Document_and_Entity_Informatio
Document and Entity Information (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Roper Industries Inc | ' |
Entity Central Index Key | '0000882835 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Public Float | ' | $12,365,836,908 |
Entity Common Stock, Shares Outstanding | 99,787,266 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Earnings (unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Consolidated Statements of Earnings | ' | ' |
Net sales | $834,052 | $737,135 |
Cost of sales | 345,116 | 315,559 |
Gross profit | 488,936 | 421,576 |
Selling, general and administrative expenses | 265,536 | 236,399 |
Income from operations | 223,400 | 185,177 |
Interest expense | 19,827 | 20,858 |
Other income/(expense) | 1,420 | -2,492 |
Earnings before income taxes | 204,993 | 161,827 |
Income taxes | 57,767 | 36,913 |
Net earnings | $147,226 | $124,914 |
Earnings per share: | ' | ' |
Basic | $1.48 | $1.26 |
Diluted | $1.46 | $1.25 |
Weighted average common shares outstanding: | ' | ' |
Basic | 99,557 | 98,876 |
Diluted | 100,572 | 99,986 |
Dividends declared per common share | $0.20 | $0.17 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Consolidated Statements of Comprehensive Income (unaudited) [Abstract] | ' | ' |
Net earnings | $147,226 | $124,914 |
Comprehensive income, net of tax | ' | ' |
Foreign currency translation adjustments | -12,811 | -38,489 |
Total other comprehensive income/(loss), net of tax | -12,811 | -38,489 |
Comprehensive income | $134,415 | $86,425 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $502,885 | $459,720 |
Accounts receivable, net | 514,081 | 519,075 |
Inventories, net | 209,383 | 204,923 |
Deferred taxes | 70,069 | 64,464 |
Unbilled receivables | 95,274 | 86,945 |
Other current assets | 40,478 | 38,210 |
Total current assets | 1,432,170 | 1,373,337 |
Property, plant and equipment, net | 116,590 | 117,310 |
Goodwill | 4,540,022 | 4,549,998 |
Other intangible assets, net | 1,997,924 | 2,039,136 |
Deferred taxes | 27,196 | 28,773 |
Other assets | 75,801 | 76,427 |
Total assets | 8,189,703 | 8,184,981 |
Liabilities and Stockholders' Equity | ' | ' |
Accounts payable | 144,168 | 150,313 |
Accrued Compensation | 92,820 | 107,953 |
Deferred Revenue, Current | 207,957 | 209,332 |
Accrued liabilities | 162,559 | 153,712 |
Income taxes payable | 43,035 | 4,275 |
Deferred taxes | 6,511 | 6,490 |
Current portion of long-term debt, net | 10,923 | 11,016 |
Total current liabilities | 667,973 | 643,091 |
Long-term debt, net of current portion | 2,304,143 | 2,453,836 |
Deferred taxes | 771,243 | 783,805 |
Other liabilities | 89,099 | 91,199 |
Total liabilities | 3,832,458 | 3,971,931 |
Common stock | 1,017 | 1,013 |
Additional paid-in capital | 1,258,910 | 1,229,233 |
Retained earnings | 3,086,465 | 2,959,196 |
Accumulated other comprehensive earnings | 30,272 | 43,083 |
Treasury stock | -19,419 | -19,475 |
Total stockholders' equity | 4,357,245 | 4,213,050 |
Total liabilities and stockholders' equity | $8,189,703 | $8,184,981 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net earnings | $147,226 | $124,914 |
Adjustments to reconcile net earnings to cash flows from operating activities: | ' | ' |
Depreciation and amortization of property, plant and equipment | 9,666 | 9,342 |
Amortization of intangible assets | 39,037 | 34,099 |
Amortization of deferred financing costs | 1,002 | 837 |
Non-cash stock compensation | 14,571 | 12,977 |
Changes in operating assets and liabilities, net of acquired businesses: | ' | ' |
Accounts receivable | 4,582 | 27,590 |
Unbilled receivables | -8,346 | -13,136 |
Inventories | -4,712 | -11,687 |
Accounts payable and accrued liabilities | -12,887 | -25,510 |
Income taxes | 24,829 | 16,348 |
Other, net | -2,340 | -4,506 |
Cash provided by operating activities | 212,628 | 171,268 |
Cash flows from investing activities: | ' | ' |
Acquisitions of businesses, net of cash acquired | -2,146 | -2,240 |
Capital expenditures | -10,478 | -11,205 |
Proceeds from sale of assets | 341 | 236 |
Other, net | -233 | -1 |
Cash used in investing activities | -12,516 | -13,210 |
Cash flows from financing activities: | ' | ' |
Borrowings/(payments) under revolving line of credit, net | -150,000 | -100,000 |
Principal payments on convertible notes | -433 | -52 |
Cash Premium on Convertible Debt | -1,174 | -109 |
Cash dividends to stockholders | -19,863 | 0 |
Stock award tax excess windfall benefit | 7,511 | 4,364 |
Treasury stock sales | 729 | 642 |
Proceeds from stock based compensation, net | 8,026 | 6,229 |
Other | 573 | 122 |
Cash provided by/(used in) financing activities | -154,631 | -88,804 |
Effect of foreign currency exchange rate changes on cash | -2,316 | -9,822 |
Net increase/(decrease) in cash and cash equivalents | 43,165 | 59,432 |
Cash and cash equivalents, end of period | 459,720 | 370,590 |
