Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 24, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
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 | 76,718,262 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 412,973 | $ 375,950 |
Receivables, less allowance for doubtful accounts of $7,409 at March 31, 2018 and $7,764 at December 31, 2017 | 328,658 | 294,166 |
Inventories | 283,876 | 259,724 |
Other current assets | 43,781 | 74,203 |
Total current assets | 1,069,288 | 1,004,043 |
Property, plant and equipment — net | 267,130 | 258,350 |
Goodwill | 1,722,768 | 1,704,158 |
Intangible assets — net | 408,188 | 414,746 |
Other noncurrent assets | 18,085 | 18,331 |
Total assets | 3,485,459 | 3,399,628 |
Current liabilities | ||
Trade accounts payable | 157,291 | 147,067 |
Accrued expenses | 158,156 | 184,705 |
Short-term borrowings | 835 | 258 |
Dividends payable | 0 | 28,945 |
Total current liabilities | 316,282 | 360,975 |
Long-term borrowings | 859,731 | 858,788 |
Deferred income taxes | 131,646 | 137,638 |
Other noncurrent liabilities | 160,915 | 155,685 |
Total liabilities | 1,468,574 | 1,513,086 |
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: 90,124,036 shares at March 31, 2018 and 90,162,211 shares at December 31, 2017 | 902 | 902 |
Additional paid-in capital | 722,844 | 716,906 |
Retained earnings | 2,162,663 | 2,057,915 |
Treasury stock at cost: 13,240,743 shares at March 31, 2018 and 13,468,675 shares at December 31, 2017 | (803,834) | (799,674) |
Accumulated other comprehensive income (loss) | (65,690) | (89,507) |
Total shareholders’ equity | 2,016,885 | 1,886,542 |
Total liabilities and shareholders’ equity | $ 3,485,459 | $ 3,399,628 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 7,409 | $ 7,764 |
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) | 90,124,036 | 90,162,211 |
Treasury stock, shares (in shares) | 13,240,743 | 13,468,675 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 612,324 | $ 553,552 |
Cost of sales | 335,672 | 302,611 |
Gross profit | 276,652 | 250,941 |
Selling, general and administrative expenses | 138,327 | 130,473 |
Restructuring expenses | 1,642 | 4,797 |
Operating income | 136,683 | 115,671 |
Other (income) expense - net | (4,449) | (308) |
Interest expense | 11,000 | 11,552 |
Income before income taxes | 130,132 | 104,427 |
Provision for income taxes | 31,174 | 28,528 |
Net income | $ 98,958 | $ 75,899 |
Basic earnings per common share (in dollars per share) | $ 1.29 | $ 0.99 |
Diluted earnings per common share (in dollars per share) | $ 1.27 | $ 0.99 |
Share data: | ||
Basic weighted average common shares outstanding (in shares) | 76,419 | 76,115 |
Diluted weighted average common shares outstanding (in shares) | 77,739 | 76,894 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 98,958 | $ 75,899 |
Other comprehensive income (loss): | ||
Reclassification adjustments for derivatives, net of tax | 1,261 | 1,042 |
Pension and other postretirement adjustments, net of tax | 1,413 | 1,124 |
Cumulative translation adjustment | 27,578 | 21,050 |
Other comprehensive income (loss) | 30,252 | 23,216 |
Comprehensive income | $ 129,210 | $ 99,115 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - 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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adjustment for adoption of ASU | Accounting Standards Update 2016-16 | $ (645) | $ (645) | |||||
Adjustment for adoption of ASU | Accounting Standards Update 2018-02 | 0 | 6,435 | $ (3,411) | $ (3,024) | |||
Balance, December 31, 2017 at Dec. 31, 2017 | 1,886,542 | $ 717,808 | 2,057,915 | $ (46,306) | (29,154) | (14,047) | $ (799,674) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 98,958 | 98,958 | |||||
Cumulative translation adjustment | 27,578 | 27,578 | |||||
Net change in retirement obligations (net of tax of $505) | 1,413 | 1,413 | |||||
Net change on derivatives designated as cash flow hedges (net of tax of $371) | 1,261 | 1,261 | |||||
Issuance of 227,932 shares of common stock from issuance of unvested shares, performance share units and exercise of stock options (net of tax of $2,934) | 6,590 | 6,590 | |||||
Shares surrendered for tax withholding | (10,750) | (10,750) | |||||
Share-based compensation | 5,938 | 5,938 | |||||
Balance, March 31, 2018 at Mar. 31, 2018 | $ 2,016,885 | $ 723,746 | $ 2,162,663 | $ (18,728) | $ (31,152) | $ (15,810) | $ (803,834) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)shares | |
Statement of Stockholders' Equity [Abstract] | |
Pension and other postretirement adjustments, tax | $ 505 |
Amortization of forward starting swaps, tax | $ 371 |
Issuance of common stock from performance share units and exercise of stock options (in shares) | shares | 227,932 |
Issuance of common stock from exercise of stock options and deferred compensation plans, tax amount | $ 2,934 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | ||
Net income | $ 98,958 | $ 75,899 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 10,183 | 8,903 |
Amortization of intangible assets | 10,871 | 11,789 |
Amortization of debt issuance expenses | 332 | 329 |
Share-based compensation expense | 7,652 | 6,159 |
Deferred income taxes | (2,041) | 1,293 |
Non-cash interest expense associated with forward starting swaps | 1,632 | 1,677 |
Changes in (net of the effect from acquisitions): | ||
Receivables | (30,816) | (20,058) |
Inventories | (21,116) | (2,761) |
Other current assets | 16,881 | 6,570 |
Trade accounts payable | 8,215 | 5,188 |
Accrued expenses | (27,273) | (11,565) |
Other — net | (1,749) | 1,556 |
Net cash flows provided by operating activities | 71,729 | 84,979 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | (10,009) | (10,162) |
Other — net | (184) | 546 |
Net cash flows (used in) investing activities | (10,193) | (9,616) |
Cash flows from financing activities | ||
Borrowings under revolving credit facilities | 0 | 13,000 |
Payments under revolving credit facilities | 0 | (80,224) |
Dividends paid | (28,945) | (26,327) |
Proceeds from stock option exercises | 6,590 | 6,074 |
Purchases of common stock | 0 | (7,005) |
Shares surrendered for tax withholding | (10,750) | (5,647) |
Settlement of foreign exchange contracts | 6,618 | 738 |
Net cash flows (used in) financing activities | (26,487) | (99,391) |
Effect of exchange rate changes on cash and cash equivalents | 1,974 | 4,159 |
Net increase (decrease) in cash | 37,023 | (19,869) |
Cash and cash equivalents at beginning of year | 375,950 | 235,964 |
Cash and cash equivalents at end of period | 412,973 | 216,095 |
Cash paid for: | ||
Interest | 355 | 760 |
Income taxes — net | 10,942 | 5,888 |
Significant non-cash activities: | ||
Capital expenditures for construction of new leased facility | $ 5,801 | $ 0 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
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 months ended March 31, 2018 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, 2017 . Recently Adopted Accounting Standards In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which requires an entity to disclose its accounting policy related to releasing income tax effects from accumulated other comprehensive income (loss), whether it has elected to reclassify the stranded tax effects in accumulated other comprehensive income (loss) to retained earnings in the statement of shareholder’s equity and if it has elected to reclassify the stranded tax effects in accumulated other comprehensive income (loss) to retained earnings, what the reclassification encompasses. The Company early adopted this standard on a retrospective basis on January 1, 2018. The adoption resulted in an increase of $6.4 million to Retained earnings and a corresponding change of $6.4 million to Accumulated other comprehensive income (loss) at January 1, 2018. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business , which clarifies the definition of a business and assists entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. Under this guidance, when substantially all of the fair value of gross assets acquired is concentrated in a single asset or group of similar assets, the assets acquired would not represent a business. In addition, in order to be considered a business, an acquisition would have to include at a minimum an input and a substantive process that together significantly contribute to the ability to create an output. The amended guidance also narrows the definition of outputs by more closely aligning it with how outputs are described in FASB guidance for revenue recognition. The Company adopted this standard on January 1, 2018. The adoption of this standard did not have a material impact on our condensed consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory , which amends Accounting Standards Codification (“ASC”) 740, Income Taxes . This ASU requires that the income tax consequences of an intra-entity asset transfer other than inventory are recognized at the time of the transfer. An entity will continue to recognize the income tax consequences of an intercompany transfer of inventory when the inventory is sold to a third party. The Company adopted this standard on a modified-retrospective basis on January 1, 2018. The adoption resulted in a decrease of $7.3 million to Other current assets, a decrease of $6.7 million to Deferred income taxes and a decrease of $0.6 million to Retained earnings at January 1, 2018. 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. The Company adopted this standard on January 1, 2018. The adoption of this standard did not have a material impact on our condensed consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which replaces numerous requirements in U.S. GAAP, including industry-specific requirements, and provides companies with a new five-step model for recognizing revenue from contracts with customers. 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. 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 ; ASU 2016-12 , Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients ; and ASU 2016-20 , Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. In 2016, we established an implementation team and analyzed the impact of the standard by surveying business units and performing extensive contract reviews to identify potential differences that may result from applying the requirements of the new standard. The contract reviews generally supported the recognition of revenue at a point in time, which is consistent with the current revenue recognition model used by most of our business units. As a result, revenue recognition remains unchanged under the new standard. For our business units that currently recognize revenue under a percentage of completion model, revenue recognition also remains unchanged as the contract reviews supported the recognition of revenue over time. The Company has implemented the appropriate changes to its processes, systems and controls to comply with the new guidance. The Company adopted this standard on January 1, 2018 using the modified retrospective approach applied to contracts that were not completed as of January1, 2018. The adoption of this standard did not have an impact on our condensed consolidated financial statements. The Company elected the following practical expedients: significant financing component, sales tax presentation, contract costs, shipping and handling activities, and disclosures. See Note 4 for further details on revenue. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases , which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The standard 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. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. This standard is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Companies are permitted to adopt the standard early and a modified retrospective application is permitted. The new guidance requires adoption on a retrospective basis unless it is impracticable to apply, in which case the Company would be required to apply the amendments prospectively as of the earliest date practicable.The Company is currently evaluating the impact of adopting the new guidance on its condensed consolidated financial statements. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations and Dispositions [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures All of the Company’s acquisitions have been accounted for under 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 condensed consolidated financial statements from their respective dates of acquisition. The results of operations of the acquired companies have been included in the Company’s condensed consolidated results since the date of each acquisition. The Company incurred $0.7 million and $0.1 million of acquisition-related transaction costs in the three months ended March 31, 2018 and 2017 , 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. 2017 Acquisition On December 8, 2017, the Company acquired the stock of thinXXS Microtechnology AG (“thinXXS”), a leader in the design, manufacture, and sale of microfluidic components serving the point of care, veterinary, and life science markets. The business was acquired to complement our existing CiDRA Precision Services business and expand on our microfluidic and nanofluidic capabilities. Headquartered in Zweibrücken, Germany, thinXXS operates in our Health & Science Technologies segment. thinXXS was acquired for cash consideration of $38.2 million and the assumption of $1.2 million of debt. The purchase price was funded with cash on hand. Goodwill and intangible assets recognized as part of the transaction were $25.0 million and $10.6 million , respectively. The goodwill is not deductible for tax purposes. The Company made an initial allocation of the purchase price for the thinXXS acquisition as of the acquisition date based on its understanding of the fair value of the acquired assets and assumed liabilities. These nonrecurring fair value measurements are classified as Level 3 in the fair value hierarchy. As the Company continues to obtain additional information about these assets and liabilities, and continues to learn more about the newly acquired business, 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. 