Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-12273 | |
Entity Registrant Name | ROPER TECHNOLOGIES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 51-0263969 | |
Entity Address, Address Line One | 6901 Professional Parkway, Suite 200 | |
Entity Address, City or Town | Sarasota, | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 34240 | |
City Area Code | 941 | |
Local Phone Number | 556-2601 | |
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Trading Symbol | ROP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 105,912,655 | |
Entity Central Index Key | 0000882835 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net revenues | $ 1,526.6 | $ 1,376.1 |
Cost of sales | 496.5 | 440.1 |
Gross profit | 1,030.1 | 936 |
Selling, general and administrative expenses | 609 | 561.4 |
Income from operations | 421.1 | 374.6 |
Interest expense, net | 52.6 | 60.6 |
Other income (expense), net | (1.9) | 27.1 |
Earnings before income taxes | 366.6 | 341.1 |
Income taxes | 79 | 71.2 |
Net earnings from continuing operations | 287.6 | 269.9 |
Earnings from discontinued operations, net of tax | 15.6 | 19.1 |
Gain on disposition of discontinued operations, net of tax | 1,717.3 | 0 |
Net earnings from discontinued operations | 1,732.9 | 19.1 |
Net earnings | $ 2,020.5 | $ 289 |
Net earnings per share from continuing operations: | ||
Basic (in dollars per share) | $ 2.72 | $ 2.57 |
Diluted (in dollars per share) | 2.70 | 2.55 |
Net earnings per share from discontinued operations: | ||
Basic (in dollars per share) | 16.41 | 0.18 |
Diluted (in dollars per share) | 16.24 | 0.18 |
Net earnings per share: | ||
Basic (in dollars per share) | 19.13 | 2.75 |
Diluted (in dollars per share) | $ 18.94 | $ 2.73 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 105.6 | 105 |
Diluted (in shares) | 106.7 | 106 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 2,020.5 | $ 289 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | (22.9) | 14.6 |
Total other comprehensive income (loss), net of tax | (22.9) | 14.6 |
Comprehensive income | $ 1,997.6 | $ 303.6 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS: | ||
Cash and cash equivalents | $ 3,237.5 | $ 351.5 |
Accounts receivable, net | 755.3 | 839.4 |
Inventories, net | 202.7 | 176.1 |
Income taxes receivable | 19.2 | 27.7 |
Unbilled receivables | 110 | 95.3 |
Other current assets | 160.9 | 142.5 |
Current assets held for sale | 0 | 788.6 |
Total current assets | 4,485.6 | 2,421.1 |
Property, plant and equipment, net | 98.9 | 102.8 |
Goodwill | 14,094.9 | 14,094.5 |
Other intangible assets, net | 6,454.1 | 6,588.5 |
Deferred taxes | 101.4 | 101.1 |
Other assets | 400.9 | 405.9 |
Total assets | 25,635.8 | 23,713.9 |
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||
Accounts payable | 167.8 | 150.8 |
Accrued compensation | 208.2 | 309.8 |
Deferred revenue | 1,120.3 | 1,130.2 |
Other accrued liabilities | 413 | 440.7 |
Income taxes payable | 793 | 132 |
Current portion of long-term debt, net | 799.5 | 799.2 |
Current liabilities held for sale | 0 | 159.1 |
Total current liabilities | 3,501.8 | 3,121.8 |
Long-term debt, net of current portion | 6,654.8 | 7,122.6 |
Deferred taxes | 1,476.1 | 1,479.5 |
Other liabilities | 451.2 | 426.2 |
Total liabilities | 12,083.9 | 12,150.1 |
Commitments and contingencies (Note 10) | ||
Common stock | 1.1 | 1.1 |
Additional paid-in capital | 2,363.9 | 2,307.8 |
Retained earnings | 11,410.4 | 9,455.6 |
Accumulated other comprehensive loss | (206) | (183.1) |
Treasury stock | (17.5) | (17.6) |
Total stockholders' equity | 13,551.9 | 11,563.8 |
Total liabilities and stockholders' equity | $ 25,635.8 | $ 23,713.9 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net earnings from continuing operations | $ 287.6 | $ 269.9 |
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities: | ||
Depreciation and amortization of property, plant and equipment | 11 | 13.1 |
Amortization of intangible assets | 148.1 | 146.3 |
Amortization of deferred financing costs | 3.1 | 3.4 |
Non-cash stock compensation | 35.9 | 31.6 |
Gain on sale of assets, net of tax | 0 | (21.6) |
Income tax provision, excluding tax associated with gain on sale of assets | 79 | 65.7 |
Changes in operating assets and liabilities, net of acquired businesses: | ||
Accounts receivable | 82 | 54.3 |
Unbilled receivables | (15.4) | (17.8) |
Inventories | (27.7) | (2.1) |
Accounts payable | 17.9 | 13.3 |
Other accrued liabilities | (125.1) | (59) |
Deferred revenue | 29.4 | 60.9 |
Cash income taxes paid | (27.4) | (17.2) |
Other, net | (24.6) | (14.9) |
Cash provided by operating activities from continuing operations | 473.8 | 525.9 |
Cash provided by operating activities from discontinued operations | 1.5 | 33.7 |
Cash provided by operating activities | 475.3 | 559.6 |
Cash flows from (used in) investing activities: | ||
Acquisitions of businesses, net of cash acquired | (53.2) | 0 |
Capital expenditures | (7.1) | (7.1) |
Capitalized software expenditures | (7.5) | (7.2) |
Proceeds from sale of assets | 0 | 27.1 |
Other, net | 0 | (0.1) |
Cash (used in) provided by investing activities from continuing operations | (67.8) | 12.7 |
Proceeds from disposition of discontinued operations | 3,006.2 | 0 |
Cash used in investing activities from discontinued operations | (0.2) | (2) |
Cash provided by investing activities | 2,938.2 | 10.7 |
Cash flows from (used in) financing activities: | ||
Borrowings (payments) under revolving line of credit, net | (470) | (495) |
Cash dividends to stockholders | (65.3) | (58.8) |
Proceeds from stock-based compensation, net | 21 | 4.4 |
Treasury stock sales | 5.5 | 4.7 |
Other | 0 | (0.1) |
Cash flows used in financing activities from continuing operations | (508.8) | (544.8) |
Cash flows used in financing activities from discontinued operations | (11.4) | (0.4) |
Cash flows used in financing activities | (520.2) | (545.2) |
Effect of foreign currency exchange rate changes on cash | (7.3) | (2.4) |
Net increase in cash and cash equivalents | 2,886 | 22.7 |
Cash and cash equivalents, beginning of period | 351.5 | 308.3 |
Cash and cash equivalents, end of period | $ 3,237.5 | $ 331 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited) - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock |
Balance at beginning of period at Dec. 31, 2020 | $ 10,479.8 | $ 1.1 | $ 2,097.5 | $ 8,546.2 | $ (147) | $ (18) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 289 | 289 | ||||
Stock option exercises | 19.2 | 19.2 | ||||
Treasury stock sold | 4.7 | 4.6 | 0.1 | |||
Currency translation adjustments | 14.6 | 14.6 | ||||
Stock-based compensation | 32.4 | 32.4 | ||||
Restricted stock activity | (14.8) | (14.8) | ||||
Dividends declared | (59.2) | (59.2) | ||||
Balance at end of period at Mar. 31, 2021 | 10,765.7 | 1.1 | 2,138.9 | 8,776 | (132.4) | (17.9) |
Balance at beginning of period at Dec. 31, 2021 | 11,563.8 | 1.1 | 2,307.8 | 9,455.6 | (183.1) | (17.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 2,020.5 | 2,020.5 | ||||
