Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 18, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | IEX | |
Entity Registrant Name | IDEX CORP /DE/ | |
Entity Central Index Key | 832,101 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 76,242,245 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 239,397 | $ 328,018 |
Receivables, less allowance for doubtful accounts of $8,753 at September 30, 2016 and $7,812 at December 31, 2015 | 287,329 | 260,000 |
Inventories — net | 276,013 | 239,124 |
Other current assets | 54,614 | 35,542 |
Total current assets | 857,353 | 862,684 |
Property, plant and equipment — net | 261,092 | 240,945 |
Goodwill | 1,662,892 | 1,396,529 |
Intangible assets — net | 462,430 | 287,837 |
Other noncurrent assets | 18,697 | 17,448 |
Total assets | 3,262,464 | 2,805,443 |
Current liabilities | ||
Trade accounts payable | 117,430 | 128,911 |
Accrued expenses | 160,816 | 153,672 |
Notes payable and current portion of long-term borrowings | 1,171 | 1,087 |
Dividends payable | 25,940 | 25,927 |
Total current liabilities | 305,357 | 309,597 |
Total long-term borrowings | 1,099,601 | 839,707 |
Deferred income taxes | 182,688 | 110,483 |
Other noncurrent liabilities | 120,075 | 102,365 |
Total liabilities | 1,707,721 | 1,362,152 |
Commitments and contingencies | ||
Preferred stock: | ||
Authorized: 5,000,000 shares, $.01 per share par value; Issued: None | 0 | 0 |
Common stock: | ||
Authorized: 150,000,000 shares, $.01 per share par value Issued: 90,202,449 shares at September 30, 2016 and 90,151,131 shares at December 31, 2015 | 902 | 902 |
Additional paid-in capital | 692,730 | 679,623 |
Retained earnings | 1,803,060 | 1,666,680 |
Treasury stock at cost: 13,907,807 shares at September 30, 2016 and 13,616,592 shares at December 31, 2015 | (794,364) | (757,416) |
Accumulated other comprehensive income (loss) | (147,585) | (146,498) |
Total shareholders’ equity | 1,554,743 | 1,443,291 |
Total liabilities and shareholders’ equity | $ 3,262,464 | $ 2,805,443 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 8,753 | $ 7,812 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock , par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 90,202,449 | 90,151,131 |
Treasury stock, shares (in shares) | 13,907,807 | 13,616,592 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 530,356 | $ 503,791 | $ 1,582,624 | $ 1,520,870 |
Cost of sales | 299,467 | 280,531 | 884,342 | 839,954 |
Gross profit | 230,889 | 223,260 | 698,282 | 680,916 |
Selling, general and administrative expenses | 119,965 | 114,794 | 371,825 | 360,784 |
Restructuring expenses | 0 | 4,723 | 0 | 4,723 |
Loss (gain) on sale of businesses - net | 2,067 | (18,070) | 2,067 | (18,070) |
Operating income | 108,857 | 121,813 | 324,390 | 333,479 |
Other (income) expense - net | (2,364) | (693) | (4,982) | (1,589) |
Interest expense | 11,913 | 10,229 | 33,607 | 31,410 |
Income before income taxes | 99,308 | 112,277 | 295,765 | 303,658 |
Provision for income taxes | 29,435 | 32,772 | 82,003 | 88,614 |
Net income | $ 69,873 | $ 79,505 | $ 213,762 | $ 215,044 |
Basic earnings per common share (in dollars per share) | $ 0.92 | $ 1.03 | $ 2.81 | $ 2.77 |
Diluted earnings per common share (in dollars per share) | $ 0.91 | $ 1.02 | $ 2.78 | $ 2.75 |
Share data: | ||||
Basic weighted average common shares outstanding (in shares) | 75,819 | 76,831 | 75,753 | 77,431 |
Diluted weighted average common shares outstanding (in shares) | 76,880 | 77,646 | 76,742 | 78,266 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 69,873 | $ 79,505 | $ 213,762 | $ 215,044 |
Other comprehensive income (loss) | ||||
Reclassification adjustments for derivatives, net of tax | 1,082 | 1,114 | 3,272 | 3,370 |
Pension and other postretirement adjustments, net of tax | 594 | 818 | 1,856 | 2,418 |
Cumulative translation adjustment | 353 | (16,936) | (10,473) | (49,830) |
Reclassification of foreign currency translation to earnings upon sale of subsidiaries | 4,258 | (4,725) | 4,258 | (4,725) |
Other comprehensive income (loss) | 6,287 | (19,729) | (1,087) | (48,767) |
Comprehensive income | $ 76,160 | $ 59,776 | $ 212,675 | $ 166,277 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands | Total | Common Stock and Additional Paid-In Capital | Retained Earnings | Cumulative Translation Adjustment | Retirement Benefits Adjustment | Cumulative Unrealized Gain (Loss) on Derivatives | Treasury Stock |
Balance at Dec. 31, 2015 | $ 1,443,291 | $ 680,525 | $ 1,666,680 | $ (92,979) | $ (30,901) | $ (22,618) | $ (757,416) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 213,762 | 213,762 | |||||
Cumulative translation adjustment | (6,215) | (6,215) | |||||
Net change in retirement obligations (net of tax of $964) | 1,856 | 1,856 | |||||
Net change on derivatives designated as cash flow hedges (net of tax of $1,872) | 3,272 | 3,272 | |||||
Issuance of 447,378 shares of common stock from issuance of unvested shares, performance share units and exercise of stock options | 23,152 | 251 | 22,901 | ||||
Repurchase of 738,593 shares of common stock | (54,950) | (54,950) | |||||
Unvested shares surrendered for tax withholding | (4,899) | (4,899) | |||||
Share-based compensation | 12,856 | 12,856 | |||||
Cash dividends declared - $1.02 per common share outstanding | (77,382) | (77,382) | |||||
Balance at Sep. 30, 2016 | $ 1,554,743 | $ 693,632 | $ 1,803,060 | $ (99,194) | $ (29,045) | $ (19,346) | $ (794,364) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Statement of Stockholders' Equity [Abstract] | |
Pension and other postretirement adjustments, tax | $ | $ 964 |
Amortization of forward starting swaps, tax | $ | $ 1,872 |
Issuance of common stock from performance share units and exercise of stock options (in shares) | shares | 447,378 |
Repurchase of common stock (in shares) | shares | 738,953 |
Cash dividends declared (in dollars per share) | $ / shares | $ 1.02 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities | ||
Net income | $ 213,762 | $ 215,044 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loss (gain) on sale of businesses - net | 2,067 | (18,070) |
Depreciation and amortization | 28,360 | 26,634 |
Amortization of intangible assets | 35,964 | 31,340 |
Amortization of debt issuance costs | 1,150 | 1,233 |
Share-based compensation expense | 15,325 | 14,735 |
Deferred income taxes | 4,880 | 1,473 |
Excess tax benefit from share-based compensation | 0 | (4,350) |
Non-cash interest expense associated with forward starting swaps | 5,144 | 5,287 |
Changes in (net of effect from acquisitions and divestitures): | ||
Receivables | (2,178) | (1,417) |
Inventories | 22,250 | (6,474) |
Other current assets | (18,276) | (2,742) |
Trade accounts payable | (16,696) | (4,002) |
Accrued expenses | (2,982) | 2,067 |
Other - net | (4,446) | 1,023 |
Net cash flows provided by operating activities | 284,324 | 261,781 |
Cash flows from investing activities | ||
Additions of property, plant and equipment | (28,642) | (32,611) |
Acquisition of businesses, net of cash acquired | (510,001) | (193,163) |
Proceeds from sale of businesses, net of cash sold | 32,529 | 27,677 |
Other - net | (73) | 647 |
Net cash flows used in investing activities | (506,187) | (197,450) |
Cash flows from financing activities | ||
Borrowings under revolving facilities | 460,524 | 383,621 |
Payments under revolving facilities | (402,172) | (295,934) |
Payment of 2.58% Senior Euro Notes | 0 | (88,420) |
Debt issuance costs | (246) | (1,698) |
Dividends paid | (77,367) | (71,673) |
Proceeds from stock option exercises | 23,154 | 15,167 |
Excess tax benefit from share-based compensation | 0 | 4,350 |
Purchase of common stock | (57,272) | (177,772) |
Shares surrendered for tax withholding | (4,899) | (3,217) |
Net cash flows provided by (used in) financing activities | 141,722 | (235,576) |
Effect of exchange rate changes on cash and cash equivalents | (8,480) | (31,410) |
Net increase (decrease) in cash | (88,621) | (202,655) |
Cash and cash equivalents at beginning of year | 328,018 | 509,137 |
Cash and cash equivalents at end of period | 239,397 | 306,482 |
Cash paid for: | ||
Interest | 18,261 | 18,069 |
Income taxes - net | 77,250 | 70,217 |
3.2% Senior Notes, due June 2023 | ||
Cash flows from financing activities | ||
Proceeds from Senior Notes | 100,000 | 0 |
3.37% Senior Notes, due June 2025 | ||
Cash flows from financing activities | ||
Proceeds from Senior Notes | $ 100,000 | $ 0 |
CONDENSED CONSOLIDATED STATEME9
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | Sep. 30, 2016 |
3.2% Senior Notes, due June 2023 | |
Stated interest rate | 3.20% |
3.37% Senior Notes, due June 2025 | |
Stated interest rate | 3.37% |
2.58% Senior Euro Notes | |
Stated interest rate | 2.58% |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The Condensed Consolidated Financial Statements of IDEX Corporation (“IDEX,” “we,” “our,” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) applicable to interim financial information and the instructions to Form 10-Q under the Securities Exchange Act of 1934, as amended. The statements are unaudited but include all adjustments, consisting only of recurring items, except as noted, that the Company considers necessary for a fair presentation of the information set forth herein. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the entire year. The Condensed Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth in this report should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . Recently Adopted Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company elected to early adopt this standard in the quarter ended March 31, 2016. The Company applied this standard prospectively and thus, prior periods have not been adjusted. The impact of the adoption resulted in the following: • The Company recorded a tax benefit of $1.2 million and $5.4 million within Provision for income taxes for the three and nine months ended September 30, 2016 , respectively, related to the excess tax benefit on stock options, restricted stock and performance share units. Prior to adoption this amount would have been recorded as a reduction of additional paid-in capital. This change could create volatility in the Company’s effective tax rate. • The Company elected not to change our policy on accounting for forfeitures and continued to estimate the total number of awards for which the requisite service period will not be rendered. • The Company no longer reclassifies the excess tax benefit from operating activities to financing activities in the statement of cash flows. • The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the three and nine months ended September 30, 2016 . This increased our diluted weighted average common shares outstanding by 198 thousand and 174 thousand shares for the three and nine months ended September 30, 2016 , respectively. Recently Issued Accounting Standards In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force). This ASU addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This standard is effective for fiscal years beginning after December 15, 2017. The Company does not believe the guidance will have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which introduces a new lessee model that will require most leases to be recorded on the balance sheet and eliminates the required use of bright line tests in current U.S. GAAP for determining lease classification. This standard is effective for fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact of the new guidance on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which introduces a new five-step revenue recognition model. Under ASU 2014-09, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This standard is effective for fiscal years beginning after December 15, 2017, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption. The FASB has also issued the following standards which clarify ASU 2014-09 and have the same effective date as the original standard: ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ; ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing ; and ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients . The Company is currently evaluating the impact of the new guidance on our consolidated financial statements and has not yet determined the method by which we will adopt the standard in 2018. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations and Dispositions [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures All of the Company’s acquisitions have been accounted for under FASB Accounting Standards Codification (“ASC”) 805, Business Combinations . Accordingly, the accounts of the acquired companies, after adjustments to reflect fair values assigned to assets and liabilities, have been included in the Company’s consolidated financial statements from their respective dates of acquisition. The Company incurred $1.6 million and $0.9 million of acquisition-related transaction costs in the three months ended September 30, 2016 and 2015 , respectively, and $4.0 million and $2.1 million in the nine months ended September 30, 2016 and 2015 , respectively. These costs were recorded in Selling, general and administrative expenses and were related to completed transactions, pending transactions and potential transactions, including transactions that ultimately were not completed. During the three and nine months ended September 30, 2016 , the Company recorded $4.6 million and $10.4 million , respectively, of fair value inventory step-up charges in Cost of sales associated with the completed 2016 acquisitions. During the three and nine months ended September 30, 2015, the Company recorded within Cost of sales $2.7 million and $3.4 million , respectively, of fair value inventory charges associated with completed 2015 acquisitions. 