Document and Entity Information
Document and Entity Information - USD ($) | 6 Months Ended | ||
Jun. 30, 2016 | Apr. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Roper Technologies Inc | ||
Entity Central Index Key | 882,835 | ||
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 | $ 16,931,595,935 | ||
Entity Common Stock, Shares Outstanding | 101,340,384 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | Q2 | ||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2016 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Condensed Consolidated Statements of Earnings (unaudited) [Abstract] | ||||
Net sales | $ 931,558 | $ 889,541 | $ 1,833,981 | $ 1,754,822 |
Cost of sales | 364,038 | 355,630 | 706,942 | 702,750 |
Gross profit | 567,520 | 533,911 | 1,127,039 | 1,052,072 |
Selling, general and administrative expenses | 314,442 | 281,937 | 628,970 | 553,202 |
Income from operations | 253,078 | 251,974 | 498,069 | 498,870 |
Interest expense, net | 26,863 | 20,177 | 54,276 | 40,013 |
Other income/(expense), net | (1,334) | (1,520) | (1,463) | (2,199) |
Earnings before income taxes | 224,881 | 230,277 | 442,330 | 456,658 |
Income taxes | 66,812 | 58,997 | 132,845 | 129,605 |
Net earnings | $ 158,069 | $ 171,280 | $ 309,485 | $ 327,053 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.56 | $ 1.70 | $ 3.06 | $ 3.26 |
Diluted (in dollars per share) | $ 1.54 | $ 1.69 | $ 3.02 | $ 3.22 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 101,249 | 100,573 | 101,160 | 100,475 |
Diluted (in shares) | 102,466 | 101,569 | 102,376 | 101,468 |
Dividends declared per common share (in dollars per share) | $ 0.30 | $ 0.25 | $ 0.60 | $ 0.50 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Condensed Consolidated Statements of Comprehensive Income (unaudited) [Abstract] | ||||
Net earnings | $ 158,069 | $ 171,280 | $ 309,485 | $ 327,053 |
Other comprehensive income/(loss), net of tax: | ||||
Foreign currency translation adjustments | (46,470) | 37,212 | (44,727) | (54,798) |
Post retirement benefit plan adjustment | 0 | 0 | 0 | (1,063) |
Total other comprehensive income/(loss), net of tax | (46,470) | 37,212 | (44,727) | (55,861) |
Comprehensive income | $ 111,599 | $ 208,492 | $ 264,758 | $ 271,192 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS: | ||
Cash and cash equivalents | $ 622,294 | $ 778,511 |
Accounts receivable, net | 509,437 | 488,271 |
Inventories, net | 191,390 | 189,868 |
Unbilled receivables | 119,053 | 122,042 |
Prepaid income taxes | 62,120 | 0 |
Other current assets | 45,879 | 39,355 |
Total current assets | 1,550,173 | 1,618,047 |
Property, plant and equipment, net | 104,282 | 105,510 |
Goodwill | 5,973,770 | 5,824,726 |
Other intangible assets, net | 2,581,293 | 2,528,996 |
Deferred taxes | 30,506 | 31,532 |
Other assets | 57,094 | 59,554 |
Total assets | 10,297,118 | 10,168,365 |
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||
Accounts payable | 135,598 | 139,737 |
Accrued compensation | 103,267 | 119,511 |
Deferred revenue | 280,984 | 267,030 |
Other accrued liabilities | 186,124 | 168,513 |
Income taxes payable | 21,182 | 18,532 |
Current portion of long-term debt, net | 5,886 | 6,805 |
Total current liabilities | 733,041 | 720,128 |
Long-term debt, net of current portion | 3,086,263 | 3,264,417 |
Deferred taxes | 834,599 | 810,856 |
Other liabilities | 92,198 | 74,017 |
Total liabilities | 4,746,101 | 4,869,418 |
Commitments and contingencies (Note 10) | ||
Common stock | 1,033 | 1,028 |
Additional paid-in capital | 1,467,227 | 1,419,262 |
Retained earnings | 4,359,258 | 4,110,530 |
Accumulated other comprehensive earnings | (257,506) | (212,779) |
Treasury stock | (18,995) | (19,094) |
Total stockholders' equity | 5,551,017 | 5,298,947 |
Total liabilities and stockholders' equity | $ 10,297,118 | $ 10,168,365 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net earnings | $ 309,485 | $ 327,053 |
Adjustments to reconcile net earnings to cash flows from operating activities: | ||
Depreciation and amortization of property, plant and equipment | 19,052 | 19,417 |
Amortization of intangible assets | 99,719 | 78,758 |
Amortization of deferred financing costs | 2,717 | 2,002 |
Non-cash stock compensation | 39,092 | 29,438 |
Changes in operating assets and liabilities, net of acquired businesses: | ||
Accounts receivable | (13,956) | 40,860 |
Unbilled receivables | 3,754 | (11,172) |
Inventories | (104) | (7,972) |
Accounts payable and accrued liabilities | 2,282 | (3,623) |
Income taxes payable | (77,931) | (36,257) |
Other, net | (7,278) | (5,556) |
Cash provided by operating activities | 376,832 | 432,948 |
Cash flows from investing activities: | ||
Acquisitions of businesses, net of cash acquired | (274,968) | (589,727) |
Capital expenditures | (18,348) | (20,673) |
Proceeds from sale of assets | 758 | 594 |
Other, net | (679) | (4,522) |
Cash used in investing activities | (293,237) | (614,328) |
Cash flows from financing activities: | ||
Borrowings/(payments) under revolving line of credit, net | (180,000) | 315,000 |
Principal payments on convertible notes | (289) | (3,884) |
Cash premiums paid on convertible note conversions | (915) | (12,721) |
Debt issuance costs | (63) | 0 |
Cash dividends to stockholders | (60,383) | (50,099) |
Proceeds from stock based compensation, net | 8,516 | 15,315 |
Stock award tax excess windfall benefit | 0 | 8,781 |
Treasury stock sales | 1,715 | 1,477 |
Other | (558) | (628) |
Cash provided by/(used in) financing activities | (231,977) | 273,241 |
Effect of foreign currency exchange rate changes on cash | (7,835) | (23,720) |
Net increase/(decrease) in cash and cash equivalents | (156,217) | 68,141 |
Cash and cash equivalents, beginning of period | 778,511 | 610,430 |
Cash and cash equivalents, end of period | $ 622,294 | $ 678,571 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Changes in Stockholders' Equity (unaudited) - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands | Common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive earnings [Member] | Treasury stock [Member] | Total |
