Document_and_Entity_Informatio
Document and Entity Information (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Apr. 14, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | DOVER Corp | ||
Entity Central Index Key | 29905 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $15,139,169,562 | ||
Entity Common Stock, Shares Outstanding | 160,382,513 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | Q1 | ||
Document Type | 10-Q | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Mar-15 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Revenue | $1,715,501 | $1,802,570 |
Cost of goods and services | 1,088,342 | 1,094,710 |
Gross profit | 627,159 | 707,860 |
Selling and administrative expenses | 434,634 | 433,404 |
Operating earnings | 192,525 | 274,456 |
Interest expense, net | 32,037 | 32,655 |
Other (income) expense, net | -4,187 | 191 |
Earnings before provision for income taxes and discontinued operations | 164,675 | 241,610 |
Provision for income taxes | 47,485 | 71,569 |
Earnings from continuing operations | 117,190 | 170,041 |
Earnings (loss) from discontinued operations, net | 92,320 | -9,903 |
Net earnings | $209,510 | $160,138 |
Earnings per share from continuing operations [Abstract] | ||
Earnings from continuing operations (in dollars per basic share) | $0.72 | $1 |
Earnings from continuing operations (in dollars per diluted share) | $0.72 | $0.99 |
Earnings per share from discontinued operations: [Abstract] | ||
Earnings (loss) from discontinued operations, net (in dollars per basic share) | $0.57 | ($0.06) |
Earnings (loss) from discontinued operations, net (in dollars per diluted share) | $0.57 | ($0.06) |
Net earnings per share: [Abstract] | ||
Net earnings (in dollars per basic share) | $1.30 | $0.94 |
Net earnings (in dollars per diluted share) | $1.28 | $0.93 |
Dividends paid per common share (in dollars per share) | $0.40 | $0.38 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS (unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $209,510 | $160,138 |
Foreign currency translation adjustments [Abstract] | ||
Foreign currency translation gains (losses) during period | -83,829 | -17,373 |
Reclassification of foreign currency translation losses to earnings upon sale of subsidiaries | -280 | 0 |
Total foreign currency translation, net of tax | -84,109 | -17,373 |
Pension and other postretirement benefit plans [Abstract] | ||
Amortization of actuarial losses included in net periodic pension cost | 2,598 | 1,442 |
Amortization of prior service cost included in net periodic pension cost | 1,228 | 1,392 |
Total pension and other postretirement benefit plans, net of tax | 3,826 | 2,834 |
Changes in fair value of cash flow hedges [Abstract] | ||
Unrealized net (losses) gains arising during period | 1,158 | -474 |
Net (gains) losses reclassified into earnings | -99 | -139 |
Total cash flow hedges, net of tax | 1,059 | -613 |
Other comprehensive earnings (loss) other adjustment, net of tax | 214 | -126 |
Other comprehensive earnings (loss), net of tax | -79,010 | -15,278 |
Comprehensive earnings | $130,500 | $144,860 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $538,486 | $681,581 |
Receivables, net of allowances | 1,133,213 | 1,186,746 |
Inventories, net | 861,952 | 863,737 |
Prepaid and other current assets | 72,222 | 101,482 |
Deferred tax assets | 65,678 | 63,276 |
Total current assets | 2,671,551 | 2,896,822 |
Property, plant and equipment, net | 821,736 | 837,069 |
Goodwill | 3,464,041 | 3,491,557 |
Intangible assets, net | 1,309,135 | 1,369,520 |
Other assets and deferred charges | 164,813 | 168,246 |
Assets of discontinued operations | 215,429 | 327,171 |
Total assets | 8,646,705 | 9,090,385 |
Current liabilities: | ||
Notes payable and current maturities of long-term debt | 625,502 | 777,956 |
Accounts payable | 584,100 | 615,332 |
Accrued compensation and employee benefits | 189,174 | 272,822 |
Accrued insurance | 97,318 | 95,896 |
Other accrued expenses | 253,462 | 266,277 |
Federal and other taxes on income | 32,498 | 11,071 |
Total current liabilities | 1,782,054 | 2,039,354 |
Long-term debt | 2,217,874 | 2,253,041 |
Deferred income taxes | 578,438 | 564,207 |
Other liabilities | 452,518 | 482,340 |
Liabilities of discontinued operations | 36,711 | 50,718 |
Stockholders' Equity: | ||
Total stockholders' equity | 3,579,110 | 3,700,725 |
Total liabilities and stockholders' equity | $8,646,705 | $9,090,385 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Allowance for doubtful accounts receivable | $18,116 | $18,894 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (unaudited) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Earnings (Loss) [Member] | Treasury Stock [Member] |
In Thousands | ||||||
Balance at Dec. 31, 2014 | $3,700,725 | $255,893 | $900,833 | $7,074,782 | ($158,931) | ($4,371,852) |
Net earnings | 209,510 | 0 | 0 | 209,510 | 0 | 0 |
Dividends paid | -64,442 | 0 | 0 | -64,442 | 0 | 0 |
Common stock issued for the exercise of stock options and SARs | -903 | 116 | -1,019 | 0 | 0 | 0 |
Tax benefit from the exercise of stock options | -102 | 0 | -102 | 0 | 0 | 0 |
Stock-based compensation expense | 13,387 | 0 | 13,387 | 0 | 0 | 0 |
Common stock acquired | -200,055 | 0 | 0 | 0 | 0 | -200,055 |
Other comprehensive earnings (loss), net of tax | -79,010 | 0 | 0 | 0 | -79,010 | 0 |
Balance at Mar. 31, 2015 | $3,579,110 | $256,009 | $913,099 | $7,219,850 | ($237,941) | ($4,571,907) |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Stockholders' Equity [Abstract] | ||
Preferred stock, par value per share | $100 | $100 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value per share | $1 | $1 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Activities of Continuing Operations | ||
Net earnings | $209,510 | $160,138 |
Adjustments to reconcile net earnings to cash from operating activities: | ||
Loss (earnings) from discontinued operations, net | -92,320 | 9,903 |
Depreciation and amortization | 80,182 | 75,873 |
Stock-based compensation | 13,387 | 8,501 |
Cash effect of changes in current assets and liabilities (excluding effects of acquisitions, dispositions and foreign exchange): | ||
Accounts receivable | 27,737 | -101,608 |
Inventories | -18,861 | -48,222 |
Prepaid expenses and other assets | -2,297 | -8,847 |
Accounts payable | -18,876 | 40,999 |
Accrued compensation and employee benefits | -98,493 | -95,814 |
Accrued expenses and other liabilities | -14,198 | -9,929 |
Accrued and deferred taxes, net | 55,843 | 7,594 |
Other, net | -10,282 | -10,227 |
Net cash provided by operating activities of continuing operations | 131,332 | 28,361 |
Investing Activities of Continuing Operations | ||
Additions to property, plant and equipment | -27,956 | -32,695 |
Acquisitions (net of cash and cash equivalents acquired) | -6,500 | -109,870 |
Proceeds from the sale of property, plant and equipment | 6,041 | 1,198 |
Proceeds from the sale of businesses | 185,000 | 0 |
Other | 0 | -4,236 |
Net cash provided by (used in) investing activities of continuing operations | 156,585 | -145,603 |
Financing Activities of Continuing Operations | ||
Cash received from Knowles Corporation, net of cash distributed | 0 | 359,197 |
Purchase of common stock | -200,055 | -292,565 |
Net proceeds from exercise of stock options and SARs, including tax benefits | 2,786 | 4,152 |
Payments to settle employee tax obligations on exercise of share-based awards | -2,361 | -6,326 |
Dividends paid to stockholders | -64,442 | -63,985 |
Change in notes payable, net | -152,500 | -152,200 |
Reduction of long-term debt | -31 | -47 |
Net cash used in financing activities | -416,603 | -151,774 |
Cash Flows from Discontinued Operations | ||
Net cash provided by (used in) operating activities of discontinued operations | 2,717 | -31,363 |
Net cash provided by (used in) investing activities of discontinued operations | 800 | -13,773 |
Net cash provided by (used in) discontinued operations | 3,517 | -45,136 |
Effect of exchange rate changes on cash and cash equivalents | -17,926 | -3,691 |
Net decrease in cash and cash equivalents | -143,095 | -317,843 |
Cash and cash equivalents at beginning of period | 681,581 | 803,882 |
Cash and cash equivalents at end of period | $538,486 | $486,039 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements, in accordance with Securities and Exchange Commission (“SEC”) rules for interim periods, do not include all of the information and notes for complete financial statements as required by accounting principles generally accepted in the United States of America. As such, the accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Dover Corporation (“Dover” or the “Company”) Annual Report on Form 10-K for the year ended December 31, 2014, which provides a more complete understanding of the Company’s accounting policies, financial position, operating results, business, properties, and other matters. The year-end condensed consolidated balance sheet was derived from audited financial statements. Certain amounts in the prior year have been reclassified to conform to the current year presentation. | |
As discussed in Note 4 Discontinued Operations, the Company reclassified two businesses within the Engineered Systems segment to discontinued operations in the fourth quarter of 2014 based on its intention to divest these businesses. Therefore, the Company has classified the results of operations, cash flows, and related assets and liabilities for these businesses to discontinued operations for all periods presented. | |
It is the opinion of management that these financial statements reflect all adjustments necessary for a fair statement of the interim results. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year. |
Spin_Off_of_Knowles
Spin Off of Knowles | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Spin Off [Abstract] | ||||
Spin-Off of Knowles Corporation [Text Block] | 2. 2014 Spin-off of Knowles Corporation ("Knowles") | |||
On February 28, 2014, Dover completed the distribution of Knowles to its stockholders. The transaction was completed through the pro rata distribution of 100% of the common stock of Knowles to Dover's shareholders of record as of the close of business on February 19, 2014. Each Dover shareholder received one share of Knowles common stock for every two shares of Dover common stock held as of the record date. | ||||
The following is a summary of the assets and liabilities distributed to Knowles as part of the separation on February 28, 2014: | ||||
Assets: | ||||
Cash and cash equivalents | $ | 40,045 | ||
Other current assets | 340,945 | |||
Non-current assets | 1,678,820 | |||
$ | 2,059,810 | |||
Liabilities: | ||||
Current liabilities | $ | 252,673 | ||
Non-current liabilities | 383,940 | |||
$ | 636,613 | |||
Net assets distributed to Knowles Corporation | $ | 1,423,197 | ||
Knowles incurred $100,000 of borrowings under its revolving credit facility and $300,000 of borrowings under its term loan facility to finance a cash payment of $400,000 to Dover immediately prior to the distribution. Dover received total net cash of $359,955 | ||||
upon separation, of which $359,197 was received in the first quarter of 2014, which reflects cash held by Knowles on the distribution date and retained by it in connection with its separation from Dover. Dover utilized the net proceeds from Knowles to pay down commercial paper and to repurchase shares of its common stock in the first quarter of 2014. | ||||
In addition to the net assets reflected above, the Company also allocated approximately $26,695 of accumulated other comprehensive earnings to Knowles, relating primarily to foreign currency translation gains, offset by unrecognized losses on pension obligations. Also, the Company was required to reallocate a portion of its goodwill from continuing operations to a reporting unit included in the Knowles distribution. | ||||
The historical results of Knowles, including the results of operations, cash flows, and related assets and liabilities have been reclassified to discontinued operations for all periods presented herein. See Note 4 Discontinued Operations. |
Acquisitions
Acquisitions | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Business Combinations [Abstract] | ||||||||
Acquisitions | 3. Acquisitions | |||||||
During the three months ended March 31, 2015 the Company acquired a product line in the Refrigeration & Food Equipment segment for a net cash consideration of $6,500. The Company assigned $1,932 to goodwill, $2,500 to customer intangibles, and $300 to other intangibles. Useful lives for customer and other intangibles were 7 years and 3 years, respectively. The goodwill identified by this acquisition reflects the benefits expected to be derived from product line expansion and operational synergies. Upon consummation of the acquisition, this business is now wholly-owned by Dover. | ||||||||
The Company has substantially completed the purchase price allocations for the 2015 acquisition. However, if additional information is obtained about these assets and liabilities within the measurement period (not to exceed one year from the date of acquisition), including through asset appraisals and learning more about the newly acquired business, the Company will refine its estimates of fair value to allocate the purchase price more accurately; any such revisions are not expected to be significant. | ||||||||
The unaudited condensed consolidated statements of earnings include the results of this business from the date of acquisition. | ||||||||