Cash and cash equivalents, end of period | $502,885 | $430,022 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited) (USD $) | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive earnings | Treasury stock | Total |
In Thousands | ||||||
Beginning Balance at Dec. 31, 2013 | $1,013 | $1,229,233 | $2,959,196 | $43,083 | ($19,475) | $4,213,050 |
Net earnings | 0 | 0 | 147,226 | 0 | 0 | 147,226 |
Stock option exercises | 2 | 9,951 | 0 | 0 | 0 | 9,953 |
Treasury stock sold | 0 | 673 | 0 | 0 | 56 | 729 |
Currency translation adjustments, net of tax | 0 | 0 | 0 | -12,811 | 0 | -12,811 |
Stock based compensation | 0 | 14,569 | 0 | 0 | 0 | 14,569 |
Restricted stock activity | 2 | -1,930 | 0 | 0 | 0 | -1,928 |
Stock option tax benefit, net of shortfalls | 0 | 7,485 | 0 | 0 | 0 | 7,485 |
Conversion of senior subordinated convertible notes | 0 | -1,071 | 0 | 0 | 0 | -1,071 |
Dividends declared | 0 | 0 | -19,957 | 0 | 0 | -19,957 |
Ending Balance at Mar. 31, 2014 | $1,017 | $1,258,910 | $3,086,465 | $30,272 | ($19,419) | $4,357,245 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | |
Mar. 31, 2014 | ||
Notes to Financial Statements [Abstract] | ' | |
Basis of Presentation | ' | |
1 | Basis of Presentation | |
The accompanying condensed consolidated financial statements for the three month periods ended March 31, 2014 and 2013 are unaudited. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the financial position, results of operations, comprehensive income and cash flows of Roper Industries, Inc. and its subsidiaries ("Roper" or the "Company") for all periods presented. The December 31, 2013 financial position data included herein was derived from the audited consolidated financial statements included in the 2013 Annual Report on Form 10-K ("Annual Report") filed on February 21, 2014 with the Security and Exchange Commission ("SEC") but does not include all disclosures required by U.S. generally accepted accounting principles ("GAAP"). | ||
Roper's management has made estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these condensed consolidated financial statements in conformity with GAAP. Actual results could differ from those estimates. | ||
The results of operations for the three month period ended March 31, 2014 are not necessarily indicative of the results to be expected for the full year. You should read these unaudited condensed consolidated financial statements in conjunction with Roper's consolidated financial statements and the notes thereto included in its Annual Report. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended | |
Mar. 31, 2014 | ||
Notes to Financial Statements [Abstract] | ' | |
Recent Accounting Pronouncements | ' | |
2 | Recent Accounting Pronouncements | |
The Financial Accounting Standards Board ("FASB") establishes changes to accounting principles under GAAP in the form of accounting standards updates ("ASUs") to the FASB's Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. All recent ASUs were assessed and determined to be either not applicable or are not expected to have a material impact on the Company's results of operations, financial position or cash flows. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Notes to Financial Statements [Abstract] | ' | |||||
Earnings Per Share | ' | |||||
3 | Earnings Per Share | |||||
Basic earnings per share were calculated using net earnings and the weighted average number of shares of common stock outstanding during the respective period. Diluted earnings per share were calculated using net earnings and the weighted average number of shares of common stock and potential common stock outstanding during the respective period. Potentially dilutive common stock consisted of stock options and the premium over the conversion price on Roper's senior subordinated convertible notes based upon the trading price of Roper's common stock. The effects of potential common stock were determined using the treasury stock method. Weighted average shares outstanding are shown below (in thousands): | ||||||
Three months ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Basic shares outstanding | 99,557 | 98,876 | ||||
Effect of potential common stock | ||||||
Common stock awards | 864 | 892 | ||||
Senior subordinated convertible notes | 151 | 218 | ||||
Diluted shares outstanding | 100,572 | 99,986 | ||||
For the three months ended March 31, 2014 there were 1,093,600 outstanding stock options that were not included in the determination of diluted earnings per share because doing so would have been antidilutive, as compared to 568,850 outstanding stock options that would have been antidilutive for the three months ended March 31, 2013. |
Stock_Based_Compensation
Stock Based Compensation | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Notes to Financial Statements [Abstract] | ' | |||
Stock-Based Compensation | ' | |||
