x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2011, OR |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____________ TO ________________ |
Delaware | 13-3668641 | |
(State or other jurisdiction of | (I.R.S Employer Identification No.) | |
incorporation or organization) | ||
1900 Polaris Parkway Columbus, Ohio 43240 and Im Langacher, P.O. Box MT-100 CH 8606 Greifensee, Switzerland _________________________________________________________ (Address of principal executive offices) (Zip Code) |
PAGE | ||
Item 1. | Financial Statements |
September 30, 2011 | September 30, 2010 | ||||||
Net sales | |||||||
Products | $ | 479,241 | $ | 382,369 | |||
Service | 121,873 | 107,844 | |||||
Total net sales | 601,114 | 490,213 | |||||
Cost of sales | |||||||
Products | 214,483 | 169,196 | |||||
Service | 72,214 | 64,962 | |||||
Gross profit | 314,417 | 256,055 | |||||
Research and development | 30,068 | 24,992 | |||||
Selling, general and administrative | 185,832 | 145,303 | |||||
Amortization | 4,795 | 3,667 | |||||
Interest expense | 5,893 | 4,792 | |||||
Restructuring charges | 362 | 566 | |||||
Other charges (income), net | 409 | (127 | ) | ||||
Earnings before taxes | 87,058 | 76,862 | |||||
Provision for taxes | 18,862 | 14,781 | |||||
Net earnings | $ | 68,196 | $ | 62,081 | |||
Basic earnings per common share: | |||||||
Net earnings | $ | 2.15 | $ | 1.87 | |||
Weighted average number of common shares | 31,760,270 | 33,171,017 | |||||
Diluted earnings per common share: | |||||||
Net earnings | $ | 2.09 | $ | 1.82 | |||
Weighted average number of common and common equivalent shares | 32,664,482 | 34,027,191 |
September 30, 2011 | September 30, 2010 | ||||||
Net sales | |||||||
Products | $ | 1,305,636 | $ | 1,054,602 | |||
Service | 355,332 | 320,811 | |||||
Total net sales | 1,660,968 | 1,375,413 | |||||
Cost of sales | |||||||
Products | 571,449 | 458,297 | |||||
Service | 217,404 | 196,510 | |||||
Gross profit | 872,115 | 720,606 | |||||
Research and development | 86,024 | 70,562 | |||||
Selling, general and administrative | 519,264 | 423,919 | |||||
Amortization | 12,742 | 10,613 | |||||
Interest expense | 17,296 | 14,757 | |||||
Restructuring charges | 2,831 | 2,476 | |||||
Other charges (income), net | 2,285 | 857 | |||||
Earnings before taxes | 231,673 | 197,422 | |||||
Provision for taxes | 56,462 | 46,126 | |||||
Net earnings | $ | 175,211 | $ | 151,296 | |||
Basic earnings per common share: | |||||||
Net earnings | $ | 5.47 | $ | 4.52 | |||
Weighted average number of common shares | 32,016,238 | 33,488,099 | |||||
Diluted earnings per common share: | |||||||
Net earnings | $ | 5.31 | $ | 4.41 | |||
Weighted average number of common and common equivalent shares | 32,990,000 | 34,318,582 |
September 30, 2011 | December 31, 2010 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 262,473 | $ | 447,577 | |||
Trade accounts receivable, less allowances of $12,520 at September 30, 2011 and $11,536 at December 31, 2010 | 398,402 | 368,936 | |||||
Inventories | 265,351 | 217,104 | |||||
Current deferred tax assets, net | 51,873 | 44,548 | |||||
Other current assets and prepaid expenses | 75,047 | 66,730 | |||||
Total current assets | 1,053,146 | 1,144,895 | |||||
Property, plant and equipment, net | 408,156 | 364,472 | |||||
Goodwill | 452,158 | 434,699 | |||||
Other intangible assets, net | 123,907 | 104,372 | |||||
Non-current deferred tax assets, net | 99,280 | 95,996 | |||||
Other non-current assets | 158,790 | 138,629 | |||||
Total assets | $ | 2,295,437 | $ | 2,283,063 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Trade accounts payable | $ | 167,919 | $ | 138,105 | |||
Accrued and other liabilities | 108,442 | 100,793 | |||||
Accrued compensation and related items | 129,740 | 138,358 | |||||
Deferred revenue and customer prepayments | 103,169 | 86,746 | |||||
Taxes payable | 58,447 | 49,577 | |||||
Current deferred tax liabilities | 18,423 | 17,705 | |||||
Short-term borrowings and current maturities of long-term debt | 31,143 | 10,902 | |||||
Total current liabilities | 617,283 | 542,186 | |||||
Long-term debt | 550,554 | 670,301 | |||||
Non-current deferred tax liabilities | 130,354 | 124,523 | |||||
Other non-current liabilities | 177,837 | 174,469 | |||||
Total liabilities | 1,476,028 | 1,511,479 | |||||
Commitments and contingencies (Note 14) | |||||||
Shareholders’ equity: | |||||||
Preferred stock, $0.01 par value per share; authorized 10,000,000 shares | — | — | |||||
Common stock, $0.01 par value per share; authorized 125,000,000 shares; issued 44,786,011 and 44,786,011 shares; outstanding 31,584,112 and 32,425,315 shares at September 30, 2011 and December 31, 2010, respectively | 448 | 448 | |||||
Additional paid-in capital | 613,391 | 597,195 | |||||
Treasury stock at cost (13,201,899 shares at September 30, 2011 and 12,360,696 shares at December 31, 2010) | (1,210,808 | ) | (1,057,390 | ) | |||
Retained earnings | 1,391,781 | 1,223,130 | |||||
Accumulated other comprehensive income (loss) | 24,597 | 8,201 | |||||
Total shareholders’ equity | 819,409 | 771,584 | |||||
Total liabilities and shareholders’ equity | $ | 2,295,437 | $ | 2,283,063 |
Accumulated | ||||||||||||||||||||||||||
Common Stock | Additional | Other | ||||||||||||||||||||||||
Paid-in | Treasury | Retained | Comprehensive | |||||||||||||||||||||||
Shares | Amount | Capital | Stock | Earnings | Income (Loss) | Total | ||||||||||||||||||||
Balance at December 31, 2009 | 33,851,124 | $ | 448 | $ | 574,034 | $ | (857,130 | ) | $ | 1,009,995 | $ | (16,209 | ) | $ | 711,138 | |||||||||||
Exercise of stock options and restricted stock units | 527,276 | — | — | 39,555 | (19,100 | ) | — | 20,455 | ||||||||||||||||||
Other treasury stock issuances | 2,549 | — | — | 183 | 87 | — | 270 | |||||||||||||||||||
Repurchases of common stock | (1,955,634 | ) | — | — | (239,998 | ) | — | — | (239,998 | ) | ||||||||||||||||
Tax benefit resulting from exercise of certain employee stock options | — | — | 10,776 | — | — | — | 10,776 | |||||||||||||||||||
Share-based compensation | — | — | 12,385 | — | — | — | 12,385 | |||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||
Net earnings | — | — | — | — | 232,148 | — | 232,148 | |||||||||||||||||||
Net unrealized loss on cash flow hedging arrangements, net of tax | — | — | — | — | — | (6,410 | ) | (6,410 | ) | |||||||||||||||||
Change in currency translation adjustment, net of tax | — | — | — | — | — | 31,647 | 31,647 | |||||||||||||||||||
Pension adjustment, net of tax | — | — | — | — | — | (827 | ) | (827 | ) | |||||||||||||||||
Total comprehensive income | 256,558 | |||||||||||||||||||||||||
Balance at December 31, 2010 | 32,425,315 | $ | 448 | $ | 597,195 | $ | (1,057,390 | ) | $ | 1,223,130 | $ | 8,201 | $ | 771,584 | ||||||||||||
Exercise of stock options and restricted stock units | 220,463 | — | — | 17,761 | (6,560 | ) | — | 11,201 | ||||||||||||||||||
Repurchases of common stock | (1,061,666 | ) | — | — | (171,179 | ) | — | — | (171,179 | ) | ||||||||||||||||
Tax benefit resulting from exercise of certain employee stock options | — | — | 7,361 | — | — | — | 7,361 | |||||||||||||||||||
Share-based compensation | — | — | 8,835 | — | — | — | 8,835 | |||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||