Pro Forma Information | ||||||||
The following unaudited pro forma information illustrates the impact of both 2015 and 2014 acquisitions on the Company’s revenue and earnings from continuing operations for the three months ended March 31, 2015 and 2014. In 2014, the Company acquired Heidelberg CSAT GmbH, MS Printing Solutions, Timberline Manufacturing Company, WellMark Holdings, Inc., SweatMiser, and Liquip International for total consideration of $366,532, and Accelerated Companies for consideration of $435,722. | ||||||||
The 2015 and 2014 pro forma information assumes that the 2015 and 2014 acquisitions had taken place at the beginning of the prior year. Pro forma earnings are also adjusted to reflect the comparable impact of additional depreciation and amortization expense (net of tax) resulting from the fair value measurement of tangible and intangible assets relating to 2015 and 2014 acquisitions. | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Revenue from continuing operations: | ||||||||
As reported | $ | 1,715,501 | $ | 1,802,570 | ||||
Pro forma | 1,716,008 | 1,891,612 | ||||||
Earnings from continuing operations: | ||||||||
As reported | $ | 117,190 | $ | 170,041 | ||||
Pro forma (1) | 123,313 | 176,221 | ||||||
Basic earnings per share from continuing operations: | ||||||||
As reported | $ | 0.72 | $ | 1 | ||||
Pro forma (1) | 0.76 | 1.04 | ||||||
Diluted earnings per share from continuing operations: | ||||||||
As reported | $ | 0.72 | $ | 0.99 | ||||
Pro forma (1) | 0.76 | 1.02 | ||||||
-1 | For pro forma presentation purposes, the 2015 pro forma earnings amount excludes certain one-time adjustments made in 2015 for 2014 acquisitions, since as noted above, the pro forma information assumes that the 2014 acquisitions had taken place at the beginning of 2013. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Discontinued Operations | 4. Discontinued Operations | |||||||
The results of discontinued operations for the three months ended March 31, 2015 and March 31, 2014 reflect the net earnings of certain businesses held for sale, including Datamax O'Neil and Sargent Aerospace, two businesses with the Engineered Systems segment which were reclassified to discontinued operations in the fourth quarter of 2014. The results for the three months ended March 31, 2014 also include the historical results of Knowles prior to its distribution on February 28, 2014. Costs incurred by Dover to complete the spin-off of Knowles totaled $25,760 for the three months ended March 31, 2014, which are also reflected in the results of discontinued operations. See also Note 2 2014 Spin-off of Knowles Corporation. | ||||||||
On March 2, 2015, the Company completed the sale of Datamax O'Neil for total proceeds of $185,000. This sale resulted in a net gain on sale of $87,354. The Company expects to complete the sale of Sargent Aerospace in the second quarter of 2015. | ||||||||
Summarized results of the Company’s discontinued operations are as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Revenue | $ | 64,495 | $ | 283,680 | ||||
Gain on sale, net of tax | 87,354 | — | ||||||
Earnings (loss) from operations before taxes | 8,980 | (7,842 | ) | |||||
Provision for income taxes | (4,014 | ) | (2,061 | ) | ||||
Earnings (loss) from operations, net of tax | 4,966 | (9,903 | ) | |||||
Earnings (loss) from discontinued operations, net of tax | $ | 92,320 | $ | (9,903 | ) | |||
Assets and liabilities of discontinued operations are summarized below: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Assets of Discontinued Operations: | ||||||||
Accounts receivable | $ | 28,178 | $ | 46,691 | ||||
Inventories, net | 43,624 | 58,401 | ||||||
Prepaid and other current assets | 4,971 | 8,571 | ||||||
Total current assets | 76,773 | 113,663 | ||||||
Property, plant and equipment, net | 27,744 | 31,573 | ||||||
Goodwill and intangible assets, net | 110,912 | 181,798 | ||||||
Other assets and deferred charges | — | 137 | ||||||
Total assets | $ | 215,429 | $ | 327,171 | ||||
Liabilities of Discontinued Operations: | ||||||||
Accounts payable | $ | 15,505 | $ | 21,199 | ||||
Other current liabilities | 6,111 | 17,675 | ||||||
Total current liabilities | 21,616 | 38,874 | ||||||
Deferred income taxes | 14,870 | 8,752 | ||||||
Other liabilities | 225 | 3,092 | ||||||
Total liabilities | $ | 36,711 | $ | 50,718 | ||||
At March 31, 2015, the assets and liabilities of discontinued operations primarily relate to Sargent Aerospace, which was held for sale on that date. At December 31, 2014, the assets and liabilities of discontinued operations relate to Sargent Aerospace and Datamax O'Neil, which was sold in the first quarter of 2015. |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory, Net [Abstract] | ||||||||
Inventory Disclosure | 5. Inventories, net | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Raw materials | $ | 346,979 | $ | 352,016 | ||||
Work in progress | 154,759 | 147,715 | ||||||
Finished goods | 483,924 | 483,912 | ||||||
Subtotal | 985,662 | 983,643 | ||||||
Less reserves | (123,710 | ) | (119,906 | ) | ||||
Total | $ | 861,952 | $ | 863,737 | ||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment Disclosure | 6. Property, Plant and Equipment, net | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Land | $ | 53,115 | $ | 55,076 | ||||
Buildings and improvements | 532,303 | 537,474 | ||||||
Machinery, equipment and other | 1,694,208 | 1,698,638 | ||||||
2,279,626 | 2,291,188 | |||||||
Less accumulated depreciation | (1,457,890 | ) | (1,454,119 | ) | ||||
Total | $ | 821,736 | $ | 837,069 | ||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Goodwill and Other Intangible Assets | 7. Goodwill and Other Intangible Assets | |||||||||||||||||||
The following table provides the changes in carrying value of goodwill by segment for the three months ended March 31, 2015: | ||||||||||||||||||||
Energy | Engineered Systems | Fluids | Refrigeration & Food Equipment | Total | ||||||||||||||||
Balance at December 31, 2014 | $ | 1,048,735 | $ | 1,270,178 | $ | 609,663 | $ | 562,981 | $ | 3,491,557 | ||||||||||
Acquisitions | — | — | — | 1,932 | 1,932 | |||||||||||||||
Purchase price adjustments | 7,390 | — | — | — | 7,390 | |||||||||||||||
Foreign currency translation and other | (5,259 | ) | (14,124 | ) | (14,584 | ) | (2,871 | ) | (36,838 | ) | ||||||||||
Balance at March 31, 2015 | $ | 1,050,866 | $ | 1,256,054 | $ | 595,079 | $ | 562,042 | $ | 3,464,041 | ||||||||||
During the three months ended March 31, 2015, the Company recorded adjustments totaling $7,390 to goodwill relating to the finalization of the purchase price allocation to assets acquired and liabilities assumed for the 2014 acquisition of Accelerated Companies. The Company will continue to refine its estimates of fair value to allocate the purchase price more accurately; however, any such revisions are not expected to be significant. | ||||||||||||||||||||
Accounting Standards Codification ("ASC") 350, “Intangibles - Goodwill and Other Intangibles” provides guidance on an entity's subsequent measurement and recognition of goodwill and other intangibles, including required impairment testing. Dover performs its annual impairment testing in the fourth quarter; however, it is required to regularly assess whether a triggering event has occurred which would require interim impairment testing. It has considered the economic environments in which its businesses operate, particularly the Energy segment due to the recent weakening of the oil and gas markets. The Company has determined that no triggering event has occurred which would require impairment testing at this time. Dover will continue to assess the economic environment throughout the year to determine whether a triggering event has occurred, thus requiring impairment testing. | ||||||||||||||||||||
The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset: | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||||
Trademarks | $ | 136,706 | $ | 36,572 | $ | 138,650 | $ | 34,097 | ||||||||||||
Patents | 148,411 | 109,239 | 150,404 | 108,484 | ||||||||||||||||
Customer Intangibles | 1,410,468 | 510,376 | 1,429,906 | 484,449 | ||||||||||||||||
Unpatented Technologies | 90,897 | 48,160 | 92,480 | 45,812 | ||||||||||||||||
Drawings & Manuals | 34,584 | 13,416 | 36,377 | 13,087 | ||||||||||||||||
Distributor Relationships | 64,614 | 35,185 | 64,614 | 34,377 | ||||||||||||||||
Other | 24,293 | 13,559 | 24,214 | 12,737 | ||||||||||||||||
Total | 1,909,973 | 766,507 | 1,936,645 | 733,043 | ||||||||||||||||
Unamortized intangible assets: | ||||||||||||||||||||
Trademarks | 165,669 | 165,918 | ||||||||||||||||||
Total intangible assets, net | $ | 1,309,135 | $ | 1,369,520 | ||||||||||||||||
Amortization expense totaled $39,974 and $38,587 for the three months ended March 31, 2015 and 2014, respectively. |
Restructuring_Activities
Restructuring Activities | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Restructuring [Abstract] | ||||||||||||
Restructuring and Related Activities Disclosure | 8. Restructuring Activities | |||||||||||
The following table details restructuring charges incurred by segment for the periods presented: | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Energy | $ | 17,822 | $ | 71 | ||||||||
Engineered Systems | 4,355 | 1,785 | ||||||||||
Fluids | 2,097 | 905 | ||||||||||
Refrigeration & Food Equipment | (282 | ) | — | |||||||||
Corporate | 111 | 509 | ||||||||||
Total | $ | 24,103 | $ | 3,270 | ||||||||
These amounts are classified in the unaudited Condensed Consolidated Statements of Earnings as follows: | ||||||||||||
Cost of goods and services | $ | 7,454 | $ | 543 | ||||||||
Selling and administrative expenses | 16,649 | 2,727 | ||||||||||
Total | $ | 24,103 | $ | 3,270 | ||||||||
The restructuring expenses of $24,103 incurred in the three months ended March 31, 2015 related to restructuring programs initiated during 2015 and 2014. These programs are designed to better align the Company's operations with current market conditions through targeted facility consolidations, headcount reductions and other measures to further optimize operations. The Company currently expects full year 2015 restructuring expenses of approximately $36.0 million to $43.0 million, inclusive of first quarter actions, principally within the Energy segment. The Company expects the programs currently underway to be substantially completed in the next twelve to eighteen months. | ||||||||||||
The $24,103 of restructuring charges incurred during the first quarter of 2015 included the following items: | ||||||||||||
• | The Energy segment incurred restructuring charges of $17,822 related to various programs across the segment focused on workforce reductions and facility consolidations. These programs were initiated to better align cost base with the anticipated demand environment in 2015. | |||||||||||
• | The Engineered Systems segment recorded $4,355 of restructuring charges relating to headcount reductions across various businesses, well as actions taken to optimize costs related to administrative functions within the Printing & Identification platform. | |||||||||||
• | The Fluids segment recorded $2,097 of restructuring charges principally related to headcount reductions at various businesses across the segment. | |||||||||||
• | The Refrigeration & Food Equipment segment recorded reversals of certain prior year restructuring reserves of $282, primarily related to the fourth quarter 2014 closure of a European-based facility within Refrigeration, as the related costs were lower than anticipated. | |||||||||||
The following table details the Company’s severance and other restructuring accrual activity: | ||||||||||||
Severance | Exit | Total | ||||||||||
Balance at December 31, 2014 | $ | 15,358 | $ | 6,663 | $ | 22,021 | ||||||
Restructuring charges | 13,354 | 10,749 | 24,103 | |||||||||
Payments | (17,947 | ) | (4,540 | ) | (22,487 | ) | ||||||
Other, including foreign currency | (532 | ) | (4,465 | ) | (4,997 | ) | ||||||
Balance at March 31, 2015 | $ | 10,233 | $ | 8,407 | $ | 18,640 | ||||||
The accrual balance at March 31, 2015 primarily reflects restructuring plans initiated during the year, as well as ongoing lease commitment obligations for facilities closed in earlier periods. |
Borrowings
Borrowings | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Borrowings | 9. Borrowings | |||||||
Borrowings consist of the following: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Short-term | ||||||||
Current portion of long-term debt | $ | 300,002 | $ | 299,956 | ||||
Commercial paper | 325,500 | 478,000 | ||||||
$ | 625,502 | $ | 777,956 | |||||
March 31, 2015 | December 31, 2014 | |||||||
Long-term | ||||||||
4.875% 10-year notes due October 15, 2015 | $ | 299,885 | $ | 299,836 | ||||
5.45% 10-year notes due March 15, 2018 | 349,010 | 348,928 | ||||||
2.125% 7-year notes due December 1, 2020 (Euro-denominated) | 328,632 | 363,970 | ||||||
4.30% 10-year notes due March 1, 2021 | 449,846 | 449,839 | ||||||
6.65% 30-year debentures due June 1, 2028 | 199,526 | 199,517 | ||||||
5.375% 30-year debentures due October 15, 2035 | 296,725 | 296,685 | ||||||
6.60% 30-year notes due March 15, 2038 | 247,970 | 247,948 | ||||||
5.375% 30-year notes due March 1, 2041 | 345,870 | 345,830 | ||||||
Other | 412 | 444 | ||||||
Total long-term debt | 2,517,876 | 2,552,997 | ||||||
Less current installments | (300,002 | ) | (299,956 | ) | ||||