4 | Stock Based Compensation | |||
The Roper Industries, Inc. Amended and Restated 2006 Incentive Plan is a stock-based compensation plan used to grant incentive stock options, nonqualified stock options, restricted stock, stock appreciation rights or equivalent instruments to Roper's employees, officers and directors. | ||||
Roper's stock purchase plan allows employees in the U.S. and Canada to designate up to 10% of eligible earnings to purchase Roper's common stock at a 5% discount to the average closing price of the stock at the beginning and end of a quarterly offering period. Common stock sold to employees may be either treasury stock, stock purchased on the open market, or newly issued shares. | ||||
The following table provides information regarding the Company's stock-based compensation expense (in thousands): | ||||
Three months ended | ||||
March 31, | ||||
2014 | 2013 | |||
Stock based compensation | $ 14,571 | $ 12,977 | ||
Tax effect recognized in net income | 5,100 | 4,542 | ||
Windfall tax benefit, net | 7,485 | 4,312 | ||
Stock Options - In the quarter ended March 31, 2014, 533,000 options were granted with a weighted average fair value of $35.14 per option. During the same period in 2013, 447,850 options were granted with a weighted average fair value of $36.53 per option. All options were issued at grant date fair value, which is defined by the Plan as the closing price of Roper's common stock on the date of grant. | ||||
Roper records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model. Historical data is used to estimate the expected price volatility, the expected dividend yield, the expected option life and the expected forfeiture rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. The following weighted average assumptions were used to estimate the fair value of options granted during current and prior year quarters using the Black-Scholes option-pricing model: | ||||
Three months ended March 31, | ||||
2014 | 2013 | |||
Risk-free interest rate (%) | 1.62 | 0.8 | ||
Expected option life (years) | 5.24 | 5.18 | ||
Expected volatility (%) | 27.62 | 36.29 | ||
Expected dividend yield (%) | 0.59 | 0.57 | ||
Cash received from option exercises for the three months ended March 31, 2014 and 2013 was $10.0 million and $9.6 million, respectively. | ||||
Restricted Stock Awards - During the quarter ended March 31, 2014, 237,001 restricted stock awards were granted with a weighted average fair value of $139.62 per restricted share. During the same period in 2013, 261,390 restricted stock awards were granted with a weighted average fair value of $115.36 per restricted share. All grants were issued at grant date fair value. | ||||
During the quarter ended March 31, 2014, 32,161 restricted awards vested with a weighted average grant date fair value of $79.06 per restricted share, and a weighted average vest date fair value of $140.42 per restricted share. | ||||
Employee Stock Purchase Plan - During the three month periods ended March 31, 2014 and 2013, participants of the employee stock purchase plan purchased 5,664 and 5,594 shares, respectively, of Roper's common stock for total consideration of $0.73 million and $0.64 million, respectively. All shares were purchased from Roper's treasury shares. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Notes to Financial Statements [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
5 | Inventories | ||||||||
The components of inventory were as follows (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials and supplies | $ | 130,481 | $ | 127,525 | |||||
Work in process | 32,650 | 30,498 | |||||||
Finished products | 90,056 | 90,352 | |||||||
Inventory reserves | (43,804 | ) | (43,452 | ) | |||||
$ | 209,383 | $ | 204,923 |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | |||||||||||||||
6 | Goodwill and Other Intangible Assets | |||||||||||||||
The carrying value of goodwill by segment was as follows (in thousands): | ||||||||||||||||
Industrial Technology | Energy Systems & Controls | Medical & Scientific Imaging | RF Technology | Total | ||||||||||||
Balances at December 31, 2013 | $ | 425,501 | $ | 434,697 | $ | 2,435,506 | $ | 1,254,294 | $ | 4,549,998 | ||||||
Other | - | - | (2,266 | ) | - | (2,266 | ) | |||||||||
Currency translation adjustments | 591 | (294 | ) | (8,062 | ) | 55 | (7,710 | ) | ||||||||
Balances at March 31, 2014 | $ | 426,092 | $ | 434,403 | $ | 2,425,178 | $ | 1,254,349 | $ | 4,540,022 | ||||||
Other relates to a tax purchase accounting adjustment for MHA, Inc., acquired in May 2013. | ||||||||||||||||
Other intangible assets were comprised of (in thousands): | ||||||||||||||||
Cost | Accumulated | Net book | ||||||||||||||
amortization | value | |||||||||||||||
Assets subject to amortization: | ||||||||||||||||
Customer related intangibles | $ | 1,936,336 | $ | (464,018 | ) | $ | 1,472,318 | |||||||||