Balances at at Dec. 31, 2015 | $ 1,028 | $ 1,419,262 | $ 4,110,530 | $ (212,779) | $ (19,094) | $ 5,298,947 |
Net earnings | 0 | 0 | 309,485 | 0 | 0 | 309,485 |
Stock option exercises | 1 | 9,962 | 0 | 0 | 0 | 9,963 |
Treasury stock sold | 0 | 1,616 | 0 | 0 | 99 | 1,715 |
Currency translation adjustments, net of tax | 0 | 0 | 0 | (44,727) | 0 | (44,727) |
Stock based compensation | 0 | 38,677 | 0 | 0 | 0 | 38,677 |
Restricted stock activity | 4 | (1,451) | 0 | 0 | 0 | (1,447) |
Conversion of senior subordinated convertible notes, net of tax | 0 | (839) | 0 | 0 | 0 | (839) |
Dividends declared | 0 | 0 | (60,757) | 0 | 0 | (60,757) |
Balances at at Jun. 30, 2016 | $ 1,033 | $ 1,467,227 | $ 4,359,258 | $ (257,506) | $ (18,995) | $ 5,551,017 |
Condensed Consolidated Stateme7
Condensed Consolidated Statement of Changes in Stockholders' Equity (unaudited) (Parenthetical) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Condensed Consolidated Statement of Changes in Stockholders' Equity (unaudited) [Abstract] | |
Currency translation adjustments, tax | $ 3,025 |
Conversion of senior subordinated convertible notes, tax | $ 76 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying condensed consolidated financial statements for the three and six months ended June 30, 2016 and 2015 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 Technologies, Inc. and its subsidiaries ("Roper" or the "Company") for all periods presented. The December 31, 2015 financial position data included herein was derived from the audited consolidated financial statements included in the 2015 Annual Report on Form 10-K ("Annual Report") filed on February 26, 2016 with the Securities and Exchange Commission ("SEC") but does not include all disclosures required by U.S. generally accepted accounting principles ("GAAP"). In the first quarter of 2016, Roper early adopted the provisions of an accounting standards update ("ASU") which affected the accounting for share-based payment awards. The provisions changed the reporting of excess tax benefits and tax deficiencies so that they are now reported in the income statement instead of additional paid-in capital, and the related cash flows are classified as operating activities as compared to the previous classification of financing activities. See Note 2 for additional information regarding the ASU. 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 and six months ended June 30, 2016 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 Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
Recent Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles | 2. Recent Accounting Pronouncements The Financial Accounting Standards Board ("FASB") establishes changes to accounting principles under GAAP in the form of accounting standards updates to the FASB's Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. Any recent ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company's results of operations, financial position or cash flows. Recently Adopted Accounting Pronouncements In Mar · The Company recorded a tax benefit of $4.2 million and $5.5 million within income tax expense for the three and six month periods ended June 30, 2016, respectively, related to the excess tax benefit on share-based awards. Prior to adoption this amount would have been recorded as a reduction of additional paid-in capital. · The Company no longer reclassifies the excess tax benefit from operating activities to financing activities in the statement of cash flows. The Company elected to apply this change in presentation prospectively and thus prior periods have not been adjusted. · The Company elected not to change its policy on accounting for forfeitures and continued to estimate the total number of awards for which the requisite service period will not be rendered. · The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of its diluted earnings per share since adoption. This resulted in an increase in diluted weighted average common shares outstanding of 284,704 and 284,756 shares for the three and six month periods ended June 30, 2016, respectively. In March 2016, the FASB issued an update amending the equity method of In September 2015, the FASB issued an update providing guidance to simplify the accounting for measurement period adjustments. This update, effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The Company adopted the update effective January 1, 2016. The update did not have a material impact on its results of operations, financial condition or cash flows. In April 2015, the FASB issued an update providing guidance to determine whether the fee paid by an entity for a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the software license element of the arrangement should be accounted for consistently with the acquisition of other software licenses. A cloud computing arrangement that does not include a software license should be accounted for as a service contract. The update is effective for annual periods beginning after December 15, 2015, and may be adopted prospectively or retrospectively. The Company adopted the update prospectively effective January 1, 2016. The update did not have a material impact on its results of operations, financial condition or cash flows. In June 2014, the FASB issued an update to the accounting for stock compensation. This update, effective for fiscal years beginning after December 15, 2015, modifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The Company adopted the update prospectively effective January 1, 2016. The update did not have a material impact on its results of operations, financial condition or cash flows. |
