 3,932.6 | |
Capital Expenditures | 27.7 | $ 28.7 | |
Depreciation & Amortization | 33.6 | 26.7 | |
Motion Technologies | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 1,368.9 | 1,366.6 | |
Capital Expenditures | 18 | 20.2 | |
Depreciation & Amortization | 15.8 | 15.8 | |
Industrial Process | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 1,856 | 1,323.2 | |
Capital Expenditures | 6.7 | 3.2 | |
Depreciation & Amortization | 12.1 | 5.6 | |
Connect & Control Technologies | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 826.7 | 834.6 | |
Capital Expenditures | 2.7 | 4.8 | |
Depreciation & Amortization | 5.1 | 4.7 | |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 352.1 | $ 408.2 | |
Capital Expenditures | 0.3 | 0.5 | |
Depreciation & Amortization | $ 0.6 | $ 0.6 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) | 3 Months Ended |
Mar. 30, 2024 Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 3 |
REVENUE Revenue (Details)
REVENUE Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 910.6 | $ 797.9 |
Auto and rail | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 383.8 | 356 |
Chemical and industrial pumps | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 218.9 | 218 |
Energy | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 128.4 | 58.7 |
Aerospace and defense | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 105.8 | 88.8 |
General industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 73.7 | 76.4 |
Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (0.8) | (1) |
Eliminations | Auto and rail | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (0.1) | 0 |
Eliminations | Chemical and industrial pumps | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Eliminations | Energy | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Eliminations | Aerospace and defense | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Eliminations | General industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (0.7) | (1) |
Motion Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 392.4 | 364.8 |
Motion Technologies | Auto and rail | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 383.9 | 356 |
Motion Technologies | Chemical and industrial pumps | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Motion Technologies | Energy | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Motion Technologies | Aerospace and defense | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1.7 | 1.9 |
Motion Technologies | General industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 6.8 | 6.9 |
Industrial Process | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 333.9 | 266.5 |
Industrial Process | Auto and rail | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Industrial Process | Chemical and industrial pumps | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 218.9 | 218 |
Industrial Process | Energy | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 115 | 48.5 |
Industrial Process | Aerospace and defense | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Industrial Process | General industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Connect & Control Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 185.1 | 167.6 |
Connect & Control Technologies | Auto and rail | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Connect & Control Technologies | Chemical and industrial pumps | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Connect & Control Technologies | Energy | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 13.4 | 10.2 |
Connect & Control Technologies | Aerospace and defense | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 104.1 | 86.9 |
Connect & Control Technologies | General industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 67.6 | $ 70.5 |
REVENUE Contract Assets and Lia
REVENUE Contract Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |||
Current contract assets | $ 40.4 | $ 25.8 | |
Non-current contract assets | 1.6 | 1.6 | |
Current contract liabilities(a) | (126.6) | [1] | (95.9) |
Non-current contract liabilities | (4.5) | (4.5) | |
Net contract liabilities | $ 89.1 | $ 73 | |
[1] The increase in current contract liabilities from December 31, 2023 to March 30, 2024 is driven by the acquisition of Svanehøj. Refer to Note 18, Acquisitions |
REVENUE Revenue Textuals (Detai
REVENUE Revenue Textuals (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2024 USD ($) | |
Contract with Customer, Liability, Revenue Recognized | $ 48 |
Revenue, Remaining Performance Obligation, Amount | 1,450.1 |
Remaining Current Fiscal Year [Member] | Minimum [Member] | |