2017 Divestiture The Company periodically reviews its operations for businesses which may no longer be aligned with its strategic objectives and focuses on core business and customers. Any resulting gain or loss recognized due to divestitures is recorded within Loss (gain) on sale of businesses - net. The Company concluded that the divestiture that took place during the year ended December 31, 2017 did not meet the criteria for reporting discontinued operations. On October 31, 2017, the Company completed the sale of its Faure Herman subsidiary for $21.8 million in cash, resulting in a pre-tax gain on the sale of $9.3 million which was recognized in the fourth quarter of 2017. There was no income tax expense associated with this transaction. The results of Faure Herman were reported within the Fluid & Metering Technologies segment through the date of sale. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company has three reportable business segments: Fluid & Metering Technologies (“FMT”), Health & Science Technologies (“HST”) and Fire & Safety/Diversified Products (“FSDP”). 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 food, chemical, general industrial, water & wastewater, agriculture and energy 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, including very high precision, low-flow rate pumping solutions required in analytical instrumentation, clinical diagnostics and drug discovery, high performance molded and extruded sealing components, 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, 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 and peristaltic pump technologies that meet exacting original equipment manufacturer specifications. The Fire & Safety/Diversified Products segment designs, produces and distributes firefighting pumps, valves and controls, 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 sales, operating income, and operating margin are the primary financial measures. Intersegment sales are accounted for at fair value as if the sales were to third parties. Three Months Ended 2018 2017 Net sales Fluid & Metering Technologies External customers $ 232,261 $ 216,655 Intersegment sales 72 115 Total segment sales 232,333 216,770 Health & Science Technologies External customers 220,967 199,575 Intersegment sales 108 104 Total segment sales 221,075 199,679 Fire & Safety/Diversified Products External customers 159,096 137,322 Intersegment sales 77 125 Total segment sales 159,173 137,447 Intersegment elimination (257 ) (344 ) Total net sales $ 612,324 $ 553,552 Operating income Fluid & Metering Technologies $ 66,166 $ 57,813 Health & Science Technologies 51,806 42,238 Fire & Safety/Diversified Products 39,554 32,626 Corporate office (20,843 ) (17,006 ) Total operating income 136,683 115,671 Interest expense 11,000 11,552 Other (income) expense - net (4,449 ) (308 ) Income before income taxes $ 130,132 $ 104,427 March 31, December 31, Assets Fluid & Metering Technologies $ 1,138,501 $ 1,101,580 Health & Science Technologies 1,339,090 1,323,373 Fire & Safety/Diversified Products 771,702 744,515 Corporate office 236,166 230,160 Total assets $ 3,485,459 $ 3,399,628 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue IDEX is an applied solutions company specializing in the manufacture of fluid and metering technologies, health and science technologies, and fire, safety and other diversified products built to customers’ specifications. The Company’s products include industrial pumps, compressors, flow meters, injectors and valves, and related controls for use in a wide variety of process applications; precision fluidics solutions, including pumps, valves, degassing equipment, corrective tubing, fittings, and complex manifolds, optical filters and specialty medical equipment and devices for use in life science applications; precision-engineered equipment for dispensing, metering and mixing paints; and engineered products for industrial and commercial markets, including fire and rescue, transportation equipment, oil & gas, electronics and communications. The Company’s revenue is accounted for under ASC 606, Revenue from Contracts with Customers , which we adopted on January 1, 2018 using the modified retrospective method. Revenue is recognized when control of the promised products or services is transferred to our customers in an amount that reflect the consideration we expect to be entitled to in exchange for transferring those products or providing those services. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We determine the appropriate revenue recognition for our contracts with customers by analyzing the type, terms and conditions of each contract or arrangement with a customer. Disaggregation of Revenue We have a comprehensive offering of products, including technologies, built to customers’ specifications that are sold in niche markets throughout the world. We disaggregate our revenue from contracts with customers by reporting unit and geographical region for each of our segments as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Geographical region is based on the location of the customer. The following tables present our revenue disaggregated by reporting unit and geographical region. Revenue by reporting unit was as follows: Three Months Ended Energy $ 38,759 Valves 26,029 Water 58,840 Pumps 80,666 Agriculture 28,039 Intersegment elimination (72 ) Fluid & Metering Technologies 232,261 Scientific Fluidics & Optics 99,507 Sealing Solutions 53,702 Gast 28,512 Micropump 9,298 Material Processing Technologies 30,056 Intersegment elimination (108 ) Health & Science Technologies 220,967 Fire & Safety 96,212 Band-It 27,474 Dispensing 35,487 Intersegment elimination (77 ) Fire & Safety/Diversified Products 159,096 Total net sales $ 612,324 Revenue by geographical region was as follows: Three Months Ended March 31, 2018 FMT HST FSDP IDEX U.S. $ 133,153 $ 93,808 $ 72,497 $ 299,458 Europe 43,599 73,779 47,119 164,497 Asia 26,398 44,548 24,233 95,179 Rest of world (1) 29,183 8,940 15,324 53,447 Intersegment elimination (72 ) (108 ) (77 ) (257 ) Total net sales $ 232,261 $ 220,967 $ 159,096 $ 612,324 (1) Rest of world includes: North America excluding U.S., South America, Middle East, Australia and Africa. Contract Balances The timing of revenue recognition, billings and cash collections results in customer receivables, advance payments and billings in excess of revenue recognized. Customer receivables include amounts billed and currently due from customers as well as unbilled amounts (contract assets) and are included in Receivables on our Condensed Consolidated Balance Sheets. Amounts are billed in accordance with contractual terms or as work progresses in accordance with contractual terms. Unbilled amounts arise when the timing of billing differs from the timing of revenue recognized, such as when contract provisions require specific milestones to be met before a customer can be billed. Unbilled amounts primarily relate to performance obligations satisfied over time when the cost-to-cost method is utilized and the revenue recognized exceeds the amount billed to the customer as there is not yet a right to payment in accordance with contractual terms. Unbilled amounts are recorded as a contract asset when the revenue associated with the contract is recognized prior to billing and derecognized when billed in accordance with the terms of the contract. Customer receivables are recorded at face amounts less an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses as a result of customers’ inability to make required payments. Management evaluates the aging of the customer receivable balances, the financial condition of its customers, historical trends and the time outstanding of specific balances to estimate the amount of customer receivables that may not be collected in the future and records the appropriate provision. The composition of Customer receivables was as follows: March 31, 2018 January 1, 2018 Billed receivables $ 318,305 $ 285,800 Unbilled receivables 13,296 11,996 Total customer receivables $ 331,601 $ 297,796 Advance payments and billings in excess of revenue recognized are included in Deferred revenue which is classified as current or noncurrent based on the timing of when we expect to recognize revenue. The current portion is included in Accrued expenses and the noncurrent portion is included in Other noncurrent liabilities on our Condensed Consolidated Balance Sheets. Advance payments and billings in excess of revenue recognized represent contract liabilities and are recorded when customers remit contractual cash payments in advance of us satisfying performance obligations under contractual arrangements, including those with performance obligations satisfied over time. Billings in excess of revenue recognized primarily relate to performance obligations satisfied over time when the cost-to-cost method is utilized and revenue cannot yet be recognized as the Company has not completed the corresponding performance obligation. We generally receive advance payments from customers related to maintenance services which we recognize ratably over the service term. Contract liabilities are derecognized when revenue is recognized and the performance obligation is satisfied. The composition of Deferred revenue was as follows: March 31, 2018 January 1, 2018 Deferred revenue - current $ 12,586 $ 11,031 Deferred revenue - noncurrent 3,489 3,297 Total deferred revenue $ 16,075 $ 14,328 Performance Obligations A performance obligation is a promise in a contract to transfer a distinct product or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For our contracts that require complex design, manufacturing and installation activities that are not separately identifiable from other promises in the contract and, therefore, not distinct, the entire contract is accounted for as a single performance obligation. For our contracts that include distinct products or services that are substantially the same and have the same pattern of transfer to the customer over time, they are recognized as a series of distinct products or services. Certain of our contracts have multiple performance obligations for which we allocate the transaction price to each performance obligation using an estimate of the standalone selling price of each distinct product or service in the contract. For product sales, each product sold to a customer generally represents a distinct performance obligation. In such cases, the observable standalone sales are used to determine the standalone selling price. In certain cases, we may be required to estimate standalone selling price using the expected cost plus margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct product or service. Our performance obligations are satisfied at a point in time or over time as work progresses. Performance obligations are supported by contracts with customers that provide a framework for the nature of the distinct products, services or bundle of products and services. We define service revenue as revenue from activities that are not associated with the design, development or manufacture of a product or the delivery of a software license. Revenue from products and services transferred to customers at a point in time represented 95% of our revenue in the first three months of 2018. The revenue recognized at a point in time relates to the sale of the majority of our products. Revenue on these contracts is recognized when obligations under the terms of the contract with our customer are satisfied. Generally, this occurs with the transfer of control of the asset, which is in line with shipping terms. Revenue from products and services transferred to customers over time represented 5% of our revenue in the first three months of 2018. Revenue earned by certain business units within the Water, Energy, Material Processing Technologies (“MPT”) and Dispensing reporting units is recognized over time because control transfers continuously to our customers. When accounting for over-time contracts, we use an input measure to determine the extent of progress towards completion of the performance obligation. For certain business units within the Water, Energy and MPT reporting units, revenue is recognized over time as work is performed based on the relationship between actual costs incurred to date for each contract and the total estimated costs for such contract at completion of the performance obligation (i.e. the cost-to-cost method). We believe this measure of progress best depicts the transfer of assets to the customer which occurs as we incur costs on our contracts. Incurred cost represents work performed, which corresponds with the transfer of control to the customer. Contract costs include labor, material and overhead. Contract estimates are based on various assumptions to project the outcome of future events. These assumptions include labor productivity and availability; the complexity of the work to be performed; the cost and availability of materials; the performance of subcontractors; and the availability and timing of funding from the customer. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. For certain business units within the Energy and Dispensing reporting units, revenue is recognized ratably over the contract term. As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our estimates regularly. Due to uncertainties inherent in the estimation process, it is reasonably possible that completion costs, including those arising from contract penalty provisions and final contract settlements, will be revised. Such revisions to costs and income are recognized in the period in which the revisions are determined as a cumulative catch-up adjustment. The impact of the adjustment on profit recorded to date on a contract is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance are recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize provisions for estimated losses on uncompleted contracts in the period in which such losses are determined. The Company records allowances for discounts, product returns and customer incentives at the time of sale as a reduction of revenue as such allowances can be reliably estimated based on historical experience and known trends. The Company also offers product warranties (primarily assurance-type) and accrues its estimated exposure for warranty claims at the time of sale based upon the length of the warranty period, warranty costs incurred and any other related information known to the Company. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Earnings per common share (“EPS”) is 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 and performance share units. ASC 260, Earnings Per Share, concludes 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, EPS was computed using the two-class method prescribed by ASC 260. Basic weighted average shares outstanding reconciles to diluted weighted average shares outstanding as follows: Three Months Ended 2018 2017 Basic weighted average common shares outstanding 76,419 76,115 Dilutive effect of stock options, restricted stock and performance share units 1,320 779 Diluted weighted average common shares outstanding 77,739 76,894 Options to purchase approximately 0.3 million and 0.3 million shares of common stock for the three months ended March 31, 2018 and 2017 , respectively, were not included in the computation of diluted EPS because the effect of their inclusion would have been antidilutive. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories as of March 31, 2018 and December 31, 2017 were: March 31, December 31, Raw materials and component parts $ 180,440 $ 169,676 Work in process 37,149 33,668 Finished goods 66,287 56,380 Total inventories $ 283,876 $ 259,724 Inventories are stated at the lower of cost or net realizable value. Cost, which includes material, labor and factory overhead, is determined on a FIFO basis. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the three months ended March 31, 2018 , by reportable business segment, were as follows: FMT HST FSDP IDEX Balance at December 31, 2017 $ 586,064 $ 740,032 $ 378,062 $ 1,704,158 Foreign currency translation 3,661 8,879 4,953 17,493 Acquisition adjustments — 1,117 — 1,117 Balance at March 31, 2018 $ 589,725 $ 750,028 $ 383,015 $ 1,722,768 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. In the first three months of 2018 , there were no events or circumstances that would have required an interim impairment test. 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, 2017, all reporting units had fair values in excess of their carrying values. The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset at March 31, 2018 and December 31, 2017 : At March 31, 2018 At December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Weighted Average Life Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets: Patents $ 9,644 $ (7,355 ) $ 2,289 11 $ 9,633 $ (7,143 ) $ 2,490 Trade names 118,575 (52,945 ) 65,630 16 117,206 (50,604 ) 66,602 Customer relationships 308,857 (120,749 ) 188,108 13 317,316 (124,566 ) 192,750 Unpatented technology 92,759 (31,743 ) 61,016 13 91,166 (29,428 ) 61,738 Other 700 (455 ) 245 10 839 (573 ) 266 Total amortized intangible assets 530,535 (213,247 ) 317,288 536,160 (212,314 ) 323,846 Indefinite-lived intangible assets: Banjo trade name 62,100 — 62,100 62,100 — 62,100 Akron Brass trade name 28,800 — 28,800 28,800 — 28,800 Total intangible assets $ 621,435 $ (213,247 ) $ 408,188 $ 627,060 $ (212,314 ) $ 414,746 The Banjo trade name and the Akron Brass trade name are indefinite-lived intangible assets which are tested for impairment on an annual basis in accordance with ASC 350 or more frequently if events or changes in circumstances indicate that the assets might be impaired. In the first three months of 2018 , there were no events or circumstances that would have required an interim impairment test. The Company uses the relief-from-royalty method, a form of the income approach, to determine the fair value of these trade names. The relief-from-royalty method is dependent on a number of significant management assumptions, including estimates of revenues, royalty rates and discount rates. Amortization of intangible assets was $10.9 million and $11.8 million for the three months ended March 31, 2018 and 2017, respectively. Based on the intangible asset balances as of March 31, 2018 , amortization expense is expected to approximate $28.1 million for the remaining nine months of 2018 , $35.8 million in 2019 , $35.0 million in 2020 , $33.7 million in 2021 and $32.0 million in 2022 . |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses The components of accrued expenses as of March 31, 2018 and December 31, 2017 were: March 31, December 31, Payroll and related items $ 60,647 $ 75,869 Management incentive compensation 6,637 24,320 Income taxes payable 24,800 28,033 Insurance 9,764 9,424 Warranty 6,239 6,281 Deferred revenue 12,586 11,031 Restructuring 3,415 4,180 Liability for uncertain tax positions 1,484 1,745 Accrued interest 10,440 1,759 Other 22,144 22,063 Total accrued expenses $ 158,156 $ 184,705 |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | Other Noncurrent Liabilities The components of other noncurrent liabilities as of March 31, 2018 and December 31, 2017 were: March 31, December 31, Pension and retiree medical obligations $ 100,491 $ 99,646 Transition tax payable 27,877 27,877 Liability for uncertain tax positions 1,047 1,047 Deferred revenue 3,489 3,297 Liability for construction of new leased facility 5,801 — Other 22,210 23,818 Total other noncurrent liabilities $ 160,915 $ 155,685 |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Borrowings at March 31, 2018 and December 31, 2017 consisted of the following: March 31, December 31, Revolving Facility $ 11,079 $ 10,740 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 100,000 100,000 3.37% Senior Notes, due June 2025 100,000 100,000 Other borrowings 2,409 1,446 Total borrowings 863,488 862,186 Less current portion 835 258 Less deferred debt issuance costs 2,052 2,204 Less unaccreted debt discount 870 936 Total long-term borrowings $ 859,731 $ 858,788 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 the 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 the 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 replaced 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 March 31, 2018 , the applicable margin was 1.10% . Given the fact that LIBOR was negative at March 31, 2018, the default interest rate is equal to the applicable margin, resulting in a weighted average interest rate of 1.12% at March 31, 2018 . 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 March 31, 2018 , $11.1 million was outstanding under the Revolving Facility, with $8.0 million of outstanding letters of credit, resulting in net available borrowing capacity under the Revolving Facility at March 31, 2018 of approximately $680.9 million . 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 , which is the ratio of the Company’s consolidated total debt to its consolidated EBITDA. At March 31, 2018 , 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 | 3 Months Ended |
Mar. 31, 2018 | |
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 types of cash flow hedges the Company enters into include foreign currency exchange contracts designed to minimize the earnings impact on certain intercompany loans 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. 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. See Note 14 for the amount of loss reclassified into income for interest rate contracts for the three months ended March 31, 2018 and 2017 . As of March 31, 2018 , the Company did not have any interest rate contracts outstanding. In 2010 and 2011, the Company entered into two separate forward starting interest rate exchange agreements 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 $6.4 million of the pre-tax amount included in accumulated other comprehensive income (loss) in shareholders’ equity at March 31, 2018 will be recognized in net income over the next 12 months as the underlying hedged transactions are realized. At March 31, 2018 , the Company had outstanding foreign currency exchange contracts with a combined notional value of €180 million that have not been designated as hedges for accounting purposes. These contracts are used to minimize the economic impact and reduce the variability on earnings due to foreign currency fluctuations between the Swiss Franc and the Euro associated with certain intercompany loans that were established in conjunction with the SFC Koenig acquisition. The change in the fair value of the foreign currency exchange contracts and the corresponding foreign currency gain or loss on the revaluation of the intercompany loans are both recorded through earnings each period as incurred within Other (income) expense - net in the Condensed Consolidated Statements of Operations. During the three months ended March 31, 2018 and 2017, the Company recorded gains of $1.2 million and $0.4 million , respectively, within Other (income) expense - net related to these foreign currency exchange contracts. During the three months ended March 31, 2018 and 2017, the Company recorded a foreign currency transaction loss of $1.2 million and $0.4 million , respectively, within Other (income) expense - net related to these intercompany loans. The foreign currency exchange contracts are settled in cash approximately every 90 days, with the proceeds recorded within Financing Activities on the Condensed Consolidated Statements of Cash Flows. For the three months ended March 31, 2018 , the Company received $6.6 million in settlement of the foreign currency exchange contracts. The Company repaid the underlying intercompany loans in April 2018 and thus did not extend the foreign currency exchange contracts when they expired. 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. The following table sets forth the fair value amounts of derivative instruments held by the Company as of March 31, 2018 and December 31, 2017 : Fair Value Assets March 31, 2018 December 31, 2017 Balance Sheet Caption Foreign currency exchange contracts $ 362 $ 5,779 Other current assets |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and December 31, 2017 : Basis of Fair Value Measurements Balance at Level 1 Level 2 Level 3 Available for sale securities $ 6,771 $ 6,771 $ — $ — Foreign currency exchange contracts 362 — 362 — Basis of Fair Value Measurements Balance at Level 1 Level 2 Level 3 Available for sale securities $ 6,742 $ 6,742 $ — $ — Foreign currency exchange contracts 5,779 — 5,779 — There were no transfers of assets or liabilities between Level 1 and Level 2 during the three months ended March 31, 2018 or the year ended December 31, 2017 . The carrying values 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 March 31, 2018 , 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 $874.2 million compared to the carrying value of $860.6 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 | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the first quarter of 2018, the Company recorded restructuring costs of $1.6 million as part of 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 and facility rationalization. The restructuring costs included severance benefits and exit costs. The costs incurred related to these initiatives were included in Restructuring expenses in the Condensed Consolidated Statements of Operations while the related accruals were included in Accrued expenses in the Condensed Consolidated Balance Sheets. Severance costs primarily consisted of severance benefits through payroll continuation, COBRA subsidies, outplacement services, conditional separation costs and employer tax liabilities, while exit costs primarily consisted of asset disposals or impairments and lease exit and contract termination costs. Pre-tax restructuring expenses by segment for the three months ended March 31, 2018 are as follows: Severance Costs Exit Costs Total Fluid & Metering Technologies $ 143 $ — $ 143 Health & Science Technologies 967 92 1,059 Fire & Safety/Diversified Products 100 — 100 Corporate/Other 340 — 340 Total restructuring costs $ 1,550 $ 92 $ 1,642 Restructuring accruals of $3.4 million and $4.2 million at March 31, 2018 and December 31, 2017 , respectively, are recorded in Accrued expenses in the Condensed Consolidated Balance Sheets. Severance benefits are expected to be paid by the end of the year using cash from operations. The changes in the restructuring accrual for the three months ended March 31, 2018 are as follows: Restructuring Balance at January 1, 2018 $ 4,180 Restructuring expenses 1,642 Payments, utilization and other (2,407 ) Balance at March 31, 2018 $ 3,415 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2018 | |