Description of New Accounting Pronouncements Not yet Adopted | Recently Released Accounting Pronouncements In February 2016, the FASB issued an update on lease accounting. The update, effective for annual reporting periods after December 15, 2018, including interim periods within those annual periods, provides amendments to current lease accounting. These amendments include the recognition of lease assets and lease liabilities on the balance sheet and disclosing other key information about leasing arrangements. In July 2015, the FASB issued an update providing guidance to simplify the measurement of inventory. This update, effective for fiscal years beginning after December 15, 2016, requires that inventory within the scope of the update be measured at the lower of cost and net realizable value. The Company does not expect the update to have a material impact on its results of operations, financial condition or cash flows. In May 2014, the FASB issued updates on accounting and disclosures for revenue from contracts with customers. These updates, effective for annual reporting periods after December 15, 2017, create a single, comprehensive revenue recognition model for all contracts with customers. The model is based on changes in contract assets (rights to receive consideration) and liabilities (obligations to provide a good or service). Revenue will be recognized based on the satisfaction of performance obligations, which occurs when control of a good or service transfers to a customer. The Company is evaluating the impact of these updates on its results of operations, financial condition and cash flows. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [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. Effective January 1, 2016, Roper adopted an ASU (see Note 2) on a prospective basis which increased the number of potentially dilutive stock options as there is no longer a tax benefit in the calculation of dilutive stock options. 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 June 30, Six months ended June 30, 2016 2015 2016 2015 Basic shares outstanding 101,249 100,573 101,160 100,475 Effect of potential common stock: Common stock awards 1,143 909 1,142 884 Senior subordinated convertible notes 74 87 74 109 Diluted shares outstanding 102,466 101,569 102,376 101,468 For the three and six months ended June 30, 2016 there were 1,027,350 and 1,057,350 outstanding stock options, respectively, that were not included in the determination of diluted earnings per share because doing so would have been antidilutive, as compared to 457,305 and 651,805 outstanding stock options, respectively, that would have been antidilutive for the three and six months ended June 30, 2015. |
Business Acquisitions
Business Acquisitions | 6 Months Ended |
Jun. 30, 2016 | |
Business Acquisitions [Abstract] | |
Business Acquisitions | 4. Business Acquisitions Roper completed three business acquisitions in the six months ended June 30, 2016, with an aggregate purchase price of $283 million using cash on hand. The results of operations of the acquired companies have been included in Roper's consolidated results since the date of each acquisition. Supplemental pro forma information has not been provided as the acquisitions did not have a material impact on Roper's consolidated results of operations individually or in aggregate. On January 7, 2016, Roper acquired 100% of the shares of CliniSys Group, Ltd. ("CliniSys"), a provider of clinical laboratory software headquartered in the United Kingdom. On March 17, 2016, Roper acquired the assets of PCI Medical, LLC, a provider of medical probe and scope disinfection products. On April 1, 2016, the Company acquired 100% of the shares of GeneInsight, Inc., a provider of software for managing the analysis, interpretation and reporting of genetic tests. All three acquisitions are reported in the Medical & Scientific Imaging segment and were acquired to enhance existing platforms and product lines. The Company recorded $163 million in goodwill and $163 million of other identifiable intangibles in connection with the acquisitions; however, purchase price allocations are preliminary pending final tax-related adjustments. Of the $163 million intangible assets acquired, $10 million was assigned to trade names which have an indefinite life and therefore not subject to amortization. The remaining $153 million of acquired intangible assets have a weighted average useful life of 16 years. The amortizable intangible assets include customer relationships of $97 million (20 year weighted average useful life) and unpatented technology of $56 million (9 year weighted average useful life). |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Stock Based Compensation [Abstract] | |
Stock-Based Compensation | 5. Stock Based Compensation The Roper Technologies, Inc. 2016 Incentive Plan ("2016 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. The 2016 Plan was approved by shareholders at the Annual Meeting of Shareholders on May 27, 2016. The 2016 Plan replaces the Roper Technologies, Inc. Amended and Restated 2006 Incentive Plan ("2006 Plan"), and no additional grants will be made from the 2006 Plan. 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 June 30, Six months ended June 30, 2016 2015 2016 2015 Stock based compensation $ 20,113 $ 15,637 $ 39,092 $ 29,438 Tax effect recognized in net income 7,040 5,473 13,682 10,303 Windfall tax benefit/(shortfall), net - 4,648 - 8,755 Windfall tax benefits are no longer calculated due to the adoption of the ASU related to stock compensation (see Note 2), as all tax benefits are recognized in net income. Stock Options - 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 periods using the Black-Scholes option-pricing model: Six months ended June 30, 2016 2015 Risk-free interest rate (%) 1.39 1.52 Expected option life (years) 5.20 5.10 Expected volatility (%) 21.63 22.27 Expected dividend yield (%) 0.70 0.62 Cash received from option exercises for the six months ended June 30, 2016 and 2015 was $10.0 million and $17.0 million, respectively. Restricted Stock Awards - During the six months ended June 30, 2016, 52,022 restricted awards vested with a weighted average grant date fair value of $140.70 per restricted share, and a weighted average vest date fair value of $171.98 per restricted share. Employee Stock Purchase Plan |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Inventories [Abstract] | |