Stock option exercises | 38.7 | 38.7 | ||||
Cash settlement of share-based awards in connection with disposition of discontinued operations | (11.1) | (11.1) | ||||
Treasury stock sold | 5.5 | 5.4 | 0.1 | |||
Currency translation adjustments | (22.9) | (22.9) | ||||
Stock-based compensation | 40.8 | 40.8 | ||||
Restricted stock activity | (17.7) | (17.7) | ||||
Dividends declared | (65.7) | (65.7) | ||||
Balance at end of period at Mar. 31, 2022 | $ 13,551.9 | $ 1.1 | $ 2,363.9 | $ 11,410.4 | $ (206) | $ (17.5) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in usd per share) | $ 0.62 | $ 0.5625 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements for the three months ended March 31, 2022 and 2021 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,” the “Company,” “we,” “our” or “us”) for all periods presented. The December 31, 2021 financial position data included herein was derived from the audited consolidated financial statements included in the Company’s 2021 Annual Report on Form 10-K (“Annual Report”) filed on February 22, 2022 with the Securities 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. During 2021, the Company signed definitive agreements to divest our TransCore, Zetec and CIVCO Radiotherapy businesses. As of March 31, 2022, Roper has completed all three divestitures. The financial results for these businesses are presented as discontinued operations for all periods presented. Unless otherwise noted, discussion within these notes to the Condensed Consolidated Financial Statements relate to continuing operations. Refer to Note 5 for additional information on discontinued operations. The results of operations for the three months ended March 31, 2022 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 audited consolidated financial statements and the notes thereto included in its Annual Report. Certain prior period amounts have been reclassified to conform to current period presentation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting PronouncementsThe Financial Accounting Standards Board (“FASB”) establishes changes to accounting principles under GAAP in the form of accounting standards updates (“ASUs”) to the Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. Any recent ASUs not listed 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. |
Weighted Average Shares Outstan
Weighted Average Shares Outstanding | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Weighted Average Shares Outstanding | Weighted Average Shares OutstandingBasic 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 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: Three months ended March 31, 2022 2021 Basic shares outstanding 105.6 105.0 Effect of potential common stock: Common stock awards 1.1 1.0 Diluted shares outstanding 106.7 106.0 For the three months ended March 31, 2022, there were 0.840 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 0.647 outstanding stock options that would have been antidilutive in the respective 2021 period. |
Business Acquisitions and Dispo
Business Acquisitions and Disposition | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisitions and Disposition | Business Acquisitions and Disposition On January 3, 2022, Roper acquired the outstanding membership interests of Horizon Lab Systems, LLC, a provider of laboratory information management systems in the toxicology, environmental, public health and agricultural markets for an aggregate purchase price of $49.8. This acquisition has been integrated into our Clinisys business and its results are reported in the Application Software reportable segment. The results of operations of the acquired business are included in Roper’s Condensed Consolidated Financial Statements since the date of acquisition. Pro forma results of operations and the revenue and net income subsequent to the acquisition date has not been presented because the effects of the acquisition were not material to our financial results. The Company recorded $25.6 in goodwill and $23.3 of other identifiable intangibles in connection with this acquisition. The amortizable intangible assets include customer relationships of $20.9 (15.1 year weighted average useful life) and technology of $2.4 (5.3 year weighted average useful life). Disposition On March 17, 2021, Roper completed the sale of a minority investment in Sedaru, Inc. for $27.1. The pretax gain on the sale was $27.1, which is reported in “Other income (expense), net” in the Condensed Consolidated Statement of Earnings. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations During 2021, the Company signed definitive agreements to divest our TransCore, Zetec and CIVCO Radiotherapy businesses as described below. • On March 17, 2022, Roper closed on the divestiture of our TransCore business to an affiliate of Singapore Technologies Engineering Ltd., for approximately $2,680.0 in cash. The sale resulted in a pretax gain of $2,073.7 and income tax expense of $550.5, which are reported within “Gain on disposition of discontinued operations, net of tax” in the Condensed Consolidated Statements of Earnings. TransCore was previously included in the Network Software & Systems reportable segment. • On January 5, 2022, Roper closed on the divestiture of our Zetec business to Eddyfi NDT Inc. for approximately $350.0 in cash. The sale resulted in a pretax gain of $255.3 and income tax expense of $60.9, which are reported within “Gain on disposition of discontinued operations, net of tax” in the Condensed Consolidated Statements of Earnings. Zetec was previously included in the Process Technologies reportable segment. • On November 1, 2021, Roper closed the divestiture of our CIVCO Radiotherapy business to an affiliate of Blue Wolf Capital Partners LLC. CIVCO Radiotherapy business was previously included in the Measurement & Analytical Solutions reportable segment. The Company concluded these disposal activities, in the aggregate, represented a strategic shift that will have a major effect on the Company’s operations and financial results. These divestitures significantly enhance our mix of high-margin, recurring revenue businesses and notably reduce our working capital requirements. Accordingly, the financial results of the TransCore, Zetec and CIVCO Radiotherapy businesses are presented in the Condensed Consolidated Financial Statements as discontinued operations for all periods presented. Current and non-current assets and liabilities of these businesses are presented in the Condensed Consolidated Balance Sheet as assets and liabilities of discontinued operations classified as held for sale at December 31, 2021. The following tables summarize the major classes of assets and liabilities related to the discontinued operations of the TransCore, Zetec and CIVCO Radiotherapy businesses, as reported in the Condensed Consolidated Balance Sheets at December 31, 2021: Accounts