$ | 2,217,874 | $ | 2,253,041 | |||||
The Company maintains a $1.0 billion unsecured revolving credit facility that expires on November 10, 2016. The Company primarily uses this facility as liquidity back-up for its commercial paper program and has not drawn down any loans under the $1.0 billion facility and does not anticipate doing so. The Company generally uses commercial paper borrowings for general corporate purposes, funding of acquisitions and the repurchases of its common stock. Under the credit facility, the Company is required to maintain an interest coverage ratio of EBITDA to consolidated net interest expense of not less than 3.0 to 1. The Company was in compliance with this covenant and its other long-term debt covenants at March 31, 2015, and it expects to remain in compliance with all of its debt covenants. | ||||||||
Interest expense and interest income for the three months ended March 31, 2015 and 2014 were as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Interest expense | $ | 33,005 | $ | 33,691 | ||||
Interest income | (968 | ) | (1,036 | ) | ||||
Interest expense, net | $ | 32,037 | $ | 32,655 | ||||
Letters of Credit | ||||||||
As of March 31, 2015, the Company had approximately $136,114 outstanding in letters of credit and guarantees with financial institutions, which expire at various dates in the last quarter of 2015 through 2023. These letters of credit are primarily maintained as security for insurance, warranty, and other performance obligations. |
Financial_Instruments
Financial Instruments | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure | 10. Financial Instruments | |||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||
The Company is exposed to market risk for changes in foreign currency exchange rates due to the global nature of its operations and certain commodity risks. In order to manage these risks the Company has hedged portions of its forecasted sales and purchases that occur within the next twelve months and are denominated in non-functional currencies, with currency forward or collar contracts designated as cash flow hedges. At March 31, 2015 and December 31, 2014, the Company had contracts with U.S. dollar equivalent notional amounts of $51,759 and $47,047, respectively, to exchange foreign currencies, principally the U.S. dollar, Chinese Yuan, Euro, and pound sterling. The Company believes it is probable that all forecasted cash flow transactions will occur. | ||||||||||||||||||||||||
In addition, the Company had outstanding contracts with a total notional amount of $67,350 and $52,392 at March 31, 2015 and December 31, 2014, respectively, that are not designated as hedging instruments. These instruments are used to reduce the Company's exposure for operating receivables and payables that are denominated in non-functional currencies. | ||||||||||||||||||||||||
The Company also has an outstanding floating-to-floating cross currency swap agreement for a total notional amount of $50,000 in exchange for CHF 65,100, which expires on October 15, 2015. This transaction continues to hedge a portion of the Company’s net investment in CHF-denominated operations. The agreement qualifies as a net investment hedge and the effective portion of the change in fair value is reported within the cumulative translation adjustment section of other comprehensive income. The fair values at March 31, 2015 and December 31, 2014 reflected losses of $16,900 and $15,567, respectively, due to the strengthening of the Swiss franc relative to the U.S. dollar over the term of the arrangement. The Company intends to settle this hedge upon maturity in 2015. | ||||||||||||||||||||||||
The following table sets forth the fair values of derivative instruments held by the Company as of March 31, 2015 and December 31, 2014 and the balance sheet lines in which they are recorded: | ||||||||||||||||||||||||
Fair Value Asset (Liability) | ||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | Balance Sheet Caption | ||||||||||||||||||||||
Foreign currency forward / collar contracts | $ | 1,995 | $ | 973 | Prepaid / Other assets | |||||||||||||||||||
Foreign currency forward / collar contracts | (506 | ) | (810 | ) | Other accrued expenses | |||||||||||||||||||
Net investment hedge - cross currency swap | (16,900 | ) | (15,567 | ) | Accrued expenses | |||||||||||||||||||
The amount of gains or losses from hedging activity recorded in earnings is not significant, and the amount of unrealized gains and losses from cash flow hedges that are expected to be reclassified to earnings in the next twelve months is not significant; therefore, additional tabular disclosures are not presented. There are no amounts excluded from the assessment of hedge effectiveness, and the Company's derivative instruments that are subject to credit risk contingent features were not significant. | ||||||||||||||||||||||||
The Company is exposed to credit loss in the event of nonperformance by counterparties to the financial instrument contracts held by the Company; however, nonperformance by these counterparties is considered unlikely as the Company’s policy is to contract with highly-rated, diversified counterparties. | ||||||||||||||||||||||||
Additionally, the Company has designated the €300.0 million of Euro-denominated notes issued December 4, 2013 as a hedge of a portion of the its net investment in Euro-denominated operations. Due to the high degree of effectiveness between the hedging instruments and the exposure being hedged, fluctuations in the value of the Euro-denominated debt due to exchange rate changes are offset by changes in the net investment. Accordingly, changes in the value of the Euro-denominated debt are recognized in the cumulative translation adjustment section of other comprehensive income to offset changes in the value of the net investment in Euro-denominated operations. | ||||||||||||||||||||||||
Amounts recognized in other comprehensive earnings (loss) for the gains (losses) on its net investment hedges were as follows: | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Gain (loss) on Euro-denominated debt | $ | 35,350 | $ | (2,904 | ) | |||||||||||||||||||
Loss on Swiss franc cross-currency swap | (1,333 | ) | (332 | ) | ||||||||||||||||||||
Total gain (loss) on net investment hedges before tax | 34,017 | (3,236 | ) | |||||||||||||||||||||
Tax (expense) benefit | (11,906 | ) | 1,133 | |||||||||||||||||||||
Net gain (loss) on net investment hedges, net of tax | $ | 22,111 | $ | (2,103 | ) | |||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||
ASC 820, “Fair Value Measurements and Disclosures,” establishes a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value. | ||||||||||||||||||||||||
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||||||||||||||||||||||
Level 2 inputs include inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of assets or liabilities. | ||||||||||||||||||||||||
Level 3 inputs are unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | ||||||||||||||||||||||||
The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Foreign currency cash flow hedges | $ | — | $ | 1,995 | $ | — | $ | — | $ | 973 | $ | — | ||||||||||||
Liabilities: | ||||||||||||||||||||||||
Foreign currency cash flow hedges | — | 506 | — | — | 810 | — | ||||||||||||||||||
Net investment hedge derivative | — | 16,900 | — | — | 15,567 | — | ||||||||||||||||||
In addition to fair value disclosure requirements related to financial instruments carried at fair value, accounting standards require interim disclosures regarding the fair value of all of the Company’s financial instruments. | ||||||||||||||||||||||||
The estimated fair value of long-term debt at March 31, 2015 and December 31, 2014 was $3,000,809 and $3,002,701, respectively, compared to the carrying value of $2,517,876 and $2,552,997, respectively. The estimated fair value of long-term debt is based on quoted market prices for similar instruments and is, therefore, classified as Level 2 within the valuation hierarchy. | ||||||||||||||||||||||||
The carrying values of cash and cash equivalents, trade receivables, accounts payable, and notes payable are reasonable estimates of their fair values as of March 31, 2015 and December 31, 2014 due to the short-term nature of these instruments. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes |
The effective tax rates for continuing operations for the three months ended March 31, 2015 and 2014 were 28.8% and 29.6%, respectively. Excluding favorable net discrete items in each period, the effective tax rates for the three months ended March 31, 2015 and 2014 were 29.3% and 30.7%, respectively. These discrete items principally resulted from the conclusion of certain state and international tax audits. | |
Additionally, in the first quarter of 2015, the Company generated a capital loss for tax purposes on the sale of Datamax O'Neil, which resulted in a tax benefit of $8.6 million. This benefit is expected to be utilized in 2015. | |
Dover and its subsidiaries file tax returns in the U.S., including various state and local returns, and in other foreign jurisdictions. We believe adequate provision has been made for all income tax uncertainties. The Company is routinely audited by taxing authorities in its filing jurisdictions, and a number of these audits are currently underway. We believe that within the next twelve months uncertain tax positions may be resolved and statutes of limitations will expire, which could result in a decrease in the gross amount of unrecognized tax benefits of approximately zero to $28.7 million, of which a portion will be reported as discontinued operations. |
Equity_Incentive_Program
Equity Incentive Program | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Share-based Compensation [Abstract] | ||||||||
Share-based Compensation | 12. Equity Incentive Program | |||||||
The Company typically grants equity awards annually at its regularly scheduled first quarter Compensation Committee meeting. In the first quarter of 2015, the Company issued stock-settled appreciation rights ("SARs") covering 1,144,529 shares, performance share awards of 61,611 and restricted stock units of 145,545. | ||||||||
The Company uses the Black-Scholes option pricing model to determine the fair value of each SAR on the date of grant. Expected volatilities are based on Dover's stock price history, including implied volatilities from traded options on Dover stock. The Company uses historical data to estimate SAR exercise and employee termination patterns within the valuation model. The expected life of SARs granted is derived from the output of the option valuation model and represents the average period of time that SARs granted are expected to be outstanding. The interest rate for periods within the contractual life of the SARs is based on the U.S. Treasury yield curve in effect at the time of grant. | ||||||||
The assumptions used in determining the fair value of the SARs awarded during the respective periods are as follows: | ||||||||
SARs | ||||||||
2015 | 2014 | |||||||
Risk-free interest rate | 1.51 | % | 1.7 | % | ||||
Dividend yield | 2.24 | % | 1.98 | % | ||||
Expected life (years) | 5.1 | 5.3 | ||||||
Volatility | 27.19 | % | 30.81 | % | ||||
Grant price | $ | 73.28 | $ | 82.51 | ||||
Fair value per share at date of grant | $ | 14.55 | $ | 19.84 | ||||
The performance share awards granted in 2014 and 2015 are considered performance condition awards as attainment is based on Dover's performance relative to established internal metrics. The fair value of these awards are determined using Dover's closing stock price on the date of grant. The expected attainment of the internal metrics for these awards is analyzed each reporting period, and the related expense is adjusted based on expected attainment, if that attainment differs from previous estimates. The cumulative effect on current and prior periods of a change in attainment is recognized in compensation cost in the period of change. | ||||||||
The fair value and average attainment used in determining compensation cost for the performance shares issued in 2014 and 2015 is as follows for the three months ended March 31, 2015: | ||||||||
Performance shares | ||||||||
2015 | 2014 | |||||||
Fair value per share at date of grant | $ | 73.28 | $ | 82.51 | ||||
Average attainment rate reflected in expense | 64.35 | % | 63.31 | % | ||||
Stock-based compensation is reported within selling and administrative expenses in the accompanying unaudited Condensed Consolidated Statements of Earnings. The following table summarizes the Company’s compensation expense relating to all stock-based incentive plans: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Pre-tax compensation expense (1) | $ | 13,387 | $ | 8,501 | ||||
Tax benefit | (4,764 | ) | (3,000 | ) | ||||
Total stock-based compensation expense, net of tax | $ | 8,623 | $ | 5,501 | ||||
-1 | The increase in share-based compensation expense in 2015 relative to the prior year is due to the acceleration of expense for awards granted in 2015 to certain employees that have satisfied the terms of retirement eligibility under the the 2012 Equity and Cash Incentive Plan. As these individuals are guaranteed the right to vest in these awards, regardless of future service, the related expense was recognized immediately upon grant. |
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Commitments and Contingent Liabilities | 13. Commitments and Contingent Liabilities | |||||||
