Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 14, 2020 | |
Cover [Abstract] | ||
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-4018 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 53-0257888 | |
Entity Address, Address Line One | 3005 Highland Parkway | |
Entity Address, City or Town | Downers Grove, | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60515 | |
City Area Code | (630) | |
Local Phone Number | 541-1540 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 143,947,008 | |
Entity Registrant Name | DOVER Corp | |
Entity Central Index Key | 0000029905 | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Common Stock | ||
Cover [Abstract] | ||
Title of 12(b) Security | Common Stock | |
Trading Symbol | DOV | |
Security Exchange Name | NYSE | |
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock | |
Trading Symbol | DOV | |
Security Exchange Name | NYSE | |
1.250 Notes Due 2026 [Member] | ||
Cover [Abstract] | ||
Title of 12(b) Security | 1.250% Notes due 2026 | |
Trading Symbol | DOV 26 | |
Security Exchange Name | NYSE | |
Document Information [Line Items] | ||
Title of 12(b) Security | 1.250% Notes due 2026 | |
Trading Symbol | DOV 26 | |
Security Exchange Name | NYSE | |
0.750 Notes due 2027 [Member] | ||
Cover [Abstract] | ||
Title of 12(b) Security | 0.750% Notes due 2027 | |
Trading Symbol | DOV 27 | |
Security Exchange Name | NYSE | |
Document Information [Line Items] | ||
Title of 12(b) Security | 0.750% Notes due 2027 | |
Trading Symbol | DOV 27 | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 1,655,939 | $ 1,724,757 |
Cost of goods and services | 1,043,696 | 1,101,215 |
Gross profit | 612,243 | 623,542 |
Selling, General and Administrative Expense | 386,941 | 408,466 |
Loss on assets held for sale | 0 | (46,946) |
Operating earnings | 225,302 | 168,130 |
Interest Expense | 27,268 | 31,808 |
Interest Income | (1,183) | (890) |
Gain on sale of businesses | (6,551) | 0 |
Other income, net | (7,732) | (1,106) |
Earnings before provision for income taxes | 213,500 | 138,318 |
Provision for income taxes | 37,221 | 32,613 |
Earnings from continuing operations | 176,279 | 105,705 |
Net earnings | $ 176,279 | $ 105,705 |
Net earnings per share: | ||
Net earnings (in dollars per basic share) | $ 1.22 | $ 0.73 |
Net earnings (in dollars per diluted share) | $ 1.21 | $ 0.72 |
Weighted average shares outstanding: | ||
Weighted average shares outstanding - basic | 144,259,000 | 145,087,000 |
Weighted average shares outstanding - diluted | 145,782,000 | 146,911,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 176,279 | $ 105,705 |
Foreign currency translation adjustments [Abstract] | ||
Foreign currency translation (losses) gains | (93,554) | 23,700 |
Reclassification of foreign currency translation losses to earnings | 0 | 25,339 |
Total foreign currency translation adjustment | (93,554) | 49,039 |
Pension and other postretirement benefit plans [Abstract] | ||
Amortization of actuarial losses included in net periodic pension cost | 1,669 | 175 |
Amortization of prior service cost included in net periodic pension cost | 286 | 572 |
Total pension and other postretirement benefit plans | 1,955 | 747 |
Changes in fair value of cash flow hedges [Abstract] | ||
Unrealized net gains (losses) arising during period | (5,074) | 2,594 |
Net losses (gains) reclassified into earnings | 1,121 | (230) |
Total cash flow hedges | (3,953) | 2,364 |
Other comprehensive (loss) earnings | (95,552) | 52,150 |
Comprehensive earnings | $ 80,727 | $ 157,855 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 508,907 | $ 397,253 |
Receivables, net of allowances | 1,222,154 | 1,217,190 |
Inventories | 852,075 | 806,141 |
Prepaid and other current assets | 122,864 | 127,846 |
Total current assets | 2,706,000 | 2,548,430 |
Property, plant and equipment, net | 841,813 | 842,318 |
Goodwill | 3,860,817 | 3,783,347 |
Intangible assets, net | 1,096,140 | 1,055,014 |
Other assets and deferred charges | 439,483 | 440,368 |
Total assets | 8,944,253 | 8,669,477 |
Current liabilities: | ||
Notes payable and current maturities of long-term debt | 500,000 | 84,700 |
Accounts payable | 947,006 | 983,293 |
Accrued compensation and employee benefits | 175,231 | 226,658 |
Accrued insurance | 99,992 | 98,432 |
Other accrued expenses | 355,837 | 339,060 |
Federal and other income taxes | 16,295 | 17,748 |
Total current liabilities | 2,094,361 | 1,749,891 |
Long-term debt | 2,963,018 | 2,985,716 |
Deferred Income Taxes | 338,586 | 322,036 |
Noncurrent income tax payable | 52,000 | 52,000 |
Other liabilities | 515,607 | 527,174 |
Stockholders' Equity: | ||
Total stockholders' equity | 2,980,681 | 3,032,660 |
Total liabilities and stockholders' equity | $ 8,944,253 | $ 8,669,477 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Allowance for doubtful accounts receivable | $ 33,901 | $ 29,381 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (unaudited) - USD ($) | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Earnings |
Balance at Dec. 31, 2018 | $ 2,768,666,000 | $ 257,822,000 | $ 886,016,000 | $ (5,947,562,000) | $ 7,815,486,000 | $ (243,096,000) |
Net earnings | 105,705,000 | 0 | 0 | 0 | 105,705,000 | 0 |
Dividends paid | (69,809,000) | 0 | 0 | 0 | (69,809,000) | 0 |
Common stock issued for the exercise of share-based awards | (19,608,000) | 392,000 | (20,000,000) | 0 | 0 | 0 |
Share-based compensation expense | 8,182,000 | 0 | 8,182,000 | 0 | 0 | 0 |
Other comprehensive loss, net of tax | 52,150,000 | 0 | 0 | 0 | 0 | 52,150,000 |
Other, net | (7,833,000) | 0 | (7,833,000) | 0 | 0 | 0 |
Balance at Mar. 31, 2019 | 2,837,453,000 | 258,214,000 | 866,365,000 | (5,947,562,000) | 7,851,382,000 | (190,946,000) |
Balance at Dec. 31, 2019 | 3,032,660,000 | 258,552,000 | 869,719,000 | (6,090,842,000) | 8,211,257,000 | (216,026,000) |
Net earnings | 176,279,000 | 0 | 0 | 0 | 176,279,000 | 0 |
Dividends paid | (70,899,000) | 0 | 0 | 0 | (70,899,000) | 0 |
Common stock issued for the exercise of share-based awards | (10,019,000) | 193,000 | (10,212,000) | 0 | 0 | 0 |
Share-based compensation expense | 3,252,000 | 0 | 3,252,000 | 0 | 0 | 0 |
Common stock acquired, including accelerated share repurchase program | (52,916,000) | 0 | 0 | (52,916,000) | 0 | 0 |
Other comprehensive loss, net of tax | (95,552,000) | 0 | 0 | 0 | 0 | (95,552,000) |
Other, net | (12,000) | 0 | (12,000) | 0 | 0 | 0 |
Balance at Mar. 31, 2020 | 2,980,681,000 | 258,745,000 | 862,747,000 | (6,143,758,000) | 8,314,525,000 | (311,578,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2016-13 | $ (2,112,000) | $ 0 | $ 0 | $ 0 | $ (2,112,000) | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid per common share (in dollars per share) | $ 0.49 | $ 0.48 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Activities | ||
Net earnings | $ 176,279 | $ 105,705 |
Loss on assets held for sale | 0 | (46,946) |
Adjustments to reconcile net earnings to cash from operating activities: | ||
Depreciation and amortization | 68,752 | 67,738 |
Share-based compensation expense | 3,252 | 8,182 |
Other, net | (17,358) | 2,363 |
Cash effect of changes in assets and liabilities (excluding effects of acquisitions, dispositions and foreign exchange): | ||
Accounts receivable, net | (25,313) | (42,252) |
Inventories | (61,936) | (73,041) |
Prepaid expenses and other assets | (8,654) | (14,921) |
Accounts payable | (25,245) | (22,638) |
Accrued compensation and employee benefits | (67,247) | (55,559) |
Accrued expenses and other liabilities | 25,321 | (16,107) |
Accrued and deferred taxes, net | 14,563 | 18,108 |
Net cash provided by operating activities | 75,863 | 24,524 |
Investing Activities | ||
Additions to property, plant and equipment | (40,172) | (37,122) |
Acquisitions, net of cash acquired | 208,421 | 175,083 |
Proceeds from sale of property, plant, and equipment | 1,232 | 170 |
Proceeds from sale of businesses | 16,850 | 2,245 |
Other | 0 | (7,900) |
Net cash (used in) provided by investing activities | (230,511) | (217,690) |
Financing Activities | ||
Repurchase of common stock, including prepayment under an accelerated share repurchase program | (52,916) | 0 |
Change in commercial paper and notes payable | 415,300 | 125,893 |
Dividends paid to stockholders | (70,899) | (69,809) |
Payments to settle employee tax obligations on exercise of share-based awards | (10,019) | (19,608) |
Other | (512) | (409) |
Net cash used in by financing activities | 280,954 | 36,067 |
Effect of Exchange Rate on Cash and Cash Equivalents | (14,652) | 3,892 |
Net (decrease) increase in cash and cash equivalents | 111,654 | (153,207) |
Cash and cash equivalents at beginning of period | 397,253 | 396,221 |
Cash and cash equivalents at end of period | $ 508,907 | $ 243,014 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited interim Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim periods and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America ("GAAP") for complete financial statements. These unaudited interim Condensed Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes for Dover Corporation ("Dover" or the "Company") for the year ended December 31, 2019, included in the Company's Annual Report on Form 10-K filed with the SEC on February 14, 2020. The year end Condensed Consolidated Balance Sheet was derived from audited financial statements. Certain amounts in the prior periods have been reclassified to conform to the current year presentation. The accompanying unaudited interim Condensed Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may differ from those estimates. The Condensed Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair statement of results for these interim periods. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 2. Revenue A majority of the Company’s revenue is short cycle in nature with shipments within one year from order. A small portion of the Company’s revenue derives from contracts extending over one year. The Company's payment terms generally range between 30 to 90 days and vary by the location of businesses, the type of products manufactured to be sold and the volume of products sold, among other factors. Over 95% of the Company’s performance obligations are recognized at a point in time that relate to the manufacture and sale of a broad range of products and components. Revenue is recognized when control transfers to the customer upon shipment or completion of installation, testing, certification, or other substantive acceptance provisions required under the contract. Less than 5% of the Company’s revenue is recognized over time and generally relates to the sale of services or engineered to order equipment that have no alternative use and in which the contract specifies the Company has a right to payment for its costs, plus a reasonable margin. Revenue from contracts with customers is disaggregated by segments and geographic location, as it best depicts the nature and amount of the Company’s revenue. See Note 17 — Segment Information for revenue by segment and geographic locations. At March 31, 2020, we estimated that $156.0 million in revenue is expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. We expect to recognize approximately 81% of our unsatisfied (or partially unsatisfied) performance obligations as revenue through 2021, with the remaining balance to be recognized in 2022 and thereafter. The following table provides information about contract assets and contract liabilities from contracts with customers: March 31, 2020 December 31, 2019 January 1, 2019 Contract assets $ 13,841 $ 14,894 $ 9,330 Contract liabilities - current 61,508 44,001 36,461 Contract liabilities - non-current 10,363 9,121 9,382 The revenue recognized during the three months ended March 31, 2020 and 2019 that was included in contract liabilities at the beginning of the period amounted to $21,133 and $15,414, respectively. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions 2020 Acquisitions During the three months ended March 31, 2020, the Company acquired two businesses in separate transactions for total consideration of $208,421, net of cash acquired. These businesses were acquired to complement and expand upon existing operations within the Imaging & Identification and Engineered Products segments. The goodwill recorded as a result of these acquisitions represents the economic benefits expected to be derived from product line expansions and operational synergies. Goodwill in the amount of $33,125 is deductible for U.S. income tax purposes and goodwill in the amount of $92,256 is non-deductible for U.S. income tax purposes for these acquisitions. On January 24, 2020, the Company acquired 100% of the voting stock of Sys-Tech Solutions, Inc. ("Systech"), a leading provider of product traceability, regulatory compliance and brand-protection software and solutions to pharmaceutical and consumer products manufacturers, for $162,942, net of cash acquired. The Systech acquisition strengthens the portfolio of solutions offered by the Imaging & Identification segment. In connection with this acquisition, the Company recorded goodwill of $92,256 and intangible assets of $76,100, primarily related to customer intangibles. On February 18, 2020, the Company acquired 100% of the voting stock of So. Cal. Soft-Pak, Incorporated ("Soft-Pak") Software Solutions, a leading specialized provider of integrated back office, route management and customer relationship management software solutions to the waste and recycling fleet industry for $45,479, net of cash acquired. The Soft-Pak acquisition strengthens the digital offerings within the Engineered Products segment. In connection with this acquisition, the Company recorded goodwill of $33,125 and intangible assets of $12,800, primarily related to customer intangibles. The following presents the preliminary allocation of purchase price to the assets acquired and liabilities assumed, based on their estimated fair values at acquisition date: Total Current assets, net of cash acquired $ 19,816 Property, plant and equipment 1,580 Goodwill 125,381 Intangible assets 88,900 Current liabilities (15,073) Other liabilities (12,183) Net assets acquired $ 208,421 The amounts assigned to goodwill and major intangible asset classifications were as follows: Amount allocated Useful life (in years) Goodwill - tax deductible $ 33,125 na Goodwill - non deductible 92,256 na Customer intangibles 74,100 12 Trademarks 5,100 15 Other intangibles 9,700 6 - 9 $ 214,281 2019 Acquisitions On January 25, 2019, the Company acquired the assets of Belanger, Inc. ("Belanger"), a leading full-line car wash equipment manufacturer for $175,083, net of cash acquired. The Belanger acquisition strengthens Dover's position in the vehicle wash business within the Fueling Solutions segment. In connection with this acquisition, the Company recorded goodwill of $97,817 and intangible assets of $77,000, primarily related to customer intangibles. The intangible assets are being amortized over 9 to 15 years. Pro Forma Information The following unaudited pro forma information illustrates the impact of 2020 and 2019 acquisitions on the Company’s revenue and earnings from operations for the three months ended March 31, 2020 and 2019, respectively. The unaudited pro forma information assumes that the 2020 and 2019 acquisitions had taken place at the beginning of the prior year, 2019 and 2018, respectively. Unaudited pro forma earnings are adjusted to reflect the comparable impact of additional depreciation and amortization expense, net of tax, resulting from the fair value measurement of intangible and tangible assets relating to the year of acquisition. The unaudited pro forma effects for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended March 31, 2020 2019 Revenue: As reported $ 1,655,939 $ 1,724,757 Pro forma 1,661,825 1,746,533 Net earnings: As reported $ 176,279 $ 105,705 Pro forma 180,433 106,188 |
Disposed and Discontinued Opera
Disposed and Discontinued Operations | 3 Months Ended |
Mar. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Discontinued Operations | 4. Disposed Operations Management evaluates Dover's businesses periodically for their strategic fit within its operations and may from time to time sell or discontinue certain operations for various reasons. 2020 On March 6, 2020, the Company completed the sale of the Chino, California branch of The AMS Group ("AMS Chino"), a wholly owned subsidiary of the Company. Upon disposal of AMS Chino, the Company recognized total consideration of $16,850, which resulted in a pre-tax gain on sale of $6,551 included within the Condensed Consolidated Statements of Earnings and within the Refrigeration & Food Equipment Segment for the three months ended March 31, 2020. 2019 On March 29, 2019, the Co mpany entered into a definitive agreement to sell Finder Pompe S.r.l ("Finder"), a wholly owned subsidiary, to Gruppo Aturia S.p.A (“Aturia”). As of March 31, 2019, Finder met the criteria to be classified as held for sale. The Company classified Finder's assets and liabilities separately on the consolidated balance sheet as of March 31, 2019. Based on the total consideration from the sale, net of selling costs, the Company recorded a loss on the assets held for sale of $46,946 in the Condensed Consolidated Statements of Earnings during the three months ended March 31, 2019. The loss was comprise d of an impairment on assets held for sale of $21,607 an d $25,339 of foreign currency translation losses reclassified out of accumulated other comprehensive losses. On April 2, 2019, Dover completed the sale of Finder to Aturia, which generated total cash proceeds of $24,218. The Finder business was included in the results of the Pumps & Process Solutions segment. The sale does not represent a strategic shift that will have a major effect on operations and financial results and, therefore, did not qualify for presentation as a discontinued operation. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory, Net [Abstract] | |
Inventory Disclosure | 5. Inventories March 31, 2020 December 31, 2019 Raw materials $ 486,866 $ 467,912 Work in progress 172,173 162,670 Finished goods 300,725 280,051 Subtotal 959,764 910,633 Less reserves (107,689) (104,492) Total $ 852,075 $ 806,141 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | 6. Property, Plant and Equipment, net March 31, 2020 December 31, 2019 Land $ 54,580 $ 56,583 Buildings and improvements 522,155 527,192 Machinery, equipment and other 1,662,535 1,648,354 Property, plant and equipment, gross 2,239,270 2,232,129 Accumulated depreciation (1,397,457) (1,389,811) Property, plant and equipment, net $ 841,813 $ 842,318 |
Credit Losses
Credit Losses | 3 Months Ended |
Mar. 31, 2020 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | 7. Credit Losses Effective January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments prospectively. This ASU replaces the incurred loss impairment model with an expected credit loss impairment model for financial instruments, including trade receivables. The amendment requires entities to consider forward-looking information to estimate expected credit losses, resulting in earlier recognition of losses for receivables that are current or not yet due, which were not considered under the previous accounting guidance. Upon adoption, the Company recorded a noncash cumulative effect adjustment to retained earnings of $2.1 million, net of $0.6 million of income taxes, on the opening consolidated balance sheet as of January 1, 2020. The Company is exposed to credit losses primarily through sales of products and services. The Company’s expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. Due to the short-term nature of such receivables, the estimate of amount of accounts receivable that may not be collected is based on aging of the accounts receivable balances and the financial condition of customers. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company’s monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. The Company considered the current and expected future economic and market conditions surrounding the novel coronavirus ("COVID-19") pandemic and determined that the estimate of credit losses was not significantly impacted. Estimates are used to determine the allowance. It is based on assessment of anticipated payment and all other historical, current and future information that is reasonably available. The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected. 2020 Beginning Balance, January 1, $ 29,381 Adoption of ASU 2016-13, cumulative-effect adjustment to retained earnings 2,706 Provision for expected credit losses 3,703 Amounts written off charged against the allowance (811) Other, including dispositions and foreign currency translation (1,078) Ending Balance, March 31, $ 33,901 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 8. Goodwill and Other Intangible Assets The changes in the carrying value of goodwill by reportable operating segments were as follows: Engineered Products Fueling Solutions Imaging & Identification Pumps & Process Solutions Refrigeration & Food Equipment Total Balance at December 31, 2019 $ 636,571 $ 873,381 $ 977,069 $ 750,627 $ 545,699 $ 3,783,347 Acquisitions 33,125 — 92,256 — — 125,381 Disposition of business — — — — (2,841) (2,841) Foreign currency translation (4,446) (26,008) (8,514) (5,790) (312) (45,070) Balance at March 31, 2020 $ 665,250 $ 847,373 $ 1,060,811 $ 744,837 $ 542,546 $ 3,860,817 During the three months ended March 31, 2020, the Company recorded additions of $125,381 to goodwill as a result of the acquisitions with the Engineered Products and Imaging & Identification segments discussed in Note 3 — Acquisitions . During the three months ended March 31, 2020, the Company disposed of $2,841 of the Refrigeration & Food Equipment segment goodwill as a result of the sale of a business as discussed in Note 4 — Disposed Operations. Dover performs its annual goodwill impairment testing in the fourth quarter of each year. During the 2019 impairment testing, all fifteen reporting units had fair values substantially in excess of their carrying values. In addition to the annual impairment test, the Company is required to regularly assess whether a triggering event has occurred which would require interim impairment testing. The Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and its impact on each of the reporting units. Further, the Company assessed the current market capitalization, forecasts and the amount of headroom in the 2019 impairment test. The Company determined that a triggering event has not occurred which would require an interim impairment test to be performed. Refer to "Segment Results of Operations" for further details on the COVID-19 impact to the Company's operations. The Company’s definite-lived and indefinite-lived intangible assets by major asset class were as follows: March 31, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets: Customer intangibles $ 1,467,966 $ 731,391 $ 736,575 $ 1,410,636 $ 714,566 $ 696,070 Trademarks 220,805 89,123 131,682 218,064 85,791 132,273 Patents 158,612 134,360 24,252 159,376 133,677 25,699 Unpatented technologies 162,763 100,858 61,905 154,505 99,276 55,229 Distributor relationships 80,237 44,889 35,348 82,779 44,202 38,577 Drawings & manuals 26,619 22,228 4,391 27,500 22,403 5,097 Other 22,908 17,482 5,426 22,355 16,939 5,416 Total 2,139,910 1,140,331 999,579 2,075,215 1,116,854 958,361 Unamortized intangible assets: Trademarks 96,561 — 96,561 96,653 — 96,653 Total intangible assets, net $ 2,236,471 $ 1,140,331 $ 1,096,140 $ 2,171,868 $ 1,116,854 $ 1,055,014 |
