Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Oct. 13, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | DOVER Corp | ||
Entity Central Index Key | 29,905 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | 154,965,665 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | Q3 | ||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2015 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,787,582 | $ 2,009,575 | $ 5,261,711 | $ 5,774,781 |
Cost of goods and services | 1,114,974 | 1,235,153 | 3,307,376 | 3,524,400 |
Gross profit | 672,608 | 774,422 | 1,954,335 | 2,250,381 |
Selling and administrative expenses | 395,688 | 426,160 | 1,233,017 | 1,298,388 |
Operating earnings | 276,920 | 348,262 | 721,318 | 951,993 |
Interest expense, net | 31,983 | 31,231 | 96,008 | 95,847 |
Other (income) expense, net | (367) | (1,032) | (5,810) | (7,074) |
Earnings before provision for income taxes and discontinued operations | 245,304 | 318,063 | 631,120 | 863,220 |
Provision for income taxes | 58,821 | 92,380 | 171,813 | 256,915 |
Earnings from continuing operations | 186,483 | 225,683 | 459,307 | 606,305 |
Earnings (loss) from discontinued operations, net | (385) | 6,161 | 268,697 | (364) |
Net earnings | $ 186,098 | $ 231,844 | $ 728,004 | $ 605,941 |
Earnings per share from continuing operations [Abstract] | ||||
Earnings from continuing operations (in dollars per basic share) | $ 1.20 | $ 1.36 | $ 2.90 | $ 3.62 |
Earnings from continuing operations (in dollars per diluted share) | 1.19 | 1.34 | 2.87 | 3.57 |
Earnings per share from discontinued operations: [Abstract] | ||||
Earnings (loss) from discontinued operations, net (in dollars per basic share) | 0 | 0.04 | 1.70 | 0 |
Earnings (loss) from discontinued operations, net (in dollars per diluted share) | 0 | 0.04 | 1.68 | 0 |
Net earnings per share: [Abstract] | ||||
Net earnings (in dollars per basic share) | 1.20 | 1.40 | 4.59 | 3.62 |
Net earnings (in dollars per diluted share) | $ 1.19 | $ 1.38 | $ 4.55 | $ 3.57 |
Weighted average shares outstanding: [Abstract] | ||||
Weighted average shares outstanding - basic | 155,300 | 166,021 | 158,507 | 167,401 |
Weighted average shares outstanding - diluted | 156,560 | 168,343 | 160,112 | 169,761 |
Dividends paid per common share (in dollars per share) | $ 0.42 | $ 0.40 | $ 1.22 | $ 1.15 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 186,098 | $ 231,844 | $ 728,004 | $ 605,941 |
Foreign currency translation adjustments [Abstract] | ||||
Foreign currency translation gains (losses) during period | (57,213) | (70,369) | (101,755) | (76,771) |
Reclassification of foreign currency translation losses to earnings upon sale of subsidiaries | 0 | (8,406) | (3,117) | (8,406) |
Total foreign currency translation | (57,213) | (78,775) | (104,872) | (85,177) |
Pension and other postretirement benefit plans [Abstract] | ||||
Amortization of actuarial losses included in net periodic pension cost | 2,575 | 1,287 | 7,763 | 4,172 |
Amortization of prior service cost included in net periodic pension cost | 1,227 | 1,516 | 3,682 | 4,300 |
Total pension and other postretirement benefit plans | 3,802 | 2,803 | 11,445 | 8,472 |
Changes in fair value of cash flow hedges [Abstract] | ||||
Unrealized net (losses) gains arising during period | 185 | (466) | 536 | (861) |
Net (gains) losses reclassified into earnings | (678) | 169 | (207) | (20) |
Total cash flow hedges | (493) | (297) | 329 | (881) |
Other comprehensive earnings (loss) other adjustment | 393 | 927 | 884 | 1,546 |
Other comprehensive earnings (loss) | (53,511) | (75,342) | (92,214) | (76,040) |
Comprehensive earnings | $ 132,587 | $ 156,502 | $ 635,790 | $ 529,901 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 662,673 | $ 681,581 |
Receivables, net of allowances | 1,193,844 | 1,186,746 |
Inventories, net | 810,715 | 863,737 |
Prepaid and other current assets | 84,224 | 101,482 |
Deferred tax assets | 63,373 | 63,276 |
Total current assets | 2,814,829 | 2,896,822 |
Property, plant and equipment, net | 824,032 | 837,069 |
Goodwill | 3,441,780 | 3,491,557 |
Intangible assets, net | 1,230,312 | 1,369,520 |
Other assets and deferred charges | 167,867 | 168,246 |
Assets of discontinued operations | 0 | 327,171 |
Total assets | 8,478,820 | 9,090,385 |
Current liabilities: | ||
Notes payable and current maturities of long-term debt | 461,305 | 777,956 |
Accounts payable | 622,807 | 615,332 |
Accrued compensation and employee benefits | 215,569 | 272,822 |
Accrued insurance | 103,615 | 95,896 |
Other accrued expenses | 248,052 | 266,277 |
Federal and other taxes on income | 17,351 | 11,071 |
Total current liabilities | 1,668,699 | 2,039,354 |
Long-term debt | 2,224,943 | 2,253,041 |
Deferred income taxes | 569,203 | 564,207 |
Other liabilities | 449,671 | 482,340 |
Liabilities of discontinued operations | 0 | 50,718 |
Stockholders' Equity: | ||
Total stockholders' equity | 3,566,304 | 3,700,725 |
Total liabilities and stockholders' equity | $ 8,478,820 | $ 9,090,385 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Allowance for doubtful accounts receivable | $ 18,937 | $ 18,894 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (unaudited) - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Earnings (Loss) [Member] | Treasury Stock [Member] |
Balance at Dec. 31, 2014 | $ 3,700,725 | $ 255,893 | $ 900,833 | $ 7,074,782 | $ (158,931) | $ (4,371,852) |
Net earnings | 728,004 | 0 | 0 | 728,004 | 0 | 0 |
Dividends paid | (192,744) | 0 | 0 | (192,744) | 0 | 0 |
Common stock issued for the exercise of share-based awards | (3,349) | 181 | (3,530) | 0 | 0 | 0 |
Tax benefit from the exercise of share-based awards | 521 | 0 | 521 | 0 | 0 | 0 |
Share-based compensation expense | 25,525 | 0 | 25,525 | 0 | 0 | 0 |
Common stock acquired | (600,164) | 0 | 0 | 0 | 0 | (600,164) |
Other comprehensive earnings (loss) | (92,214) | 0 | 0 | 0 | (92,214) | 0 |
Balance at Sep. 30, 2015 | $ 3,566,304 | $ 256,074 | $ 923,349 | $ 7,610,042 | $ (251,145) | $ (4,972,016) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares | Sep. 30, 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 STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities of Continuing Operations | ||
Net earnings | $ 728,004 | $ 605,941 |
Adjustments to reconcile net earnings to cash from operating activities: | ||
(Earnings) loss from discontinued operations, net | (268,697) | 364 |
Depreciation and amortization | 235,383 | 225,902 |
Stock-based compensation | 25,525 | 24,710 |
Cash effect of changes in current assets and liabilities (excluding effects of acquisitions, dispositions and foreign exchange): | ||
Accounts receivable | (40,528) | (209,881) |
Inventories | 22,058 | (107,093) |
Prepaid expenses and other assets | (1,441) | (15,944) |
Accounts payable | 33,979 | 91,147 |
Accrued compensation and employee benefits | (63,487) | (20,843) |
Accrued expenses and other liabilities | (5,943) | 7,111 |
Accrued and deferred taxes, net | (16,623) | (71,996) |
Other, net | (15,774) | (24,032) |
Net cash provided by operating activities of continuing operations | 632,456 | 505,386 |
Investing Activities of Continuing Operations | ||
Additions to property, plant and equipment | (111,279) | (108,777) |
Acquisitions (net of cash and cash equivalents acquired) | (6,500) | (365,550) |
Proceeds from the sale of property, plant and equipment | 9,471 | 9,943 |
Proceeds from the sale of businesses | 689,314 | 178,112 |
Other | 0 | (21,766) |
Net cash provided by (used in) investing activities of continuing operations | 581,006 | (308,038) |
Financing Activities of Continuing Operations | ||
Cash received from Knowles Corporation, net of cash distributed | 0 | 359,837 |
Purchase of common stock | (600,164) | (392,588) |
Net proceeds from exercise of stock options and SARs, including tax benefits | 3,626 | 18,268 |
Change in commercial paper and notes payable, net | (316,800) | (75,980) |
Dividends paid to stockholders | (192,744) | (192,633) |
Payments to settle employee tax obligations on exercise of share-based awards | (4,808) | (19,800) |
Reduction of long-term debt | (76) | (1,613) |
Net cash used in financing activities | (1,110,966) | (304,509) |
Cash Flows from Discontinued Operations | ||
Net cash provided by (used in) operating activities of discontinued operations | (91,689) | 45,766 |
Net cash provided by (used in) investing activities of discontinued operations | (1,984) | (17,637) |
Net cash provided by (used in) discontinued operations | (93,673) | 28,129 |
Effect of exchange rate changes on cash and cash equivalents | (27,731) | (18,616) |
Net decrease in cash and cash equivalents | (18,908) | (97,648) |
Cash and cash equivalents at beginning of period | 681,581 | 803,882 |
Cash and cash equivalents at end of period | $ 662,673 | $ 706,234 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 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 at that time to divest these businesses, which were subsequently sold in 2015. Therefore, the Company has classified the results of operations, cash flows, and related assets and liabilities for these businesses as 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 | 9 Months Ended |