receivable, net $ 74.7 Inventories, net 47.8 Unbilled receivables 158.2 Goodwill 405.5 Other intangible assets, net 31.0 Other current assets 71.4 Current assets held for sale $ 788.6 Accounts payable $ 40.3 Accrued compensation 27.0 Deferred taxes 29.5 Other current liabilities 62.3 Current liabilities held for sale $ 159.1 The following table summarizes the major classes of revenue and expenses constituting net income from discontinued operations attributable to the TransCore, Zetec and CIVCO Radiotherapy businesses: Three Months Ended March 31, 2022 2021 Net revenues $ 100.4 $ 152.5 Cost of sales 71.2 94.7 Gross profit 29.2 57.8 Selling, general and administrative expenses (1) 19.9 31.9 Income from operations 9.3 25.9 Other income (expense), net 0.1 (0.1) Earnings before income taxes (2) 9.4 25.8 Income taxes (6.2) 6.7 Earnings from discontinued operations, net of tax 15.6 19.1 Gain on disposition of discontinued operations, net of tax 1,717.3 — Net earnings from discontinued operations $ 1,732.9 $ 19.1 (1) Includes stock-based compensation expense of $0.9 and $1.3 for the three months ended March 31, 2022 and 2021, respectively. In connection with the sale of TransCore and Zetec, we recognized expense of $4.5 associated with accelerated vesting of share-based awards. The charges associated with accelerated vesting were recorded as a component of “Gain on disposition of discontinued operations, net of tax” within the Condensed Consolidated Statements of Earnings. (2) During the three months ended March 31, 2022, there was no depreciation of property, plant and equipment or amortization of intangible assets given the asset classification as held for sale during the period. During the three months ended March 31, 2021 depreciation and amortization was $1.9. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation The Roper Technologies, Inc. 2021 Incentive Plan (“2021 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, directors and consultants. The following table provides information regarding the Company’s stock-based compensation expense: Three Months Ended March 31, 2022 2021 Stock-based compensation $ 35.9 $ 31.6 Tax effect recognized in net earnings from continuing operations 7.5 6.6 Stock Options - In the three months ended March 31, 2022, 0.365 options were granted with a weighted average fair value of $115.83 per option. During the same period in 2021, 0.498 options were granted with a weighted average fair value of $94.69 per option. All options were issued with an exercise price equal to the closing price of Roper’s common stock on the date of grant, as required by the 2021 Plan. 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: Three months ended March 31, 2022 2021 Risk-free interest rate (%) 2.05 0.94 Expected option life (years) 5.63 5.61 Expected volatility (%) 24.52 25.16 Expected dividend yield (%) 0.54 0.56 Cash received from option exercises for the three months ended March 31, 2022 and 2021 was $38.7 and $19.2, respectively. Restricted Stock Grants - During the three months ended March 31, 2022, the Company granted 0.219 shares with a weighted average grant date fair value of $455.84 per restricted share. During the same period in 2021, the Company granted 0.207 shares with a weighted average grant date fair value of $404.14 per restricted share. All grants were issued at grant date fair value. During the three months ended March 31, 2022, 0.116 restricted shares vested with a weighted average grant date fair value of $329.75 per restricted share and a weighted average vest date fair value of $457.31 per restricted share. Employee Stock Purchase Plan - Roper’s employee stock purchase plan (“ESPP”) allows employees in the U.S. and Canada to designate up to 10% of eligible earnings to purchase Roper’s common stock at a 10% discount on the lower of the closing price of the stock on the first and last day of each quarterly offering period. Common stock sold to employees pursuant to the ESPP may be either treasury stock, stock purchased on the open market, or newly issued shares. During the three months ended March 31, 2022 and 2021, participants in the ESPP purchased 0.013 and 0.013 shares of Roper’s common stock for total consideration of $5.5 and $4.7, respectively. All shares were purchased from Roper’s treasury shares. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventory were as follows: March 31, December 31, Raw materials and supplies $ 131.5 $ 112.7 Work in process 36.0 30.2 Finished products 72.1 69.3 Inventory reserves (36.9) (36.1) Inventories, net $ 202.7 $ 176.1 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The carrying value of goodwill by segment was as follows: Application Software Network Software & Systems Measurement & Analytical Solutions Process Technologies Total Balances at December 31, 2021 $ 8,889.3 $ 3,797.0 $ 1,160.6 $ 247.6 $ 14,094.5 Additions 25.6 — — — 25.6 Other — (0.5) — — (0.5) Currency translation adjustments (6.6) (12.1) (5.0) (1.0) (24.7) Balances at March 31, 2022 $ 8,908.3 $ 3,784.4 $ 1,155.6 $ 246.6 $ 14,094.9 Other relates primarily to purchase accounting adjustments for acquisitions. Other intangible assets were comprised of: Cost Accumulated Net book Assets subject to amortization: Customer related intangibles $ 7,532.0 $ (2,108.0) $ 5,424.0 Unpatented technology 906.4 (431.8) 474.6 Software 149.5 (122.4) 27.1 Patents and other protective rights 9.6 (2.1) 7.5 Trade names 12.8 (6.1) 6.7 Assets not subject to amortization: Trade names 648.6 — 648.6 Balances at December 31, 2021 $ 9,258.9 $ (2,670.4) $ 6,588.5 Assets subject to amortization: Customer related intangibles $ 7,527.0 $ (2,205.3) $ 5,321.7 Unpatented technology 893.6 (445.6) 448.0 Software 149.4 (125.2) 24.2 Patents and other protective rights 9.6 (2.1) 7.5 Trade names 16.3 (7.0) 9.3 Assets not subject to amortization: Trade names 643.4 — 643.4 Balances at March 31, 2022 $ 9,239.3 $ (2,785.2) $ 6,454.1 Amortization expense of other intangible assets was $145.8 and $145.1 during the three months ended March 31, 2022 and 2021, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Debt | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Debt | Fair Value of Financial Instruments and Debt Roper’s debt at March 31, 2022 included $7,500 of fixed-rate senior notes with the following fair values: $500 3.125% senior notes due 2022 503 $300 0.450% senior notes due 2022 299 $700 3.650% senior notes due 2023 710 $500 2.350% senior notes due 2024 493 $300 3.850% senior notes due 2025 305 $700 1.000% senior notes due 2025 650 $700 3.800% senior notes due 2026 717 $700 1.400% senior notes due 2027 635 $800 4.200% senior notes due 2028 831 $700 2.950% senior notes due 2029 675 $600 2.000% senior notes due 2030 534 $1,000 1.750% senior notes due 2031 864 The fair values of the senior notes are based on the trading prices of each series of notes, which the Company has determined to be Level 2 in the FASB fair value hierarchy. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Loss Contingency [Abstract] | |