Restructuring Activities
Restructuring Activities | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | 9. Restructuring Activities The Company's restructuring charges by segment were as follows: Three Months Ended March 31, 2020 2019 Engineered Products $ 358 $ 79 Fueling Solutions 1,475 738 Imaging & Identification 256 291 Pumps & Process Solutions 3,846 381 Refrigeration & Food Equipment 560 1,412 Corporate 846 35 Total $ 7,341 $ 2,936 These amounts are classified in the Condensed Consolidated Statements of Earnings as follows: Cost of goods and services $ 1,542 $ 1,179 Selling, general and administrative expenses 5,799 1,757 Total $ 7,341 $ 2,936 The restructuring expenses of $7,341 incurred during the three months ended March 31, 2020, were a result of restructuring programs initiated in 2019. Restructuring expense was comprised primarily of broad-based selling, general and administrative expense reduction and broad-based operational efficiency initiatives focusing on footprint consolidation, operational optimization and IT centralization designed to increase operating margin, enhance operations and position the Company for sustained growth and investment. The Company expects to incur additional charges of approximately $6 million during the remainder of 2020. COVID-19 has not resulted in significant restructuring costs. Additional programs, beyond the scope of the announced programs, may be implemented during 2020 with related restructuring charges. The $7,341 of restructuring charges incurred during the first quarter of 2020 primarily included the following items: • The Engineered Products segment recorded $358 of restructuring charges principally related to headcount reductions. • The Fueling Solutions segment recorded $1,475 of restructuring charges principally related to headcount reductions. • The Imaging & Identification segment recorded $256 of restructuring charges principally related to headcount reductions. • The Pumps & Process Solutions segment recorded $3,846 of restructuring expense primarily due to headcount reductions and facility restructuring costs. • The Refrigeration & Food Equipment segment recorded $560 of restructuring expense primarily due to headcount reductions and facility restructuring costs. • Corporate recorded $846 of restructuring charges primarily related to headcount reductions and associated exit costs related to IT centralization initiatives. The Company’s severance and exit accrual activities were as follows: Severance Exit Total Balance at December 31, 2019 $ 13,751 $ 2,639 $ 16,390 Restructuring charges 4,014 3,327 7,341 Payments (6,510) (2,049) (8,559) Other, including foreign currency translation 184 (2,376) (1) (2,192) Balance at March 31, 2020 $ 11,439 $ 1,541 $ 12,980 (1) Other activity in exit reserves primarily represents the non-cash write-off of certain long-lived assets in connection with certain facility closures. |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | 10. Borrowings Borrowings consisted of the following: March 31, 2020 December 31, 2019 Short-term Short-term borrowings $ 500,000 $ — Commercial paper — 84,700 Notes payable $ 500,000 $ 84,700 Carrying amount (1) Principal March 31, 2020 December 31, 2019 Long-term 3.150% 10-year notes due November 15, 2025 $ 400,000 $ 396,210 $ 396,042 1.25% 10-year notes due November 9, 2026 (euro-denominated) € 600,000 645,487 658,089 0.750% 8-year notes due November 4, 2027 (euro denominated) € 500,000 537,463 548,008 6.65% 30-year debentures due June 1, 2028 $ 200,000 199,180 199,155 2.950% 10-year notes due November 4, 2029 $ 300,000 296,366 296,270 5.375% 30-year debentures due October 15, 2035 $ 300,000 296,122 296,060 6.60% 30-year notes due March 15, 2038 $ 250,000 247,968 247,939 5.375% 30-year notes due March 1, 2041 $ 350,000 344,222 344,153 Total long-term debt $ 2,963,018 $ 2,985,716 (1) Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discounts were $18.3 million and $18.9 million as of March 31, 2020 and December 31, 2019, respectively. Total deferred debt issuance costs were $15.7 million and $16.2 million as of March 31, 2020 and December 31, 2019, respectively. As of March 31, 2020, the Company maintained a $1.0 billion five-year unsecured revolving credit facility (the "Credit Agreement") with a syndicate of banks which expires on October 4, 2024. The Company uses the Credit Agreement as liquidity back-up for its commercial paper program. On March 16, 2020, the Company borrowed $500 million due May 19, 2020 under the Credit Agreement. Proceeds from the borrowing were used to repay all of the Company's outstanding commercial paper and for general corporate purposes. The Company was in compliance with all covenants in the Credit Agreement and other long-term debt covenants at March 31, 2020 and had an interest coverage ratio of consolidated EBITDA to consolidated net interest expense of 11.2 to 1. As of March 31, 2020, the Company had approximately $143.5 million outstanding in letters of credit, surety bonds, and performance and other guarantees which expire on various dates through 2029. These letters of credit and bonds are primarily issued as security for insurance, warranty and other performance obligations. In general, we would only be liable for the amount of these guarantees in the event of default in the performance of our obligations. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | 11. 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 contracts designated as cash flow hedges. At March 31, 2020 and December 31, 2019, the Company had contracts with total notional amounts of $170,672 and $179,580, respectively, to exchange currencies, principally Euro, Pound Sterling, Swedish Krona, Chinese Yuan, Canadian Dollar, and Swiss Franc. 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 $76,553 and $79,707 as of March 31, 2020 and December 31, 2019, 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. Gains and losses on these contracts are recorded in other income, net in the Condensed Consolidated Statements of Earnings. The following table sets forth the fair values of derivative instruments held by the Company as of March 31, 2020 and December 31, 2019 and the balance sheet lines in which they are recorded: Fair Value Asset (Liability) March 31, 2020 December 31, 2019 Balance Sheet Caption Foreign currency forward $ 1,826 $ 2,892 Prepaid / Other current assets Foreign currency forward (2,979) (476) Other accrued expenses For a cash flow hedge, the change in estimated fair value of a hedging instrument is recorded in accumulated other comprehensive (loss) earnings as a separate component of the Condensed Consolidated Statements of Stockholders' Equity and is reclassified into revenues and cost of goods and services in the Condensed Consolidated Statements of Earnings during the period in which the hedged transaction is recognized. 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. The Company has designated the €600,000 and €500,000 of euro-denominated notes issued November 9, 2016 and November 4, 2019, respectively, as hedges of a portion of its net investment in euro-denominated operations. Changes in the value of the euro-denominated debt are recognized in foreign currency translation adjustments within other comprehensive earnings of the Condensed Consolidated Statements of Comprehensive Earnings to offset changes in the value of the net investment in euro-denominated operations. Amounts recognized in other comprehensive earnings for the gains (losses) on net investment hedges were as follows: Three Months Ended March 31, 2020 2019 Gain on euro-denominated debt $ 23,624 $ 3,557 Tax expense (5,139) (747) Net gain on net investment hedges, net of tax $ 18,485 $ 2,810 Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of assets or liabilities. Level 3 inputs are unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Level 2 Level 2 Assets: Foreign currency cash flow hedges $ 1,826 $ 2,892 Liabilities: Foreign currency cash flow hedges 2,979 476 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, net at March 31, 2020 and December 31, 2019 , w as $3,311,012 and $3,322,033, 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 fair value hierarchy. The carrying values of cash and cash equivalents, trade receivables, accounts payable and notes payable are reasonable estimates of their fair values as of March 31, 2020 and December 31, 2019 due to the short-term nature of these instruments. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The effective tax rates for the three months ended March 31, 2020 and 2019 were 17.4% and 23.6%, r espectively. The decrease in the effective tax rate for the three months ended March 31, 2020 relative to the prior comparable period is primarily driven by favorable audit settlements. The three months ended March 31, 2019 includes a discrete tax benefit from stock exercises, partially offset by the exclusion of capital losses on the sale of Finder under local tax law. 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 $9.3 million. |
Equity Incentive Program