Unpatented technology | 216,044 | (120,091 | ) | 95,953 | ||||||||||||
Software | 160,618 | (58,084 | ) | 102,534 | ||||||||||||
Patents and other protective rights | 31,394 | (21,922 | ) | 9,472 | ||||||||||||
Trade names | 656 | (16 | ) | 640 | ||||||||||||
Assets not subject to amortization: | ||||||||||||||||
Trade names | 358,219 | - | 358,219 | |||||||||||||
Balances at December 31, 2013 | $ | 2,703,267 | $ | (664,131 | ) | $ | 2,039,136 | |||||||||
Assets subject to amortization: | ||||||||||||||||
Customer related intangibles | $ | 1,933,576 | $ | (491,047 | ) | $ | 1,442,529 | |||||||||
Unpatented technology | 209,107 | (120,104 | ) | 89,003 | ||||||||||||
Software | 152,441 | (53,116 | ) | 99,325 | ||||||||||||
Patents and other protective rights | 29,699 | (20,589 | ) | 9,110 | ||||||||||||
Trade names | 663 | (32 | ) | 631 | ||||||||||||
Assets not subject to amortization: | ||||||||||||||||
Trade names | 357,326 | - | 357,326 | |||||||||||||
Balances at March 31, 2014 | $ | 2,682,812 | $ | (684,888 | ) | $ | 1,997,924 | |||||||||
Amortization expense of other intangible assets was $38,049 and $33,084 during the three months ended March 31, 2014 and 2013, respectively. | ||||||||||||||||
An evaluation of the carrying value of goodwill and indefinite-lived intangibles is required to be performed on an annual basis and on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. There have been no events or changes in circumstances which indicate an interim impairment review is required in 2014. The Company expects to perform the annual analysis during the fourth quarter. |
Debt
Debt | 3 Months Ended | |
Mar. 31, 2014 | ||
Notes to Financial Statements [Abstract] | ' | |
Debt | ' | |
7 | Debt | |
Roper's 3.75% senior subordinated convertible notes due 2034 became convertible on January 15, 2009. During the three month period ended March 31, 2014, 911 notes were converted by note holders for $1.6 million in cash. No gain or loss was recorded upon these conversions. In addition, a related $0.1 million deferred tax liability associated with excess deductions recorded for tax purposes was relieved to additional paid-in capital upon the conversions. | ||
At March 31, 2014, the conversion price on the remaining outstanding notes was $479.35 per note. If converted at March 31, 2014, the value would have exceeded the $8 million principal amount of the outstanding notes by $20 million and could have resulted in the issuance of 149,613 shares of Roper's common stock. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |
Mar. 31, 2014 | ||
Notes to Financial Statements [Abstract] | ' | |
Fair Value of Financial Instruments | ' | |
8 | Fair Value of Financial Instruments | |
Roper's debt at March 31, 2014 included $2.2 billion of fixed-rate senior notes with the following fair values (in millions): | ||
$400 million senior notes due 2017 | $400 | |
$800 million senior notes due 2018 | 790 | |
$500 million senior notes due 2019 | 580 | |
$500 million senior notes due 2022 | 475 | |
The fair values of the senior notes are based on the trading prices of the notes, which the Company has determined to be Level 2 in the FASB fair value hierarchy. Short-term debt included $8 million of fixed-rate convertible notes which were at fair value due to the ability of note holders to exercise the conversion option of the notes. |
Contingencies
Contingencies | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Notes to Financial Statements [Abstract] | ' | ||||
Contingencies | ' | ||||
9 | Contingencies | ||||
Roper, in the ordinary course of business, is the subject of, or a party to, various pending or threatened legal actions, including product liability and employment practices. It is vigorously contesting all lawsuits that, in general, are based upon claims of the kind that have been customary over the past several years. After analyzing the Company's contingent liabilities on a gross basis and, based upon past experience with resolution of its product liability and employment practices claims and the limits of the primary, excess, and umbrella liability insurance coverages that are available with respect to pending claims, management believes that adequate provision has been made to cover any potential liability not covered by insurance, and that the ultimate liability, if any, arising from these actions should not have a material adverse effect on Roper's consolidated financial position, results of operations or cash flows. | |||||
Over recent years there has been an increase in certain U.S. states in asbestos-related litigation claims against numerous industrial companies. Roper or its subsidiaries have been named defendants in some such cases. No significant resources have been required by Roper to respond to these cases and the Company believes it has valid defenses to such claims and, if required, intends to defend them vigorously. Given the state of these claims it is not possible to determine the potential liability, if any. | |||||