Contingencies | Contingencies Roper, in the ordinary course of business, is party to various pending or threatened legal actions, including product liability, intellectual property, data privacy and employment practices that, in general, are of a nature consistent with those over the past several years. After analyzing the Company’s contingent liabilities on a gross basis and, based upon past experience with resolution of such legal claims and the availability and limits of the primary, excess, and umbrella liability insurance coverages 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. However, no assurances can be given in this regard. Roper’s subsidiary, Vertafore, Inc., was named in three putative class actions, two in the U.S. District Court for the Southern District of Texas (Allen, et al. v. Vertafore, Inc., Case 4:20-cv-4139, filed December 4, 2020) and Masciotra, et al. v. Vertafore, Inc., (originally filed on December 8, 2020 as Case 1:20-cv-03603 in the U.S. District Court for the District of Colorado and subsequently transferred), and one in the U.S. District Court for the Northern District of Texas (Mulvey, et al. v. Vertafore, Inc., Case 3:21-cv-00213-E, filed January 31, 2021). In July 2021, the court granted Vertafore’s motion to dismiss the Allen Case. In March 2022, the U.S. Fifth Circuit Court of Appeals affirmed the lower court’s dismissal of the Allen case. In July 2021, the plaintiff in the Masciotra case voluntarily dismissed his action without prejudice. The Allen case and the Mulvey case each purport to represent approximately 27.7 million individuals who held Texas driver’s licenses prior to February 2019. In November 2020, Vertafore announced that as a result of human error, three data files were inadvertently stored in an unsecured external storage service that appears to have been accessed without authorization. The files, which included driver information for licenses issued before February 2019, contained Texas driver license numbers, as well as names, dates of birth, addresses and vehicle registration histories. The files did not contain any Social Security numbers or financial account information. These cases seek recovery under the Driver’s Privacy Protection Act, 18 U.S.C. § 2721. In addition, Roper was advised that the Texas Attorney General is investigating the data event. Roper’s subsidiary, Verathon, Inc. (“Verathon”), is defending a patent infringement action pending in the United States District Court for the Western District of Washington (Berall v. Verathon, Inc., Case No. 2:2021mc00043). Plaintiff claims that video laryngoscopes and certain accessories sold by Verathon from approximately 2006 through 2016 infringe U.S. Patent 5,827,178 (the “‘178 Patent”). The complaint seeks an unspecified amount of damages, enhanced damages, attorneys’ fees, costs, and pre- and post-judgment interest. Verathon contends that the products at issue do not infringe the ‘178 Patent and that the ‘178 Patent is invalid. Verathon is vigorously defending the matter. Roper or our subsidiaries have been named defendants along with numerous industrial companies in asbestos-related litigation claims in certain U.S. states. To date, no significant resources have been required by Roper to respond to asbestos claims. In the first quarter of 2022, Roper completed a transaction in which it transferred the remainder of our exposure for asbestos claims to a third party. In connection with this transaction, Roper incurred a one-time charge of $4.1, which is recorded as a component of “Other income (expense), net” within the Condensed Consolidated Statements of Earnings. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The following table presents selected financial information by reportable segment: Three months ended March 31, 2022 2021 Change % Net revenues: Application Software $ 631.5 $ 576.6 9.5 % Network Software & Systems 368.7 314.2 17.3 % Measurement & Analytical Solutions 392.4 369.6 6.2 % Process Technologies 134.0 115.7 15.8 % Total $ 1,526.6 $ 1,376.1 10.9 % Gross profit: Application Software $ 437.8 $ 398.7 9.8 % Network Software & Systems 302.4 256.4 17.9 % Measurement & Analytical Solutions 217.6 218.2 (0.3) % Process Technologies 72.3 62.7 15.3 % Total $ 1,030.1 $ 936.0 10.1 % Operating profit*: Application Software $ 173.8 $ 153.7 13.1 % Network Software & Systems 145.4 114.1 27.4 % Measurement & Analytical Solutions 115.9 121.5 (4.6) % Process Technologies 41.8 35.1 19.1 % Total $ 476.9 $ 424.4 12.4 % Long-lived assets: Application Software $ 135.8 $ 126.7 7.2 % Network Software & Systems 28.5 27.8 2.5 % Measurement & Analytical Solutions 32.5 33.9 (4.1) % Process Technologies 13.3 18.3 (27.3) % Total $ 210.1 $ 206.7 1.6 % *Segment operating profit is before unallocated corporate general and administrative expenses. These expenses were $55.8 and $49.8 for the three months ended March 31, 2022 and 2021, respectively. |
Revenues from Contracts
Revenues from Contracts | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts | Revenues from Contracts Disaggregated Revenue - We disaggregate our revenues into two categories: (i) software and related services; and (ii) engineered products and related services. Software and related services revenues are primarily derived from our Application Software and Network Software & Systems reportable segments. Engineered products and related services revenues are derived from all of our reportable segments except Application Software and comprise substantially all of the revenues generated in our Measurement & Analytical Solutions and Process Technologies reportable segments. See details in the table below. Three Months Ended March 31, 2022 2021 Software and related services $ 970.0 $ 864.5 Engineered products and related services 556.6 511.6 Net revenues $ 1,526.6 $ 1,376.1 Remaining performance obligations - Remaining performance obligations represent the transaction price of firm orders for which work has not been performed and excludes unexercised contract options. As of March 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $4,000.3. We expect to recognize revenue of $2,718.0, or approximately 68% of our remaining performance obligations over the next 12 months (“Backlog”), with the remainder to be recognized thereafter. Contract balances Balance Sheet Account March 31, 2022 December 31, 2021 Change Unbilled receivables $ 110.0 $ 95.3 $ 14.7 Deferred revenue - current (1,120.3) (1,130.2) 9.9 Deferred revenue - non-current (1) (111.5) (75.3) (36.2) Net contract assets/(liabilities) $ (1,121.8) $ (1,110.2) $ (11.6) (1) The non-current portion of deferred revenue is included in “Other liabilities” in our Condensed Consolidated Balance Sheets. The change in our net contract assets/(liabilities) from December 31, 2021 to March 31, 2022 was due primarily to the timing of payments and invoicing