Inventories | 6. Inventories The components of inventory were as follows (in thousands): June 30, 2016 December 31, 2015 Raw materials and supplies $ 119,042 $ 120,811 Work in process 24,512 22,979 Finished products 84,086 80,118 Inventory reserves (36,250 ) (34,040 ) $ 191,390 $ 189,868 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Other Intangible Assets [Abstract] | |
Goodwill and Other Intangible Assets | 7. Goodwill and Other Intangible Assets The carrying value of goodwill by segment was as follows (in thousands): Medical & RF Technology Industrial Energy Systems Total Balances at December 31, 2015 $ 3,039,197 $ 1,993,299 $ 374,033 $ 418,197 $ 5,824,726 Goodwill acquired 163,400 - - - 163,400 Other (977 ) 3,594 - - 2,617 Currency translation adjustments (2,022 ) (8,696 ) (3,149 ) (3,106 ) (16,973 ) Balances at June 30, 2016 $ 3,199,598 $ 1,988,197 $ 370,884 $ 415,091 $ 5,973,770 Other relates primarily to tax purchase accounting and working capital adjustments for 2015 acquisitions. Other intangible assets were comprised of (in thousands): Cost Accumulated amortization Net book value Assets subject to amortization: Customer related intangibles $ 2,448,509 $ (602,615 ) $ 1,845,894 Unpatented technology 270,170 (117,405 ) 152,765 Software 161,201 (44,298 ) 116,903 Patents and other protective rights 24,160 (18,659 ) 5,501 Backlog 700 (700 ) - Trade names 595 (122 ) 473 Assets not subject to amortization: Trade names 407,460 - 407,460 Balances at December 31, 2015 $ 3,312,795 $ (783,799 ) $ 2,528,996 Assets subject to amortization: Customer related intangibles $ 2,520,022 $ (653,024 ) $ 1,866,998 Unpatented technology 294,398 (129,555 ) 164,843 Software 174,492 (46,215 ) 128,277 Patents and other protective rights 23,894 (19,486 ) 4,408 Trade names 529 (132 ) 397 Assets not subject to amortization: Trade names 416,370 - 416,370 Balances at June 30, 2016 $ 3,429,705 $ (848,412 ) $ 2,581,293 Amortization expense of other intangible assets was $98,745 and $77,640 during the six months ended June 30, 2016 and 2015, 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 2016. The Company expects to perform the annual analysis during the fourth quarter. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt [Abstract] | |
Debt | 8. Debt Roper's 3.75% senior subordinated convertible notes due 2034 became convertible on January 15, 2009. During the six months ended June 30, 2016, 564 notes were converted by note holders for $1.2 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 June 30, 2016, the conversion price on the remaining outstanding notes was $521.19 per note. If converted at June 30, 2016, the value would have exceeded the $4 million principal amount of the outstanding notes by $12 million and could have resulted in the issuance of 72,855 shares of Roper's common stock. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 9. Fair Value of Financial Instruments Roper's debt at June 30, 2016 included $3.1 billion of fixed-rate senior notes with the following fair values (in millions): $400 million 1.850% senior notes due 2017 $ 402 $800 million 2.050% senior notes due 2018 810 $500 million 6.250% senior notes due 2019 565 $600 million 3.000% senior notes due 2020 622 $500 million 3.125% senior notes due 2022 511 $300 million 3.850% senior notes due 2025 323 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 at June 30, 2016 included $4 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 | 6 Months Ended |
Jun. 30, 2016 | |
Contingencies [Abstract] | |
Contingencies | 10. 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 consolidated 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 six months ended June 30, 2016 is presented below (in thousands): Balance at December 31, 2015 $ 10,183 Additions charged to costs and expenses 9,086 Deductions (8,832 ) Other 44 Balances at June 30, 2016 $ 10,481 |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2016 | |
Business Segments [Abstract] | |
Business Segments | 11. Business Segments Sales and operating profit by industry segment are set forth in the following table (dollars in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 Change 2016 2015 Change Net sales: Medical & Scientific Imaging $ 340,585 $ 302,262 12.7 % $ 672,799 $ 593,962 13.3 % RF Technology 288,761 255,558 13.0 % 568,971 498,512 14.1 % Industrial Technology 178,627 186,467 (4.2 )% 349,862 377,195 (7.2 )% Energy Systems & Controls 123,585 145,254 (14.9 )% 242,349 285,153 (15.0 )% Total $ 931,558 $ 889,541 4.7 % $ 1,833,981 $ 1,754,822 4.5 % Gross profit: Medical & Scientific Imaging $ 246,396 $ 222,990 10.5 % $ 493,293 $ 438,316 12.5 % RF Technology 163,005 134,136 21.5 % 323,370 264,182 22.4 % Industrial Technology 89,709 93,565 (4.1 )% 175,729 188,807 (6.9 )% Energy Systems & Controls 68,410 83,220 (17.8 )% 134,647 160,767 (16.2 )% Total $ 567,520 $ 533,911 6.3 % $ 1,127,039 $ 1,052,072 7.1 % Operating profit*: Medical & Scientific Imaging $ 114,271 $ 109,261 4.6 % $ 228,727 $ 217,040 5.4 % RF Technology 89,354 79,940 11.8 % 178,120 153,917 15.7 % Industrial Technology 51,291 52,188 (1.7 )% 98,050 110,085 (10.9 )% Energy Systems & Controls 27,769 37,702 (26.3 )% 51,951 68,124 (23.7 )% Total $ 282,685 $ 279,091 1.3 % $ 556,848 $ 549,166 1.4 % Long-lived assets: Medical & Scientific Imaging $ 38,400 $ 37,172 3.3 % RF Technology 30,111 30,398 (0.9 )% Industrial Technology 35,865 44,343 (19.1 )% Energy Systems & Controls 11,187 15,048 (25.7 )% Total $ 115,563 $ 126,961 (9.0 )% *Segment operating profit is before unallocated corporate general and administrative expenses. These expenses were $29,607 and $27,117 for the three months ended June 30, 2016 and 2015, respectively, and $58,779 and $50,296 for the six months ended June 30, 2016 and 2015, respectively. |
Recent Accounting Pronounceme19