Roper's financial statements include accruals for potential product liability and warranty claims based on its claims experience. Such costs are accrued at the time revenue is recognized. A summary of the warranty accrual activity for the three months ended March 31, 2014 is presented below (in thousands): | |||||
Balance at December 31, 2013 | $ | 14,336 | |||
Additions charged to costs and expenses | 3,305 | ||||
Deductions | (4,072 | ) | |||
Other | (41 | ) | |||
Balance at March 31, 2014 | $ | 13,528 |
Business_Segments
Business Segments | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||
Business Segments | ' | |||||||||
10 | Business Segments | |||||||||
Sales and operating profit by industry segment are set forth in the following table (dollars in thousands): | ||||||||||
Three months ended March 31, | ||||||||||
2014 | 2013 | Change | ||||||||
Net sales: | ||||||||||
Industrial Technology | $ | 197,001 | $ | 182,239 | 8.1 | % | ||||
Energy Systems & Controls | 155,171 | 145,642 | 6.5 | |||||||
Medical & Scientific Imaging | 256,199 | 200,444 | 27.8 | |||||||
RF Technology | 225,681 | 208,810 | 8.1 | |||||||
Total | $ | 834,052 | $ | 737,135 | 13.1 | % | ||||
Gross profit: | ||||||||||
Industrial Technology | $ | 98,470 | $ | 93,311 | 5.5 | % | ||||
Energy Systems & Controls | 85,965 | 80,906 | 6.3 | |||||||
Medical & Scientific Imaging | 184,850 | 134,869 | 37.1 | |||||||
RF Technology | 119,651 | 112,490 | 6.4 | |||||||
Total | $ | 488,936 | $ | 421,576 | 16 | % | ||||
Operating profit*: | ||||||||||
Industrial Technology | $ | 56,056 | $ | 52,945 | 5.9 | % | ||||
Energy Systems & Controls | 37,025 | 35,722 | 3.6 | |||||||
Medical & Scientific Imaging | 89,771 | 59,928 | 49.8 | |||||||
RF Technology | 62,560 | 56,630 | 10.5 | |||||||
Total | $ | 245,412 | $ | 205,225 | 19.6 | % | ||||
Long-lived assets: | ||||||||||
Industrial Technology | $ | 49,022 | $ | 45,626 | 7.4 | % | ||||
Energy Systems & Controls | 18,503 | 19,032 | (2.8 | ) | ||||||
Medical & Scientific Imaging | 39,948 | 40,198 | (0.6 | ) | ||||||
RF Technology | 29,714 | 29,158 | 1.9 | |||||||
Total | $ | 137,187 | $ | 134,014 | 2.4 | % | ||||
* Segment operating profit is before unallocated corporate general and administrative expenses of $22,012 and $20,048 for the three months ended March 31, 2014 and 2013, respectively. |
Earnings_Per_Share_Policies
Earnings Per Share (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Notes to Financial Statements [Abstract] | ' |
Earnings Per Share Policy | ' |
Basic earnings per share were calculated using net earnings and the weighted average number of shares of common stock outstanding during the respective period. Diluted earnings per share were calculated using net earnings and the weighted average number of shares of common stock and potential common stock outstanding during the respective period. Potentially dilutive common stock consisted of stock options and the premium over the conversion price on Roper's senior subordinated convertible notes based upon the trading price of Roper's common stock. The effects of potential common stock were determined using the treasury stock method. Weighted average shares outstanding are shown below (in thousands): |
Stock_Based_Compensation_Polic
Stock Based Compensation (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Notes to Financial Statements [Abstract] | ' |
Stock Based Compensation | ' |
Roper records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model. Historical data is used to estimate the expected price volatility, the expected dividend yield, the expected option life and the expected forfeiture rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. The following weighted average assumptions were used to estimate the fair value of options granted during current and prior year quarters using the Black-Scholes option-pricing model: |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Notes to Financial Statements [Abstract] | ' | |||||
Schedule Of Weighted Average Number Of Shares Outstanding Basic To Diluted | ' | |||||
Three months ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Basic shares outstanding | 99,557 | 98,876 | ||||
Effect of potential common stock | ||||||
Common stock awards | 864 | 892 | ||||
Senior subordinated convertible notes | 151 | 218 | ||||
Diluted shares outstanding | 100,572 | 99,986 |
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Notes to Financial Statements [Abstract] | ' | |||
Stock Based Compensation Expense | ' | |||
Three months ended | ||||
March 31, | ||||
2014 | 2013 | |||
Stock based compensation | $ 14,571 | $ 12,977 | ||
Tax effect recognized in net income | 5,100 | 4,542 | ||
Windfall tax benefit, net | 7,485 | 4,312 | ||