Equity Incentive Program | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Compensation | 13. Equity Incentive Program The Company typically grants equity awards annually at its regularly scheduled first quarter meeting of the Compensation Committee of the Board of Directors. During the three months ended March 31, 2020, the Company issued stock-settled appreciation rights ("SARs") covering 389,603 shares, performance share awards of 49,056 and restricted stock units ("RSUs") of 78,553. 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 were as follows: SARs 2020 2019 Risk-free interest rate 1.44 % 2.51 % Dividend yield 1.65 % 2.13 % Expected life (years) 5.5 5.6 Volatility 22.76 % 22.35 % Grant price $119.86 $91.20 Fair value per share at date of grant $22.54 $17.55 The performance share awards granted in 2020 are market condition awards as attainment is based on Dover's performance relative to its peer group (companies listed under the S&P 500 Industrials sector) for the relevant performance period. The performance period and vesting period for these awards is approximately three years. These awards were valued on the date of grant using the Monte Carlo simulation model (a binomial lattice-based valuation model) with the following assumptions, and are generally recognized ratably over the vesting period, and is not subject to change based on future market conditions. The assumptions used in determining the fair value of the performance shares granted in 2020 were as follows: Performance Shares 2020 Risk-free interest rate 1.40 % Dividend yield 1.65 % Expected life (years) 2.9 Volatility 23.30 % Grant price $119.86 Fair value per share at date of grant $165.71 The performance share awards granted in 2019 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 selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings in the period of change. The fair value and average attainment used in determining stock-based compensation cost for the performance shares issued in 2019 is as follows for the three months ended March 31, 2020: Performance Shares 2019 Fair value per share at date of grant $91.20 Average attainment rate reflected in expense 209.31% The Company also has granted RSUs, and the fair value of these awards was determined using Dover's closing stock price on the date of grant. Stock-based compensation is reported within selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings. The following table summarizes the Company’s compensation expense relating to all stock-based incentive plans: Three Months Ended March 31, 2020 2019 Pre-tax stock-based compensation expense $ 3,252 $ 8,182 Tax benefit (349) (1,048) Total stock-based compensation expense, net of tax $ 2,903 $ 7,134 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 14. Commitments and Contingent Liabilities Litigation Certain 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, certain 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 estimated liabilities have been established. At March 31, 2020 and December 31, 2019, the Company had estimated liabilities totaling $30,233 and $30,608, 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 estimated liabilities for legal matters that are probable and estimable, and at March 31, 2020 and December 31, 2019, these estimated liabilities were 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 of the Company's products. Amounts provided for are based on historical costs and adjusted for new claims and are included within other accrued expenses and other liabilities in the Condensed Consolidated Balance Sheet. The changes in the carrying amount of product warranties through March 31, 2020 and 2019, were as follows: 2020 2019 Beginning Balance, December 31 of the Prior Year $ 49,116 $ 50,073 Provision for warranties 13,360 13,955 Settlements made (15,526) (14,993) Other adjustments, including acquisitions and currency translation (1,079) (792) Ending Balance, March 31 $ 45,871 $ 48,243 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2020 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans | 15. Employee Benefit Plans Retirement Plans The Company sponsors qualified defined benefit pension plans covering certain employees of the Company and its subsidiaries, although the U.S. qualified and non-qualified defined benefit plans are closed to new entrants. 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 tables below set forth the components of the Company’s net periodic (income) expense relating to retirement benefit plans. The service cost component is recognized within selling, general and administrative expenses and cost of goods and services, depending on the functional area of the underlying employees included in the plans, and the non-operating components of pension costs are included within other income, net in the Condensed Consolidated Statements of Earnings. Qualified Defined Benefits Three Months Ended March 31, U.S. Plan Non-U.S. Plans 2020 2019 2020 2019 Service cost $ 1,706 $ 1,754 $ 1,293 $ 1,545 Interest cost 4,068 4,756 825 1,241 Expected return on plan assets (7,869) (8,534) (1,677) (1,517) Amortization: Prior service cost (credit) 57 76 (119) (58) Recognized actuarial loss 1,884 — 742 816 Net periodic (income) expense $ (154) $ (1,948) $ 1,064 $ 2,027 Non-Qualified Supplemental Benefits Three Months Ended March 31, 2020 2019 Service cost $ 318 $ 486 Interest cost 441 668 Amortization: Prior service cost 424 703 Recognized actuarial gain (464) (570) Net periodic expense $ 719 $ 1,287 Post-Retirement Benefit Plans The Company also maintains post-retirement benefit plans, although these plans are closed to new entrants. The supplemental and post-retirement benefit plans are supported by the general assets of the Company. The following table sets forth the components of the Company’s net periodic expense relating to its post-retirement benefit plans: Three Months Ended March 31, 2020 2019 Service cost $ 5 $ 5 Interest cost 60 78 Amortization: Prior service cost 3 3 Recognized actuarial gain (4) (18) Net periodic expense $ 64 $ 68 The total amount amortized out of accumulated other comprehensive earnings into net periodic pension and post-retirement expense totaled $2,523 and $952 for the three months ended March 31, 2020 and 2019, respectively. 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 were $14,048, and $12,906 for the three months ended March 31, 2020 and 2019, respectively. |
Other Comprehensive Earnings
Other Comprehensive Earnings | 3 Months Ended |
Mar. 31, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive Earnings | 16. Other Comprehensive Earnings The amounts recognized in other comprehensive (loss) earnings were as follows: Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation adjustments $ (88,415) $ (5,139) $ (93,554) $ 49,786 $ (747) $ 49,039 Pension and other post-retirement benefit plans 2,523 (568) 1,955 952 (205) 747 Changes in fair value of cash flow hedges (5,074) 1,121 (3,953) 2,993 (629) 2,364 Total other comprehensive (loss) earnings $ (90,966) $ (4,586) $ (95,552) $ 53,731 $ (1,581) $ 52,150 Total comprehensive earnings were as follows: Three Months Ended March 31, 2020 2019 Net earnings $ 176,279 $ 105,705 Other comprehensive (loss) earnings (95,552) 52,150 Comprehensive earnings $ 80,727 $ 157,855 Amounts reclassified from accumulated other comprehensive loss to earnings during the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended March 31, 2020 2019 Foreign currency translation: Reclassification of foreign currency translation losses to earnings for assets held for sale $ — $ 25,339 Tax benefit — — Net of tax $ — $ 25,339 Pension and other postretirement benefit plans: Amortization of actuarial losses $ 2,158 $ 228 Amortization of prior service costs 365 724 Total before tax 2,523 952 Tax benefit (568) (205) Net of tax $ 1,955 $ 747 Cash flow hedges: Net losses (gains) reclassified into earnings $ 1,420 $ (291) Tax (benefit) provision (299) 61 Net of tax $ 1,121 $ (230) The reclassification of foreign currency translation losses to earnings during the three months ended March 31, 2019 relates to the sale of Finder. See Note 4 — Disposed Operations for further details. The Company recognizes the amortization of net actuarial gains and losses and prior service costs in other income, net within the Condensed Consolidated Statements of Earnings. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 17. Segment Information The Company categorizes its operating companies into five reportable segments as follows: • Engineered Products segment is a provider of a wide range of products, software and services that have broad customer applications across a number of markets, including aftermarket vehicle service, solid waste handling, industrial automation, aerospace and defense, industrial winch and hoist, and fluid dispensing. • Fueling Solutions segment is focused on providing components, equipment and software and service solutions enabling safe transport of fuels and other hazardous fluids along the supply chain, as well as the safe and efficient operation of retail fueling and vehicle wash establishments. • Imaging & Identification segment supplies precision marking and coding, product traceability and digital textile printing equipment, as well as related consumables, software and services. • Pumps & Process Solutions segment manufactures specialty pumps, fluid handling components, plastics and polymer processing equipment, and highly engineered components for rotating and reciprocating machines. • Refrigeration & Food Equipment segment is a provider of innovative and energy-efficient equipment and systems that serve the commercial refrigeration, heating and cooling and food equipment markets. Segment financial information and a reconciliation of segment results to consolidated results was as follows: Three Months Ended March 31, 2020 2019 Revenue: Engineered Products $ 408,160 $ 418,851 Fueling Solutions 359,982 373,050 Imaging & Identification 256,765 268,354 Pumps & Process Solutions 319,536 330,219 Refrigeration & Food Equipment 311,913 334,643 Intra-segment eliminations (417) (360) Total consolidated revenue $ 1,655,939 $ 1,724,757 Net earnings: Segment earnings (EBIT): (1) Engineered Products $ 69,094 $ 67,119 Fueling Solutions 53,498 37,230 Imaging & Identification 51,482 55,955 Pumps & Process Solutions (2) 66,079 14,991 Refrigeration & Food Equipment (3) 23,529 24,807 Total segment earnings (EBIT) 263,682 200,102 Corporate expense / other (4) 24,097 30,866 Interest expense 27,268 31,808 Interest income (1,183) (890) Earnings before provision for income taxes 213,500 138,318 Provision for income taxes 37,221 32,613 Net earnings $ 176,279 $ 105,705 (1) Segment earnings (EBIT) includes non-operating income and expense directly attributable to the segments. Non-operating income and expense includes gain on sale of a business and other income, net. (2) The three months ended March 31, 2019 includes a $46,946 loss on assets held for sale for Finder. (3) The three months ende d March 31, 2020 i ncludes a $6,551 gain on the sale of AMS Chino. (4) 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, shared business services overhead costs, deal related expenses and various administrative expenses relating to the corporate headquarters. The following table presents revenue disaggregated by geography based on the location of the Company's customer: Three Months Ended March 31, Revenue by geography 2020 2019 United States $ 956,640 $ 919,892 Europe 361,166 402,645 Asia 154,275 196,350 Other Americas 129,049 138,118 Other 54,809 67,752 Total $ 1,655,939 $ 1,724,757 |
Share Repurchases