Litigation | ||||||||
A few of the Company’s subsidiaries are involved in legal proceedings relating to the cleanup of waste disposal sites identified under federal and state statutes that provide for the allocation of such costs among “potentially responsible parties.” In each instance, the extent of the Company’s liability appears to be very small in relation to the total projected expenditures and the number of other “potentially responsible parties” involved and is anticipated to be immaterial to the Company. In addition, a few of the Company’s subsidiaries are involved in ongoing remedial activities at certain current and former plant sites, in cooperation with regulatory agencies, and appropriate reserves have been established. At March 31, 2015 and December 31, 2014, the Company has reserves totaling $31,555 and $32,890, respectively, for environmental and other matters, including private party claims for exposure to hazardous substances, that are probable and estimable. | ||||||||
The Company and certain of its subsidiaries are also parties to a number of other legal proceedings incidental to their businesses. These proceedings primarily involve claims by private parties alleging injury arising out of use of the Company’s products, patent infringement, employment matters, and commercial disputes. Management and legal counsel, at least quarterly, review the probable outcome of such proceedings, the costs and expenses reasonably expected to be incurred and currently accrued to-date, and the availability and extent of insurance coverage. The Company has reserves for legal matters that are probable and estimable and not otherwise covered by insurance, and at March 31, 2015 and December 31, 2014, these reserves are not significant. While it is not possible at this time to predict the outcome of these legal actions, in the opinion of management, based on the aforementioned reviews, the Company is not currently involved in any legal proceedings which, individually or in the aggregate, could have a material effect on its financial position, results of operations, or cash flows. | ||||||||
Warranty Accruals | ||||||||
Estimated warranty program claims are provided for at the time of sale. Amounts provided for are based on historical costs and adjusted new claims. The changes in the carrying amount of product warranties through March 31, 2015 and 2014 are as follows: | ||||||||
2015 | 2014 | |||||||
Beginning Balance, January 1 | $ | 49,388 | $ | 42,924 | ||||
Provision for warranties | 11,075 | 13,619 | ||||||
Settlements made | (13,395 | ) | (12,680 | ) | ||||
Other adjustments, including acquisitions and currency translation | (630 | ) | 1,062 | |||||
Ending balance, March 31 | $ | 46,438 | $ | 44,925 | ||||
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||
Employee Benefit Plans | 14. Employee Benefit Plans | |||||||||||||||
Retirement Plans | ||||||||||||||||
The Company offers defined contribution retirement plans which cover the majority of its U.S. employees, as well as employees in certain other countries. In addition, the Company sponsors qualified defined benefit pension plans covering certain employees of the Company and its subsidiaries. The plans’ benefits are generally based on years of service and employee compensation. The Company also provides to certain management employees, through non-qualified plans, supplemental retirement benefits in excess of qualified plan limits imposed by federal tax law. | ||||||||||||||||
The following tables set forth the components of the Company’s net periodic expense relating to retirement benefit plans: | ||||||||||||||||
Qualified Defined Benefits | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
U.S. Plan | Non-U.S. Plans | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Service Cost | $ | 3,915 | $ | 3,721 | $ | 1,688 | $ | 1,515 | ||||||||
Interest Cost | 5,791 | 6,314 | 1,486 | 1,983 | ||||||||||||
Expected return on plan assets | (10,393 | ) | (10,398 | ) | (2,019 | ) | (2,029 | ) | ||||||||
Amortization: | ||||||||||||||||
Prior service cost | 224 | 271 | 23 | 27 | ||||||||||||
Recognized actuarial loss | 3,155 | 2,072 | 675 | 221 | ||||||||||||
Transition obligation | — | — | 9 | — | ||||||||||||
Curtailments, special termination benefits, and settlements (1) | 810 | — | 2 | 3 | ||||||||||||
Net periodic expense | $ | 3,502 | $ | 1,980 | $ | 1,864 | $ | 1,720 | ||||||||
-1 | One-time charges of $810 reflected in pension expense for the three months ended March 31, 2015 represents curtailments, special termination benefits, and settlements for certain businesses classified as held for sale; therefore, this amount has been reflected in the results of discontinued operations. | |||||||||||||||
The net periodic expense reflected above for non-U.S. plans for the three months ended March 31, 2014 excludes certain non-U.S. plans sponsored by Knowles that were distributed as part of the separation on February 28, 2014. The historical expense relating to these plans was $59 for the three months ended March 31, 2014. The expense relating to these plans is reflected in earnings from discontinued operations. | ||||||||||||||||
Non-Qualified Supplemental Benefits | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Service Cost | $ | 935 | $ | 830 | ||||||||||||
Interest Cost | 1,266 | 1,537 | ||||||||||||||
Amortization: | ||||||||||||||||
Prior service cost | 1,732 | 1,944 | ||||||||||||||
Recognized actuarial loss (gain) | 71 | (107 | ) | |||||||||||||
Net periodic expense | $ | 4,004 | $ | 4,204 | ||||||||||||
The net periodic expense for the three months ended March 31, 2015 for the Company's qualified and non-qualified defined benefit pension plans reflects the impact of lower discount rates, which resulted in higher amortization of actuarial losses for the current period. | ||||||||||||||||
Post-Retirement Plans | ||||||||||||||||
The Company also maintains post retirement benefit plans, although these plans are effectively closed to new entrants. The supplemental and post retirement benefit plans are supported by the general assets of the Company. The following table sets forth the components of the Company’s net periodic expense relating to its post-retirement benefit plans: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Service Cost | $ | 41 | $ | 62 | ||||||||||||
Interest Cost | 128 | 157 | ||||||||||||||
Amortization: | ||||||||||||||||
Prior service cost | (93 | ) | (102 | ) | ||||||||||||
Recognized actuarial (gain) loss | (8 | ) | 13 | |||||||||||||
Net periodic expense | $ | 68 | $ | 130 | ||||||||||||
The total amount amortized out of accumulated other comprehensive income into net periodic benefit expense for the three months ended March 31, 2015 and 2014 totaled $5,788 and $4,339, respectively. The amortization included in other comprehensive income for the three months ended March 31, 2014 includes $61 relating to plans sponsored by Knowles that were transfered as part of the separation in 2014. | ||||||||||||||||
Defined Contribution Retirement Plans | ||||||||||||||||
The Company also offers defined contribution retirement plans which cover the majority of its U.S. employees, as well as employees in certain other countries. The Company’s expense relating to defined contribution plans was $9,006, and $8,377 for the three months ended March 31, 2015 and 2014. |
Other_Comprehensive_Earnings
Other Comprehensive Earnings | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||
Other Comprehensive Earnings | 15. Other Comprehensive (Loss) Earnings | |||||||||||||||||||||||
The amounts recognized in other comprehensive (loss) earnings were as follows: | ||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | |||||||||||||||||||||||
Pre-tax | Tax | Net of tax | Pre-tax | Tax | Net of tax | |||||||||||||||||||
Foreign currency translation adjustments (1) | $ | (72,203 | ) | $ | (11,906 | ) | $ | (84,109 | ) | $ | (18,506 | ) | $ | 1,133 | $ | (17,373 | ) | |||||||
Pension and other postretirement benefit plans | 5,788 | (1,962 | ) | 3,826 | 4,339 | (1,505 | ) | 2,834 | ||||||||||||||||
Changes in fair value of cash flow hedges | 1,629 | (570 | ) | 1,059 | (943 | ) | 330 | (613 | ) | |||||||||||||||
Other | 241 | (27 | ) | 214 | (106 | ) | (20 | ) | (126 | ) | ||||||||||||||
Total other comprehensive (loss) earnings | $ | (64,545 | ) | $ | (14,465 | ) | $ | (79,010 | ) | $ | (15,216 | ) | $ | (62 | ) | $ | (15,278 | ) | ||||||
-1 | Foreign currency translation adjustments include pre-tax gains on the Company's net investment hedges of $34,017 for the three months ended March 31, 2015, which resulted in a tax expense of $11,906 reflected in other comprehensive income. For the three months ended March 31, 2014, the Company recognized pre-tax losses of $3,236 on these net investment hedges, which resulted in a tax benefit of $1,133 reflected in other comprehensive income. See also Note 10 Financial Instruments. | |||||||||||||||||||||||
Total comprehensive earnings were as follows: | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Net earnings | $ | 209,510 | $ | 160,138 | ||||||||||||||||||||
Other comprehensive (loss) earnings | (79,010 | ) | (15,278 | ) | ||||||||||||||||||||
Comprehensive earnings | $ | 130,500 | $ | 144,860 | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings (loss) to earnings (loss) during the three months ended March 31, 2015 and 2014 were as follows: | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Pension and postretirement benefit plans: | ||||||||||||||||||||||||
Amortization of actuarial losses | $ | 3,902 | $ | 2,199 | ||||||||||||||||||||
Amortization of prior service costs | 1,886 | 2,140 | ||||||||||||||||||||||
Total before tax | 5,788 | 4,339 | ||||||||||||||||||||||
Tax provision | (1,962 | ) | (1,505 | ) | ||||||||||||||||||||
Net of tax | $ | 3,826 | $ | 2,834 | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Net losses (gains) reclassified into earnings | $ | (153 | ) | $ | (214 | ) | ||||||||||||||||||
Tax benefit (provision) | 54 | 75 | ||||||||||||||||||||||
Net of tax | $ | (99 | ) | $ | (139 | ) | ||||||||||||||||||
The Company recognizes net periodic pension cost, which includes amortization of net actuarial losses and prior service costs, in both selling and administrative expenses and cost of goods and services, depending on the functional area of the underlying employees included in the plans. | ||||||||||||||||||||||||
Cash flow hedges consist mainly of foreign currency forward contracts. The Company recognizes the realized gains and losses on its cash flow hedges in the same line item as the hedged transaction, such as revenue, cost of goods and services, or selling & administrative expenses. |
Segment_Information
Segment Information | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Segment Information | 16. Segment Information | |||||||
For management reporting and performance evaluation purposes, the Company categorizes its operating companies into four distinct reportable segments. Segment financial information and a reconciliation of segment results to consolidated results is as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Revenue: | ||||||||
Energy | $ | 430,423 | $ | 478,773 | ||||
Engineered Systems | 573,196 | 567,674 | ||||||
Fluids | 340,236 | 345,009 | ||||||
Refrigeration & Food Equipment | 372,097 | 411,493 | ||||||
Intra-segment eliminations | (451 | ) | (379 | ) | ||||
Total consolidated revenue | $ | 1,715,501 | $ | 1,802,570 | ||||
Earnings from continuing operations: | ||||||||
Segment earnings: | ||||||||
Energy | $ | 52,305 | $ | 118,968 | ||||
Engineered Systems | 88,149 | 83,227 | ||||||
Fluids | 54,634 | 57,942 | ||||||
Refrigeration & Food Equipment | 36,150 | 44,862 | ||||||
Total segments | 231,238 | 304,999 | ||||||
Corporate expense / other (1) | 34,526 | 30,734 | ||||||
Net interest expense | 32,037 | 32,655 | ||||||
Earnings before provision for income taxes and discontinued operations | 164,675 | 241,610 | ||||||
Provision for taxes | 47,485 | 71,569 | ||||||
Earnings from continuing operations | $ | 117,190 | $ | 170,041 | ||||
-1 | Certain expenses are maintained at the corporate level and not allocated to the segments. These expenses include executive and functional compensation costs, non-service pension costs, non-operating insurance expenses, and various administrative expenses relating to the corporate headquarters. |
Share_Repurchases
Share Repurchases | 3 Months Ended |
Mar. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Share repurchases | 17. Share Repurchases |
In January 2015, the Board of Directors approved a new standing share repurchase authorization, whereby the Company may repurchase up to 15,000,000 shares of its common stock over the following three years. During the three months ended March 31, 2015, the Company repurchased 2,753,165 shares of common stock under this program for $200,055, or an average share price of $72.66. As of March 31, 2015, there were 12,246,835 shares available to purchase under the January 2015 plan. Treasury shares increased to 95,633,809 at March 31, 2015 from a balance of 92,880,644 at December 31, 2014. | |
During the three months ended March 31, 2014, the Company completed its $1.0 billion share repurchase program through an accelerated share repurchase transaction, whereby Dover paid $292,565 to receive a variable number of shares over a specified period of time. The Company repurchased 3,596,980 shares under this transaction for an average share price of $81.06. |