Weighted average assumptions used to value option grants | ' | |||
Three months ended March 31, | ||||
2014 | 2013 | |||
Risk-free interest rate (%) | 1.62 | 0.8 | ||
Expected option life (years) | 5.24 | 5.18 | ||
Expected volatility (%) | 27.62 | 36.29 | ||
Expected dividend yield (%) | 0.59 | 0.57 |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Notes to Financial Statements [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
The components of inventory were as follows (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials and supplies | $ | 130,481 | $ | 127,525 | |||||
Work in process | 32,650 | 30,498 | |||||||
Finished products | 90,056 | 90,352 | |||||||
Inventory reserves | (43,804 | ) | (43,452 | ) | |||||
$ | 209,383 | $ | 204,923 |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||
Goodwill | ' | |||||||||||||||
The carrying value of goodwill by segment was as follows (in thousands): | ||||||||||||||||
Industrial Technology | Energy Systems & Controls | Medical & Scientific Imaging | RF Technology | Total | ||||||||||||
Balances at December 31, 2013 | $ | 425,501 | $ | 434,697 | $ | 2,435,506 | $ | 1,254,294 | $ | 4,549,998 | ||||||
Other | - | - | (2,266 | ) | - | (2,266 | ) | |||||||||
Currency translation adjustments | 591 | (294 | ) | (8,062 | ) | 55 | (7,710 | ) | ||||||||
Balances at March 31, 2014 | $ | 426,092 | $ | 434,403 | $ | 2,425,178 | $ | 1,254,349 | $ | 4,540,022 | ||||||
Other relates to a tax purchase accounting adjustment for MHA, Inc., acquired in May 2013. | ||||||||||||||||
Other Intangible Assets | ' | |||||||||||||||
Other intangible assets were comprised of (in thousands): | ||||||||||||||||
Cost | Accumulated | Net book | ||||||||||||||
amortization | value | |||||||||||||||
Assets subject to amortization: | ||||||||||||||||
Customer related intangibles | $ | 1,936,336 | $ | (464,018 | ) | $ | 1,472,318 | |||||||||
Unpatented technology | 216,044 | (120,091 | ) | 95,953 | ||||||||||||
Software | 160,618 | (58,084 | ) | 102,534 | ||||||||||||
Patents and other protective rights | 31,394 | (21,922 | ) | 9,472 | ||||||||||||
Trade names | 656 | (16 | ) | 640 | ||||||||||||
Assets not subject to amortization: | ||||||||||||||||
Trade names | 358,219 | - | 358,219 | |||||||||||||
Balances at December 31, 2013 | $ | 2,703,267 | $ | (664,131 | ) | $ | 2,039,136 | |||||||||
Assets subject to amortization: | ||||||||||||||||
Customer related intangibles | $ | 1,933,576 | $ | (491,047 | ) | $ | 1,442,529 | |||||||||
Unpatented technology | 209,107 | (120,104 | ) | 89,003 | ||||||||||||
Software | 152,441 | (53,116 | ) | 99,325 | ||||||||||||
Patents and other protective rights | 29,699 | (20,589 | ) | 9,110 | ||||||||||||
Trade names | 663 | (32 | ) | 631 | ||||||||||||
Assets not subject to amortization: | ||||||||||||||||
Trade names | 357,326 | - | 357,326 | |||||||||||||
Balances at March 31, 2014 | $ | 2,682,812 | $ | (684,888 | ) | $ | 1,997,924 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |
Mar. 31, 2014 | ||
Notes to Financial Statements [Abstract] | ' | |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block] | ' | |
Roper's debt at March 31, 2014 included $2.2 billion of fixed-rate senior notes with the following fair values (in millions): | ||
$400 million senior notes due 2017 | $400 | |
$800 million senior notes due 2018 | 790 | |
$500 million senior notes due 2019 | 580 | |
$500 million senior notes due 2022 | 475 |
Contingencies_Tables
Contingencies (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Notes to Financial Statements [Abstract] | ' | ||||
Warranty Accrual Activity Table | ' | ||||
Roper's financial statements include accruals for potential product liability and warranty claims based on its claims experience. Such costs are accrued at the time revenue is recognized. A summary of the warranty accrual activity for the three months ended March 31, 2014 is presented below (in thousands): | |||||
Balance at December 31, 2013 | $ | 14,336 | |||
Additions charged to costs and expenses | 3,305 | ||||
Deductions | (4,072 | ) | |||
Other | (41 | ) | |||
Balance at March 31, 2014 | $ | 13,528 |
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||
Sales and operating profit by business segment Table | ' | |||||||||
Sales and operating profit by industry segment are set forth in the following table (dollars in thousands): | ||||||||||
Three months ended March 31, | ||||||||||
2014 | 2013 | Change | ||||||||
Net sales: | ||||||||||
Industrial Technology | $ | 197,001 | $ | 182,239 | 8.1 | % | ||||
Energy Systems & Controls | 155,171 | 145,642 | 6.5 | |||||||
Medical & Scientific Imaging | 256,199 | 200,444 | 27.8 | |||||||
RF Technology | 225,681 | 208,810 | 8.1 | |||||||
Total | $ | 834,052 | $ | 737,135 | 13.1 | % | ||||
Gross profit: | ||||||||||
Industrial Technology | $ | 98,470 | $ | 93,311 | 5.5 | % | ||||
