Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 13, 2021 | |
Cover [Abstract] | ||
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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 | 143,960,933 | |
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 | 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 2,031,676 | $ 1,499,175 | $ 3,899,577 | $ 3,155,114 |
Cost of goods and services | 1,259,504 | 947,577 | 2,405,857 | 1,991,273 |
Gross profit | 772,172 | 551,598 | 1,493,720 | 1,163,841 |
Selling, General and Administrative Expense | 428,042 | 366,740 | 837,040 | 753,681 |
Operating earnings | 344,130 | 184,858 | 656,680 | 410,160 |
Interest Expense | 26,661 | 28,711 | 53,484 | 55,979 |
Interest Income | (942) | (728) | (1,622) | (1,911) |
Gain on sale of businesses | 0 | 781 | 0 | (5,770) |
Other income, net | (4,933) | (735) | (7,776) | (8,467) |
Income (Loss) Attributable to Parent, before Tax, Total | 323,344 | 156,829 | 612,594 | 370,329 |
Provision for income taxes | 58,836 | 32,063 | 115,317 | 69,284 |
Net earnings | $ 264,508 | $ 124,766 | $ 497,277 | $ 301,045 |
Net earnings per share: | ||||
Net earnings (in dollars per basic share) | $ 1.84 | $ 0.87 | $ 3.46 | $ 2.09 |
Net earnings (in dollars per diluted share) | $ 1.82 | $ 0.86 | $ 3.43 | $ 2.07 |
Weighted average shares outstanding: | ||||
Weighted average shares outstanding - basic | 143,941,000 | 143,955,000 | 143,854,000 | 144,107,000 |
Weighted average shares outstanding - diluted | 145,118,000 | 144,995,000 | 145,040,000 | 145,359,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 264,508 | $ 124,766 | $ 497,277 | $ 301,045 |
Foreign currency translation adjustments [Abstract] | ||||
Foreign currency translation (losses) gains | 21,559 | 44,569 | 8,588 | (48,985) |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | (4,269) | (8,028) | 6,223 | (2,889) |
Total foreign currency translation adjustment | 21,559 | 44,569 | 8,588 | (48,985) |
Pension and other postretirement benefit plans [Abstract] | ||||
Amortization of actuarial losses included in net periodic pension cost | 2,353 | 1,835 | 4,727 | 3,504 |
Amortization of prior service cost included in net periodic pension cost | 224 | 259 | 432 | 544 |
Pension and other postretirement benefit plans, tax | (774) | (421) | (1,548) | (989) |
Total pension and other postretirement benefit plans | 2,577 | 2,094 | 5,159 | 4,048 |
Changes in fair value of cash flow hedges [Abstract] | ||||
Unrealized net gains (losses) arising during period | (5) | 1,880 | 4,319 | (3,194) |
Net losses (gains) reclassified into earnings | (1,460) | (594) | (2,871) | 528 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | (447) | 365 | 424 | (757) |
Total cash flow hedges | (1,465) | 1,286 | 1,448 | (2,666) |
Other comprehensive (loss) earnings | 22,671 | 47,949 | 15,195 | (47,603) |
Comprehensive earnings | $ 287,179 | $ 172,715 | $ 512,472 | $ 253,442 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 601,359 | $ 513,075 |
Receivables, net of allowances | 1,329,051 | 1,137,223 |
Inventories | 977,831 | 835,804 |
Prepaid and other current assets | 151,291 | 133,085 |
Total current assets | 3,059,532 | 2,619,187 |
Property, plant and equipment, net | 895,551 | 897,326 |
Goodwill | 4,126,691 | 4,072,542 |
Intangible assets, net | 1,049,109 | 1,083,772 |
Other assets and deferred charges | 499,117 | 479,247 |
Total assets | 9,630,000 | 9,152,074 |
Current liabilities: | ||
Accounts payable | 1,006,557 | 853,942 |
Accrued compensation and employee benefits | 235,258 | 239,750 |
Deferred Revenue, Current | 189,317 | 184,845 |
Accrued insurance | 105,895 | 98,954 |
Other accrued expenses | 333,772 | 343,637 |
Federal and other income taxes | 30,612 | 17,670 |
Total current liabilities | 1,901,411 | 1,738,798 |
Long-term debt | 3,083,246 | 3,108,829 |
Deferred Income Taxes | 311,496 | 298,423 |
Noncurrent income tax payable | 49,937 | 49,937 |
Other liabilities | 564,606 | 570,314 |
Stockholders' Equity: | ||
Total stockholders' equity | 3,719,304 | 3,385,773 |
Total liabilities and stockholders' equity | $ 9,630,000 | $ 9,152,074 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||||
Allowance for doubtful accounts receivable | $ 40,534 | $ 40,474 | $ 38,825 | $ 29,381 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Earnings |
Balance at Dec. 31, 2019 | $ 3,032,660 | $ 258,552 | $ 869,719 | $ (6,090,842) | $ 8,211,257 | $ (216,026) |
Net earnings | 301,045 | 0 | 0 | 0 | 301,045 | 0 |
Dividends paid | (141,570) | 0 | 0 | 0 | (141,570) | 0 |
Common stock issued for the exercise of share-based awards | (11,217) | 216 | (11,433) | 0 | 0 | 0 |
Share-based compensation expense | 8,220 | 0 | 8,220 | 0 | 0 | 0 |
Common stock acquired, including accelerated share repurchase program | (52,916) | 0 | 0 | (52,916) | 0 | 0 |
Other comprehensive loss, net of tax | (47,603) | 0 | 0 | 0 | 0 | (47,603) |
Other, net | 3,020 | 0 | 3,020 | 0 | 0 | 0 |
Balance at Jun. 30, 2020 | 3,089,527 | 258,768 | 869,526 | (6,143,758) | 8,368,620 | (263,629) |
Balance at Mar. 31, 2020 | 2,980,681 | 258,745 | 862,747 | (6,143,758) | 8,314,525 | (311,578) |
Net earnings | 124,766 | 0 | 0 | 0 | 124,766 | 0 |
Dividends paid | (70,671) | 0 | 0 | 0 | (70,671) | 0 |
Common stock issued for the exercise of share-based awards | (1,198) | 23 | (1,221) | 0 | 0 | 0 |
Share-based compensation expense | 4,968 | 0 | 4,968 | 0 | 0 | 0 |
Other comprehensive loss, net of tax | 47,949 | 0 | 0 | 0 | 0 | 47,949 |
Other, net | 3,032 | 0 | 3,032 | 0 | 0 | 0 |
Balance at Jun. 30, 2020 | 3,089,527 | 258,768 | 869,526 | (6,143,758) | 8,368,620 | (263,629) |
Retained Earnings (Accumulated Deficit) | Accounting Standards Update 2016-13 | (2,112) | 0 | 0 | 0 | (2,112) | 0 |
Balance at Dec. 31, 2020 | 3,385,773 | 258,982 | 868,882 | (6,197,121) | 8,608,284 | (153,254) |
Net earnings | 497,277 | 0 | 0 | 0 | 497,277 | 0 |
Dividends paid | (142,698) | 0 | 0 | 0 | (142,698) | 0 |
Common stock issued for the exercise of share-based awards | (33,068) | 389 | (33,457) | 0 | 0 | 0 |
Share-based compensation expense | 18,393 | 0 | 18,393 | 0 | 0 | 0 |
Common stock acquired, including accelerated share repurchase program | (21,637) | 0 | 0 | (21,637) | 0 | 0 |
Other comprehensive loss, net of tax | 15,195 | 0 | 0 | 0 | 0 | 15,195 |
Other, net | 69 | 0 | 69 | 0 | 0 | 0 |
Balance at Jun. 30, 2021 | 3,719,304 | 259,371 | 853,887 | (6,218,758) | 8,962,863 | (138,059) |
Balance at Mar. 31, 2021 | 3,499,144 | 259,338 | 849,585 | (6,218,758) | 8,769,709 | (160,730) |
Net earnings | 264,508 | 0 | 0 | 0 | 264,508 | 0 |
Dividends paid | (71,354) | 0 | 0 | 0 | (71,354) | 0 |
Common stock issued for the exercise of share-based awards | (2,615) | 33 | (2,648) | 0 | 0 | 0 |
Share-based compensation expense | 6,872 | 0 | 6,872 | 0 | 0 | 0 |
Other comprehensive loss, net of tax | 22,671 | 0 | 0 | 0 | 0 | 22,671 |
Other, net | 78 | 0 | 78 | 0 | 0 | 0 |
Balance at Jun. 30, 2021 | $ 3,719,304 | $ 259,371 | $ 853,887 | $ (6,218,758) | $ 8,962,863 | $ (138,059) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends paid per common share (in dollars per share) | $ 0.495 | $ 0.49 | $ 0.99 | $ 0.98 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Activities | ||
Net earnings | $ 497,277 | $ 301,045 |
Adjustments to reconcile net earnings to cash from operating activities: | ||
Depreciation and amortization | 145,325 | 136,355 |
Share-based compensation expense | 18,393 | 8,220 |
Gain on sale of businesses | 0 | 5,770 |
Other, net | (9,493) | (9,021) |
Cash effect of changes in assets and liabilities (excluding effects of acquisitions, dispositions and foreign exchange): | ||
Accounts receivable, net | (192,192) | 73,317 |
Inventories | (144,903) | (80,883) |
Prepaid expenses and other assets | (23,133) | (12,975) |
Accounts payable | 149,588 | (93,609) |
Accrued compensation and employee benefits | (13,566) | (63,621) |
Accrued expenses and other liabilities | 14,289 | 77,336 |
Accrued and deferred taxes, net | (4,328) | 17,278 |
Net cash provided by operating activities | 437,257 | 347,672 |
Investing Activities | ||
Additions to property, plant and equipment | (73,231) | (79,171) |
Acquisitions, net of cash acquired | (81,187) | (238,839) |
Proceeds from sale of property, plant, and equipment | 6,088 | 2,886 |
Proceeds from sale of businesses | 0 | 16,850 |
Other | (2,873) | 0 |
Net Cash Provided by (Used in) Investing Activities | (151,203) | (298,274) |
Financing Activities | ||
Repurchase of common stock, including prepayment under an accelerated share repurchase program | (21,637) | (52,916) |
Change in commercial paper and notes payable | 0 | 420,300 |
Dividends paid to stockholders | (142,698) | (141,570) |
Payments to settle employee tax obligations on exercise of share-based awards | (33,068) | (11,217) |
Other | (2,785) | (1,101) |
Net cash used in by financing activities | (200,188) | 213,496 |
Effect of Exchange Rate on Cash and Cash Equivalents | 2,418 | (11,115) |
Net (decrease) increase in cash and cash equivalents | 88,284 | 251,779 |
Cash and cash equivalents at beginning of period | 513,075 | 397,253 |
Cash and cash equivalents at end of period | $ 601,359 | $ 649,032 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