Net earnings | — | — | — | — | 175,211 | — | 175,211 | |||||||||||||||||||
Net unrealized loss on cash flow hedging arrangements, net of tax | — | — | — | — | — | (2,295 | ) | (2,295 | ) | |||||||||||||||||
Change in currency translation adjustment, net of tax | — | — | — | — | — | 15,659 | 15,659 | |||||||||||||||||||
Pension adjustment, net of tax | — | — | — | — | — | 3,032 | 3,032 | |||||||||||||||||||
Total comprehensive income (a) | 191,607 | |||||||||||||||||||||||||
Balance at September 30, 2011 | 31,584,112 | $ | 448 | $ | 613,391 | $ | (1,210,808 | ) | $ | 1,391,781 | $ | 24,597 | $ | 819,409 |
September 30, 2011 | September 30, 2010 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 175,211 | $ | 151,296 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation | 23,370 | 22,261 | |||||
Amortization | 12,742 | 10,613 | |||||
Deferred tax provision | (9,753 | ) | (7,392 | ) | |||
Excess tax benefits from share-based payment arrangements | (6,259 | ) | (3,410 | ) | |||
Share-based compensation | 8,835 | 9,051 | |||||
Other | (574 | ) | 146 | ||||
Increase (decrease) in cash resulting from changes in: | |||||||
Trade accounts receivable, net | (18,387 | ) | (17,401 | ) | |||
Inventories | (38,318 | ) | (41,614 | ) | |||
Other current assets | (8,173 | ) | (9,259 | ) | |||
Trade accounts payable | 24,211 | 15,108 | |||||
Taxes payable | 6,777 | 20,280 | |||||
Accruals and other | 7,982 | 55,591 | |||||
Net cash provided by operating activities | 177,664 | 205,270 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sale of property, plant and equipment | 2,402 | 157 | |||||
Purchase of property, plant and equipment | (64,506 | ) | (38,564 | ) | |||
Acquisitions | (34,662 | ) | (12,557 | ) | |||
Other investing activities | (903 | ) | — | ||||
Net cash used in investing activities | (97,669 | ) | (50,964 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from borrowings | 65,993 | 93,697 | |||||
Repayments of borrowings | (170,726 | ) | (52,115 | ) | |||
Proceeds from stock option exercises | 11,189 | 12,244 | |||||
Repurchases of common stock | (171,179 | ) | (148,794 | ) | |||
Excess tax benefits from share-based payment arrangements | 6,259 | 3,410 | |||||
Acquisition contingent consideration paid | (7,750 | ) | — | ||||
Other financing activities | (111 | ) | (6,941 | ) | |||
Net cash used in financing activities | (266,325 | ) | (98,499 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 1,226 | 2,046 | |||||
Net (decrease) increase in cash and cash equivalents | (185,104 | ) | 57,853 | ||||
Cash and cash equivalents: | |||||||
Beginning of period | 447,577 | 85,031 | |||||
End of period | $ | 262,473 | $ | 142,884 |
1. | BASIS OF PRESENTATION |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
September 30, 2011 | December 31, 2010 | ||||||
Raw materials and parts | $ | 111,143 | $ | 101,660 | |||
Work-in-progress | 50,596 | 36,615 | |||||
Finished goods | 103,612 | 78,829 | |||||
$ | 265,351 | $ | 217,104 |
September 30, 2011 | December 31, 2010 | ||||||||||||||
Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | ||||||||||||
Customer relationships | $ | 95,673 | $ | (17,981 | ) | $ | 80,674 | $ | (15,968 | ) | |||||
Proven technology and patents | 42,627 | (25,118 | ) | 36,262 | (22,298 | ) | |||||||||
Tradename (finite life) | 4,059 | (1,033 | ) | 2,420 | (760 | ) | |||||||||
Tradename (indefinite life) | 25,102 | — | 23,634 | — | |||||||||||
Other | 769 | (191 | ) | 510 | (102 | ) | |||||||||
$ | 168,230 | $ | (44,323 | ) | $ | 143,500 | $ | (39,128 | ) |
September 30, 2011 | September 30, 2010 | ||||||
Balance at beginning of period | $ | 15,680 | $ | 15,856 | |||
Accruals for warranties | 12,164 | 11,712 | |||||
Foreign currency translation | 291 | (196 | ) | ||||
Payments / utilizations | (11,399 | ) | (11,984 | ) | |||
Balance at end of period | $ | 16,736 | $ | 15,388 |
3. | ACQUISITIONS |
4. | FINANCIAL INSTRUMENTS |
5. | FAIR VALUE MEASUREMENTS |
Level 1: | Quoted prices in active markets for identical assets and liabilities |
Level 2: | Observable inputs other than quoted prices in active markets for identical assets and liabilities |
Level 3: | Unobservable inputs |
September 30, 2011 | December 31, 2010 | ||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Cash equivalents | $ | 11,267 | $ | — | $ | 11,267 | $ | — | $ | 243,514 | $ | 230,000 | $ | 13,514 | $ | — | |||||||||||||||
Foreign currency forward contracts | 149 | — | 149 | — | 1,763 | — | 1,763 | — | |||||||||||||||||||||||
Total | $ | 11,416 | $ | — | $ | 11,416 | $ | — | $ | 245,277 | $ | 230,000 | $ | 15,277 | $ | — | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Interest rate swap agreement | $ | 9,455 | $ | — | $ | 9,455 | $ | — | $ | 5,842 | $ | — | $ | 5,842 | $ | — | |||||||||||||||
Foreign currency forward contracts | 1,152 | — | 1,152 | — | 305 | — | 305 | — | |||||||||||||||||||||||
Total | $ | 10,607 | $ | — | $ | 10,607 | $ | — | $ | 6,147 | $ | — | $ | 6,147 | $ | — |
6. | INCOME TAXES |
7. | DEBT |
September 30, 2011 | |||||||||||
U.S. Dollar | Other Principal Trading Currencies | Total | |||||||||
6.30% $100 million Senior Notes | $ | 100,000 | $ | — | $ | 100,000 | |||||
Credit facility | 401,100 | 49,454 | 450,554 | ||||||||
Other local arrangements | — | 31,143 | 31,143 | ||||||||
Total debt | 501,100 | 80,597 | 581,697 | ||||||||
Less: current portion | — | (31,143 | ) | (31,143 | ) | ||||||
Total long-term debt | $ | 501,100 | $ | 49,454 | $ | 550,554 |
8. | SHARE REPURCHASE PROGRAM AND TREASURY STOCK |
9. | EARNINGS PER COMMON SHARE |
2011 | 2010 | ||||
Three months ended | 904,212 | 856,174 | |||
Nine months ended | 973,762 | 830,483 |
10. | NET PERIODIC BENEFIT COST |
U.S. Pension Benefits | Non-U.S. Pension Benefits | Other U.S. Post-retirement Benefits | |||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
Service cost, net | $ | 83 | $ | 66 | $ | 3,746 | $ | 3,055 | $ | 76 | $ | 74 | |||||||||||
Interest cost on projected benefit obligations | 1,606 | 1,610 | 6,472 | 5,592 | 183 | 189 | |||||||||||||||||
Expected return on plan assets | (1,875 | ) | (1,727 | ) | (9,118 | ) | (7,379 | ) | — | — | |||||||||||||
Net amortization and deferral | — | — | (404 | ) | (324 | ) | — | (168 | ) | ||||||||||||||
Recognition of actuarial losses/(gains) | 1,276 | 1,324 | 288 | 266 | (173 | ) | (184 | ) | |||||||||||||||
Net periodic pension cost/(credit) | $ | 1,090 | $ | 1,273 | $ | 984 | $ | 1,210 | $ | 86 | $ | (89 | ) |
U.S. Pension Benefits | Non-U.S. Pension Benefits | Other U.S. Post-retirement Benefits | |||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
Service cost, net | $ | 248 | $ | 198 | $ | 10,693 | $ | 9,323 | $ | 228 | $ | 221 | |||||||||||
Interest cost on projected benefit obligations | 4,817 | 4,829 | 18,667 | 16,563 | 548 | 568 | |||||||||||||||||
Expected return on plan assets | (5,624 | ) | (5,180 | ) | (25,970 | ) | (21,588 | ) | — | — | |||||||||||||
Net amortization and deferral | — | — | (1,130 | ) | (932 | ) | (519 | ) | (503 | ) | |||||||||||||
Recognition of actuarial losses/(gains) | 3,827 | 3,973 | 864 | 796 | — | (552 | ) | ||||||||||||||||
Recognition of settlement/curtailment losses, net | — | — | — | 58 | — | — | |||||||||||||||||