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Recent Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements, Policy | 2. Recent Accounting Pronouncements The Financial Accounting Standards Board ("FASB") establishes changes to accounting principles under GAAP in the form of accounting standards updates to the FASB's Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. Any recent ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company's results of operations, financial position or cash flows. Recently Adopted Accounting Pronouncements In Mar · The Company recorded a tax benefit of $4.2 million and $5.5 million within income tax expense for the three and six month periods ended June 30, 2016, respectively, related to the excess tax benefit on share-based awards. Prior to adoption this amount would have been recorded as a reduction of additional paid-in capital. · The Company no longer reclassifies the excess tax benefit from operating activities to financing activities in the statement of cash flows. The Company elected to apply this change in presentation prospectively and thus prior periods have not been adjusted. · The Company elected not to change its policy on accounting for forfeitures and continued to estimate the total number of awards for which the requisite service period will not be rendered. · The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of its diluted earnings per share since adoption. This resulted in an increase in diluted weighted average common shares outstanding of 284,704 and 284,756 shares for the three and six month periods ended June 30, 2016, respectively. In March 2016, the FASB issued an update amending the equity method of In September 2015, the FASB issued an update providing guidance to simplify the accounting for measurement period adjustments. This update, effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The Company adopted the update effective January 1, 2016. The update did not have a material impact on its results of operations, financial condition or cash flows. In April 2015, the FASB issued an update providing guidance to determine whether the fee paid by an entity for a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the software license element of the arrangement should be accounted for consistently with the acquisition of other software licenses. A cloud computing arrangement that does not include a software license should be accounted for as a service contract. The update is effective for annual periods beginning after December 15, 2015, and may be adopted prospectively or retrospectively. The Company adopted the update prospectively effective January 1, 2016. The update did not have a material impact on its results of operations, financial condition or cash flows. In June 2014, the FASB issued an update to the accounting for stock compensation. This update, effective for fiscal years beginning after December 15, 2015, modifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The Company adopted the update prospectively effective January 1, 2016. The update did not have a material impact on its results of operations, financial condition or cash flows. Recently Released Accounting Pronouncements In February 2016, the FASB issued an update on lease accounting. The update, effective for annual reporting periods after December 15, 2018, including interim periods within those annual periods, provides amendments to current lease accounting. These amendments include the recognition of lease assets and lease liabilities on the balance sheet and disclosing other key information about leasing arrangements. In July 2015, the FASB issued an update providing guidance to simplify the measurement of inventory. This update, effective for fiscal years beginning after December 15, 2016, requires that inventory within the scope of the update be measured at the lower of cost and net realizable value. The Company does not expect the update to have a material impact on its results of operations, financial condition or cash flows. In May 2014, the FASB issued updates on accounting and disclosures for revenue from contracts with customers. These updates, effective for annual reporting periods after December 15, 2017, create a single, comprehensive revenue recognition model for all contracts with customers. The model is based on changes in contract assets (rights to receive consideration) and liabilities (obligations to provide a good or service). Revenue will be recognized based on the satisfaction of performance obligations, which occurs when control of a good or service transfers to a customer. The Company is evaluating the impact of these updates on its results of operations, financial condition and cash flows. |
Earnings Per Share (Policies)
Earnings Per Share (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [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. Effective January 1, 2016, Roper adopted an ASU (see Note 2) on a prospective basis which increased the number of potentially dilutive stock options as there is no longer a tax benefit in the calculation of dilutive stock options. 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) | 6 Months Ended |
Jun. 30, 2016 | |
Stock Based Compensation [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 periods using the Black-Scholes option-pricing model: |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Weighted Average Shares Outstanding | Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Basic shares outstanding 101,249 100,573 101,160 100,475 Effect of potential common stock: Common stock awards 1,143 909 1,142 884 Senior subordinated convertible notes 74 87 74 109 Diluted shares outstanding 102,466 101,569 102,376 101,468 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stock Based Compensation [Abstract] | |
Stock Based Compensation Expense | The following table provides information regarding the Company's stock-based compensation expense (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Stock based compensation $ 20,113 $ 15,637 $ 39,092 $ 29,438 Tax effect recognized in net income 7,040 5,473 13,682 10,303 Windfall tax benefit/(shortfall), net - 4,648 - 8,755 Windfall tax benefits are no longer calculated due to the adoption of the ASU related to stock compensation (see Note 2), as all tax benefits are recognized in net income. |