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 $ 27,578 $ — $ 27,578 $ 21,050 $ — $ 21,050 Pension and other postretirement adjustments 1,918 (505 ) 1,413 1,676 (552 ) 1,124 Reclassification adjustments for derivatives 1,632 (371 ) 1,261 1,677 (635 ) 1,042 Total other comprehensive income (loss) $ 31,128 $ (876 ) $ 30,252 $ 24,403 $ (1,187 ) $ 23,216 The following table summarizes the amounts reclassified from accumulated other comprehensive income (loss) to net income during the three months ended March 31, 2018 and 2017 : Three Months Ended 2018 2017 Pension and other postretirement plans: Amortization of service cost $ 1,918 $ 1,676 Total before tax 1,918 1,676 Provision for income taxes (505 ) (552 ) Total net of tax $ 1,413 $ 1,124 Derivatives: Reclassification adjustments $ 1,632 $ 1,677 Total before tax 1,632 1,677 Provision for income taxes (371 ) (635 ) Total net of tax $ 1,261 $ 1,042 The Company recognizes the service cost component in both Selling, general and administrative expenses and Cost of sales in the Condensed Consolidated Statements of Operations, depending on the functional area of the underlying employees included in the plans. |
Common and Preferred Stock
Common and Preferred Stock | 3 Months Ended |
Mar. 31, 2018 | |
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 under the program will be funded with future cash flow generation or borrowings available under the Revolving Facility. During the three months ended March 31, 2017 , the Company repurchased a total of 82 thousand shares at a cost of $7.6 million , of which $0.6 million was settled in April 2017. The Company did not repurchase any shares during the three months ended March 31, 2018. As of March 31, 2018 , the amount of share repurchase authorization remaining was $550.9 million . At March 31, 2018 and December 31, 2017 , 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 March 31, 2018 or December 31, 2017 . |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
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 2018 2017 Weighted average fair value of grants $37.96 $24.11 Dividend yield 1.07% 1.45% Volatility 28.49% 29.41% Risk-free interest rate 2.01% - 3.17% 0.82% - 3.04% Expected life (in years) 5.78 5.83 Total compensation cost for stock options is as follows: Three Months Ended 2018 2017 Cost of goods sold $ 206 $ 186 Selling, general and administrative expenses 2,524 2,284 Total expense before income taxes 2,730 2,470 Income tax benefit (470 ) (747 ) Total expense after income taxes $ 2,260 $ 1,723 A summary of the Company’s stock option activity as of March 31, 2018 , and changes during the three months ended March 31, 2018 , are presented in the following table: Stock Options Shares Weighted Average Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2018 1,924,683 $ 71.07 6.87 $ 117,209,218 Granted 300,495 138.12 Exercised (104,754 ) 62.91 Forfeited (16,746 ) 90.72 Outstanding at March 31, 2018 2,103,678 $ 80.90 7.12 $ 129,612,247 Vested and expected to vest as of March 31, 2018 1,967,982 $ 79.10 6.99 $ 124,784,752 Exercisable at March 31, 2018 1,149,993 $ 63.95 5.77 $ 90,343,139 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 March 31, 2018 , and changes during the three months ended March 31, 2018 , are presented as follows: Restricted Stock Shares Weighted-Average Unvested at January 1, 2018 182,023 $ 83.37 Granted 28,555 138.06 Vested (52,650 ) 78.82 Forfeited (3,250 ) 84.78 Unvested at March 31, 2018 154,678 $ 94.98 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 2018 2017 Cost of goods sold $ 156 $ 152 Selling, general and administrative expenses 1,289 1,253 Total expense before income taxes 1,445 1,405 Income tax benefit (257 ) (439 ) Total expense after income taxes $ 1,188 $ 966 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 March 31, 2018 , and changes during the three months ended March 31, 2018 , are presented in the following table: Cash-Settled Restricted Stock Shares Weighted-Average Unvested at January 1, 2018 94,730 $ 131.97 Granted 25,880 138.12 Vested (24,935 ) 136.83 Forfeited (1,310 ) 142.51 Unvested at March 31, 2018 94,365 $ 142.51 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 2018 2017 Cost of goods sold $ 413 $ 248 Selling, general and administrative expenses 1,204 430 Total expense before income taxes 1,617 678 Income tax benefit (159 ) (142 ) Total expense after income taxes $ 1,458 $ 536 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 Months Ended 2018 2017 Weighted average fair value of grants $216.59 $115.74 Dividend yield —% —% Volatility 17.42% 17.36% Risk-free interest rate 2.40% 1.45% Expected life (in years) 2.85 2.85 A summary of the Company’s performance share unit activity as of March 31, 2018 , and changes during the three months ended March 31, 2018 , are presented in the following table: Performance Share Units Shares Weighted-Average Unvested at January 1, 2018 136,870 $ 113.81 Granted 52,375 216.59 Vested — — Forfeited (2,385 ) 134.85 Unvested at March 31, 2018 186,860 $ 142.57 On December 31, 2017, 62,755 performance share units vested. Based on the Company’s relative total shareholder return rank during the three year period ended December 31, 2017, the Company achieved a 239% payout factor and issued 143,897 shares in February 2018. Total compensation cost for performance share units is as follows: Three Months Ended 2018 2017 Cost of goods sold $ — $ — Selling, general and administrative expenses 1,860 1,606 Total expense before income taxes 1,860 1,606 Income tax benefit (317 ) (507 ) Total expense after income taxes $ 1,543 $ 1,099 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 Condensed Consolidated Statements of Operations is consistent with classification of cash compensation for the same employees. As of March 31, 2018 , there was $19.0 million of total unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 1.6 years, $6.5 million of total unrecognized compensation cost related to restricted stock that is expected to be recognized over a weighted-average period of 1.2 years, $5.9 million of total unrecognized compensation cost related to cash-settled restricted shares that is expected to be recognized over a weighted-average period of 1.2 years, and $13.7 million of total unrecognized compensation cost related to performance share units that is expected to be recognized over a weighted-average period of 1.2 years. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [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 March 31, 2018 2017 U.S. Non-U.S. U.S. Non-U.S. Service cost $ 254 $ 545 $ 254 $ 482 Interest cost 653 361 660 308 Expected return on plan assets (983 ) (290 ) (944 ) (264 ) Net amortization 685 330 642 382 Net periodic benefit cost $ 609 $ 946 $ 612 $ 908 Other Postretirement Benefits Three Months Ended March 31, 2018 2017 Service cost $ 168 $ 152 Interest cost 203 204 Net amortization (184 ) (198 ) Net periodic benefit cost $ 187 $ 158 The Company previously disclosed in its financial statements for the year ended December 31, 2017 , that it expected to contribute approximately $5.5 million to its defined benefit plans and $0.1 million to its other postretirement benefit plans in 2018 . During the first three months of 2018, the Company contributed a total of $0.7 million to fund these plans and expects to contribute an additional $5.0 million to $20.0 million in the remaining nine months of 2018. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings The Company and certain of its subsidiaries are involved in pending and threatened legal, regulatory and other proceedings arising in the ordinary course of business. These proceedings may pertain to matters such as product liability or contract disputes, and may also involve governmental inquiries, inspections, audits or investigations relating to issues such as tax matters, intellectual property, environmental, health and safety issues, governmental regulations, employment and other matters. Although the results of such legal proceedings cannot be predicted with certainty, the Company believes that the ultimate disposition of these matters will not have a material adverse effect, individually or in the aggregate, on the Company’s business, financial condition, results of operations or cash flows. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
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 increased to $31.2 million in the three months ended March 31, 2018 from $28.5 million in the same period of 2017 . The effective tax rate decreased to 24.0% for the three months ended March 31, 2018 compared to 27.3% in the same period of 2017 due to the enactment of the Tax Cuts and Jobs Act (the “Tax Act”) as well as excess tax benefits related to share-based compensation, partially offset by the new Global Intangible Low-Taxed Income (“GILTI”) provision, discrete income tax expense due to the impact of IRS Revenue Procedure 2018-17 and IRS Notice 2018-26 as well as the mix of global pre-tax income among jurisdictions. Because the changes included in the Tax Act are broad and complex, on December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which provides guidance on accounting for tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate to be included in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provision of the tax laws that were in effect immediately before the enactment of the Tax Act. While the Company is able to make reasonable estimates of the impact of the reduction in corporate rate and the deemed repatriation transition tax, the final impact of the Tax Act may differ from these estimates, due to, among other things, changes in the Company’s interpretations and assumptions, additional guidance that may be issued by the either the Internal Revenue Service or the U.S. Department of Treasury, and actions the Company may take. The Company is continuing to gather additional information to determine the final impact. While the Company was able to make reasonable estimates of certain impacts (and therefore, recorded provisional adjustments), the Company’s accounting for the following elements of the Tax Act, for the three months ended March 31, 2018, is incomplete as follows: Reduction of U.S. federal corporate tax rate : The Tax Act reduces the corporate tax rate to 21%, effective January 1, 2018. The Company recorded a provisional decrease in its deferred tax liability of $40.6 million , with a corresponding adjustment to deferred income tax benefit of $40.6 million for the year ended December 31, 2017. While the Company is able to make a reasonable estimate of the impact of the reduction in the corporate rate, it may be affected by other analyses related to the Tax Act which are still ongoing, including, but not limited to, the state tax effect of adjustments made to federal temporary differences. For the three months ended March 31, 2018, the Company has not made adjustments to the deferred tax liability and corresponding deferred income tax benefit recorded December 31, 2017. Deemed Repatriation Transition Tax : The Deemed Repatriation Transition Tax (“Transition Tax”) is a tax on previously untaxed accumulated and current earnings and profits of certain foreign subsidiaries. To determine the amount of the Transition Tax, the Company must determine, in addition to other factors, the amount of post-1986 earnings and profits of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. The Company was able to make a reasonable estimate of the Transition Tax and recorded a provisional Transition Tax obligation of $30.3 million for the year ended December 31, 2017. During the past quarter, the IRS released Revenue Procedure 2018-17 and Notice 2018-26 which increased the provisional Transition Tax by $0.1 million . Therefore, as of March 31, 2018 the Company had recorded a provisional Transition Tax obligation of $30.4 million . The Company is continuing to gather additional information to more precisely compute the amount of Transition Tax. Removal of permanent reinvestment representation on certain undistributed foreign earnings : As a result of the enactment of the Tax Act, the Company has decided to remove the Permanent Reinvestment Representation with respect to certain of its subsidiaries in Canada, Italy, and Germany, as of December 31, 2017. Under the mandatory repatriation provisions of the Tax Act, post-1986 undistributed earnings were taxed in the U.S. as if they were distributed before December 31, 2017. However, with the removal of the permanent reinvestment representation with respect to select subsidiaries in Canada, Italy, and Germany, the non-creditable withholding taxes and any local country taxes associated with future dividends from these subsidiaries are required to be recorded as deferred tax liabilities as of the end of 2017. The Company recorded a provisional increase in its deferred tax liability of $9.2 million , with a corresponding adjustment to deferred income tax expense of $9.2 million for the year ending December 31, 2017. The Company is considering removal of the permanent reinvestment representation with respect to its remaining subsidiaries, which it estimates would result in an additional $8.2 million increase in its deferred tax liability. For the three months ended March 31, 2018, the Company has not made changes to the provisional amount relating to the permanent reinvestment representations made at December 31, 2017. Global intangible low taxed income : The Tax Act creates a new requirement that certain income (i.e.,GILTI) earned by controlled foreign corporations (“CFCs”) must be included currently in the gross income of the CFCs’ U.S. shareholder. GILTI is the excess of the U.S. shareholder’s “net CFC tested income” over the net deemed intangible income return, which is currently defined as the excess of (1) 10% of the aggregate of the U.S. shareholder’s pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder over (2) the amount of certain interest expense taken into account in the determination of net CFC-tested income. In January 2018, FASB released guidance on the accounting for the GILTI tax. The guidance indicates that either accounting for deferred taxes related to GILTI tax inclusions or treating the GILTI tax as a period cost are acceptable methods subject to an accounting policy election. Because of the complexity of the new GILTI tax rules, the Company is continuing to evaluate this provision of the Tax Act and the application of ASC 740. 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 $1.5 million . |