relating to Software-as-a-Service (“SaaS”) and post contract support (“PCS”) renewals, partially offset by the increase in unbilled receivables due to the timing of invoicing primarily related to software milestone billings associated with multi-year term license renewals and software implementations. Most of the Company’s project-based contracts where the input method of revenue recognition is utilized are billed as work progresses in accordance with the contract terms and conditions, either at periodic intervals or upon achievement of certain milestones. Often this results in unbilled receivables where billing occurs after revenue recognition. The Company records deferred revenue when cash payments are received or due in advance of the Company’s performance relating primarily to SaaS and PCS renewals. Revenue recognized from the deferred revenue balance on December 31, 2021 and 2020 was $495.7 and $450.9 for the three months ended March 31, 2022 and 2021, respectively. In order to determine revenues recognized in the period, we allocate revenue to the individual deferred revenue balance outstanding at the beginning of the year until the revenue exceeds that balance. The current and non-current portions of deferred commissions are included in “Other current assets” and “Other assets,” respectively, in our Condensed Consolidated Balance Sheets. At March 31, 2022 and December 31, 2021, we had $58.3 and $56.7 of deferred commissions, respectively. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting PronouncementsThe Financial Accounting Standards Board (“FASB”) establishes changes to accounting principles under GAAP in the form of accounting standards updates (“ASUs”) to the Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. Any recent ASUs not listed 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. |
Weighted Average Shares Outst_2
Weighted Average Shares Outstanding (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Shares Outstanding | Weighted average shares outstanding are shown below: Three months ended March 31, 2022 2021 Basic shares outstanding 105.6 105.0 Effect of potential common stock: Common stock awards 1.1 1.0 Diluted shares outstanding 106.7 106.0 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following tables summarize the major classes of assets and liabilities related to the discontinued operations of the TransCore, Zetec and CIVCO Radiotherapy businesses, as reported in the Condensed Consolidated Balance Sheets at December 31, 2021: Accounts receivable, net $ 74.7 Inventories, net 47.8 Unbilled receivables 158.2 Goodwill 405.5 Other intangible assets, net 31.0 Other current assets 71.4 Current assets held for sale $ 788.6 Accounts payable $ 40.3 Accrued compensation 27.0 Deferred taxes 29.5 Other current liabilities 62.3 Current liabilities held for sale $ 159.1 The following table summarizes the major classes of revenue and expenses constituting net income from discontinued operations attributable to the TransCore, Zetec and CIVCO Radiotherapy businesses: Three Months Ended March 31, 2022 2021 Net revenues $ 100.4 $ 152.5 Cost of sales 71.2 94.7 Gross profit 29.2 57.8 Selling, general and administrative expenses (1) 19.9 31.9 Income from operations 9.3 25.9 Other income (expense), net 0.1 (0.1) Earnings before income taxes (2) 9.4 25.8 Income taxes (6.2) 6.7 Earnings from discontinued operations, net of tax 15.6 19.1 Gain on disposition of discontinued operations, net of tax 1,717.3 — Net earnings from discontinued operations $ 1,732.9 $ 19.1 (1) Includes stock-based compensation expense of $0.9 and $1.3 for the three months ended March 31, 2022 and 2021, respectively. In connection with the sale of TransCore and Zetec, we recognized expense of $4.5 associated with accelerated vesting of share-based awards. The charges associated with accelerated vesting were recorded as a component of “Gain on disposition of discontinued operations, net of tax” within the Condensed Consolidated Statements of Earnings. (2) During the three months ended March 31, 2022, there was no depreciation of property, plant and equipment or amortization of intangible assets given the asset classification as held for sale during the period. During the three months ended March 31, 2021 depreciation and amortization was $1.9. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table provides information regarding the Company’s stock-based compensation expense: Three Months Ended March 31, 2022 2021 Stock-based compensation $ 35.9 $ 31.6 Tax effect recognized in net earnings from continuing operations 7.5 6.6 |
Schedule of Weighted Average Assumptions Used to Value Option Grants | 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: Three months ended March 31, 2022 2021 Risk-free interest rate (%) 2.05 0.94 Expected option life (years) 5.63 5.61 Expected volatility (%) 24.52 25.16 Expected dividend yield (%) 0.54 0.56 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The components of inventory were as follows: March 31, December 31, Raw materials and supplies $ 131.5 $ 112.7 Work in process 36.0 30.2 Finished products 72.1 69.3 Inventory reserves (36.9) (36.1) Inventories, net $ 202.7 $ 176.1 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The carrying value of goodwill by segment was as follows: Application Software Network Software & Systems Measurement & Analytical Solutions Process Technologies Total Balances at December 31, 2021 $ 8,889.3 $ 3,797.0 $ 1,160.6 $ 247.6 $ 14,094.5 Additions 25.6 — — — 25.6 Other — (0.5) — — (0.5) Currency translation adjustments (6.6) (12.1) (5.0) (1.0) (24.7) Balances at March 31, 2022 $ 8,908.3 $ 3,784.4 $ 1,155.6 $ 246.6 $ 14,094.9 |
Schedule of Other Intangible Assets - Subject to Amortization | Other intangible assets were comprised of: Cost Accumulated Net book Assets subject to amortization: Customer related intangibles $ 7,532.0 $ (2,108.0) $ 5,424.0 Unpatented technology 906.4 (431.8) 474.6 Software 149.5 (122.4) 27.1 Patents and other protective rights 9.6 (2.1) 7.5 Trade names 12.8 (6.1) 6.7 Assets not subject to amortization: Trade names 648.6 — 648.6 Balances at December 31, 2021 $ 9,258.9 $ (2,670.4) $ 6,588.5 Assets subject to amortization: Customer related intangibles $ 7,527.0 $ (2,205.3) $ 5,321.7 Unpatented technology 893.6 (445.6) 448.0 Software 149.4 (125.2) 24.2 Patents and other protective rights 9.6 (2.1) 7.5 Trade names 16.3 (7.0) 9.3 Assets not subject to amortization: Trade names 643.4 — 643.4 Balances at March 31, 2022 $ 9,239.3 $ (2,785.2) $ 6,454.1 |