Net periodic pension cost/(credit) | $ | 3,268 | $ | 3,820 | $ | 3,124 | $ | 4,220 | $ | 257 | $ | (266 | ) |
11. | RESTRUCTURING CHARGES |
Employee Related | Other | Total | |||||||||
Balance at December 31, 2010 | $ | 7,721 | $ | 135 | $ | 7,856 | |||||
Restructuring charges | 2,441 | 390 | 2,831 | ||||||||
Cash payments | (3,602 | ) | (501 | ) | (4,103 | ) | |||||
Impact of foreign currency | 101 | — | 101 | ||||||||
Balance at September 30, 2011 | $ | 6,661 | $ | 24 | $ | 6,685 |
12. | OTHER CHARGES (INCOME), NET |
13. | SEGMENT REPORTING |
Net Sales to | Net Sales to | ||||||||||||||||||
For the three months ended | External | Other | Total Net | Segment | |||||||||||||||
September 30, 2011 | Customers | Segments | Sales | Profit | Goodwill (c) | ||||||||||||||
U.S. Operations | $ | 173,449 | $ | 20,160 | $ | 193,609 | $ | 33,139 | $ | 307,631 | |||||||||
Swiss Operations | 38,945 | 109,015 | 147,960 | 29,687 | 23,988 | ||||||||||||||
Western European Operations | 173,367 | 27,693 | 201,060 | 26,273 | 104,823 | ||||||||||||||
Chinese Operations | 105,053 | 26,866 | 131,919 | 27,065 | 707 | ||||||||||||||
Other (a) | 110,300 | 1,981 | 112,281 | 15,058 | 15,009 | ||||||||||||||
Eliminations and Corporate (b) | — | (185,715 | ) | (185,715 | ) | (32,705 | ) | — | |||||||||||
Total | $ | 601,114 | $ | — | $ | 601,114 | $ | 98,517 | $ | 452,158 |
Net Sales to | Net Sales to | ||||||||||||||||
For the nine months ended | External | Other | Total Net | Segment | |||||||||||||
September 30, 2011 | Customers | Segments | Sales | Profit | |||||||||||||
U.S. Operations | $ | 488,678 | $ | 58,260 | $ | 546,938 | $ | 86,303 | |||||||||
Swiss Operations | 102,769 | 301,766 | 404,535 | 80,745 | |||||||||||||
Western European Operations | 493,646 | 79,370 | 573,016 | 65,349 | |||||||||||||
Chinese Operations | 275,611 | 91,636 | 367,247 | 82,197 | |||||||||||||
Other (a) | 300,264 | 4,316 | 304,580 | 35,165 | |||||||||||||
Eliminations and Corporate (b) | — | (535,348 | ) | (535,348 | ) | (82,932 | ) | ||||||||||
Total | $ | 1,660,968 | $ | — | $ | 1,660,968 | $ | 266,827 |
Net Sales to | Net Sales to | ||||||||||||||||||
For the three months ended | External | Other | Total Net | Segment | |||||||||||||||
September 30, 2010 | Customers | Segments | Sales | Profit | Goodwill (c) | ||||||||||||||
U.S. Operations | $ | 158,363 | $ | 13,856 | $ | 172,219 | $ | 30,860 | $ | 319,145 | |||||||||
Swiss Operations | 27,147 | 85,307 | 112,454 | 22,857 | 19,732 | ||||||||||||||
Western European Operations | 138,670 | 23,444 | 162,114 | 17,001 | 95,137 | ||||||||||||||
Chinese Operations | 81,211 | 30,238 | 111,449 | 26,333 | 666 | ||||||||||||||
Other (a) | 84,822 | 1,278 | 86,100 | 9,341 | 13,652 | ||||||||||||||
Eliminations and Corporate (b) | — | (154,123 | ) | (154,123 | ) | (20,632 | ) | — | |||||||||||
Total | $ | 490,213 | $ | — | $ | 490,213 | $ | 85,760 | $ | 448,332 |
Net Sales to | Net Sales to | ||||||||||||||||
For the nine months ended | External | Other | Total Net | Segment | |||||||||||||
September 30, 2010 | Customers | Segments | Sales | Profit | |||||||||||||
U.S. Operations | $ | 445,820 | $ | 42,800 | $ | 488,620 | $ | 85,343 | |||||||||
Swiss Operations | 76,270 | 238,217 | 314,487 | 61,253 | |||||||||||||
Western European Operations | 414,738 | 65,098 | 479,836 | 51,633 | |||||||||||||
Chinese Operations | 208,809 | 77,060 | 285,869 | 65,086 | |||||||||||||
Other (a) | 229,776 | 2,955 | 232,731 | 19,962 | |||||||||||||
Eliminations and Corporate (b) | — | (426,130 | ) | (426,130 | ) | (57,152 | ) | ||||||||||
Total | $ | 1,375,413 | $ | — | $ | 1,375,413 | $ | 226,125 |
(a) | Other includes reporting units in Eastern Europe, Latin America, Southeast Asia and other countries. |
(b) | Eliminations and Corporate includes the elimination of inter-segment transactions and certain corporate expenses and intercompany investments, which are not included in the Company’s operating segments. |
(c) | Goodwill as of September 30, 2011 includes additions of $10.9 million in Western European Operations related to an acquisition in the third quarter of 2011 and additions of $1.9 million in U.S. Operations and $2.5 million in Swiss Operations related to acquisitions in the first quarter of 2011. See Note 3 for additional information. Goodwill as of September 30, 2010 included an addition of $7.4 million in Western European Operations related to our acquisition of a pipette distributor in the first quarter of 2010. Other goodwill changes are primarily related to foreign currency fluctuations. |
Three Months Ended | Nine Months Ended | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Earnings before taxes | $ | 87,058 | $ | 76,862 | $ | 231,673 | $ | 197,422 | |||||||
Amortization | 4,795 | 3,667 | 12,742 | 10,613 | |||||||||||
Interest expense | 5,893 | 4,792 | 17,296 | 14,757 | |||||||||||
Restructuring charges | 362 | 566 | 2,831 | 2,476 | |||||||||||
Other charges (income), net | 409 | (127 | ) | 2,285 | 857 | ||||||||||
Segment profit | $ | 98,517 | $ | 85,760 | $ | 266,827 | $ | 226,125 |
14. | CONTINGENCIES |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||
(unaudited) | % | (unaudited) | % | (unaudited) | % | (unaudited) | % | ||||||||||||||||||
Net sales | $ | 601,114 | 100.0 | $ | 490,213 | 100.0 | $ | 1,660,968 | 100.0 | $ | 1,375,413 | 100.0 | |||||||||||||
Cost of sales | 286,697 | 47.7 | 234,158 | 47.8 | 788,853 | 47.5 | 654,807 | 47.6 | |||||||||||||||||
Gross profit | 314,417 | 52.3 | 256,055 | 52.2 | 872,115 | 52.5 | 720,606 | 52.4 | |||||||||||||||||
Research and development | 30,068 | 5.0 | 24,992 | 5.1 | 86,024 | 5.2 | 70,562 | 5.1 | |||||||||||||||||
Selling, general and administrative | 185,832 | 30.9 | 145,303 | 29.6 | 519,264 | 31.3 | 423,919 | 30.8 | |||||||||||||||||
Amortization | 4,795 | 0.8 | 3,667 | 0.7 | 12,742 | 0.8 | 10,613 | 0.8 | |||||||||||||||||
Interest expense | 5,893 | 1.0 | 4,792 | 1.0 | 17,296 | 1.0 | 14,757 | 1.1 | |||||||||||||||||
Restructuring charges | 362 | — | 566 | 0.1 | 2,831 | 0.2 | 2,476 | 0.2 | |||||||||||||||||
Other charges (income), net | 409 | 0.1 | (127 | ) | — | 2,285 | 0.1 | 857 | — | ||||||||||||||||
Earnings before taxes (a) | 87,058 | 14.5 | 76,862 | 15.7 | 231,673 | 13.9 | 197,422 | 14.4 | |||||||||||||||||
Provision for taxes (b) | 18,862 | 3.1 | 14,781 | 3.0 | 56,462 | 3.4 | 46,126 | 3.4 | |||||||||||||||||
Net earnings (a) | $ | 68,196 | 11.4 | $ | 62,081 | 12.7 | $ | 175,211 | 10.5 | $ | 151,296 | 11.0 |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||
2011 | 2010 | %1) | 2011 | 2010 | %1) | ||||||||||||||||
Total net sales | $ | 193,609 | $ | 172,219 | 12 | % | $ | 546,938 | $ | 488,620 | 12 | % | |||||||||
Net sales to external customers | $ | 173,449 | $ | 158,363 | 10 | % | $ | 488,678 | $ | 445,820 | 10 | % | |||||||||
Segment profit | $ | 33,139 | $ | 30,860 | 7 | % | $ | 86,303 | $ | 85,343 | 1 | % |
1) | Represents U.S. dollar (decline) growth for net sales and segment profit. |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||
2011 | 2010 | %1) | 2011 | 2010 | %1) | ||||||||||||||||
Total net sales | $ | 147,960 | $ | 112,454 | 32 | % | $ | 404,535 | $ | 314,487 | 29 | % | |||||||||
Net sales to external customers | $ | 38,945 | $ | 27,147 | 43 | % | $ | 102,769 | $ | 76,270 | 35 | % | |||||||||