Weighted Average Assumptions Used to Value Option Grants | Six months ended June 30, 2016 2015 Risk-free interest rate (%) 1.39 1.52 Expected option life (years) 5.20 5.10 Expected volatility (%) 21.63 22.27 Expected dividend yield (%) 0.70 0.62 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventories [Abstract] | |
Inventories | The components of inventory were as follows (in thousands): June 30, 2016 December 31, 2015 Raw materials and supplies $ 119,042 $ 120,811 Work in process 24,512 22,979 Finished products 84,086 80,118 Inventory reserves (36,250 ) (34,040 ) $ 191,390 $ 189,868 |
Goodwill and Other Intangible25
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Other Intangible Assets [Abstract] | |
Goodwill | The carrying value of goodwill by segment was as follows (in thousands): Medical & RF Technology Industrial Energy Systems Total Balances at December 31, 2015 $ 3,039,197 $ 1,993,299 $ 374,033 $ 418,197 $ 5,824,726 Goodwill acquired 163,400 - - - 163,400 Other (977 ) 3,594 - - 2,617 Currency translation adjustments (2,022 ) (8,696 ) (3,149 ) (3,106 ) (16,973 ) Balances at June 30, 2016 $ 3,199,598 $ 1,988,197 $ 370,884 $ 415,091 $ 5,973,770 |
Other Intangible Assets | Cost Accumulated amortization Net book value Assets subject to amortization: Customer related intangibles $ 2,448,509 $ (602,615 ) $ 1,845,894 Unpatented technology 270,170 (117,405 ) 152,765 Software 161,201 (44,298 ) 116,903 Patents and other protective rights 24,160 (18,659 ) 5,501 Backlog 700 (700 ) - Trade names 595 (122 ) 473 Assets not subject to amortization: Trade names 407,460 - 407,460 Balances at December 31, 2015 $ 3,312,795 $ (783,799 ) $ 2,528,996 Assets subject to amortization: Customer related intangibles $ 2,520,022 $ (653,024 ) $ 1,866,998 Unpatented technology 294,398 (129,555 ) 164,843 Software 174,492 (46,215 ) 128,277 Patents and other protective rights 23,894 (19,486 ) 4,408 Trade names 529 (132 ) 397 Assets not subject to amortization: Trade names 416,370 - 416,370 Balances at June 30, 2016 $ 3,429,705 $ (848,412 ) $ 2,581,293 |
Fair Value of Financial Instr26
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value of Financial Instruments [Abstract] | |
Fixed-Rate Senior Notes, Fair Value | Roper's debt at June 30, 2016 included $3.1 billion of fixed-rate senior notes with the following fair values (in millions): $400 million 1.850% senior notes due 2017 $ 402 $800 million 2.050% senior notes due 2018 810 $500 million 6.250% senior notes due 2019 565 $600 million 3.000% senior notes due 2020 622 $500 million 3.125% senior notes due 2022 511 $300 million 3.850% senior notes due 2025 323 |
Contingencies (Tables)
Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Contingencies [Abstract] | |
Warranty Accrual Activity | Roper's consolidated 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 six months ended June 30, 2016 is presented below (in thousands): Balance at December 31, 2015 $ 10,183 Additions charged to costs and expenses 9,086 Deductions (8,832 ) Other 44 Balances at June 30, 2016 $ 10,481 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Business Segments [Abstract] | |
Sales and Operating Profit by Business Segment | Sales and operating profit by industry segment are set forth in the following table (dollars in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 Change 2016 2015 Change Net sales: Medical & Scientific Imaging $ 340,585 $ 302,262 12.7 % $ 672,799 $ 593,962 13.3 % RF Technology 288,761 255,558 13.0 % 568,971 498,512 14.1 % Industrial Technology 178,627 186,467 (4.2 )% 349,862 377,195 (7.2 )% Energy Systems & Controls 123,585 145,254 (14.9 )% 242,349 285,153 (15.0 )% Total $ 931,558 $ 889,541 4.7 % $ 1,833,981 $ 1,754,822 4.5 % Gross profit: Medical & Scientific Imaging $ 246,396 $ 222,990 10.5 % $ 493,293 $ 438,316 12.5 % RF Technology 163,005 134,136 21.5 % 323,370 264,182 22.4 % Industrial Technology 89,709 93,565 (4.1 )% 175,729 188,807 (6.9 )% Energy Systems & Controls 68,410 83,220 (17.8 )% 134,647 160,767 (16.2 )% Total $ 567,520 $ 533,911 6.3 % $ 1,127,039 $ 1,052,072 7.1 % Operating profit*: Medical & Scientific Imaging $ 114,271 $ 109,261 4.6 % $ 228,727 $ 217,040 5.4 % RF Technology 89,354 79,940 11.8 % 178,120 153,917 15.7 % Industrial Technology 51,291 52,188 (1.7 )% 98,050 110,085 (10.9 )% Energy Systems & Controls 27,769 37,702 (26.3 )% 51,951 68,124 (23.7 )% Total $ 282,685 $ 279,091 1.3 % $ 556,848 $ 549,166 1.4 % Long-lived assets: Medical & Scientific Imaging $ 38,400 $ 37,172 3.3 % RF Technology 30,111 30,398 (0.9 )% Industrial Technology 35,865 44,343 (19.1 )% Energy Systems & Controls 11,187 15,048 (25.7 )% Total $ 115,563 $ 126,961 (9.0 )% *Segment operating profit is before unallocated corporate general and administrative expenses. These expenses were $29,607 and $27,117 for the three months ended June 30, 2016 and 2015, respectively, and $58,779 and $50,296 for the six months ended June 30, 2016 and 2015, respectively. |
Recent Accounting Pronounceme29
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Tax benefit | $ 66,812 | $ 58,997 | $ 132,845 | $ 129,605 |
Adjustments for New Accounting Principle, Early Adoption [Member] | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Tax benefit | $ 4,200 | $ 5,500 | ||
Increase in diluted weighted average common shares outstanding (in shares) | 284,704 | 284,756 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of weighted average shares outstanding [Abstract] | ||||
Basic shares outstanding (in shares) | 101,249,000 | 100,573,000 | 101,160,000 | 100,475,000 |
Effect of potential common stock [Abstract] | ||||
Common stock awards (in shares) | 1,143,000 | 909,000 | 1,142,000 | 884,000 |
Senior subordinated convertible notes (in shares) | 74,000 | 87,000 | 74,000 | 109,000 |
Diluted shares outstanding (in shares) | 102,466,000 | 101,569,000 | 102,376,000 | 101,468,000 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive stock options (in shares) | 1,027,350 | 457,305 | 1,057,350 | 651,805 |
Business Acquisitions (Details)