Basis of Presentation and Sig28
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which requires an entity to disclose its accounting policy related to releasing income tax effects from accumulated other comprehensive income (loss), whether it has elected to reclassify the stranded tax effects in accumulated other comprehensive income (loss) to retained earnings in the statement of shareholder’s equity and if it has elected to reclassify the stranded tax effects in accumulated other comprehensive income (loss) to retained earnings, what the reclassification encompasses. The Company early adopted this standard on a retrospective basis on January 1, 2018. The adoption resulted in an increase of $6.4 million to Retained earnings and a corresponding change of $6.4 million to Accumulated other comprehensive income (loss) at January 1, 2018. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business , which clarifies the definition of a business and assists entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. Under this guidance, when substantially all of the fair value of gross assets acquired is concentrated in a single asset or group of similar assets, the assets acquired would not represent a business. In addition, in order to be considered a business, an acquisition would have to include at a minimum an input and a substantive process that together significantly contribute to the ability to create an output. The amended guidance also narrows the definition of outputs by more closely aligning it with how outputs are described in FASB guidance for revenue recognition. The Company adopted this standard on January 1, 2018. The adoption of this standard did not have a material impact on our condensed consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory , which amends Accounting Standards Codification (“ASC”) 740, Income Taxes . This ASU requires that the income tax consequences of an intra-entity asset transfer other than inventory are recognized at the time of the transfer. An entity will continue to recognize the income tax consequences of an intercompany transfer of inventory when the inventory is sold to a third party. The Company adopted this standard on a modified-retrospective basis on January 1, 2018. The adoption resulted in a decrease of $7.3 million to Other current assets, a decrease of $6.7 million to Deferred income taxes and a decrease of $0.6 million to Retained earnings at January 1, 2018. 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. The Company adopted this standard on January 1, 2018. The adoption of this standard did not have a material impact on our condensed consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which replaces numerous requirements in U.S. GAAP, including industry-specific requirements, and provides companies with a new five-step model for recognizing revenue from contracts with customers. 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. 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 ; ASU 2016-12 , Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients ; and ASU 2016-20 , Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. In 2016, we established an implementation team and analyzed the impact of the standard by surveying business units and performing extensive contract reviews to identify potential differences that may result from applying the requirements of the new standard. The contract reviews generally supported the recognition of revenue at a point in time, which is consistent with the current revenue recognition model used by most of our business units. As a result, revenue recognition remains unchanged under the new standard. For our business units that currently recognize revenue under a percentage of completion model, revenue recognition also remains unchanged as the contract reviews supported the recognition of revenue over time. The Company has implemented the appropriate changes to its processes, systems and controls to comply with the new guidance. The Company adopted this standard on January 1, 2018 using the modified retrospective approach applied to contracts that were not completed as of January1, 2018. The adoption of this standard did not have an impact on our condensed consolidated financial statements. The Company elected the following practical expedients: significant financing component, sales tax presentation, contract costs, shipping and handling activities, and disclosures. See Note 4 for further details on revenue. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases , which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The standard 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. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. This standard is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Companies are permitted to adopt the standard early and a modified retrospective application is permitted. The new guidance requires adoption on a retrospective basis unless it is impracticable to apply, in which case the Company would be required to apply the amendments prospectively as of the earliest date practicable.The Company is currently evaluating the impact of adopting the new guidance on its condensed consolidated financial statements. |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 sales, operating income, and operating margin are the primary financial measures. Intersegment sales are accounted for at fair value as if the sales were to third parties. Three Months Ended 2018 2017 Net sales Fluid & Metering Technologies External customers $ 232,261 $ 216,655 Intersegment sales 72 115 Total segment sales 232,333 216,770 Health & Science Technologies External customers 220,967 199,575 Intersegment sales 108 104 Total segment sales 221,075 199,679 Fire & Safety/Diversified Products External customers 159,096 137,322 Intersegment sales 77 125 Total segment sales 159,173 137,447 Intersegment elimination (257 ) (344 ) Total net sales $ 612,324 $ 553,552 Operating income Fluid & Metering Technologies $ 66,166 $ 57,813 Health & Science Technologies 51,806 42,238 Fire & Safety/Diversified Products 39,554 32,626 Corporate office (20,843 ) (17,006 ) Total operating income 136,683 115,671 Interest expense 11,000 11,552 Other (income) expense - net (4,449 ) (308 ) Income before income taxes $ 130,132 $ 104,427 March 31, December 31, Assets Fluid & Metering Technologies $ 1,138,501 $ 1,101,580 Health & Science Technologies 1,339,090 1,323,373 Fire & Safety/Diversified Products 771,702 744,515 Corporate office 236,166 230,160 Total assets $ 3,485,459 $ 3,399,628 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Revenue by reporting unit was as follows: Three Months Ended Energy $ 38,759 Valves 26,029 Water 58,840 Pumps 80,666 Agriculture 28,039 Intersegment elimination (72 ) Fluid & Metering Technologies 232,261 Scientific Fluidics & Optics 99,507 Sealing Solutions 53,702 Gast 28,512 Micropump 9,298 Material Processing Technologies 30,056 Intersegment elimination (108 ) Health & Science Technologies 220,967 Fire & Safety 96,212 Band-It 27,474 Dispensing 35,487 Intersegment elimination (77 ) Fire & Safety/Diversified Products 159,096 Total net sales $ 612,324 |
Schedule of External Net Sales Disaggregated by Geography | Revenue by geographical region was as follows: Three Months Ended March 31, 2018 FMT HST FSDP IDEX U.S. $ 133,153 $ 93,808 $ 72,497 $ 299,458 Europe 43,599 73,779 47,119 164,497 Asia 26,398 44,548 24,233 95,179 Rest of world (1) 29,183 8,940 15,324 53,447 Intersegment elimination (72 ) (108 ) (77 ) (257 ) Total net sales $ 232,261 $ 220,967 $ 159,096 $ 612,324 (1) Rest of world includes: North America excluding U.S., South America, Middle East, Australia and Africa. |
Schedule of Contract with Customer, Asset and Liability | The composition of Customer receivables was as follows: March 31, 2018 January 1, 2018 Billed receivables $ 318,305 $ 285,800 Unbilled receivables 13,296 11,996 Total customer receivables $ 331,601 $ 297,796 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The composition of Deferred revenue was as follows: March 31, 2018 January 1, 2018 Deferred revenue - current $ 12,586 $ 11,031 Deferred revenue - noncurrent 3,489 3,297 Total deferred revenue $ 16,075 $ 14,328 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Basic Weighted Average Shares Reconciles to Diluted Weighted Average Shares | Basic weighted average shares outstanding reconciles to diluted weighted average shares outstanding as follows: Three Months Ended 2018 2017 Basic weighted average common shares outstanding 76,419 76,115 Dilutive effect of stock options, restricted stock and performance share units 1,320 779 Diluted weighted average common shares outstanding 77,739 76,894 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories as of March 31, 2018 and December 31, 2017 were: March 31, December 31, Raw materials and component parts $ 180,440 $ 169,676 Work in process 37,149 33,668 Finished goods 66,287 56,380 Total inventories $ 283,876 $ 259,724 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the three months ended March 31, 2018 , by reportable business segment, were as follows: FMT HST FSDP IDEX Balance at December 31, 2017 $ 586,064 $ 740,032 $ 378,062 $ 1,704,158 Foreign currency translation 3,661 8,879 4,953 17,493 Acquisition adjustments — 1,117 — 1,117 Balance at March 31, 2018 $ 589,725 $ 750,028 $ 383,015 $ 1,722,768 |
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 asset at March 31, 2018 and December 31, 2017 : At March 31, 2018 At December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Weighted Average Life Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets: Patents $ 9,644 $ (7,355 ) $ 2,289 11 $ 9,633 $ (7,143 ) $ 2,490 Trade names 118,575 (52,945 ) 65,630 16 117,206 (50,604 ) 66,602 Customer relationships 308,857 (120,749 ) 188,108 13 317,316 (124,566 ) 192,750 Unpatented technology 92,759 (31,743 ) 61,016 13 91,166 (29,428 ) 61,738 Other 700 (455 ) 245 10 839 (573 ) 266 Total amortized intangible assets 530,535 (213,247 ) 317,288 536,160 (212,314 ) 323,846 Indefinite-lived intangible assets: Banjo trade name 62,100 — 62,100 62,100 — 62,100 Akron Brass trade name 28,800 — 28,800 28,800 — 28,800 Total intangible assets $ 621,435 $ (213,247 ) $ 408,188 $ 627,060 $ (212,314 ) $ 414,746 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses | The components of accrued expenses as of March 31, 2018 and December 31, 2017 were: March 31, December 31, Payroll and related items $ 60,647 $ 75,869 Management incentive compensation 6,637 24,320 Income taxes payable 24,800 28,033 Insurance 9,764 9,424 Warranty 6,239 6,281 Deferred revenue 12,586 11,031 Restructuring 3,415 4,180 Liability for uncertain tax positions 1,484 1,745 Accrued interest 10,440 1,759 Other 22,144 22,063 Total accrued expenses $ 158,156 $ 184,705 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Noncurrent Liabilities | The components of other noncurrent liabilities as of March 31, 2018 and December 31, 2017 were: March 31, December 31, Pension and retiree medical obligations $ 100,491 $ 99,646 Transition tax payable 27,877 27,877 Liability for uncertain tax positions 1,047 1,047 Deferred revenue 3,489 3,297 Liability for construction of new leased facility 5,801 — Other 22,210 23,818 Total other noncurrent liabilities $ 160,915 $ 155,685 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | Borrowings at March 31, 2018 and December 31, 2017 consisted of the following: March 31, December 31, Revolving Facility $ 11,079 $ 10,740 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 100,000 100,000 3.37% Senior Notes, due June 2025 100,000 100,000 Other borrowings 2,409 1,446 Total borrowings 863,488 862,186 Less current portion 835 258 Less deferred debt issuance costs 2,052 2,204 Less unaccreted debt discount 870 936 Total long-term borrowings $ 859,731 $ 858,788 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table sets forth the fair value amounts of derivative instruments held by the Company as of March 31, 2018 and December 31, 2017 : Fair Value Assets March 31, 2018 December 31, 2017 Balance Sheet Caption Foreign currency exchange contracts $ 362 $ 5,779 Other current assets |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and December 31, 2017 : Basis of Fair Value Measurements Balance at Level 1 Level 2 Level 3 Available for sale securities $ 6,771 $ 6,771 $ — $ — Foreign currency exchange contracts 362 — 362 — Basis of Fair Value Measurements Balance at Level 1 Level 2 Level 3 Available for sale securities $ 6,742 $ 6,742 $ — $ — Foreign currency exchange contracts 5,779 — 5,779 — |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs | Pre-tax restructuring expenses by segment for the three months ended March 31, 2018 are as follows: Severance Costs Exit Costs Total Fluid & Metering Technologies $ 143 $ — $ 143 Health & Science Technologies 967 92 1,059 Fire & Safety/Diversified Products 100 — 100 Corporate/Other 340 — 340 Total restructuring costs $ 1,550 $ 92 $ 1,642 |