Segment profit | $ | 29,687 | $ | 22,857 | 30 | % | $ | 80,745 | $ | 61,253 | 32 | % |
1) | Represents U.S. dollar (decline) growth for net sales and segment profit. |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||
2011 | 2010 | %1) | 2011 | 2010 | %1) | ||||||||||||||||
Total net sales | $ | 201,060 | $ | 162,114 | 24 | % | $ | 573,016 | $ | 479,836 | 19 | % | |||||||||
Net sales to external customers | $ | 173,367 | $ | 138,670 | 25 | % | $ | 493,646 | $ | 414,738 | 19 | % | |||||||||
Segment profit | $ | 26,273 | $ | 17,001 | 55 | % | $ | 65,349 | $ | 51,633 | 27 | % |
1) | Represents U.S. dollar (decline) growth for net sales and segment profit. |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||
2011 | 2010 | %1) | 2011 | 2010 | %1) | ||||||||||||||||
Total net sales | $ | 131,919 | $ | 111,449 | 18 | % | $ | 367,247 | $ | 285,869 | 28 | % | |||||||||
Net sales to external customers | $ | 105,053 | $ | 81,211 | 29 | % | $ | 275,611 | $ | 208,809 | 32 | % | |||||||||
Segment profit | $ | 27,065 | $ | 26,333 | 3 | % | $ | 82,197 | $ | 65,086 | 26 | % |
1) | Represents U.S. dollar (decline) growth for net sales and segment profit. |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||
2011 | 2010 | %1) | 2011 | 2010 | %1) | ||||||||||||||||
Total net sales | $ | 112,281 | $ | 86,100 | 30 | % | $ | 304,580 | $ | 232,731 | 31 | % | |||||||||
Net sales to external customers | $ | 110,300 | $ | 84,822 | 30 | % | $ | 300,264 | $ | 229,776 | 31 | % | |||||||||
Segment profit | $ | 15,058 | $ | 9,341 | 61 | % | $ | 35,165 | $ | 19,962 | 76 | % |
1) | Represents U.S. dollar (decline) growth for net sales and segment profit. |
September 30, 2011 | |||||||||||
U.S. Dollar | Other Principal Trading Currencies | Total | |||||||||
6.30% $100 million Senior Notes | $ | 100,000 | $ | — | $ | 100,000 | |||||
Credit facility | 401,100 | 49,454 | 450,554 | ||||||||
Other local arrangements | — | 31,143 | 31,143 | ||||||||
Total debt | 501,100 | 80,597 | 581,697 | ||||||||
Less: current portion | — | (31,143 | ) | (31,143 | ) | ||||||
Total long-term debt | $ | 501,100 | $ | 49,454 | $ | 550,554 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings. None |
Item 1A. | Risk Factors. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
(a) | (b) | (c) | (d) | |||||||
Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value (in thousands of Shares that may yet be Purchased under the Program | |||||||
July 1 to July 31, 2011 | 90,900 | $ | 166.67 | 90,900 | $ | 791,272 | ||||
August 1 to August 31, 2011 | 163,956 | $ | 145.66 | 163,956 | $ | 767,387 | ||||
September 1 to September 30, 2011 | 118,731 | $ | 151.27 | 118,731 | $ | 749,424 | ||||
Total | 373,587 | $ | 152.55 | 373,587 | $ | 749,424 |
Item 3. | Defaults Upon Senior Securities. None |
Item 5. | Other information. None |
Item 6. | Exhibits. See Exhibit Index below. |
Mettler-Toledo International Inc. | ||||||
Date: | November 4, 2011 | By: | /s/ William P. Donnelly | |||
William P. Donnelly | ||||||
Group Vice President and Chief Financial Officer |
Exhibit No. | Description | ||
31.1* | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes — Oxley Act of 2002 | ||
31.2* | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes — Oxley Act of 2002 | ||
32* | Certification Pursuant to Section 906 of the Sarbanes — Oxley Act of 2002 | ||
101.INS* | XBRL Instance Document | ||
101.SCH* | XBRL Taxonomy Extension Schema Document | ||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | ||
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | ||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | ||
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document |
Interim Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) In Thousands, except Share data | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Current assets: | ||
Allowance for Doubtful Accounts Receivable, Current | $ 12,520 | $ 11,536 |
Shareholders' equity: | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 44,786,011 | 44,786,011 |
Common stock, shares outstanding | 31,584,112 | 32,425,315 |
Treasury stock, shares | 13,201,899 | 12,360,696 |
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of inventories |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of other intangible assets |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes to the Company's accrual for product warranties |
|
Document and Entity Information (USD $) | 9 Months Ended | |
---|---|---|
Sep. 30, 2011 | Jun. 30, 2011 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | METTLER TOLEDO INTERNATIONAL INC/ | |
Entity Central Index Key | 0001037646 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Fiscal Year Focus | 2011 | |
Document Period End Date | Sep. 30, 2011 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Public Float | $ 5,377,896,882 | |
Entity Common Stock, Shares Outstanding | 31,584,112 |
Earnings Per Common Share (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||
Diluted weighted average number of common shares outstanding |
|
Segment Reporting (Details Textuals) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011
U.S. Operations [Member] | Sep. 30, 2010
U.S. Operations [Member] | Sep. 30, 2011
U.S. Operations [Member] | Sep. 30, 2011
Swiss Operations [Member] | Sep. 30, 2011
Western European Operations [Member] | Sep. 30, 2010
Western European Operations [Member] | Sep. 30, 2011
Western European Operations [Member] | Sep. 30, 2010
Western European Operations [Member] | Sep. 30, 2011
Chinese Operations [Member] | Sep. 30, 2010
Chinese Operations [Member] | Sep. 30, 2011
Chinese Operations [Member] | Sep. 30, 2011
Other Operations [Member] | Mar. 31, 2011
Swiss Operations segment Member | |
Segment Reporting (Textuals) [Abstract] | |||||||||||||||||
Goodwill Acquired | $ 10,900,000 | $ 7,400,000 | |||||||||||||||
Business Acquisition Allocation Of Goodwill Acquired Amongst Segments | 2,500,000 | ||||||||||||||||
Restructuring charges | $ 362,000 | $ 566,000 | $ 2,831,000 | $ 2,476,000 | $ 200,000 | $ 100,000 | $ 700,000 | $ 200,000 | $ 100,000 | $ 400,000 | $ 1,400,000 | $ 100,000 | $ 100,000 | $ 200,000 | $ 300,000 |
"+ text.join( "
\n" ) +"
" + text[p] + "
\n"; } } }else{ formatted = '' + raw + '