Share Repurchases | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Share repurchases | 18. Share Repurchases In February 2018, the Company's Board of Directors approved a standing share repurchase authorization, whereby the Company may repurchase up to 20 million shares of its common stock through December 31, 2020. This share repurchase authorization replaced the January 2015 share repurchase authorization. During the three months ended March 31, 2020, under the February 2018 authorization, the Company repurchased 548,659 shares of common stock at a total cost of $52,916, or $96.45 per share. There were no repurchases under the February 2018 authorization during the three months ended March 31, 2019. The Company has suspended further repurchases as a result of business uncertainty related to COVID-19. As of March 31, 2020, 7,811,385 shares remain authorized for repurchase under the February 2018 share repurchase authorization. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 19. Earnings per Share The following table sets forth a reconciliation of the information used in computing basic and diluted earnings per share: Three Months Ended March 31, 2020 2019 Net earnings $ 176,279 $ 105,705 Basic earnings per common share: Net earnings $ 1.22 $ 0.73 Weighted average shares outstanding 144,259,000 145,087,000 Diluted earnings per common share: Net earnings $ 1.21 $ 0.72 Weighted average shares outstanding 145,782,000 146,911,000 The following table is a reconciliation of the share amounts used in computing earnings per share: Three Months Ended March 31, 2020 2019 Weighted average shares outstanding - Basic 144,259,000 145,087,000 Dilutive effect of assumed exercise of SARs and vesting of performance shares and RSUs 1,523,000 1,824,000 Weighted average shares outstanding - Diluted 145,782,000 146,911,000 Diluted earnings per share amounts are computed using the weighted average number of common shares outstanding and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of SARs and vesting of performance shares and RSUs, as determined using the treasury stock method. The weighted average number of anti-dilutive potential common shares excluded from the calculation above were approximately 65,000 and 42,000 for the three months ended March 31, 2020 and 2019, respectively. |
Recent Accounting Standards
Recent Accounting Standards | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Standards | 20. Recent Accounting Pronouncements Recently Adopted Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This resulted in the earlier recognition of allowances for losses. In addition, the FASB issued ASU 2019-04, Codification Improvements to Topic 326 which provides clarity on certain aspects of the amendments in ASU 2016-13. The Company adopted this guidance prospectively on January 1, 2020. Upon adoption, the Company recorded a noncash cumulative effect adjustment to retained earnings of $2.1 million, net of $0.6 million of income taxes, on the opening consolidated balance sheet as of January 1, 2020. See Note 7 — Credit Losses for further details. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 21. Subsequent EventsSubsequent to March 31, 2020, the Company reduced production at our operations in response to COVID-19 related government mandates, reduced demand conditions and other operational drivers in several of our businesses. This resulted in temporary, partial closures of several facilities in the U.S. and Europe across our business. Meanwhile, certain facilities that were closed as of March 31, 2020 have re-opened. The extent of the impact of the COVID-19 outbreak on our operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, its impact on our customers and suppliers and the range of governmental and community reactions to the pandemic, which are uncertain and cannot be fully predicted at this time. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | The following table provides information about contract assets and contract liabilities from contracts with customers: March 31, 2020 December 31, 2019 January 1, 2019 Contract assets $ 13,841 $ 14,894 $ 9,330 Contract liabilities - current 61,508 44,001 36,461 Contract liabilities - non-current 10,363 9,121 9,382 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following presents the preliminary allocation of purchase price to the assets acquired and liabilities assumed, based on their estimated fair values at acquisition date: Total Current assets, net of cash acquired $ 19,816 Property, plant and equipment 1,580 Goodwill 125,381 Intangible assets 88,900 Current liabilities (15,073) Other liabilities (12,183) Net assets acquired $ 208,421 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The amounts assigned to goodwill and major intangible asset classifications were as follows: Amount allocated Useful life (in years) Goodwill - tax deductible $ 33,125 na Goodwill - non deductible 92,256 na Customer intangibles 74,100 12 Trademarks 5,100 15 Other intangibles 9,700 6 - 9 $ 214,281 |
Pro forma results of operations | The following unaudited pro forma information illustrates the impact of 2020 and 2019 acquisitions on the Company’s revenue and earnings from operations for the three months ended March 31, 2020 and 2019, respectively. The unaudited pro forma information assumes that the 2020 and 2019 acquisitions had taken place at the beginning of the prior year, 2019 and 2018, respectively. Unaudited pro forma earnings are adjusted to reflect the comparable impact of additional depreciation and amortization expense, net of tax, resulting from the fair value measurement of intangible and tangible assets relating to the year of acquisition. The unaudited pro forma effects for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended March 31, 2020 2019 Revenue: As reported $ 1,655,939 $ 1,724,757 Pro forma 1,661,825 1,746,533 Net earnings: As reported $ 176,279 $ 105,705 Pro forma 180,433 106,188 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory, Net [Abstract] | |
Components of Inventory | March 31, 2020 December 31, 2019 Raw materials $ 486,866 $ 467,912 Work in progress 172,173 162,670 Finished goods 300,725 280,051 Subtotal 959,764 910,633 Less reserves (107,689) (104,492) Total $ 852,075 $ 806,141 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment, net | March 31, 2020 December 31, 2019 Land $ 54,580 $ 56,583 Buildings and improvements 522,155 527,192 Machinery, equipment and other 1,662,535 1,648,354 Property, plant and equipment, gross 2,239,270 2,232,129 Accumulated depreciation (1,397,457) (1,389,811) Property, plant and equipment, net $ 841,813 $ 842,318 |
Credit Losses (Tables)
Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Credit Loss [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected. 2020 Beginning Balance, January 1, $ 29,381 Adoption of ASU 2016-13, cumulative-effect adjustment to retained earnings 2,706 Provision for expected credit losses 3,703 Amounts written off charged against the allowance (811) Other, including dispositions and foreign currency translation (1,078) Ending Balance, March 31, $ 33,901 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill [Line Items] | |
Goodwill | The changes in the carrying value of goodwill by reportable operating segments were as follows: Engineered Products Fueling Solutions Imaging & Identification Pumps & Process Solutions Refrigeration & Food Equipment Total Balance at December 31, 2019 $ 636,571 $ 873,381 $ 977,069 $ 750,627 $ 545,699 $ 3,783,347 Acquisitions 33,125 — 92,256 — — 125,381 Disposition of business — — — — (2,841) (2,841) Foreign currency translation (4,446) (26,008) (8,514) (5,790) (312) (45,070) Balance at March 31, 2020 $ 665,250 $ 847,373 $ 1,060,811 $ 744,837 $ 542,546 $ 3,860,817 |
Schedule of Intangible Assets | The Company’s definite-lived and indefinite-lived intangible assets by major asset class were as follows: March 31, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets: Customer intangibles $ 1,467,966 $ 731,391 $ 736,575 $ 1,410,636 $ 714,566 $ 696,070 Trademarks 220,805 89,123 131,682 218,064 85,791 132,273 Patents 158,612 134,360 24,252 159,376 133,677 25,699 Unpatented technologies 162,763 100,858 61,905 154,505 99,276 55,229 Distributor relationships 80,237 44,889 35,348 82,779 44,202 38,577 Drawings & manuals 26,619 22,228 4,391 27,500 22,403 5,097 Other 22,908 17,482 5,426 22,355 16,939 5,416 Total 2,139,910 1,140,331 999,579 2,075,215 1,116,854 958,361 Unamortized intangible assets: Trademarks 96,561 — 96,561 96,653 — 96,653 Total intangible assets, net $ 2,236,471 $ 1,140,331 $ 1,096,140 $ 2,171,868 $ 1,116,854 $ 1,055,014 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The Company's restructuring charges by segment were as follows: Three Months Ended March 31, 2020 2019 Engineered Products $ 358 $ 79 Fueling Solutions 1,475 738 Imaging & Identification 256 291 Pumps & Process Solutions 3,846 381 Refrigeration & Food Equipment 560 1,412 Corporate 846 35 Total $ 7,341 $ 2,936 These amounts are classified in the Condensed Consolidated Statements of Earnings as follows: Cost of goods and services $ 1,542 $ 1,179 Selling, general and administrative expenses 5,799 1,757 Total $ 7,341 $ 2,936 |
Schedule of Restructuring Reserve by Type of Cost | The Company’s severance and exit accrual activities were as follows: Severance Exit Total Balance at December 31, 2019 $ 13,751 $ 2,639 $ 16,390 Restructuring charges 4,014 3,327 7,341 Payments (6,510) (2,049) (8,559) Other, including foreign currency translation 184 (2,376) (1) (2,192) Balance at March 31, 2020 $ 11,439 $ 1,541 $ 12,980 (1) Other activity in exit reserves primarily represents the non-cash write-off of certain long-lived assets in connection with certain facility closures. |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Borrowings consisted of the following: March 31, 2020 December 31, 2019 Short-term Short-term borrowings $ 500,000 $ — Commercial paper — 84,700 Notes payable $ 500,000 $ 84,700 |
Schedule of Long-term Debt Instruments | Carrying amount (1) Principal March 31, 2020 December 31, 2019 Long-term 3.150% 10-year notes due November 15, 2025 $ 400,000 $ 396,210 $ 396,042 1.25% 10-year notes due November 9, 2026 (euro-denominated) € 600,000 645,487 658,089 0.750% 8-year notes due November 4, 2027 (euro denominated) € 500,000 537,463 548,008 6.65% 30-year debentures due June 1, 2028 $ 200,000 199,180 199,155 2.950% 10-year notes due November 4, 2029 $ 300,000 296,366 296,270 5.375% 30-year debentures due October 15, 2035 $ 300,000 296,122 296,060 6.60% 30-year notes due March 15, 2038 $ 250,000 247,968 247,939 5.375% 30-year notes due March 1, 2041 $ 350,000 344,222 344,153 Total long-term debt $ 2,963,018 $ 2,985,716 (1) Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discounts were $18.3 million and $18.9 million as of March 31, 2020 and December 31, 2019, respectively. Total deferred debt issuance costs were $15.7 million and $16.2 million as of March 31, 2020 and December 31, 2019, respectively. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivative instruments and the balance sheet lines in which they are recorded | The following table sets forth the fair values of derivative instruments held by the Company as of March 31, 2020 and December 31, 2019 and the balance sheet lines in which they are recorded: Fair Value Asset (Liability) March 31, 2020 December 31, 2019 Balance Sheet Caption Foreign currency forward $ 1,826 $ 2,892 Prepaid / Other current assets Foreign currency forward (2,979) (476) Other accrued expenses |
Schedule of net investment hedges in accumulated other comprehensive income (loss) | Amounts recognized in other comprehensive earnings for the gains (losses) on net investment hedges were as follows: Three Months Ended March 31, 2020 2019 Gain on euro-denominated debt $ 23,624 $ 3,557 Tax expense (5,139) (747) Net gain on net investment hedges, net of tax $ 18,485 $ 2,810 |
Assets and liabilities measured at fair value on a recurring basis | The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Level 2 Level 2 Assets: Foreign currency cash flow hedges $ 1,826 $ 2,892 Liabilities: Foreign currency cash flow hedges 2,979 476 |
Equity Incentive Program (Table