Schedule of Restructuring Reserve | The changes in the restructuring accrual for the three months ended March 31, 2018 are as follows: Restructuring Balance at January 1, 2018 $ 4,180 Restructuring expenses 1,642 Payments, utilization and other (2,407 ) Balance at March 31, 2018 $ 3,415 |
Other Comprehensive Income (L40
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 $ 27,578 $ — $ 27,578 $ 21,050 $ — $ 21,050 Pension and other postretirement adjustments 1,918 (505 ) 1,413 1,676 (552 ) 1,124 Reclassification adjustments for derivatives 1,632 (371 ) 1,261 1,677 (635 ) 1,042 Total other comprehensive income (loss) $ 31,128 $ (876 ) $ 30,252 $ 24,403 $ (1,187 ) $ 23,216 |
Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the amounts reclassified from accumulated other comprehensive income (loss) to net income during the three months ended March 31, 2018 and 2017 : Three Months Ended 2018 2017 Pension and other postretirement plans: Amortization of service cost $ 1,918 $ 1,676 Total before tax 1,918 1,676 Provision for income taxes (505 ) (552 ) Total net of tax $ 1,413 $ 1,124 Derivatives: Reclassification adjustments $ 1,632 $ 1,677 Total before tax 1,632 1,677 Provision for income taxes (371 ) (635 ) Total net of tax $ 1,261 $ 1,042 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 2018 2017 Weighted average fair value of grants $37.96 $24.11 Dividend yield 1.07% 1.45% Volatility 28.49% 29.41% Risk-free interest rate 2.01% - 3.17% 0.82% - 3.04% Expected life (in years) 5.78 5.83 |
Schedule of Compensation Cost for Stock Options | Total compensation cost for stock options is as follows: Three Months Ended 2018 2017 Cost of goods sold $ 206 $ 186 Selling, general and administrative expenses 2,524 2,284 Total expense before income taxes 2,730 2,470 Income tax benefit (470 ) (747 ) Total expense after income taxes $ 2,260 $ 1,723 |
Schedule of Stock Option Activity | A summary of the Company’s stock option activity as of March 31, 2018 , and changes during the three months ended March 31, 2018 , are presented in the following table: Stock Options Shares Weighted Average Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2018 1,924,683 $ 71.07 6.87 $ 117,209,218 Granted 300,495 138.12 Exercised (104,754 ) 62.91 Forfeited (16,746 ) 90.72 Outstanding at March 31, 2018 2,103,678 $ 80.90 7.12 $ 129,612,247 Vested and expected to vest as of March 31, 2018 1,967,982 $ 79.10 6.99 $ 124,784,752 Exercisable at March 31, 2018 1,149,993 $ 63.95 5.77 $ 90,343,139 |
Schedule of Restricted Stock Activity | A summary of the Company’s restricted stock activity as of March 31, 2018 , and changes during the three months ended March 31, 2018 , are presented as follows: Restricted Stock Shares Weighted-Average Unvested at January 1, 2018 182,023 $ 83.37 Granted 28,555 138.06 Vested (52,650 ) 78.82 Forfeited (3,250 ) 84.78 Unvested at March 31, 2018 154,678 $ 94.98 |
Schedule of Compensation Cost for Restricted Stock | Total compensation cost for restricted shares is as follows: Three Months Ended 2018 2017 Cost of goods sold $ 156 $ 152 Selling, general and administrative expenses 1,289 1,253 Total expense before income taxes 1,445 1,405 Income tax benefit (257 ) (439 ) Total expense after income taxes $ 1,188 $ 966 |
Schedule of Unvested Cash-settled Restricted Stock Activity | A summary of the Company’s unvested cash-settled restricted stock activity as of March 31, 2018 , and changes during the three months ended March 31, 2018 , are presented in the following table: Cash-Settled Restricted Stock Shares Weighted-Average Unvested at January 1, 2018 94,730 $ 131.97 Granted 25,880 138.12 Vested (24,935 ) 136.83 Forfeited (1,310 ) 142.51 Unvested at March 31, 2018 94,365 $ 142.51 |
Schedule of Compensation Cost for Unvested Cash-settled Restricted Stock | Total compensation cost for cash-settled restricted stock is as follows: Three Months Ended 2018 2017 Cost of goods sold $ 413 $ 248 Selling, general and administrative expenses 1,204 430 Total expense before income taxes 1,617 678 Income tax benefit (159 ) (142 ) Total expense after income taxes $ 1,458 $ 536 |
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 Months Ended 2018 2017 Weighted average fair value of grants $216.59 $115.74 Dividend yield —% —% Volatility 17.42% 17.36% Risk-free interest rate 2.40% 1.45% Expected life (in years) 2.85 2.85 |
Schedule of Performance Shares Units Activity | A summary of the Company’s performance share unit activity as of March 31, 2018 , and changes during the three months ended March 31, 2018 , are presented in the following table: Performance Share Units Shares Weighted-Average Unvested at January 1, 2018 136,870 $ 113.81 Granted 52,375 216.59 Vested — — Forfeited (2,385 ) 134.85 Unvested at March 31, 2018 186,860 $ 142.57 |
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 2018 2017 Cost of goods sold $ — $ — Selling, general and administrative expenses 1,860 1,606 Total expense before income taxes 1,860 1,606 Income tax benefit (317 ) (507 ) Total expense after income taxes $ 1,543 $ 1,099 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
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 March 31, 2018 2017 U.S. Non-U.S. U.S. Non-U.S. Service cost $ 254 $ 545 $ 254 $ 482 Interest cost 653 361 660 308 Expected return on plan assets (983 ) (290 ) (944 ) (264 ) Net amortization 685 330 642 382 Net periodic benefit cost $ 609 $ 946 $ 612 $ 908 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of Net Periodic Benefit Cost for Defined Benefit Plans and Other Postretirement Plans | Other Postretirement Benefits Three Months Ended March 31, 2018 2017 Service cost $ 168 $ 152 Interest cost 203 204 Net amortization (184 ) (198 ) Net periodic benefit cost $ 187 $ 158 |
Basis of Presentation and Sig43
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other current assets | $ 43,781 | $ 74,203 | |
Deferred income taxes | 131,646 | 137,638 | |
Retained earnings | $ 2,162,663 | 2,057,915 | |
Accounting Standards Update 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adoption results | 0 | ||
Accounting Standards Update 2018-02 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adoption results | 6,435 | ||
Accounting Standards Update 2016-16 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adoption results | (645) | ||
Other current assets | $ (7,300) | ||
Deferred income taxes | 6,700 | ||
Retained earnings | $ (600) | ||
Accounting Standards Update 2016-16 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adoption results | (645) | ||
Adjustments for New Accounting Pronouncement | Accounting Standards Update 2018-02 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adoption results | (6,400) | ||
Adjustments for New Accounting Pronouncement | Accounting Standards Update 2018-02 | AOCI | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adoption results | $ 6,400 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Acquisitions (Details) - USD ($) $ in Thousands | Dec. 08, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,722,768 | $ 1,704,158 | ||
thinXXS Microtechnology AG (thinXXS) | ||||
Business Acquisition [Line Items] | ||||
Aggregate purchase price, cash paid | $ 38,200 | |||
Long-term debt | 1,200 | |||
Goodwill | 25,000 | |||
Intangible assets | $ 10,600 | |||
Selling, general and administrative expenses | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related transaction costs | $ 700 | $ 100 |
Acquisitions and Divestitures45
Acquisitions and Divestitures - Divestitures (Details) - USD ($) | Oct. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income tax expense | $ 31,174,000 | $ 28,528,000 | ||
Faure Herman subsidiary | Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of business | $ 21,800,000 | |||
Gain on sale of businesses - net | $ 9,300,000 | |||
Income tax expense | $ 0 |
Business Segments - Narrative (
Business Segments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 3 |
Business Segments - Schedule of
Business Segments - Schedule of Information on Company's Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 612,324 | $ 553,552 | |
Operating income | 136,683 | 115,671 | |
Interest expense | 11,000 | 11,552 | |
Other (income) expense - net | (4,449) | (308) | |
Income before income taxes | 130,132 | 104,427 | |
Total assets | 3,485,459 | $ 3,399,628 | |
Intersegment elimination | |||
Segment Reporting Information [Line Items] | |||
Net sales | (257) | (344) | |
Corporate office | |||
Segment Reporting Information [Line Items] | |||
Operating income | (20,843) | (17,006) | |
Total assets | 236,166 | 230,160 | |
Fluid & Metering Technologies | |||
Segment Reporting Information [Line Items] | |||
Net sales | 232,261 | 216,655 | |
Operating income | 66,166 | 57,813 | |
Fluid & Metering Technologies | Intersegment elimination | |||
Segment Reporting Information [Line Items] | |||
Net sales | (72) | (115) | |
Fluid & Metering Technologies | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 232,333 | 216,770 | |
Total assets | 1,138,501 | 1,101,580 | |
Health & Science Technologies | |||
Segment Reporting Information [Line Items] | |||
Net sales | 220,967 | 199,575 | |
Operating income | 51,806 | 42,238 | |
Health & Science Technologies | Intersegment elimination | |||
Segment Reporting Information [Line Items] | |||
Net sales | (108) | (104) | |
Health & Science Technologies | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 221,075 | 199,679 | |
Total assets | 1,339,090 | 1,323,373 | |
Fire & Safety/Diversified Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 159,096 | 137,322 | |
Operating income | 39,554 | 32,626 | |
Fire & Safety/Diversified Products | Intersegment elimination | |||
Segment Reporting Information [Line Items] | |||
Net sales | (77) | (125) | |
Fire & Safety/Diversified Products | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 159,173 | $ 137,447 | |
Total assets | $ 771,702 | $ 744,515 |
Revenue Revenue - Revenue by Re
Revenue Revenue - Revenue by Reporting Unit (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Total net sales | $ 612,324 |
Intersegment elimination | |
Disaggregation of Revenue [Line Items] | |
Total net sales | (257) |
Fluid & Metering Technologies | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 232,261 |
Fluid & Metering Technologies | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 232,261 |
Fluid & Metering Technologies | Intersegment elimination | |
Disaggregation of Revenue [Line Items] | |
Total net sales | (72) |
Fluid & Metering Technologies | Energy | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 38,759 |
Fluid & Metering Technologies | Valves | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 26,029 |
Fluid & Metering Technologies | Water | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 58,840 |
Fluid & Metering Technologies | Pumps | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 80,666 |
Fluid & Metering Technologies | Agriculture | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 28,039 |
Health & Science Technologies | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 220,967 |
Health & Science Technologies | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 220,967 |
Health & Science Technologies | Intersegment elimination | |
Disaggregation of Revenue [Line Items] | |
Total net sales | (108) |
Health & Science Technologies | Scientific Fluidics & Optics | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 99,507 |
Health & Science Technologies | Sealing Solutions | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 53,702 |
Health & Science Technologies | Gast | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 28,512 |
Health & Science Technologies | Micropump | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 9,298 |
Health & Science Technologies | Material Processing Technologies | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 30,056 |
Fire & Safety/Diversified Products | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 159,096 |
Fire & Safety/Diversified Products | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 159,096 |
Fire & Safety/Diversified Products | Intersegment elimination | |
Disaggregation of Revenue [Line Items] | |
Total net sales | (77) |
Fire & Safety/Diversified Products | Fire & Safety | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 96,212 |
Fire & Safety/Diversified Products | Band-It | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 27,474 |
Fire & Safety/Diversified Products | Dispensing | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | $ 35,487 |
Revenue - Revenue by Geography
Revenue - Revenue by Geography (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Total net sales | $ 612,324 |
Intersegment elimination | |
Disaggregation of Revenue [Line Items] | |
Total net sales | (257) |
U.S. | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 299,458 |
Europe | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 164,497 |
Asia | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 95,179 |
Rest of world | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 53,447 |
FMT | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 232,261 |
FMT | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 232,261 |
FMT | Intersegment elimination | |