Earnings_per_Share
Earnings per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share | 18. Earnings per Share | |||||||
The following table sets forth a reconciliation of the information used in computing basic and diluted earnings per share: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Earnings from continuing operations | $ | 117,190 | $ | 170,041 | ||||
Earnings (loss) from discontinued operations, net | 92,320 | (9,903 | ) | |||||
Net earnings | $ | 209,510 | $ | 160,138 | ||||
Basic earnings (loss) per common share: | ||||||||
Earnings from continuing operations | $ | 0.72 | $ | 1 | ||||
Earnings (loss) from discontinued operations, net | $ | 0.57 | $ | (0.06 | ) | |||
Net earnings | $ | 1.3 | $ | 0.94 | ||||
Weighted average shares outstanding | 161,650,000 | 169,750,000 | ||||||
Diluted earnings (loss) per common share: | ||||||||
Earnings from continuing operations | $ | 0.72 | $ | 0.99 | ||||
Earnings (loss) from discontinued operations, net | $ | 0.57 | $ | (0.06 | ) | |||
Net earnings | $ | 1.28 | $ | 0.93 | ||||
Weighted average shares outstanding | 163,323,000 | 172,013,000 | ||||||
The following table is a reconciliation of the share amounts used in computing earnings per share: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Weighted average shares outstanding - Basic | 161,650,000 | 169,750,000 | ||||||
Dilutive effect of assumed exercise of employee stock options and SARs and vesting of performance shares | 1,673,000 | 2,263,000 | ||||||
Weighted average shares outstanding - Diluted | 163,323,000 | 172,013,000 | ||||||
Diluted per share amounts are computed using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and SARs, and vesting of performance shares and restricted shares, as determined using the treasury stock method. | ||||||||
The weighted average number of anti-dilutive potential common shares excluded from the calculation above were 56,000 and 48,000 for the three months ended March 31, 2015 and 2014, respectively. |
Recent_Accounting_Standards
Recent Accounting Standards | 3 Months Ended |
Mar. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Standards | 19. Recent Accounting Standards |
Recently Issued Accounting Standards | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09 that introduces a new five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The original standard was effective for fiscal years beginning after December 15, 2016; however, in April 2015, the FASB proposed a one-year deferral of this standard, with a new effective date of December 15, 2017. The Company is currently evaluating the new guidance to determine the impact it will have on its consolidated financial statements. | |
Recently Adopted Accounting Standards | |
In April 2014, the FASB issued ASU 2014-08, which includes amendments that change the requirements for reporting discontinued operations and require additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations with a major effect on the organization's operations and financial results should be presented as discontinued operations. Additionally, the ASU requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The Company adopted the standard effective January 1, 2015. | |
In July 2013, the FASB issued ASU 2013-11, which provides that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. This standard was effective for fiscal years beginning after December 15, 2013. The Company's adoption of this standard did not have a significant impact on its consolidated financial statements. | |
In March 2013, the FASB issued ASU 2013-05, which permits an entity to release cumulative translation adjustments into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided, or, if a controlling financial interest is no longer held. The revised standard was effective for fiscal years beginning after December 15, 2013; however, early adoption is permitted. The Company's adoption of this standard did not have a significant impact on its consolidated financial statements. | |
In February 2013, the FASB issued ASU 2013-02 which requires additional disclosures regarding the reporting of reclassifications out of accumulated other comprehensive income. ASU 2013-02 requires an entity to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. This guidance was effective for reporting periods beginning after December 15, 2012. The Company adopted this guidance effective January 1, 2013. The Company's adoption of this standard did not have a significant impact on its consolidated financial statements. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 20. Subsequent Events |
The Company assessed events occurring subsequent to March 31, 2015 for potential recognition and disclosure in the consolidated financial statements. No events have occurred that would require adjustment to the consolidated financial statements. | |
Disposition | |
On March 26, 2015, Dover signed a definitive agreement to sell Sargent Aerospace to RBC Bearings Incorporated for a total purchase price of $500 million. The Company expects to complete the sale of this business early in the second quarter of 2015. |
Spin_Off_of_Knowles_Tables
Spin Off of Knowles (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Spin Off [Abstract] | ||||
Summary of the assets and liabilities transferred to Knowles as part of the separation[Table Text Block] | The following is a summary of the assets and liabilities distributed to Knowles as part of the separation on February 28, 2014: | |||
Assets: | ||||
Cash and cash equivalents | $ | 40,045 | ||
Other current assets | 340,945 | |||
Non-current assets | 1,678,820 | |||
$ | 2,059,810 | |||
Liabilities: | ||||
Current liabilities | $ | 252,673 | ||
Non-current liabilities | 383,940 | |||
$ | 636,613 | |||
Net assets distributed to Knowles Corporation | $ | 1,423,197 | ||
Acquisitions_Tables
Acquisitions (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Business Combinations [Abstract] | ||||||||
Pro forma results of operations | The following unaudited pro forma information illustrates the impact of both 2015 and 2014 acquisitions on the Company’s revenue and earnings from continuing operations for the three months ended March 31, 2015 and 2014. In 2014, the Company acquired Heidelberg CSAT GmbH, MS Printing Solutions, Timberline Manufacturing Company, WellMark Holdings, Inc., SweatMiser, and Liquip International for total consideration of $366,532, and Accelerated Companies for consideration of $435,722. | |||||||
The 2015 and 2014 pro forma information assumes that the 2015 and 2014 acquisitions had taken place at the beginning of the prior year. Pro forma earnings are also adjusted to reflect the comparable impact of additional depreciation and amortization expense (net of tax) resulting from the fair value measurement of tangible and intangible assets relating to 2015 and 2014 acquisitions. | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Revenue from continuing operations: | ||||||||
As reported | $ | 1,715,501 | $ | 1,802,570 | ||||
Pro forma | 1,716,008 | 1,891,612 | ||||||
Earnings from continuing operations: | ||||||||
As reported | $ | 117,190 | $ | 170,041 | ||||
Pro forma (1) | 123,313 | 176,221 | ||||||
Basic earnings per share from continuing operations: | ||||||||
As reported | $ | 0.72 | $ | 1 | ||||
Pro forma (1) | 0.76 | 1.04 | ||||||
Diluted earnings per share from continuing operations: | ||||||||
As reported | $ | 0.72 | $ | 0.99 | ||||
Pro forma (1) | 0.76 | 1.02 | ||||||
-1 | For pro forma presentation purposes, the 2015 pro forma earnings amount excludes certain one-time adjustments made in 2015 for 2014 acquisitions, since as noted above, the pro forma information assumes that the 2014 acquisitions had taken place at the beginning of 2013. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Results of discontinued operations | Summarized results of the Company’s discontinued operations are as follows: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Revenue | $ | 64,495 | $ | 283,680 | ||||
Gain on sale, net of tax | 87,354 | — | ||||||
Earnings (loss) from operations before taxes | 8,980 | (7,842 | ) | |||||
Provision for income taxes | (4,014 | ) | (2,061 | ) | ||||
Earnings (loss) from operations, net of tax | 4,966 | (9,903 | ) | |||||
Earnings (loss) from discontinued operations, net of tax | $ | 92,320 | $ | (9,903 | ) | |||
Assets and liabilities of discontinued operations | Assets and liabilities of discontinued operations are summarized below: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Assets of Discontinued Operations: | ||||||||
Accounts receivable | $ | 28,178 | $ | 46,691 | ||||
Inventories, net | 43,624 | 58,401 | ||||||
Prepaid and other current assets | 4,971 | 8,571 | ||||||
Total current assets | 76,773 | 113,663 | ||||||
Property, plant and equipment, net | 27,744 | 31,573 | ||||||
Goodwill and intangible assets, net | 110,912 | 181,798 | ||||||
Other assets and deferred charges | — | 137 | ||||||
Total assets | $ | 215,429 | $ | 327,171 | ||||
Liabilities of Discontinued Operations: | ||||||||
Accounts payable | $ | 15,505 | $ | 21,199 | ||||
Other current liabilities | 6,111 | 17,675 | ||||||
Total current liabilities | 21,616 | 38,874 | ||||||
Deferred income taxes | 14,870 | 8,752 | ||||||
Other liabilities | 225 | 3,092 | ||||||
Total liabilities | $ | 36,711 | $ | 50,718 | ||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory, Net [Abstract] | ||||||||
Components of Inventory | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Raw materials | $ | 346,979 | $ | 352,016 | ||||
Work in progress | 154,759 | 147,715 | ||||||
Finished goods | 483,924 | 483,912 | ||||||
Subtotal | 985,662 | 983,643 | ||||||
Less reserves | (123,710 | ) | (119,906 | ) | ||||
Total | $ | 861,952 | $ | 863,737 | ||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Components of property, plant and equipment, net | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Land | $ | 53,115 | $ | 55,076 | ||||
Buildings and improvements | 532,303 | 537,474 | ||||||
Machinery, equipment and other | 1,694,208 | 1,698,638 | ||||||
2,279,626 | 2,291,188 | |||||||
Less accumulated depreciation | (1,457,890 | ) | (1,454,119 | ) | ||||
Total | $ | 821,736 | $ | 837,069 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Goodwill | The following table provides the changes in carrying value of goodwill by segment for the three months ended March 31, 2015: | |||||||||||||||||||
Energy | Engineered Systems | Fluids | Refrigeration & Food Equipment | Total | ||||||||||||||||
Balance at December 31, 2014 | $ | 1,048,735 | $ | 1,270,178 | $ | 609,663 | $ | 562,981 | $ | 3,491,557 | ||||||||||
Acquisitions | — | — | — | 1,932 | 1,932 | |||||||||||||||
Purchase price adjustments | 7,390 | — | — | — | 7,390 | |||||||||||||||
Foreign currency translation and other | (5,259 | ) | (14,124 | ) | (14,584 | ) | (2,871 | ) | (36,838 | ) | ||||||||||
Balance at March 31, 2015 | $ | 1,050,866 | $ | 1,256,054 | $ | 595,079 | $ | 562,042 | $ | 3,464,041 | ||||||||||
Schedule of Intangible Assets | The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset: | |||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||||
Trademarks | $ | 136,706 | $ | 36,572 | $ | 138,650 | $ | 34,097 | ||||||||||||
Patents | 148,411 | 109,239 | 150,404 | 108,484 | ||||||||||||||||
Customer Intangibles | 1,410,468 | 510,376 | 1,429,906 | 484,449 | ||||||||||||||||
Unpatented Technologies | 90,897 | 48,160 | 92,480 | 45,812 | ||||||||||||||||
Drawings & Manuals | 34,584 | 13,416 | 36,377 | 13,087 | ||||||||||||||||
Distributor Relationships | 64,614 | 35,185 | 64,614 | 34,377 | ||||||||||||||||
Other | 24,293 | 13,559 | 24,214 | 12,737 | ||||||||||||||||
Total | 1,909,973 | 766,507 | 1,936,645 | 733,043 | ||||||||||||||||
Unamortized intangible assets: | ||||||||||||||||||||
Trademarks | 165,669 | 165,918 | ||||||||||||||||||
Total intangible assets, net | $ | 1,309,135 | $ | 1,369,520 | ||||||||||||||||
Restructuring_Activities_Table
Restructuring Activities (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Restructuring [Abstract] | ||||||||||||
Schedule of Restructuring and Related Costs | The following table details restructuring charges incurred by segment for the periods presented: | |||||||||||
Three Months Ended March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Energy | $ | 17,822 | $ | 71 | ||||||||
Engineered Systems | 4,355 | 1,785 | ||||||||||
Fluids | 2,097 | 905 | ||||||||||
Refrigeration & Food Equipment | (282 | ) | — | |||||||||
Corporate | 111 | 509 | ||||||||||
Total | $ | 24,103 | $ | 3,270 | ||||||||
These amounts are classified in the unaudited Condensed Consolidated Statements of Earnings as follows: | ||||||||||||
Cost of goods and services | $ | 7,454 | $ | 543 | ||||||||
Selling and administrative expenses | 16,649 | 2,727 | ||||||||||
Total | $ | 24,103 | $ | 3,270 | ||||||||
Schedule of Restructuring Reserve by Type of Cost | The following table details the Company’s severance and other restructuring accrual activity: | |||||||||||
Severance | Exit | Total | ||||||||||
Balance at December 31, 2014 | $ | 15,358 | $ | 6,663 | $ | 22,021 | ||||||
Restructuring charges | 13,354 | 10,749 | 24,103 | |||||||||
Payments | (17,947 | ) | (4,540 | ) | (22,487 | ) | ||||||
Other, including foreign currency | (532 | ) | (4,465 | ) | (4,997 | ) | ||||||
Balance at March 31, 2015 | $ | 10,233 | $ | 8,407 | $ | 18,640 | ||||||
Borrowings_Tables