Equity Incentive Program (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based incentive plans compensation expense | Stock-based compensation is reported within selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings. The following table summarizes the Company’s compensation expense relating to all stock-based incentive plans: Three Months Ended March 31, 2020 2019 Pre-tax stock-based compensation expense $ 3,252 $ 8,182 Tax benefit (349) (1,048) Total stock-based compensation expense, net of tax $ 2,903 $ 7,134 |
Stock Appreciation Rights (SARs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The assumptions used in determining the fair value of the SARs awarded during the respective periods were as follows: SARs 2020 2019 Risk-free interest rate 1.44 % 2.51 % Dividend yield 1.65 % 2.13 % Expected life (years) 5.5 5.6 Volatility 22.76 % 22.35 % Grant price $119.86 $91.20 Fair value per share at date of grant $22.54 $17.55 |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The assumptions used in determining the fair value of the performance shares granted in 2020 were as follows: Performance Shares 2020 Risk-free interest rate 1.40 % Dividend yield 1.65 % Expected life (years) 2.9 Volatility 23.30 % Grant price $119.86 Fair value per share at date of grant $165.71 |
Valuation assumptions | The fair value and average attainment used in determining stock-based compensation cost for the performance shares issued in 2019 is as follows for the three months ended March 31, 2020: Performance Shares 2019 Fair value per share at date of grant $91.20 Average attainment rate reflected in expense 209.31% |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | Estimated warranty program claims are provided for at the time of sale of the Company's products. Amounts provided for are based on historical costs and adjusted for new claims and are included within other accrued expenses and other liabilities in the Condensed Consolidated Balance Sheet. The changes in the carrying amount of product warranties through March 31, 2020 and 2019, were as follows: 2020 2019 Beginning Balance, December 31 of the Prior Year $ 49,116 $ 50,073 Provision for warranties 13,360 13,955 Settlements made (15,526) (14,993) Other adjustments, including acquisitions and currency translation (1,079) (792) Ending Balance, March 31 $ 45,871 $ 48,243 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Defined benefit pension plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | The tables below set forth the components of the Company’s net periodic (income) expense relating to retirement benefit plans. The service cost component is recognized within selling, general and administrative expenses and cost of goods and services, depending on the functional area of the underlying employees included in the plans, and the non-operating components of pension costs are included within other income, net in the Condensed Consolidated Statements of Earnings. Qualified Defined Benefits Three Months Ended March 31, U.S. Plan Non-U.S. Plans 2020 2019 2020 2019 Service cost $ 1,706 $ 1,754 $ 1,293 $ 1,545 Interest cost 4,068 4,756 825 1,241 Expected return on plan assets (7,869) (8,534) (1,677) (1,517) Amortization: Prior service cost (credit) 57 76 (119) (58) Recognized actuarial loss 1,884 — 742 816 Net periodic (income) expense $ (154) $ (1,948) $ 1,064 $ 2,027 |
Supplemental Employee Retirement Plans, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | Non-Qualified Supplemental Benefits Three Months Ended March 31, 2020 2019 Service cost $ 318 $ 486 Interest cost 441 668 Amortization: Prior service cost 424 703 Recognized actuarial gain (464) (570) Net periodic expense $ 719 $ 1,287 |
Post-Retirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | Post-Retirement Benefit Plans The Company also maintains post-retirement benefit plans, although these plans are closed to new entrants. The supplemental and post-retirement benefit plans are supported by the general assets of the Company. The following table sets forth the components of the Company’s net periodic expense relating to its post-retirement benefit plans: Three Months Ended March 31, 2020 2019 Service cost $ 5 $ 5 Interest cost 60 78 Amortization: Prior service cost 3 3 Recognized actuarial gain (4) (18) Net periodic expense $ 64 $ 68 |
Other Comprehensive Earnings (T
Other Comprehensive Earnings (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of other comprehensive income | The amounts recognized in other comprehensive (loss) earnings were as follows: Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation adjustments $ (88,415) $ (5,139) $ (93,554) $ 49,786 $ (747) $ 49,039 Pension and other post-retirement benefit plans 2,523 (568) 1,955 952 (205) 747 Changes in fair value of cash flow hedges (5,074) 1,121 (3,953) 2,993 (629) 2,364 Total other comprehensive (loss) earnings $ (90,966) $ (4,586) $ (95,552) $ 53,731 $ (1,581) $ 52,150 |
Schedule of comprehensive income (loss) | Total comprehensive earnings were as follows: Three Months Ended March 31, 2020 2019 Net earnings $ 176,279 $ 105,705 Other comprehensive (loss) earnings (95,552) 52,150 Comprehensive earnings $ 80,727 $ 157,855 |
Schedule of amounts reclassified from accumulated other comprehensive income (loss) to earnings | Amounts reclassified from accumulated other comprehensive loss to earnings during the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended March 31, 2020 2019 Foreign currency translation: Reclassification of foreign currency translation losses to earnings for assets held for sale $ — $ 25,339 Tax benefit — — Net of tax $ — $ 25,339 Pension and other postretirement benefit plans: Amortization of actuarial losses $ 2,158 $ 228 Amortization of prior service costs 365 724 Total before tax 2,523 952 Tax benefit (568) (205) Net of tax $ 1,955 $ 747 Cash flow hedges: Net losses (gains) reclassified into earnings $ 1,420 $ (291) Tax (benefit) provision (299) 61 Net of tax $ 1,121 $ (230) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Revenue and earnings from continuing operations by market segment | Segment financial information and a reconciliation of segment results to consolidated results was as follows: Three Months Ended March 31, 2020 2019 Revenue: Engineered Products $ 408,160 $ 418,851 Fueling Solutions 359,982 373,050 Imaging & Identification 256,765 268,354 Pumps & Process Solutions 319,536 330,219 Refrigeration & Food Equipment 311,913 334,643 Intra-segment eliminations (417) (360) Total consolidated revenue $ 1,655,939 $ 1,724,757 Net earnings: Segment earnings (EBIT): (1) Engineered Products $ 69,094 $ 67,119 Fueling Solutions 53,498 37,230 Imaging & Identification 51,482 55,955 Pumps & Process Solutions (2) 66,079 14,991 Refrigeration & Food Equipment (3) 23,529 24,807 Total segment earnings (EBIT) 263,682 200,102 Corporate expense / other (4) 24,097 30,866 Interest expense 27,268 31,808 Interest income (1,183) (890) Earnings before provision for income taxes 213,500 138,318 Provision for income taxes 37,221 32,613 Net earnings $ 176,279 $ 105,705 (1) Segment earnings (EBIT) includes non-operating income and expense directly attributable to the segments. Non-operating income and expense includes gain on sale of a business and other income, net. (2) The three months ended March 31, 2019 includes a $46,946 loss on assets held for sale for Finder. (3) The three months ende d March 31, 2020 i ncludes a $6,551 gain on the sale of AMS Chino. (4) 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, shared business services overhead costs, deal related expenses and various administrative expenses relating to the corporate headquarters. |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following table presents revenue disaggregated by geography based on the location of the Company's customer: Three Months Ended March 31, Revenue by geography 2020 2019 United States $ 956,640 $ 919,892 Europe 361,166 402,645 Asia 154,275 196,350 Other Americas 129,049 138,118 Other 54,809 67,752 Total $ 1,655,939 $ 1,724,757 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of information used in computing basic and diluted earnings per share | The following table sets forth a reconciliation of the information used in computing basic and diluted earnings per share: Three Months Ended March 31, 2020 2019 Net earnings $ 176,279 $ 105,705 Basic earnings per common share: Net earnings $ 1.22 $ 0.73 Weighted average shares outstanding 144,259,000 145,087,000 Diluted earnings per common share: Net earnings $ 1.21 $ 0.72 Weighted average shares outstanding 145,782,000 146,911,000 |
Reconciliation of share amounts used in computing earnings per share | The following table is a reconciliation of the share amounts used in computing earnings per share: Three Months Ended March 31, 2020 2019 Weighted average shares outstanding - Basic 144,259,000 145,087,000 Dilutive effect of assumed exercise of SARs and vesting of performance shares and RSUs 1,523,000 1,824,000 Weighted average shares outstanding - Diluted 145,782,000 146,911,000 |
Spin-off of Apergy Corporation
Spin-off of Apergy Corporation (Detail) € in Thousands | Mar. 31, 2020EUR (€) |
Note due 2026 [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Debt Instrument, Face Amount | € 600,000 |
Disaggregation of Revenue (Deta
Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,655,939 | $ 1,724,757 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 956,640 | 919,892 |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 361,166 | 402,645 |
Asia [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 154,275 | 196,350 |
Other Americas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 129,049 | 138,118 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 54,809 | 67,752 |
Engineered Products Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 408,160 | 418,851 |
Fueling Solutions Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 359,982 | 373,050 |
Refrigeration and Food Equipment Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 311,913 | 334,643 |
Intersegment Eliminations [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ (417) | $ (360) |
Remaining Performance Obligatio
Remaining Performance Obligation (Details) $ in Millions | Mar. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 156 |
Contract Balances (Details)
Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | |
Change in Contract with Customer, Asset and Liability [Abstract] | ||||
Revenue recognized that was included in the contract liability balance at the beginning of the period | $ (21,133) | $ (15,414) | ||
Contract with Customer, Asset and Liability [Abstract] | ||||
Contract assets balance | 13,841 | $ 14,894 | $ 9,330 | |
Contract liabilities - current | 61,508 | 44,001 | 36,461 | |
Contract liabilities - non-current | $ 10,363 | $ 9,121 | $ 9,382 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Business Acquisition [Line Items] | ||
Current Assets | $ 19,816,000 | |
Property, Plant, and Equipment | 1,580,000 | |
Goodwill - non deductible | 125,381,000 | |
Goodwill - tax deductible | 33,125,000 | |
Intangibles | 88,900,000 | |
Current Liabilities | 15,073,000 | |
Payments to Acquire Businesses, Net of Cash Acquired | 208,421,000 | |
Goodwill and intangible assets | 214,281,000 | |
Other assets and deferred charges | 12,183,000 | |
Revenue [Abstract] | ||
As reported | 1,655,939,000 | $ 1,724,757,000 |