2016 Acquisitions On March 16, 2016, the Company acquired the stock of Akron Brass Holding Corporation (“Akron Brass”), a producer of a large array of engineered life–safety products for the safety and emergency response markets, which includes apparatus valves, monitors, nozzles, specialty lighting, electronic vehicle–control systems and firefighting hand tools. The business was acquired to complement and create synergies with our existing Hale, Class 1, and Godiva businesses. Headquartered in Wooster, Ohio, Akron Brass had annual revenues in its most recent fiscal year of approximately $120 million and operates in our Fire & Safety/Diversified Products segment. Akron Brass was acquired for cash consideration of $221.4 million . The purchase price was funded with borrowings under the Company’s revolving facilities. Goodwill and intangible assets recognized as part of the transaction were $125.1 million and $90.4 million , respectively. The goodwill is not deductible for tax purposes. On July 1, 2016, the Company acquired the stock of AWG Fittings GmbH (“AWG Fittings”), a producer of engineered products for the safety and emergency response markets, including valves, monitors and nozzles. The business was acquired to complement and create synergies with our existing Hale, Class 1, Godiva and Akron Brass businesses. Headquartered in Ballendorf, Germany, AWG Fittings had annual revenues in its most recent fiscal year of approximately $40 million and operates in our Fire & Safety/Diversified Products segment. AWG Fittings was acquired for cash consideration of $47.5 million ( €42.8 million ). The purchase price was funded with cash on hand. Goodwill and intangible assets recognized as part of the transaction were $22.7 million and $10.3 million , respectively. The goodwill is not deductible for tax purposes. On August 31, 2016, the Company acquired the stock of SFC Koenig AG (“SFC Koenig”), a producer of highly engineered expanders and check valves for critical applications across the transportation, hydraulic, aviation and medical markets. Headquartered in Dietikon, Switzerland, SFC Koenig had annual revenues in its most recent fiscal year of approximately $63 million and operates in our Health & Science Technologies segment. SFC Koenig was acquired for cash consideration of $241.1 million ( €215.9 million ). The purchase price was funded with cash on hand and borrowings under the Company’s revolving facilities. Goodwill and intangible assets recognized as part of the transaction were $132.4 million and $114.7 million , respectively. The goodwill is not deductible for tax purposes. The Company made initial allocations of the purchase price for the Akron Brass, AWG Fittings and SFC Koenig acquisitions as of the acquisition date based on its understanding of the fair value of the acquired assets and assumed liabilities. As the Company obtains additional information about these assets and liabilities and learns more about the newly acquired businesses, we will refine the estimates of fair value and more accurately allocate the purchase price. Only items identified as of the acquisition date are considered for subsequent adjustment. The Company will make appropriate adjustments to the purchase price allocation prior to the completion of the measurement period, as required. The preliminary allocation of the acquisition costs to the assets acquired and liabilities assumed, based on their estimated fair values, are as follows: Akron Brass AWG Fittings SFC Koenig Total Current assets, net of cash acquired $ 44,126 $ 18,317 $ 35,568 $ 98,011 Property, plant and equipment 12,195 6,847 6,566 25,608 Goodwill 125,090 22,733 132,381 280,204 Intangible assets 90,400 10,279 114,737 215,416 Deferred income taxes — 2,524 — 2,524 Total assets acquired 271,811 60,700 289,252 621,763 Current liabilities (7,081 ) (4,762 ) (12,858 ) (24,701 ) Deferred income taxes (36,886 ) — (29,809 ) (66,695 ) Other noncurrent liabilities (6,445 ) (8,444 ) (5,477 ) (20,366 ) Net assets acquired $ 221,399 $ 47,494 $ 241,108 $ 510,001 Acquired intangible assets consist of trade names, customer relationships and unpatented technology. The goodwill recorded for the acquisitions reflect the strategic fit, revenue and earnings growth potential of these businesses. Of the $215.4 million of acquired intangible assets, $28.8 million was assigned to the Akron Brass trade name and is not subject to amortization. The acquired intangible assets and weighted average amortization periods are as follows: Total Weighted Average Life Trade names $ 14,423 15 Customer relationships 130,598 13 Unpatented technology 41,595 13 Amortized intangible assets 186,616 Indefinite lived - Akron Brass trade name 28,800 Total acquired intangible assets $ 215,416 2015 Acquisitions On May 29, 2015, the Company acquired the stock of Novotema, SpA (“Novotema”), a leader in the design, manufacture and sale of specialty sealing solutions for use in the building products, gas control, transportation, industrial and water markets. The business was acquired to complement and create synergies with our existing Sealing Solutions platform. Located in Villongo, Italy, Novotema operates in our Health & Science Technologies segment. Novotema was acquired for cash consideration of $61.1 million ( €56 million ). The entire purchase price was funded with cash on hand. Goodwill and intangible assets recognized as part of this transaction were $34.3 million and $20.0 million , respectively. The $34.3 million of goodwill is not deductible for tax purposes. On June 10, 2015, the Company acquired the stock of Alfa Valvole, S.r.l (“Alfa”), a leader in the design, manufacture and sale of specialty valve products for use in the chemical, petro-chemical, energy and sanitary markets. The business was acquired to expand our valve capabilities. Located in Casorezzo, Italy, Alfa operates in our Fluid & Metering Technologies segment. Alfa was acquired for cash consideration of $112.6 million ( €99.8 million ). The entire purchase price was funded with cash on hand. Goodwill and intangible assets recognized as part of this transaction were $69.6 million and $32.1 million , respectively. The $69.6 million of goodwill is not deductible for tax purposes. On July 1, 2015, the Company acquired the membership interests of CiDRA Precision Services, LLC (“CPS”), a leader in the design, manufacture and sale of microfluidic components serving the life science, health and industrial markets. The business was acquired to provide a critical building block to our emerging microfluidic and nanofluidics capabilities. Located in Wallingford, Connecticut, CPS operates within our Health & Sciences Technologies segment. CPS was acquired for an aggregate purchase price of $24.2 million , consisting of $19.5 million in cash and contingent consideration valued at $4.7 million as of the opening balance sheet date. The contingent consideration was based on the achievement of financial objectives during the 12-month period following the close. Based on potential outcomes, the undiscounted amount of all the future payments that the Company could have been required to make under the contingent consideration arrangement was between $0 and $5.5 million . During the six months ended June 30, 2016, the Company re-evaluated the contingent consideration arrangement and fully reversed the $4.7 million liability based on CPS’s actual operating results from July 1, 2015 to June 30, 2016. The $4.7 million reversal was recognized as a benefit within Selling, general and administrative expenses, of which $3.7 million was recognized in March 2016 and the remaining $1.0 million was recognized in June 2016. The entire purchase price was funded with cash on hand. Goodwill and intangible assets recognized as part of this transaction were $9.7 million and $12.3 million , respectively. The $9.7 million of goodwill is deductible for tax purposes. On December 1, 2015 the Company acquired the assets of a complementary product line within our Fluid & Metering Technologies segment. The purchase price and goodwill associated with this transaction were $1.9 million and $0.7 million , respectively. 2016 Divestitures The Company periodically reviews its operations for businesses which may no longer be aligned with its strategic objectives and focus on core business and customers. Any resulting gain or loss recognized due to divestitures is recorded on the Consolidated Statement of Operations within Loss (gain) on sale of businesses - net. On July 29, 2016, the Company completed the sale of its Hydra-Stop product line for $15.0 million in cash, resulting in a pre-tax gain on the sale of $5.8 million . In addition, the Company can earn up to $2 million based on the achievement of financial objectives for net sales in 2016 and 2017. The results of Hydra-Stop were reported within the Fluid & Metering Technologies segment, as part of the Water platform, and generated $7.5 million of revenues in 2016 through the date of sale. On September 9, 2016, the Company completed the sale of its Melles Griot KK subsidiary for $17.5 million in cash, resulting in a pre-tax loss on the sale of $7.9 million . The results of Melles Griot KK were reported within the Health & Science Technologies segment, as part of the IDEX Optics and Photonics platform, and generated $13.1 million of revenues in 2016 through the date of sale. 2015 Divestitures On July 31, 2015, the Company completed the sale of its Ismatec product line for $27.7 million in cash, resulting in a pre-tax gain on the sale of $18.1 million . The results of Ismatec were reported within the Health & Science Technologies segment, as part of the Scientific Fluidics platform, and generated $5.3 million of revenues in 2015 through the date of sale. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company has three reportable business segments: Fluid & Metering Technologies, Health & Science Technologies and Fire & Safety/Diversified Products. The Fluid & Metering Technologies segment designs, produces and distributes positive displacement pumps, flow meters, injectors, and other fluid-handling pump modules and systems and provides flow monitoring and other services for the water and wastewater industries. The Health & Science Technologies segment designs, produces and distributes a wide range of precision fluidics, rotary lobe pumps, centrifugal and positive displacement pumps, roll compaction and drying systems used in beverage, food processing, pharmaceutical and cosmetics, pneumatic components and sealing solutions, very high precision, low-flow rate pumping solutions required in analytical instrumentation, clinical diagnostics and drug discovery, high performance molded and extruded, biocompatible medical devices and implantables, air compressors used in medical, dental and industrial applications, optical components and coatings for applications in the fields of scientific research, defense, biotechnology, aerospace, semi-conductor, telecommunications and electronics manufacturing, laboratory and commercial equipment used in the production of micro and nano scale materials, precision photonic solutions used in life sciences, research and defense markets, and precision gear technologies that meet exacting original equipment manufacturer specifications. The Fire & Safety/Diversified Products segment produces firefighting pumps and controls, valves, monitors, nozzles, rescue tools, lifting bags and other components and systems for the fire and rescue industry, engineered stainless steel banding and clamping devices used in a variety of industrial and commercial applications, and precision equipment for dispensing, metering and mixing colorants and paints used in a variety of retail and commercial businesses around the world. Information on the Company’s business segments is presented below, based on the nature of products and services offered. The Company evaluates performance based on several factors, of which operating income is the primary financial measure. Intersegment sales are accounted for as if the sales were to third parties. Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net sales Fluid & Metering Technologies External customers $ 208,164 $ 211,971 $ 641,508 $ 644,886 Intersegment sales 171 130 480 756 Total group sales 208,335 212,101 641,988 645,642 Health & Science Technologies External customers 183,453 184,816 556,157 550,612 Intersegment sales 111 77 318 1,806 Total group sales 183,564 184,893 556,475 552,418 Fire & Safety/Diversified Products External customers 138,739 107,004 384,959 325,372 Intersegment sales 28 5 37 200 Total group sales 138,767 107,009 384,996 325,572 Intersegment elimination (310 ) (212 ) (835 ) (2,762 ) Total net sales $ 530,356 $ 503,791 $ 1,582,624 $ 1,520,870 Operating income Fluid & Metering Technologies $ 55,600 $ 46,910 $ 160,866 $ 154,665 Health & Science Technologies 37,204 38,371 119,028 117,888 Fire & Safety/Diversified Products 32,189 32,536 91,709 91,180 Corporate office income (expense) and other (1) (16,136 ) 3,996 (47,213 ) (30,254 ) Total operating income 108,857 121,813 324,390 333,479 Interest expense 11,913 10,229 33,607 31,410 Other (income) expense - net (2,364 ) (693 ) (4,982 ) (1,589 ) Income before income taxes $ 99,308 $ 112,277 $ 295,765 $ 303,658 (1) 2016 includes a $2.1 million loss on sale of businesses and 2015 includes an $18.1 million gain on the sale of business. September 30, December 31, Assets Fluid & Metering Technologies $ 1,084,118 $ 1,125,266 Health & Science Technologies 1,323,130 1,108,302 Fire & Safety/Diversified Products 741,427 448,867 Corporate office 113,789 123,008 Total assets $ 3,262,464 $ 2,805,443 |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Earnings per common share (“EPS”) are computed by dividing net income by the weighted average number of shares of common stock (basic) plus common stock equivalents outstanding (diluted) during the period. Common stock equivalents consist of stock options, which have been included in the calculation of weighted average shares outstanding using the treasury stock method, restricted stock, performance share units, and shares issuable in connection with certain deferred compensation agreements (“DCUs”). ASC 260, Earnings Per Share, provides that all outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends participate in undistributed earnings with common shareholders. If awards are considered participating securities, the Company is required to apply the two-class method of computing basic and diluted earnings per share. The Company has determined that its outstanding shares of restricted stock are participating securities. Accordingly, earnings per common share are computed using the more dilutive of the treasury stock method and the two-class method prescribed by ASC 260. Basic weighted average shares reconciles to diluted weighted average shares as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Basic weighted average common shares outstanding 75,819 76,831 75,753 77,431 Dilutive effect of stock options, restricted stock, performance share units and DCUs 1,061 815 989 835 Diluted weighted average common shares outstanding 76,880 77,646 76,742 78,266 Options to purchase approximately 0.1 million and 0.9 million shares of common stock for the three and nine months ended September 30, 2016 , respectively, and 0.9 million and 0.5 million shares of common stock for the three and nine months ended September 30, 2015 were not included in the computation of diluted EPS because the effect of their inclusion would be antidilutive. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories as of September 30, 2016 and December 31, 2015 were: September 30, December 31, Raw materials and component parts $ 166,205 $ 141,671 Work in process 37,001 32,387 Finished goods 72,807 65,066 Total $ 276,013 $ 239,124 Inventories are stated at the lower of cost or market. Cost, which includes material, labor and factory overhead, is determined on a FIFO basis. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the nine months ended September 30, 2016 , by reportable business segment, were as follows: Fluid & Metering Technologies Health & Science Technologies Fire & Safety/ Diversified Products Total Balance at December 31, 2015 $ 584,770 $ 590,605 $ 221,154 $ 1,396,529 Foreign currency translation 3,151 (4,820 ) 1,638 (31 ) Acquisitions — 132,381 147,823 280,204 Disposition of businesses (3,594 ) (9,140 ) — (12,734 ) Acquisition adjustments (1,623 ) 547 — (1,076 ) Balance at September 30, 2016 $ 582,704 $ 709,573 $ 370,615 $ 1,662,892 ASC 350, Goodwill and Other Intangible Assets, requires that goodwill be tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs, or circumstances change, that would more likely than not reduce the fair value of the reporting unit below its carrying value. Annually, on October 31, goodwill and other acquired intangible assets with indefinite lives are tested for impairment. Based on the results of our annual impairment test at October 31, 2015 , all reporting units had a fair value that was more than 70% greater than the carrying value, except for our IDEX Optics and Photonics (“IOP”) and Valves reporting units. Our IOP reporting unit had a fair value that was approximately 20% in excess of the carrying value and our Valves reporting unit had a fair value near its carrying value as a result of the formation of this reporting unit in conjunction with our Alfa acquisition in June 2015. Due to the divestitures in the third quarter of 2016, the Company performed interim impairment tests at the Water and IOP reporting units. As a result of these interim impairment tests, the Company concluded that both reporting units had fair values in excess of their carrying values. The Water reporting unit had a fair value that was significantly in excess of its carrying value and the IOP reporting unit had a fair value that was approximately 20% in excess of its carrying value, both of which are consistent with our annual impairment test at October 31, 2015. The following table provides the gross carrying value and accumulated amortization for each major class of intangible assets at September 30, 2016 and December 31, 2015 : At September 30, 2016 At December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Weighted Average Life Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets: Patents $ 10,180 $ (6,772 ) $ 3,408 11 $ 10,202 $ (6,175 ) $ 4,027 Trade names 118,983 (42,190 ) 76,793 16 110,658 (38,696 ) 71,962 Customer relationships 384,141 (162,524 ) 221,617 12 257,071 (144,134 ) 112,937 Non-compete agreements — — — 3 794 (775 ) 19 Unpatented technology 117,455 (48,281 ) 69,174 11 78,562 (42,745 ) 35,817 Other 6,599 (6,061 ) 538 10 6,554 (5,579 ) 975 Total amortized intangible assets 637,358 (265,828 ) 371,530 463,841 (238,104 ) 225,737 Indefinite lived intangible assets: Banjo trade name 62,100 — 62,100 62,100 — 62,100 Akron Brass trade name 28,800 — 28,800 — — — Total intangible assets $ 728,258 $ (265,828 ) $ 462,430 $ 525,941 $ (238,104 ) $ 287,837 The Banjo trade name is an indefinite lived intangible asset which is tested for impairment on an annual basis in accordance with ASC 350 or more frequently if events or changes in circumstances indicate that the asset might be impaired. In the first nine months of 2016 , there were no triggering events or changes that would have required a review. Based on the results of our annual impairment test at October 31, 2015 , the fair value of the Banjo trade name was greater than 20% in excess of the carrying value. The Akron Brass trade name is an indefinite lived intangible asset that was generated as a result of the Akron Brass acquisition in March 2016 and it will be tested for impairment on an annual basis in accordance with ASC 350 or more frequently if events or changes in circumstances indicate that the asset might be impaired. Amortization of intangible assets was $12.8 million and $11.2 million for the three months ended September 30, 2016 and 2015 , respectively. Amortization of intangible assets was $28.4 million and $26.6 million for the nine months ended September 30, 2016 and 2015 , respectively. Based on the intangible asset balances as of September 30, 2016 , amortization expense is expected to approximate $14.0 million for the remaining three months of 2016 , $40.3 million in 2017 , $34.5 million in 2018 , $33.0 million in 2019 and $32.2 million in 2020 . |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses The components of accrued expenses as of September 30, 2016 and December 31, 2015 were: September 30, December 31, Payroll and related items $ 62,703 $ 67,209 Management incentive compensation 13,755 12,599 Income taxes payable 11,409 3,836 Insurance 8,979 9,505 Warranty 6,036 7,936 Deferred revenue 11,200 9,885 Restructuring 2,258 6,636 Liability for uncertain tax positions 2,711 3,498 Accrued interest 11,518 1,230 Contingent consideration for acquisition — 4,705 Other 30,247 26,633 Total accrued expenses $ 160,816 $ 153,672 |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | Other Noncurrent Liabilities The components of other noncurrent liabilities as of September 30, 2016 and December 31, 2015 were: September 30, December 31, Pension and retiree medical obligations $ 98,422 $ 76,190 Liability for uncertain tax positions 3,030 4,252 Deferred revenue 1,828 3,763 Other 16,795 18,160 Total other noncurrent liabilities $ 120,075 $ 102,365 |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Borrowings at September 30, 2016 and December 31, 2015 consisted of the following: September 30, December 31, Revolving Facility $ 255,130 $ 195,000 4.5% Senior Notes, due December 2020 300,000 300,000 4.2% Senior Notes, due December 2021 350,000 350,000 3.2% Senior Notes, due June 2023 100,000 — 3.37% Senior Notes, due June 2025 100,000 — Other borrowings 1,562 2,436 Total borrowings 1,106,692 847,436 Less current portion 1,171 1,087 Less deferred debt issuance costs 4,664 5,203 Less unaccreted debt discount 1,256 1,439 Total long-term borrowings $ 1,099,601 $ 839,707 On June 13, 2016, the Company completed a private placement of $100 million aggregate principal amount of 3.20% Senior Notes due June 13, 2023 and $100 million aggregate principal amount of 3.37% Senior Notes due June 13, 2025 (collectively, the “Notes”) pursuant to a Note Purchase Agreement, dated June 13, 2016 (the “Purchase Agreement”). Each series of Notes bears interest at the stated amount per annum, which is payable semi-annually in arrears on each June 13 th and December 13 th . The Notes are unsecured obligations of the Company and rank pari passu in right of payment with all of the Company’s other unsecured, unsubordinated debt. The Company may at any time prepay all, or any portion of the Notes; provided that such portion is greater than 5% of the aggregate principal amount of Notes then outstanding. In the event of a prepayment, the Company will pay an amount equal to par plus accrued interest plus a make-whole amount. In addition, the Company may repurchase Notes by making an offer to all holders of the Notes, subject to certain conditions. The Purchase Agreement contains certain covenants that restrict the Company’s ability to, among other things, transfer or sell assets, incur indebtedness, create liens, transact with affiliates and engage in certain mergers or consolidations or other change of control transactions. In addition, the Company must comply with a leverage ratio and interest coverage ratio, as further described below, and the Purchase Agreement also limits the outstanding principal amount of priority debt that may be incurred by the Company to 15% of consolidated assets. The Purchase Agreement provides for customary events of default. In the case of an event of default arising from specified events of bankruptcy or insolvency, all of the outstanding Notes will become due and payable immediately without further action or notice. In the case of payment event of default, any holder of the Notes affected thereby may declare all the Notes held by it due and payable immediately. In the case of any other event of default, a majority of the holders of Notes may declare all of the Notes to be due and payable immediately. On June 23, 2015, the Company entered into a credit agreement (the “Credit Agreement”) along with certain of its subsidiaries, as borrowers (the “Borrowers”), Bank of America, N.A., as administrative agent, swing line lender and an issuer of letters of credit, with other agents party thereto. The Credit Agreement replaces the Company’s existing five -year, $700 million credit agreement, dated as of June 27, 2011, which was due to expire on June 27, 2016. The Credit Agreement consists of a revolving credit facility (the “Revolving Facility”) in an aggregate principal amount of $700 million , with a final maturity date of June 23, 2020 . The maturity date may be extended under certain conditions for an additional one -year term. Up to $75 million of the Revolving Facility is available for the issuance of letters of credit. Additionally, up to $50 million of the Revolving Facility is available to the Company for swing line loans, available on a same-day basis. Proceeds of the Revolving Facility are available for use by the Borrowers for acquisitions, working capital and other general corporate purposes, including refinancing existing debt of the Company and its subsidiaries. The Company may request increases in the lending commitments under the Credit Agreement, but the aggregate lending commitments pursuant to such increases may not exceed $350 million . The Company has the right, subject to certain conditions set forth in the Credit Agreement, to designate certain foreign subsidiaries of the Company as borrowers under the Credit Agreement. In connection with any such designation, the Company is required to guarantee the obligations of any such subsidiaries. Borrowings under the Credit Agreement bear interest, at either an alternate base rate or an adjusted LIBOR rate plus, in each case, an applicable margin. Such applicable margin is based on the Company’s senior, unsecured, long-term debt rating and can range from .005% to 1.50% . Based on the Company’s credit rating at September 30, 2016 , the applicable margin was 1.10% , resulting in a weighted average interest rate of 1.34% at September 30, 2016 . Interest is payable (a) in the case of base rate loans, quarterly, and (b) in the case of LIBOR rate loans, on the maturity date of the borrowing, or quarterly from the effective date for borrowings exceeding three months. The Credit Agreement requires payment to the lenders of a facility fee based upon (a) the amount of the lenders’ commitments under the credit facility from time to time and (b) the applicable corporate credit ratings of the Company. Voluntary prepayments of any loans and voluntary reductions of the unutilized portion of the commitments under the credit facility are permissible without penalty, subject to break funding payments and minimum notice and minimum reduction amount requirements. The negative covenants include, among other things, limitations (each of which is subject to customary exceptions for financings of this type) on our ability to grant liens; enter into transactions resulting in fundamental changes (such as mergers or sales of all or substantially all of the assets of the Company); restrict subsidiary dividends or other subsidiary distributions; enter into transactions with the Company’s affiliates; and incur certain additional subsidiary debt. The Credit Agreement also contains customary events of default (subject to grace periods, as appropriate) including among others: nonpayment of principal, interest or fees; breach of the representations or warranties in any material respect; breach of the financial, affirmative or negative covenants; payment default on, or acceleration of, other material indebtedness; bankruptcy or insolvency; material judgments entered against the Company or any of its subsidiaries; certain specified events under the Employee Retirement Income Security Act of 1974, as amended; certain changes in control of the Company; and the invalidity or unenforceability of the Credit Agreement or other documents associated with the Credit Agreement. At September 30, 2016 , $255.1 million was outstanding under the Revolving Facility, with $8.2 million of outstanding letters of credit, resulting in net available borrowing capacity under the Revolving Facility at September 30, 2016 of approximately $436.7 million . Other borrowings of $1.6 million at September 30, 2016 consisted primarily of debt at international locations maintained for working capital purposes. Interest is payable on the outstanding debt balances at rates ranging from 0.9% to 2.8% per annum. There are two key financial covenants that the Company is required to maintain in connection with the Revolving Facility and the Notes, a minimum interest coverage ratio of 3.0 to 1 and a maximum leverage ratio of 3.50 to 1 . At September 30, 2016 , the Company was in compliance with both of these financial covenants. There are no financial covenants relating to the 4.5% Senior Notes or 4.2% Senior Notes; however, both are subject to cross-default provisions. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company enters into cash flow hedges from time to time to reduce the exposure to variability in certain expected future cash flows. The type of cash flow hedges the Company enters into includes foreign currency contracts and interest rate exchange agreements that effectively convert a portion of floating-rate debt to fixed-rate debt and are designed to reduce the impact of interest rate changes on future interest expense. The effective portion of gains or losses on interest rate exchange agreements is reported in accumulated other comprehensive income (loss) in shareholders’ equity and reclassified into net income in the same period or periods in which the hedged transaction affects net income. See Note 13 for the amount of loss reclassified into income for interest rate contracts for the nine months ended September 30, 2016 and 2015 . The remaining gain or loss in excess of the cumulative change in the present value of future cash flows or the hedged item, if any, is recognized into net income during the period of change. Fair values relating to derivative financial instruments reflect the estimated amounts that the Company would receive or pay to sell or buy the contracts based on quoted market prices of comparable contracts at each balance sheet date. As of September 30, 2016 , the Company did not have any interest rate contracts outstanding. In 2010 and 2011, the Company entered into two separate forward starting interest rate contracts in anticipation of the issuance of the 4.2% Senior Notes and the 4.5% Senior Notes. The Company cash settled these two interest rate contracts in 2010 and 2011 for a total of $68.9 million , which is being amortized into interest expense over the 10 year term of the debt instruments. Approximately $6.7 million of the pre-tax amount included in accumulated other comprehensive income (loss) in shareholders’ equity at September 30, 2016 will be recognized to net income over the next 12 months as the underlying hedged transactions are realized. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures, defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The standard utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: • Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: Inputs, other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. The following table summarizes the basis used to measure the Company’s financial assets at fair value on a recurring basis in the balance sheets at September 30, 2016 and December 31, 2015 : Basis of Fair Value Measurements Balance at Level 1 Level 2 Level 3 Money market investment $ 18,210 $ 18,210 $ — $ — Available for sale securities 5,705 5,705 — — Basis of Fair Value Measurements Balance at Level 1 Level 2 Level 3 Money market investment $ 21,931 $ 21,931 $ — $ — Available for sale securities 4,794 4,794 — — Contingent consideration (4,705 ) — — (4,705 ) There were no transfers of assets or liabilities between Level 1 and Level 2 during the three and nine months ended September 30, 2016 or the year ended December 31, 2015 . In determining the fair value of the contingent consideration potentially due on the acquisition of CPS, the Company used probability weighted estimates of EBITDA during the earn-out period. The $4.7 million represented management’s best estimate of the liability as of the opening balance sheet date and December 31, 2015, based on a range of outcomes of CPS’s 12 month operating results, from July 1, 2015 to June 30, 2016. During the six months ended June 30, 2016, the Company re-evaluated the contingent consideration arrangement and fully reversed the $4.7 million liability based on CPS’s actual operating results from July 1, 2015 to June 30, 2016. The $4.7 million reversal was recognized as a benefit within Selling, general and administrative expenses, of which $3.7 million was recognized in March 2016 and the remaining $1.0 million was recognized in June 2016. The carrying value of our cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximates their fair values because of the short term nature of these instruments. At September 30, 2016 , the fair value of the outstanding indebtedness under our Revolving Facility, 3.2% Senior Notes, 3.37% Senior Notes, 4.5% Senior Notes and 4.2% Senior Notes, based on quoted market prices and current market rates for debt with similar credit risk and maturity, was approximately $1,143.2 million compared to the carrying value of $1,103.9 million . This fair value measurement is classified as Level 2 within the fair value hierarchy since it is determined based upon significant inputs observable in the market, including interest rates on recent financing transactions to entities with a credit rating similar to ours. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the fourth quarter of 2015, the Company recorded restructuring costs as part of the 2015 restructuring initiatives that support the implementation of key strategic efforts designed to facilitate long-term, sustainable growth through cost reduction actions, primarily consisting of employee reductions. The costs incurred related to these initiatives were included in Restructuring expenses in the Consolidated Statements of Operations while the related accruals were included in Accrued expenses in the Consolidated Balance Sheets. Severance costs primarily consisted of severance benefits through payroll continuation, COBRA subsidies, outplacement services, conditional separation costs and employer tax liabilities. Restructuring accruals of $2.3 million and $6.6 million at September 30, 2016 and December 31, 2015 , respectively, are recorded in Accrued expenses in the Consolidated Balance Sheets. Severance benefits are expected to be paid in the next six months using cash from operations. The changes in the restructuring accrual for the nine months ended September 30, 2016 are as follows: Restructuring Balance at January 1, 2016 $ 6,636 Payments, utilization and other (4,378 ) Balance at September 30, 2016 $ 2,258 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The components of other comprehensive income (loss) are as follows: Three Months Ended Three Months Ended Pre-tax Tax Net of tax Pre-tax Tax Net of tax Cumulative translation adjustment $ 4,611 $ — $ 4,611 $ (21,661 ) $ — $ (21,661 ) Pension and other postretirement adjustments 915 (321 ) 594 1,215 (397 ) 818 Reclassification adjustments for derivatives 1,701 (619 ) 1,082 1,748 (634 ) 1,114 Total other comprehensive income (loss) $ 7,227 $ (940 ) $ 6,287 $ (18,698 ) $ (1,031 ) $ (19,729 ) Nine Months Ended Nine Months Ended Pre-tax Tax Net of tax Pre-tax Tax Net of tax Cumulative translation adjustment $ (6,215 ) $ — $ (6,215 ) $ (54,555 ) $ — $ (54,555 ) Pension and other postretirement adjustments 2,820 (964 ) 1,856 3,605 (1,187 ) 2,418 Reclassification adjustments for derivatives 5,144 (1,872 ) 3,272 5,287 (1,917 ) 3,370 Total other comprehensive income (loss) $ 1,749 $ (2,836 ) $ (1,087 ) $ (45,663 ) $ (3,104 ) $ (48,767 ) The following table summarizes the amounts reclassified from accumulated other comprehensive income to net income during the three and nine months ended September 30, 2016 and 2015 : Three Months Ended Nine Months Ended 2016 2015 2016 2015 Pension and other postretirement plans Amortization of service cost $ 915 $ 1,215 $ 2,820 $ 3,605 Total before tax 915 1,215 2,820 3,605 Provision for income taxes (321 ) (397 ) (964 ) (1,187 ) Total net of tax $ 594 $ 818 $ 1,856 $ 2,418 Derivatives Reclassification adjustments $ 1,701 $ 1,748 $ 5,144 $ 5,287 Total before tax 1,701 1,748 5,144 5,287 Provision for income taxes (619 ) (634 ) (1,872 ) (1,917 ) Total net of tax $ 1,082 $ 1,114 $ 3,272 $ 3,370 The Company recognizes net periodic benefit cost in both Selling, general and administrative expenses and Cost of sales, depending on the functional area of the underlying employees included in the plans. |
Common and Preferred Stock
Common and Preferred Stock | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Common and Preferred Stock | Common and Preferred Stock On December 1, 2015 , the Company’s Board of Directors approved a $300.0 million increase in the authorized level for repurchases of common stock. Repurchases will be funded with future cash flow generation or borrowings available under the Revolving Facility. During the nine months ended September 30, 2016 , the Company purchased a total of 739 thousand shares at a cost of $55.0 million . During the nine months ended September 30, 2015 , the Company purchased 2.4 million shares at a cost of $179.4 million , of which $4.3 million was settled in October 2015 . As of September 30, 2016 , the amount of share repurchase authorization remaining is $580.0 million . At September 30, 2016 and December 31, 2015 , the Company had 150 million shares of authorized common stock, with a par value of $.01 per share, and 5 million shares of authorized preferred stock, with a par value of $.01 per share. No preferred stock was outstanding at September 30, 2016 or December 31, 2015 . |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation Stock Options Weighted average option fair values and assumptions for the periods specified are disclosed below. The fair value of each option grant was estimated on the date of the grant using the Binomial lattice option pricing model. Three Months Ended Nine Months Ended 2016 2015 2016 2015 Weighted average fair value of option grants $21.88 $19.98 $18.47 $20.34 Dividend yield 1.53% 1.65% 1.69% 1.44% Volatility 29.60% 29.64% 29.71% 29.91% Risk-free forward interest rate 0.51% - 2.01% 0.29% - 3.37% 0.53% - 2.50% 0.24% - 2.82% Expected life (in years) 5.91 6.16 5.91 5.93 Total compensation cost for stock options is as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Cost of goods sold $ 92 $ 91 $ 354 $ 441 Selling, general and administrative expenses 1,278 1,297 5,084 4,987 Total expense before income taxes 1,370 1,388 5,438 5,428 Income tax benefit (441 ) (440 ) (1,727 ) (1,709 ) Total expense after income taxes $ 929 $ 948 $ 3,711 $ 3,719 A summary of the Company’s stock option activity as of September 30, 2016 , and changes during the nine months ended September 30, 2016 , are presented in the following table: Stock Options Shares Weighted Average Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2016 2,266,433 $ 54.05 6.58 $ 51,918,028 Granted 558,420 75.01 Exercised (526,918 ) 43.52 Forfeited (162,969 ) 72.69 Outstanding at September 30, 2016 2,134,966 $ 60.71 6.95 $ 70,154,123 Vested and expected to vest as of September 30, 2016 2,013,213 $ 59.83 6.84 $ 67,927,238 Exercisable at September 30, 2016 1,092,881 $ 48.34 5.40 $ 49,426,856 Restricted Stock Restricted stock awards generally cliff vest after three years for employees and non-employee directors. Unvested restricted stock carries dividend and voting rights and the sale of the shares is restricted prior to the date of vesting. A summary of the Company’s restricted stock activity as of September 30, 2016 , and changes during the nine months ended September 30, 2016 , are presented as follows: Restricted Stock Shares Weighted-Average Unvested at January 1, 2016 272,755 $ 65.90 Granted 75,640 78.66 Vested (104,427 ) 51.73 Forfeited (25,440 ) 74.54 Unvested at September 30, 2016 218,528 $ 76.08 Dividends are paid on restricted stock awards whose fair value is equal to the market price of the Company’s stock at the date of the grant. Total compensation cost for restricted shares is as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Cost of goods sold $ 64 $ 9 $ 325 $ 245 Selling, general and administrative expenses 751 449 3,249 3,962 Total expense before income taxes 815 458 3,574 4,207 Income tax benefit (216 ) (184 ) (1,053 ) (1,239 ) Total expense after income taxes $ 599 $ 274 $ 2,521 $ 2,968 Cash-Settled Restricted Stock The Company also maintains a cash-settled share based compensation plan for certain employees. Cash-settled restricted stock awards generally cliff vest after three years. A summary of the Company’s unvested cash-settled restricted stock activity as of September 30, 2016 , and changes during the nine months ended September 30, 2016 , are presented in the following table: Cash-Settled Restricted Stock Shares Weighted-Average Unvested at January 1, 2016 110,860 $ 76.61 Granted 39,450 93.57 Vested (35,960 ) 72.54 Forfeited (9,465 ) 93.57 Unvested at September 30, 2016 104,885 $ 93.57 Dividend equivalents are paid on certain cash-settled restricted stock awards. Total compensation cost for cash-settled restricted stock is as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Cost of goods sold $ 307 $ 29 $ 627 $ 533 Selling, general and administrative expenses 881 164 1,842 1,089 Total expense before income taxes 1,188 193 2,469 1,622 Income tax benefit (170 ) (28 ) (354 ) (251 ) Total expense after income taxes $ 1,018 $ 165 $ 2,115 $ 1,371 Performance Share Units Weighted average performance share unit fair values and assumptions for the period specified are disclosed below. The performance share units are market condition awards and have been assessed at fair value on the date of grant using a Monte Carlo simulation model. Three and Nine Months Ended September 30, 2016 2015 Weighted average fair value of performance share units $111.42 $95.07 Dividend yield —% —% Volatility 17.99% 19.14% Risk-free forward interest rate 0.89% 1.01% Expected life (in years) 2.86 2.86 A summary of the Company’s performance share unit activity as of September 30, 2016 , and changes during the nine months ended September 30, 2016 , are presented in the following table: Performance Share Units Shares Weighted-Average Unvested at January 1, 2016 146,275 $ 94.80 Granted 85,130 111.42 Vested — — Forfeited (31,025 ) 99.52 Unvested at September 30, 2016 200,380 $ 101.13 The Company granted 43,800 performance share units in February 2013, which vested on December 31, 2015. Based on the Company’s relative total shareholder return rank during the three year period ended December 31, 2015, the Company achieved a 200% payout that resulted in 87,600 shares issued in February 2016. Total compensation cost for performance share units is as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Cost of goods sold $ — $ — $ — $ — Selling, general and administrative expenses 348 953 3,844 3,478 Total expense before income taxes 348 953 3,844 3,478 Income tax benefit (98 ) (323 ) (1,266 ) (1,161 ) Total expense after income taxes $ 250 $ 630 $ 2,578 $ 2,317 The Company’s policy is to recognize compensation cost on a straight-line basis, assuming forfeitures, over the requisite service period for the entire award. Classification of stock compensation cost within the Consolidated Statements of Operations is consistent with classification of cash compensation for the same employees. As of September 30, 2016 , there was $11.9 million of total unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 1.5 years, $10 million of total unrecognized compensation cost related to restricted stock that is expected to be recognized over a weighted-average period of 1.1 years, and $7.6 million of total unrecognized compensation cost related to performance share units that is expected to be recognized over a weighted-average period of 1.1 years. |
Retirement Benefits
Retirement Benefits | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Benefits | Retirement Benefits The Company sponsors several qualified and nonqualified defined benefit and defined contribution pension plans and other postretirement plans for its employees. The following tables provide the components of net periodic benefit cost for its major defined benefit plans and its other postretirement plans. Pension Benefits Three Months Ended September 30, 2016 2015 U.S. Non-U.S. U.S. Non-U.S. Service cost $ 181 $ 331 $ 214 $ 377 Interest cost 788 344 956 437 Expected return on plan assets (1,233 ) (203 ) (1,186 ) (282 ) Net amortization 766 241 906 405 Net periodic benefit cost $ 502 $ 713 $ 890 $ 937 Pension Benefits Nine Months Ended September 30, 2016 2015 U.S. Non-U.S. U.S. Non-U.S. Service cost $ 769 $ 934 $ 965 $ 1,134 Interest cost 2,282 1,049 2,831 1,305 Expected return on plan assets (3,583 ) (642 ) (3,682 ) (838 ) Net amortization 2,420 722 2,585 1,334 Net periodic benefit cost $ 1,888 $ 2,063 $ 2,699 $ 2,935 Other Postretirement Benefits Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Service cost $ 181 $ 168 $ 494 $ 506 Interest cost 224 208 622 626 Net amortization (154 ) (95 ) (462 ) (314 ) Net periodic benefit cost $ 251 $ 281 $ 654 $ 818 The Company previously disclosed in its financial statements for the year ended December 31, 2015 , that it expected to contribute approximately $6.1 million to its defined benefit plans and $0.9 million to its other postretirement benefit plans in 2016 . As of September 30, 2016 , the Company now expects to contribute $4.5 million to its defined benefit plans and $0.9 million to its other postretirement benefit plans in 2016 . The Company contributed a total of $4.5 million during the first nine months of 2016 to fund these plans. During the third quarter of 2016, the Company implemented a program offering certain former U.S. employees with a vested pension benefit an option to take a one-time lump sum distribution rather than future monthly pension payments. The Company expects to make approximately $8.0 million to $10.0 million in payments from the plans in connection with this action and to incur an estimated pre-tax settlement loss of $3.0 million to $6.0 million in the fourth quarter of 2016. However, since the final result of the offering is presently unknown, these amounts are subject to change. |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings The Company is party to various legal proceedings arising in the ordinary course of business, none of which are expected to have a material impact on its financial condition, results of operations or cash flows. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s provision for income taxes is based upon estimated annual tax rates for the year applied to federal, state and foreign income. The provision for income taxes decreased to $29.4 million in the third quarter of 2016 from $32.8 million in the same period of 2015 . The effective tax rate increased to 29.6% for the third quarter of 2016 compared to 29.2% in the same period of 2015 due to the incurrence of an additional $5.2 million of foreign withholding taxes, tax expense as a result of the divestiture of the Hydra-Stop product line and the prior year divestiture of the Ismatec product line. These unfavorable items were offset by tax benefits as a result of the divestiture of Melles Griot KK, certain return-to-provision adjustments, the early adoption of ASU 2016-09 and the related tax effects of share based payments now recognized in income, the enactment of the Protecting Americans from Tax Hikes Act of 2015 on December 18, 2015 which, beginning in 2015, permanently extended the U.S. R&D credit, as well as the mix of global pre-tax income among jurisdictions. The provision for income taxes decreased to $82.0 million in the nine months ended September 30, 2016 from $88.6 million in the same period of 2015 . The effective tax rate decreased to 27.7% for the nine months ended September 30, 2016 compared to 29.2% in the same period of 2015 due tax benefits as a result of the divestiture of Melles Griot KK, certain return-to-provision adjustments, the early adoption of ASU 2016-09 and the related tax effects of share based payments now recognized in income, the enactment of the Protecting Americans from Tax Hikes Act of 2015 on December 18, 2015 which, beginning in 2015, permanently extended the U.S. R&D credit, as well as the mix of global pre-tax income among jurisdictions. These favorable items were offset by the incurrence of additional $5.2 million of foreign withholding taxes and tax expense as a result of the divestiture of the Hydra-Stop product line and the prior year divestiture of the Ismatec product line. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. Due to the potential for resolution of federal, state and foreign examinations, and the expiration of various statutes of limitation, it is reasonably possible that the Company’s gross unrecognized tax benefits balance may change within the next twelve months by a range of zero to $2.7 million . |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 10, 2016, the Company entered into a definitive agreement and completed the sale of its IETG and 40Seven subsidiaries, based in Leeds, United Kingdom for cash consideration of $2.8 million , subject to customary post-closing adjustments. The results of the subsidiaries were reported within the Fluid & Metering Technologies segment and generated revenues of $12 million in 2015. |
Basis of Presentation and Sig29
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | Recently Adopted Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company elected to early adopt this standard in the quarter ended March 31, 2016. The Company applied this standard prospectively and thus, prior periods have not been adjusted. The impact of the adoption resulted in the following: • The Company recorded a tax benefit of $1.2 million and $5.4 million within Provision for income taxes for the three and nine months ended September 30, 2016 , respectively, related to the excess tax benefit on stock options, restricted stock and performance share units. Prior to adoption this amount would have been recorded as a reduction of additional paid-in capital. This change could create volatility in the Company’s effective tax rate. • The Company elected not to change our policy on accounting for forfeitures and continued to estimate the total number of awards for which the requisite service period will not be rendered. • The Company no longer reclassifies the excess tax benefit from operating activities to financing activities in the statement of cash flows. • The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the three and nine months ended September 30, 2016 . This increased our diluted weighted average common shares outstanding by 198 thousand and 174 thousand shares for the three and nine months ended September 30, 2016 , respectively. Recently Issued Accounting Standards In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force). This ASU addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This standard is effective for fiscal years beginning after December 15, 2017. The Company does not believe the guidance will have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which introduces a new lessee model that will require most leases to be recorded on the balance sheet and eliminates the required use of bright line tests in current U.S. GAAP for determining lease classification. This standard is effective for fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact of the new guidance on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which introduces a new five-step revenue recognition model. Under ASU 2014-09, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This standard is effective for fiscal years beginning after December 15, 2017, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption. The FASB has also issued the following standards which clarify ASU 2014-09 and have the same effective date as the original standard: ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ; ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing ; and ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients . The Company is currently evaluating the impact of the new guidance on our consolidated financial statements and has not yet determined the method by which we will adopt the standard in 2018. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations and Dispositions [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary allocation of the acquisition costs to the assets acquired and liabilities assumed, based on their estimated fair values, are as follows: Akron Brass AWG Fittings SFC Koenig Total Current assets, net of cash acquired $ 44,126 $ 18,317 $ 35,568 $ 98,011 Property, plant and equipment 12,195 6,847 6,566 25,608 Goodwill 125,090 22,733 132,381 280,204 Intangible assets 90,400 10,279 114,737 215,416 Deferred income taxes — 2,524 — 2,524 Total assets acquired 271,811 60,700 289,252 621,763 Current liabilities (7,081 ) (4,762 ) (12,858 ) (24,701 ) Deferred income taxes (36,886 ) — (29,809 ) (66,695 ) Other noncurrent liabilities (6,445 ) (8,444 ) (5,477 ) (20,366 ) Net assets acquired $ 221,399 $ 47,494 $ 241,108 $ 510,001 |
Schedule of Finite-Lived Intangible Assets Acquired | The acquired intangible assets and weighted average amortization periods are as follows: Total Weighted Average Life Trade names $ 14,423 15 Customer relationships 130,598 13 Unpatented technology 41,595 13 Amortized intangible assets 186,616 Indefinite lived - Akron Brass trade name 28,800 Total acquired intangible assets $ 215,416 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Information On Company's Business Segments | Information on the Company’s business segments is presented below, based on the nature of products and services offered. The Company evaluates performance based on several factors, of which operating income is the primary financial measure. Intersegment sales are accounted for as if the sales were to third parties. Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net sales Fluid & Metering Technologies External customers $ 208,164 $ 211,971 $ 641,508 $ 644,886 Intersegment sales 171 130 480 756 Total group sales 208,335 212,101 641,988 645,642 Health & Science Technologies External customers 183,453 184,816 556,157 550,612 Intersegment sales 111 77 318 1,806 Total group sales 183,564 184,893 556,475 552,418 Fire & Safety/Diversified Products External customers 138,739 107,004 384,959 325,372 Intersegment sales 28 5 37 200 Total group sales 138,767 107,009 384,996 325,572 Intersegment elimination (310 ) (212 ) (835 ) (2,762 ) Total net sales $ 530,356 $ 503,791 $ 1,582,624 $ 1,520,870 Operating income Fluid & Metering Technologies $ 55,600 $ 46,910 $ 160,866 $ 154,665 Health & Science Technologies 37,204 38,371 119,028 117,888 Fire & Safety/Diversified Products 32,189 32,536 91,709 91,180 Corporate office income (expense) and other (1) (16,136 ) 3,996 (47,213 ) (30,254 ) Total operating income 108,857 121,813 324,390 333,479 Interest expense 11,913 10,229 33,607 31,410 Other (income) expense - net (2,364 ) (693 ) (4,982 ) (1,589 ) Income before income taxes $ 99,308 $ 112,277 $ 295,765 $ 303,658 (1) 2016 includes a $2.1 million loss on sale of businesses and 2015 includes an $18.1 million gain on the sale of business. September 30, December 31, Assets Fluid & Metering Technologies $ 1,084,118 $ 1,125,266 Health & Science Technologies 1,323,130 1,108,302 Fire & Safety/Diversified Products 741,427 448,867 Corporate office 113,789 123,008 Total assets $ 3,262,464 $ 2,805,443 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Basic Weighted Average Shares Reconciles to Diluted Weighted Average Shares | Basic weighted average shares reconciles to diluted weighted average shares as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Basic weighted average common shares outstanding 75,819 76,831 75,753 77,431 Dilutive effect of stock options, restricted stock, performance share units and DCUs 1,061 815 989 835 Diluted weighted average common shares outstanding 76,880 77,646 76,742 78,266 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Components Of Inventories | The components of inventories as of September 30, 2016 and December 31, 2015 were: September 30, December 31, Raw materials and component parts $ 166,205 $ 141,671 Work in process 37,001 32,387 Finished goods 72,807 65,066 Total $ 276,013 $ 239,124 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the nine months ended September 30, 2016 , by reportable business segment, were as follows: Fluid & Metering Technologies Health & Science Technologies Fire & Safety/ Diversified Products Total Balance at December 31, 2015 $ 584,770 $ 590,605 $ 221,154 $ 1,396,529 Foreign currency translation 3,151 (4,820 ) 1,638 (31 ) Acquisitions — 132,381 147,823 280,204 Disposition of businesses (3,594 ) (9,140 ) — (12,734 ) Acquisition adjustments (1,623 ) 547 — (1,076 ) Balance at September 30, 2016 $ 582,704 $ 709,573 $ 370,615 $ 1,662,892 |
Schedule of Gross Carrying Value and Accumulated Amortization For Each Major Class of Intangible Asset | The following table provides the gross carrying value and accumulated amortization for each major class of intangible assets at September 30, 2016 and December 31, 2015 : At September 30, 2016 At December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Weighted Average Life Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets: Patents $ 10,180 $ (6,772 ) $ 3,408 11 $ 10,202 $ (6,175 ) $ 4,027 Trade names 118,983 (42,190 ) 76,793 16 110,658 (38,696 ) 71,962 Customer relationships 384,141 (162,524 ) 221,617 12 257,071 (144,134 ) 112,937 Non-compete agreements — — — 3 794 (775 ) 19 Unpatented technology 117,455 (48,281 ) 69,174 11 78,562 (42,745 ) 35,817 Other 6,599 (6,061 ) 538 10 6,554 (5,579 ) 975 Total amortized intangible assets 637,358 (265,828 ) 371,530 463,841 (238,104 ) 225,737 Indefinite lived intangible assets: Banjo trade name 62,100 — 62,100 62,100 — 62,100 Akron Brass trade name 28,800 — 28,800 — — — Total intangible assets $ 728,258 $ (265,828 ) $ 462,430 $ 525,941 $ (238,104 ) $ 287,837 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses | The components of accrued expenses as of September 30, 2016 and December 31, 2015 were: September 30, December 31, Payroll and related items $ 62,703 $ 67,209 Management incentive compensation 13,755 12,599 Income taxes payable 11,409 3,836 Insurance 8,979 9,505 Warranty 6,036 7,936 Deferred revenue 11,200 9,885 Restructuring 2,258 6,636 Liability for uncertain tax positions 2,711 3,498 Accrued interest 11,518 1,230 Contingent consideration for acquisition — 4,705 Other 30,247 26,633 Total accrued expenses $ 160,816 $ 153,672 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Noncurrent Liabilities | The components of other noncurrent liabilities as of September 30, 2016 and December 31, 2015 were: September 30, December 31, Pension and retiree medical obligations $ 98,422 $ 76,190 Liability for uncertain tax positions 3,030 4,252 Deferred revenue 1,828 3,763 Other 16,795 18,160 Total other noncurrent liabilities $ 120,075 $ 102,365 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | Borrowings at September 30, 2016 and December 31, 2015 consisted of the following: September 30, December 31, Revolving Facility $ 255,130 $ 195,000 4.5% Senior Notes, due December 2020 300,000 300,000 4.2% Senior Notes, due December 2021 350,000 350,000 3.2% Senior Notes, due June 2023 100,000 — 3.37% Senior Notes, due June 2025 100,000 — Other borrowings 1,562 2,436 Total borrowings 1,106,692 847,436 Less current portion 1,171 1,087 Less deferred debt issuance costs 4,664 5,203 Less unaccreted debt discount 1,256 1,439 Total long-term borrowings $ 1,099,601 $ 839,707 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Company's Financial Assets and (Liabilities) at Fair Value on Recurring Basis | The following table summarizes the basis used to measure the Company’s financial assets at fair value on a recurring basis in the balance sheets at September 30, 2016 and December 31, 2015 : Basis of Fair Value Measurements Balance at Level 1 Level 2 Level 3 Money market investment $ 18,210 $ 18,210 $ — $ — Available for sale securities 5,705 5,705 — — Basis of Fair Value Measurements Balance at Level 1 Level 2 Level 3 Money market investment $ 21,931 $ 21,931 $ — $ — Available for sale securities 4,794 4,794 — — Contingent consideration (4,705 ) — — (4,705 ) |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve | The changes in the restructuring accrual for the nine months ended September 30, 2016 are as follows: Restructuring Balance at January 1, 2016 $ 6,636 Payments, utilization and other (4,378 ) Balance at September 30, 2016 $ 2,258 |
Other Comprehensive Income (L40
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of other comprehensive income (loss) are as follows: Three Months Ended Three Months Ended Pre-tax Tax Net of tax Pre-tax Tax Net of tax Cumulative translation adjustment $ 4,611 $ — $ 4,611 $ (21,661 ) $ — $ (21,661 ) Pension and other postretirement adjustments 915 (321 ) 594 1,215 (397 ) 818 Reclassification adjustments for derivatives 1,701 (619 ) 1,082 1,748 (634 ) 1,114 Total other comprehensive income (loss) $ 7,227 $ (940 ) $ 6,287 $ (18,698 ) $ (1,031 ) $ (19,729 ) Nine Months Ended Nine Months Ended Pre-tax Tax Net of tax Pre-tax Tax Net of tax Cumulative translation adjustment $ (6,215 ) $ — $ (6,215 ) $ (54,555 ) $ — $ (54,555 ) Pension and other postretirement adjustments 2,820 (964 ) 1,856 3,605 (1,187 ) 2,418 Reclassification adjustments for derivatives 5,144 (1,872 ) 3,272 5,287 (1,917 ) 3,370 Total other comprehensive income (loss) $ 1,749 $ (2,836 ) $ (1,087 ) $ (45,663 ) $ (3,104 ) $ (48,767 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the amounts reclassified from accumulated other comprehensive income to net income during the three and nine months ended September 30, 2016 and 2015 : Three Months Ended Nine Months Ended 2016 2015 2016 2015 Pension and other postretirement plans Amortization of service cost $ 915 $ 1,215 $ 2,820 $ 3,605 Total before tax 915 1,215 2,820 3,605 Provision for income taxes (321 ) (397 ) (964 ) (1,187 ) Total net of tax $ 594 $ 818 $ 1,856 $ 2,418 Derivatives Reclassification adjustments $ 1,701 $ 1,748 $ 5,144 $ 5,287 Total before tax 1,701 1,748 5,144 5,287 Provision for income taxes (619 ) (634 ) (1,872 ) (1,917 ) Total net of tax $ 1,082 $ 1,114 $ 3,272 $ 3,370 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Weighted Average Option Fair Values and Assumptions | Weighted average option fair values and assumptions for the periods specified are disclosed below. The fair value of each option grant was estimated on the date of the grant using the Binomial lattice option pricing model. Three Months Ended Nine Months Ended 2016 2015 2016 2015 Weighted average fair value of option grants $21.88 $19.98 $18.47 $20.34 Dividend yield 1.53% 1.65% 1.69% 1.44% Volatility 29.60% 29.64% 29.71% 29.91% Risk-free forward interest rate 0.51% - 2.01% 0.29% - 3.37% 0.53% - 2.50% 0.24% - 2.82% Expected life (in years) 5.91 6.16 5.91 5.93 |