Revenue, Remaining Performance Obligation, Amount | 970 |
Remaining Current Fiscal Year [Member] | Maximum [Member] | |
Revenue, Remaining Performance Obligation, Amount | $ 990 |
INCOME TAXES Income Tax Expen_2
INCOME TAXES Income Tax Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 32.8 | $ 20.1 |
Effective tax rate | 22.70% | 16.60% |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 0.5 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Valuation Allowance [Line Items] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 0.5 | |
ITALY | ||
Valuation Allowance [Line Items] | ||
Tax Adjustments, Settlements, and Unusual Provisions | (14.1) | |
GERMANY | ||
Valuation Allowance [Line Items] | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (16.3) | |
UNITED STATES | ||
Valuation Allowance [Line Items] | ||
Tax Adjustments, Settlements, and Unusual Provisions | $ 4.9 |
EARNINGS PER SHARE DATA - Basic
EARNINGS PER SHARE DATA - Basic and Diluted Loss Per Share (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Earnings Per Share [Abstract] | ||
Weighted average common shares – basic | 82.2 | 82.6 |
Add: Dilutive impact of outstanding equity awards | 0.5 | 0.4 |
Diluted weighted average common shares outstanding | 82.7 | 83 |
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 | ||
Mar. 30, 2024 | Apr. 01, 2023 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | [1] | 0.2 | 0.2 |
[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 | Mar. 30, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable | $ 723.1 | $ 641.3 |
Notes receivable | 18.1 | 25.5 |
Other | 25.7 | 22.6 |
Receivables, gross | 766.9 | 689.4 |
Less: Allowance for credit losses | (14.9) | (14.2) |
Receivables, net | $ 752 | $ 675.2 |
RECEIVABLES, NET Allowance for
RECEIVABLES, NET Allowance for Credit Losses Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Credit Loss [Abstract] | ||
Total allowance for credit losses - January 1 | $ 14.2 | $ 12.2 |
Charges to income | 1.4 | 1.2 |
Write-offs | (0.6) | (0.3) |
Foreign currency and other | (0.1) | 0 |
Total allowance for credit losses - ending balance | $ 14.9 | $ 13.1 |
INVENTORIES, NET - Components o
INVENTORIES, NET - Components of Inventories, Net (Detail) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 383.2 | $ 366.6 |
Work in process | 124 | 111.8 |
Finished goods | 102.2 | 97 |
Inventories | $ 609.4 | $ 575.4 |
INVENTORIES, NET Textuals (Deta
INVENTORIES, NET Textuals (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2023 USD ($) | |
Inventory Disclosure [Abstract] | |
Italian Government Energy Subsidy Grant | $ 3.9 |
OTHER CURRENT AND NON-CURRENT_4
OTHER CURRENT AND NON-CURRENT ASSETS - Textuals (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2023 USD ($) | |
GERMANY | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (16.3) |
PLANT, PROPERTY AND EQUIPMENT_3
PLANT, PROPERTY AND EQUIPMENT, NET - Components of Plant, Property and Equipment, Net (Detail) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Abstract] | ||
Machinery and equipment | $ 1,325.3 | $ 1,317.9 |
Buildings and improvements | 318.4 | 298.4 |
Furniture, fixtures and office equipment | 81.2 | 83.7 |
Construction work in progress | 74.4 | 78.1 |
Land and improvements | 29.9 | 29.5 |
Other | 1.9 | 1.7 |
Plant, property and equipment, gross | 1,831.1 | 1,809.3 |
Less: Accumulated depreciation | (1,263) | (1,248.3) |
Plant, property and equipment, net | $ 568.1 | $ 561 |
PLANT, PROPERTY AND EQUIPMENT_4
PLANT, PROPERTY AND EQUIPMENT, NET (Details) - Estimated Useful Lives | Mar. 30, 2024 |
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 | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 22.3 | $ 20.7 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Changes in the Carrying Amount of Goodwill (Detail) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 USD ($) | ||
Goodwill [Roll Forward] | ||
Goodwill - December 31, 2023 | $ 1,016.3 | |
Acquired(a) | 201.9 | [1] |
Foreign exchange translation | (10.5) | |
Goodwill - March 30, 2024 | 1,207.7 | |
Motion Technologies | ||
Goodwill [Roll Forward] | ||
Goodwill - December 31, 2023 | 292.3 | |
Acquired(a) | 0 | |
Foreign exchange translation | (1.4) | |
Goodwill - March 30, 2024 | 290.9 | |
Industrial Process | ||
Goodwill [Roll Forward] | ||
Goodwill - December 31, 2023 | 403 | |
Acquired(a) | 201.9 | [1] |
Foreign exchange translation | (8.5) | |
Goodwill - March 30, 2024 | 596.4 | |
Connect & Control Technologies | ||
Goodwill [Roll Forward] | ||
Goodwill - December 31, 2023 | 321 | |
Acquired(a) | 0 | |
Foreign exchange translation | (0.6) | |
Goodwill - March 30, 2024 | $ 320.4 | |