Energy Systems & Controls | 85,965 | 80,906 | 6.3 | |||||||
Medical & Scientific Imaging | 184,850 | 134,869 | 37.1 | |||||||
RF Technology | 119,651 | 112,490 | 6.4 | |||||||
Total | $ | 488,936 | $ | 421,576 | 16 | % | ||||
Operating profit*: | ||||||||||
Industrial Technology | $ | 56,056 | $ | 52,945 | 5.9 | % | ||||
Energy Systems & Controls | 37,025 | 35,722 | 3.6 | |||||||
Medical & Scientific Imaging | 89,771 | 59,928 | 49.8 | |||||||
RF Technology | 62,560 | 56,630 | 10.5 | |||||||
Total | $ | 245,412 | $ | 205,225 | 19.6 | % | ||||
Long-lived assets: | ||||||||||
Industrial Technology | $ | 49,022 | $ | 45,626 | 7.4 | % | ||||
Energy Systems & Controls | 18,503 | 19,032 | (2.8 | ) | ||||||
Medical & Scientific Imaging | 39,948 | 40,198 | (0.6 | ) | ||||||
RF Technology | 29,714 | 29,158 | 1.9 | |||||||
Total | $ | 137,187 | $ | 134,014 | 2.4 | % | ||||
* Segment operating profit is before unallocated corporate general and administrative expenses of $22,012 and $20,048 for the three months ended March 31, 2014 and 2013, respectively. |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Schedule Of Weighted Average Number Of Shares Outstanding Basic To Diluted | ' | ' |
Basic shares outstanding | 99,557,000 | 98,876,000 |
Effect of potential common stock | ' | ' |
Common stock awards | 864,000 | 892,000 |
Senior subordinated convertible notes | 151,000 | 218,000 |
Diluted shares outstanding | 100,572,000 | 99,986,000 |
Antidilutive stock options | 1,093,600 | 568,850 |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Notes to Financial Statements [Abstract] | ' | ' |
Percentage of eligible earnings to purchase common stock through the employee stock purchase plan | 10.00% | ' |
Discount on the average closing price for the employee stock purchase plan | 5.00% | ' |
Stock Based Compensation Expense Table | ' | ' |
Stock based compensation | $14,571,000 | $12,977,000 |
Tax effect recognized in net income | 5,100,000 | 4,542,000 |
Windfall tax benefit/(shortfall), net | 7,485,000 | 4,312,000 |
Employee stock options granted during the period | 533,000 | 447,850 |
Fair value per share ($) | $35.14 | $36.53 |
Weighted average assumptions used to value option grants Table | ' | ' |
Risk-free interest rate (%) | 1.62% | 0.80% |
Expected option life (years) | '5 years 2 months 26 days | '5 years 2 months 5 days |
Expected volatility (%) | 27.62% | 36.29% |
Expected dividend yield (%) | 0.59% | 0.57% |
Cash received from exercise of options | 10,000,000 | 9,600,000 |
Restricted stock awards granted during period | 237,001 | 261,390 |
Weighted average fair value per share of restricted stock awards granted during the period | $139.62 | $115.36 |
Restricted stock awards vested during period | 32,161 | ' |
Weighted average grant date fair value per share | $79.06 | ' |
Weighted average vest date fair value per share | $140.42 | ' |
Shares of stock purchased during the period by participants in the employee stock purchase plan | 5,664 | 5,594 |
Amount paid for stock purchased during the period by participants in the employee stock purchase plan | $730,000 | $640,000 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Raw materials and supplies | $130,481 | $127,525 |
Work in process | 32,650 | 30,498 |
Finished products | 90,056 | 90,352 |
Inventory reserves | -43,804 | -43,452 |
Total Inventory | $209,383 | $204,923 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Goodwill [Line Items] | ' | ' | ' |
Balances | $4,549,998 | ' | ' |
Balances | 4,540,022 | ' | ' |
Schedule Of Other Intangible Assets By Major Class [Line Items] | ' | ' | ' |
Cost | 2,682,812 | ' | 2,703,267 |
Accumulated amortization | -684,888 | ' | -664,131 |
Net book value | 1,997,924 | ' | 2,039,136 |
Amortization expense of other intangible assets | 38,049 | 33,084 | ' |
Assets subject to amortization | Customer related intangibles | ' | ' | ' |
Schedule Of Other Intangible Assets By Major Class [Line Items] | ' | ' | ' |
Cost | 1,933,576 | ' | 1,936,336 |
Accumulated amortization | -491,047 | ' | -464,018 |
Net book value | 1,442,529 | ' | 1,472,318 |
Assets subject to amortization | Unpatented technology | ' | ' | ' |
Schedule Of Other Intangible Assets By Major Class [Line Items] | ' | ' | ' |
Cost | 209,107 | ' | 216,044 |
Accumulated amortization | -120,104 | ' | -120,091 |
Net book value | 89,003 | ' | 95,953 |
Assets subject to amortization | Software | ' | ' | ' |
Schedule Of Other Intangible Assets By Major Class [Line Items] | ' | ' | ' |
Cost | 152,441 | ' | 160,618 |
Accumulated amortization | -53,116 | ' | -58,084 |
Net book value | 99,325 | ' | 102,534 |
Assets subject to amortization | Patents and other protective rights | ' | ' | ' |
Schedule Of Other Intangible Assets By Major Class [Line Items] | ' | ' | ' |
Cost | 29,699 | ' | 31,394 |
Accumulated amortization | -20,589 | ' | -21,922 |
Net book value | 9,110 | ' | 9,472 |