Sep. 30, 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 $359,837 was received during the nine months ended September 30, 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 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 | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions During the nine months ended September 30, 2015 , the Company acquired a product line in the Refrigeration & Food Equipment segment for a net cash consideration of $6,500 . The Company assigned $2,076 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 allocation 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. See Note 7 Goodwill and Other Intangible Assets for purchase price adjustments. 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 and nine months ended September 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenue from continuing operations: As reported $ 1,787,582 $ 2,009,575 $ 5,261,711 $ 5,774,781 Pro forma 1,787,582 2,079,626 5,262,218 6,019,415 Earnings from continuing operations: As reported $ 186,483 $ 225,683 $ 459,307 $ 606,305 Pro forma (1) 186,483 231,805 465,430 624,180 Basic earnings per share from continuing operations: As reported $ 1.20 $ 1.36 $ 2.90 $ 3.62 Pro forma (1) 1.20 1.40 2.94 3.73 Diluted earnings per share from continuing operations: As reported $ 1.19 $ 1.34 $ 2.87 $ 3.57 Pro forma (1) 1.19 1.38 2.91 3.68 (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 | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 4. Discontinued Operations On March 2, 2015, the Company completed the sale of Datamax O'Neil for total proceeds of $185,000 , which resulted in a net gain on sale of $87,781 . On April 24, 2015, the Company completed the sale of Sargent Aerospace for total proceeds of $500,000 , which resulted in a net gain on sale of $177,769 . The Company paid approximately $82,800 of taxes relating to the net gain on sale of these businesses which is reflected in the cash flows of discontinued operations. These businesses were previously included in the results of the Engineered Systems segment and were reclassified to discontinued operations in the fourth quarter of 2014 in connection with their impending sale at that time. The results of discontinued operations for the nine months ended September 30, 2015 and the three and nine months ended September 30, 2014 reflect the net earnings of these businesses prior to their respective sale dates. The results for the nine months ended September 30, 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 $27,055 for the nine months ended September 30, 2014 , which are also reflected in the results of discontinued operations. See also Note 2 2014 Spin-off of Knowles Corporation . Summarized results of the Company’s discontinued operations are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenue $ — $ 83,260 $ 72,869 $ 490,517 Gain (loss) on sale, net of tax (31 ) 512 265,550 (3,661 ) (Loss) earnings from operations before taxes (100 ) 10,279 8,608 14,642 Provision for income taxes (254 ) (4,630 ) (5,461 ) (11,345 ) (Loss) earnings from operations, net of tax (354 ) 5,649 3,147 3,297 (Loss) earnings from discontinued operations, net of tax $ (385 ) $ 6,161 $ 268,697 $ (364 ) Assets and liabilities of discontinued operations are summarized below: September 30, 2015 December 31, 2014 Assets of Discontinued Operations: Accounts receivable $ — $ 46,691 Inventories, net — 58,401 Prepaid and other current assets — 8,571 Total current assets — 113,663 Property, plant and equipment, net — 31,573 Goodwill and intangible assets, net — 181,798 Other assets and deferred charges — 137 Total assets $ — $ 327,171 Liabilities of Discontinued Operations: Accounts payable $ — $ 21,199 Other current liabilities — 17,675 Total current liabilities — 38,874 Deferred income taxes — 8,752 Other liabilities — 3,092 Total liabilities $ — $ 50,718 At December 31, 2014 , the assets and liabilities of discontinued operations relate to Sargent Aerospace and Datamax O'Neil, which were sold in 2015. Any remaining assets or liabilities relating to these businesses or other businesses previously sold are reflected in continuing operations. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory, Net [Abstract] | |
Inventory Disclosure | 5. Inventories, net September 30, 2015 December 31, 2014 Raw materials $ 342,173 $ 352,016 Work in progress 147,225 147,715 Finished goods 433,631 483,912 Subtotal 923,029 983,643 Less reserves (112,314 ) (119,906 ) Total $ 810,715 $ 863,737 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | 6. Property, Plant and Equipment, net September 30, 2015 December 31, 2014 Land $ 54,409 $ 55,076 Buildings and improvements 536,881 537,474 Machinery, equipment and other 1,741,132 1,698,638 Subtotal 2,332,422 2,291,188 Less accumulated depreciation (1,508,390 ) (1,454,119 ) Total $ 824,032 $ 837,069 Depreciation expense totaled $38,191 and $37,723 for the three months ended September 30, 2015 and 2014 , respectively. For the nine months ended September 30, 2015 and 2014 , depreciation expense was $116,807 and $112,548 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 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 — — — 2,076 2,076 Purchase price adjustments 8,604 — — — 8,604 Disposition of business (1) — (19,128 ) — — (19,128 ) Foreign currency translation (8,923 ) (12,586 ) (17,426 ) (2,394 ) (41,329 ) Balance at September 30, 2015 $ 1,048,416 $ 1,238,464 $ 592,237 $ 562,663 $ 3,441,780 (1) Amount reflects additional goodwill allocated to Sargent Aerospace upon its disposition, based on the fair value of this business relative to the remaining entities within the Engineered Systems segment. During the nine months ended September 30, 2015 , the Company recorded adjustments totaling $8,604 to goodwill relating to the finalization of the purchase price allocation to assets acquired and liabilities assumed for the 2014 acquisition of Accelerated Companies. 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. The Company has considered the economic environments in which its businesses operate, particularly the Energy segment due to the 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. The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset: September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Trademarks $ 137,004 $ 42,487 $ 138,650 $ 34,097 Patents 147,867 113,173 150,404 108,484 Customer Intangibles 1,408,808 567,273 1,429,906 484,449 Unpatented Technologies 91,167 53,394 92,480 45,812 Drawings & Manuals 34,736 15,163 36,377 13,087 Distributor Relationships 64,614 36,802 64,614 34,377 Other 24,087 15,335 24,214 12,737 Total 1,908,283 843,627 1,936,645 733,043 Unamortized intangible assets: Trademarks 165,656 165,918 Total intangible assets, net $ 1,230,312 $ 1,369,520 Amortization expense totaled $38,983 and $36,758 for the three months ended September 30, 2015 and 2014 , respectively. For the nine months ended September 30, 2015 and 2014 , amortization expense was $118,576 and $113,354 , respectively. |
Restructuring Activities
Restructuring Activities | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Energy $ 6,183 $ 213 $ 26,561 $ 1,703 Engineered Systems 3,694 172 8,796 3,193 Fluids 1,382 456 3,537 994 Refrigeration & Food Equipment 91 — (434 ) 10 Corporate 169 603 280 1,760 Total $ 11,519 $ 1,444 $ 38,740 $ 7,660 These amounts are classified in the unaudited Condensed Consolidated Statements of Earnings as follows: Cost of goods and services $ 3,943 $ 93 $ 13,871 $ 1,825 Selling and administrative expenses 7,576 1,351 24,869 5,835 Total $ 11,519 $ 1,444 $ 38,740 $ 7,660 The restructuring expenses of $11,519 and $38,740 incurred in the three and nine months ended September 30, 2015 related to restructuring programs initiated during 2015 and 2014 . These programs are designed to better align the Company's costs and operations with current market conditions through targeted facility consolidations, headcount reductions and other measures to further optimize operations. The Company expects the programs currently underway to be substantially completed in the next twelve to eighteen months. The $11,519 of restructuring charges incurred during the third quarter of 2015 primarily included the following items: • The Energy segment incurred restructuring charges of $6,183 related to various programs across the segment focused on workforce reductions and field and service consolidations. These programs were initiated to better align cost base with the anticipated demand environment. • The Engineered Systems segment recorded $3,694 of restructuring charges relating to headcount reductions across various businesses primarily related to optimization of administrative functions within the Printing & Identification platform and U.S. manufacturing consolidation within the Industrial platform. • The remaining segments and corporate incurred restructuring charges primarily related to headcount reductions. 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 22,174 16,566 38,740 Payments (27,975 ) (8,927 ) (36,902 ) Foreign currency translation (516 ) (345 ) (861 ) Other, including write-offs of fixed assets 2,210 (9,470 ) (7,260 ) Balance at September 30, 2015 $ 11,251 $ 4,487 $ 15,738 The accrual balance at September 30, 2015 primarily reflects restructuring plans initiated during the year, as well as ongoing lease commitment obligations for facilities closed in earlier periods. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings | 9. Borrowings Borrowings consist of the following: September 30, 2015 December 31, 2014 Short-term Current portion of long-term debt $ 300,105 $ 299,956 Commercial paper 161,200 478,000 $ 461,305 $ 777,956 September 30, 2015 December 31, 2014 Long-term 4.875% 10-year notes due October 15, 2015 $ 299,984 $ 299,836 5.45% 10-year notes due March 15, 2018 349,175 348,928 2.125% 7-year notes due December 1, 2020 (Euro-denominated) 335,355 363,970 4.30% 10-year notes due March 1, 2021 449,859 449,839 6.65% 30-year debentures due June 1, 2028 199,543 199,517 5.375% 30-year debentures due October 15, 2035 296,804 296,685 6.60% 30-year notes due March 15, 2038 248,014 247,948 5.375% 30-year notes due March 1, 2041 345,949 345,830 Other 365 444 Total long-term debt 2,525,048 2,552,997 Less current installments (300,105 ) (299,956 ) $ 2,224,943 $ 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 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 September 30, 2015, and it expects to remain in compliance with all of its debt covenants. On October 15, 2015, the Company utilized commercial paper to repay the outstanding principal balance of $300.0 million on its then due 4.875% 10-year notes. The Company intends to issue new notes in the fourth quarter of 2015. Interest expense and interest income for the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Interest expense $ 33,098 $ 32,501 $ 99,156 $ 99,125 Interest income (1,115 ) (1,270 ) (3,148 ) (3,278 ) Interest expense, net $ 31,983 $ 31,231 $ 96,008 $ 95,847 Letters of Credit As of September 30, 2015 , the Company had approximately $114,559 outstanding in letters of credit and guarantees with financial institutions, which expire at various dates in the last quarter of 2015 through 2020 . These letters of credit are primarily maintained as security for insurance, warranty, and other performance obligations. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 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 to occur within the next twelve months that are denominated in non-functional currencies, with currency forward or collar contracts designated as cash flow hedges. At September 30, 2015 and December 31, 2014 , the Company had contracts with U.S. dollar equivalent notional amounts of $33,026 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 $79,858 and $52,392 at September 30, 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 had an outstanding floating-to-floating cross currency swap agreement for a total notional amount of $50,000 in exchange for Swiss francs CHF 65,100 , which matured on October 15, 2015. This transaction hedged a portion of the Company’s net investment in CHF-denominated operations. The agreement qualified 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. These cumulative losses will remain in other comprehensive income until the Company liquidates its Swiss-franc-denominated operations. The fair values at September 30, 2015 and December 31, 2014 reflected losses of $16,285 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 settled this hedge by payment of cash at fair value upon maturity on October 15, 2015. The following table sets forth the fair values of derivative instruments held by the Company as of September 30, 2015 and December 31, 2014 and the balance sheet lines in which they are recorded: Fair Value Asset (Liability) September 30, 2015 December 31, 2014 Balance Sheet Caption Foreign currency forward / collar contracts $ 1,182 $ 973 Prepaid / Other assets Foreign currency forward / collar contracts (505 ) (810 ) Other accrued expenses Net investment hedge - cross currency swap (16,285 ) (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 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Gain on Euro-denominated debt $ 300 $ 26,357 $ 28,675 $ 29,722 Gain (loss) on Swiss franc cross-currency swap 3,331 5,489 (718 ) 5,466 Total gain on net investment hedges before tax 3,631 31,846 27,957 35,188 Tax expense (1,271 ) (11,146 ) (9,785 ) (12,316 ) Net gain on net investment hedges, net of tax $ 2,360 $ 20,700 $ 18,172 $ 22,872 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 September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Foreign currency cash flow hedges $ — $ 1,182 $ — $ — $ 973 $ — Liabilities: Foreign currency cash flow hedges — 505 — — 810 — Net investment hedge derivative — 16,285 — — 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 September 30, 2015 and December 31, 2014 was $2,875,049 and $3,002,701 , respectively, compared to the carrying value of $2,525,048 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 September 30, 2015 and December 31, 2014 due to the short-term nature of these instruments. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The effective tax rates for continuing operations for the three months ended September 30, 2015 and 2014 were 24.0% and 29.0% , respectively. Reflected in the effective tax rate for the three months ended September 30, 2015 and 2014 are favorable discrete items of $8,131 and $5,524 , respectively. Excluding these discrete items, the effective tax rates for the three months ended September 30, 2015 and 2014 were 27.3% and 30.8% , respectively. The 2015 discrete items principally resulted from the conclusion of certain state tax audits and an adjustment of our tax accounts to the return filed. The 2014 discrete items were primarily the result of the release of a valuation allowance on net operating losses outside the U.S. The reduction in the effective tax rate year over year is principally due to a change in the geographic mix of earnings as well as restructuring of foreign operations. The effective tax rates for continuing operations for the nine months ended September 30, 2015 and 2014 were 27.2% and 29.8% , respectively. Reflected in the effective tax rate for the nine months ended September 30, 2015 and 2014 are favorable discrete items of $8,131 and $7,429 , respectively, resulting from the same items as noted above. Excluding these discrete items, the effective tax rate for the nine months ended September 30, 2015 and 2014 was 28.5% and 30.6% , respectively. The decrease in the effective tax rate for the nine months ended September 30, 2015 relative to the prior year is due to the same factors discussed above. Additionally, in the second quarter of 2015, the Company generated a $325,000 gain for tax purposes on the sale of Sargent Aerospace. The tax liability resulting from the sale was $108,000 which reflects utilization of the $8,600 tax benefit generated in the first quarter by the sale of Datamax O'Neil. This gain and related tax provision are reflected within discontinued operations. See Note 4 Discontinued Operations for further discussion. 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. The Company believes 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 $18,200 . A portion of these unrecognized tax benefits relate to companies reported as discontinued operations. |
Equity Incentive Program
Equity Incentive Program | 9 Months Ended |
Sep. 30, 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 % 1.70 % 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 was 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 nine months ended September 30, 2015 : Performance shares 2015 2014 Fair value per share at date of grant $ 73.28 $ 82.51 Average attainment rate reflected in expense 31.78 % 50.16 % 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Pre-tax compensation expense $ 6,674 $ 8,297 $ 25,525 $ 24,710 Tax benefit (2,368 ) (2,914 ) (9,049 ) (8,749 ) Total stock-based compensation expense, net of tax $ 4,306 $ 5,383 $ 16,476 $ 15,961 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 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 September 30, 2015 and December 31, 2014 , the Company has reserves totaling $30,725 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 September 30, 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 September 30, 2015 and 2014 are as follows: 2015 2014 Beginning Balance, January 1 $ 49,388 $ 42,924 Provision for warranties 36,821 42,242 Settlements made (41,842 ) (41,717 ) Other adjustments, including acquisitions and currency translation (1,245 ) 2,780 Ending balance, September 30 $ 43,122 $ 46,229 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, U.S. Plan Non-U.S. Plans U.S. Plan Non-U.S. Plans 2015 2014 2015 2014 2015 2014 2015 2014 Service Cost $ 3,915 $ 3,722 $ 1,655 $ 1,282 $ 11,746 $ 11,164 $ 5,006 $ 4,327 Interest Cost 5,790 6,314 1,482 1,710 17,372 18,943 4,444 5,716 Expected return on plan assets (10,392 ) (10,398 ) (2,012 ) (1,771 ) (31,178 ) (31,195 ) (6,042 ) (5,882 ) Amortization: Prior service cost 225 271 22 22 673 812 67 76 Recognized actuarial loss 3,155 2,073 665 183 9,465 6,217 2,001 626 Transition obligation — — (15 ) 1 — — 3 3 Curtailments, special termination benefits, and settlements (1) — — 2 2 810 — 5 5 Net periodic expense $ 2,693 $ 1,982 $ 1,799 $ 1,429 $ 8,888 $ 5,941 $ 5,484 $ 4,871 (1) One-time charges of $810 reflected in pension expense for the nine months ended September 30, 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 nine months ended September 30, 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 not significant for the nine months ended September 30, 2014 . The expense relating to these plans is reflected in earnings from discontinued operations. Non-Qualified Supplemental Benefits Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Service Cost $ 934 $ 830 $ 2,804 $ 2,490 Interest Cost 1,266 1,537 3,797 4,611 Amortization: Prior service cost 1,731 1,944 5,195 5,831 Recognized actuarial loss (gain) 71 (107 ) 214 (320 ) Net periodic expense $ 4,002 $ 4,204 $ 12,010 $ 12,612 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Service Cost $ 41 $ 63 $ 122 $ 187 Interest Cost 128 156 384 470 Amortization: Prior service cost (93 ) (103 ) (279 ) (307 ) Recognized actuarial (gain) loss (8 ) 14 (23 ) 40 Net periodic expense $ 68 $ 130 $ 204 $ 390 The total amount amortized out of accumulated other comprehensive income into net periodic benefit expense totaled $5,753 and $4,298 for the three months ended September 30, 2015 and 2014 , respectively, and $17,316 and $12,978 for the nine months months ended September 30, 2015 and 2014 , respectively. The amortization included in other comprehensive income for the nine months ended September 30, 2014 includes insignificant amounts related 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 $7,601 , and $8,295 for the three months ended September 30, 2015 and 2014 , respectively, and $24,612 and $25,537 for the nine months ended September 30, 2015 and 2014 . |
Other Comprehensive Earnings
Other Comprehensive Earnings | 9 Months Ended |