[1] (a) Goodwill acquired is related to our acquisition of Svanehøj and represents the preliminary calculation of the excess purchase price over the net assets acquired. Refer to Note 18, Acquisitions , for further information. |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, NET Other Intangible Assets (Detail) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 |
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ||
Finite-lived intangible total | $ 481.7 | $ 285.9 |
Indefinite-lived intangibles | 47.9 | 19.1 |
Other intangible assets | 529.6 | 305 |
Accumulated Amortization | (197.4) | (188.4) |
Finite-live intangible asset, net of accumulated amortization | 284.3 | 97.5 |
Other intangible assets | 332.2 | 116.6 |
Customer relationships | ||
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ||
Customer relationships | 320.5 | 202.4 |
Accumulated Amortization | (141.5) | (138.4) |
Finite-live intangible asset, net of accumulated amortization | 179 | 64 |
Proprietary technology | ||
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ||
Proprietary technology | 121.2 | 61.5 |
Accumulated Amortization | (34.3) | (32.5) |
Finite-live intangible asset, net of accumulated amortization | 86.9 | 29 |
Patents and other | ||
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ||
Patents and other | 40 | 22 |
Accumulated Amortization | (21.6) | (17.5) |
Finite-live intangible asset, net of accumulated amortization | $ 18.4 | $ 4.5 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - ACQUISITION (Details) - Svanehoj $ in Millions | Jan. 19, 2024 USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets acquired | $ 226 |
Trade name | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Indefinite-Lived Intangible Assets Acquired | $ 29 |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 16 years |
Total intangible assets acquired | $ 119 |
Proprietary technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 17 years |
Total intangible assets acquired | $ 60 |
Backlog | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 1 year |
Total intangible assets acquired | $ 18 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS, NET Schedule of Estimated Future Intangible Amortization by Year (Details) $ in Millions | Mar. 30, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 32.3 |
2025 | 28 |
2026 | 23.3 |
2027 | 21.2 |
2028 | 21.2 |
Thereafter | $ 158.3 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS, NET Intangibles Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Jan. 19, 2024 | |
Amortization of Intangible Assets | $ 9,600 | $ 4,700 | |
Svanehoj | |||
Intangible Assets, Gross (Excluding Goodwill) | $ 226,000 |
ACCRUED AND OTHER CURRENT LIA_3
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES - (Detail) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Compensation and other employee-related benefits | $ 118.1 | $ 165.5 |
Contract liabilities and other customer-related liabilities | 165.3 | 133.6 |
Accrued income taxes and other tax-related liabilities | 44.7 | 30.7 |
Operating lease liabilities | 19.5 | 19.5 |
Accrued warranty costs | 15.3 | 14 |
Environmental liabilities and other legal matters | 5.6 | 5.8 |
Accrued restructuring costs | 3.5 | 4.8 |
Other | 43.1 | 39.2 |
Accrued and other current liabilities | 415.1 | 413.1 |
Operating lease liabilities | 75.2 | 72.3 |
Environmental liabilities | 50.2 | 52 |
Deferred income taxes and other tax-related liabilities | 62.8 | 25 |
Compensation and other employee-related benefits | 38.2 | 38 |
Other | 27.7 | 24 |
Other non-current liabilities | 254.1 | 211.3 |
Accounts Payable, Other, Current | $ 19 | $ 19.7 |
DEBT Debt (Details)
DEBT Debt (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |||
Commercial paper(a) | [1] | $ 319.6 | $ 184.9 |
Current maturities of long-term debt | 2.3 | 2.3 | |
Short-term loans | 0.8 | 0.5 | |
Total short-term borrowings | 322.7 | 187.7 | |
Non-current maturities of long-term debt(b) | [2] | 230.5 | 5.7 |
Total debt and finance leases | $ 553.2 | $ 193.4 | |
UNITED STATES | |||
Line of Credit Facility [Line Items] | |||
Weighted Average Interest Rate | 5.63% | 5.61% | |
[1]The associated weighted average interest rates as of March 30, 2024 and December 31, 2023 were 5.63% and 5.61% respectively. Outstanding commercial paper for both periods had maturity terms less than three months from the date of issuance.[2]Our long-term debt is primarily related to a term loan that we entered into in January, 2024 in connection with the acquisition of Svanehøj. See additional details in section titled, “ Term Loan ”, below. |
DEBT Short-term Loans (Details)
DEBT Short-term Loans (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2024 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% |