Borrowings (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Short-term Debt | Borrowings consist of the following: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Short-term | ||||||||
Current portion of long-term debt | $ | 300,002 | $ | 299,956 | ||||
Commercial paper | 325,500 | 478,000 | ||||||
$ | 625,502 | $ | 777,956 | |||||
Schedule of Long-term Debt Instruments | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Long-term | ||||||||
4.875% 10-year notes due October 15, 2015 | $ | 299,885 | $ | 299,836 | ||||
5.45% 10-year notes due March 15, 2018 | 349,010 | 348,928 | ||||||
2.125% 7-year notes due December 1, 2020 (Euro-denominated) | 328,632 | 363,970 | ||||||
4.30% 10-year notes due March 1, 2021 | 449,846 | 449,839 | ||||||
6.65% 30-year debentures due June 1, 2028 | 199,526 | 199,517 | ||||||
5.375% 30-year debentures due October 15, 2035 | 296,725 | 296,685 | ||||||
6.60% 30-year notes due March 15, 2038 | 247,970 | 247,948 | ||||||
5.375% 30-year notes due March 1, 2041 | 345,870 | 345,830 | ||||||
Other | 412 | 444 | ||||||
Total long-term debt | 2,517,876 | 2,552,997 | ||||||
Less current installments | (300,002 | ) | (299,956 | ) | ||||
$ | 2,217,874 | $ | 2,253,041 | |||||
Schedule of Interest expense and interest income | Interest expense and interest income for the three months ended March 31, 2015 and 2014 were as follows: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Interest expense | $ | 33,005 | $ | 33,691 | ||||
Interest income | (968 | ) | (1,036 | ) | ||||
Interest expense, net | $ | 32,037 | $ | 32,655 | ||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||
Fair value of derivative instruments and the balance sheet lines in which they are recorded | The following table sets forth the fair values of derivative instruments held by the Company as of March 31, 2015 and December 31, 2014 and the balance sheet lines in which they are recorded: | |||||||||||||||||||||||
Fair Value Asset (Liability) | ||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | Balance Sheet Caption | ||||||||||||||||||||||
Foreign currency forward / collar contracts | $ | 1,995 | $ | 973 | Prepaid / Other assets | |||||||||||||||||||
Foreign currency forward / collar contracts | (506 | ) | (810 | ) | Other accrued expenses | |||||||||||||||||||
Net investment hedge - cross currency swap | (16,900 | ) | (15,567 | ) | Accrued expenses | |||||||||||||||||||
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Amounts recognized in other comprehensive earnings (loss) for the gains (losses) on its net investment hedges were as follows: | |||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Gain (loss) on Euro-denominated debt | $ | 35,350 | $ | (2,904 | ) | |||||||||||||||||||
Loss on Swiss franc cross-currency swap | (1,333 | ) | (332 | ) | ||||||||||||||||||||
Total gain (loss) on net investment hedges before tax | 34,017 | (3,236 | ) | |||||||||||||||||||||
Tax (expense) benefit | (11,906 | ) | 1,133 | |||||||||||||||||||||
Net gain (loss) on net investment hedges, net of tax | $ | 22,111 | $ | (2,103 | ) | |||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Foreign currency cash flow hedges | $ | — | $ | 1,995 | $ | — | $ | — | $ | 973 | $ | — | ||||||||||||
Liabilities: | ||||||||||||||||||||||||
Foreign currency cash flow hedges | — | 506 | — | — | 810 | — | ||||||||||||||||||
Net investment hedge derivative | — | 16,900 | — | — | 15,567 | — | ||||||||||||||||||
Equity_Incentive_Program_Table
Equity Incentive Program (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based incentive plans compensation expense | Stock-based compensation is reported within selling and administrative expenses in the accompanying unaudited Condensed Consolidated Statements of Earnings. The following table summarizes the Company’s compensation expense relating to all stock-based incentive plans: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Pre-tax compensation expense (1) | $ | 13,387 | $ | 8,501 | ||||
Tax benefit | (4,764 | ) | (3,000 | ) | ||||
Total stock-based compensation expense, net of tax | $ | 8,623 | $ | 5,501 | ||||
-1 | The increase in share-based compensation expense in 2015 relative to the prior year is due to the acceleration of expense for awards granted in 2015 to certain employees that have satisfied the terms of retirement eligibility under the the 2012 Equity and Cash Incentive Plan. As these individuals are guaranteed the right to vest in these awards, regardless of future service, the related expense was recognized immediately upon grant. | |||||||
Stock Appreciation Rights (SARs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Valuation assumptions | ||||||||
SARs | ||||||||
2015 | 2014 | |||||||
Risk-free interest rate | 1.51 | % | 1.7 | % | ||||
Dividend yield | 2.24 | % | 1.98 | % | ||||
Expected life (years) | 5.1 | 5.3 | ||||||
Volatility | 27.19 | % | 30.81 | % | ||||
Grant price | $ | 73.28 | $ | 82.51 | ||||
Fair value per share at date of grant | $ | 14.55 | $ | 19.84 | ||||
Performance Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Valuation assumptions | ||||||||
Performance shares | ||||||||
2015 | 2014 | |||||||
Fair value per share at date of grant | $ | 73.28 | $ | 82.51 | ||||
Average attainment rate reflected in expense | 64.35 | % | 63.31 | % | ||||
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Schedule of Product Warranty Liability [Table Text Block] | Estimated warranty program claims are provided for at the time of sale. Amounts provided for are based on historical costs and adjusted new claims. The changes in the carrying amount of product warranties through March 31, 2015 and 2014 are as follows: | |||||||
2015 | 2014 | |||||||
Beginning Balance, January 1 | $ | 49,388 | $ | 42,924 | ||||
Provision for warranties | 11,075 | 13,619 | ||||||
Settlements made | (13,395 | ) | (12,680 | ) | ||||
Other adjustments, including acquisitions and currency translation | (630 | ) | 1,062 | |||||
Ending balance, March 31 | $ | 46,438 | $ | 44,925 | ||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Defined benefit pension plans | ||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
U.S. Plan | Non-U.S. Plans | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Service Cost | $ | 3,915 | $ | 3,721 | $ | 1,688 | $ | 1,515 | ||||||||
Interest Cost | 5,791 | 6,314 | 1,486 | 1,983 | ||||||||||||
Expected return on plan assets | (10,393 | ) | (10,398 | ) | (2,019 | ) | (2,029 | ) | ||||||||
Amortization: | ||||||||||||||||
Prior service cost | 224 | 271 | 23 | 27 | ||||||||||||
Recognized actuarial loss | 3,155 | 2,072 | 675 | 221 | ||||||||||||
Transition obligation | — | — | 9 | — | ||||||||||||
Curtailments, special termination benefits, and settlements (1) | 810 | — | 2 | 3 | ||||||||||||
Net periodic expense | $ | 3,502 | $ | 1,980 | $ | 1,864 | $ | 1,720 | ||||||||
-1 | One-time charges of $810 reflected in pension expense for the three months ended March 31, 2015 represents curtailments, special termination benefits, and settlements for certain businesses classified as held for sale; therefore, this amount has been reflected in the results of discontinued operations. | |||||||||||||||
Supplemental Employee Retirement Plans, Defined Benefit [Member] | ||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Service Cost | $ | 935 | $ | 830 | ||||||||||||
Interest Cost | 1,266 | 1,537 | ||||||||||||||
Amortization: | ||||||||||||||||
Prior service cost | 1,732 | 1,944 | ||||||||||||||
Recognized actuarial loss (gain) | 71 | (107 | ) | |||||||||||||
Net periodic expense | $ | 4,004 | $ | 4,204 | ||||||||||||
Post-Retirement Benefits [Member] | ||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Service Cost | $ | 41 | $ | 62 | ||||||||||||
Interest Cost | 128 | 157 | ||||||||||||||
Amortization: | ||||||||||||||||
Prior service cost | (93 | ) | (102 | ) | ||||||||||||
Recognized actuarial (gain) loss | (8 | ) | 13 | |||||||||||||
Net periodic expense | $ | 68 | $ | 130 | ||||||||||||
Other_Comprehensive_Earnings_T
Other Comprehensive Earnings (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||
Components of other comprehensive income | The amounts recognized in other comprehensive (loss) earnings were as follows: | |||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | |||||||||||||||||||||||
Pre-tax | Tax | Net of tax | Pre-tax | Tax | Net of tax | |||||||||||||||||||
Foreign currency translation adjustments (1) | $ | (72,203 | ) | $ | (11,906 | ) | $ | (84,109 | ) | $ | (18,506 | ) | $ | 1,133 | $ | (17,373 | ) | |||||||
Pension and other postretirement benefit plans | 5,788 | (1,962 | ) | 3,826 | 4,339 | (1,505 | ) | 2,834 | ||||||||||||||||
Changes in fair value of cash flow hedges | 1,629 | (570 | ) | 1,059 | (943 | ) | 330 | (613 | ) | |||||||||||||||
Other | 241 | (27 | ) | 214 | (106 | ) | (20 | ) | (126 | ) | ||||||||||||||
Total other comprehensive (loss) earnings | $ | (64,545 | ) | $ | (14,465 | ) | $ | (79,010 | ) | $ | (15,216 | ) | $ | (62 | ) | $ | (15,278 | ) | ||||||
-1 | Foreign currency translation adjustments include pre-tax gains on the Company's net investment hedges of $34,017 for the three months ended March 31, 2015, which resulted in a tax expense of $11,906 reflected in other comprehensive income. For the three months ended March 31, 2014, the Company recognized pre-tax losses of $3,236 on these net investment hedges, which resulted in a tax benefit of $1,133 reflected in other comprehensive income. See also Note 10 Financial Instruments. | |||||||||||||||||||||||
Schedule of comprehensive income (loss) | Total comprehensive earnings were as follows: | |||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Net earnings | $ | 209,510 | $ | 160,138 | ||||||||||||||||||||
Other comprehensive (loss) earnings | (79,010 | ) | (15,278 | ) | ||||||||||||||||||||
Comprehensive earnings | $ | 130,500 | $ | 144,860 | ||||||||||||||||||||
Schedule of amounts reclassified from accumulated other comprehensive income (loss) to earnings | Amounts reclassified from accumulated other comprehensive earnings (loss) to earnings (loss) during the three months ended March 31, 2015 and 2014 were as follows: | |||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Pension and postretirement benefit plans: | ||||||||||||||||||||||||
Amortization of actuarial losses | $ | 3,902 | $ | 2,199 | ||||||||||||||||||||
Amortization of prior service costs | 1,886 | 2,140 | ||||||||||||||||||||||
Total before tax | 5,788 | 4,339 | ||||||||||||||||||||||
Tax provision | (1,962 | ) | (1,505 | ) | ||||||||||||||||||||
Net of tax | $ | 3,826 | $ | 2,834 | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Net losses (gains) reclassified into earnings | $ | (153 | ) | $ | (214 | ) | ||||||||||||||||||
Tax benefit (provision) | 54 | 75 | ||||||||||||||||||||||
Net of tax | $ | (99 | ) | $ | (139 | ) | ||||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Revenue and Earnings from continuing operations by market segment | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Revenue: | ||||||||
Energy | $ | 430,423 | $ | 478,773 | ||||
Engineered Systems | 573,196 | 567,674 | ||||||
Fluids | 340,236 | 345,009 | ||||||
Refrigeration & Food Equipment | 372,097 | 411,493 | ||||||
Intra-segment eliminations | (451 | ) | (379 | ) | ||||
Total consolidated revenue | $ | 1,715,501 | $ | 1,802,570 | ||||
Earnings from continuing operations: | ||||||||
Segment earnings: | ||||||||
Energy | $ | 52,305 | $ | 118,968 | ||||
Engineered Systems | 88,149 | 83,227 | ||||||
Fluids | 54,634 | 57,942 | ||||||
Refrigeration & Food Equipment | 36,150 | 44,862 | ||||||
Total segments | 231,238 | 304,999 | ||||||
Corporate expense / other (1) | 34,526 | 30,734 | ||||||
Net interest expense | 32,037 | 32,655 | ||||||
Earnings before provision for income taxes and discontinued operations | 164,675 | 241,610 | ||||||
Provision for taxes | 47,485 | 71,569 | ||||||
Earnings from continuing operations | $ | 117,190 | $ | 170,041 | ||||
-1 | Certain expenses are maintained at the corporate level and not allocated to the segments. These expenses include executive and functional compensation costs, non-service pension costs, non-operating insurance expenses, and various administrative expenses relating to the corporate headquarters. |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Reconciliation of information used in computing basic and diluted earnings per share | The following table sets forth a reconciliation of the information used in computing basic and diluted earnings per share: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Earnings from continuing operations | $ | 117,190 | $ | 170,041 | ||||
Earnings (loss) from discontinued operations, net | 92,320 | (9,903 | ) | |||||
Net earnings | $ | 209,510 | $ | 160,138 | ||||
Basic earnings (loss) per common share: | ||||||||
Earnings from continuing operations | $ | 0.72 | $ | 1 | ||||
Earnings (loss) from discontinued operations, net | $ | 0.57 | $ | (0.06 | ) | |||
Net earnings | $ | 1.3 | $ | 0.94 | ||||
Weighted average shares outstanding | 161,650,000 | 169,750,000 | ||||||
Diluted earnings (loss) per common share: | ||||||||
Earnings from continuing operations | $ | 0.72 | $ | 0.99 | ||||
Earnings (loss) from discontinued operations, net | $ | 0.57 | $ | (0.06 | ) | |||
Net earnings | $ | 1.28 | $ | 0.93 | ||||
Weighted average shares outstanding | 163,323,000 | 172,013,000 | ||||||