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, 2020, included in the Company's Annual Report on Form 10-K filed with the SEC on February 12, 2021. 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 relates to the sale of equipment or services in which the Company transfers control of a good or service over time and the customer simultaneously receives and consumes the benefits provided by the Company's performance as the Company performs, or our performance creates or enhances an asset the customer controls as the asset is created or enhanced, or our performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for its performance to date plus a reasonable margin. Revenue from contracts with customers is disaggregated by segment and geographic location, as they best depict the nature and amount of the Company’s revenue. See Note 17 — Segment Information for revenue by segment and geographic location. At June 30, 2021, we estimated that $272 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 58% of our unsatisfied (or partially unsatisfied) performance obligations as revenue through 2022, with the remaining balance to be recognized in 2023 and thereafter. The following table provides information about contract assets and contract liabilities from contracts with customers: June 30, 2021 December 31, 2020 December 31, 2019 Contract assets $ 15,079 $ 15,020 $ 14,894 Contract liabilities - current 189,317 184,845 104,901 Contract liabilities - non-current 22,534 13,921 10,921 In the fourth quarter of 2020, the Company adjusted its prior year balance sheet classification and footnote disclosure related to certain upfront cash consideration received from customers that should have been classified as contract liabilities (included in deferred revenue or other liabilities) rather than customer deposits (included in accounts payable). The revenue recognized during the six months ended June 30, 2021 and 2020 that was included in contract liabilities at the beginning of the period, inclusive of adjustments, amounted to $139,891 and $63,778, respectively. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions 2021 Acquisitions During the six months ended June 30, 2021, the Company acquired four businesses in separate transactions for total consideration of $88,457, net of cash acquired and including contingent consideration. These businesses were acquired to complement and expand upon existing operations within the Imaging & Identification, Pumps & Process Solutions, and Fueling Solutions 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. The goodwill is non-deductible for U.S. income tax purposes for these acquisitions. On June 24, 2021, the Company acquired 100% of the voting stock of Blue Bite LLC ("Blue Bite"), a leading provider of consumer engagement and brand protection software solutions, for $29,035, net of cash acquired and including contingent consideration. The Blue Bite acquisition strengthens the Company's offering of product traceability and authentication solutions within the Imaging & Identification segment. In connection with this acquisition, the Company recorded goodwill of $19,705 and intangible assets of $13,250, primarily related to technology. On June 23, 2021, the Company acquired 100% of the voting stock of Quantex Arc Limited ("Quantex"), a leading provider of single-use, recyclable pumps, for $23,896, net of cash acquired and including contingent consideration. The Quantex acquisition enhances the offering of single-use pumps for biopharma and other hygienic applications within the Pumps & Process Solutions segment. In connection with this acquisition, the Company recorded goodwill of $15,596 and intangible assets of $11,034, primarily related to patented technology. On April 19, 2021, the Company acquired 100% of the voting stock of AvaLAN Wireless Systems, Incorporated ("AvaLAN"), a leading provider of secure wireless communications solutions for the convenience and fuel retail industry, for $34,003, net of cash acquired. The AvaLAN acquisition extends the Company's reach into the systems and software offering within the Fueling Solutions segment. In connection with this acquisition, the Company recorded goodwill of $26,495 and intangible assets of $14,630, primarily related to customer intangibles. One other immaterial acquisition was completed during the six months ended June 30, 2021 within the Pumps & Process Solutions segment. The following presents the preliminary allocation of purchase price to the assets acquired and liabilities assumed, based on their estimated fair values at their acquisition dates: Total Current assets, net of cash acquired $ 5,128 Property, plant and equipment 1,854 Goodwill 62,487 Intangible assets 38,914 Other assets and deferred charges 415 Current liabilities (11,604) Other liabilities (8,737) Net assets acquired $ 88,457 The amounts assigned to goodwill and major intangible asset classifications were as follows: Amount allocated Useful life Goodwill - non-deductible $ 62,487 na Customer intangibles 18,892 12 - 15 Unpatented technologies 9,710 7 - 8 Patents 6,006 9 Trademarks 4,306 15 $ 101,401 2020 Acquisitions During the six months ended June 30, 2020, the Company acquired three businesses in separate transactions for total consideration of $238,839, net of cash acquired. These businesses were acquired to complement and expand upon existing operations within the Imaging & Identification, Engineered Products and Pumps & Process Solutions 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 $33,159 is deductible for U.S. income tax purposes and goodwill in the amount of $112,178 is non-deductible for U.S. income tax purposes for these acquisitions. On April 30, 2020, the Company acquired 100% of the voting stock of em-tec GmbH ("Em-tec"), a leading designer and manufacturer of flow measurement devices that serve a wide array of medical and biopharmaceutical applications for $30,396, net of cash acquired. The Em-tec acquisition further expands the Company's reach into biopharma and other hygienic applications and enhances its portfolio of flow control technologies within the Pumps & Process Solutions segment. In connection with this acquisition, the Company recorded goodwill of $19,572 and intangible assets of $8,344, 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"), a leading specialized provider of integrated back office, route management and customer relationship management software solutions to the waste and recycling fleet industry for $45,500, 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 $33,159 and intangible assets of $12,800, primarily related to customer intangibles. 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 $162,943, 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 $92,606 and intangible assets of $76,100, primarily related to customer intangibles. |
Disposed Operations
Disposed Operations | 6 Months Ended |
Jun. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposed 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. 2021 There were no dispositions for the six months ended June 30, 2021. 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. The Company recognized a net consideration of $15,400, which included a working capital adjustment recognized in the second quarter and paid in the third quarter of 2020. This sale resulted in a pre-tax gain on sale of $5,770 included within the Condensed Consolidated Statements of Earnings and within the Refrigeration & Food Equipment Segment for the six months ended June 30, 2020. The sale did not represent a strategic shift that had a major effect on operations and financial results and, therefore, did not qualify for presentation as a discontinued operation. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory, Net [Abstract] | |
Inventory Disclosure | 5. Inventories, net June 30, 2021 December 31, 2020 Raw materials $ 569,178 $ 497,604 Work in progress 206,293 152,360 Finished goods 332,474 304,760 Subtotal 1,107,945 954,724 Less reserves (130,114) (118,920) Total $ 977,831 $ 835,804 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | 6. Property, Plant and Equipment, net June 30, 2021 December 31, 2020 Land $ 61,598 $ 60,287 Buildings and improvements 571,326 570,366 Machinery, equipment and other 1,797,637 1,772,772 Property, plant and equipment, gross 2,430,561 2,403,425 Accumulated depreciation (1,535,010) (1,506,099) Property, plant and equipment, net $ 895,551 $ 897,326 Depreciation expense totaled $36,045 and $33,365 for the three months ended June 30, 2021 and 2020, respectively. For the six months ended June 30, 2021 and 2020, depreciation expense was $74,239 and $67,920, respectively. |
Credit Losses
Credit Losses | 6 Months Ended |
Jun. 30, 2021 | |
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. 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 other historical and forward-looking information on the financial condition of customers. Balances are written off when determined to be uncollectible. 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. 2021 2020 Beginning Balance, December 31 of the Prior Year $ 40,474 $ 29,381 Adoption of ASU 2016-13, cumulative-effect adjustment to retained earnings — 2,706 Provision for expected credit losses, net of recoveries 2,209 8,545 Amounts written off charged against the allowance (2,460) (1,490) Other, including dispositions and foreign currency translation 311 (317) Ending balance, June 30 $ 40,534 $ 38,825 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