Disaggregation of Revenue [Line Items] | |
Total net sales | (72) |
FMT | U.S. | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 133,153 |
FMT | Europe | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 43,599 |
FMT | Asia | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 26,398 |
FMT | Rest of world | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 29,183 |
HST | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 220,967 |
HST | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 220,967 |
HST | Intersegment elimination | |
Disaggregation of Revenue [Line Items] | |
Total net sales | (108) |
HST | U.S. | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 93,808 |
HST | Europe | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 73,779 |
HST | Asia | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 44,548 |
HST | Rest of world | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 8,940 |
ESDP | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 159,096 |
ESDP | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 159,096 |
ESDP | Intersegment elimination | |
Disaggregation of Revenue [Line Items] | |
Total net sales | (77) |
ESDP | U.S. | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 72,497 |
ESDP | Europe | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 47,119 |
ESDP | Asia | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | 24,233 |
ESDP | Rest of world | Operating Segments | |
Disaggregation of Revenue [Line Items] | |
Total net sales | $ 15,324 |
Revenue - Receivables (Details)
Revenue - Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total customer receivables | $ 331,601 | $ 297,796 |
Billed receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total customer receivables | 318,305 | 285,800 |
Unbilled receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total customer receivables | $ 13,296 | $ 11,996 |
Revenue - Deferred Revenue (Det
Revenue - Deferred Revenue (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue - current | $ 12,586 | $ 11,031 |
Deferred revenue - noncurrent | 3,489 | 3,297 |
Total deferred revenue | $ 16,075 | $ 14,328 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - Revenue from Contract with Customer - Product Concentration Risk | 3 Months Ended |
Mar. 31, 2018 | |
Transferred at Point in Time | |
Disaggregation of Revenue [Line Items] | |
Revenue from products and services transferred to customers | 95.00% |
Transferred over Time | |
Disaggregation of Revenue [Line Items] | |
Revenue from products and services transferred to customers | 5.00% |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Basic Weighted Average Shares Reconciles to Diluted Weighted Average Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Basic weighted average common shares outstanding (in shares) | 76,419 | 76,115 |
Dilutive effect of stock options, restricted stock and performance share units (in shares) | 1,320 | 779 |
Diluted weighted average common shares outstanding (in shares) | 77,739 | 76,894 |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Option to purchase common stock shares not included in the computation of diluted EPS (in shares) | 0.3 | 0.3 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials and component parts | $ 180,440 | $ 169,676 |
Work in process | 37,149 | 33,668 |
Finished goods | 66,287 | 56,380 |
Total inventories | $ 283,876 | $ 259,724 |
Goodwill and Intangible Asset56
Goodwill and Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
Balance at December 31, 2017 | $ 1,704,158 |
Foreign currency translation | 17,493 |
Acquisition adjustments | 1,117 |
Balance at March 31, 2018 | 1,722,768 |
FMT | |
Goodwill [Roll Forward] | |
Balance at December 31, 2017 | 586,064 |
Foreign currency translation | 3,661 |
Acquisition adjustments | 0 |
Balance at March 31, 2018 | 589,725 |
HST | |
Goodwill [Roll Forward] | |
Balance at December 31, 2017 | 740,032 |
Foreign currency translation | 8,879 |
Acquisition adjustments | 1,117 |
Balance at March 31, 2018 | 750,028 |
ESDP | |
Goodwill [Roll Forward] | |
Balance at December 31, 2017 | 378,062 |
Foreign currency translation | 4,953 |
Acquisition adjustments | 0 |
Balance at March 31, 2018 | $ 383,015 |
Goodwill and Intangible Asset57
Goodwill and Intangible Assets - Schedule of Gross Carrying Value and Accumulated Amortization for Each Major Class of Intangible Asset (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | $ 530,535 | $ 536,160 |
Intangible assets - Gross Carrying Amount | 621,435 | 627,060 |
Amortized intangible assets - Accumulated Amortization | (213,247) | (212,314) |
Amortized intangible assets - Net | 317,288 | 323,846 |
Intangible assets - Net | 408,188 | 414,746 |
Banjo trade name | ||
Goodwill And Intangible Assets [Line Items] | ||
Indefinite lived intangible assets - Net | 62,100 | 62,100 |
Akron Brass trade name | ||
Goodwill And Intangible Assets [Line Items] | ||
Indefinite lived intangible assets - Net | 28,800 | 28,800 |
Patents | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | 9,644 | 9,633 |
Amortized intangible assets - Accumulated Amortization | (7,355) | (7,143) |
Amortized intangible assets - Net | $ 2,289 | 2,490 |
Amortized intangible assets - Weighted Average Life | 11 years | |
Trade names | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | $ 118,575 | 117,206 |
Amortized intangible assets - Accumulated Amortization | (52,945) | (50,604) |
Amortized intangible assets - Net | $ 65,630 | 66,602 |
Amortized intangible assets - Weighted Average Life | 16 years | |
Customer relationships | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | $ 308,857 | 317,316 |
Amortized intangible assets - Accumulated Amortization | (120,749) | (124,566) |
Amortized intangible assets - Net | $ 188,108 | 192,750 |
Amortized intangible assets - Weighted Average Life | 13 years | |
Unpatented technology | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | $ 92,759 | 91,166 |
Amortized intangible assets - Accumulated Amortization | (31,743) | (29,428) |
Amortized intangible assets - Net | $ 61,016 | 61,738 |
Amortized intangible assets - Weighted Average Life | 13 years | |
Other | ||
Goodwill And Intangible Assets [Line Items] | ||
Amortized intangible assets - Gross Carrying Amount | $ 700 | 839 |
Amortized intangible assets - Accumulated Amortization | (455) | (573) |
Amortized intangible assets - Net | $ 245 | $ 266 |
Amortized intangible assets - Weighted Average Life | 10 years |
Goodwill and Intangible Asset58
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 10,871 | $ 11,789 |
Intangible assets, amortization expense | ||
Remaining of 2018 | 28,100 | |
2,019 | 35,800 | |
2,020 | 35,000 | |
2,021 | 33,700 | |
2,022 | $ 32,000 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Payroll and related items | $ 60,647 | $ 75,869 |
Management incentive compensation | 6,637 | 24,320 |
Income taxes payable | 24,800 | 28,033 |
Insurance | 9,764 | 9,424 |
Warranty | 6,239 | 6,281 |
Deferred revenue | 12,586 | 11,031 |
Restructuring | 3,415 | 4,180 |
Liability for uncertain tax positions | 1,484 | 1,745 |
Accrued interest | 10,440 | 1,759 |
Other | 22,144 | 22,063 |
Total accrued expenses | $ 158,156 | $ 184,705 |
Other Noncurrent Liabilities (D
Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Pension and retiree medical obligations | $ 100,491 | $ 99,646 |
Transition tax payable | 27,877 | 27,877 |
Liability for uncertain tax positions | 1,047 | 1,047 |
Deferred revenue | 3,489 | 3,297 |
Liability for construction of new leased facility | 5,801 | 0 |
Other | 22,210 | 23,818 |
Total other noncurrent liabilities | $ 160,915 | $ 155,685 |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 13, 2016 |
Debt Instrument [Line Items] | |||
Total borrowings | $ 863,488 | $ 862,186 | |
Less current portion | 835 | 258 | |
Less deferred debt issuance costs | 2,052 | 2,204 | |
Less unaccreted debt discount | 870 | 936 | |
Total long-term borrowings | $ 859,731 | 858,788 | |
4.5% Senior Notes, due December 2020 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.50% | ||
4.2% Senior Notes, due December 2021 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.20% | ||
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% | ||
Revolving Facility | |||
Debt Instrument [Line Items] | |||
Revolving Facility | $ 11,079 | 10,740 | |
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 | 100,000 | |
Stated interest rate | 3.20% | ||
Senior Notes | 3.37% Senior Notes, due June 2025 | |||
Debt Instrument [Line Items] | |||
Total borrowings | 100,000 | 100,000 | |
Stated interest rate | 3.37% | ||
Other borrowings | |||
Debt Instrument [Line Items] | |||
Other borrowings | $ 2,409 | $ 1,446 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) | Jun. 23, 2015USD ($) | Mar. 31, 2018USD ($)covenant | Dec. 31, 2017USD ($) | Jun. 13, 2016USD ($) |
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 | 1.12% | |||
Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Required percent for prepayment amount of aggregate principal amount | 5.00% | |||
Minimum | Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Applicable margin over LIBOR | 0.005% | |||
Maximum | Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Applicable margin over LIBOR | 1.50% | |||
3.2% Senior Notes, due June 2023 | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate | 3.20% | |||
3.37% Senior Notes, due June 2025 | ||||
Line of Credit Facility [Line Items] | ||||
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% | |||
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 | |||
Senior Notes | 3.2% Senior Notes, due June 2023 | ||||
Line of Credit Facility [Line Items] | ||||
Face amount of debt | $ 100,000,000 | |||
Stated interest rate | 3.20% | |||
Senior Notes | 3.37% Senior Notes, due June 2025 | ||||
Line of Credit Facility [Line Items] | ||||
Face amount of debt | $ 100,000,000 | |||
Stated interest rate | 3.37% | |||
Letters Of Credit | Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing capacity | 75,000,000 | |||
Swing line Loans | Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing capacity | $ 50,000,000 | |||
Revolving Facility | ||||
Line of Credit Facility [Line Items] | ||||
Current borrowings under revolving facility | $ 11,079,000 | $ 10,740,000 | ||
Outstanding letters of credit | 8,000,000 | |||
Amount available to borrow | $ 680,900,000 | |||
Number of financial covenants | covenant | 2 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) | 3 Months Ended | 24 Months Ended | ||
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2011USD ($)instrument | Mar. 31, 2018EUR (€) | |
Derivative [Line Items] | ||||
Amortization of interest expense | $ 332,000 | $ 329,000 | ||
Amount to be recognized from hedged transactions within 12 months, approximate | 6,400,000 | |||
Other (Income) Expense Net | ||||
Derivative [Line Items] | ||||
Foreign currency transaction loss | 1,200,000 | 400,000 | ||
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 | $ 68,900,000 | |||
Term of amortized interest expense, years | 10 years | |||
Foreign currency exchange contracts | ||||
Derivative [Line Items] | ||||
Notional amount | € | € 180,000,000 | |||
Cash received from settlement of contracts | 6,600,000 | |||
Foreign currency exchange contracts | Other (Income) Expense Net | ||||
Derivative [Line Items] | ||||
Gain on derivatives | $ 1,200,000 | $ 400,000 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value Amounts (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other current assets | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Fair Value Assets | $ 0 | $ 5,779 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Company Financial Assets and Liabilities at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 6,771 | $ 6,742 |
Foreign currency exchange contracts | 362 | 5,779 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 6,771 | 6,742 |
Foreign currency exchange contracts | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Foreign currency exchange contracts | 362 | 5,779 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Foreign currency exchange contracts | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | Mar. 31, 2018USD ($) |
Fair Value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term debt, fair value | $ 874.2 |
Carrying Value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term debt, fair value | $ 860.6 |
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% |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |||
Total restructuring costs | $ 1,642 | $ 4,797 | |
Restructuring reserve | $ 3,415 | $ 4,180 |
Restructuring - Restructuring C
Restructuring - Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | $ 1,642 | $ 4,797 |
Corporate/Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 340 | |
Fluid & Metering Technologies | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 143 | |
Health & Science Technologies | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 1,059 | |
Fire & Safety/Diversified Products | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 100 | |
Severance Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 1,550 | |
Severance Costs | Corporate/Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 340 | |
Severance Costs | Fluid & Metering Technologies | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 143 | |
Severance Costs | Health & Science Technologies | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 967 | |
Severance Costs | Fire & Safety/Diversified Products | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 100 | |
Exit Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 92 | |