DEBT (Details) - Long-term Debt
DEBT (Details) - Long-term Debt - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Long-Term Debt | $ 230.5 | $ 5.7 |
Line of Credit Facility, Interest Margin Above LIBOR | 1.10% | |
Term Loan Facility, Interest Margin Above EURIBOR | 1% | |
Term Loan | ||
Debt Instrument [Line Items] | ||
2024 | $ 0 | |
2025 | 0 | |
2026 | 0 | |
January 2027 | 226.7 | |
Total maturities | 226.7 | |
Proceeds from Issuance of Debt | 301.5 | |
Debt Issuance Costs, Gross | 1.8 | |
Long-Term Debt | $ 226.7 |
LONG-TERM INCENTIVE EMPLOYEE _4
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Summary of Long-Term Incentive Plan Awards (Detail) shares in Millions | 3 Months Ended |
Mar. 30, 2024 $ / shares shares | |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards Granted | shares | 0.1 |
Grant Date Fair Value | $ / shares | $ 127.91 |
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 | $ 145.42 |
LONG-TERM INCENTIVE EMPLOYEE _5
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Proceeds from the exercise of stock options | $ 0.2 | $ 0.4 |
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 | $ 45.3 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 3 months 18 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 | $ 4.9 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 3 months 18 days | |
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 | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Loss Contingency Accrual [Roll Forward] | ||
Environmental liability - beginning balance | $ 56 | $ 57.1 |
Payments | (1.9) | (2) |
Foreign currency | 0 | 0.1 |
Environmental liability - ending balance | 54.2 | 55.6 |
Continuing operations | ||
Loss Contingency Accrual [Roll Forward] | ||
Change in estimates for pre-existing accruals | $ 0.1 | $ 0.4 |
COMMITMENTS AND CONTINGENCIES E
COMMITMENTS AND CONTINGENCIES Environmental Matters Textuals (Details) $ in Millions | Mar. 30, 2024 USD ($) site | Apr. 01, 2023 USD ($) site |
Site Contingency [Line Items] | ||
Environmental-related assets | $ 8.3 | $ 13.3 |
Environmental Related Matters [Member] | ||
Site Contingency [Line Items] | ||
Number Of Active Environmental Investigation And Remediation Sites | site | 26 | 26 |
Maximum [Member] | Environmental Related Matters [Member] | ||
Site Contingency [Line Items] | ||
Loss Contingency, Range of Possible Loss, Maximum | $ 95.3 | $ 98.2 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 31, 2023 | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Notional amount (U.S. dollar equivalent) | $ 94.4 | $ 258.4 | ||
Fair value of foreign currency derivative contracts(a) | [1] | 2.5 | $ 3.8 | |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | [2] | (2.2) | $ (1.1) | |
Cash inflow (outflow) from settlement of foreign currency derivative contracts | $ 1.3 | $ 5.5 | ||
[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 | Mar. 30, 2024 | Jan. 19, 2024 | Dec. 31, 2023 | May 02, 2023 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,207.7 | $ 1,016.3 | |||
Micro-Mode | |||||
Business Acquisition [Line Items] | |||||
Receivables | $ 2.7 | ||||
Inventory | 5.6 | ||||
Plant, property and equipment | 6 | ||||
Goodwill | [1] | 44.6 | |||
Other intangible assets | 28.7 | ||||
Other assets | 0.3 | ||||
Accounts payable and accrued liabilities | (2.3) | ||||
Other liabilities | (6.3) | ||||
Net assets acquired | $ 79.3 | ||||
Svanehoj | |||||
Business Acquisition [Line Items] | |||||
Receivables | $ 22.6 | ||||
Inventory | 40.6 | ||||
Plant, property and equipment | 19.1 | ||||
Goodwill | [1] | 201.9 | |||
Other intangible assets | 226 | ||||
Other assets | 9 | ||||
Accounts payable and accrued liabilities | (27.5) | ||||
Other liabilities | (54.3) | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | $ 29.8 | ||||
[1]Goodwill related to the acquisition of Svanehøj is primarily attributable to future economic benefits expected from our entrance into the marine sector, our expanded presence in the energy market, and geographic expansion. Goodwill arising from acquisitions is not expected to be deductible for income tax purposes. |
ACQUISITIONS Acquisitions Textu
ACQUISITIONS Acquisitions Textuals (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 19, 2024 | Mar. 30, 2024 | Apr. 01, 2023 | |
Business Acquisition [Line Items] | |||
Acquisitions, net of cash acquired | $ 407.6 | $ 0 | |
Svanehoj | |||
Business Acquisition [Line Items] | |||
Acquisitions, net of cash acquired | $ 407.6 | ||
Revenue of Acquired Entity for Last Annual Period | $ 148 | ||
Cash Acquired in Excess of Payments to Acquire Business | $ 28 |