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, 2020 $ 682,985 $ 940,973 $ 1,117,589 $ 786,280 $ 544,715 $ 4,072,542 Acquisitions — 26,495 19,705 16,287 — 62,487 Purchase price adjustments — 1,084 (1,926) — — (842) Foreign currency translation (1,958) 5,022 (9,007) (1,190) (363) (7,496) Balance at June 30, 2021 $ 681,027 $ 973,574 $ 1,126,361 $ 801,377 $ 544,352 $ 4,126,691 During the six months ended June 30, 2021, the Company recognized additions of $62,487 to goodwill as a result of acquisitions as discussed in Note 3 — Acquisitions. During the six months ended June 30, 2021, the Company recorded purchase price adjustments that reduced goodwill by $842, principally related to working capital adjustments for 2020 acquisitions within the Fueling Solutions and Imaging & Identification segments. The Company’s definite-lived and indefinite-lived intangible assets by major asset class were as follows: June 30, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets: Customer intangibles $ 1,572,396 $ 880,801 $ 691,595 $ 1,559,771 $ 834,798 $ 724,973 Trademarks 237,022 111,620 125,402 233,205 103,907 129,298 Patents 168,644 143,022 25,622 163,299 141,182 22,117 Unpatented technologies 189,731 118,689 71,042 180,947 113,404 67,543 Distributor relationships 86,888 54,077 32,811 87,028 51,611 35,417 Drawings and manuals 28,581 26,862 1,719 29,198 26,193 3,005 Other 23,996 19,915 4,081 23,901 19,324 4,577 Total 2,307,258 1,354,986 952,272 2,277,349 1,290,419 986,930 Unamortized intangible assets: Trademarks 96,837 — 96,837 96,842 — 96,842 Total intangible assets, net $ 2,404,095 $ 1,354,986 $ 1,049,109 $ 2,374,191 $ 1,290,419 $ 1,083,772 |
Restructuring Activities
Restructuring Activities | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Engineered Products $ 4,339 $ 4,160 $ 8,330 $ 4,518 Fueling Solutions 1,415 911 1,464 2,386 Imaging & Identification 174 (522) 864 (266) Pumps & Process Solutions 904 4,706 887 8,552 Refrigeration & Food Equipment 2,283 2,213 3,344 2,773 Corporate 321 816 982 1,662 Total $ 9,436 $ 12,284 $ 15,871 $ 19,625 These amounts are classified in the Condensed Consolidated Statements of Earnings as follows: Cost of goods and services $ 4,839 $ 7,557 $ 8,746 $ 9,099 Selling, general and administrative expenses 4,597 4,727 7,125 10,526 Total $ 9,436 $ 12,284 $ 15,871 $ 19,625 The restructuring expenses of $9,436 and $15,871 incurred during the three and six months ended June 30, 2021 were primarily the result of restructuring pro grams initiated in 2020 and 2021 in response to demand conditions, asset charges related to a product line exit and broad-based operational efficiency initiatives focusing on footprint consolidation and IT centralization. Additional programs, beyond the scope of the announced programs, may be implemented during 2021 with related restructuring charges. The $9,436 of restructuring charges incurred during the second quarter of 2021 primarily included the following items: • The Engineered Products segment recorded $4,339 of restructuring charges related principally to asset charges related to a product line exit. • The Fueling Solutions segment recorded $1,415 of restructuring charges primarily due to headcount reductions. • The Imaging & Identification segment recorded restructuring charges of $174 principally related to asset charges of a production plant exit. • The Pumps & Process Solutions segment recorded $904 of restructuring charges primarily related to headcount reductions. • The Refrigeration & Food Equipment segment recorded $2,283 of restructuring expense primarily due to headcount reductions. • Corporate recorded $321 of restructuring charges primarily related to exit costs associated with IT centralization initiatives. The Company’s severance and exit accrual activities were as follows: Severance Exit Total Balance at December 31, 2020 $ 10,547 $ 4,366 $ 14,913 Restructuring charges 6,680 9,191 15,871 Payments (7,483) (3,625) (11,108) Other, including foreign currency translation (66) (6,718) (1) (6,784) Balance at June 30, 2021 $ 9,678 $ 3,214 $ 12,892 (1) Other activity in exit reserves primarily represents asset charges related to a product line exit. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | 10. Borrowings Borrowings consisted of the following: Carrying amount (1) Principal June 30, 2021 December 31, 2020 Long-term 3.15% 10-year notes due November 15, 2025 $ 400,000 $ 397,053 $ 396,716 1.25% 10-year notes due November 9, 2026 (euro-denominated) € 600,000 709,887 724,310 0.750% 8-year notes due November 4, 2027 (euro denominated) € 500,000 591,052 603,107 6.65% 30-year debentures due June 1, 2028 $ 200,000 199,305 199,255 2.950% 10-year notes due November 4, 2029 $ 300,000 296,839 296,650 5.375% 30-year debentures due October 15, 2035 $ 300,000 296,434 296,309 6.60% 30-year notes due March 15, 2038 $ 250,000 248,109 248,053 5.375% 30-year notes due March 1, 2041 $ 350,000 344,567 344,429 Total long-term debt $ 3,083,246 $ 3,108,829 (1) Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discounts were $16.4 million and $17.6 million as of June 30, 2021 and December 31, 2020, respectively. Total deferred debt issuance costs were $13.5 million and $14.4 million as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021, 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. At the Company's election, loans under the Credit Agreement will bear interest at a base rate plus an applicable margin. The Credit Agreement requires the Company to pay a facility fee and imposes various restrictions on the Company such as, among other things, a requirement to maintain a minimum interest coverage ratio of EBITDA to consolidated net interest expense of not less than 3.0 to 1. The Company uses the Credit Agreement principally as liquidity back-up for it s commercial paper program and for general corporate purposes. The Company was in compliance with all covenants in the Credit Agreement and other long-term debt covenants at June 30, 2021 and had an interest coverage ratio of consolidated EBITDA to consolidated net interest expense of 13.9 to 1. As of June 30, 2021, the Company had approximately $153.2 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020, the Company had contracts with total notional amounts of $184,212 and $173,674, 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 $90,842 and $73,755 as of June 30, 2021 and December 31, 2020, 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 June 30, 2021 and December 31, 2020 and the balance sheet lines in which they are recorded: Fair Value Asset (Liability) June 30, 2021 December 31, 2020 Balance Sheet Caption Foreign currency forward $ 2,191 $ 2,325 Prepaid and other current assets Foreign currency forward (549) (2,057) 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 settled. 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Loss) gain on euro-denominated debt $ (18,894) $ (36,904) $ 27,539 $ (13,280) Tax benefit (expense) 4,269 8,028 (6,223) 2,889 Net (loss) gain on net investment hedges, net of tax $ (14,625) $ (28,876) $ 21,316 $ (10,391) 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 June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Level 2 Level 2 Assets: Foreign currency cash flow hedges $ 2,191 $ 2,325 Liabilities: Foreign currency cash flow hedges 549 2,057 In addition to fair value disclosure requirements related to financial instruments carried at fair value, accounting standards require interim disclosures regarding the fair value of all of the Company’s financial instruments. The estimated fair value of long-term debt at June 30, 2021 and December 31, 2020 , w as $3,555,797 and $3,635,673, 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 June 30, 2021 and December 31, 2020 due to the short-term nature of these instruments. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The effective tax rates for the three months ended June 30, 2021 and 2020 were 18.2% and 20.4%, r espectively. The decrease in the effective tax rate for the three months ended June 30, 2021 relative to the prior comparable period was primarily driven by favorable audit settlements. The effective tax rates for the six months ended June 30, 2021 and 2020 were 18.8% and 18.7%, respectively. The increase in the effective tax rate for the six months ended June 30, 2021 relative to the prior year comparable period was primarily driven by an increase in earnings base. 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 $3.7 million. |
Equity Incentive Program
Equity Incentive Program | 6 Months Ended |
Jun. 30, 2021 | |