Schedule of Other Intangible Assets - Not Subject to Amortization | Other intangible assets were comprised of: Cost Accumulated Net book Assets subject to amortization: Customer related intangibles $ 7,532.0 $ (2,108.0) $ 5,424.0 Unpatented technology 906.4 (431.8) 474.6 Software 149.5 (122.4) 27.1 Patents and other protective rights 9.6 (2.1) 7.5 Trade names 12.8 (6.1) 6.7 Assets not subject to amortization: Trade names 648.6 — 648.6 Balances at December 31, 2021 $ 9,258.9 $ (2,670.4) $ 6,588.5 Assets subject to amortization: Customer related intangibles $ 7,527.0 $ (2,205.3) $ 5,321.7 Unpatented technology 893.6 (445.6) 448.0 Software 149.4 (125.2) 24.2 Patents and other protective rights 9.6 (2.1) 7.5 Trade names 16.3 (7.0) 9.3 Assets not subject to amortization: Trade names 643.4 — 643.4 Balances at March 31, 2022 $ 9,239.3 $ (2,785.2) $ 6,454.1 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments and Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fixed-Rate Senior Notes, Fair Value | Roper’s debt at March 31, 2022 included $7,500 of fixed-rate senior notes with the following fair values: $500 3.125% senior notes due 2022 503 $300 0.450% senior notes due 2022 299 $700 3.650% senior notes due 2023 710 $500 2.350% senior notes due 2024 493 $300 3.850% senior notes due 2025 305 $700 1.000% senior notes due 2025 650 $700 3.800% senior notes due 2026 717 $700 1.400% senior notes due 2027 635 $800 4.200% senior notes due 2028 831 $700 2.950% senior notes due 2029 675 $600 2.000% senior notes due 2030 534 $1,000 1.750% senior notes due 2031 864 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following table presents selected financial information by reportable segment: Three months ended March 31, 2022 2021 Change % Net revenues: Application Software $ 631.5 $ 576.6 9.5 % Network Software & Systems 368.7 314.2 17.3 % Measurement & Analytical Solutions 392.4 369.6 6.2 % Process Technologies 134.0 115.7 15.8 % Total $ 1,526.6 $ 1,376.1 10.9 % Gross profit: Application Software $ 437.8 $ 398.7 9.8 % Network Software & Systems 302.4 256.4 17.9 % Measurement & Analytical Solutions 217.6 218.2 (0.3) % Process Technologies 72.3 62.7 15.3 % Total $ 1,030.1 $ 936.0 10.1 % Operating profit*: Application Software $ 173.8 $ 153.7 13.1 % Network Software & Systems 145.4 114.1 27.4 % Measurement & Analytical Solutions 115.9 121.5 (4.6) % Process Technologies 41.8 35.1 19.1 % Total $ 476.9 $ 424.4 12.4 % Long-lived assets: Application Software $ 135.8 $ 126.7 7.2 % Network Software & Systems 28.5 27.8 2.5 % Measurement & Analytical Solutions 32.5 33.9 (4.1) % Process Technologies 13.3 18.3 (27.3) % Total $ 210.1 $ 206.7 1.6 % *Segment operating profit is before unallocated corporate general and administrative expenses. These expenses were $55.8 and $49.8 for the three months ended March 31, 2022 and 2021, respectively. |
Revenues from Contracts (Tables
Revenues from Contracts (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | See details in the table below. Three Months Ended March 31, 2022 2021 Software and related services $ 970.0 $ 864.5 Engineered products and related services 556.6 511.6 Net revenues $ 1,526.6 $ 1,376.1 |
Schedule of Contract Balances | Contract balances Balance Sheet Account March 31, 2022 December 31, 2021 Change Unbilled receivables $ 110.0 $ 95.3 $ 14.7 Deferred revenue - current (1,120.3) (1,130.2) 9.9 Deferred revenue - non-current (1) (111.5) (75.3) (36.2) Net contract assets/(liabilities) $ (1,121.8) $ (1,110.2) $ (11.6) (1) The non-current portion of deferred revenue is included in “Other liabilities” in our Condensed Consolidated Balance Sheets. |
Basis of Presentation (Details)
Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2022divestiture | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of divestitures completed | 3 |
Weighted Average Shares Outst_3
Weighted Average Shares Outstanding - Schedule of Weighted Average Shares Outstanding (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Basic shares outstanding (in shares) | 105.6 | 105 |
Effect of potential common stock: | ||
Common stock awards (in shares) | 1.1 | 1 |
Diluted shares outstanding (in shares) | 106.7 | 106 |
Weighted Average Shares Outst_4
Weighted Average Shares Outstanding - Narrative (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Antidilutive stock options (in shares) | 840 | 647 |
Business Acquisitions and Dis_2
Business Acquisitions and Disposition (Details) - USD ($) $ in Millions | Mar. 17, 2021 | Mar. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 14,094.9 | $ 14,094.5 | |
Sedaru, Inc. | |||
Business Acquisition [Line Items] | |||
Sale of investment | $ 27.1 | ||
Pretax gain on sale of investment | $ 27.1 | ||
Other acquisitions | |||
Business Acquisition [Line Items] | |||
Aggregate purchase price | 49.8 | ||
Goodwill | 25.6 | ||
Other identifiable intangibles | 23.3 | ||
Other acquisitions | Customer related intangibles | |||
Business Acquisition [Line Items] | |||
Other identifiable intangibles | $ 20.9 | ||
Weighted average useful life of finite-lived intangible assets (in years) | 15 years 1 month 6 days | ||
Other acquisitions | Technology | |||
Business Acquisition [Line Items] | |||
Other identifiable intangibles | $ 2.4 | ||
Weighted average useful life of finite-lived intangible assets (in years) | 5 years 3 months 18 days |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - Disposed of by Sale - USD ($) $ in Millions | Mar. 17, 2022 | Jan. 05, 2022 |
Singapore Technologies Engineering Ltd Affiliate | TransCore | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Consideration received from disposal | $ 2,680 | |
Pretax gain on disposition of business | 2,073.7 | |
Income tax expense | $ 550.5 | |
Eddyfi NDT Inc | Zetec | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Consideration received from disposal | $ 350 | |
Pretax gain on disposition of business | 255.3 | |
Income tax expense | $ 60.9 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Assets and Liabilities From Discontinued Operations (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Disposal Group, Including Discontinued Operation, Assets [Abstract] | ||
Current assets held for sale | $ 0 | $ 788.6 |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Current liabilities held for sale | $ 0 | 159.1 |
Held-for-sale or Disposed of by Sale | TransCore Holdings Inc, Zetec and Civco Radiotherapy | ||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | ||
Accounts receivable, net | 74.7 | |
Inventories, net | 47.8 | |
Unbilled receivables | 158.2 | |
Goodwill | 405.5 | |
Other intangible assets, net | 31 | |
Other current assets | 71.4 | |
Current assets held for sale | 788.6 | |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Accounts payable | 40.3 | |
Accrued compensation | 27 | |
Deferred taxes | 29.5 | |
Other current liabilities | 62.3 | |
Current liabilities held for sale | $ 159.1 |
Discontinued Operations - Sch_2
Discontinued Operations - Schedule of Amounts Included in Discontinued Operations (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Earnings from discontinued operations, net of tax | $ 15,600,000 | $ 19,100,000 |
Gain on disposition of discontinued operations, net of tax | 1,717,300,000 | 0 |
Net earnings from discontinued operations | 1,732,900,000 | 19,100,000 |
Depreciation and amortization | 0 | 1,900,000 |