Schedule of Compensation Cost for Stock Options | Total compensation cost for stock options is as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Cost of goods sold $ 92 $ 91 $ 354 $ 441 Selling, general and administrative expenses 1,278 1,297 5,084 4,987 Total expense before income taxes 1,370 1,388 5,438 5,428 Income tax benefit (441 ) (440 ) (1,727 ) (1,709 ) Total expense after income taxes $ 929 $ 948 $ 3,711 $ 3,719 |
Schedule of Stock Option Activity | A summary of the Company’s stock option activity as of September 30, 2016 , and changes during the nine months ended September 30, 2016 , are presented in the following table: Stock Options Shares Weighted Average Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2016 2,266,433 $ 54.05 6.58 $ 51,918,028 Granted 558,420 75.01 Exercised (526,918 ) 43.52 Forfeited (162,969 ) 72.69 Outstanding at September 30, 2016 2,134,966 $ 60.71 6.95 $ 70,154,123 Vested and expected to vest as of September 30, 2016 2,013,213 $ 59.83 6.84 $ 67,927,238 Exercisable at September 30, 2016 1,092,881 $ 48.34 5.40 $ 49,426,856 |
Schedule of Restricted Stock Activity | A summary of the Company’s restricted stock activity as of September 30, 2016 , and changes during the nine months ended September 30, 2016 , are presented as follows: Restricted Stock Shares Weighted-Average Unvested at January 1, 2016 272,755 $ 65.90 Granted 75,640 78.66 Vested (104,427 ) 51.73 Forfeited (25,440 ) 74.54 Unvested at September 30, 2016 218,528 $ 76.08 |
Schedule of Compensation Cost for Restricted Stock | Total compensation cost for restricted shares is as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Cost of goods sold $ 64 $ 9 $ 325 $ 245 Selling, general and administrative expenses 751 449 3,249 3,962 Total expense before income taxes 815 458 3,574 4,207 Income tax benefit (216 ) (184 ) (1,053 ) (1,239 ) Total expense after income taxes $ 599 $ 274 $ 2,521 $ 2,968 |
Schedule of Unvested Cash-settled Restricted Stock Activity | A summary of the Company’s unvested cash-settled restricted stock activity as of September 30, 2016 , and changes during the nine months ended September 30, 2016 , are presented in the following table: Cash-Settled Restricted Stock Shares Weighted-Average Unvested at January 1, 2016 110,860 $ 76.61 Granted 39,450 93.57 Vested (35,960 ) 72.54 Forfeited (9,465 ) 93.57 Unvested at September 30, 2016 104,885 $ 93.57 |
Schedule of Compensation Cost for Unvested Cash-settled Restricted Stock | Total compensation cost for cash-settled restricted stock is as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Cost of goods sold $ 307 $ 29 $ 627 $ 533 Selling, general and administrative expenses 881 164 1,842 1,089 Total expense before income taxes 1,188 193 2,469 1,622 Income tax benefit (170 ) (28 ) (354 ) (251 ) Total expense after income taxes $ 1,018 $ 165 $ 2,115 $ 1,371 |
Schedule of Weighted Average Performance Share Units Fair Values and Assumptions | Weighted average performance share unit fair values and assumptions for the period specified are disclosed below. The performance share units are market condition awards and have been assessed at fair value on the date of grant using a Monte Carlo simulation model. Three and Nine Months Ended September 30, 2016 2015 Weighted average fair value of performance share units $111.42 $95.07 Dividend yield —% —% Volatility 17.99% 19.14% Risk-free forward interest rate 0.89% 1.01% Expected life (in years) 2.86 2.86 |
Schedule of Performance Shares Units Activity | A summary of the Company’s performance share unit activity as of September 30, 2016 , and changes during the nine months ended September 30, 2016 , are presented in the following table: Performance Share Units Shares Weighted-Average Unvested at January 1, 2016 146,275 $ 94.80 Granted 85,130 111.42 Vested — — Forfeited (31,025 ) 99.52 Unvested at September 30, 2016 200,380 $ 101.13 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Total compensation cost for performance share units is as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Cost of goods sold $ — $ — $ — $ — Selling, general and administrative expenses 348 953 3,844 3,478 Total expense before income taxes 348 953 3,844 3,478 Income tax benefit (98 ) (323 ) (1,266 ) (1,161 ) Total expense after income taxes $ 250 $ 630 $ 2,578 $ 2,317 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Pension Plans | |
Components of Net Periodic Benefit Cost for Defined Benefit Plans and Other Postretirement Plans | The following tables provide the components of net periodic benefit cost for its major defined benefit plans and its other postretirement plans. Pension Benefits Three Months Ended September 30, 2016 2015 U.S. Non-U.S. U.S. Non-U.S. Service cost $ 181 $ 331 $ 214 $ 377 Interest cost 788 344 956 437 Expected return on plan assets (1,233 ) (203 ) (1,186 ) (282 ) Net amortization 766 241 906 405 Net periodic benefit cost $ 502 $ 713 $ 890 $ 937 Pension Benefits Nine Months Ended September 30, 2016 2015 U.S. Non-U.S. U.S. Non-U.S. Service cost $ 769 $ 934 $ 965 $ 1,134 Interest cost 2,282 1,049 2,831 1,305 Expected return on plan assets (3,583 ) (642 ) (3,682 ) (838 ) Net amortization 2,420 722 2,585 1,334 Net periodic benefit cost $ 1,888 $ 2,063 $ 2,699 $ 2,935 |
Other Postretirement Benefit Plans | |
Components of Net Periodic Benefit Cost for Defined Benefit Plans and Other Postretirement Plans | Other Postretirement Benefits Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Service cost $ 181 $ 168 $ 494 $ 506 Interest cost 224 208 622 626 Net amortization (154 ) (95 ) (462 ) (314 ) Net periodic benefit cost $ 251 $ 281 $ 654 $ 818 |
Basis of Presentation and Sig43
Basis of Presentation and Significant Accounting Policies Basis of Presentation and Significant Accounting Policies (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Effective income tax rate reconciliation, excess tax benefit, amount | $ 1.2 | $ 5.4 | ||
Increased in diluted weighted average common shares outstanding (in shares) | 1,061 | 815 | 989 | 835 |
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increased in diluted weighted average common shares outstanding (in shares) | 198 | 174 |
Acquisitions and Divestitures44
Acquisitions and Divestitures (Additional Information - Acquisitions) (Detail) $ in Thousands, € in Millions | Aug. 31, 2016EUR (€) | Aug. 31, 2016USD ($) | Jul. 01, 2016EUR (€) | Jul. 01, 2016USD ($) | Mar. 16, 2016USD ($) | Dec. 01, 2015USD ($) | Jul. 01, 2015USD ($) | Jun. 10, 2015EUR (€) | Jun. 10, 2015USD ($) | May 29, 2015EUR (€) | May 29, 2015USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||||||||||||||
Goodwill | $ 280,204 | $ 1,662,892 | $ 1,662,892 | $ 1,396,529 | ||||||||||||||||
Intangible assets | 215,416 | |||||||||||||||||||
Contingent consideration for acquisition | 0 | $ 4,705 | ||||||||||||||||||
Akron Brass | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Revenues | 120,000 | |||||||||||||||||||
Aggregate purchase price, cash paid | $ 221,400 | |||||||||||||||||||
Goodwill | 125,090 | |||||||||||||||||||
Intangible assets | 90,400 | |||||||||||||||||||
Indefinite-lived intangible assets acquired | $ 28,800 | |||||||||||||||||||
AWG Fittings GmbH (AWG) | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Revenues | 40,000 | |||||||||||||||||||
Aggregate purchase price, cash paid | € 42.8 | $ 47,500 | ||||||||||||||||||
Goodwill | 22,733 | |||||||||||||||||||
Intangible assets | $ 10,279 | |||||||||||||||||||
SFC-Koenig AG (SFC) | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Revenues | $ 63,000 | |||||||||||||||||||
Aggregate purchase price, cash paid | € 215.9 | 241,100 | ||||||||||||||||||
Goodwill | 132,381 | |||||||||||||||||||
Intangible assets | $ 114,737 | |||||||||||||||||||
Novotema, SpA | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Aggregate purchase price, cash paid | € 56 | $ 61,100 | ||||||||||||||||||
Goodwill | 34,300 | |||||||||||||||||||
Intangible assets | $ 20,000 | |||||||||||||||||||
Alfa Valvole, s.r.l | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Aggregate purchase price, cash paid | € 99.8 | $ 112,600 | ||||||||||||||||||
Goodwill | 69,600 | |||||||||||||||||||
Intangible assets | $ 32,100 | |||||||||||||||||||
CIDRA Precision Services, LLC | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Aggregate purchase price, cash paid | $ 19,500 | |||||||||||||||||||
Goodwill | 9,700 | |||||||||||||||||||
Intangible assets | 12,300 | |||||||||||||||||||
Consideration transferred | 24,200 | |||||||||||||||||||
Eran-out | 4,700 | |||||||||||||||||||
CIDRA Precision Services, LLC | Minimum | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Contingent consideration for acquisition | 0 | |||||||||||||||||||
CIDRA Precision Services, LLC | Maximum | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Contingent consideration for acquisition | $ 5,500 | |||||||||||||||||||
Complementary Product Line | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Goodwill | $ 700 | |||||||||||||||||||
Consideration transferred | $ 1,900 | |||||||||||||||||||
Selling, general and administrative expenses | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Acquisition-related transaction costs | 1,600 | $ 900 | 4,000 | 2,100 | ||||||||||||||||
Selling, general and administrative expenses | CIDRA Precision Services, LLC | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Change in amount of contingent consideration, liability | $ 1,000 | $ 3,700 | $ 4,700 | $ 4,700 | ||||||||||||||||
Cost of goods sold | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Fair value of inventory charges associated with acquisitions | $ 4,600 | $ 2,700 | $ 10,400 | $ 3,400 |
Acquisitions and Divestitures45
Acquisitions and Divestitures (Allocation of Acquisition Costs to Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Aug. 31, 2016 | Jul. 01, 2016 | Mar. 16, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||
Current assets, net of cash acquired | $ 98,011 | ||||
Property, plant and equipment | 25,608 | ||||
Goodwill | $ 1,662,892 | 280,204 | $ 1,396,529 | ||
Intangible assets | 215,416 | ||||
Deferred income taxes | 2,524 | ||||
Total assets acquired | 621,763 | ||||
Current liabilities | (24,701) | ||||
Deferred tax liability | (66,695) | ||||
Other noncurrent liabilities | (20,366) | ||||
Net assets acquired | 510,001 | ||||
Akron Brass | |||||
Business Acquisition [Line Items] | |||||
Current assets, net of cash acquired | $ 44,126 | ||||
Property, plant and equipment | 12,195 | ||||
Goodwill | 125,090 | ||||
Intangible assets | 90,400 | ||||
Deferred income taxes | 0 | ||||
Total assets acquired | 271,811 | ||||
Current liabilities | (7,081) | ||||
Deferred tax liability | (36,886) | ||||
Other noncurrent liabilities | (6,445) | ||||
Net assets acquired | $ 221,399 | ||||
AWG Fittings GmbH (AWG) | |||||
Business Acquisition [Line Items] | |||||
Current assets, net of cash acquired | $ 18,317 | ||||
Property, plant and equipment | 6,847 | ||||
Goodwill | 22,733 | ||||
Intangible assets | 10,279 | ||||
Deferred income taxes | 2,524 | ||||
Total assets acquired | 60,700 | ||||
Current liabilities | (4,762) | ||||
Deferred tax liability | 0 | ||||
Other noncurrent liabilities | (8,444) | ||||
Net assets acquired | $ 47,494 | ||||
SFC-Koenig AG (SFC) | |||||
Business Acquisition [Line Items] | |||||
Current assets, net of cash acquired | 35,568 | ||||
Property, plant and equipment | 6,566 | ||||
Goodwill | 132,381 | ||||
Intangible assets | 114,737 | ||||
Deferred income taxes | 0 | ||||
Total assets acquired | 289,252 | ||||
Current liabilities | (12,858) | ||||
Deferred tax liability | (29,809) | ||||
Other noncurrent liabilities | (5,477) | ||||
Net assets acquired | $ 241,108 |
Acquisitions and Divestitures46
Acquisitions and Divestitures (Acquired Intangible Assets and Weighted Average Amortization Periods) (Details) - Akron Brass $ in Thousands | Mar. 16, 2016USD ($) |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Indefinite lived - Akron Brass trade name | $ 28,800 |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired intangible assets, Total | 186,616 |
Total acquired intangible assets | 215,416 |
Trade names | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired intangible assets, Total | $ 14,423 |
Acquired intangible assets, Weighted Average Life | 15 years |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired intangible assets, Total | $ 130,598 |
Acquired intangible assets, Weighted Average Life | 13 years |
Unpatented technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired intangible assets, Total | $ 41,595 |
Acquired intangible assets, Weighted Average Life | 13 years |
Acquisitions and Divestitures47
Acquisitions and Divestitures (Additional Information - Divestitures) (Details) - USD ($) $ in Thousands | Sep. 09, 2016 | Jul. 29, 2016 | Jul. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | Sep. 09, 2016 | Sep. 30, 2016 | Sep. 30, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Gain (loss) on sale of businesses | $ (2,067) | $ 18,070 | $ (2,067) | $ 18,070 | ||||||
Revenue | $ 530,356 | $ 503,791 | $ 1,582,624 | $ 1,520,870 | ||||||
Disposed of by Sale | Hydra-Stop Product Line | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from sale of business | $ 15,000 | |||||||||
Gain (loss) on sale of businesses | 5,800 | |||||||||
Additional proceeds from sale of business | $ 2,000 | |||||||||
Revenue | $ 7,500 | |||||||||
Disposed of by Sale | Melles Griot KK Subsidiary | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from sale of business | $ 17,500 | |||||||||
Gain (loss) on sale of businesses | $ (7,900) | |||||||||
Revenue | $ 13,100 | |||||||||
Disposed of by Sale | Ismatec Product Line | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from sale of business | $ 27,700 | |||||||||
Gain (loss) on sale of businesses | $ 18,100 | |||||||||
Revenue | $ 5,300 |
Business Segments (Additional I
Business Segments (Additional Information) (Detail) | 9 Months Ended |
Sep. 30, 2016segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 3 |
Business Segments (Schedule of
Business Segments (Schedule of Information on Company's Business Segments) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 530,356 | $ 503,791 | $ 1,582,624 | $ 1,520,870 | |
Operating income | 108,857 | 121,813 | 324,390 | 333,479 | |
Interest expense | 11,913 | 10,229 | 33,607 | 31,410 | |
Other (income) expense - net | (2,364) | (693) | (4,982) | (1,589) | |
Income before income taxes | 99,308 | 112,277 | 295,765 | 303,658 | |
Loss (gain) on sale of businesses | 2,067 | (18,070) | 2,067 | (18,070) | |
Total assets | 3,262,464 | 3,262,464 | $ 2,805,443 | ||
Intersegment elimination | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (310) | (212) | (835) | (2,762) | |