Pro forma | 1,661,825,000 | 1,746,533,000 |
Net earnings [Abstract] | ||
As reported | 176,279,000 | 105,705,000 |
Pro forma | 180,433,000 | 106,188,000 |
Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Intangibles | 74,100,000 | |
Trademarks [Member] | ||
Business Acquisition [Line Items] | ||
Intangibles | $ 5,100,000 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |
Customer-Related Intangible Assets | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | |
Other Intangible Assets [Member] | ||
Business Acquisition [Line Items] | ||
Intangibles | $ 9,700,000 | |
Belanger [Member] | ||
Business Acquisition [Line Items] | ||
Goodwill - non deductible | 97,817 | |
Intangibles | 77,000,000 | |
Payments to Acquire Businesses, Net of Cash Acquired | $ 175,083 | |
Systech [Member] | ||
Business Acquisition [Line Items] | ||
Goodwill - non deductible | 92,256,000 | |
Intangibles | 76,100,000 | |
Payments to Acquire Businesses, Net of Cash Acquired | 162,942,000 | |
Soft-Pak [Member] | ||
Business Acquisition [Line Items] | ||
Goodwill - tax deductible | 33,125,000 | |
Intangibles | 12,800,000 | |
Payments to Acquire Businesses, Net of Cash Acquired | $ 45,479,000 | |
Minimum [Member] | Other Intangible Assets [Member] | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | |
Minimum [Member] | Belanger [Member] | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | |
Maximum [Member] | Other Intangible Assets [Member] | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | |
Maximum [Member] | Belanger [Member] | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years |
Disposed Operations (Details)
Disposed Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Impairment of Long-Lived Assets to be Disposed of | $ (21,607) | |
Loss on assets held for sale | $ 0 | (46,946) |
Foreign Currency Translation Gains (Losses) | 25,339 | |
Proceeds from sale of businesses | $ 16,850 | 2,245 |
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ 24,218 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory, Net [Abstract] | ||
Raw materials | $ 486,866 | $ 467,912 |
Work in progress | 172,173 | 162,670 |
Finished goods | 300,725 | 280,051 |
Subtotal | 959,764 | 910,633 |
Less reserves | (107,689) | (104,492) |
Total | $ 852,075 | $ 806,141 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Cost | $ 2,239,270 | $ 2,232,129 | |
Accumulated depreciation | (1,397,457) | (1,389,811) | |
Total | 841,813 | 842,318 | |
Depreciation expense | 34,555 | $ 32,188 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 54,580 | 56,583 | |
Buildings and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 522,155 | 527,192 | |
Machinery, equipment and other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 1,662,535 | $ 1,648,354 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Credit Loss [Abstract] | ||
Allowance for doubtful accounts receivable | $ 33,901,000 | $ 29,381,000 |
Cumulative Effect on Retained Earnings, before Tax | 2,706,000 | |
Provision for Other Credit Losses | 3,703,000 | |
Accounts Receivable, Credit Loss Expense (Reversal) | 811,000 | |
Accounts Receivable, Other, Including Dispositions and Foreign Currency | (1,078,000) | |
Cumulative Effect on Retained Earnings, Tax | 600,000 | |
Cumulative Effect on Retained Earnings, Net of Tax | $ 2,100,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Goodwill Balance | $ 3,860,817 | $ 3,783,347 |
Goodwill - non deductible | 125,381 | |
Goodwill, Written off Related to Sale of Business Unit | (2,841) | |
Foreign Currency Translation | (45,070) | |
Balance | 3,860,817 | |
Engineered Products Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill Balance | 665,250 | 636,571 |
Goodwill - non deductible | 33,125 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | |
Foreign Currency Translation | (4,446) | |
Balance | 665,250 | |
Fueling Solutions Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill Balance | 847,373 | 873,381 |
Goodwill - non deductible | 0 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | |
Foreign Currency Translation | (26,008) | |
Balance | 847,373 | |
Refrigeration and Food Equipment Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill Balance | 542,546 | 545,699 |
Goodwill - non deductible | 0 | |
Goodwill, Written off Related to Sale of Business Unit | (2,841) | |
Foreign Currency Translation | (312) | |
Balance | 542,546 | |
Imaging & Identification Segment | ||
Goodwill [Roll Forward] | ||
Goodwill Balance | 1,060,811 | 977,069 |
Goodwill - non deductible | 92,256 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | |
Foreign Currency Translation | (8,514) | |
Balance | 1,060,811 | |
Pumps & Process Solutions Segment | ||
Goodwill [Roll Forward] | ||
Goodwill Balance | 744,837 | $ 750,627 |
Goodwill - non deductible | 0 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | |
Foreign Currency Translation | (5,790) | |
Balance | $ 744,837 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 2,139,910 | $ 2,075,215 | |
Accumulated amortization | 1,140,331 | 1,116,854 | |
Finite-Lived Intangible Assets, Net | 999,579 | 958,361 | |
Intangible Assets, Gross (Excluding Goodwill) | 2,236,471 | 2,171,868 | |
Intangible assets, net | 1,096,140 | 1,055,014 | |
Amortization expense | 34,197 | $ 35,550 | |
Acquisition-related amortization expense | 33,817 | $ 35,155 | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated amortization | 0 | 0 | |
Customer Intangibles [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 1,467,966 | 1,410,636 | |
Accumulated amortization | 731,391 | 714,566 | |
Finite-Lived Intangible Assets, Net | 736,575 | 696,070 | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 220,805 | 218,064 | |
Accumulated amortization | 89,123 | 85,791 | |
Finite-Lived Intangible Assets, Net | 131,682 | 132,273 | |
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 158,612 | 159,376 | |
Accumulated amortization | 134,360 | 133,677 | |
Finite-Lived Intangible Assets, Net | 24,252 | 25,699 | |
Unpatented Technologies [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 162,763 | 154,505 | |
Accumulated amortization | 100,858 | 99,276 | |
Finite-Lived Intangible Assets, Net | 61,905 | 55,229 | |
Distributor Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 80,237 | 82,779 | |
Accumulated amortization | 44,889 | 44,202 | |
Finite-Lived Intangible Assets, Net | 35,348 | 38,577 | |
Drawings and Manuals [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 26,619 | 27,500 | |
Accumulated amortization | 22,228 | 22,403 | |
Finite-Lived Intangible Assets, Net | 4,391 | 5,097 | |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 22,908 | 22,355 | |
Accumulated amortization | 17,482 | 16,939 | |
Finite-Lived Intangible Assets, Net | $ 5,426 | $ 5,416 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Indefinite-lived Intangibles (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Trademarks [Member] | ||
Unamortized Intangible Assets [Abstract] | ||
Gross carrying amount | $ 96,561 | $ 96,653 |
Restructuring Activities (Detai
Restructuring Activities (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 7,341,000 | $ 2,936,000 |
Restructuring and Related Cost, Expected Cost | 6,000,000 | |
Restructuring Reserve [Roll Forward] | ||
Severance and other restructuring reserve, beginning balance | 16,390,000 | |
Provision | 7,341,000 | |
Payments | (8,559,000) | |
Other, including foreign currency translation | (2,192,000) | |
Severance and other restructuring reserve, ending balance | 12,980,000 | |
Engineered Products Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 358,000 | 79,000 |
Fueling Solutions Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,475,000 | 738,000 |
Refrigeration and Food Equipment Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 560,000 | 1,412,000 |
Corporate, Non-Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 846,000 | 35,000 |
Imaging & Identification Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 256,000 | 291,000 |
Pumps & Process Solutions Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 3,846,000 | 381,000 |
Employee Severance [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Severance and other restructuring reserve, beginning balance | 13,751,000 | |
Provision | 4,014,000 | |
Payments | (6,510,000) | |
Other, including foreign currency translation | 184,000 | |
Severance and other restructuring reserve, ending balance | 11,439,000 | |
Facility Closing [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Severance and other restructuring reserve, beginning balance | 2,639,000 | |
Provision | 3,327,000 | |
Payments | (2,049,000) | |
Other, including foreign currency translation | (2,376,000) | |
Severance and other restructuring reserve, ending balance | 1,541,000 | |
Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,542,000 | 1,179,000 |
Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 5,799,000 | $ 1,757,000 |
Borrowings (Details)
Borrowings (Details) € in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($) | Mar. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | |
Short-term borrowings [Abstract] | |||
Commercial Paper | $ 0 | $ 84,700 | |
Notes payable and current maturities of long-term debt | 500,000 | 84,700 | |
Long-term borrowings [Abstract] | |||
Net long-term debt | 2,963,018 | 2,985,716 | |
Unamortized debt discounts | 18,300 | 18,900 | |
Deferred debt issuance costs | 15,700 | 16,200 | |
Line of Credit Facility [Abstract] | |||
Unsecured revolving credit facility, maximum borrowing capacity | $ 1,000,000 | ||
Line of Credit Facility, Covenant Compliance | The Company was in compliance with all covenants in the Credit Agreement and other long-term debt covenants at March 31, 2020 and had an interest coverage ratio of consolidated EBITDA to consolidated net interest expense of 11.2 to 1. | ||
Letters of Credit Outstanding, Amount | $ 143,500 | ||
Current poriton of long-term debt and short-term borrowings | 500,000 | 0 | |
Note due 2025 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 396,210 | 396,042 | |
Debt Instrument, Face Amount | 400,000 | ||
Note due 2026 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 645,487 | 658,089 | |
Debt Instrument, Face Amount | € | € 600,000 | ||
Debentures due 2028 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 199,180 | 199,155 | |
Debt Instrument, Face Amount | 200,000 | ||
Debenture due 2035 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 296,122 | 296,060 | |
Debt Instrument, Face Amount | 300,000 | ||
Note due 2038 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 247,968 | 247,939 | |
Debt Instrument, Face Amount | 250,000 | ||
Note due 2041 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 344,222 | 344,153 | |
Debt Instrument, Face Amount | 350,000 | ||
Note due 2027 [Member] | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 537,463 | 548,008 | |
Debt Instrument, Face Amount | € | € 500,000 | ||
Notes due 2029 | |||
Long-term borrowings [Abstract] | |||
Long-term debt | 296,366 | $ 296,270 | |
Debt Instrument, Face Amount | $ 300,000 |
Financial Instruments (Details)
Financial Instruments (Details) € in Thousands, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | |
Derivatives, Fair Value [Line Items] | ||||
Gain (loss) on euro-denominated debt | $ 23,624 | $ 3,557 | ||