'; } html = ''+ "\n"+''+ "\n"+''+ "\n"+' formatted: '+ ( this.Default == 'raw' ? 'as Filed' : 'with Text Wrapped' ) +''+ "\n"+' | '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS At September 30, 2011 and December 31, 2010, the Company had derivative assets totaling $0.1 million and $1.8 million, respectively, and derivative liabilities totaling $10.6 million and $6.1 million, respectively. The fair values of the interest rate swap agreement and foreign currency forward contracts that economically hedge short-term intercompany balances are estimated based upon inputs from current valuation information obtained from dealer quotes and priced with observable market assumptions and appropriate valuation adjustments for credit risk. The Company has evaluated the valuation methodologies used to develop the fair values by dealers in order to determine whether such valuations are representative of an exit price in the Company’s principal market. In addition, the Company uses an internally developed model to perform testing on the valuations received from brokers. The Company has also considered both its own credit risk and counterparty credit risk in determining fair value and determined these adjustments were insignificant at September 30, 2011 and December 31, 2010. At September 30, 2011 and December 31, 2010, the Company had $11.3 million and $243.5 million of cash equivalents, respectively, the fair value of which is determined through quoted and corroborated prices in active markets. The fair value of cash equivalents approximates cost. The difference between the fair value and carrying value of the Company’s long-term debt is not material. Under U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement consists of observable and unobservable inputs that reflect the assumptions that a market participant would use in pricing an asset or liability. A fair value hierarchy has been established that categorizes these inputs into three levels:
The following table presents for each of these hierarchy levels, the Company’s assets and liabilities that are measured at fair value on a recurring basis at September 30, 2011 and December 31, 2010:
|
Net Periodic Benefit Cost (Tables) | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans And Other Postretirement Benefit Plans Disclosures [Table Text Block] |
|
|
Income Taxes (Details) (USD $) In Millions, unless otherwise specified | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | |
Effective Income Tax Rate, Continuing Operations | 26.00% | 26.00% | ||
Discrete Tax Items | $ 3.8 | $ 5.2 | $ 3.8 | $ 5.2 |
Effective Tax Rate After Discrete Tax Items | 22.00% | 19.00% | 24.00% | 20.00% |
Debt (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt |
|
Net Periodic Benefit Cost | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | NET PERIODIC BENEFIT COST Net periodic pension cost for the Company’s defined benefit pension plans and U.S. post-retirement medical plan includes the following components for the three months ended September 30:
Net periodic pension cost for the Company’s defined benefit pension plans and U.S. post-retirement medical plan includes the following components for the nine months ended September 30:
As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, the Company expects to make employer contributions of approximately $19.1 million to its non-U.S. pension plans and employer contributions of approximately $1.4 million to its U.S. post-retirement medical plan during the year ended December 31, 2011. These estimates may change based upon several factors, including fluctuations in currency exchange rates, actual returns on plan assets and changes in legal requirements. |
Basis of Presentation | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Mettler-Toledo International Inc. ("Mettler-Toledo" or the "Company") is a leading global supplier of precision instruments and services. The Company manufactures weighing instruments for use in laboratory, industrial, packaging, logistics and food retailing applications. The Company also manufactures several related analytical instruments and provides automated chemistry solutions used in drug and chemical compound discovery and development. In addition, the Company manufactures metal detection and other end-of-line inspection systems used in production and packaging and provides solutions for use in certain process analytics applications. The Company's primary manufacturing facilities are located in China, Germany, Switzerland, the United Kingdom and the United States. The Company's principal executive offices are located in Columbus, Ohio and Greifensee, Switzerland. The accompanying interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include all entities in which the Company has control, which are its wholly-owned subsidiaries. The interim consolidated financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The interim consolidated financial statements as of September 30, 2011 and for the three and nine month periods ended September 30, 2011 and 2010 should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010. The accompanying interim consolidated financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. Operating results for the three and nine months ended September 30, 2011 are not necessarily indicative of the results to be expected for the full year ending December 31, 2011. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those estimates. A discussion of the Company’s critical accounting policies is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010. All intercompany transactions and balances have been eliminated. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. |
Debt | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT Debt consisted of the following at September 30, 2011:
As of September 30, 2011, the Company had $493.0 million of availability remaining under the credit facility. |
Other Charges (Income), Net | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Other Income and Expenses [Abstract] | |
OTHER CHARGES (INCOME), NET | OTHER CHARGES (INCOME), NET Other charges (income), net consists primarily of interest income, (gains) losses from foreign currency transactions and other items. |
Share Repurchase Program and Treasury Stock | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Equity [Abstract] | |
SHARE REPURCHASE PROGRAM AND TREASURY STOCK | SHARE REPURCHASE PROGRAM AND TREASURY STOCK The Company has a $2.25 billion share repurchase program, of which there is $749.4 million remaining to repurchase common shares as of September 30, 2011. The share repurchases are expected to be funded from cash balances, borrowings and cash generated from operating activities. Repurchases will be made through open market transactions, and the amount and timing of purchases will depend on business and market conditions, the stock price, trading restrictions, the level of acquisition activity and other factors. The Company has purchased 18.3 million shares since the inception of the program through September 30, 2011. During the nine months ended September 30, 2011 and 2010, the Company spent $171.2 million and $148.8 million on the repurchase of 1,061,666 shares and 1,310,936 shares at an average price per share of $161.22 and $113.48, respectively. The Company reissued 220,463 shares and 281,897 shares held in treasury for the exercise of stock options and restricted stock units during the nine months ended September 30, 2011 and 2010, respectively. The Company also reissued 2,549 shares held in treasury during the nine months ended September 30, 2010, pursuant to its 2007 Share Plan which extends certain eligible employees the option to receive a percentage of their annual cash incentive in shares of the Company’s stock. There were no shares reissued related to the 2007 Share Plan during the nine months ended September 30, 2011. |
Summary of Significant Accounting Policies (Details 2) (USD $) In Thousands | 9 Months Ended | |
---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | |
Changes to the Company's accrual for product warranties | ||
Warranty Accrual, Balance at beginning of period | $ 15,680 | $ 15,856 |
Accruals for warranties | 12,164 | 11,712 |