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 six months ended June 30, 2021, the Company issued stock-settled appreciation rights ("SARs") covering 412,531 shares, performance share awards of 50,371 and restricted stock units ("RSUs") of 83,001. 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 2021 2020 Risk-free interest rate 0.59 % 1.44 % Dividend yield 1.62 % 1.65 % Expected life (years) 5.5 5.5 Volatility 30.49 % 22.76 % Grant price $122.73 $119.86 Fair value per share at date of grant $29.08 $22.54 The performance share awards granted in 2021 and 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 three years. These awards were valued on the date of grant using the Monte Carlo simulation model (a binomial lattice-based valuation model) and are generally recognized ratably over the vesting period, and the fair value is not subject to change based on future market conditions. The assumptions used in determining the fair value of the performance shares granted in the respective periods were as follows: Performance Shares 2021 2020 Risk-free interest rate 0.19 % 1.40 % Dividend yield 1.62 % 1.65 % Expected life (years) 2.9 2.9 Volatility 31.90 % 23.30 % Grant price $122.73 $119.86 Fair value per share at date of grant $148.29 $165.71 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Pre-tax stock-based compensation expense $ 6,872 $ 4,968 $ 18,393 $ 8,220 Tax benefit (559) (619) (1,781) (968) Total stock-based compensation expense, net of tax $ 6,313 $ 4,349 $ 16,612 $ 7,252 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020, the Company had estimated liabilities totaling $28,921 and $30,431, 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 June 30, 2021 and December 31, 2020, 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 June 30, 2021 and 2020, were as follows: 2021 2020 Beginning Balance, December 31 of the Prior Year $ 51,088 $ 49,116 Provision for warranties 34,900 25,341 Settlements made (34,424) (28,104) Other adjustments, including acquisitions and currency translation (528) (455) Ending balance, June 30 $ 51,036 $ 45,898 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [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 expense (income) 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 June 30, Six Months Ended June 30, U.S. Plan Non-U.S. Plans U.S. Plan Non-U.S. Plans 2021 2020 2021 2020 2021 2020 2021 2020 Service cost $ 1,784 $ 1,706 $ 1,397 $ 1,295 $ 3,567 $ 3,412 $ 2,839 $ 2,588 Interest cost 3,401 4,068 695 796 6,803 8,136 1,363 1,621 Expected return on plan assets (7,245) (7,869) (1,820) (1,637) (14,490) (15,738) (3,619) (3,314) Amortization: Prior service cost (credit) 53 57 (162) (120) 106 114 (330) (239) Recognized actuarial loss 2,503 1,884 989 735 5,006 3,768 1,989 1,476 Net periodic expense (income) $ 496 $ (154) $ 1,099 $ 1,069 $ 992 $ (308) $ 2,242 $ 2,132 Non-Qualified Supplemental Benefits Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Service cost $ 390 $ 318 $ 781 $ 636 Interest cost 308 442 616 883 Amortization: Prior service cost 383 424 766 848 Recognized actuarial gain (418) (465) (836) (929) Net periodic expense $ 663 $ 719 $ 1,327 $ 1,438 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 related expense 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. The Company’s expense relating to defined contribution plans was $16,052 and $12,493 for the three months ended June 30, 2021 and 2020, respectively, and $31,113 and $26,541 for the six months ended June 30, 2021 and 2020, respectively. |
Other Comprehensive Earnings
Other Comprehensive Earnings | 6 Months Ended |
Jun. 30, 2021 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive Earnings | 16. Other Comprehensive Earnings Amounts reclassified from accumulated other comprehensive loss to earnings during the three and six months ended June 30, 2021 and 2020 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Pension plans: Amortization of actuarial losses $ 3,074 $ 2,150 $ 6,159 $ 4,307 Amortization of prior service costs 277 365 548 730 Total before tax 3,351 2,515 6,707 5,037 Tax benefit (774) (421) (1,548) (989) Net of tax $ 2,577 $ 2,094 $ 5,159 $ 4,048 Cash flow hedges: Net (gains) losses reclassified into earnings $ (1,877) $ (752) $ (3,710) $ 668 Tax provision (benefit) 417 158 839 (140) Net of tax $ (1,460) $ (594) $ (2,871) $ 528 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 industrial pumps, fluid handling components, plastics and polymer processing equipment, single use pumps, flow meters and connectors for biopharma and other hygienic applications, 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenue: Engineered Products $ 442,091 $ 342,380 $ 870,218 $ 750,540 Fueling Solutions 437,042 326,495 826,720 686,477 Imaging & Identification 294,076 227,977 578,404 484,742 Pumps & Process Solutions 428,701 309,095 823,078 628,631 Refrigeration & Food Equipment 430,506 293,527 802,583 605,440 Intra-segment eliminations (740) (299) (1,426) (716) Total consolidated revenue $ 2,031,676 $ 1,499,175 $ 3,899,577 $ 3,155,114 Net earnings: Segment earnings (EBIT): (1) Engineered Products $ 62,720 $ 47,702 $ 131,499 $ 116,796 Fueling Solutions 78,755 47,214 145,235 100,712 Imaging & Identification 60,747 38,046 117,739 89,528 Pumps & Process Solutions 138,632 67,702 262,277 133,781 Refrigeration & Food Equipment (2) 48,971 11,459 87,088 34,988 Total segment earnings (EBIT) 389,825 212,123 743,838 475,805 Corporate expense / other (3) 40,762 27,311 79,382 51,408 Interest expense 26,661 28,711 53,484 55,979 Interest income (942) (728) (1,622) (1,911) Earnings before provision for income taxes 323,344 156,829 612,594 370,329 Provision for income taxes 58,836 32,063 115,317 69,284 Net earnings $ 264,508 $ 124,766 $ 497,277 $ 301,045 (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 and six months ended June 30, 2020 include a $781 expense and a $5,770 gain on the sale of AMS Chino, respectively. The three and six months ended June 30, 2020 also include a $3,640 write-off of assets. (3) 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 June 30, Six Months Ended June 30, Revenue by geography 2021 2020 2021 2020 United States $ 1,091,015 $ 852,999 $ 2,127,029 $ 1,809,639 Europe 459,074 320,076 904,369 681,242 Asia 236,008 164,009 428,115 318,284 Other Americas 171,891 112,995 302,068 242,044 Other 73,688 49,096 137,996 103,905 Total $ 2,031,676 $ 1,499,175 $ 3,899,577 $ 3,155,114 |
Share Repurchases
Share Repurchases | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Share repurchases | 18. Share Repurchases In November 2020, the Company's Board of Directors approved a new standing share repurchase authorization, whereby the Company may repurchase up to 20 million shares beginning on January 1, 2021 through December 31, 2023. This share repurchase authorization replaced the February 2018 share repurchase authorization. In the first quarter of 2021 , the Company repurchased 182,951 shares of common stock at a total cost of $21,637 , or $118.27 per share. There were no repurchases during the three months ended June 30, 2021. In the first quarter of 2020 , the Company repurchased 548,659 shares of common stock at a total cost of $52,916, or $96.45. There were no repurchases during the three months ended June 30, 2020. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net earnings $ 264,508 $ 124,766 $ 497,277 $ 301,045 Basic earnings per common share: Net earnings $ 1.84 $ 0.87 $ 3.46 $ 2.09 Weighted average shares outstanding 143,941,000 143,955,000 143,854,000 144,107,000 Diluted earnings per common share: Net earnings $ 1.82 $ 0.86 $ 3.43 $ 2.07 Weighted average shares outstanding 145,118,000 144,995,000 145,040,000 145,359,000 The following table is a reconciliation of the share amounts used in computing earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Weighted average shares outstanding - Basic 143,941,000 143,955,000 143,854,000 144,107,000 Dilutive effect of assumed exercise of SARs and vesting of performance shares and RSUs 1,177,000 1,040,000 1,186,000 1,252,000 Weighted average shares outstanding - Diluted 145,118,000 144,995,000 145,040,000 145,359,000 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. |
Recent Accounting Standards
Recent Accounting Standards | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Standards | 20. Recent Accounting Pronouncements Recently Issued Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The purpose of this update is to provide optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are elective and are effective upon issuance for all entities. The Company is evaluating the impact of this ASU and does not expect this update to have a material impact on the Company's Consolidated Financial Statements. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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: June 30, 2021 December 31, 2020 December 31, 2019 Contract assets $ 15,079 $ 15,020 $ 14,894 Contract liabilities - current 189,317 184,845 104,901 Contract liabilities - non-current 22,534 13,921 10,921 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 their acquisition dates: Total Current assets, net of cash acquired $ 5,128 Property, plant and equipment 1,854 Goodwill 62,487 Intangible assets 38,914 Other assets and deferred charges 415 Current liabilities (11,604) Other liabilities (8,737) Net assets acquired $ 88,457 |