Corporate office income (expense) and other | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | (16,136) | 3,996 | (47,213) | (30,254) | |
Total assets | 113,789 | 113,789 | 123,008 | ||
Fluid & Metering Technologies | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 208,164 | 211,971 | 641,508 | 644,886 | |
Operating income | 55,600 | 46,910 | 160,866 | 154,665 | |
Fluid & Metering Technologies | Intersegment elimination | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 171 | 130 | 480 | 756 | |
Fluid & Metering Technologies | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 208,335 | 212,101 | 641,988 | 645,642 | |
Total assets | 1,084,118 | 1,084,118 | 1,125,266 | ||
Health & Science Technologies | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 183,453 | 184,816 | 556,157 | 550,612 | |
Operating income | 37,204 | 38,371 | 119,028 | 117,888 | |
Health & Science Technologies | Intersegment elimination | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 111 | 77 | 318 | 1,806 | |
Health & Science Technologies | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 183,564 | 184,893 | 556,475 | 552,418 | |
Total assets | 1,323,130 | 1,323,130 | 1,108,302 | ||
Fire & Safety/Diversified Products | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 138,739 | 107,004 | 384,959 | 325,372 | |
Operating income | 32,189 | 32,536 | 91,709 | 91,180 | |
Fire & Safety/Diversified Products | Intersegment elimination | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 28 | 5 | 37 | 200 | |
Fire & Safety/Diversified Products | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 138,767 | $ 107,009 | 384,996 | $ 325,572 | |
Total assets | $ 741,427 | $ 741,427 | $ 448,867 |
Earnings Per Common Share (Addi
Earnings Per Common Share (Additional Information) (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Option to purchase common stock shares not included in the computation of diluted EPS (in shares) | 0.1 | 0.9 | 0.9 | 0.5 |
Earnings Per Common Share (Sche
Earnings Per Common Share (Schedule of Basic Weighted Average Shares Reconciles to Diluted Weighted Average Shares Outstanding) (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accounting Policies [Abstract] | ||||
Basic weighted average common shares outstanding (in shares) | 75,819 | 76,831 | 75,753 | 77,431 |
Dilutive effect of stock options, restricted stock, performance share units and DCUs | 1,061 | 815 | 989 | 835 |
Diluted weighted average common shares outstanding (in shares) | 76,880 | 77,646 | 76,742 | 78,266 |
Inventories (Components of Inve
Inventories (Components of Inventories) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials and component parts | $ 166,205 | $ 141,671 |
Work in process | 37,001 | 32,387 |
Finished goods | 72,807 | 65,066 |
Total | $ 276,013 | $ 239,124 |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets (Schedule of Changes in Carrying Amount of Goodwill) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill [Roll Forward] | |
Balance at December 31, 2015 | $ 1,396,529 |
Foreign currency translation | (31) |
Acquisitions | 280,204 |
Disposition of businesses | (12,734) |
Acquisition adjustments | (1,076) |
Balance at September 30, 2016 | 1,662,892 |
Fluid & Metering Technologies | |
Goodwill [Roll Forward] | |
Balance at December 31, 2015 | 584,770 |
Foreign currency translation | 3,151 |
Acquisitions | 0 |
Disposition of businesses | (3,594) |
Acquisition adjustments | (1,623) |
Balance at September 30, 2016 | 582,704 |
Health & Science Technologies | |
Goodwill [Roll Forward] | |
Balance at December 31, 2015 | 590,605 |
Foreign currency translation | (4,820) |
Acquisitions | 132,381 |
Disposition of businesses | (9,140) |
Acquisition adjustments | 547 |
Balance at September 30, 2016 | 709,573 |
Fire & Safety/Diversified Products | |
Goodwill [Roll Forward] | |
Balance at December 31, 2015 | 221,154 |
Foreign currency translation | 1,638 |
Acquisitions | 147,823 |
Disposition of businesses | 0 |
Acquisition adjustments | 0 |
Balance at September 30, 2016 | $ 370,615 |
Goodwill and Intangible Asset54
Goodwill and Intangible Assets (Schedule of Gross Carrying Value and Accumulated Amortization for Each Major Class of Intangible Asset) (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | $ 637,358 | $ 463,841 |
Intangible assets - Gross Carrying Amount | 728,258 | 525,941 |
Amortized intangible assets - Accumulated Amortization | (265,828) | (238,104) |
Amortized intangible assets - Net | 371,530 | 225,737 |
Intangible assets - Net | 462,430 | 287,837 |
Banjo trade name | ||
Goodwill And Intangible Assets [Line Items] | ||
Indefinite lived intangible assets - Gross Carrying Amount | 62,100 | 62,100 |
Indefinite lived intangible assets - Net | 62,100 | 62,100 |
Akron Brass trade name | ||
Goodwill And Intangible Assets [Line Items] | ||
Indefinite lived intangible assets - Gross Carrying Amount | 28,800 | 0 |
Indefinite lived intangible assets - Net | 28,800 | 0 |
Patents | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | 10,180 | 10,202 |
Amortized intangible assets - Accumulated Amortization | (6,772) | (6,175) |
Amortized intangible assets - Net | $ 3,408 | 4,027 |
Amortized intangible assets - Weighted Average Life | 11 years | |
Trade names | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | $ 118,983 | 110,658 |
Amortized intangible assets - Accumulated Amortization | (42,190) | (38,696) |
Amortized intangible assets - Net | $ 76,793 | 71,962 |
Amortized intangible assets - Weighted Average Life | 16 years | |
Customer relationships | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | $ 384,141 | 257,071 |
Amortized intangible assets - Accumulated Amortization | (162,524) | (144,134) |
Amortized intangible assets - Net | $ 221,617 | 112,937 |
Amortized intangible assets - Weighted Average Life | 12 years | |
Non-compete agreements | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | $ 0 | 794 |
Amortized intangible assets - Accumulated Amortization | 0 | (775) |
Amortized intangible assets - Net | $ 0 | 19 |
Amortized intangible assets - Weighted Average Life | 3 years | |
Unpatented technology | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | $ 117,455 | 78,562 |
Amortized intangible assets - Accumulated Amortization | (48,281) | (42,745) |
Amortized intangible assets - Net | $ 69,174 | 35,817 |
Amortized intangible assets - Weighted Average Life | 11 years | |
Other | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | $ 6,599 | 6,554 |
Amortized intangible assets - Accumulated Amortization | (6,061) | (5,579) |
Amortized intangible assets - Net | $ 538 | $ 975 |
Amortized intangible assets - Weighted Average Life | 10 years |
Goodwill and Intangible Asset55
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Oct. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Reporting unit, percentage of fair value in excess of carrying amount | 70.00% | ||||
Amortization of intangible assets | $ 12,800 | $ 11,200 | $ 35,964 | $ 31,340 | |
Depreciation and amortization | 28,360 | $ 26,634 | |||
Intangible assets, amortization expense | |||||
Remaining of 2016 | 14,000 | 14,000 | |||
2,017 | 40,300 | 40,300 | |||
2,018 | 34,500 | 34,500 | |||
2,019 | 33,000 | 33,000 | |||
2,020 | $ 32,200 | $ 32,200 | |||
Banjo trade name | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Reporting unit, percentage of fair value in excess of carrying amount | 20.00% | ||||
IOP reporting unit | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Reporting unit, percentage of fair value in excess of carrying amount | 20.00% |
Accrued Expenses (Components of
Accrued Expenses (Components of Accrued Expenses) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Payroll and related items | $ 62,703 | $ 67,209 |
Management incentive compensation | 13,755 | 12,599 |
Income taxes payable | 11,409 | 3,836 |
Insurance | 8,979 | 9,505 |
Warranty | 6,036 | 7,936 |
Deferred revenue | 11,200 | 9,885 |
Restructuring | 2,258 | 6,636 |
Liability for uncertain tax positions | 2,711 | 3,498 |
Accrued interest | 11,518 | 1,230 |
Contingent consideration for acquisition | 0 | 4,705 |
Other | 30,247 | 26,633 |
Total accrued expenses | $ 160,816 | $ 153,672 |
Other Noncurrent Liabilities (C
Other Noncurrent Liabilities (Components of Noncurrent Liabilities) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Pension and retiree medical obligations | $ 98,422 | $ 76,190 |
Liability for uncertain tax positions | 3,030 | 4,252 |
Deferred revenue | 1,828 | 3,763 |
Other | 16,795 | 18,160 |
Total other noncurrent liabilities | $ 120,075 | $ 102,365 |
Borrowings (Schedule of Borrowi
Borrowings (Schedule of Borrowings) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total borrowings | $ 1,106,692 | $ 847,436 |
Less current portion | 1,171 | 1,087 |
Less deferred debt issuance costs | 4,664 | 5,203 |
Less unaccreted debt discount | 1,256 | 1,439 |
Total long-term borrowings | 1,099,601 | 839,707 |
Revolving Facility | ||
Debt Instrument [Line Items] | ||
Revolving Facility | 255,130 | 195,000 |
Senior Notes | 4.5% Senior Notes, due December 2020 | ||
Debt Instrument [Line Items] | ||
Total borrowings | 300,000 | 300,000 |
Senior Notes | 4.2% Senior Notes, due December 2021 | ||
Debt Instrument [Line Items] | ||
Total borrowings | 350,000 | 350,000 |
Senior Notes | 3.2% Senior Notes, due June 2023 | ||
Debt Instrument [Line Items] | ||
Total borrowings | 100,000 | 0 |
Senior Notes | 3.37% Senior Notes, due June 2025 | ||
Debt Instrument [Line Items] | ||
Total borrowings | 100,000 | 0 |
Other borrowings | ||
Debt Instrument [Line Items] | ||
Other borrowings | $ 1,562 | $ 2,436 |
Borrowings (Schedule of Borro59
Borrowings (Schedule of Borrowings 1) (Detail) | Sep. 30, 2016 |
4.2% Senior Notes, due December 2021 | |
Debt Instrument [Line Items] | |
Stated interest rate | 4.20% |
4.5% Senior Notes, due December 2020 | |
Debt Instrument [Line Items] | |
Stated interest rate | 4.50% |
3.2% Senior Notes, due June 2023 | |
Debt Instrument [Line Items] | |
Stated interest rate | 3.20% |
3.37% Senior Notes, due June 2025 | |
Debt Instrument [Line Items] | |
Stated interest rate | 3.37% |
Borrowings (Additional Informat
Borrowings (Additional Information) (Detail) | Jun. 23, 2015USD ($) | Sep. 30, 2016USD ($)covenant | Jun. 13, 2016USD ($) | Dec. 31, 2015USD ($) |
Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Required percent for prepayment amount of aggregate principal amount | 5.00% | |||
Revolving Facility | ||||
Line of Credit Facility [Line Items] | ||||
Current borrowings under revolving facility | $ 255,130,000 | $ 195,000,000 | ||
Outstanding letters of credit | 8,200,000 | |||
Revolving Facility, amount available to borrow | $ 436,700,000 | |||
Number of financial covenants | covenant | 2 | |||
Other borrowings | ||||
Line of Credit Facility [Line Items] | ||||
Other borrowings | $ 1,562,000 | $ 2,436,000 | ||
Other borrowings | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate | 0.90% | |||
Other borrowings | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate | 2.83% | |||
Senior Notes | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Interest coverage ratio | 3 | |||
Senior Notes | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Limitation of outstanding principal of higher preference debt as percent of consolidated assets | 15.00% | |||
Leverage ratio | 3.50 | |||
3.2% Senior Notes, due June 2023 | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate | 3.20% | |||
3.2% Senior Notes, due June 2023 | Senior Notes | ||||
Line of Credit Facility [Line Items] | ||||
Face amount of debt | $ 100,000,000 | |||
Stated interest rate | 3.20% | |||
3.37% Senior Notes, due June 2025 | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate | 3.37% | |||
3.37% Senior Notes, due June 2025 | Senior Notes | ||||
Line of Credit Facility [Line Items] | ||||
Face amount of debt | $ 100,000,000 | |||
Stated interest rate | 3.37% | |||
4.5% Senior Notes, due December 2020 | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate | 4.50% | |||
4.2% Senior Notes, due December 2021 | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate | 4.20% | |||
Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, term | 5 years | |||
Borrowing capacity | $ 700,000,000 | |||
Expiration date | Jun. 23, 2020 | |||
Extension period | 1 year | |||
Aggregate lending commitments | $ 350,000,000 | |||
Applicable margin over LIBOR | 1.10% | |||
Effective percentage | 1.34% | |||
Credit Agreement | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Applicable margin over LIBOR | 0.005% | |||
Credit Agreement | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Applicable margin over LIBOR | 1.50% | |||
Credit Agreement | Letters Of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing capacity | 75,000,000 | |||
Credit Agreement | Swing line Loans | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing capacity | $ 50,000,000 |
Derivative Instruments (Additio
Derivative Instruments (Additional Information) (Detail) $ in Thousands | 9 Months Ended | 24 Months Ended | |
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2011USD ($)instrument | |
Derivative [Line Items] | |||
Amortization of interest expense | $ 1,150 | $ 1,233 | |
Amount to be recognized from hedged transactions within 12 months, approximate | $ 6,700 | ||
4.2% Senior Notes, due December 2021 | |||
Derivative [Line Items] | |||
Interest rate on senior notes | 4.20% | ||
4.5% Senior Notes, due December 2020 | |||
Derivative [Line Items] | |||
Interest rate on senior notes | 4.50% | ||
Interest Rate Contract | |||
Derivative [Line Items] | |||
Number of instruments held | instrument | 2 | ||
Interest Rate Exchange Agreement Expiring 2010 and 2011 | |||
Derivative [Line Items] | |||
Amortization of interest expense | $ 68,900 | ||
Term of amortized interest expense, years | 10 years |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Company Financial Assets and Liabilities at Fair Value on Recurring Basis) (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market investment | $ 18,210 | $ 21,931 |
Available for sale securities | 5,705 | 4,794 |
Contingent consideration | (4,705) | |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market investment | 18,210 | 21,931 |
Available for sale securities | 5,705 | 4,794 |
Contingent consideration | 0 | |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market investment | 0 | 0 |
Available for sale securities | 0 | 0 |
Contingent consideration | 0 | |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market investment | 0 | 0 |
Available for sale securities | $ 0 | 0 |
Contingent consideration | $ (4,705) |
Fair Value Measurements (Additi
Fair Value Measurements (Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term debt, fair value | $ 1,143.2 | |||||
Carrying Value | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term debt, fair value | $ 1,103.9 | |||||
3.2% Senior Notes, due June 2023 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Stated interest rate | 3.20% | |||||
3.37% Senior Notes, due June 2025 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Stated interest rate | 3.37% | |||||
4.5% Senior Notes, due December 2020 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Stated interest rate | 4.50% | |||||
4.2% Senior Notes, due December 2021 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Stated interest rate | 4.20% | |||||