Foreign currency translation | 291 | (196) |
Payments / utilizations | (11,399) | (11,984) |
Warranty Accrual, Balance at end of period | $ 16,736 | $ 15,388 |
Income Taxes | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for taxes for both the three and nine month periods ended September 30, 2011 is based upon the Company’s projected annual effective rate of 26% before discrete tax items. During the third quarter of 2011, the Company recorded discrete tax items resulting in a net tax benefit of $3.8 million primarily related to the favorable resolution of certain prior year tax matters. The impact of these items decreased the effective tax rate to 22% and 24% for the three and nine month periods ended September 30, 2011, respectively. During the third quarter of 2010, the Company recorded discrete tax items resulting in a net tax benefit of $5.2 million primarily related to the favorable resolution of certain prior year tax matters. The impact of these items decreased the effective tax rate to 19% and 20% for the three and nine month periods ended September 30, 2010, respectively. |
Interim Consolidated Statements of Shareholders' Equity and Comprehensive Income (Unaudited) (Parenthetical) (USD $) In Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | Dec. 31, 2010 | ||||
Total comprehensive income | $ 28,538 | $ 107,609 | $ 191,607 | [1] | $ 167,260 | $ 256,558 | ||
|
Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts represents the Company’s best estimate of probable credit losses in its existing trade accounts receivable. The Company determines the allowance based upon a review of both specific accounts for collection and the age of the accounts receivable portfolio. Inventories Inventories are valued at the lower of cost or net realizable value. Cost, which includes direct materials, labor and overhead, is generally determined using the first in, first out (FIFO) method. The estimated net realizable value is based on assumptions for future demand and related pricing. Adjustments to the cost basis of the Company’s inventory are made for excess and obsolete items based on usage, orders and technological obsolescence. If actual market conditions are less favorable than those projected by management, reductions in the value of inventory may be required. Inventories consisted of the following:
Goodwill and Other Intangible Assets Goodwill, representing the excess of purchase price over the net asset value of companies acquired, and indefinite-lived intangible assets are not amortized, but are reviewed for impairment annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that an asset might be impaired. The annual evaluation is based on valuation models that estimate fair value based on expected future cash flows and profitability projections. The adoption of the recently issued goodwill impairment measurement guidance will not have a material impact on the Company's financial statements. Other intangible assets include indefinite-lived assets and assets subject to amortization. Where applicable, amortization is charged on a straight-line basis over the expected period to be benefited. The straight-line method of amortization reflects an appropriate allocation of the cost of the intangible assets to earnings in proportion to the amount of economic benefits obtained by the Company in each reporting period. The Company assesses the initial acquisition of intangible assets in accordance with the provisions of ASC 805 “Business Combinations” and the continued accounting for previously recognized intangible assets and goodwill in accordance with the provisions of ASC 350 “Intangibles – Goodwill and Other” and ASC 360 “Property, Plant and Equipment.” Other intangible assets consisted of the following:
The Company recognized amortization expense associated with the above intangible assets of $1.9 million and $1.5 million for the three months ended September 30, 2011 and 2010, respectively and $5.1 million and $4.6 million for the nine months ended September 30, 2011 and 2010, respectively. The annual aggregate amortization expense based on the current balance of other intangible assets is estimated at $7.0 million for 2011, $7.4 million for 2012, $5.9 million for 2013, $5.8 million for 2014, $5.1 million for 2015 and $4.9 million for 2016. Purchased intangible amortization, net of tax was $1.1 million and $0.9 million for the three months ended September 30, 2011 and 2010, respectively and $2.9 million and $2.7 million for the nine months ended September 30, 2011 and 2010, respectively. In addition to the above amortization, the Company recorded amortization expense associated with capitalized software of $2.9 million and $2.1 million for the three months ended September 30, 2011 and 2010, respectively and $7.6 million and $6.0 million for the nine months ended September 30, 2011 and 2010, respectively. Revenue Recognition Revenue is recognized when title to a product has transferred and any significant customer obligations have been fulfilled. Standard shipping terms are generally FOB shipping point in most countries and, accordingly, title and risk of loss transfers upon shipment. In countries where title cannot legally transfer before delivery, the Company defers revenue recognition until delivery has occurred. The Company generally maintains the right to accept or reject a product return in its terms and conditions and also maintains appropriate accruals for outstanding credits. Shipping and handling costs charged to customers are included in total net sales and the associated expense is recorded in cost of sales for all periods presented. Other than a few small software applications, the Company does not sell software products without the related hardware instrument as the software is embedded in the instrument. The Company’s products typically require no significant production, modification or customization of the hardware or software that is essential to the functionality of the products. To the extent the Company’s solutions have a post-shipment obligation, such as customer acceptance, revenue is deferred until the obligation has been completed. The Company defers product revenue where installation is required, unless such installation is deemed perfunctory. The Company also sometimes enters into certain arrangements that require the separate delivery of multiple goods and/or services. These deliverables are accounted for separately if the deliverables have standalone value and the performance of undelivered items is probable and within the Company's control. The allocation of revenue between the separate deliverables is typically based on the relative selling price at the time of the sale in accordance with a number of factors including service technician billing rates, time to install and geographic location. The adoption of the recently issued multiple-element arrangement guidance on January 1, 2011, has not and is not expected to have a material impact on the Company's financial statements. Further, certain products are also sold through indirect distribution channels whereby the distributor assumes any further obligations to the customer upon title transfer. Revenue is recognized on these products