Business Acquisitions (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016USD ($)Business | Jan. 07, 2016 | Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill | $ 5,973,770 | $ 5,824,726 | |
Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Finite lived intangible assets | $ 97,000 | ||
Weighted average useful life | 20 years | ||
Unpatented Technology [Member] | |||
Business Acquisition [Line Items] | |||
Finite lived intangible assets | $ 56,000 | ||
Weighted average useful life | 9 years | ||
Trade names [Member] | |||
Business Acquisition [Line Items] | |||
Indefinite lived intangible assets | $ 10,000 | ||
Business Acquisitions 2016 [Member] | |||
Business Acquisition [Line Items] | |||
Number of business acquired | Business | 3 | ||
Cost of acquired entity purchase price | $ 283,000 | ||
Goodwill | 163,000 | ||
Intangible assets other than goodwill | 163,000 | ||
Finite lived intangible assets | $ 153,000 | ||
Weighted average useful life | 16 years | ||
CliniSys Group, Ltd. [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of voting interest acquired | 100.00% | ||
GeneInsight Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of voting interest acquired | 100.00% |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of eligible earnings to purchase common stock through the employee stock purchase plan | 10.00% | 10.00% | ||
Discount on the average closing price for the employee stock purchase plan | 5.00% | |||
Stock Based Compensation Expense [Abstract] | ||||
Stock based compensation | $ 20,113 | $ 15,637 | $ 39,092 | $ 29,438 |
Tax effect recognized in net income | 7,040 | 5,473 | 13,682 | 10,303 |
Windfall tax benefit/(shortfall), net | $ 0 | $ 4,648 | $ 0 | $ 8,755 |
Weighted average assumptions used to value option grants [Abstract] | ||||
Shares of stock purchased during the period by participants in the employee stock purchase plan (in shares) | 9,964 | 9,370 | ||
Amount paid for stock purchased during the period by participants in the employee stock purchase plan | $ 1,720 | $ 1,480 | ||
Stock Options [Member] | ||||
Stock Based Compensation Expense [Abstract] | ||||
Employee stock options granted during the period (in shares) | 584,500 | 559,055 | ||
Fair value per share (in dollars per share) | $ 34.44 | $ 33.88 | ||
Weighted average assumptions used to value option grants [Abstract] | ||||
Risk-free interest rate (%) | 1.39% | 1.52% | ||
Expected option life (years) | 5 years 2 months 14 days | 5 years 1 month 6 days | ||
Expected volatility (%) | 21.63% | 22.27% | ||
Expected dividend yield (%) | 0.70% | 0.62% | ||
Cash received from exercise of options | $ 10,000 | $ 17,000 | ||
Restricted Stock Awards [Member] | ||||
Weighted average assumptions used to value option grants [Abstract] | ||||
Restricted stock awards granted during period (in shares) | 378,180 | 345,975 | ||
Weighted average fair value per share of restricted stock awards granted during the period (in dollars per share) | $ 168.68 | $ 152.72 | ||
Restricted stock awards vested during period (in shares) | 52,022 | |||
Weighted average grant date fair value per share (in dollars per share) | $ 140.70 | |||
Weighted average vest date fair value per share (in dollars per share) | $ 171.98 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Inventories [Abstract] | ||
Raw materials and supplies | $ 119,042 | $ 120,811 |
Work in process | 24,512 | 22,979 |
Finished products | 84,086 | 80,118 |
Inventory reserves | (36,250) | (34,040) |
Total Inventory | $ 191,390 | $ 189,868 |
Goodwill and Other Intangible34
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Goodwill [Line Items] | |||
Balances | $ 5,824,726 | ||
Goodwill acquired | 163,400 | ||
Other | 2,617 | ||
Currency translation adjustments | (16,973) | ||
Balances | 5,973,770 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated amortization | (848,412) | $ (783,799) | |
Intangible Assets - Cost and Net Book Value [Abstract] | |||
Cost | 3,429,705 | 3,312,795 | |
Net book value | 2,581,293 | 2,528,996 | |
Amortization expense of other intangible assets | 98,745 | $ 77,640 | |
Trade names [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Assets not subject to amortization | 416,370 | 407,460 | |
Medical And Scientific Imaging [Member] | |||
Goodwill [Line Items] | |||
Balances | 3,039,197 | ||
Goodwill acquired | 163,400 | ||
Other | (977) | ||
Currency translation adjustments | (2,022) | ||
Balances | 3,199,598 | ||
RF Technology [Member] | |||
Goodwill [Line Items] | |||
Balances | 1,993,299 | ||
Goodwill acquired | 0 | ||
Other | 3,594 | ||
Currency translation adjustments | (8,696) | ||
Balances | 1,988,197 | ||
Industrial Technology [Member] | |||
Goodwill [Line Items] | |||
Balances | 374,033 | ||
Goodwill acquired | 0 | ||
Other | 0 | ||
Currency translation adjustments | (3,149) | ||
Balances | 370,884 | ||
Energy Systems And Controls [Member] | |||
Goodwill [Line Items] | |||
Balances | 418,197 | ||
Goodwill acquired | 0 | ||
Other | 0 | ||
Currency translation adjustments | (3,106) | ||
Balances | 415,091 | ||
Customer related intangibles [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 2,520,022 | 2,448,509 | |
Accumulated amortization | (653,024) | (602,615) | |
Net book value | 1,866,998 | 1,845,894 | |
Unpatented technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 294,398 | 270,170 | |
Accumulated amortization | (129,555) | (117,405) | |
Net book value | 164,843 | 152,765 | |
Software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 174,492 | 161,201 | |
Accumulated amortization | (46,215) | (44,298) | |
Net book value | 128,277 | 116,903 | |
Patents and other protective rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 23,894 | 24,160 | |
Accumulated amortization | (19,486) | (18,659) | |
Net book value | 4,408 | 5,501 | |
Backlog [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 0 | 700 | |
Accumulated amortization | 0 | (700) | |
Net book value | 0 | 0 | |
Trade names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 529 | 595 | |
Accumulated amortization | (132) | (122) | |