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 Goodwill - non-deductible $ 62,487 na Customer intangibles 18,892 12 - 15 Unpatented technologies 9,710 7 - 8 Patents 6,006 9 Trademarks 4,306 15 $ 101,401 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory, Net [Abstract] | |
Components of Inventory | June 30, 2021 December 31, 2020 Raw materials $ 569,178 $ 497,604 Work in progress 206,293 152,360 Finished goods 332,474 304,760 Subtotal 1,107,945 954,724 Less reserves (130,114) (118,920) Total $ 977,831 $ 835,804 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment, net | June 30, 2021 December 31, 2020 Land $ 61,598 $ 60,287 Buildings and improvements 571,326 570,366 Machinery, equipment and other 1,797,637 1,772,772 Property, plant and equipment, gross 2,430,561 2,403,425 Accumulated depreciation (1,535,010) (1,506,099) Property, plant and equipment, net $ 895,551 $ 897,326 |
Credit Losses (Tables)
Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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. 2021 2020 Beginning Balance, December 31 of the Prior Year $ 40,474 $ 29,381 Adoption of ASU 2016-13, cumulative-effect adjustment to retained earnings — 2,706 Provision for expected credit losses, net of recoveries 2,209 8,545 Amounts written off charged against the allowance (2,460) (1,490) Other, including dispositions and foreign currency translation 311 (317) Ending balance, June 30 $ 40,534 $ 38,825 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2020 $ 682,985 $ 940,973 $ 1,117,589 $ 786,280 $ 544,715 $ 4,072,542 Acquisitions — 26,495 19,705 16,287 — 62,487 Purchase price adjustments — 1,084 (1,926) — — (842) Foreign currency translation (1,958) 5,022 (9,007) (1,190) (363) (7,496) Balance at June 30, 2021 $ 681,027 $ 973,574 $ 1,126,361 $ 801,377 $ 544,352 $ 4,126,691 |
Schedule of Intangible Assets | The Company’s definite-lived and indefinite-lived intangible assets by major asset class were as follows: June 30, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets: Customer intangibles $ 1,572,396 $ 880,801 $ 691,595 $ 1,559,771 $ 834,798 $ 724,973 Trademarks 237,022 111,620 125,402 233,205 103,907 129,298 Patents 168,644 143,022 25,622 163,299 141,182 22,117 Unpatented technologies 189,731 118,689 71,042 180,947 113,404 67,543 Distributor relationships 86,888 54,077 32,811 87,028 51,611 35,417 Drawings and manuals 28,581 26,862 1,719 29,198 26,193 3,005 Other 23,996 19,915 4,081 23,901 19,324 4,577 Total 2,307,258 1,354,986 952,272 2,277,349 1,290,419 986,930 Unamortized intangible assets: Trademarks 96,837 — 96,837 96,842 — 96,842 Total intangible assets, net $ 2,404,095 $ 1,354,986 $ 1,049,109 $ 2,374,191 $ 1,290,419 $ 1,083,772 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The Company's restructuring charges by segment were as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Engineered Products $ 4,339 $ 4,160 $ 8,330 $ 4,518 Fueling Solutions 1,415 911 1,464 2,386 Imaging & Identification 174 (522) 864 (266) Pumps & Process Solutions 904 4,706 887 8,552 Refrigeration & Food Equipment 2,283 2,213 3,344 2,773 Corporate 321 816 982 1,662 Total $ 9,436 $ 12,284 $ 15,871 $ 19,625 These amounts are classified in the Condensed Consolidated Statements of Earnings as follows: Cost of goods and services $ 4,839 $ 7,557 $ 8,746 $ 9,099 Selling, general and administrative expenses 4,597 4,727 7,125 10,526 Total $ 9,436 $ 12,284 $ 15,871 $ 19,625 |
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, 2020 $ 10,547 $ 4,366 $ 14,913 Restructuring charges 6,680 9,191 15,871 Payments (7,483) (3,625) (11,108) Other, including foreign currency translation (66) (6,718) (1) (6,784) Balance at June 30, 2021 $ 9,678 $ 3,214 $ 12,892 (1) Other activity in exit reserves primarily represents asset charges related to a product line exit. |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Carrying amount (1) Principal June 30, 2021 December 31, 2020 Long-term 3.15% 10-year notes due November 15, 2025 $ 400,000 $ 397,053 $ 396,716 1.25% 10-year notes due November 9, 2026 (euro-denominated) € 600,000 709,887 724,310 0.750% 8-year notes due November 4, 2027 (euro denominated) € 500,000 591,052 603,107 6.65% 30-year debentures due June 1, 2028 $ 200,000 199,305 199,255 2.950% 10-year notes due November 4, 2029 $ 300,000 296,839 296,650 5.375% 30-year debentures due October 15, 2035 $ 300,000 296,434 296,309 6.60% 30-year notes due March 15, 2038 $ 250,000 248,109 248,053 5.375% 30-year notes due March 1, 2041 $ 350,000 344,567 344,429 Total long-term debt $ 3,083,246 $ 3,108,829 (1) Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discounts were $16.4 million and $17.6 million as of June 30, 2021 and December 31, 2020, respectively. Total deferred debt issuance costs were $13.5 million and $14.4 million as of June 30, 2021 and December 31, 2020, respectively. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020 and the balance sheet lines in which they are recorded: Fair Value Asset (Liability) June 30, 2021 December 31, 2020 Balance Sheet Caption Foreign currency forward $ 2,191 $ 2,325 Prepaid and other current assets Foreign currency forward (549) (2,057) 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Loss) gain on euro-denominated debt $ (18,894) $ (36,904) $ 27,539 $ (13,280) Tax benefit (expense) 4,269 8,028 (6,223) 2,889 Net (loss) gain on net investment hedges, net of tax $ (14,625) $ (28,876) $ 21,316 $ (10,391) |
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 June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Level 2 Level 2 Assets: Foreign currency cash flow hedges $ 2,191 $ 2,325 Liabilities: Foreign currency cash flow hedges 549 2,057 |
Equity Incentive Program (Table
Equity Incentive Program (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Pre-tax stock-based compensation expense $ 6,872 $ 4,968 $ 18,393 $ 8,220 Tax benefit (559) (619) (1,781) (968) Total stock-based compensation expense, net of tax $ 6,313 $ 4,349 $ 16,612 $ 7,252 |
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 2021 2020 Risk-free interest rate 0.59 % 1.44 % Dividend yield 1.62 % 1.65 % Expected life (years) 5.5 5.5 Volatility 30.49 % 22.76 % Grant price $122.73 $119.86 Fair value per share at date of grant $29.08 $22.54 |
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 the respective periods were as follows: Performance Shares 2021 2020 Risk-free interest rate 0.19 % 1.40 % Dividend yield 1.62 % 1.65 % Expected life (years) 2.9 2.9 Volatility 31.90 % 23.30 % Grant price $122.73 $119.86 Fair value per share at date of grant $148.29 $165.71 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and 2020, were as follows: 2021 2020 Beginning Balance, December 31 of the Prior Year $ 51,088 $ 49,116 Provision for warranties 34,900 25,341 Settlements made (34,424) (28,104) Other adjustments, including acquisitions and currency translation (528) (455) Ending balance, June 30 $ 51,036 $ 45,898 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 expense (income) 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 June 30, Six Months Ended June 30, U.S. Plan Non-U.S. Plans U.S. Plan Non-U.S. Plans 2021 2020 2021 2020 2021 2020 2021 2020 Service cost $ 1,784 $ 1,706 $ 1,397 $ 1,295 $ 3,567 $ 3,412 $ 2,839 $ 2,588 Interest cost 3,401 4,068 695 796 6,803 8,136 1,363 1,621 Expected return on plan assets (7,245) (7,869) (1,820) (1,637) (14,490) (15,738) (3,619) (3,314) Amortization: Prior service cost (credit) 53 57 (162) (120) 106 114 (330) (239) Recognized actuarial loss 2,503 1,884 989 735 5,006 3,768 1,989 1,476 Net periodic expense (income) $ 496 $ (154) $ 1,099 $ 1,069 $ 992 $ (308) $ 2,242 $ 2,132 |
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Service cost $ 390 $ 318 $ 781 $ 636 Interest cost 308 442 616 883 Amortization: Prior service cost 383 424 766 848 Recognized actuarial gain (418) (465) (836) (929) Net periodic expense $ 663 $ 719 $ 1,327 $ 1,438 |
Other Comprehensive Earnings (T