CIDRA Precision Services, LLC | Selling, general and administrative expenses | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Change in amount of contingent consideration, liability | $ 1 | $ 3.7 | $ 4.7 | $ 4.7 | ||
Accrued Expenses | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Contingent consideration | $ 4.7 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Restructuring and Related Activities [Abstract] | ||
Restructuring reserve | $ 2,258 | $ 6,636 |
Restructuring (Restructuring Ac
Restructuring (Restructuring Accruals) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance at January 1, 2016 | $ 6,636 |
Payments, utilization and other | (4,378) |
Balance at September 30, 2016 | $ 2,258 |
Other Comprehensive Income (L66
Other Comprehensive Income (Loss) (Components of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) | $ 6,287 | $ (19,729) | $ (1,087) | $ (48,767) |
AOCI | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total other comprehensive income (loss), Pre-tax | 7,227 | (18,698) | 1,749 | (45,663) |
Total other comprehensive income (loss), Tax | (940) | (1,031) | (2,836) | (3,104) |
Other comprehensive income (loss) | 6,287 | (19,729) | (1,087) | (48,767) |
Cumulative translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total other comprehensive income (loss), Pre-tax | 4,611 | (21,661) | (6,215) | (54,555) |
Total other comprehensive income (loss), Tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 4,611 | (21,661) | (6,215) | (54,555) |
Pension and other postretirement adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total other comprehensive income (loss), Pre-tax | 915 | 1,215 | 2,820 | 3,605 |
Total other comprehensive income (loss), Tax | (321) | (397) | (964) | (1,187) |
Other comprehensive income (loss) | 594 | 818 | 1,856 | 2,418 |
Reclassification adjustments for derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total other comprehensive income (loss), Pre-tax | 1,701 | 1,748 | 5,144 | 5,287 |
Total other comprehensive income (loss), Tax | (619) | (634) | (1,872) | (1,917) |
Other comprehensive income (loss) | $ 1,082 | $ 1,114 | $ 3,272 | $ 3,370 |
Other Comprehensive Income (L67
Other Comprehensive Income (Loss) (Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of service cost | $ (119,965) | $ (114,794) | $ (371,825) | $ (360,784) |
Reclassification adjustments | (11,913) | (10,229) | (33,607) | (31,410) |
Total before tax | (29,435) | (32,772) | (82,003) | (88,614) |
Reclassification out of Accumulated Other Comprehensive Income | Pension and other postretirement plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of service cost | 915 | 1,215 | 2,820 | 3,605 |
Total before tax | 915 | 1,215 | 2,820 | 3,605 |
Total before tax | (321) | (397) | (964) | (1,187) |
Total net of tax | 594 | 818 | 1,856 | 2,418 |
Reclassification out of Accumulated Other Comprehensive Income | Derivatives | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 1,701 | 1,748 | 5,144 | 5,287 |
Reclassification adjustments | 1,701 | 1,748 | 5,144 | 5,287 |
Total before tax | (619) | (634) | (1,872) | (1,917) |
Total net of tax | $ 1,082 | $ 1,114 | $ 3,272 | $ 3,370 |
Common and Preferred Stock (Add
Common and Preferred Stock (Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 01, 2015 | Oct. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 |
Equity [Abstract] | |||||
Increase in share repurchase authorized amount | $ 300,000 | ||||
Purchase of common stock (in shares) | 738,953 | 2,400,000 | |||
Repurchase of common stock, including subsequent settlements | $ 55,000 | $ 179,400 | |||
Purchase of common stock | $ 4,300 | 57,272 | $ 177,772 | ||
Remaining authorized repurchase amount | $ 580,000 | ||||
Common stock, authorized (in shares) | 150,000,000 | 150,000,000 | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Preferred stock, issued (in shares) | 0 | 0 |
Share Based Compensation - Addi
Share Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Feb. 29, 2016 | Feb. 28, 2013 | Sep. 30, 2016 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 75,640 | ||
Restricted Stock | Employees and Non-employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Cash-settled Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Granted (in shares) | 39,450 | ||
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost | $ 11.9 | ||
Weighted-average period of total unrecognized compensation cost, in years | 1 year 6 months | ||
Unvested Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost | $ 10 | ||
Weighted-average period of total unrecognized compensation cost, in years | 1 year 1 month 6 days | ||
Performance Shares Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Granted (in shares) | 43,800 | 85,130 | |
Payout percent | 200.00% | ||
Stock issued during period (in shares) | 87,600 | ||
Total unrecognized compensation cost | $ 7.6 | ||
Weighted-average period of total unrecognized compensation cost, in years | 1 year 1 month 6 days |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Weighted Average Option Fair Values and Assumptions (Detail) - Stock Option - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average fair value of grants (in dollars per share) | $ 21.88 | $ 19.98 | $ 18.47 | $ 20.34 |
Dividend yield | 1.53% | 1.65% | 1.69% | 1.44% |
Volatility | 29.60% | 29.64% | 29.71% | 29.91% |
Risk-free interest rate, minimum | 0.51% | 0.29% | 0.53% | 0.24% |
Risk-free interest rate, maximum | 2.01% | 3.37% | 2.50% | 2.82% |
Expected life (in years) | 5 years 10 months 28 days | 6 years 1 month 28 days | 5 years 10 months 28 days | 5 years 11 months 5 days |
Share-Based Compensation - Sc71
Share-Based Compensation - Schedule of Compensation Cost for Stock Options (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 15,325 | $ 14,735 | ||
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 1,370 | $ 1,388 | 5,438 | 5,428 |
Income tax benefit | (441) | (440) | (1,727) | (1,709) |
Total expense after income taxes | 929 | 948 | 3,711 | 3,719 |
Stock Option | Cost of goods sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 92 | 91 | 354 | 441 |
Stock Option | Selling, general and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 1,278 | $ 1,297 | $ 5,084 | $ 4,987 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options Activity (Detail) - Stock Option - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Shares | ||
Beginning balance (in shares) | 2,266,433 | |
Granted (in shares) | 558,420 | |
Exercised (in shares) | (526,918) | |
Forfeited/Expired (in shares) | (162,969) | |
Ending balance (in shares) | 2,134,966 | 2,266,433 |
Vested and expected to vest (in shares) | 2,013,213 | |
Exercisable (in shares) | 1,092,881 | |
Weighted Average Price | ||
Beginning Balance, Weighted Average Price (in dollars per share) | $ 54.05 | |
Granted, Weighted Average Price (in dollars per share) | 75.01 | |
Exercised, Weighted Average Price (in dollars per share) | 43.52 | |
Forfeited, Weighted Average Price (in dollars per share) | 72.69 | |
Ending Balance, Weighted Average Price (in dollars per share) | $ 60.71 | $ 54.05 |
Weighted-Average Remaining Contractual Term | ||
Stock options outstanding, Weighted-Average Remaining Contractual Term | 6 years 11 months 12 days | 6 years 6 months 29 days |
Aggregate Intrinsic Value | ||
Stock options outstanding, Aggregate intrinsic value | $ 70,154,123 | $ 51,918,028 |
Vested and expected to vest , Weighted Average Price (in dollars per share) | $ 59.83 | |
Exercisable, Weighted Average Price (in dollars per share) | $ 48.34 | |
Weighted-Average Remaining Contractual Term, Vested and expected to vest | 6 years 10 months 2 days | |
Weighted-Average Remaining Contractual Term, Exercisable | 5 years 4 months 24 days | |
Aggregate Intrinsic Value, Vested and expected to vest | $ 67,927,238 | |
Aggregate Intrinsic Value, Exercisable | $ 49,426,856 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Units Activity (Detail) - Restricted Stock | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Shares | |
Unvested, Beginning balance (in shares) | shares | 272,755 |
Granted (in shares) | shares | 75,640 |
Vested (in shares) | shares | (104,427) |
Forfeited (in shares) | shares | (25,440) |
Unvested, Ending balance (in shares) | shares | 218,528 |
Weighted-Average Grant Date Fair Value | |
Unvested, Beginning balance (in dollars per share) | $ / shares | $ 65.90 |
Granted (in dollars per share) | $ / shares | 78.66 |
Vested (in dollars per share) | $ / shares | 51.73 |
Forfeited (in dollars per share) | $ / shares | 74.54 |
Unvested, Ending balance (in dollars per share) | $ / shares | $ 76.08 |
Share-Based Compensation - Sc74
Share-Based Compensation - Schedule of Compensation Cost for Restricted Stock Units (Details) - Restricted Stock - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total expense before income taxes | $ 815 | $ 458 | $ 3,574 | $ 4,207 |
Income tax benefit | (216) | (184) | (1,053) | (1,239) |
Total expense after income taxes | 599 | 274 | 2,521 | 2,968 |
Cost of goods sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total expense before income taxes | 64 | 9 | 325 | 245 |
Selling, general and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total expense before income taxes | $ 751 | $ 449 | $ 3,249 | $ 3,962 |
Share-Based Compensation - Cash
Share-Based Compensation - Cash-settled Restricted Stock Activity (Details) - Cash-settled Restricted Stock | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Shares | |
Unvested, Beginning balance (in shares) | shares | 110,860 |
Granted (in shares) | shares | 39,450 |
Vested (in shares) | shares | (35,960) |
Forfeited (in shares) | shares | (9,465) |
Unvested, Ending balance (in shares) | shares | 104,885 |
Weighted-Average Grant Date Fair Value | |
Unvested, Beginning balance (in dollars per share) | $ / shares | $ 76.61 |
Granted (in dollars per share) | $ / shares | 93.57 |
Vested (in dollars per share) | $ / shares | 72.54 |
Forfeited (in dollars per share) | $ / shares | 93.57 |
Unvested, Ending balance (in dollars per share) | $ / shares | $ 93.57 |
Share-Based Compensation - Sc76
Share-Based Compensation - Schedule of Compensation Cost for Cash-settled Restricted Stock (Details) - Cash-settled Restricted Stock - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total expense before income taxes | $ 1,188 | $ 193 | $ 2,469 | $ 1,622 |
Income tax benefit | (170) | (28) | (354) | (251) |
Total expense after income taxes | 1,018 | 165 | 2,115 | 1,371 |
Cost of goods sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total expense before income taxes | 307 | 29 | 627 | 533 |
Selling, general and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total expense before income taxes | $ 881 | $ 164 | $ 1,842 | $ 1,089 |
Share-Based Compensation - Sc77
Share-Based Compensation - Schedule of Weighted Average Performance Share Units Fair Values and Assumptions (Detail) - Performance Shares Units - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value of performance share units (in dollars per share) | $ 111.42 | $ 95.07 |
Dividend yield | 0.00% | 0.00% |
Volatility | 17.99% | 19.14% |
Risk-free forward interest rate | 0.89% | 1.01% |
Expected life (in years) | 2 years 10 months 10 days | 2 years 10 months 10 days |
Share-Based Compensation - Perf
Share-Based Compensation - Performance Share Unit Activity (Details) - Performance Shares Units - $ / shares | 1 Months Ended | 9 Months Ended |
Feb. 28, 2013 | Sep. 30, 2016 | |
Shares | ||
Unvested, Beginning balance (in shares) | 146,275 | |
Granted (in shares) | 43,800 | 85,130 |
Vested (in shares) | 0 | |
Forfeited (in shares) | (31,025) | |
Unvested, Ending balance (in shares) | 200,380 | |
Weighted-Average Grant Date Fair Value | ||
Unvested, Beginning balance (in dollars per share) | $ 94.80 | |
Granted (in dollars per share) | 111.42 | |
Vested (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 99.52 | |
Unvested, Ending balance (in dollars per share) | $ 101.13 |
Share-Based Compensation - Sc79
Share-Based Compensation - Schedule of Compensation Cost for Performance Share Units (Details) - Performance Shares Units - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total expense before income taxes | $ 348 | $ 953 | $ 3,844 | $ 3,478 |
Income tax benefit | (98) | (323) | (1,266) | (1,161) |
Total expense after income taxes | 250 | 630 | 2,578 | 2,317 |
Cost of goods sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total expense before income taxes | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total expense before income taxes | $ 348 | $ 953 | $ 3,844 | $ 3,478 |
Retirement Benefits (Components
Retirement Benefits (Components of Net Periodic Benefit Cost for Defined Benefit Plans and Other Postretirement Plans) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
U.S. | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 181 | $ 214 | $ 769 | $ 965 |
Interest cost | 788 | 956 | 2,282 | 2,831 |
Expected return on plan assets | (1,233) | (1,186) | (3,583) | (3,682) |
Net amortization | 766 | 906 | 2,420 | 2,585 |
Net periodic benefit cost | 502 | 890 | 1,888 | 2,699 |
Non-U.S. | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 331 | 377 | 934 | 1,134 |
Interest cost | 344 | 437 | 1,049 | 1,305 |
Expected return on plan assets | (203) | (282) | (642) | (838) |
Net amortization | 241 | 405 | 722 | 1,334 |
Net periodic benefit cost | 713 | 937 | 2,063 | 2,935 |
Other Postretirement Benefit Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 181 | 168 | 494 | 506 |
Interest cost | 224 | 208 | 622 | 626 |
Net amortization | (154) | (95) | (462) | (314) |
Net periodic benefit cost | $ 251 | $ 281 | $ 654 | $ 818 |
Retirement Benefits (Additional
Retirement Benefits (Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions by employer | $ 4.5 | ||
Forecast | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions by employer | $ 8 | ||
Loss due to settlements | 3 | ||
Forecast | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions by employer | 10 | ||
Loss due to settlements | $ 6 | ||
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contribution for next fiscal year | $ 6.1 | ||
Expected contributions in current fiscal year | 4.5 | ||
Other Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contribution for next fiscal year | $ 0.9 | ||
Expected contributions in current fiscal year | $ 0.9 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Provision for income taxes | $ 29,435,000 | $ 32,772,000 | $ 82,003,000 | $ 88,614,000 |
Effective tax rate | 29.60% | 29.20% | 27.70% | 29.20% |
Minimum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Reasonably possible change in unrecognized tax benefits over next 12 months | $ 0 | $ 0 | ||
Maximum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Reasonably possible change in unrecognized tax benefits over next 12 months | 2,700,000 | 2,700,000 | ||
Hydra-Stop Product Line | Disposed of by Sale | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Foreign withholding taxes | $ 5,200,000 | $ 5,200,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Disposal Group, Not Discontinued Operations - IETG and 40Seven Subsidiaries - USD ($) $ in Millions | Oct. 10, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | ||
Revenues | $ 12 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Proceeds from sale of business | $ 2.8 |