Net book value | $ 397 | $ 473 |
Debt (Details)
Debt (Details) - Senior Subordinated Convertible Notes [Member] $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($)sharesNotesConverted$ / shares | |
Debt Instrument [Line Items] | |
Stated interest rate percentage - debt instruments | 3.75% |
Maturity date of debt | Jan. 15, 2034 |
First conversion date | Jan. 15, 2009 |
Number of notes converted | NotesConverted | 564 |
Cash payments for debt conversions | $ 1.2 |
Deferred tax liability | $ 0.1 |
Per note conversion price (in dollars per share) | $ / shares | $ 521.19 |
Principal note amount | $ 4 |
Excess above principal note amount | $ 12 |
Common stock shares issuable on conversion of debt | shares | 72,855 |
Fair Value of Financial Instr36
Fair Value of Financial Instruments (Details) - Fair Value, Inputs, Level 2 [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed rate senior notes carrying amount | $ 3,100 |
Short-term debt fixed-rate convertible notes | 4 |
Senior notes due 2017 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face value of debt | 400 |
Senior notes due 2017 fair value | $ 402 |
Debt Instrument, Interest Rate | 1.85% |
Maturity date of debt | Nov. 15, 2017 |
Senior notes due 2018 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face value of debt | $ 800 |
Senior notes due 2018 fair value | $ 810 |
Debt Instrument, Interest Rate | 2.05% |
Maturity date of debt | Oct. 1, 2018 |
Senior notes due 2019 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face value of debt | $ 500 |
Senior notes due 2019 fair value | $ 565 |
Debt Instrument, Interest Rate | 6.25% |
Maturity date of debt | Sep. 1, 2019 |
Senior notes due 2020 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face value of debt | $ 600 |
Senior notes due 2020 fair value | $ 622 |
Debt Instrument, Interest Rate | 3.00% |
Maturity date of debt | Dec. 15, 2020 |
Senior notes due 2022 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face value of debt | $ 500 |
Senior notes due 2022 fair value | $ 511 |
Debt Instrument, Interest Rate | 3.125% |
Maturity date of debt | Nov. 15, 2022 |
Senior notes due 2025 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face value of debt | $ 300 |
Senior notes due 2025 fair value | $ 323 |
Debt Instrument, Interest Rate | 3.85% |
Maturity date of debt | Dec. 15, 2025 |
Contingencies (Details)
Contingencies (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Warranty Accrual Activity [Roll Forward] | |
Balance | $ 10,183 |
Additions charged to costs and expenses | 9,086 |
Deductions | (8,832) |
Other | 44 |
Balance | $ 10,481 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||||
Segment Reporting Information [Line Items] | |||||||
Net sales | $ 931,558 | $ 889,541 | $ 1,833,981 | $ 1,754,822 | |||
Percent change in net sales | 4.70% | 4.50% | |||||
Gross profit | $ 567,520 | 533,911 | $ 1,127,039 | 1,052,072 | |||
Percent change in gross profit | 6.30% | 7.10% | |||||
Operating profit | $ 282,685 | [1] | 279,091 | [1] | $ 556,848 | 549,166 | |
Percent change in operating profit | 1.30% | [1] | 1.40% | ||||
Long-lived assets | $ 115,563 | 126,961 | $ 115,563 | 126,961 | |||
Percent change in long-lived assets | (9.00%) | ||||||
Operating Segments [Member] | Medical And Scientific Imaging [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | $ 340,585 | 302,262 | $ 672,799 | 593,962 | |||
Percent change in net sales | 12.70% | 13.30% | |||||
Gross profit | $ 246,396 | 222,990 | $ 493,293 | 438,316 | |||
Percent change in gross profit | 10.50% | 12.50% | |||||
Operating profit | $ 114,271 | [1] | 109,261 | [1] | $ 228,727 | 217,040 | |
Percent change in operating profit | 4.60% | [1] | 5.40% | ||||
Long-lived assets | $ 38,400 | 37,172 | $ 38,400 | 37,172 | |||
Percent change in long-lived assets | 3.30% | ||||||
Operating Segments [Member] | RF Technology [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | $ 288,761 | 255,558 | $ 568,971 | 498,512 | |||
Percent change in net sales | 13.00% | 14.10% | |||||
Gross profit | $ 163,005 | 134,136 | $ 323,370 | 264,182 | |||
Percent change in gross profit | 21.50% | 22.40% | |||||
Operating profit | $ 89,354 | [1] | 79,940 | [1] | $ 178,120 | 153,917 | |
Percent change in operating profit | 11.80% | [1] | 15.70% | ||||
Long-lived assets | $ 30,111 | 30,398 | $ 30,111 | 30,398 | |||
Percent change in long-lived assets | (0.90%) | ||||||
Operating Segments [Member] | Industrial Technology [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | $ 178,627 | 186,467 | $ 349,862 | 377,195 | |||
Percent change in net sales | (4.20%) | (7.20%) | |||||
Gross profit | $ 89,709 | 93,565 | $ 175,729 | 188,807 | |||
Percent change in gross profit | (4.10%) | (6.90%) | |||||
Operating profit | $ 51,291 | [1] | 52,188 | [1] | $ 98,050 | 110,085 | |
Percent change in operating profit | (1.70%) | [1] | (10.90%) | ||||
Long-lived assets | $ 35,865 | 44,343 | $ 35,865 | 44,343 | |||
Percent change in long-lived assets | (19.10%) | ||||||
Operating Segments [Member] | Energy Systems And Controls [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | $ 123,585 | 145,254 | $ 242,349 | 285,153 | |||
Percent change in net sales | (14.90%) | (15.00%) | |||||
Gross profit | $ 68,410 | 83,220 | $ 134,647 | 160,767 | |||
Percent change in gross profit | (17.80%) | (16.20%) | |||||
Operating profit | $ 27,769 | [1] | 37,702 | [1] | $ 51,951 | 68,124 | |
Percent change in operating profit | (26.30%) | [1] | (23.70%) | ||||
Long-lived assets | $ 11,187 | 15,048 | $ 11,187 | 15,048 | |||
Percent change in long-lived assets | (25.70%) | ||||||
Corporate [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Unallocated corporate general and administrative expenses | [1] | $ 29,607 | $ 27,117 | $ 58,779 | $ 50,296 | ||
[1] | *Segment operating profit is before unallocated corporate general and administrative expenses. These expenses were $29,607 and $27,117 for the three months ended June 30, 2016 and 2015, respectively, and $58,779 and $50,296 for the six months ended June 30, 2016 and 2015, respectively. |