Other Comprehensive Earnings (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of amounts reclassified from accumulated other comprehensive income (loss) to earnings | Amounts reclassified from accumulated other comprehensive loss to earnings during the three and six months ended June 30, 2021 and 2020 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Pension plans: Amortization of actuarial losses $ 3,074 $ 2,150 $ 6,159 $ 4,307 Amortization of prior service costs 277 365 548 730 Total before tax 3,351 2,515 6,707 5,037 Tax benefit (774) (421) (1,548) (989) Net of tax $ 2,577 $ 2,094 $ 5,159 $ 4,048 Cash flow hedges: Net (gains) losses reclassified into earnings $ (1,877) $ (752) $ (3,710) $ 668 Tax provision (benefit) 417 158 839 (140) Net of tax $ (1,460) $ (594) $ (2,871) $ 528 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenue: Engineered Products $ 442,091 $ 342,380 $ 870,218 $ 750,540 Fueling Solutions 437,042 326,495 826,720 686,477 Imaging & Identification 294,076 227,977 578,404 484,742 Pumps & Process Solutions 428,701 309,095 823,078 628,631 Refrigeration & Food Equipment 430,506 293,527 802,583 605,440 Intra-segment eliminations (740) (299) (1,426) (716) Total consolidated revenue $ 2,031,676 $ 1,499,175 $ 3,899,577 $ 3,155,114 Net earnings: Segment earnings (EBIT): (1) Engineered Products $ 62,720 $ 47,702 $ 131,499 $ 116,796 Fueling Solutions 78,755 47,214 145,235 100,712 Imaging & Identification 60,747 38,046 117,739 89,528 Pumps & Process Solutions 138,632 67,702 262,277 133,781 Refrigeration & Food Equipment (2) 48,971 11,459 87,088 34,988 Total segment earnings (EBIT) 389,825 212,123 743,838 475,805 Corporate expense / other (3) 40,762 27,311 79,382 51,408 Interest expense 26,661 28,711 53,484 55,979 Interest income (942) (728) (1,622) (1,911) Earnings before provision for income taxes 323,344 156,829 612,594 370,329 Provision for income taxes 58,836 32,063 115,317 69,284 Net earnings $ 264,508 $ 124,766 $ 497,277 $ 301,045 (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 and six months ended June 30, 2020 include a $781 expense and a $5,770 gain on the sale of AMS Chino, respectively. The three and six months ended June 30, 2020 also include a $3,640 write-off of assets. (3) 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 June 30, Six Months Ended June 30, Revenue by geography 2021 2020 2021 2020 United States $ 1,091,015 $ 852,999 $ 2,127,029 $ 1,809,639 Europe 459,074 320,076 904,369 681,242 Asia 236,008 164,009 428,115 318,284 Other Americas 171,891 112,995 302,068 242,044 Other 73,688 49,096 137,996 103,905 Total $ 2,031,676 $ 1,499,175 $ 3,899,577 $ 3,155,114 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net earnings $ 264,508 $ 124,766 $ 497,277 $ 301,045 Basic earnings per common share: Net earnings $ 1.84 $ 0.87 $ 3.46 $ 2.09 Weighted average shares outstanding 143,941,000 143,955,000 143,854,000 144,107,000 Diluted earnings per common share: Net earnings $ 1.82 $ 0.86 $ 3.43 $ 2.07 Weighted average shares outstanding 145,118,000 144,995,000 145,040,000 145,359,000 |
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Weighted average shares outstanding - Basic 143,941,000 143,955,000 143,854,000 144,107,000 Dilutive effect of assumed exercise of SARs and vesting of performance shares and RSUs 1,177,000 1,040,000 1,186,000 1,252,000 Weighted average shares outstanding - Diluted 145,118,000 144,995,000 145,040,000 145,359,000 |
Performance Obligations (Detail
Performance Obligations (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer Performance Obligations [Abstract] | |
Revenue Recognized Point-in-time, Percent | 95.00% |
Revenue Recognized Over-time, Percent | 5.00% |
Unsatisfied Performance Obligations Expected to Recognize as Revenue, Percent | 58.00% |
Remaining Performance Obligatio
Remaining Performance Obligation (Details) $ in Millions | Jun. 30, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 272 |
Contract Balances (Details)
Contract Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | ||||
Revenue recognized that was included in the contract liability balance at the beginning of the period | $ (139,891) | $ (63,778) | ||
Contract assets balance | 15,079 | $ 15,020 | $ 14,894 | |
Contract liabilities - current | 189,317 | 184,845 | 104,901 | |
Contract liabilities - non-current | $ 22,534 | $ 13,921 | $ 10,921 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 88,457,000 | $ 238,839 |
Current Assets | 5,128,000 | |
Property, Plant, and Equipment | 1,854,000 | |
Goodwill - tax deductible | 33,159,000 | |
Goodwill Acquired | 62,487,000 | |
Intangibles | 38,914,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets | 415,000 | |
Current Liabilities | 11,604,000 | |
Goodwill and intangible assets | 101,401,000 | |
Other assets and deferred charges | 8,737,000 | |
Goodwill Acquired During Period, Non-deductible for Income Tax | 62,487,000 | 112,178,000 |
Patents [Member] | ||
Business Acquisition [Line Items] | ||
Intangibles | $ 6,006,000 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | |
Trademarks [Member] | ||
Business Acquisition [Line Items] | ||
Intangibles | $ 4,306,000 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |
Customer-Related Intangible Assets | ||
Business Acquisition [Line Items] | ||
Intangibles | $ 18,892,000 | |
Unpatented Technologies [Member] | ||
Business Acquisition [Line Items] | ||
Intangibles | 9,710,000 | |
Systech [Member] | ||
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Net of Cash Acquired | 162,943,000 | |
Goodwill Acquired | 92,606,000 | |
Intangibles | 76,100,000 | |
Soft-Pak [Member] | ||
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Net of Cash Acquired | 45,500,000 | |
Goodwill - tax deductible | 33,159,000 | |
Intangibles | 12,800,000 | |
Em-tec [Member] | ||
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Net of Cash Acquired | 30,396,000 | |
Goodwill - tax deductible | 19,572,000 | |
Intangibles | $ 8,344,000 | |
Blue Bite | ||
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Net of Cash Acquired | 29,035,000 | |
Goodwill Acquired | 19,705,000 | |
Intangibles | 13,250,000 | |
Quantex | ||
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Net of Cash Acquired | 23,896,000 | |
Goodwill Acquired | 15,596,000 | |
Intangibles | 11,034,000 | |
AvaLAN | ||
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Net of Cash Acquired | 34,003,000 | |
Goodwill Acquired | 26,495,000 | |
Intangibles | $ 14,630,000 | |
Minimum [Member] | Customer-Related Intangible Assets | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | |
Minimum [Member] | Unpatented Technologies [Member] | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | |
Maximum [Member] | Customer-Related Intangible Assets | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |
Maximum [Member] | Unpatented Technologies [Member] | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years |
Disposed Operations (Details)
Disposed Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Gain on sale of businesses | $ 0 | $ 781 | $ 0 | $ (5,770) |
Proceeds from sale of businesses | $ 15,400 | $ 0 | $ 16,850 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory, Net [Abstract] | ||
Raw materials | $ 569,178 | $ 497,604 |
Work in progress | 206,293 | 152,360 |
Finished goods | 332,474 | 304,760 |
Subtotal | 1,107,945 | 954,724 |
Less reserves | (130,114) | (118,920) |
Total | $ 977,831 | $ 835,804 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||||
Cost | $ 2,430,561 | $ 2,430,561 | $ 2,403,425 | ||
Accumulated depreciation | (1,535,010) | (1,535,010) | (1,506,099) | ||
Total | 895,551 | 895,551 | 897,326 | ||
Depreciation expense | 36,045 | $ 33,365 | 74,239 | $ 67,920 | |
Land [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Cost | 61,598 | 61,598 | 60,287 | ||
Buildings and improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Cost | 571,326 | 571,326 | 570,366 | ||
Machinery, equipment and other [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Cost | $ 1,797,637 | $ 1,797,637 | $ 1,772,772 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Allowance for doubtful accounts receivable | $ 40,534 | $ 38,825 | $ 40,474 | $ 29,381 | |
Cumulative Effect on Retained Earnings, before Tax | 0 | 2,706 | |||
Provision for Other Credit Losses | 2,209 | 8,545 | |||
Accounts Receivable, Credit Loss Expense (Reversal) | (2,460) | (1,490) | |||
Accounts Receivable, Other, Including Dispositions and Foreign Currency | 311 | (317) | |||
Accounting Standards Update 2016-13 | |||||
Retained Earnings (Accumulated Deficit) | $ (2,112) | $ 2,100 | |||
Retained Earnings Effect, Tax | $ 600 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill Balance | $ 4,126,691 | $ 4,072,542 |
Goodwill Acquired | 62,487 | |
Purchase Price Adjustments | (842) | |
Foreign Currency Translation | (7,496) | |
Balance | 4,126,691 | |
Engineered Products Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill Balance | 681,027 | 682,985 |
Goodwill Acquired | 0 | |
Purchase Price Adjustments | 0 | |
Foreign Currency Translation | (1,958) | |
Balance | 681,027 | |
Fueling Solutions Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill Balance | 973,574 | 940,973 |
Goodwill Acquired | 26,495 | |
Purchase Price Adjustments | 1,084 | |
Foreign Currency Translation | 5,022 | |
Balance | 973,574 | |
Imaging & Identification Segment | ||
Goodwill [Roll Forward] | ||
Goodwill Balance | 1,126,361 | 1,117,589 |
Goodwill Acquired | 19,705 | |
Purchase Price Adjustments | (1,926) | |
Foreign Currency Translation | (9,007) | |
Balance | 1,126,361 | |
Pumps & Process Solutions Segment | ||
Goodwill [Roll Forward] | ||
Goodwill Balance | 801,377 | 786,280 |
Goodwill Acquired | 16,287 | |
Purchase Price Adjustments | 0 | |
Foreign Currency Translation | (1,190) | |
Balance | 801,377 | |
Refrigeration and Food Equipment Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill Balance | 544,352 | $ 544,715 |
Goodwill Acquired | 0 | |
Purchase Price Adjustments | 0 | |
Foreign Currency Translation | (363) | |
Balance | $ 544,352 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | $ 2,307,258 | $ 2,307,258 | $ 2,277,349 | ||
Accumulated amortization | 1,354,986 | 1,354,986 | 1,290,419 | ||
Finite-Lived Intangible Assets, Net | 952,272 | 952,272 | 986,930 | ||
Intangible Assets, Gross (Excluding Goodwill) | 2,404,095 | 2,404,095 | 2,374,191 | ||
Intangible assets, net | 1,049,109 | 1,049,109 | 1,083,772 | ||
Amortization expense | 35,474 | $ 34,238 | 71,086 | $ 68,435 | |
Acquisition-related amortization expense | 35,048 | $ 33,829 | 70,221 | $ 67,646 | |