Held-for-sale or Disposed of by Sale | TransCore Holdings Inc, Zetec and Civco Radiotherapy | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net revenues | 100,400,000 | 152,500,000 |
Cost of sales | 71,200,000 | 94,700,000 |
Gross profit | 29,200,000 | 57,800,000 |
Selling, general and administrative expenses | 19,900,000 | 31,900,000 |
Income from operations | 9,300,000 | 25,900,000 |
Other income (expense), net | 100,000 | (100,000) |
Earnings before income taxes | 9,400,000 | 25,800,000 |
Income taxes | (6,200,000) | 6,700,000 |
Earnings from discontinued operations, net of tax | 15,600,000 | 19,100,000 |
Gain on disposition of discontinued operations, net of tax | 1,717,300,000 | 0 |
Net earnings from discontinued operations | 1,732,900,000 | 19,100,000 |
Stock-based compensation expense | 900,000 | $ 1,300,000 |
Held-for-sale or Disposed of by Sale | Civco Radiotherapy | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Gain on disposition of discontinued operations, net of tax | $ 4,500,000 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Stock-based compensation | $ 35.9 | $ 31.6 |
Tax effect recognized in net earnings from continuing operations | $ 7.5 | $ 6.6 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Jul. 01, 2020 | Mar. 31, 2022 | Mar. 31, 2021 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee stock options granted during the period (in shares) | 365 | 498 | |
Fair value per share (in dollars per share) | $ 115.83 | $ 94.69 | |
Cash received from exercise of options | $ 38.7 | $ 19.2 | |
Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards granted during period (in shares) | 219 | 207 | |
Weighted average fair value per share of restricted stock awards granted during the period (in dollars per share) | $ 455.84 | $ 404.14 | |
Restricted stock awards vested during period (in shares) | 116 | ||
Weighted average grant date fair value per share (in dollars per share) | $ 329.75 | ||
Weighted average vest date fair value per share (in dollars per share) | $ 457.31 | ||
Employee Stock Purchase Plan | |||
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% | ||
Discount on the average closing price for the employee stock purchase plan | 10.00% | ||
Shares of stock purchased during the period by participants in the employee stock purchase plan (in shares) | 13 | 13 | |
Amount paid for stock purchased during the period by participants in the employee stock purchase plan | $ 5.5 | $ 4.7 |
Stock Based Compensation - Weig
Stock Based Compensation - Weighted Average Assumptions Used to Value Option Grants (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Risk-free interest rate (%) | 2.05% | 0.94% |
Expected option life (years) | 5 years 7 months 17 days | 5 years 7 months 9 days |
Expected volatility (%) | 24.52% | 25.16% |
Expected dividend yield (%) | 0.54% | 0.56% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 131.5 | $ 112.7 |
Work in process | 36 | 30.2 |
Finished products | 72.1 | 69.3 |
Inventory reserves | (36.9) | (36.1) |
Inventories, net | $ 202.7 | $ 176.1 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 14,094.5 |
Additions | 25.6 |
Other | (0.5) |
Currency translation adjustments | (24.7) |
Balance at end of period | 14,094.9 |
Application Software | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 8,889.3 |
Additions | 25.6 |
Other | 0 |
Currency translation adjustments | (6.6) |
Balance at end of period | 8,908.3 |
Network Software & Systems | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 3,797 |
Additions | 0 |
Other | (0.5) |
Currency translation adjustments | (12.1) |
Balance at end of period | 3,784.4 |
Measurement & Analytical Solutions | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 1,160.6 |
Additions | 0 |
Other | 0 |
Currency translation adjustments | (5) |
Balance at end of period | 1,155.6 |
Process Technologies | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 247.6 |
Additions | 0 |
Other | 0 |
Currency translation adjustments | (1) |
Balance at end of period | $ 246.6 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (2,785.2) | $ (2,670.4) |
Intangible assets, gross (excluding goodwill) | 9,239.3 | 9,258.9 |
Intangible assets, net (excluding goodwill) | 6,454.1 | 6,588.5 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets (excluding goodwill) | 643.4 | 648.6 |
Customer related intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 7,527 | 7,532 |
Accumulated amortization | (2,205.3) | (2,108) |
Finite-lived intangible assets, net | 5,321.7 | 5,424 |
Unpatented technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 893.6 | 906.4 |
Accumulated amortization | (445.6) | (431.8) |
Finite-lived intangible assets, net | 448 | 474.6 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 149.4 | 149.5 |
Accumulated amortization | (125.2) | (122.4) |
Finite-lived intangible assets, net | 24.2 | 27.1 |
Patents and other protective rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 9.6 | 9.6 |
Accumulated amortization | (2.1) | (2.1) |
Finite-lived intangible assets, net | 7.5 | 7.5 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 16.3 | 12.8 |
Accumulated amortization | (7) | (6.1) |
Finite-lived intangible assets, net | $ 9.3 | $ 6.7 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 148.1 | $ 146.3 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 145.8 | $ 145.1 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments and Debt - Schedule of Fixed-Rate Senior Notes, Fair Value (Details) - Senior Notes | Mar. 31, 2022USD ($) |
$500 3.125% senior notes due 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face amount of debt | $ 500,000,000 |
Fixed interest rate (as a percent) | 3.125% |
$300 0.450% senior notes due 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face amount of debt | $ 300,000,000 |
Fixed interest rate (as a percent) | 0.45% |
$700 3.650% senior notes due 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face amount of debt | $ 700,000,000 |
Fixed interest rate (as a percent) | 3.65% |
$500 2.350% senior notes due 2024 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face amount of debt | $ 500,000,000 |
Fixed interest rate (as a percent) | 2.35% |
$300 3.850% senior notes due 2025 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face amount of debt | $ 300,000,000 |
Fixed interest rate (as a percent) | 3.85% |
$700 1.000% senior notes due 2025 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face amount of debt | $ 700,000,000 |
Fixed interest rate (as a percent) | 1.00% |
$700 3.800% senior notes due 2026 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face amount of debt | $ 700,000,000 |
Fixed interest rate (as a percent) | 3.80% |
$700 1.400% senior notes due 2027 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face amount of debt | $ 700,000,000 |
Fixed interest rate (as a percent) | 1.40% |
$800 4.200% senior notes due 2028 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face amount of debt | $ 800,000,000 |