Sep. 30, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive Earnings | 15. Other Comprehensive (Loss) Earnings The amounts recognized in other comprehensive loss were as follows: Three Months Ended Three Months Ended September 30, 2015 September 30, 2014 Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation adjustments (1) $ (55,942 ) $ (1,271 ) $ (57,213 ) $ (67,629 ) $ (11,146 ) $ (78,775 ) Pension and other postretirement benefit plans 5,753 (1,951 ) 3,802 4,298 (1,495 ) 2,803 Changes in fair value of cash flow hedges (760 ) 267 (493 ) (457 ) 160 (297 ) Other 445 (52 ) 393 941 (14 ) 927 Total other comprehensive loss $ (50,504 ) $ (3,007 ) $ (53,511 ) $ (62,847 ) $ (12,495 ) $ (75,342 ) (1) Foreign currency translation adjustments for the three months ended September 30, 2015 and 2014 include pre-tax gains of $3,631 and $31,846 on the Company's net investment hedges, respectively, which resulted in a tax expense of $1,271 and $11,146 reflected in other comprehensive income. See also Note 10 Financial Instruments . Nine Months Ended Nine Months Ended September 30, 2015 September 30, 2014 Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation adjustments (2) $ (95,087 ) $ (9,785 ) $ (104,872 ) $ (72,861 ) $ (12,316 ) $ (85,177 ) Pension and other postretirement benefit plans 17,316 (5,871 ) 11,445 12,978 (4,506 ) 8,472 Changes in fair value of cash flow hedges 505 (176 ) 329 (1,355 ) 474 (881 ) Other 1,003 (119 ) 884 1,708 (162 ) 1,546 Total other comprehensive loss $ (76,263 ) $ (15,951 ) $ (92,214 ) $ (59,530 ) $ (16,510 ) $ (76,040 ) (2) Foreign currency translation adjustments for the nine months ended September 30, 2015 and 2014 include pre-tax gains on the Company's net investment hedges of $27,957 and $35,188 which resulted in tax expense of $9,785 and $12,316 reflected in other comprehensive income for these respective periods. See also Note 10 Financial Instruments . Total comprehensive earnings were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net earnings $ 186,098 $ 231,844 $ 728,004 $ 605,941 Other comprehensive loss (53,511 ) (75,342 ) (92,214 ) (76,040 ) Comprehensive earnings $ 132,587 $ 156,502 $ 635,790 $ 529,901 Amounts reclassified from accumulated other comprehensive earnings (loss) to earnings (loss) during the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Pension and postretirement benefit plans: Amortization of actuarial losses $ 3,868 $ 2,164 $ 11,660 $ 6,566 Amortization of prior service costs 1,885 2,134 5,656 6,412 Total before tax 5,753 4,298 17,316 12,978 Tax provision (1,951 ) (1,495 ) (5,871 ) (4,506 ) Net of tax $ 3,802 $ 2,803 $ 11,445 $ 8,472 Cash flow hedges: Net (gains) losses reclassified into earnings $ (1,042 ) $ 261 $ (318 ) $ (30 ) Tax benefit (provision) 364 (92 ) 111 10 Net of tax $ (678 ) $ 169 $ (207 ) $ (20 ) 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 | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenue: Energy $ 363,872 $ 507,334 $ 1,160,339 $ 1,467,123 Engineered Systems 579,396 612,301 1,745,683 1,793,796 Fluids 352,018 361,797 1,043,765 1,053,081 Refrigeration & Food Equipment 492,460 528,807 1,312,672 1,462,657 Intra-segment eliminations (164 ) (664 ) (748 ) (1,876 ) Total consolidated revenue $ 1,787,582 $ 2,009,575 $ 5,261,711 $ 5,774,781 Earnings from continuing operations: Segment earnings: Energy $ 48,726 $ 122,738 $ 141,940 $ 356,697 Engineered Systems 102,866 108,800 287,717 293,793 Fluids 74,911 67,559 199,713 188,613 Refrigeration & Food Equipment 76,665 78,012 178,547 207,800 Total segments 303,168 377,109 807,917 1,046,903 Corporate expense / other (1) 25,881 27,815 80,789 87,836 Net interest expense 31,983 31,231 96,008 95,847 Earnings before provision for income taxes and discontinued operations 245,304 318,063 631,120 863,220 Provision for taxes 58,821 92,380 171,813 256,915 Earnings from continuing operations $ 186,483 $ 225,683 $ 459,307 $ 606,305 (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 | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Share repurchases | 17. Share Repurchases A summary of share repurchase activity is shown below. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Shares of common stock repurchased 1,510,124 857,016 8,228,542 4,743,926 Spending on share repurchases (in thousands) $ 100,030 $ 75,017 $ 600,164 $ 392,588 Average price paid per share $ 66.24 $ 87.53 $ 72.94 $ 82.76 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. This plan replaced the Company's $1.0 billion share repurchase program, which it completed in 2014. During the three and nine months ended September 30, 2015 , the Company repurchased 1,510,124 and 8,228,542 shares of common stock under the January 2015 authorization. As of September 30, 2015 , there were 6,771,458 shares available to purchase under this plan. Treasury shares increased to 101,109,186 at September 30, 2015 from a balance of 92,880,644 at December 31, 2014 . |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Earnings from continuing operations $ 186,483 $ 225,683 $ 459,307 $ 606,305 Earnings (loss) from discontinued operations, net (385 ) 6,161 268,697 (364 ) Net earnings $ 186,098 $ 231,844 $ 728,004 $ 605,941 Basic earnings (loss) per common share: Earnings from continuing operations $ 1.20 $ 1.36 $ 2.90 $ 3.62 Earnings (loss) from discontinued operations, net $ — $ 0.04 $ 1.70 $ — Net earnings $ 1.20 $ 1.40 4.59 $ 3.62 Weighted average shares outstanding 155,300,000 166,021,000 158,507,000 167,401,000 Diluted earnings (loss) per common share: Earnings from continuing operations $ 1.19 $ 1.34 $ 2.87 $ 3.57 Earnings (loss) from discontinued operations, net $ — $ 0.04 $ 1.68 $ — Net earnings $ 1.19 $ 1.38 $ 4.55 $ 3.57 Weighted average shares outstanding 156,560,000 168,343,000 160,112,000 169,761,000 The following table is a reconciliation of the share amounts used in computing earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Weighted average shares outstanding - Basic 155,300,000 166,021,000 158,507,000 167,401,000 Dilutive effect of assumed exercise of employee stock options and SARs and vesting of performance shares 1,260,000 2,322,000 1,605,000 2,360,000 Weighted average shares outstanding - Diluted 156,560,000 168,343,000 160,112,000 169,761,000 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 approximately 47,000 and 54,000 for the three months ended September 30, 2015 and 2014 , respectively, and 44,000 and 10,000 for the nine months ended September 30, 2014 , respectively. |
Recent Accounting Standards
Recent Accounting Standards | 9 Months Ended |
Sep. 30, 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 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 July 2015, the FASB approved a one-year deferral of this standard, with a new effective date for fiscal years beginning after 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. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent events | 20. Subsequent Events The Company assessed events occurring subsequent to September 30, 2015 for potential recognition and disclosure in the consolidated financial statements. No events have occurred that would require adjustment to the consolidated financial statements. Acquisitions The Company has signed agreements to acquire two businesses for an aggregate purchase price of approximately $520.0 million that are expected to close during the fourth quarter. Specifically, the Company agreed to acquire a consumables digital textile ink business, JK Group S.p.A ("JK Group"), within its Engineered Systems segment to complement its Printing & Identification platform. The Company also agreed to acquire Gala Industries Inc. ("Gala") which will be combined with Maag Pump within its Pumps platform of Fluids to further expand its product portfolio and its integrated systems capability in the plastics and polymers markets. These acquisitions are in addition to the binding offer to acquire the dispenser and system businesses of Tokheim Group S.A.S for a purchase price of approximately $465.0 million . Tokheim, with an expected close in early 2016, will enable the Company to provide the most complete solutions available for its retail fueling customers. Cross currency swap settlement On October 15, 2015, the Company settled the outstanding liability on its floating-to-floating cross currency swap agreement for a total of $17.8 million . Notes due October 15, 2015 On October 15, 2015, the Company utilized commercial paper to repay the outstanding principal balance of $300.0 million on its then due 4.875% 10-year notes. The Company intends to issue new notes in the fourth quarter of 2015. |
Spin Off of Knowles (Tables)
Spin Off of Knowles (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Spin Off [Abstract] | |
Summary of the assets and liabilities transferred to Knowles as part of the separation | 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) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenue from continuing operations: As reported $ 1,787,582 $ 2,009,575 $ 5,261,711 $ 5,774,781 Pro forma 1,787,582 2,079,626 5,262,218 6,019,415 Earnings from continuing operations: As reported $ 186,483 $ 225,683 $ 459,307 $ 606,305 Pro forma (1) 186,483 231,805 465,430 624,180 Basic earnings per share from continuing operations: As reported $ 1.20 $ 1.36 $ 2.90 $ 3.62 Pro forma (1) 1.20 1.40 2.94 3.73 Diluted earnings per share from continuing operations: As reported $ 1.19 $ 1.34 $ 2.87 $ 3.57 Pro forma (1) 1.19 1.38 2.91 3.68 (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) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenue $ — $ 83,260 $ 72,869 $ 490,517 Gain (loss) on sale, net of tax (31 ) 512 265,550 (3,661 ) (Loss) earnings from operations before taxes (100 ) 10,279 8,608 14,642 Provision for income taxes (254 ) (4,630 ) (5,461 ) (11,345 ) (Loss) earnings from operations, net of tax (354 ) 5,649 3,147 3,297 (Loss) earnings from discontinued operations, net of tax $ (385 ) $ 6,161 $ 268,697 $ (364 ) |
Assets and liabilities of discontinued operations | Assets and liabilities of discontinued operations are summarized below: September 30, 2015 December 31, 2014 Assets of Discontinued Operations: Accounts receivable $ — $ 46,691 Inventories, net — 58,401 Prepaid and other current assets — 8,571 Total current assets — 113,663 Property, plant and equipment, net — 31,573 Goodwill and intangible assets, net — 181,798 Other assets and deferred charges — 137 Total assets $ — $ 327,171 Liabilities of Discontinued Operations: Accounts payable $ — $ 21,199 Other current liabilities — 17,675 Total current liabilities — 38,874 Deferred income taxes — 8,752 Other liabilities — 3,092 Total liabilities $ — $ 50,718 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory, Net [Abstract] | |
Components of Inventory | September 30, 2015 December 31, 2014 Raw materials $ 342,173 $ 352,016 Work in progress 147,225 147,715 Finished goods 433,631 483,912 Subtotal 923,029 983,643 Less reserves (112,314 ) (119,906 ) Total $ 810,715 $ 863,737 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment, net | September 30, 2015 December 31, 2014 Land $ 54,409 $ 55,076 Buildings and improvements 536,881 537,474 Machinery, equipment and other 1,741,132 1,698,638 Subtotal 2,332,422 2,291,188 Less accumulated depreciation (1,508,390 ) (1,454,119 ) Total $ 824,032 $ 837,069 |