Exit Costs | Corporate/Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 0 | |
Exit Costs | Fluid & Metering Technologies | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 0 | |
Exit Costs | Health & Science Technologies | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 92 | |
Exit Costs | Fire & Safety/Diversified Products | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | $ 0 |
Restructuring - Restructuring A
Restructuring - Restructuring Accruals (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Balance at January 1, 2018 | $ 4,180 | |
Restructuring expenses | 1,642 | $ 4,797 |
Payments, utilization and other | (2,407) | |
Balance at March 31, 2018 | $ 3,415 |
Other Comprehensive Income (L70
Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) | $ 30,252 | $ 23,216 |
AOCI | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total other comprehensive income (loss), Pre-tax | 31,128 | 24,403 |
Total other comprehensive income (loss), Tax | (876) | (1,187) |
Other comprehensive income (loss) | 30,252 | 23,216 |
Cumulative translation adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total other comprehensive income (loss), Pre-tax | 27,578 | 21,050 |
Total other comprehensive income (loss), Tax | 0 | 0 |
Other comprehensive income (loss) | 27,578 | 21,050 |
Pension and other postretirement adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total other comprehensive income (loss), Pre-tax | 1,918 | 1,676 |
Total other comprehensive income (loss), Tax | (505) | (552) |
Other comprehensive income (loss) | 1,413 | 1,124 |
Reclassification adjustments for derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total other comprehensive income (loss), Pre-tax | 1,632 | 1,677 |
Total other comprehensive income (loss), Tax | (371) | (635) |
Other comprehensive income (loss) | $ 1,261 | $ 1,042 |
Other Comprehensive Income (L71
Other Comprehensive Income (Loss) - Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amortization of service cost | $ (4,449) | $ (308) |
Reclassification adjustments | 11,000 | 11,552 |
Income before income taxes | 130,132 | 104,427 |
Provision for income taxes | 31,174 | 28,528 |
Net income | (98,958) | (75,899) |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Including Portion Attributable to Noncontrolling Interest | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amortization of service cost | 1,918 | 1,676 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | (1,918) | (1,676) |
Provision for income taxes | (505) | (552) |
Net income | 1,413 | 1,124 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassification adjustments | 1,632 | 1,677 |
Income before income taxes | (1,632) | (1,677) |
Provision for income taxes | (371) | (635) |
Net income | $ 1,261 | $ 1,042 |
Common and Preferred Stock (Det
Common and Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 01, 2015 | Apr. 30, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Equity [Abstract] | |||||
Increase in share repurchase authorized amount | $ 300,000 | ||||
Purchase of common stock (in shares) | 82,000 | ||||
Purchase of common shares at cost | $ 7,600 | ||||
Purchase of common stock | $ 600 | $ 0 | $ 7,005 | ||
Remaining authorized repurchase amount | $ 550,900 | ||||
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, shares outstanding (in shares) | 0 | 0 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Weighted Average Option Fair Values and Assumptions (Details) - Stock Option - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value of grants (in dollars per share) | $ 37.96 | $ 24.11 |
Dividend yield | 1.07% | 1.45% |
Volatility | 28.49% | 29.41% |
Risk-free interest rate, minimum | 2.01% | 0.82% |
Risk-free interest rate, maximum | 3.17% | 3.04% |
Expected life (in years) | 5 years 9 months 11 days | 5 years 9 months 29 days |
Share-Based Compensation - Sc74
Share-Based Compensation - Schedule of Compensation Cost for Stock Options (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | $ 7,652 | $ 6,159 |
Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | 2,730 | 2,470 |
Income tax benefit | (470) | (747) |
Total expense after income taxes | 2,260 | 1,723 |
Stock Option | Cost of goods sold | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | 206 | 186 |
Stock Option | Selling, general and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | $ 2,524 | $ 2,284 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options Activity (Details) - Stock Option - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Shares | ||
Beginning balance (in shares) | 1,924,683 | |
Granted (in shares) | 300,495 | |
Exercised (in shares) | (104,754) | |
Forfeited/Expired (in shares) | (16,746) | |
Ending balance (in shares) | 2,103,678 | 1,924,683 |
Vested and expected to vest (in shares) | 1,967,982 | |
Exercisable (in shares) | 1,149,993 | |
Weighted Average Price | ||
Beginning Balance, Weighted Average Price (in dollars per share) | $ 71.07 | |
Granted, Weighted Average Price (in dollars per share) | 138.12 | |
Exercised, Weighted Average Price (in dollars per share) | 62.91 | |
Forfeited, Weighted Average Price (in dollars per share) | 90.72 | |
Ending Balance, Weighted Average Price (in dollars per share) | $ 80.90 | $ 71.07 |
Weighted-Average Remaining Contractual Term | ||
Stock options outstanding, Weighted-Average Remaining Contractual Term | 7 years 1 month 13 days | 6 years 10 months 13 days |
Aggregate Intrinsic Value | ||
Stock options outstanding, Aggregate intrinsic value | $ 129,612,247 | $ 117,209,218 |
Vested and expected to vest , Weighted Average Price (in dollars per share) | $ 79.10 | |
Exercisable, Weighted Average Price (in dollars per share) | $ 63.95 | |
Weighted-Average Remaining Contractual Term, Vested and expected to vest | 6 years 11 months 27 days | |
Weighted-Average Remaining Contractual Term, Exercisable | 5 years 9 months 7 days | |
Aggregate Intrinsic Value, Vested and expected to vest | $ 124,784,752 | |
Aggregate Intrinsic Value, Exercisable | $ 90,343,139 |
Share Based Compensation - Narr
Share Based Compensation - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Feb. 28, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 28,555 | ||
Total unrecognized compensation cost | $ 6.5 | ||
Weighted-average period of total unrecognized compensation cost, in years | 1 year 2 months 12 days | ||
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) | 25,880 | ||
Total unrecognized compensation cost | $ 5.9 | ||
Weighted-average period of total unrecognized compensation cost, in years | 1 year 2 months 12 days | ||
Performance Shares Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Granted (in shares) | 52,375 | 62,755 | |
Payout percent | 239.00% | ||
Stock issued during period (in shares) | 143,897 | ||
Total unrecognized compensation cost | $ 13.7 | ||
Weighted-average period of total unrecognized compensation cost, in years | 1 year 2 months 12 days | ||
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost | $ 19 | ||
Weighted-average period of total unrecognized compensation cost, in years | 1 year 7 months 6 days |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Shares | |
Unvested, Beginning balance (in shares) | shares | 182,023 |
Granted (in shares) | shares | 28,555 |
Vested (in shares) | shares | (52,650) |
Forfeited (in shares) | shares | (3,250) |
Unvested, Ending balance (in shares) | shares | 154,678 |
Weighted-Average Grant Date Fair Value | |
Unvested, Beginning balance (in dollars per share) | $ / shares | $ 83.37 |
Granted (in dollars per share) | $ / shares | 138.06 |
Vested (in dollars per share) | $ / shares | 78.82 |
Forfeited (in dollars per share) | $ / shares | 84.78 |
Unvested, Ending balance (in dollars per share) | $ / shares | $ 94.98 |
Share-Based Compensation - Sc78
Share-Based Compensation - Schedule of Compensation Cost for Restricted Stock Units (Details) - Restricted Stock - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total expense before income taxes | $ 1,445 | $ 1,405 |
Income tax benefit | (257) | (439) |
Total expense after income taxes | 1,188 | 966 |
Cost of goods sold | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total expense before income taxes | 156 | 152 |
Selling, general and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total expense before income taxes | $ 1,289 | $ 1,253 |
Share-Based Compensation - Cash
Share-Based Compensation - Cash-settled Restricted Stock Activity (Details) - Cash-settled Restricted Stock | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Shares | |
Unvested, Beginning balance (in shares) | shares | 94,730 |
Granted (in shares) | shares | 25,880 |
Vested (in shares) | shares | (24,935) |
Forfeited (in shares) | shares | (1,310) |
Unvested, Ending balance (in shares) | shares | 94,365 |
Weighted-Average Grant Date Fair Value | |
Unvested, Beginning balance (in dollars per share) | $ / shares | $ 131.97 |
Granted (in dollars per share) | $ / shares | 138.12 |
Vested (in dollars per share) | $ / shares | 136.83 |
Forfeited (in dollars per share) | $ / shares | 142.51 |
Unvested, Ending balance (in dollars per share) | $ / shares | $ 142.51 |
Share-Based Compensation - Sc80
Share-Based Compensation - Schedule of Compensation Cost for Cash-settled Restricted Stock (Details) - Cash-settled Restricted Stock - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total expense before income taxes | $ 1,617 | $ 678 |
Income tax benefit | (159) | (142) |
Total expense after income taxes | 1,458 | 536 |
Cost of goods sold | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total expense before income taxes | 413 | 248 |
Selling, general and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total expense before income taxes | $ 1,204 | $ 430 |
Share-Based Compensation - Sc81
Share-Based Compensation - Schedule of Weighted Average Performance Share Units Fair Values and Assumptions (Details) - Performance Shares Units - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value of grants (in dollars per share) | $ 216.59 | $ 115.74 |
Dividend yield | 0.00% | 0.00% |
Volatility | 17.42% | 17.36% |
Risk-free interest rate | 2.40% | 1.45% |
Expected life (in years) | 2 years 10 months 6 days | 2 years 10 months 6 days |
Share-Based Compensation - Perf
Share-Based Compensation - Performance Share Unit Activity (Details) - Performance Shares Units - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Shares | ||
Unvested, Beginning balance (in shares) | 136,870 | |
Granted (in shares) | 52,375 | 62,755 |
Vested (in shares) | 0 | |
Forfeited (in shares) | (2,385) | |
Unvested, Ending balance (in shares) | 186,860 | 136,870 |
Weighted-Average Grant Date Fair Value | ||
Unvested, Beginning balance (in dollars per share) | $ 113.81 | |
Granted (in dollars per share) | 216.59 | |
Vested (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 134.85 | |
Unvested, Ending balance (in dollars per share) | $ 142.57 | $ 113.81 |
Share-Based Compensation - Sc83
Share-Based Compensation - Schedule of Compensation Cost for Performance Share Units (Details) - Performance Shares Units - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total expense before income taxes | $ 1,860 | $ 1,606 |
Income tax benefit | (317) | (507) |
Total expense after income taxes | 1,543 | 1,099 |
Cost of goods sold | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total expense before income taxes | 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 | $ 1,860 | $ 1,606 |
Retirement Benefits - Component
Retirement Benefits - Components of Net Periodic Benefit Cost for Defined Benefit Plans and Other Postretirement Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 168 | $ 152 |
Interest cost | 203 | 204 |
Net amortization | (184) | (198) |
Net periodic benefit cost | 187 | 158 |
U.S. | Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 254 | 254 |
Interest cost | 653 | 660 |
Expected return on plan assets | (983) | (944) |
Net amortization | 685 | 642 |
Net periodic benefit cost | 609 | 612 |
Non-U.S. | Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 545 | 482 |
Interest cost | 361 | 308 |
Expected return on plan assets | (290) | (264) |
Net amortization | 330 | 382 |
Net periodic benefit cost | $ 946 | $ 908 |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | $ 0.7 | |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected contributions in current fiscal year | 5 | |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected contributions in current fiscal year | $ 20 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected contribution for next fiscal year | $ 5.5 | |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected contribution for next fiscal year | $ 0.1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 31,174,000 | $ 28,528,000 | ||
Effective tax rate | 24.00% | 27.30% | ||
Deferred tax liability, provisional income tax benefit | $ 40,600,000 | |||
Accumulated foreign earnings, provisional liability | $ 30,400,000 | $ 30,300,000 | $ 30,300,000 | |
Transition tax for accumulated foreign earnings, increase (decrease) in provisional income tax expense | 100,000 | |||
Provisional increase, deferred tax liability, income tax (expense) benefit | 9,200,000 | |||
Adjustment, deferred income tax expense (benefit) | 9,200,000 | |||
Permanent reinvestment, deferred tax liability, income tax (expense) benefit | $ 8,200,000 | |||
Minimum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Reasonably possible change in unrecognized tax benefits over next 12 months | 0 | |||
Maximum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Reasonably possible change in unrecognized tax benefits over next 12 months | $ 1,500,000 |