Fixed interest rate (as a percent) | 4.20% |
$700 2.950% senior notes due 2029 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face amount of debt | $ 700,000,000 |
Fixed interest rate (as a percent) | 2.95% |
$600 2.000% senior notes due 2030 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face amount of debt | $ 600,000,000 |
Fixed interest rate (as a percent) | 2.00% |
$1,000 1.750% senior notes due 2031 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Face amount of debt | $ 1,000,000,000 |
Fixed interest rate (as a percent) | 1.75% |
Fair Value, Inputs, Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fixed rate senior notes carrying amount | $ 7,500,000,000 |
Fair Value, Inputs, Level 2 | $500 3.125% senior notes due 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term debt, fair value | 503,000,000 |
Fair Value, Inputs, Level 2 | $300 0.450% senior notes due 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term debt, fair value | 299,000,000 |
Fair Value, Inputs, Level 2 | $700 3.650% senior notes due 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term debt, fair value | 710,000,000 |
Fair Value, Inputs, Level 2 | $500 2.350% senior notes due 2024 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term debt, fair value | 493,000,000 |
Fair Value, Inputs, Level 2 | $300 3.850% senior notes due 2025 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term debt, fair value | 305,000,000 |
Fair Value, Inputs, Level 2 | $700 1.000% senior notes due 2025 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term debt, fair value | 650,000,000 |
Fair Value, Inputs, Level 2 | $700 3.800% senior notes due 2026 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term debt, fair value | 717,000,000 |
Fair Value, Inputs, Level 2 | $700 1.400% senior notes due 2027 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term debt, fair value | 635,000,000 |
Fair Value, Inputs, Level 2 | $800 4.200% senior notes due 2028 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term debt, fair value | 831,000,000 |
Fair Value, Inputs, Level 2 | $700 2.950% senior notes due 2029 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term debt, fair value | 675,000,000 |
Fair Value, Inputs, Level 2 | $600 2.000% senior notes due 2030 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term debt, fair value | 534,000,000 |
Fair Value, Inputs, Level 2 | $1,000 1.750% senior notes due 2031 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term debt, fair value | $ 864,000,000 |
Contingencies (Details)
Contingencies (Details) individual in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($)individualclaim | |
Vertafore Litigation | |
Loss Contingencies [Line Items] | |
Number of pending putative class actions | 3 |
Number of individuals represented by class actions | individual | 27.7 |
Allen, et al. v. Vertafore, Inc. | |
Loss Contingencies [Line Items] | |
Number of pending putative class actions | 2 |
Mulvey, et al. v. Vertafore, Inc. | |
Loss Contingencies [Line Items] | |
Number of pending putative class actions | 1 |
Verathon, Inc. | |
Loss Contingencies [Line Items] | |
Litigation settlement, one time charge | $ | $ 4.1 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Net revenues: | $ 1,526.6 | $ 1,376.1 |
Percent change in net revenues | 10.90% | |
Gross profit: | $ 1,030.1 | 936 |
Percent change in gross profit | 10.10% | |
Operating profit | $ 476.9 | 424.4 |
Percent change in operating profit | 12.40% | |
Long-lived assets: | $ 210.1 | 206.7 |
Percent change in long-lived assets | 1.60% | |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Unallocated corporate general and administrative expenses | $ 55.8 | 49.8 |
Application Software | ||
Segment Reporting Information [Line Items] | ||
Net revenues: | $ 631.5 | 576.6 |
Percent change in net revenues | 9.50% | |
Gross profit: | $ 437.8 | 398.7 |
Percent change in gross profit | 9.80% | |
Operating profit | $ 173.8 | 153.7 |
Percent change in operating profit | 13.10% | |
Long-lived assets: | $ 135.8 | 126.7 |
Percent change in long-lived assets | 7.20% | |
Network Software & Systems | ||
Segment Reporting Information [Line Items] | ||
Net revenues: | $ 368.7 | 314.2 |
Percent change in net revenues | 17.30% | |
Gross profit: | $ 302.4 | 256.4 |
Percent change in gross profit | 17.90% | |
Operating profit | $ 145.4 | 114.1 |
Percent change in operating profit | 27.40% | |
Long-lived assets: | $ 28.5 | 27.8 |
Percent change in long-lived assets | 2.50% | |
Measurement & Analytical Solutions | ||
Segment Reporting Information [Line Items] | ||
Net revenues: | $ 392.4 | 369.6 |
Percent change in net revenues | 6.20% | |
Gross profit: | $ 217.6 | 218.2 |
Percent change in gross profit | (0.30%) | |
Operating profit | $ 115.9 | 121.5 |
Percent change in operating profit | (4.60%) | |
Long-lived assets: | $ 32.5 | 33.9 |
Percent change in long-lived assets | (4.10%) | |
Process Technologies | ||
Segment Reporting Information [Line Items] | ||
Net revenues: | $ 134 | 115.7 |
Percent change in net revenues | 15.80% | |
Gross profit: | $ 72.3 | 62.7 |
Percent change in gross profit | 15.30% | |
Operating profit | $ 41.8 | 35.1 |
Percent change in operating profit | 19.10% | |
Long-lived assets: | $ 13.3 | $ 18.3 |
Percent change in long-lived assets | (27.30%) |
Revenues from Contracts - Disag
Revenues from Contracts - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 1,526.6 | $ 1,376.1 |
Software and related services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 970 | 864.5 |
Engineered products and related services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 556.6 | $ 511.6 |
Revenues from Contracts - Remai
Revenues from Contracts - Remaining Performance Obligations Narrative (Details) $ in Millions | Mar. 31, 2022USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 4,000.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 4,000.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | 2,718 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 2,718 |
Remaining performance obligations, percentage | 68.00% |
Remaining performance obligations, expected timing of satisfaction | 12 months |
Revenues from Contracts - Contr
Revenues from Contracts - Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Unbilled receivables | $ 110 | $ 95.3 |
Change in unbilled receivables | 14.7 | |
Deferred revenue - current | (1,120.3) | (1,130.2) |
Change in deferred revenue - current | 9.9 | |
Deferred revenue - non-current | (111.5) | (75.3) |
Change in deferred revenue - non-current | (36.2) | |
Net contract assets/(liabilities) | (1,121.8) | $ (1,110.2) |
Change in net contract assets/(liabilities) | $ (11.6) |
Revenues from Contracts - Narra
Revenues from Contracts - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized from contract liability balance | $ 495.7 | $ 450.9 | |
Deferred commissions | $ 58.3 | $ 56.7 |