Reconciliation of share amounts used in computing earnings per share | The following table is a reconciliation of the share amounts used in computing earnings per share: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Weighted average shares outstanding - Basic | 161,650,000 | 169,750,000 | ||||||
Dilutive effect of assumed exercise of employee stock options and SARs and vesting of performance shares | 1,673,000 | 2,263,000 | ||||||
Weighted average shares outstanding - Diluted | 163,323,000 | 172,013,000 | ||||||
Spin_Off_of_Knowles_Details
Spin Off of Knowles (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Feb. 28, 2014 |
Transfer Of Cash And Cash Equivalents At Spin Off Gross | $400,000 | |||
Cash received from Knowles Corporation, net of cash distributed | 0 | 359,197 | 359,955 | |
Accumulated other comprehensive income related to foreign currency translation and pension obligations | 26,695 | |||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||||
Total assets of discontinued operations | 215,429 | 327,171 | ||
Current liabilities | 21,616 | 38,874 | ||
Total liabilities of discontinued operations | 36,711 | 50,718 | ||
Knowles [Member] | ||||
Revolving credit facility | 100,000 | |||
Term loan facility | 300,000 | |||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||||
Cash and cash equivalents | 40,045 | |||
Other current assets | 340,945 | |||
Non-current assets | 1,678,820 | |||
Total assets of discontinued operations | 2,059,810 | |||
Current liabilities | 252,673 | |||
Non-current liabilities | 383,940 | |||
Total liabilities of discontinued operations | 636,613 | |||
Net assets distributed to Knowles Corporation | $1,423,197 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill - tax deductible | $1,932 | ||
Net cash consideration | 6,500 | 366,532 | |
Revenue from continuing operations [Abstract] | |||
As reported | 1,715,501 | 1,802,570 | |
Pro forma | 1,716,008 | 1,891,612 | |
Net earnings from continuing operations [Abstract] | |||
As reported | 117,190 | 170,041 | |
Pro forma | 123,313 | 176,221 | |
Basic earnings per share from continuing operations [Abstract] | |||
As reported (in dollars per share) | $0.72 | $1 | |
Pro forma (in dollars per share) | $0.76 | $1.04 | |
Diluted earnings per share from continuing operations [Abstract] | |||
As reported (in dollars per share) | $0.72 | $0.99 | |
Pro forma (in dollars per share) | $0.76 | $1.02 | |
Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Acquired finite-lived intangible asset, amount | 2,500 | ||
Acquired finite-lived intangible assets, weighted average useful life | 7 years | ||
Other Intangible Assets [Member] | |||
Business Acquisition [Line Items] | |||
Acquired finite-lived intangible asset, amount | 300 | ||
Acquired finite-lived intangible assets, weighted average useful life | 3 years | ||
Accelerated Companies [Member] | |||
Business Acquisition [Line Items] | |||
Net cash consideration | $435,722 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Discontinued Operations and Disposal Groups [Abstract] | |||
Spin off costs incurred to date | $25,760 | ||
Proceeds from the sale of businesses | 185,000 | 0 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Revenue | 64,495 | 283,680 | |
Gain (loss) on sale and impairments, net of tax | 87,354 | 0 | |
Earnings from operations before taxes | 8,980 | -7,842 | |
Benefit from (provision for) income taxes | -4,014 | -2,061 | |
Earnings (loss) from operations, net of tax | 4,966 | -9,903 | |
Earnings (loss) from discontinued operations, net of tax | 92,320 | -9,903 | |
Assets of Discontinued Operations | |||
Accounts receivable, net | 28,178 | 46,691 | |
Inventories, net | 43,624 | 58,401 | |
Prepaid and other current assets | 4,971 | 8,571 | |
Current assets | 76,773 | 113,663 | |
Property, plant and equipment, net | 27,744 | 31,573 | |
Goodwill and intangible assets, net | 110,912 | 181,798 | |
Other assets and deferred charges | 0 | 137 | |
Total assets of discontinued operations | 215,429 | 327,171 | |
Liabilities of Discontinued Operations | |||
Accounts payable | 15,505 | 21,199 | |
Other current liabilities | 6,111 | 17,675 | |
Current liabilities | 21,616 | 38,874 | |
Deferred income taxes | 14,870 | 8,752 | |
Other liabilities | 225 | 3,092 | |
Total liabilities of discontinued operations | $36,711 | $50,718 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory, Net [Abstract] | ||
Raw materials | $346,979 | $352,016 |
Work in progress | 154,759 | 147,715 |
Finished Goods | 483,924 | 483,912 |
Subtotal | 985,662 | 983,643 |
Inventory reserves | -123,710 | -119,906 |
Total | $861,952 | $863,737 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $2,279,626 | $2,291,188 |
Accumulated depreciation | -1,457,890 | -1,454,119 |
Total | 821,736 | 837,069 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 53,115 | 55,076 |
Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 532,303 | 537,474 |
Machinery, equipment and other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $1,694,208 | $1,698,638 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Goodwill (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Goodwill [Roll Forward] | ||
Balance | $3,464,041 | $3,491,557 |
Acquisitions | 1,932 | |
Purchase price adjustments | 7,390 | |
Foreign currency translation | -36,838 | |
Balance | 3,464,041 | 3,491,557 |
Energy Segment [Member] | ||
Goodwill [Roll Forward] | ||
Balance | 1,050,866 | 1,048,735 |
Acquisitions | 0 | |
Purchase price adjustments | 7,390 | |
Foreign currency translation | -5,259 | |
Balance | 1,050,866 | 1,048,735 |
Engineered Systems Segment [Member] | ||
Goodwill [Roll Forward] | ||
Balance | 1,256,054 | 1,270,178 |
Acquisitions | 0 | |
Purchase price adjustments | 0 | |
Foreign currency translation | -14,124 | |
Balance | 1,256,054 | 1,270,178 |
Fluids Segment [Member] | ||
Goodwill [Roll Forward] | ||
Balance | 595,079 | 609,663 |
Acquisitions | 0 | |
Purchase price adjustments | 0 | |
Foreign currency translation | -14,584 | |
Balance | 595,079 | 609,663 |
Refrigeration and Food Equipment Segment [Member] | ||
Goodwill [Roll Forward] | ||
Balance | 562,042 | 562,981 |
Acquisitions | 1,932 | |
Purchase price adjustments | 0 | |
Foreign currency translation | -2,871 | |
Balance | $562,042 | $562,981 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Intangible Assets and Amortization Expense (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $1,909,973 | $1,936,645 | |
Accumulated amortization | 766,507 | 733,043 | |
Amortization expense | 39,974 | 38,587 | |
Intangible assets, net | 1,309,135 | 1,369,520 | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 136,706 | 138,650 | |
Accumulated amortization | 36,572 | 34,097 | |
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 148,411 | 150,404 | |
Accumulated amortization | 109,239 | 108,484 | |
Customer Intangibles [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 1,410,468 | 1,429,906 | |
Accumulated amortization | 510,376 | 484,449 | |
Unpatented Technologies [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 90,897 | 92,480 | |
Accumulated amortization | 48,160 | 45,812 | |
Drawings and Manuals [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 34,584 | 36,377 | |
Accumulated amortization | 13,416 | 13,087 | |
Distributor Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 64,614 | 64,614 | |
Accumulated amortization | 35,185 | 34,377 | |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 24,293 | 24,214 | |
Accumulated amortization | $13,559 | $12,737 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Indefinite-lived Intangibles (Details) (Trademarks [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Trademarks [Member] | ||
Unamortized Intangible Assets [Abstract] | ||
Gross carrying amount | $165,669 | $165,918 |
Restructuring_Activities_Detai
Restructuring Activities (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $24,103,000 | $3,270,000 |
Restructuring Reserve [Roll Forward] | ||
Severance and other restructuring reserve, beginning balance | 22,021,000 | |
Provision | 24,103,000 | |
Payments | -22,487,000 | |
Other, including foreign currency | -4,997,000 | |
Severance and other restructuring reserve, ending balance | 18,640,000 | |
Energy Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 17,822,000 | 71,000 |
Engineered Systems Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 4,355,000 | 1,785,000 |
Fluids Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2,097,000 | 905,000 |
Refrigeration and Food Equipment Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | -282,000 | 0 |
Corporate, Non-Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 111,000 | 509,000 |
Employee Severance [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Severance and other restructuring reserve, beginning balance | 15,358,000 | |
Provision | 13,354,000 | |
Payments | -17,947,000 | |
Other, including foreign currency | -532,000 | |
Severance and other restructuring reserve, ending balance | 10,233,000 | |
Facility Closing [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Severance and other restructuring reserve, beginning balance | 6,663,000 | |
Provision | 10,749,000 | |
Payments | -4,540,000 | |
Other, including foreign currency | -4,465,000 | |
Severance and other restructuring reserve, ending balance | 8,407,000 | |
Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 7,454,000 | 543,000 |
Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 16,649,000 | 2,727,000 |
Maximum [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring and Related Cost, Expected Cost | 43,000,000 | |
Minimum [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring and Related Cost, Expected Cost | $36,000,000 |
Borrowings_Details
Borrowings (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |||
Interest expense | $33,005,000 | $33,691,000 | |
Interest income | -968,000 | -1,036,000 | |
Interest expense, net | 32,037,000 | 32,655,000 | |
Debt Instrument [Line Items] | |||
Letters of Credit Outstanding, Amount | 136,114,000 | ||
Short-term borrowings [Abstract] | |||
Current installments | 300,002,000 | 299,956,000 | |
Commercial Paper | 325,500,000 | 478,000,000 | |
Debt, Current | 625,502,000 | 777,956,000 | |
Long-term borrowings [Abstract] | |||
Carrying amount of long-term debt | 2,517,876,000 | 2,552,997,000 | |
Long-term debt (noncurrent) | 2,217,874,000 | 2,253,041,000 | |
Line of Credit Facility [Abstract] | |||
Line of Credit Facility, Covenant Terms | Under the credit facility, the Company is required to maintain an interest coverage ratio of EBITDA to consolidated net interest expense of not less than 3.0 to 1. | ||
Line of Credit Facility, Covenant Compliance | The Company was in compliance with this covenant and its other long-term debt covenants at March 31, 2015, and it expects to remain in compliance with all of its debt covenants. | ||
Note due 2015 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 299,885,000 | 299,836,000 | |
Debt instruments, maturity date | 15-Oct-15 | ||
Debt instrument, stated interest rate (in hundredths) | 4.88% | ||
Term of debt instrument (in years) | 10 years | ||
Note due 2018 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 349,010,000 | 348,928,000 | |
Debt instruments, maturity date | 15-Mar-18 | ||
Debt instrument, stated interest rate (in hundredths) | 5.45% | ||
Term of debt instrument (in years) | 10 years | ||
Note due 2020 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 328,632,000 | 363,970,000 | |
Debt instruments, maturity date | 1-Dec-20 | ||
Debt instrument, stated interest rate (in hundredths) | 2.13% | ||
Term of debt instrument (in years) | 7 years | ||
Note due 2021 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 449,846,000 | 449,839,000 | |
Debt instruments, maturity date | 1-Mar-21 | ||
Debt instrument, stated interest rate (in hundredths) | 4.30% | ||
Term of debt instrument (in years) | 10 years | ||
Debentures due 2028 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 199,526,000 | 199,517,000 | |
Debt instruments, maturity date | 1-Jun-28 | ||
Debt instrument, stated interest rate (in hundredths) | 6.65% | ||
Term of debt instrument (in years) | 30 years | ||
Debenture due 2035 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 296,725,000 | 296,685,000 | |
Debt instruments, maturity date | 15-Oct-35 | ||
Debt instrument, stated interest rate (in hundredths) | 5.38% | ||
Term of debt instrument (in years) | 30 years | ||
Note due 2038 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 247,970,000 | 247,948,000 | |
Debt instruments, maturity date | 15-Mar-38 | ||
Debt instrument, stated interest rate (in hundredths) | 6.60% | ||
Term of debt instrument (in years) | 30 years | ||
Note due 2041 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 345,870,000 | 345,830,000 | |
Debt instruments, maturity date | 1-Mar-41 | ||
Debt instrument, stated interest rate (in hundredths) | 5.38% | ||
Term of debt instrument (in years) | 30 years | ||
Other long term debt instruments [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 412,000 | 444,000 | |
Credit Agreement [Member] | |||
Line of Credit Facility [Abstract] | |||
Line of Credit Facility, Expiration Date | 10-Nov-16 | ||
Unsecured revolving credit facility, maximum borrowing capacity | $1,000,000,000 | ||
Minimum [Member] | |||
Line of Credit Facility [Abstract] | |||
Line of Credit Facility, Expiration Date | 31-Dec-15 | ||
Maximum [Member] | |||
Line of Credit Facility [Abstract] | |||
Line of Credit Facility, Expiration Date | 31-Dec-23 |
Financial_Instruments_Details