Goodwill and Other Intangible34
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill [Line Items] | |
Goodwill | The following table provides the changes in carrying value of goodwill by segment for the nine months ended September 30, 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 — — — 2,076 2,076 Purchase price adjustments 8,604 — — — 8,604 Disposition of business (1) — (19,128 ) — — (19,128 ) Foreign currency translation (8,923 ) (12,586 ) (17,426 ) (2,394 ) (41,329 ) Balance at September 30, 2015 $ 1,048,416 $ 1,238,464 $ 592,237 $ 562,663 $ 3,441,780 (1) Amount reflects additional goodwill allocated to Sargent Aerospace upon its disposition, based on the fair value of this business relative to the remaining entities within the Engineered Systems segment. |
Schedule of Intangible Assets | The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset: September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Trademarks $ 137,004 $ 42,487 $ 138,650 $ 34,097 Patents 147,867 113,173 150,404 108,484 Customer Intangibles 1,408,808 567,273 1,429,906 484,449 Unpatented Technologies 91,167 53,394 92,480 45,812 Drawings & Manuals 34,736 15,163 36,377 13,087 Distributor Relationships 64,614 36,802 64,614 34,377 Other 24,087 15,335 24,214 12,737 Total 1,908,283 843,627 1,936,645 733,043 Unamortized intangible assets: Trademarks 165,656 165,918 Total intangible assets, net $ 1,230,312 $ 1,369,520 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Energy $ 6,183 $ 213 $ 26,561 $ 1,703 Engineered Systems 3,694 172 8,796 3,193 Fluids 1,382 456 3,537 994 Refrigeration & Food Equipment 91 — (434 ) 10 Corporate 169 603 280 1,760 Total $ 11,519 $ 1,444 $ 38,740 $ 7,660 These amounts are classified in the unaudited Condensed Consolidated Statements of Earnings as follows: Cost of goods and services $ 3,943 $ 93 $ 13,871 $ 1,825 Selling and administrative expenses 7,576 1,351 24,869 5,835 Total $ 11,519 $ 1,444 $ 38,740 $ 7,660 |
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 22,174 16,566 38,740 Payments (27,975 ) (8,927 ) (36,902 ) Foreign currency translation (516 ) (345 ) (861 ) Other, including write-offs of fixed assets 2,210 (9,470 ) (7,260 ) Balance at September 30, 2015 $ 11,251 $ 4,487 $ 15,738 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Borrowings consist of the following: September 30, 2015 December 31, 2014 Short-term Current portion of long-term debt $ 300,105 $ 299,956 Commercial paper 161,200 478,000 $ 461,305 $ 777,956 |
Schedule of Long-term Debt Instruments | September 30, 2015 December 31, 2014 Long-term 4.875% 10-year notes due October 15, 2015 $ 299,984 $ 299,836 5.45% 10-year notes due March 15, 2018 349,175 348,928 2.125% 7-year notes due December 1, 2020 (Euro-denominated) 335,355 363,970 4.30% 10-year notes due March 1, 2021 449,859 449,839 6.65% 30-year debentures due June 1, 2028 199,543 199,517 5.375% 30-year debentures due October 15, 2035 296,804 296,685 6.60% 30-year notes due March 15, 2038 248,014 247,948 5.375% 30-year notes due March 1, 2041 345,949 345,830 Other 365 444 Total long-term debt 2,525,048 2,552,997 Less current installments (300,105 ) (299,956 ) $ 2,224,943 $ 2,253,041 |
Schedule of Interest expense and interest income | Interest expense and interest income for the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Interest expense $ 33,098 $ 32,501 $ 99,156 $ 99,125 Interest income (1,115 ) (1,270 ) (3,148 ) (3,278 ) Interest expense, net $ 31,983 $ 31,231 $ 96,008 $ 95,847 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 and December 31, 2014 and the balance sheet lines in which they are recorded: Fair Value Asset (Liability) September 30, 2015 December 31, 2014 Balance Sheet Caption Foreign currency forward / collar contracts $ 1,182 $ 973 Prepaid / Other assets Foreign currency forward / collar contracts (505 ) (810 ) Other accrued expenses Net investment hedge - cross currency swap (16,285 ) (15,567 ) Accrued expenses |
Schedule of net investment hedges in accumulated other comprehensive income (loss) | Amounts recognized in other comprehensive earnings (loss) for the gains (losses) on its net investment hedges were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Gain on Euro-denominated debt $ 300 $ 26,357 $ 28,675 $ 29,722 Gain (loss) on Swiss franc cross-currency swap 3,331 5,489 (718 ) 5,466 Total gain on net investment hedges before tax 3,631 31,846 27,957 35,188 Tax expense (1,271 ) (11,146 ) (9,785 ) (12,316 ) Net gain on net investment hedges, net of tax $ 2,360 $ 20,700 $ 18,172 $ 22,872 |
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 September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Foreign currency cash flow hedges $ — $ 1,182 $ — $ — $ 973 $ — Liabilities: Foreign currency cash flow hedges — 505 — — 810 — Net investment hedge derivative — 16,285 — — 15,567 — |
Equity Incentive Program (Table
Equity Incentive Program (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Pre-tax compensation expense $ 6,674 $ 8,297 $ 25,525 $ 24,710 Tax benefit (2,368 ) (2,914 ) (9,049 ) (8,749 ) Total stock-based compensation expense, net of tax $ 4,306 $ 5,383 $ 16,476 $ 15,961 |
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 % 1.70 % 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 31.78 % 50.16 % |
Commitments and Contingent Li39
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | 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 September 30, 2015 and 2014 are as follows: 2015 2014 Beginning Balance, January 1 $ 49,388 $ 42,924 Provision for warranties 36,821 42,242 Settlements made (41,842 ) (41,717 ) Other adjustments, including acquisitions and currency translation (1,245 ) 2,780 Ending balance, September 30 $ 43,122 $ 46,229 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Defined benefit pension plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | Three Months Ended September 30, Nine Months Ended September 30, U.S. Plan Non-U.S. Plans U.S. Plan Non-U.S. Plans 2015 2014 2015 2014 2015 2014 2015 2014 Service Cost $ 3,915 $ 3,722 $ 1,655 $ 1,282 $ 11,746 $ 11,164 $ 5,006 $ 4,327 Interest Cost 5,790 6,314 1,482 1,710 17,372 18,943 4,444 5,716 Expected return on plan assets (10,392 ) (10,398 ) (2,012 ) (1,771 ) (31,178 ) (31,195 ) (6,042 ) (5,882 ) Amortization: Prior service cost 225 271 22 22 673 812 67 76 Recognized actuarial loss 3,155 2,073 665 183 9,465 6,217 2,001 626 Transition obligation — — (15 ) 1 — — 3 3 Curtailments, special termination benefits, and settlements (1) — — 2 2 810 — 5 5 Net periodic expense $ 2,693 $ 1,982 $ 1,799 $ 1,429 $ 8,888 $ 5,941 $ 5,484 $ 4,871 (1) One-time charges of $810 reflected in pension expense for the nine months ended September 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Service Cost $ 934 $ 830 $ 2,804 $ 2,490 Interest Cost 1,266 1,537 3,797 4,611 Amortization: Prior service cost 1,731 1,944 5,195 5,831 Recognized actuarial loss (gain) 71 (107 ) 214 (320 ) Net periodic expense $ 4,002 $ 4,204 $ 12,010 $ 12,612 |
Post-Retirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Service Cost $ 41 $ 63 $ 122 $ 187 Interest Cost 128 156 384 470 Amortization: Prior service cost (93 ) (103 ) (279 ) (307 ) Recognized actuarial (gain) loss (8 ) 14 (23 ) 40 Net periodic expense $ 68 $ 130 $ 204 $ 390 |
Other Comprehensive Earnings (T
Other Comprehensive Earnings (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of other comprehensive income | The amounts recognized in other comprehensive loss were as follows: Three Months Ended Three Months Ended September 30, 2015 September 30, 2014 Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation adjustments (1) $ (55,942 ) $ (1,271 ) $ (57,213 ) $ (67,629 ) $ (11,146 ) $ (78,775 ) Pension and other postretirement benefit plans 5,753 (1,951 ) 3,802 4,298 (1,495 ) 2,803 Changes in fair value of cash flow hedges (760 ) 267 (493 ) (457 ) 160 (297 ) Other 445 (52 ) 393 941 (14 ) 927 Total other comprehensive loss $ (50,504 ) $ (3,007 ) $ (53,511 ) $ (62,847 ) $ (12,495 ) $ (75,342 ) (1) Foreign currency translation adjustments for the three months ended September 30, 2015 and 2014 include pre-tax gains of $3,631 and $31,846 on the Company's net investment hedges, respectively, which resulted in a tax expense of $1,271 and $11,146 reflected in other comprehensive income. See also Note 10 Financial Instruments . Nine Months Ended Nine Months Ended September 30, 2015 September 30, 2014 Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation adjustments (2) $ (95,087 ) $ (9,785 ) $ (104,872 ) $ (72,861 ) $ (12,316 ) $ (85,177 ) Pension and other postretirement benefit plans 17,316 (5,871 ) 11,445 12,978 (4,506 ) 8,472 Changes in fair value of cash flow hedges 505 (176 ) 329 (1,355 ) 474 (881 ) Other 1,003 (119 ) 884 1,708 (162 ) 1,546 Total other comprehensive loss $ (76,263 ) $ (15,951 ) $ (92,214 ) $ (59,530 ) $ (16,510 ) $ (76,040 ) (2) Foreign currency translation adjustments for the nine months ended September 30, 2015 and 2014 include pre-tax gains on the Company's net investment hedges of $27,957 and $35,188 which resulted in tax expense of $9,785 and $12,316 reflected in other comprehensive income for these respective periods. |
Schedule of comprehensive income (loss) | Total comprehensive earnings were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net earnings $ 186,098 $ 231,844 $ 728,004 $ 605,941 Other comprehensive loss (53,511 ) (75,342 ) (92,214 ) (76,040 ) Comprehensive earnings $ 132,587 $ 156,502 $ 635,790 $ 529,901 |