Tax (expense) benefit | (5,139) | (747) | ||
Net gain (loss) on net investment hedge, net of tax | 18,485 | $ 2,810 | ||
Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Notional Amount | 170,672 | $ 179,580 | ||
Not Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Notional Amount | 76,553 | 79,707 | ||
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value - Asset | 1,826 | 2,892 | ||
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Other Accrued Expenses [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value - Liability | $ 2,979 | $ 476 | ||
Note due 2026 [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Debt Instrument, Face Amount | € | € 600,000 | |||
Note due 2026 [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Debt Instrument, Face Amount | € | 600,000 | |||
Note due 2027 [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Debt Instrument, Face Amount | € | 500,000 | |||
Note due 2027 [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Debt Instrument, Face Amount | € | € 500,000 |
Financial Instruments - Balance
Financial Instruments - Balance Sheet Location (Details) - Fair Value, Measurements, Recurring [Member] - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets [Abstract] | ||
Foreign currency cash flow hedges - asset | $ 1,826 | $ 2,892 |
Liabilities [Abstract] | ||
Foreign currency cash flow hedges - liability | $ 2,979 | $ 476 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 2,963,018 | $ 2,985,716 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | 3,311,012 | 3,322,033 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign currency cash flow hedges - asset | 1,826 | 2,892 |
Foreign currency cash flow hedges - liability | $ (2,979) | $ (476) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Effective tax rate (in hundredths) | 17.40% | 23.60% |
Minimum [Member] | ||
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, lower bound | $ 0 | |
Maximum [Member] | ||
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, lower bound | $ 9,300 |
Equity Incentive Program (Detai
Equity Incentive Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock-based compensation expense [Abstract] | ||
Pre-tax stock-based compensation expense | $ 3,252 | $ 8,182 |
Tax benefit | (349) | (1,048) |
Total stock-based compensation expense, net of tax | $ 2,903 | $ 7,134 |
Stock Appreciation Rights (SARs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards issued during period (in shares) | 389,603 | |
Risk-free interest rate (in hundredths) | 1.44% | 2.51% |
Dividend yield (in hundredths) | 1.65% | 2.13% |
Expected life (in years) | 5 years 6 months | 5 years 7 months 6 days |
Volatility (in hundredths) | 22.76% | 22.35% |
Grant price (in dollars per share) | $ 91.20 | |
Fair value at date of grant (in dollars per share) | $ 22.54 | 17.55 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards issued during period (in shares) | 78,553 | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards issued during period (in shares) | 49,056 | |
Risk-free interest rate (in hundredths) | 1.40% | |
Dividend yield (in hundredths) | 1.65% | |
Expected life (in years) | 2 years 10 months 24 days | |
Volatility (in hundredths) | 23.30% | |
Grant price (in dollars per share) | $ 119.86 | |
Fair value at date of grant (in dollars per share) | $ 165.71 | $ 91.20 |
Performance share attainment | 209.31% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Accrual for environmental loss contingencies | $ 30,233 | $ 30,608 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Beginning balance | 49,116 | $ 50,073 | |
Provision for warranties | 13,360 | 13,955 | |
Settlements made | (15,526) | (14,993) | |
Other adjustments, including acquisitions and currency translation | (1,079) | (792) | |
Ending balance | $ 45,871 | $ 48,243 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net periodic benefit cost [Abstract] | ||
Total amount amortized out of accumulated other comprehensive income | $ 2,523 | $ 952 |
Defined contribution plan expense | 14,048 | 12,906 |
Post-Retirement Benefits [Member] | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 5 | 5 |
Interest cost | 60 | 78 |
Prior service cost (credit) | 3 | 3 |
Recognized actuarial loss | (4) | (18) |
Net periodic (income)/expense | 64 | 68 |
Qualified Plan [Member] | Defined benefit pension plans | United States | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 1,706 | 1,754 |
Interest cost | 4,068 | 4,756 |
Expected return on plan assets | (7,869) | (8,534) |
Prior service cost (credit) | 57 | 76 |
Recognized actuarial loss | 1,884 | 0 |
Net periodic (income)/expense | (154) | (1,948) |
Qualified Plan [Member] | Defined benefit pension plans | Foreign Pension Plans, Defined Benefit [Member] | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 1,293 | 1,545 |
Interest cost | 825 | 1,241 |
Expected return on plan assets | (1,677) | (1,517) |
Prior service cost (credit) | (119) | (58) |
Recognized actuarial loss | 742 | 816 |
Net periodic (income)/expense | 1,064 | 2,027 |
Nonqualified Plan [Member] | Supplemental Employee Retirement Plans, Defined Benefit [Member] | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 318 | 486 |
Interest cost | 441 | 668 |
Prior service cost (credit) | 424 | 703 |
Recognized actuarial loss | (464) | (570) |
Net periodic (income)/expense | $ 719 | $ 1,287 |
Other Comprehensive Earnings (D
Other Comprehensive Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Foreign currency translation adjustments [Abstract] | ||
Foreign currency translation adjustments, before tax | $ (88,415) | $ 49,786 |
Foreign currency translation adjustments, tax | (5,139) | (747) |
Total foreign currency translation adjustment | (93,554) | 49,039 |
Pension and other postretirement benefit plans [Abstract] | ||
Pension and other postretirement benefit plans, before tax | 2,523 | 952 |
Pension and other postretirement benefit plans, tax | (568) | (205) |
Total pension and other postretirement benefit plans | 1,955 | 747 |
Changes in fair value of cash flow hedges [Abstract] | ||
Changes in fair value of cash flow hedges, before tax | (5,074) | 2,993 |
Changes in fair value of cash flow hedges, tax | 1,121 | (629) |
Total cash flow hedges | (3,953) | 2,364 |
Total other comprehensive earnings [Abstract] | ||
Other comprehensive earnings (loss), before Tax | (90,966) | 53,731 |
Other comprehensive earnings (loss), tax | (4,586) | (1,581) |
Other comprehensive (loss) earnings | (95,552) | 52,150 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net earnings | 176,279 | 105,705 |
Other comprehensive earnings (loss) | (95,552) | 52,150 |
Comprehensive earnings | 80,727 | 157,855 |
Other Comprehensive Income Loss Reclassification Adjustment from AOCI Foreign Currency Translation Net of Tax [Abstract] | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | (25,339) | |
Tax benefit | 0 | 0 |
Net of tax | 0 | 25,339 |
Other Comprehensive Income Loss Reclassification Adjustment From AOCI Pension And Other Postretirement Benefit Plans Net Of Tax Abstract [Abstract] | ||
Amortization of actuarial losses | 2,158 | 228 |
Amortization of prior service costs | 365 | 724 |
Total before tax | 2,523 | 952 |
Tax (benefit) provision | (568) | (205) |
Net of tax | 1,955 | 747 |
Other Comprehensive Income Loss Reclassification Adjustment From AOCI Derivatives Net of Tax [Abstract] | ||
Net (gains) losses reclassified into earnings | 1,420 | (291) |
Tax expense (benefit) | (299) | 61 |
Net of tax | $ 1,121 | $ (230) |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)segments | Mar. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segments | 5 | |
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | $ 1,655,939 | $ 1,724,757 |
Interest Expense | 27,268 | 31,808 |
Interest Income | (1,183) | (890) |
Earnings before provision for income taxes | 213,500 | 138,318 |
Provision for income taxes | (37,221) | (32,613) |
Earnings from continuing operations | 176,279 | 105,705 |
Loss on assets held for sale | 0 | (46,946) |
United States | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | 956,640 | 919,892 |
Europe [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | 361,166 | 402,645 |
Asia [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | 154,275 | 196,350 |
Other Americas [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | 129,049 | 138,118 |
Other [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | 54,809 | 67,752 |
Engineered Products Segment [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | 408,160 | 418,851 |
Earnings before provision for income taxes | 69,094 | 67,119 |
Fueling Solutions Segment [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | 359,982 | 373,050 |
Earnings before provision for income taxes | 53,498 | 37,230 |
Imaging & Identification Segment | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | 256,765 | 268,354 |
Earnings before provision for income taxes | 51,482 | 55,955 |
Pumps & Process Solutions Segment | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | 319,536 | 330,219 |
Earnings before provision for income taxes | 66,079 | 14,991 |
Refrigeration and Food Equipment Segment [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | 311,913 | 334,643 |
Earnings before provision for income taxes | 23,529 | 24,807 |
Intersegment Eliminations [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | (417) | (360) |
Total segments [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Earnings before provision for income taxes | 263,682 | 200,102 |
Corporate expense / other [Member] | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Earnings before provision for income taxes | $ 24,097 | $ 30,866 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Repurchases [Line Items] | ||
Purchase of common stock | $ 52,916 | $ 0 |
February 2018 Authorization [Member] | ||
Share Repurchases [Line Items] | ||
Number of shares authorized to be repurchased | 20,000,000 | |
Share repurchases | 548,659 | |
Purchase of common stock | $ 52,916 | |
Treasury Stock Acquired, Average Cost Per Share | $ 96.45 | |
Remaining number of shares authorized to be repurchased | 7,811,385 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Earnings from continuing operations | $ 176,279 | $ 105,705 |
Net earnings | $ 176,279 | $ 105,705 |
Basic earnings (loss) per common share: | ||
Net earnings (in dollars per basic share) | $ 1.22 | $ 0.73 |
Weighted average shares outstanding - basic (in shares) | 144,259,000 | 145,087,000 |
Diluted earnings (loss) per common share: | ||
Net earnings (in dollars per diluted share) | $ 1.21 | $ 0.72 |
Weighted average shares outstanding - diluted (in shares) | 145,782,000 | 146,911,000 |
Reconciliation Of Share Amounts Used In Computing Earnings Per Share [Abstract] | ||
Weighted average shares outstanding - basic (in shares) | 144,259,000 | 145,087,000 |
Dilutive effect of assumed exercise of SAR's and vesting of performance shares (in shares) | 1,523,000 | 1,824,000 |
Weighted average shares outstanding - diluted (in shares) | 145,782,000 | 146,911,000 |
Antidilutive securities excluded from computation of earnings per share | 65,000 | 42,000 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Billions | Mar. 31, 2020USD ($) |
Subsequent Events [Abstract] | |
Unsecured revolving credit facility, maximum borrowing capacity | $ 1 |