Financial Instruments (Details) | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | |
USD ($) | USD ($) | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Cross Currency Interest Rate Contract [Member] | Cross Currency Interest Rate Contract [Member] | Cross Currency Interest Rate Contract [Member] | Cross Currency Interest Rate Contract [Member] | Cross Currency Interest Rate Contract [Member] | Cross Currency Interest Rate Contract [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Note due 2020 [Member] | Note due 2020 [Member] | Note due 2020 [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | USD ($) | USD ($) | Designated as Hedging Instrument [Member] | |||
USD ($) | CHF | Other Liabilities [Member] | Other Liabilities [Member] | Prepaid and Other Current Assets [Member] | Prepaid and Other Current Assets [Member] | Other Accrued Expenses [Member] | Other Accrued Expenses [Member] | EUR (€) | |||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||||||
Derivative, Notional Amount | $51,759,000 | $47,047,000 | $67,350,000 | $52,392,000 | $50,000,000 | 65,100,000 | |||||||||||||
Debt Instrument, Face Amount | 300,000,000 | ||||||||||||||||||
Fair Value - Asset | 1,995,000 | 973,000 | |||||||||||||||||
Fair Value - Liability | 16,900,000 | 15,567,000 | 506,000 | 810,000 | |||||||||||||||
Gain (loss) on euro net investment hedge, gross | 34,017,000 | -3,236,000 | -1,333,000 | -332,000 | 35,350,000 | -2,904,000 | |||||||||||||
Foreign currency translation adjustments, tax | -11,906,000 | 1,133,000 | |||||||||||||||||
Gain (Loss) on euro net investment hedge, net of tax | $22,111,000 | ($2,103,000) |
Financial_Instruments_Balance_
Financial Instruments - Balance Sheet Location (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Inputs, Level 1 [Member] | ||
Assets [Abstract] | ||
Foreign currency cash flow hedges - asset | $0 | $0 |
Liabilities [Abstract] | ||
Foreign currency cash flow hedges - liability | 0 | 0 |
Net investment hedge derivative | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets [Abstract] | ||
Foreign currency cash flow hedges - asset | 1,995 | 973 |
Liabilities [Abstract] | ||
Foreign currency cash flow hedges - liability | 506 | 810 |
Net investment hedge derivative | 16,900 | 15,567 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets [Abstract] | ||
Foreign currency cash flow hedges - asset | 0 | 0 |
Liabilities [Abstract] | ||
Foreign currency cash flow hedges - liability | 0 | 0 |
Net investment hedge derivative | $0 | $0 |
Financial_Instruments_Fair_Val
Financial Instruments - Fair Value Measurements (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $2,517,876 | $2,552,997 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $3,000,809 | $3,002,701 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (in hundredths) | 28.80% | 29.60% |
Pre-discrete tax rate | 29.30% | 30.70% |
Tax benefit on sale | $8,600,000 | |
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, lower bound | 0 | |
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, upper bound | $28,700,000 |
Equity_Incentive_Program_Detai
Equity Incentive Program (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Stock-based compensation expense [Abstract] | ||
Pre-tax compensation expense | $13,387 | $8,501 |
Tax benefit | -4,764 | -3,000 |
Total stock-based compensation expense, net of tax | $8,623 | $5,501 |
Stock Appreciation Rights (SARs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued during period (in shares) | 1,144,529 | |
Risk-free interest rate (in hundredths) | 1.51% | 1.70% |
Dividend yield (in hundredths) | 2.24% | 1.98% |
Expected life (in years) | 5 years 1 month | 5 years 4 months |
Volatility (in hundredths) | 27.19% | 30.81% |
Grant price (in dollars per share) | $73.28 | $82.51 |
Fair value at date of grant (in dollars per share) | $14.55 | $19.84 |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued during period (in shares) | 61,611 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued during period (in shares) | 145,545 | |
2015 Grant [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance share attainment | 64.35% | |
2015 Grant [Member] | Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value at date of grant (in dollars per share) | $73.28 | |
2014 Grant [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance share attainment | 63.31% | |
2014 Grant [Member] | Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value at date of grant (in dollars per share) | $82.51 |
Commitments_and_Contingent_Lia2
Commitments and Contingent Liabilities (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | |||
Accrual for environmental loss contingencies | $31,555 | $32,890 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Beginning balance | 49,388 | 42,924 | |
Provision for warranties | 11,075 | 13,619 | |
Settlements made | -13,395 | -12,680 | |
Other adjustments, including acquisitions and currency translation | -630 | 1,062 | |
Ending balance | $46,438 | $44,925 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net periodic benefit cost [Abstract] | ||
Total amount amortized out of accumulated other comprehensive income | $5,788 | $4,339 |
Defined contribution plan expense | 9,006 | 8,377 |
Knowles [Member] | ||
Net periodic benefit cost [Abstract] | ||
Net periodic benefit cost | 59 | |
Total amount amortized out of accumulated other comprehensive income | 61 | |
U.S. Pension Plans, Defined Benefit [Member] | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 3,915 | 3,721 |
Interest cost | 5,791 | 6,314 |
Expected return on plan assets | -10,393 | -10,398 |
Prior service cost (income) | 224 | 271 |
Recognized actuarial (gain) loss | 3,155 | 2,072 |
Transition obligation | 0 | 0 |
Other | 810 | 0 |
Net periodic benefit cost | 3,502 | 1,980 |
Foreign Pension Plans, Defined Benefit [Member] | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 1,688 | 1,515 |
Interest cost | 1,486 | 1,983 |
Expected return on plan assets | -2,019 | -2,029 |
Prior service cost (income) | 23 | 27 |
Recognized actuarial (gain) loss | 675 | 221 |
Transition obligation | 9 | 0 |
Other | 2 | 3 |
Net periodic benefit cost | 1,864 | 1,720 |
Supplemental Employee Retirement Plans, Defined Benefit [Member] | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 935 | 830 |
Interest cost | 1,266 | 1,537 |
Prior service cost (income) | 1,732 | 1,944 |
Recognized actuarial (gain) loss | 71 | -107 |
Net periodic benefit cost | 4,004 | 4,204 |
Post-Retirement Benefits [Member] | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 41 | 62 |
Interest cost | 128 | 157 |
Prior service cost (income) | -93 | -102 |
Recognized actuarial (gain) loss | -8 | 13 |
Net periodic benefit cost | $68 | $130 |
Other_Comprehensive_Earnings_D
Other Comprehensive Earnings (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Gain (loss) on euro net investment hedge, gross | $34,017 | ($3,236) |
Foreign currency translation adjustments [Abstract] | ||
Foreign currency translation adjustments, before tax | -72,203 | -18,506 |
Foreign currency translation adjustments, tax | -11,906 | 1,133 |
Total foreign currency translation, net of tax | -84,109 | -17,373 |
Pension and other postretirement benefit plans [Abstract] | ||
Pension and other postretirement benefit plans, before tax | 5,788 | 4,339 |
Pension and other postretirement benefit plans, tax | -1,962 | -1,505 |
Total pension and other postretirement benefit plans, net of tax | 3,826 | 2,834 |
Changes in fair value of cash flow hedges [Abstract] | ||
Changes in fair value of cash flow hedges, before tax | 1,629 | -943 |
Changes in fair value of cash flow hedges, tax | -570 | 330 |
Total cash flow hedges, net of tax | 1,059 | -613 |
Other comprehensive earnings other adjustment, net of tax [Abstract] | ||
Other, before tax | 241 | -106 |
Other, tax | -27 | -20 |
Other comprehensive earnings (loss) other adjustment, net of tax | 214 | -126 |
Total other comprehensive earnings [Abstract] | ||
Other comprehensive earnings (loss), before Tax | -64,545 | -15,216 |
Other comprehensive earnings (loss), tax | -14,465 | -62 |
Other comprehensive earnings (loss), net of tax | -79,010 | -15,278 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net earnings | 209,510 | 160,138 |
Other comprehensive earnings (loss), net of tax | -79,010 | -15,278 |
Comprehensive earnings | 130,500 | 144,860 |
Other Comprehensive Income Loss Reclassification Adjustment From AOCI Pension And Other Postretirement Benefit Plans Net Of Tax Abstract [Abstract] | ||
Amortization of actuarial losses | 3,902 | 2,199 |
Amortization of prior service costs | 1,886 | 2,140 |
Total before tax | 5,788 | 4,339 |
Tax provision | -1,962 | -1,505 |
Net of tax | 3,826 | 2,834 |
Other Comprehensive Income Loss Reclassification Adjustment From AOCI Derivatives Net of Tax [Abstract] | ||
Cash flow hedges | -153 | -214 |
Tax benefit | 54 | 75 |
Net of tax | ($99) | ($139) |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
segments | ||
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 4 | |
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | $1,715,501 | $1,802,570 |
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||
Interest expense, net | 32,037 | 32,655 |
Earnings before provision for income taxes and discontinued operations | 164,675 | 241,610 |
Provision for income taxes | 47,485 | 71,569 |
Earnings from continuing operations | 117,190 | 170,041 |
Energy Segment [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | 430,423 | 478,773 |
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||
Earnings before provision for income taxes and discontinued operations | 52,305 | 118,968 |
Engineered Systems Segment [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | 573,196 | 567,674 |
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||
Earnings before provision for income taxes and discontinued operations | 88,149 | 83,227 |
Fluids Segment [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | 340,236 | 345,009 |
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||
Earnings before provision for income taxes and discontinued operations | 54,634 | 57,942 |
Refrigeration and Food Equipment Segment [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | 372,097 | 411,493 |
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||
Earnings before provision for income taxes and discontinued operations | 36,150 | 44,862 |
Intersegment Elimination [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | -451 | -379 |
Total segments [Member] | ||
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||
Earnings before provision for income taxes and discontinued operations | 231,238 | 304,999 |
Corporate expense / other [Member] | ||
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||
Earnings before provision for income taxes and discontinued operations | $34,526 | $30,734 |
Share_Repurchases_Details
Share Repurchases (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Share Repurchases [Line Items] | |||
Number of treasury shares held | 95,633,809 | 92,880,644 | |
Purchase of common stock | $200,055,000 | $292,565,000 | |
November 2012 Authorization [Member] | |||
Share Repurchases [Line Items] | |||
Shares repurchased | 3,596,980 | ||
Average price per share for repurchased shares (in dollars per share) | $81.06 | ||
Authorized dollar amount for share repurchase program | 1,000,000,000 | ||
Purchase of common stock | $292,565,000 | ||
January 2015 Authorization [Member] | |||
Share Repurchases [Line Items] | |||
Number of shares authorized to be repurchased | 15,000,000 | ||
Shares repurchased | 2,753,165 | ||
Average price per share for repurchased shares (in dollars per share) | $72.66 | ||
Remaining number of shares authorized to be repurchased | 12,246,835 |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reconciliation of information used in computing basic and diluted earnings per share [Abstract] | ||
Earnings from continuing operations | $117,190 | $170,041 |
Earnings (loss) from discontinued operations, net | 92,320 | -9,903 |
Net earnings | $209,510 | $160,138 |
Basic earnings (loss) per common share: | ||
Earnings from continuing operations (in dollars per basic share) | $0.72 | $1 |
Earnings (loss) from discontinued operations, net (in dollars per basic share) | $0.57 | ($0.06) |
Net earnings (in dollars per basic share) | $1.30 | $0.94 |
Weighted average shares outstanding - basic (in shares) | 161,650,000 | 169,750,000 |
Diluted earnings (loss) per common share: | ||
Earnings from continuing operations (in dollars per diluted share) | $0.72 | $0.99 |
Earnings (loss) from discontinued operations, net (in dollars per diluted share) | $0.57 | ($0.06) |
Net earnings (in dollars per diluted share) | $1.28 | $0.93 |
Weighted average shares outstanding - diluted (in shares) | 163,323,000 | 172,013,000 |
Reconciliation Of Share Amounts Used In Computing Earnings Per Share [Abstract] | ||
Weighted average shares outstanding - basic (in shares) | 161,650,000 | 169,750,000 |
Dilutive effect of assumed exercise of employee stock options, SAR's and performance shares (in shares) | 1,673,000 | 2,263,000 |
Weighted average shares outstanding - diluted (in shares) | 163,323,000 | 172,013,000 |
Weighted average number of anti-dilutive potential common shares excluded from reconciliation calculations (in shares) | 56,000 | 48,000 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Subsequent Event [Line Items] | |
Subsequent acquisition purchase price | $500 |