Trademarks [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Accumulated amortization | 0 | 0 | 0 | ||
Customer Intangibles [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 1,572,396 | 1,572,396 | 1,559,771 | ||
Accumulated amortization | 880,801 | 880,801 | 834,798 | ||
Finite-Lived Intangible Assets, Net | 691,595 | 691,595 | 724,973 | ||
Trademarks [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 237,022 | 237,022 | 233,205 | ||
Accumulated amortization | 111,620 | 111,620 | 103,907 | ||
Finite-Lived Intangible Assets, Net | 125,402 | 125,402 | 129,298 | ||
Patents [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 168,644 | 168,644 | 163,299 | ||
Accumulated amortization | 143,022 | 143,022 | 141,182 | ||
Finite-Lived Intangible Assets, Net | 25,622 | 25,622 | 22,117 | ||
Unpatented Technologies [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 189,731 | 189,731 | 180,947 | ||
Accumulated amortization | 118,689 | 118,689 | 113,404 | ||
Finite-Lived Intangible Assets, Net | 71,042 | 71,042 | 67,543 | ||
Distributor Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 86,888 | 86,888 | 87,028 | ||
Accumulated amortization | 54,077 | 54,077 | 51,611 | ||
Finite-Lived Intangible Assets, Net | 32,811 | 32,811 | 35,417 | ||
Drawings and Manuals [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 28,581 | 28,581 | 29,198 | ||
Accumulated amortization | 26,862 | 26,862 | 26,193 | ||
Finite-Lived Intangible Assets, Net | 1,719 | 1,719 | 3,005 | ||
Other Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 23,996 | 23,996 | 23,901 | ||
Accumulated amortization | 19,915 | 19,915 | 19,324 | ||
Finite-Lived Intangible Assets, Net | $ 4,081 | $ 4,081 | $ 4,577 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Indefinite-lived Intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Trademarks [Member] | ||
Unamortized Intangible Assets [Abstract] | ||
Gross carrying amount | $ 96,837 | $ 96,842 |
Restructuring Activities (Detai
Restructuring Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ (9,436) | $ (12,284) | $ (15,871) | $ (19,625) |
Restructuring Reserve [Roll Forward] | ||||
Severance and other restructuring reserve, beginning balance | 14,913 | |||
Provision | 15,871 | |||
Payments | (11,108) | |||
Other, including foreign currency translation | (6,784) | |||
Severance and other restructuring reserve, ending balance | 12,892 | 12,892 | ||
Engineered Products Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (4,339) | (4,160) | (8,330) | (4,518) |
Fueling Solutions Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (1,415) | (911) | (1,464) | (2,386) |
Imaging & Identification Segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (174) | (522) | (864) | (266) |
Pumps & Process Solutions Segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (904) | (4,706) | (887) | (8,552) |
Refrigeration and Food Equipment Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (2,283) | (2,213) | (3,344) | (2,773) |
Corporate expense / other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (321) | (816) | (982) | (1,662) |
Employee Severance [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Severance and other restructuring reserve, beginning balance | 10,547 | |||
Provision | 6,680 | |||
Payments | (7,483) | |||
Other, including foreign currency translation | (66) | |||
Severance and other restructuring reserve, ending balance | 9,678 | 9,678 | ||
Facility Closing [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Severance and other restructuring reserve, beginning balance | 4,366 | |||
Provision | 9,191 | |||
Payments | (3,625) | |||
Other, including foreign currency translation | (6,718) | |||
Severance and other restructuring reserve, ending balance | 3,214 | 3,214 | ||
Cost of Sales [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (4,839) | (7,557) | (8,746) | (9,099) |
Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ (4,597) | $ (4,727) | $ (7,125) | $ (10,526) |
Borrowings (Details)
Borrowings (Details) € in Thousands, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2021EUR (€) | Dec. 31, 2020USD ($) | |
Long-term borrowings [Abstract] | |||
Net long-term debt | $ 3,083,246 | $ 3,108,829 | |
Unamortized debt discounts | 16,400 | 17,600 | |
Deferred debt issuance costs | 13,500 | 14,400 | |
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 June 30, 2021 and had an interest coverage ratio of consolidated EBITDA to consolidated net interest expense of 13.9 to 1. | ||
Letters of Credit Outstanding, Amount | $ 153,200 | ||
Note due 2025 [Member] | |||
Long-term borrowings [Abstract] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.15% | 3.15% | |
Debt Instrument, Term | 10 years | ||
Debt Instrument, Maturity Date | Nov. 15, 2025 | ||
Long-term debt | $ 397,053 | 396,716 | |
Debt Instrument, Face Amount | $ 400,000 | ||
Note due 2026 [Member] | |||
Long-term borrowings [Abstract] | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | 1.25% | |
Debt Instrument, Term | 10 years | ||
Debt Instrument, Maturity Date | Nov. 9, 2026 | ||
Long-term debt | $ 709,887 | 724,310 | |
Debt Instrument, Face Amount | € | € 600,000 | ||
Note due 2027 [Member] | |||
Long-term borrowings [Abstract] | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.75% | 0.75% | |
Debt Instrument, Term | 8 years | ||
Debt Instrument, Maturity Date | Nov. 4, 2027 | ||
Long-term debt | $ 591,052 | 603,107 | |
Debt Instrument, Face Amount | € | € 500,000 | ||
Debentures due 2028 [Member] | |||
Long-term borrowings [Abstract] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.65% | 6.65% | |
Debt Instrument, Term | 30 years | ||
Debt Instrument, Maturity Date | Jun. 1, 2028 | ||
Long-term debt | $ 199,305 | 199,255 | |
Debt Instrument, Face Amount | $ 200,000 | ||
Note due 2029 | |||
Long-term borrowings [Abstract] | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.95% | 2.95% | |
Debt Instrument, Term | 10 years | ||
Debt Instrument, Maturity Date | Nov. 4, 2029 | ||
Long-term debt | $ 296,839 | 296,650 | |
Debt Instrument, Face Amount | $ 300,000 | ||
Debenture due 2035 [Member] | |||
Long-term borrowings [Abstract] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | 5.375% | |
Debt Instrument, Term | 30 years | ||
Debt Instrument, Maturity Date | Oct. 15, 2035 | ||
Long-term debt | $ 296,434 | 296,309 | |
Debt Instrument, Face Amount | $ 300,000 | ||
Note due 2038 [Member] | |||
Long-term borrowings [Abstract] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.60% | 6.60% | |
Debt Instrument, Term | 30 years | ||
Debt Instrument, Maturity Date | Mar. 15, 2038 | ||
Long-term debt | $ 248,109 | 248,053 | |
Debt Instrument, Face Amount | $ 250,000 | ||
Note due 2041 [Member] | |||
Long-term borrowings [Abstract] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | 5.375% | |
Debt Instrument, Term | 30 years | ||
Debt Instrument, Maturity Date | Mar. 1, 2041 | ||
Long-term debt | $ 344,567 | $ 344,429 | |
Debt Instrument, Face Amount | $ 350,000 |
Financial Instruments (Details)
Financial Instruments (Details) € in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021EUR (€) | Dec. 31, 2020USD ($) | |
Derivatives, Fair Value [Line Items] | ||||||
Gain (loss) on euro-denominated debt | $ (18,894) | $ (36,904) | $ 27,539 | $ (13,280) | ||
Tax (expense) benefit | 4,269 | 8,028 | (6,223) | 2,889 | ||
Net gain (loss) on net investment hedge, net of tax | (14,625) | $ (28,876) | 21,316 | $ (10,391) | ||
Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | 184,212 | 184,212 | $ 173,674 | |||
Not Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | 90,842 | 90,842 | 73,755 | |||
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fair Value - Asset | 2,191 | 2,191 | 2,325 | |||
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Other Accrued Expenses [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fair Value - Liability | $ 549 | $ 549 | $ 2,057 | |||
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 | Jun. 30, 2021 | Dec. 31, 2020 |
Assets [Abstract] | ||
Foreign currency cash flow hedges - asset | $ 2,191 | $ 2,325 |
Liabilities [Abstract] | ||
Foreign currency cash flow hedges - liability | $ 549 | $ 2,057 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 3,083,246 | $ 3,108,829 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | 3,555,797 | 3,635,673 |
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 | 2,191 | 2,325 |
Foreign currency cash flow hedges - liability | $ (549) | $ (2,057) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Effective tax rate (in hundredths) | 18.20% | 20.40% | 18.80% | 18.70% |
Minimum [Member] | ||||
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, lower bound | $ 0 | $ 0 | ||
Maximum [Member] | ||||
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, lower bound | $ 3,700 | $ 3,700 |
Equity Incentive Program (Detai
Equity Incentive Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock-based compensation expense [Abstract] | ||||
Pre-tax stock-based compensation expense | $ 6,872 | $ 4,968 | $ 18,393 | $ 8,220 |
Tax benefit | (559) | (619) | (1,781) | (968) |
Total stock-based compensation expense, net of tax | $ 6,313 | $ 4,349 | $ 16,612 | $ 7,252 |