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 and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Pension and postretirement benefit plans: Amortization of actuarial losses $ 3,868 $ 2,164 $ 11,660 $ 6,566 Amortization of prior service costs 1,885 2,134 5,656 6,412 Total before tax 5,753 4,298 17,316 12,978 Tax provision (1,951 ) (1,495 ) (5,871 ) (4,506 ) Net of tax $ 3,802 $ 2,803 $ 11,445 $ 8,472 Cash flow hedges: Net (gains) losses reclassified into earnings $ (1,042 ) $ 261 $ (318 ) $ (30 ) Tax benefit (provision) 364 (92 ) 111 10 Net of tax $ (678 ) $ 169 $ (207 ) $ (20 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Revenue and earnings from continuing operations by market segment | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenue: Energy $ 363,872 $ 507,334 $ 1,160,339 $ 1,467,123 Engineered Systems 579,396 612,301 1,745,683 1,793,796 Fluids 352,018 361,797 1,043,765 1,053,081 Refrigeration & Food Equipment 492,460 528,807 1,312,672 1,462,657 Intra-segment eliminations (164 ) (664 ) (748 ) (1,876 ) Total consolidated revenue $ 1,787,582 $ 2,009,575 $ 5,261,711 $ 5,774,781 Earnings from continuing operations: Segment earnings: Energy $ 48,726 $ 122,738 $ 141,940 $ 356,697 Engineered Systems 102,866 108,800 287,717 293,793 Fluids 74,911 67,559 199,713 188,613 Refrigeration & Food Equipment 76,665 78,012 178,547 207,800 Total segments 303,168 377,109 807,917 1,046,903 Corporate expense / other (1) 25,881 27,815 80,789 87,836 Net interest expense 31,983 31,231 96,008 95,847 Earnings before provision for income taxes and discontinued operations 245,304 318,063 631,120 863,220 Provision for taxes 58,821 92,380 171,813 256,915 Earnings from continuing operations $ 186,483 $ 225,683 $ 459,307 $ 606,305 (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 (Tables)
Share Repurchases (Tables) | 9 Months Ended |
Sep. 30, 2014 | |
Share Repurchases [Line Items] | |
Schedule of Share Repurchases | A summary of share repurchase activity is shown below. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Shares of common stock repurchased 1,510,124 857,016 8,228,542 4,743,926 Spending on share repurchases (in thousands) $ 100,030 $ 75,017 $ 600,164 $ 392,588 Average price paid per share $ 66.24 $ 87.53 $ 72.94 $ 82.76 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Earnings from continuing operations $ 186,483 $ 225,683 $ 459,307 $ 606,305 Earnings (loss) from discontinued operations, net (385 ) 6,161 268,697 (364 ) Net earnings $ 186,098 $ 231,844 $ 728,004 $ 605,941 Basic earnings (loss) per common share: Earnings from continuing operations $ 1.20 $ 1.36 $ 2.90 $ 3.62 Earnings (loss) from discontinued operations, net $ — $ 0.04 $ 1.70 $ — Net earnings $ 1.20 $ 1.40 4.59 $ 3.62 Weighted average shares outstanding 155,300,000 166,021,000 158,507,000 167,401,000 Diluted earnings (loss) per common share: Earnings from continuing operations $ 1.19 $ 1.34 $ 2.87 $ 3.57 Earnings (loss) from discontinued operations, net $ — $ 0.04 $ 1.68 $ — Net earnings $ 1.19 $ 1.38 $ 4.55 $ 3.57 Weighted average shares outstanding 156,560,000 168,343,000 160,112,000 169,761,000 |
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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Weighted average shares outstanding - Basic 155,300,000 166,021,000 158,507,000 167,401,000 Dilutive effect of assumed exercise of employee stock options and SARs and vesting of performance shares 1,260,000 2,322,000 1,605,000 2,360,000 Weighted average shares outstanding - Diluted 156,560,000 168,343,000 160,112,000 169,761,000 |
Spin Off of Knowles (Details)
Spin Off of Knowles (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 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 | $ 359,837 | 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] | ||||
Other current assets | 0 | 8,571 | ||
Total assets of discontinued operations | 0 | 327,171 | ||
Current liabilities | 0 | 38,874 | ||
Total liabilities of discontinued operations | $ 0 | $ 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 ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||||
Goodwill - tax deductible | $ 2,076 | $ 2,076 | |||
Net cash consideration | 6,500 | $ 366,532 | |||
Revenue from continuing operations [Abstract] | |||||
As reported | 1,787,582 | $ 2,009,575 | 5,261,711 | $ 5,774,781 | |
Pro forma | 1,787,582 | 2,079,626 | 5,262,218 | 6,019,415 | |
Net earnings from continuing operations [Abstract] | |||||
As reported | 186,483 | 225,683 | 459,307 | 606,305 | |
Pro forma | $ 186,483 | $ 231,805 | $ 465,430 | $ 624,180 | |
Basic earnings per share from continuing operations [Abstract] | |||||
As reported (in dollars per share) | $ 1.20 | $ 1.36 | $ 2.90 | $ 3.62 | |
Pro forma (in dollars per share) | 1.20 | 1.40 | 2.94 | 3.73 | |
Diluted earnings per share from continuing operations [Abstract] | |||||
As reported (in dollars per share) | 1.19 | 1.34 | 2.87 | 3.57 | |
Pro forma (in dollars per share) | $ 1.19 | $ 1.38 | $ 2.91 | $ 3.68 | |
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 ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from the sale of businesses | $ 689,314 | $ 178,112 | |||
Gain (loss) on sale and impairments, net of tax | $ (31) | $ 512 | 265,550 | (3,661) | |
Spin-offs costs incurred to date | 27,055 | ||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||
Revenue | 0 | 83,260 | 72,869 | 490,517 | |
Earnings from operations before taxes | (100) | 10,279 | 8,608 | 14,642 | |
Benefit from (provision for) income taxes | (254) | (4,630) | (5,461) | (11,345) | |
Earnings (loss) from operations, net of tax | (354) | 5,649 | 3,147 | 3,297 | |
Earnings (loss) from discontinued operations, net of tax | (385) | $ 6,161 | 268,697 | $ (364) | |
Assets of Discontinued Operations | |||||
Accounts receivable, net | 0 | 0 | $ 46,691 | ||
Disposal Group, Including Discontinued Operation, Inventory, Current | 0 | 0 | 58,401 | ||
Prepaid and other current assets | 0 | 0 | 8,571 | ||
Current assets | 0 | 0 | 113,663 | ||
Property, plant and equipment, net | 0 | 0 | 31,573 | ||
Goodwill and intangible assets, net | 0 | 0 | 181,798 | ||
Other assets and deferred charges | 0 | 0 | 137 | ||
Total assets of discontinued operations | 0 | 0 | 327,171 | ||
Liabilities of Discontinued Operations | |||||
Accounts payable | 0 | 0 | 21,199 | ||
Other current liabilities | 0 | 0 | 17,675 | ||
Current liabilities | 0 | 0 | 38,874 | ||
Deferred income taxes | 0 | 0 | 8,752 | ||
Other liabilities | 0 | 0 | 3,092 | ||
Total liabilities of discontinued operations | $ 0 | 0 | $ 50,718 | ||
Datamax ONeil [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from the sale of businesses | 185,000 | ||||
Gain (loss) on sale and impairments, net of tax | 87,781 | ||||
Sargent Aerospace [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from the sale of businesses | 500,000 | ||||
Gain (loss) on sale and impairments, net of tax | 177,769 | ||||
Discontinued Operations, Disposed of by Sale [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Income taxes paid | $ 82,800 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory, Net [Abstract] | ||
Raw materials | $ 342,173 | $ 352,016 |
Work in progress | 147,225 | 147,715 |
Finished Goods | 433,631 | 483,912 |
Subtotal | 923,029 | 983,643 |
Inventory reserves | (112,314) | (119,906) |
Total | $ 810,715 | $ 863,737 |
Property, Plant and Equipment49
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||||
Cost | $ 2,332,422 | $ 2,332,422 | $ 2,291,188 | ||
Accumulated depreciation | (1,508,390) | (1,508,390) | (1,454,119) | ||
Total | 824,032 | 824,032 | 837,069 | ||
Depreciation expense | 38,191 | $ 37,723 | 116,807 | $ 112,548 | |
Land [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Cost | 54,409 | 54,409 | 55,076 | ||
Buildings and improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Cost | 536,881 | 536,881 | 537,474 | ||
Machinery, equipment and other [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Cost | $ 1,741,132 | $ 1,741,132 | $ 1,698,638 |
Goodwill and Other Intangible50
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Balance | $ 3,441,780 | $ 3,491,557 |
Acquisitions | 2,076 | |
Purchase price adjustments | 8,604 | |
Business disposition | (19,128) | |
Foreign currency translation | (41,329) | |
Balance | 3,441,780 | |
Energy Segment [Member] | ||
Goodwill [Roll Forward] | ||
Balance | 1,048,416 | 1,048,735 |
Acquisitions | 0 | |
Purchase price adjustments | 8,604 | |
Business disposition | 0 | |
Foreign currency translation | (8,923) | |
Balance | 1,048,416 | |
Engineered Systems Segment [Member] | ||
Goodwill [Roll Forward] | ||
Balance | 1,238,464 | 1,270,178 |
Acquisitions | 0 | |
Purchase price adjustments | 0 | |
Business disposition | (19,128) | |
Foreign currency translation | (12,586) | |
Balance | 1,238,464 | |
Fluids Segment [Member] | ||
Goodwill [Roll Forward] | ||
Balance | 592,237 | 609,663 |
Acquisitions | 0 | |
Purchase price adjustments | 0 | |
Business disposition | 0 | |
Foreign currency translation | (17,426) | |
Balance | 592,237 | |
Refrigeration and Food Equipment Segment [Member] | ||
Goodwill [Roll Forward] | ||
Balance | 562,663 | $ 562,981 |
Acquisitions | 2,076 | |
Purchase price adjustments | 0 | |
Business disposition | 0 | |
Foreign currency translation | (2,394) | |
Balance | $ 562,663 |
Goodwill and Other Intangible51
Goodwill and Other Intangible Assets - Intangible Assets and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | $ 1,908,283 | $ 1,908,283 | $ 1,936,645 | ||
Accumulated amortization | 843,627 | 843,627 | 733,043 | ||
Amortization expense | 38,983 | $ 36,758 | 118,576 | $ 113,354 | |
Intangible assets, net | 1,230,312 | 1,230,312 | 1,369,520 | ||
Trademarks [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 137,004 | 137,004 | 138,650 | ||
Accumulated amortization | 42,487 | 42,487 | 34,097 | ||
Patents [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 147,867 | 147,867 | 150,404 | ||
Accumulated amortization | 113,173 | 113,173 | 108,484 | ||
Customer Intangibles [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 1,408,808 | 1,408,808 | 1,429,906 | ||
Accumulated amortization | 567,273 | 567,273 | 484,449 | ||
Unpatented Technologies [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 91,167 | 91,167 | 92,480 | ||
Accumulated amortization | 53,394 | 53,394 | 45,812 | ||
Drawings and Manuals [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 34,736 | 34,736 | 36,377 | ||
Accumulated amortization | 15,163 | 15,163 | 13,087 | ||
Distributor Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 64,614 | 64,614 | 64,614 | ||
Accumulated amortization | 36,802 | 36,802 | 34,377 | ||
Other Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 24,087 | 24,087 | 24,214 | ||
Accumulated amortization | $ 15,335 | $ 15,335 | $ 12,737 |