Assets subject to amortization | Trade names | ' | ' | ' |
Schedule Of Other Intangible Assets By Major Class [Line Items] | ' | ' | ' |
Cost | 663 | ' | 656 |
Accumulated amortization | -32 | ' | -16 |
Net book value | 631 | ' | 640 |
Assets not subject to amortization | Trade names | ' | ' | ' |
Schedule Of Other Intangible Assets By Major Class [Line Items] | ' | ' | ' |
Cost | 357,326 | ' | 358,219 |
Accumulated amortization | 0 | ' | 0 |
Net book value | 357,326 | ' | 358,219 |
Industrial Technology | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Balances | 425,501 | ' | ' |
Goodwill, Other Changes | 0 | ' | ' |
Currency translation adjustments | 591 | ' | ' |
Balances | 426,092 | ' | ' |
Energy Systems And Controls | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Balances | 434,697 | ' | ' |
Goodwill, Other Changes | 0 | ' | ' |
Currency translation adjustments | -294 | ' | ' |
Balances | 434,403 | ' | ' |
Medical And Scientific Imaging | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Balances | 2,435,506 | ' | ' |
Goodwill, Other Changes | -2,266 | ' | ' |
Currency translation adjustments | -8,062 | ' | ' |
Balances | 2,425,178 | ' | ' |
RF Technology | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Balances | 1,254,294 | ' | ' |
Goodwill, Other Changes | 0 | ' | ' |
Currency translation adjustments | 55 | ' | ' |
Balances | $1,254,349 | ' | ' |
Debt_Extinguishment_Details
Debt, Extinguishment (Details) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 |
Extinguishment of Debt [Line Items] | ' |
Stated Interest Rate Percentage - Debt Instruments | 3.75% |
First Conversion Date | 15-Jan-09 |
Number of Notes Converted | 911 |
Cash Payments for Debt Conversions (in millions) | $1.60 |
Deferred Tax Liability (in millions) | 0.1 |
Per Note Conversion Price | $479 |
Excess above Principal Note Amount (in millions) | $20 |
If converted, issuance of common stock shares | 149,613 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Convertible Notes | ' |
Short-term Debt [Line Items] | ' |
ST Debt Instrument, Face Amount | $8 |
Fair Value of Debt Instrument | 8 |
Fair Value, Inputs, Level 2 [Member] | Senior notes due 2017 | ' |
Debt Instrument [Line Items] | ' |
Face Value of Debt Instrument | 400 |
Long-term Debt, Fair Value | 400 |
Fair Value, Inputs, Level 2 [Member] | Senior Notes due 2018 | ' |
Debt Instrument [Line Items] | ' |
Face Value of Debt Instrument | 800 |
Long-term Debt, Fair Value | 790 |
Fair Value, Inputs, Level 2 [Member] | Senior Notes due 2019 | ' |
Debt Instrument [Line Items] | ' |
Face Value of Debt Instrument | 500 |
Long-term Debt, Fair Value | 580 |
Fair Value, Inputs, Level 2 [Member] | Senior notes due 2022 | ' |
Debt Instrument [Line Items] | ' |
Face Value of Debt Instrument | 500 |
Long-term Debt, Fair Value | $475 |
Contingencies_Details
Contingencies (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Warranty Accrual Activity Table | ' |
Balance | $14,336 |
Additions charged to costs and expenses | 3,305 |
Deductions | -4,072 |
Other | -41 |
Balance | $13,528 |
Business_Segments_Details
Business Segments (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | $834,052 | $737,135 |
Percent change in Net Sales | 13.1 | ' |
Gross Profit | 488,936 | 421,576 |
Percent change in Gross Profit | 16 | ' |
Operating profit | 245,412 | 205,225 |
Percent change in Operating Profit | 19.6 | ' |
Long-Lived assets | 137,187 | 134,014 |
Unallocated corporate general and administrative expenses | 22,012 | 20,048 |
Industrial Technology | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 197,001 | 182,239 |
Percent change in Net Sales | 8.1 | ' |
Gross Profit | 98,470 | 93,311 |
Percent change in Gross Profit | 5.5 | ' |
Operating profit | 56,056 | 52,945 |
Percent change in Operating Profit | 5.9 | ' |
Long-Lived assets | 49,022 | 45,626 |
Energy Systems And Controls | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 155,171 | 145,642 |
Percent change in Net Sales | 6.5 | ' |
Gross Profit | 85,965 | 80,906 |
Percent change in Gross Profit | 6.3 | ' |
Operating profit | 37,025 | 35,722 |
Percent change in Operating Profit | 3.6 | ' |
Long-Lived assets | 18,503 | 19,032 |
Medical And Scientific Imaging | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 256,199 | 200,444 |
Percent change in Net Sales | 27.8 | ' |
Gross Profit | 184,850 | 134,869 |
Percent change in Gross Profit | 37.1 | ' |
Operating profit | 89,771 | 59,928 |
Percent change in Operating Profit | 49.8 | ' |
Long-Lived assets | 39,948 | 40,198 |
RF Technology | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 225,681 | 208,810 |
Percent change in Net Sales | 8.1 | ' |
Gross Profit | 119,651 | 112,490 |
Percent change in Gross Profit | 6.4 | ' |
Operating profit | 62,560 | 56,630 |
Percent change in Operating Profit | 10.5 | ' |
Long-Lived assets | $29,714 | $29,158 |