Stock Appreciation Rights (SARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity awards issued during period (in shares) | 412,531 | |||
Risk-free interest rate (in hundredths) | 0.59% | 1.44% | ||
Dividend yield (in hundredths) | 1.62% | 1.65% | ||
Expected life (in years) | 5 years 6 months | 5 years 6 months | ||
Volatility (in hundredths) | 30.49% | 22.76% | ||
Grant price (in dollars per share) | $ 122.73 | $ 119.86 | ||
Fair value at date of grant (in dollars per share) | $ 29.08 | $ 22.54 | ||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity awards issued during period (in shares) | 50,371 | |||
Risk-free interest rate (in hundredths) | 0.19% | 1.40% | ||
Dividend yield (in hundredths) | 1.62% | 1.65% | ||
Expected life (in years) | 2 years 10 months 24 days | 2 years 10 months 24 days | ||
Volatility (in hundredths) | 31.90% | 23.30% | ||
Grant price (in dollars per share) | $ 122.73 | $ 119.86 | ||
Fair value at date of grant (in dollars per share) | $ 148.29 | $ 165.71 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity awards issued during period (in shares) | 83,001 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Accrual for environmental loss contingencies | $ 28,921 | $ 30,431 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Beginning balance | 51,088 | $ 49,116 | |
Provision for warranties | 34,900 | 25,341 | |
Settlements made | (34,424) | (28,104) | |
Other adjustments, including acquisitions and currency translation | (528) | (455) | |
Ending balance | $ 51,036 | $ 45,898 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net periodic benefit cost [Abstract] | |||||
Defined contribution plan expense | $ 16,052 | $ 12,493 | $ 26,541 | $ 31,113 | |
Qualified Plan [Member] | Defined benefit pension plans | United States | |||||
Net periodic benefit cost [Abstract] | |||||
Service cost | 1,784 | 1,706 | 3,567 | $ 3,412 | |
Interest cost | 3,401 | 4,068 | 6,803 | 8,136 | |
Expected return on plan assets | (7,245) | (7,869) | (14,490) | (15,738) | |
Prior service cost (credit) | 53 | 57 | 106 | 114 | |
Recognized actuarial loss | 2,503 | 1,884 | 5,006 | 3,768 | |
Net periodic (income)/expense | 496 | (154) | 992 | (308) | |
Qualified Plan [Member] | Defined benefit pension plans | Foreign Pension Plans, Defined Benefit [Member] | |||||
Net periodic benefit cost [Abstract] | |||||
Service cost | 1,397 | 1,295 | 2,839 | 2,588 | |
Interest cost | 695 | 796 | 1,363 | 1,621 | |
Expected return on plan assets | (1,820) | (1,637) | (3,619) | (3,314) | |
Prior service cost (credit) | (162) | (120) | (330) | (239) | |
Recognized actuarial loss | 989 | 735 | 1,989 | 1,476 | |
Net periodic (income)/expense | 1,099 | 1,069 | 2,242 | 2,132 | |
Nonqualified Plan [Member] | Supplemental Employee Retirement Plans, Defined Benefit [Member] | |||||
Net periodic benefit cost [Abstract] | |||||
Service cost | 390 | 318 | 781 | 636 | |
Interest cost | 308 | 442 | 616 | 883 | |
Prior service cost (credit) | 383 | 424 | 766 | 848 | |
Recognized actuarial loss | (418) | (465) | (836) | (929) | |
Net periodic (income)/expense | $ 663 | $ 719 | $ 1,327 | $ 1,438 |
Other Comprehensive Earnings (D
Other Comprehensive Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Comprehensive Income Loss Reclassification Adjustment From AOCI Pension And Other Postretirement Benefit Plans Net Of Tax Abstract [Abstract] | ||||
Amortization of actuarial losses | $ 3,074 | $ 2,150 | $ 6,159 | $ 4,307 |
Amortization of prior service costs | 277 | 365 | 548 | 730 |
Total before tax | 3,351 | 2,515 | 6,707 | 5,037 |
Tax (benefit) provision | (774) | (421) | (1,548) | (989) |
Net of tax | 2,577 | 2,094 | 5,159 | 4,048 |
Other Comprehensive Income Loss Reclassification Adjustment From AOCI Derivatives Net of Tax [Abstract] | ||||
Net (gains) losses reclassified into earnings | (1,877) | (752) | (3,710) | 668 |
Tax expense (benefit) | 417 | 158 | 839 | (140) |
Net of tax | $ (1,460) | $ (594) | $ (2,871) | $ 528 |
Segment Information (Details)
Segment Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)segments | Jun. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segments | 5 | |||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | $ 2,031,676,000 | $ 1,499,175,000 | $ 3,899,577,000 | $ 3,155,114,000 |
Interest Expense | 26,661,000 | 28,711,000 | 53,484,000 | 55,979,000 |
Interest Income | (942,000) | (728,000) | (1,622,000) | (1,911,000) |
Earnings before provision for income taxes | 323,344,000 | 156,829,000 | 612,594,000 | 370,329,000 |
Provision for income taxes | 58,836,000 | 32,063,000 | 115,317,000 | 69,284,000 |
Net earnings | 264,508,000 | 124,766,000 | 497,277,000 | 301,045,000 |
Gain on sale of businesses | 0 | 781,000 | 0 | (5,770,000) |
Asset Impairment Charges | 3,640 | |||
Intersegment Eliminations [Member] | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | (740,000) | (299,000) | (1,426,000) | (716,000) |
United States | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | 1,091,015,000 | 852,999,000 | 2,127,029,000 | 1,809,639,000 |
Europe [Member] | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | 459,074,000 | 320,076,000 | 904,369,000 | 681,242,000 |
Asia [Member] | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | 236,008,000 | 164,009,000 | 428,115,000 | 318,284,000 |
Other Americas [Member] | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | 171,891,000 | 112,995,000 | 302,068,000 | 242,044,000 |
Other [Member] | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | 73,688,000 | 49,096,000 | 137,996,000 | 103,905,000 |
Engineered Products Segment [Member] | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | 442,091,000 | 342,380,000 | 870,218,000 | 750,540,000 |
Earnings before provision for income taxes | 62,720,000 | 47,702,000 | 131,499,000 | 116,796,000 |
Fueling Solutions Segment [Member] | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | 437,042,000 | 326,495,000 | 826,720,000 | 686,477,000 |
Earnings before provision for income taxes | 78,755,000 | 47,214,000 | 145,235,000 | 100,712,000 |
Imaging & Identification Segment | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | 294,076,000 | 227,977,000 | 578,404,000 | 484,742,000 |
Earnings before provision for income taxes | 60,747,000 | 38,046,000 | 117,739,000 | 89,528,000 |
Pumps & Process Solutions Segment | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | 428,701,000 | 309,095,000 | 823,078,000 | 628,631,000 |
Earnings before provision for income taxes | 138,632,000 | 67,702,000 | 262,277,000 | 133,781,000 |
Refrigeration and Food Equipment Segment [Member] | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Revenue | 430,506,000 | 293,527,000 | 802,583,000 | 605,440,000 |
Earnings before provision for income taxes | 48,971,000 | 11,459,000 | 87,088,000 | 34,988,000 |
Total segments [Member] | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Earnings before provision for income taxes | 389,825,000 | 212,123,000 | 743,838,000 | 475,805,000 |
Corporate expense / other [Member] | ||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Earnings before provision for income taxes | $ 40,762,000 | $ 27,311,000 | $ 79,382,000 | $ 51,408,000 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share Repurchases [Line Items] | ||
Purchase of common stock | $ 21,637 | $ 52,916 |
February 2018 Authorization [Member] | ||
Share Repurchases [Line Items] | ||
Purchase of common stock | $ 52,916 | |
Treasury Stock Acquired, Average Cost Per Share | $ 96.45 | |
November 2020 Authorization | ||
Share Repurchases [Line Items] | ||
Number of shares authorized to be repurchased | 20,000,000 | |
Purchase of common stock | $ 21,637 | |
Treasury Stock Acquired, Average Cost Per Share | $ 118.27 | |
Remaining number of shares authorized to be repurchased | 19,817,049 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net earnings | $ 264,508 | $ 124,766 | $ 497,277 | $ 301,045 |
Basic earnings (loss) per common share: | ||||
Net earnings (in dollars per basic share) | $ 1.84 | $ 0.87 | $ 3.46 | $ 2.09 |
Weighted average shares outstanding - basic (in shares) | 143,941,000 | 143,955,000 | 143,854,000 | 144,107,000 |
Diluted earnings (loss) per common share: | ||||
Net earnings (in dollars per diluted share) | $ 1.82 | $ 0.86 | $ 3.43 | $ 2.07 |
Weighted average shares outstanding - diluted (in shares) | 145,118,000 | 144,995,000 | 145,040,000 | 145,359,000 |
Reconciliation Of Share Amounts Used In Computing Earnings Per Share [Abstract] | ||||
Weighted average shares outstanding - basic (in shares) | 143,941,000 | 143,955,000 | 143,854,000 | 144,107,000 |
Dilutive effect of assumed exercise of SAR's and vesting of performance shares (in shares) | 1,177,000 | 1,040,000 | 1,186,000 | 1,252,000 |
Weighted average shares outstanding - diluted (in shares) | 145,118,000 | 144,995,000 | 145,040,000 | 145,359,000 |
Antidilutive securities excluded from computation of earnings per share | 121,000 | 34,000 | 130,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Subsequent Events [Abstract] | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 88,457,000 | $ 238,839 |
Subsequent Event [Line Items] | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 88,457,000 | $ 238,839 |