Goodwill and Other Intangible52
Goodwill and Other Intangible Assets - Indefinite-lived Intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Trademarks [Member] | ||
Unamortized Intangible Assets [Abstract] | ||
Gross carrying amount | $ 165,656 | $ 165,918 |
Restructuring Activities (Detai
Restructuring Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 11,519 | $ 1,444 | $ 38,740 | $ 7,660 |
Restructuring Reserve [Roll Forward] | ||||
Severance and other restructuring reserve, beginning balance | 22,021 | |||
Provision | 38,740 | |||
Payments | (36,902) | |||
Restructuring Reserve, Translation Adjustment | (861) | |||
Other, including foreign currency | (7,260) | |||
Severance and other restructuring reserve, ending balance | 15,738 | 15,738 | ||
Energy Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 6,183 | 213 | 26,561 | 1,703 |
Engineered Systems Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 3,694 | 172 | 8,796 | 3,193 |
Fluids Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,382 | 456 | 3,537 | 994 |
Refrigeration and Food Equipment Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 91 | 0 | (434) | 10 |
Corporate, Non-Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 169 | 603 | 280 | 1,760 |
Employee Severance [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Severance and other restructuring reserve, beginning balance | 15,358 | |||
Provision | 22,174 | |||
Payments | (27,975) | |||
Restructuring Reserve, Translation Adjustment | (516) | |||
Other, including foreign currency | 2,210 | |||
Severance and other restructuring reserve, ending balance | 11,251 | 11,251 | ||
Facility Closing [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Severance and other restructuring reserve, beginning balance | 6,663 | |||
Provision | 16,566 | |||
Payments | (8,927) | |||
Restructuring Reserve, Translation Adjustment | (345) | |||
Other, including foreign currency | (9,470) | |||
Severance and other restructuring reserve, ending balance | 4,487 | 4,487 | ||
Cost of Sales [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 3,943 | 93 | 13,871 | 1,825 |
Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 7,576 | $ 1,351 | $ 24,869 | $ 5,835 |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |||||
Interest expense | $ 33,098 | $ 32,501 | $ 99,156 | $ 99,125 | |
Interest income | (1,115) | (1,270) | (3,148) | (3,278) | |
Interest expense, net | 31,983 | $ 31,231 | 96,008 | $ 95,847 | |
Debt Instrument [Line Items] | |||||
Letters of Credit Outstanding, Amount | 114,559 | 114,559 | |||
Short-term borrowings [Abstract] | |||||
Current installments | 300,105 | 300,105 | $ 299,956 | ||
Commercial Paper | 161,200 | 161,200 | 478,000 | ||
Debt, Current | 461,305 | 461,305 | 777,956 | ||
Long-term borrowings [Abstract] | |||||
Carrying amount of long-term debt | 2,525,048 | 2,525,048 | 2,552,997 | ||
Long-term debt (noncurrent) | 2,224,943 | $ 2,224,943 | 2,253,041 | ||
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 September 30, 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 | $ 299,984 | $ 299,984 | 299,836 | ||
Debt instruments, maturity date | Oct. 15, 2015 | ||||
Debt instrument, stated interest rate (in hundredths) | 4.875% | 4.875% | |||
Term of debt instrument (in years) | 10 years | ||||
Note due 2018 [Member] | |||||
Long-term borrowings [Abstract] | |||||
Long-term debt | $ 349,175 | $ 349,175 | 348,928 | ||
Debt instruments, maturity date | Mar. 15, 2018 | ||||
Debt instrument, stated interest rate (in hundredths) | 5.45% | 5.45% | |||
Term of debt instrument (in years) | 10 years | ||||
Note due 2020 [Member] | |||||
Long-term borrowings [Abstract] | |||||
Long-term debt | $ 335,355 | $ 335,355 | 363,970 | ||
Debt instruments, maturity date | Dec. 1, 2020 | ||||
Debt instrument, stated interest rate (in hundredths) | 2.125% | 2.125% | |||
Term of debt instrument (in years) | 7 years | ||||
Note due 2021 [Member] | |||||
Long-term borrowings [Abstract] | |||||
Long-term debt | $ 449,859 | $ 449,859 | 449,839 | ||
Debt instruments, maturity date | Mar. 1, 2021 | ||||
Debt instrument, stated interest rate (in hundredths) | 4.30% | 4.30% | |||
Term of debt instrument (in years) | 10 years | ||||
Debentures due 2028 [Member] | |||||
Long-term borrowings [Abstract] | |||||
Long-term debt | $ 199,543 | $ 199,543 | 199,517 | ||
Debt instruments, maturity date | Jun. 1, 2028 | ||||
Debt instrument, stated interest rate (in hundredths) | 6.65% | 6.65% | |||
Term of debt instrument (in years) | 30 years | ||||
Debenture due 2035 [Member] | |||||
Long-term borrowings [Abstract] | |||||
Long-term debt | $ 296,804 | $ 296,804 | 296,685 | ||
Debt instruments, maturity date | Oct. 15, 2035 | ||||
Debt instrument, stated interest rate (in hundredths) | 5.375% | 5.375% | |||
Term of debt instrument (in years) | 30 years | ||||
Note due 2038 [Member] | |||||
Long-term borrowings [Abstract] | |||||
Long-term debt | $ 248,014 | $ 248,014 | 247,948 | ||
Debt instruments, maturity date | Mar. 15, 2038 | ||||
Debt instrument, stated interest rate (in hundredths) | 6.60% | 6.60% | |||
Term of debt instrument (in years) | 30 years | ||||
Note due 2041 [Member] | |||||
Long-term borrowings [Abstract] | |||||
Long-term debt | $ 345,949 | $ 345,949 | 345,830 | ||
Debt instruments, maturity date | Mar. 1, 2041 | ||||
Debt instrument, stated interest rate (in hundredths) | 5.375% | 5.375% | |||
Term of debt instrument (in years) | 30 years | ||||
Other long term debt instruments [Member] | |||||
Long-term borrowings [Abstract] | |||||
Long-term debt | $ 365 | $ 365 | $ 444 | ||
Credit Agreement [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Line of Credit Facility, Expiration Date | Nov. 10, 2016 | ||||
Unsecured revolving credit facility, maximum borrowing capacity | $ 1,000,000 | $ 1,000,000 | |||
Minimum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Line of Credit Facility, Expiration Date | Dec. 31, 2015 | ||||
Maximum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Line of Credit Facility, Expiration Date | Dec. 31, 2020 |
Financial Instruments (Details)
Financial Instruments (Details) SFr in Thousands, $ in Thousands, € in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015CHF (SFr) | Sep. 30, 2015USD ($) | Sep. 30, 2015EUR (€) | Dec. 31, 2014USD ($) | |
Derivatives, Fair Value [Line Items] | ||||||||
Gain (loss) on euro net investment hedge, gross | $ 3,631 | $ 31,846 | $ 27,957 | $ 35,188 | ||||
Foreign currency translation adjustments, tax | (1,271) | (11,146) | (9,785) | (12,316) | ||||
Gain (Loss) on euro net investment hedge, net of tax | 2,360 | 20,700 | 18,172 | 22,872 | ||||
Designated as Hedging Instrument [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative, Notional Amount | $ 33,026 | $ 47,047 | ||||||
Not Designated as Hedging Instrument [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative, Notional Amount | 79,858 | 52,392 | ||||||
Cross Currency Interest Rate Contract [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Gain (loss) on euro net investment hedge, gross | 3,331 | 5,489 | (718) | 5,466 | ||||
Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative, Notional Amount | SFr 65,100 | 50,000 | ||||||
Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Fair Value - Liability | 16,285 | 15,567 | ||||||
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Fair Value - Asset | 1,182 | 973 | ||||||
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Other Accrued Expenses [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Fair Value - Liability | $ 505 | $ 810 | ||||||
Note due 2020 [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Gain (loss) on euro net investment hedge, gross | $ 300 | $ 26,357 | $ 28,675 | $ 29,722 | ||||
Note due 2020 [Member] | Designated as Hedging Instrument [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Debt Instrument, Face Amount | € | € 300 |
Financial Instruments - Balance
Financial Instruments - Balance Sheet Location (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
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 | 1,182 | 973 |
Liabilities [Abstract] | ||
Foreign currency cash flow hedges - liability | 505 | 810 |
Net investment hedge derivative | 16,285 | 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 V
Financial Instruments - Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 2,525,048 | $ 2,552,997 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 2,875,049 | $ 3,002,701 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Effective tax rate (in hundredths) | 24.00% | 29.00% | 27.20% | 29.80% |
Discrete tax benefits | $ 8,131 | $ 5,524 | $ 8,131 | $ 7,429 |
Pre-discrete tax rate | 27.30% | 30.80% | 28.50% | 30.60% |
Taxable gain on sale | $ 325,000 | |||
Sargent Aerospace [Member] | ||||
Tax liability on sale | 108,000 | |||
Datamax ONeil [Member] | ||||
Tax liability on sale | 8,600 | |||
Minimum [Member] | ||||
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, lower bound | $ 0 | 0 | ||
Maximum [Member] | ||||
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, lower bound | $ 18,200 | $ 18,200 |
Equity Incentive Program (Detai
Equity Incentive Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stock-based compensation expense [Abstract] | ||||
Pre-tax compensation expense | $ 6,674 | $ 8,297 | $ 25,525 | $ 24,710 |
Tax benefit | (2,368) | (2,914) | (9,049) | (8,749) |
Total stock-based compensation expense, net of tax | $ 4,306 | $ 5,383 | $ 16,476 | $ 15,961 |
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 | 31.78% | |||
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 | 50.16% | |||
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 Li60
Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Accrual for environmental loss contingencies | $ 30,725 | $ 32,890 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Beginning balance | 49,388 | $ 42,924 | |
Provision for warranties | 36,821 | 42,242 | |
Settlements made | (41,842) | (41,717) | |
Other adjustments, including acquisitions and currency translation | (1,245) | 2,780 | |
Ending balance | $ 43,122 | $ 46,229 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net periodic benefit cost [Abstract] | ||||