upon transfer of title and risk of loss to its distributors. Distributor discounts are offset against revenue at the time such revenue is recognized. Service revenue not under contract is recognized upon the completion of the service performed. Spare parts sold on a stand-alone basis are recognized upon title and risk of loss transfer which is generally at the time of shipment. Revenues from service contracts are recognized ratably over the contract period. These contracts represent an obligation to perform repair and other services including regulatory compliance qualification, calibration, certification and preventative maintenance on a customer’s pre-defined equipment over the contract period. Service contracts are separately priced and payment is typically received from the customer at the beginning of the contract period. Warranty The Company generally offers one-year warranties on most of its products. Product warranties are recorded at the time revenue is recognized. While the Company engages in extensive product quality programs and processes, its warranty obligation is affected by product failure rates, material usage and service costs incurred in correcting a product failure. The Company’s accrual for product warranties is included in accrued and other liabilities in the consolidated balance sheets. Changes to the Company’s accrual for product warranties for the nine months ended September 30 are as follows:
Employee Termination Benefits In situations where contractual termination benefits exist, the Company records accruals for employee termination benefits when it is probable that a liability has been incurred and the amount of the liability is reasonably estimable. All other employee termination arrangements are recognized and measured at their fair value at the communication date unless the employee is required to render additional service beyond the legal notification period, in which case the liability is recognized ratably over the future service period. Share-Based Compensation The Company recognizes share-based compensation expense within selling, general and administrative in the consolidated statement of operations with a corresponding offset to additional paid-in capital in the consolidated balance sheet. The Company recorded $3.1 million and $8.8 million of share-based compensation expense for the three and nine months ended September 30, 2011, respectively, compared to $3.1 million and $9.1 million for the corresponding periods in 2010. Research and Development Research and development costs primarily consist of salaries, consulting and other costs. The Company expenses these costs as incurred. |
Debt (Details Textuals) (USD $) In Millions | Sep. 30, 2011 |
---|---|
Amount remaining under the credit facility | $ 493.0 |
Summary of Significant Accounting Policies (Details1) (USD $) In Thousands | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Intangible Assets [Line Items] | ||
Finite and Indefinite-Lived Intangible Assets, Gross, Total | $ 168,230 | $ 143,500 |
Total Accumulated Amortization | (44,323) | (39,128) |
Customer Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Gross amount | 95,673 | 80,674 |
Accumulated Amortization | (17,981) | (15,968) |
Proven technology and patents [Member] | ||
Intangible Assets [Line Items] | ||
Gross amount | 42,627 | 36,262 |
Accumulated Amortization | (25,118) | (22,298) |
Tradename (finite life) [Member] | ||
Intangible Assets [Line Items] | ||
Gross amount | 4,059 | 2,420 |
Accumulated Amortization | (1,033) | (760) |
Tradename (indefinite life) [Member] | ||
Intangible Assets [Line Items] | ||
Gross amount, Tradename (indefinite life) | 25,102 | 23,634 |
Other Intangible Assets [Member] | ||
Intangible Assets [Line Items] | ||
Gross amount | 769 | 510 |
Accumulated Amortization | $ (191) | $ (102) |
Acquisitions | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS In August 2011, the Company acquired a vision inspection solutions business located in Germany for an aggregate purchase price of $19.4 million that will be integrated into the Company's product inspection product offering. The Company may be required to pay additional cash consideration up to a maximum amount of $2.4 million related to an earn-out period. Goodwill recorded in connection with this acquisition totaled $10.9 million, which is included in the Company’s Western European Operations segment. The Company also recorded $13.3 million of identified intangibles primarily pertaining to tradename, customer relationships and technology. In August 2011, the Company paid additional contingent cash consideration (previously accrued at the time of acquisition) of $7.8 million related to an earn-out associated with an acquisition in 2009. This payment is included in cash flows from financing activities in the consolidated statement of cash flows. In March 2011, the Company completed acquisitions totaling $15.4 million, of which $12.0 million related to an X-ray inspection solutions business that will be integrated into the Company's product inspection product offering. Goodwill recorded in connection with these acquisitions totaled $4.4 million, of which $1.9 million is included in the Company's U.S. Operations segment and $2.5 million is included in the Company's Swiss Operations segment. The Company also recorded $9.9 million of identified intangibles pertaining to tradename, customer relationships and technology. The weighted average amortization periods for the finite-lived intangibles purchased in 2011 are 15 years for tradename, 9 years for technology and 18 years for customer relationships. In January 2010, the Company acquired a pipette distributor located in the United Kingdom for an aggregate purchase price of approximately $12.5 million. Goodwill recorded in connection with the acquisition totaled $7.4 million, which is included in the Company’s Western European Operations segment. The Company also recorded $4.5 million of identified intangibles pertaining to tradename and customer relationships. The weighted average amortization periods are 7 years for tradename and 30 years for customer relationships. |
Earnings Per Common Share (Details) | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | |
Weighted Average Number Diluted Shares Outstanding Adjustment [Abstract] | ||||
Weighted Average Number of Shares Outstanding, Diluted, Total | 904,212 | 856,174 | 973,762 | 830,483 |
Earnings Per Common Share (Textuals) [Abstract] | ||||
Antidilutive Shares | 161,326 | 515,828 | 168,390 | 585,426 |
Restructuring Charges (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company's accrual for restructuring activities |
|
Summary of Significant Accounting Policies (Details Textuals) (USD $) In Millions | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | |
Summary of Significant Accounting Policies (Textuals) [Abstract] | ||||
Amortization expense | $ 1.9 | $ 1.5 | $ 5.1 | $ 4.6 |
Aggregate amortization expense, current | 7.0 | |||
Aggregate amortization expense for 2012 | 7.4 | |||
Aggregate amortization expense for 2013 | 5.9 | |||
Aggregate amortization expense for 2014 | 5.8 | |||
Aggregate amortization expense for 2015 | 5.1 | |||
Aggregate amortization expense for 2016 | 4.9 | |||