Total amount amortized out of accumulated other comprehensive income | $ 5,753 | $ 4,298 | $ 17,316 | $ 12,978 |
Defined contribution plan expense | 7,601 | 8,295 | 24,612 | 25,537 |
U.S. Pension Plans, Defined Benefit [Member] | ||||
Net periodic benefit cost [Abstract] | ||||
Service cost | 3,915 | 3,722 | 11,746 | 11,164 |
Interest cost | 5,790 | 6,314 | 17,372 | 18,943 |
Expected return on plan assets | (10,392) | (10,398) | (31,178) | (31,195) |
Prior service cost (income) | 225 | 271 | 673 | 812 |
Recognized actuarial (gain) loss | 3,155 | 2,073 | 9,465 | 6,217 |
Transition obligation | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 810 | 0 |
Net periodic benefit cost | 2,693 | 1,982 | 8,888 | 5,941 |
Foreign Pension Plans, Defined Benefit [Member] | ||||
Net periodic benefit cost [Abstract] | ||||
Service cost | 1,655 | 1,282 | 5,006 | 4,327 |
Interest cost | 1,482 | 1,710 | 4,444 | 5,716 |
Expected return on plan assets | (2,012) | (1,771) | (6,042) | (5,882) |
Prior service cost (income) | 22 | 22 | 67 | 76 |
Recognized actuarial (gain) loss | 665 | 183 | 2,001 | 626 |
Transition obligation | (15) | 1 | 3 | 3 |
Other | 2 | 2 | 5 | 5 |
Net periodic benefit cost | 1,799 | 1,429 | 5,484 | 4,871 |
Supplemental Employee Retirement Plans, Defined Benefit [Member] | ||||
Net periodic benefit cost [Abstract] | ||||
Service cost | 934 | 830 | 2,804 | 2,490 |
Interest cost | 1,266 | 1,537 | 3,797 | 4,611 |
Prior service cost (income) | 1,731 | 1,944 | 5,195 | 5,831 |
Recognized actuarial (gain) loss | 71 | (107) | 214 | (320) |
Net periodic benefit cost | 4,002 | 4,204 | 12,010 | 12,612 |
Post-Retirement Benefits [Member] | ||||
Net periodic benefit cost [Abstract] | ||||
Service cost | 41 | 63 | 122 | 187 |
Interest cost | 128 | 156 | 384 | 470 |
Prior service cost (income) | (93) | (103) | (279) | (307) |
Recognized actuarial (gain) loss | (8) | 14 | (23) | 40 |
Net periodic benefit cost | $ 68 | $ 130 | $ 204 | $ 390 |
Other Comprehensive Earnings (D
Other Comprehensive Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Gain (loss) on euro net investment hedge, gross | $ 3,631 | $ 31,846 | $ 27,957 | $ 35,188 |
Foreign currency translation adjustments [Abstract] | ||||
Foreign currency translation adjustments, before tax | (55,942) | (67,629) | (95,087) | (72,861) |
Foreign currency translation adjustments, tax | (1,271) | (11,146) | (9,785) | (12,316) |
Total foreign currency translation | (57,213) | (78,775) | (104,872) | (85,177) |
Pension and other postretirement benefit plans [Abstract] | ||||
Pension and other postretirement benefit plans, before tax | 5,753 | 4,298 | 17,316 | 12,978 |
Pension and other postretirement benefit plans, tax | (1,951) | (1,495) | (5,871) | (4,506) |
Total pension and other postretirement benefit plans | 3,802 | 2,803 | 11,445 | 8,472 |
Changes in fair value of cash flow hedges [Abstract] | ||||
Changes in fair value of cash flow hedges, before tax | (760) | (457) | 505 | (1,355) |
Changes in fair value of cash flow hedges, tax | 267 | 160 | (176) | 474 |
Total cash flow hedges | (493) | (297) | 329 | (881) |
Other comprehensive earnings other adjustment, net of tax [Abstract] | ||||
Other, before tax | 445 | 941 | 1,003 | 1,708 |
Other, tax | (52) | (14) | (119) | (162) |
Other comprehensive earnings (loss) other adjustment | 393 | 927 | 884 | 1,546 |
Total other comprehensive earnings [Abstract] | ||||
Other comprehensive earnings (loss), before Tax | (50,504) | (62,847) | (76,263) | (59,530) |
Other comprehensive earnings (loss), tax | (3,007) | (12,495) | (15,951) | (16,510) |
Other comprehensive earnings (loss), net of tax | (53,511) | (75,342) | (92,214) | (76,040) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Net earnings | 186,098 | 231,844 | 728,004 | 605,941 |
Other comprehensive earnings (loss) | (53,511) | (75,342) | (92,214) | (76,040) |
Comprehensive earnings | 132,587 | 156,502 | 635,790 | 529,901 |
Other Comprehensive Income Loss Reclassification Adjustment From AOCI Pension And Other Postretirement Benefit Plans Net Of Tax Abstract [Abstract] | ||||
Amortization of actuarial losses | 3,868 | 2,164 | 11,660 | 6,566 |
Amortization of prior service costs | 1,885 | 2,134 | 5,656 | 6,412 |
Total before tax | 5,753 | 4,298 | 17,316 | 12,978 |
Tax provision | (1,951) | (1,495) | (5,871) | (4,506) |
Net of tax | 3,802 | 2,803 | 11,445 | 8,472 |
Other Comprehensive Income Loss Reclassification Adjustment From AOCI Derivatives Net of Tax [Abstract] | ||||
Cash flow hedges | (1,042) | 261 | (318) | (30) |
Tax (provision) benefit | 364 | (92) | 111 | 10 |
Net of tax | $ (678) | $ 169 | $ (207) | $ (20) |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segments | Sep. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segments | 4 | |||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | $ 1,787,582 | $ 2,009,575 | $ 5,261,711 | $ 5,774,781 |
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||||
Interest expense, net | 31,983 | 31,231 | 96,008 | 95,847 |
Earnings before provision for income taxes and discontinued operations | 245,304 | 318,063 | 631,120 | 863,220 |
Provision for income taxes | 58,821 | 92,380 | 171,813 | 256,915 |
Earnings from continuing operations | 186,483 | 225,683 | 459,307 | 606,305 |
Energy Segment [Member] | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | 363,872 | 507,334 | 1,160,339 | 1,467,123 |
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||||
Earnings before provision for income taxes and discontinued operations | 48,726 | 122,738 | 141,940 | 356,697 |
Engineered Systems Segment [Member] | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | 579,396 | 612,301 | 1,745,683 | 1,793,796 |
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||||
Earnings before provision for income taxes and discontinued operations | 102,866 | 108,800 | 287,717 | 293,793 |
Fluids Segment [Member] | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | 352,018 | 361,797 | 1,043,765 | 1,053,081 |
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||||
Earnings before provision for income taxes and discontinued operations | 74,911 | 67,559 | 199,713 | 188,613 |
Refrigeration and Food Equipment Segment [Member] | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | 492,460 | 528,807 | 1,312,672 | 1,462,657 |
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||||
Earnings before provision for income taxes and discontinued operations | 76,665 | 78,012 | 178,547 | 207,800 |
Intersegment Elimination [Member] | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | (164) | (664) | (748) | (1,876) |
Total segments [Member] | ||||
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||||
Earnings before provision for income taxes and discontinued operations | 303,168 | 377,109 | 807,917 | 1,046,903 |
Corporate expense / other [Member] | ||||
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||||
Earnings before provision for income taxes and discontinued operations | $ 25,881 | $ 27,815 | $ 80,789 | $ 87,836 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Share Repurchases [Line Items] | |||||
Shares repurchased | 857,016 | 4,743,926 | |||
Average price per share for repurchased shares (in dollars per share) | $ 66.24 | $ 87.53 | $ 72.94 | $ 82.76 | |
Number of treasury shares held | 101,109,186 | 101,109,186 | 92,880,644 | ||
Purchase of common stock | $ 100,030 | $ 75,017 | $ 600,164 | $ 392,588 | |
January 2015 Authorization [Member] | |||||
Share Repurchases [Line Items] | |||||
Number of shares authorized to be repurchased | 15,000,000 | 15,000,000 | |||
Shares repurchased | 1,510,124 | 8,228,542 | |||
Remaining number of shares authorized to be repurchased | 6,771,458 | 6,771,458 | |||
November 2012 Authorization [Member] | |||||
Share Repurchases [Line Items] | |||||
Authorized dollar amount for share repurchase program | $ 1,000,000 | $ 1,000,000 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reconciliation of information used in computing basic and diluted earnings per share [Abstract] | ||||
Earnings from continuing operations | $ 186,483 | $ 225,683 | $ 459,307 | $ 606,305 |
Earnings (loss) from discontinued operations, net | (385) | 6,161 | 268,697 | (364) |
Net earnings | $ 186,098 | $ 231,844 | $ 728,004 | $ 605,941 |
Basic earnings (loss) per common share: | ||||
Earnings from continuing operations (in dollars per basic share) | $ 1.20 | $ 1.36 | $ 2.90 | $ 3.62 |
Earnings (loss) from discontinued operations, net (in dollars per basic share) | 0 | 0.04 | 1.70 | 0 |
Net earnings (in dollars per basic share) | $ 1.20 | $ 1.40 | $ 4.59 | $ 3.62 |
Weighted average shares outstanding - basic (in shares) | 155,300 | 166,021 | 158,507 | 167,401 |
Diluted earnings (loss) per common share: | ||||
Earnings from continuing operations (in dollars per diluted share) | $ 1.19 | $ 1.34 | $ 2.87 | $ 3.57 |
Earnings (loss) from discontinued operations, net (in dollars per diluted share) | 0 | 0.04 | 1.68 | 0 |
Net earnings (in dollars per diluted share) | $ 1.19 | $ 1.38 | $ 4.55 | $ 3.57 |
Weighted average shares outstanding - diluted (in shares) | 156,560 | 168,343 | 160,112 | 169,761 |
Reconciliation Of Share Amounts Used In Computing Earnings Per Share [Abstract] | ||||
Weighted average shares outstanding - basic (in shares) | 155,300 | 166,021 | 158,507 | 167,401 |
Dilutive effect of assumed exercise of employee stock options, SAR's and performance shares (in shares) | 1,260 | 2,322 | 1,605 | 2,360 |
Weighted average shares outstanding - diluted (in shares) | 156,560 | 168,343 | 160,112 | 169,761 |
Antidilutive securities excluded from computation of earnings per share | 47 | 54 | 44 | 10 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Subsequent Event [Line Items] | ||||
Purchase price | $ 6,500 | $ 366,532 | ||
Reduction of long-term debt | $ 76 | $ 1,613 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Purchase price | $ 520,000 | |||
Settlement of net investment hedge | 17,800 | |||
Reduction of long-term debt | 300,000 | |||
Subsequent Event [Member] | Tokeim Group S.A.S. [Member] | ||||
Subsequent Event [Line Items] | ||||
Purchase price | $ 465,000 |