Purchased intangible amortization, net of tax | 1.1 | 2.9 | 0.9 | 2.7 |
Amortization expense associated with capitalized software | 2.9 | 2.1 | 7.6 | 6.0 |
Standard Warranty Period | one | one | ||
Share - based compensation expense | $ 3.1 | $ 3.1 | $ 8.8 | $ 9.1 |
Share Repurchase Program and Treasury Stock (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Dec. 31, 2010 | |
Share Repurchase Program and Treasury Stock (Textuals) [Abstract] | |||
Authorized amount under share repurchase program | $ 2,250,000,000 | ||
Remaining Amount to Repurchase under the program | 749,400,000 | ||
Shares Purchased Under Share Repurchase Program | 18,300,000 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 171,179,000 | $ 148,800,000 | $ 239,998,000 |
Number of shares repurchased | 1,061,666 | 1,310,936 | |
Average price of share repurchased, per share | $ 161.22 | $ 113.48 | |
Exercise of stock options and restricted stock units, shares reissued | 220,463 | 281,897 | |
Other Treasury Stock Issuances | 0 | 2,549 |
Summary of Significant Accounting Policies (Details) (USD $) In Thousands | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Components of inventory | ||
Raw materials and parts | $ 111,143 | $ 101,660 |
Work-in-progress | 50,596 | 36,615 |
Finished goods | 103,612 | 78,829 |
Total Inventory, Net | $ 265,351 | $ 217,104 |
Restructuring Charges | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES During the fourth quarter of 2008, the Company initiated a global cost reduction program which has substantially been completed. Charges under the program primarily comprise severance costs. A rollforward of the Company’s accrual for restructuring activities for the nine months ended September 30, 2011 is as follows:
|
Financial Instruments | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS As more fully described below, the Company enters into certain interest rate swap agreements in order to manage its exposure to changes in interest rates. The amount of the Company’s fixed obligation interest payments may change based upon the expiration dates of its interest rate swap agreements and the level and composition of its debt. The Company also enters into certain foreign currency forward contracts to limit the Company’s exposure to currency fluctuations on the respective hedged items. The Company does not use derivative financial instruments for trading purposes. For additional disclosures on the fair value of financial instruments, also see Note 5 to the interim consolidated financial statements. Cash Flow Hedge The Company has an interest rate swap agreement, designated as a cash flow hedge. The agreement is a forward-starting swap which changed the floating rate LIBOR-based interest payments associated with $100 million in forecasted borrowings under the Company’s credit facility to a fixed obligation of 3.24% beginning in October 2010. During the nine months ended September 30, 2010, the Company settled $100 million of its original $200 million arrangement, resulting in expense of $0.6 million being reclassified from other comprehensive income to interest expense. The swap is recorded in other non-current liabilities in the consolidated balance sheet at its fair value at September 30, 2011 and December 31, 2010 of $9.5 million and $5.8 million, respectively. The effective portion of the loss reclassified from accumulated other comprehensive income (loss) to interest expense was $0.8 million for the three month period ended September 30, 2011 and $2.3 million and$0.6 million for the nine month periods ended September 30, 2011 and 2010, respectively. No reclassification occurred for the three month period ended September 30, 2010. The amount recognized in other comprehensive income (loss) during the three month periods ended September 30, 2011 and 2010 was a loss of $2.7 million and $3.5 million, respectively, and during the nine month periods ended September 30, 2011 and 2010 was a loss of $3.6 million and $12.2 million, respectively. A net after tax derivative loss of $1.8 million based upon interest rates at September 30, 2011, is expected to be reclassified from other comprehensive income (loss) to earnings in the next twelve months. Through September 30, 2011 no hedge ineffectiveness has occurred in relation to this hedge. Other Derivatives The Company enters into foreign currency forward contracts in order to economically hedge short-term intercompany balances largely denominated in Swiss franc and other major European currencies with its foreign businesses. In accordance with U.S. GAAP, these contracts are considered “derivatives not designated as hedging instruments”. Gains or losses on these instruments are reported in current earnings. The foreign currency forward contracts were reported at their fair value in the consolidated balance sheet at September 30, 2011 and December 31, 2010 in other current assets of $0.1 million and $1.8 million, respectively, and other liabilities of $1.2 million and $0.3 million, respectively. The Company recognized in other charges (income), net a loss of $3.2 million during the three month period and a gain of $1.2 million during the nine month period ended September 30, 2011, respectively. The Company recognized a net gain of $2.1 million and a net loss of $2.5 million during the three and nine month periods ended September 30, 2010, respectively. At September 30, 2011 and December 31, 2010, these contracts had a notional value of $94.4 million and $99.3 million, respectively. |
Contingencies | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES The Company is party to various legal proceedings, including certain environmental matters, incidental to the normal course of business. Management does not expect that any of such proceedings, either individually or in the aggregate, will have a material adverse effect on the Company’s financial condition, results of operations or cash flows. |
;LN8X]8.EH[@R,E#68,I7HB8$)`6Z4B4TJ4LVT[
M@RERL//R=/0WCD!'!N)+'@;BM0$=6==89-)IU,K*WE`D<1+$MRN74BLQBR1$
MK70TEH#6&^9X0IZW]%PLX+>3)+>=Y9DDQ%`!U$,=TI2'$%R-*2J5:O,E5D)L
MBT4=)TWM5^'PQE.J!3*@N1F$0Z0-&KEP%K=L5RX.QIA'[7URAB,2$::1>X$=
M4W/JPRHPTHK4,86[)+YWQ?2/HAR,^X->\^TI*[W<>,,)%@XK3JT.J3M`'?9D
M1&O;8F6U37W;C)Z.D'HB9C[G3("-;WU@GA@C?>UM!C/?(6G;H?K76\W\O6+U
M>*S80+#6R&@4.=6<8\\]F2=$T^A;_A&]M73D1!#7=:Z(DMQ3SW7$286.-F@Q
M+QP!>[;E6TX>Y^?!U[M2H,3*"J."L 8V*#2H-*@TF!B@W*# A2YVUY.]]0[UW%'?5#*-&FLD^KC/ZFVH<1!?4CK05V^S+NI!//KU%=A/
MY?BV_ALOKOUYVE_^66Y\0@70KZ\D_6GM"&_
MF\:_-NB4$X@]Q-YV=K(4H@RV%'?RP4$(,8080NSPEC=/:Q63U;J(9@4H*HK>\T(5"9W2
MLHRR,1"'P#J=[8'#@\KQ]D2("\0%XN($%.DP<[`8&+"0B74X>+JB!<$"X(
M%QQUX:@+'B;H08@^VKOHUN!&/['C?B%QH7-SDO92\54RF*ZR8JTRB3LH*5
M@'[_[B9*\VJ;'OOY*](;L@N?SHHUF2@#IJ1XJ=D.Q>7&[OT."+G'VRV^)7`.
M."]#<"(X$9S#V5&QAHLA1&@B-!&:PT%SP.S5"$V$)D)SP"4B<[BZ&+M:[;37
MEA"YB-Q!D6OM?R[Z-I"+(9$\)'(._Q9)&L,'44N>I2=\_RXN:9+6P]'@/5]4
MP1>3HKG.Z'!5TD\B*^ISK70,V5')1+8'2U6WT3*'X@MCSP1PV(!$@T33VUT;
M:;J#1(-$@T2#1"/NL\>:FR'-(,T@S2#-+,8SP^7X1J)!HD&B0:)9=Y\UT@8N
ML@RR#+(,LDR[I35?X/-8YLUQ?#?EBO&,6K%XB='2EQ4-U?,?L?XQ&/'34
M`I?[B1=RHFOLS0>71.E*R,RZ""S30+W!7)Q&+$B\.%3>I.\P%L2.FRR&EB1K
M=CDX#=KT0#J]`DK<*`Y$JC.HL=0-/;\Y@(X2XJL5X(I*<:)6#NVB]F"+>1+X
M(B9.&!.U#G*H+K$7-'V/,Y_[JSNG:H'O\G;!?*#;
_PY6-!3I`3Y,3\"8J"HOVB*.9/D!/D-)2